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WOODLAND HILLS : Lawyer Abused System, Prosecution Argues

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Former Woodland Hills attorney Lynn B. Stites directed a ring of corrupt lawyers in an elaborate scheme to cheat insurance companies “and defraud the judicial system” by rigging and prolonging litigation, a federal prosecutor said in closing arguments Friday at Stites’ mail fraud and racketeering trial in San Diego.

Assistant U.S. Atty. William Q. Hayes told a federal court jury the government had presented “overwhelming evidence of the existence of a criminal enterprise” that cost insurers at least $50 million and that involved a network of Los Angeles-area lawyers known as “the Alliance.”

But during more than four hours of arguments, a defense lawyer called Stites the victim of a vendetta by insurers who prevailed on the government to prosecute one of their most successful opponents.

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Stites, 48, who also practiced law in West Los Angeles, is charged with one count of racketeering and 25 counts of mail fraud.

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