A six-year investigation into whether lawyers at the influential securities class-action law firm of Milberg Weiss Bershad & Schulman used illegal tactics took a significant turn Friday after a retired real-estate mortgage broker agreed to plead guilty and cooperate in the investigation.
Former broker Howard J. Vogel of Englewood, N.J., and Florida, received nearly $2.5 million in kickbacks from lawyers inside Milberg Weiss for agreeing to be, or having a family member agree to be, the lead plaintiff in 40 cases, including lawsuits against Oxford Health Plans and Barnesandnoble.com, prosecutors contend.
According to papers filed Friday in U.S. District Court in Los Angeles, Vogel enlisted the assistance of an unidentified Denver lawyer to receive payments from Milberg Weiss.
Vogel has agreed to plead guilty to a criminal charge that he provided false information about his role in dozens of securities lawsuits filed by a “New York law firm” from 1991 to as recently as May 2005.
A spokeswoman for Milberg Weiss confirmed that it was the firm referred to in the deal.
Vogel’s testimony could prove crucial in building a case against partners inside Milberg Weiss as well as the firm.