Last defendant in Milberg case pleads guilty
The last defendant in a major federal kickback case involving class-action lawsuits against some of the nation’s biggest corporations pleaded guilty Monday to a tax-related felony.
Under an agreement with prosecutors, Paul T. Selzer entered his plea to corruptly endeavoring to obstruct the Internal Revenue Service code.
Prosecutors said Selzer, 67, accepted nearly $50,000 from New York-based law firm Milberg Weiss but failed to tell the IRS that he transferred nearly $19,000 to Seymour Lazar, a plaintiff in class-action lawsuits brought by Milberg Weiss.
“I plead guilty,” Selzer told U.S. District Judge John Walter.
Selzer was the last of six defendants in the long-running case that led to guilty pleas by three former partners at Milberg Weiss.
The firm dominated the field of securities class-action lawsuits involving shareholders who claim they suffered losses because executives misled them about a company’s finances.
Prosecutors have said Selzer, of Palm Springs, has agreed to pay a $250,000 fine.
Selzer could face as many as three years in prison at his Nov. 3 sentencing, but prosecutors intend to recommend a probationary sentence that could include home confinement.
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