LOS ANGELES : Convictions of 4 Lawyers Upheld in Insurance Scam

A federal appeals court in San Francisco has upheld the convictions of four Southern California lawyers on fraud charges for taking part in a ring that cheated insurance companies out of millions of dollars.

The U.S. 9th Circuit Court of Appeals upheld the charges this week of lawyers who took part in the ring, which was known as “the Alliance” and operated in Los Angeles, Orange and San Diego counties from 1984 to 1987.

The alleged ringleader, Los Angeles attorney Lynn Stites, was convicted in a separate trial last year after avoiding arrest for two years. He was sentenced to 12 1/2 years in prison and ordered to forfeit $50 million. His appeal is pending.

The four whose appeals were rejected this week are Monty Mason II, Richard Noyer and Lewis Koss, all of the Los Angeles area, and Leonardo Radomile of La Jolla. Eight other lawyers and six non-lawyers have pleaded guilty.

As described by the federal appellate court, the Alliance extracted legal fees out of insurance companies by manufacturing and prolonging claims against policyholders, mostly based on failed investments. All four were convicted of racketeering and mail fraud, and were given prison sentences ranging from 37 to 46 months by U.S. District Judge Clarence Newcomer.