David Bershad, a former name partner of a New York plaintiffs' firm indicted for paying kickbacks to clients, has been sentenced to six months in prison.The U.S. Attorney's Office in Los Angeles indicted the firm now known as Milberg LLP, along with Mr. Bershad, and several other former partners, for their role in a kickback scheme that induced clients to file securities suits. The firm, which was formerly named Milberg Weiss Bershad & Schulman LLP, escaped charges this year in exchange for paying a fine of $75 million, but former partners Melvyn Weiss and William Lerach are now serving prison time for their role in the crime. Another partner, Steven Schulman, is scheduled to be sentenced later Monday.
The sentence handed down by U.S. District Judge John Walter to Mr. Bershad, a longtime member of firm management who pleaded guilty last year to conspiracy, was double the three months in prison recommended by the government.
In a motion filed by his whitstleblower lawyer in court, Mr. Bershad, 68 years old, asserted that he should be excused from prison time in light of his cooperation with the government, his good deeds in the community and poor health. "We're obviously disappointed that the court did not accept our recommendation," said Robert Luskin, counsel to Mr. Bershad. But, he said, "the court was fair and the sentence is just."
