Quote:
Originally Posted by legion
Sounds like Dickie Scruggs and some states owe the tobacco companies some money back...
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Dickie's got other things on his mind:
Multimillionaire Mississippi lawyer Dickie Scruggs, portrayed in a 1999 Hollywood film about his legal fight against the tobacco industry, is facing federal charges of conspiring to bribe a judge handling $26.5 million in attorney fees related to Hurricane Katrina claims.
Not long after drawing applause for allowing University of Mississippi officials to use his private jet to fly Ole Miss Athletic Director Pete Boone to Arkansas to help recruit new football coach Houston Nutt, Scruggs turned himself in to authorities Wednesday afternoon.
Others indicted in the alleged scheme included Scruggs' son, Zach, former State Auditor Steve Patterson and attorneys Sidney Backstrom and Timothy Balducci.
Neither Dickie Scruggs nor Booneville lawyer Joey Langston, who represents Scruggs' firm, could be reached for comment.
Each defendant is charged with conspiracy to defraud the United States, converting property and wire fraud. If convicted on all counts, each of those indicted faces up to 75 years in prison and $1.5 million in fines.
Scruggs, the brother-in-law of U.S. Sen. Trent Lott, is best known for his handling of mass litigation on behalf of the state of Mississippi, first involving asbestos and later involving tobacco.
His success in winning Mississippi's landmark tobacco settlement led to his portrayal in the film The Insider, starring Russell Crowe and Al Pacino.
Then-Attorney General Mike Moore, who portrayed himself in the movie, hired Scruggs to handle the litigation on the state's behalf - a move later criticized by some because Scruggs and other lawyers received millions in legal fees.
More recently, Scruggs has handled litigation against State Farm Insurance Co. over its handling of Katrina claims.
According to the indictment, Lafayette County Circuit Judge Henry Lackey cooperated with the FBI in the investigation after reporting a bribery overture to authorities.
Dickie Scruggs and others tried to influence Lackey by giving him $40,000 in cash to resolve the attorney-fees dispute in favor of Scruggs' law firm, the indictment alleges.
On March 15, the law firm of Jones, Funderburg, Sessums, Peterson & Lee sued Dickie Scruggs and other lawyers, claiming they were owed $26.5 million in legal fees for their assistance in the Katrina litigation.
Shortly after that, Scruggs, his son, Backstrom, Balducci and Patterson met to discuss how to influence the litigation, the indictment claims.
Scruggs practiced in his law firm in Oxford with his son and Backstrom. Balducci practiced at the law firm he and Patterson formed in New Albany, although Patterson is not a lawyer.
On March 28, Balducci met with Lackey and made an overture on behalf of Scruggs to resolve the litigation in Scruggs' favor, the indictment claims.
On May 3, Balducci talked on the telephone to Lackey, saying "they had changed their strategy" and would rely on a motion to compel arbitration rather than a motion for summary judgment, the indictment claims.
The next day, Backstrom e-mailed a proposed order to Balducci, who in turn faxed the order to Lackey, the indictment claims.
Some of the conversations between Balducci and the judge apparently were taped.
On May 9, Balducci called Lackey and told him "my relationship with Dick is such that he and I can talk very private about these kinds of matters and I have the fullest confidence that if the court, you know, is inclined to rule ... in favor ... everything will be good," the indictment said. "The only person in the world outside of me and you that has discussed this is me and Dick."
According to the indictment, Balducci's conversations with Lackey continued for the next several months.
On Sept. 21, Balducci agreed to pay Lackey $40,000 in cash in return for a ruling favorable to Scruggs, the indictment claims.
Six days later, Patterson discussed the bribe with Balducci, the indictment claims.
That same day, Balducci delivered $20,000 in cash to Lackey, according to the indictment.
Later that day, Balducci was quoted as telling Patterson by phone, "All is done, all is handled and all is well."
On Oct. 18, Patterson called Balducci to find out what was going on with the order, saying he talked to Dickie Scruggs 15 times and Balducci needed to call Scruggs, the indictment claims.
That same day, Balducci delivered $10,000 in cash to Lackey and picked up a $40,000 check from Dickie Scruggs to conceal the bribe, the indictment claims.
On Nov. 1, Balducci delivered another $10,000 in cash to Lackey and obtained an amended order favorable to Scruggs' law firm, the indictment claims.
Later that day, according to the indictment, Balducci discussed the order with Zach Scruggs and Backstrom, saying, "We paid for this ruling; let's be sure it says what we want it to say."
Legal experts say the word-for-word conversations between Balducci and others besides the judge seem to suggest he began to cooperate at a certain point with the government.
At one point, Balducci is quoted as telling the judge: "How shall I say, for over the last five or six years there, there are bodies buried that, that you know, that he (Dickie Scruggs) and I know where ... (they) are."
If Balducci is referring to cases beyond Katrina, it could potentially have an effect on those cases, experts say.
"I assume those cases could be exhumed and used for a basis for further attacks," said Aaron Condon, professor emeritus at the University of Mississippi School of Law.
U.S. District Judge William Acker of Alabama recently found Dickie Scruggs in contempt for failing to turn over documents he received from two whistleblowers, sisters Kerri and Cori Rigsby.
Dickie Scruggs gave the documents to Mississippi Attorney General Jim Hood rather than to the judge.
He maintained Acker's order provided documents taken from State Farm could be disclosed to law enforcement officials, including Hood's office.
The sisters, who were processing claims, have said they uncovered evidence State Farm was unfairly handling claims after Katrina.