Following up on my post the other day about Dickie Scruggs, did you see that another class-action king, Melvyn I. Weiss, was sentenced to 30 months in federal prison and forced to pay $10 million in forfeitures and fines after pleading guilty to charges of racketeering?
Mr. Weiss is doing time because he and partners in his firm conspired with individuals, including friends and relatives, to serve as plaintiffs in lawsuits. Again, it's a perversion of the civil justice system that gives average people the legal might to press legitimate claims against huge corporations with an army of attorneys at their disposal.
It's a shame it had to come to this. But it was important to send this 72-year-old criminal to prison as a warning to others in the legal profession tempted to scam the system, which undermines confidence in the judicial process and spurs calls for tort reforms that will limit an individual's rights of recovery.
To read the full story, click here.
Comments (3)
Sam, it's a shame he wasn't caught sooner, and it's a shame he is only serving 30 months.
I agree it is "important to send this 72-year-old criminal to prison as a warning to others in the legal profession tempted to scam the system, which undermines confidence in the judicial process and spurs calls for tort reforms that will limit an individual's rights of recovery."
What offends me is that Mel Weiss and his partners got away with this for so long, made billions of dollars in illegally obtained fees, destroyed or severely damaged insurers and other businesses for his illegal profits, and only has to pay back what to him is chump change--a little over $9 million.
Where were the defense lawyers who defended these cases? Where were the prosecutors who should have known that when a professional insurance fraud perpetrator and convicted felon is one of the named plaintiffs, that something was very wrong.
Better late than never.
It's time the insurance industry and the prosecutors started taking fraud--especially insurance fraud--seriously.
Two-and-a-half years in jail for stealing more than $9 million is kind. If he held up a 7-11 and stole $300, he would have received 10 years.
Posted by Barry Zalma | June 5, 2008 2:34 PM
Posted on June 5, 2008 14:34
I agree that he should do time, but not at taxpayer expense.
He is not a physical threat to society. They talk about prisons being overcrowded. Well, here is a waste of a jail cell.
They should be sentencing these white-collar parasites to a minimum of 3 years community service in a designated area.
They are restricted to live in that area (ankle bracelet) and must use their educational experience to help people improve their lives. All costs are covered by them.
Posted by John Diesel | June 5, 2008 2:41 PM
Posted on June 5, 2008 14:41
The only travesty here, Sam, is the fact that:
A) He recieved less time than someone who shoplifted a soda from the grocery store, and
B) $9 million is a joke. His attorneys made more than that to defend him.
Posted by Michael Burnell CIC, CRIS | June 5, 2008 3:49 PM
Posted on June 5, 2008 15:49