FOR IMMEDIATE RELEASE:
CONTACT: PETER BYLSMA
PHONE: 310-795-8532
September 29, 2006
Los Angeles Citizens Against Lawsuit Abuse (CALA) today called on three local officeholders, to return campaign contributions received as far back as 1996 from the law firm of Milberg Weiss Bershad & Schulman, which was recently indicted for paying clients to act as plaintiffs in lawsuits.
"These individuals and organizations should follow the actions taken by State Controller Steve Westly, the Democratic National Committee and New York Attorney General Elliott Spitzer and pledge to return campaign contributions from this law firm and its partners, or give it all to charity" said David Houston, chairman of Los Angeles CALA.
Since 1996, the following have received a combined total of close to $20,000 from the firm, which has operated under different names since 1996, and its two indicted partners, David Bershad and Steve Schulman:
Senator Gil Cedillo - $ 8,065
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Assemblymember Betty Karnette - $ 4,000
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Mayor Antonio Villaraigosa - $ 7,000
CALA researched contribution reports and major donor statements on file with the Federal Election Commission, the California Secretary of State and the Los Angeles Ethics Commission to compile its list. Records were sought back as far as 1996 because, according to a Los Angeles grand jury's indictment, the law firm's alleged activities have been going on for more than 25 years.
"We could have gone back even farther but I think the point is proven; this law firm's campaign contributions are dirty money, made at the expense of California jobs and the economy," Houston said.
As CALA is informed that contributions have been returned or is provided names of the charities to which contributions have been donated, it will post updates and issue announcements acknowledging those mentioned on its watch list.
Milberg Weiss and partners Bershad and Schulman were indicted by a federal grand jury in Los Angeles for allegedly paying at least $11.3 million in illegal fees to clients who agreed to act as plaintiffs. Two defendants have already agreed to plead guilty in the case and federal investigators have suggested more indictments could be coming.
"This alleged fraud scheme represents a stain on the legal system, one that could spread to current and would-be politicians unless they do the right thing," Houston said.
Milberg Weiss and the two partners have all pled not guilty to the charges.
Citizens Against Lawsuit Abuse is a nonprofit, grassroots public education organization dedicated to serving as a watchdog over the legal system and those who would seek to abuse it for undeserved gain. For more information, visit www.losangelescala.org.
