Lerach Can't Change His Stripes

Does Bill Lerach have no shame?

You will recall that the onetime scourge of Corporate America just this May began serving a 24-month sentence for his role in a scheme to pay secret kickbacks to plaintiffs in securities lawsuits.

At the federal prison in Lompoc, California, he is showing no signs of being a changed man. Lerach spent some of his summer in solitary confinement ---- or "administrative segregation," in the parlance of the federal Bureau of Prisons -- because he is said to have offered a prison guard the use of his season tickets to San Diego Chargers games, reports the Recorder, a daily legal paper in San Francisco.

The guard reported the offer to authorities, kicking off a disciplinary investigation that could result in his transfer out of the minimum-security camp, and into a low-security prison.

Let us pause for a moment and reflect on the nature of the crime Lerach pleaded guilty to: greasing the palms of shareholders so that his firm could have "lead plaintiff status" in class actions and make hundreds of millions of dollars in legal fees.

If he indeed offered the Chargers tickets as some sort of inducement, Lerach is, at the least, consistent.

Indeed, the day after he was sentenced, the once powerful lawyer told the Wall Street Journal that he was counting on his many newspaper subscriptions to use as currency while in prison. So he was already getting ready to work the prison system!

"A sports section is supposed to win you a lot of favors," he said. Oh, dear.

His lack of remorse was apparent in an essay he wrote for Conde´ Nast Portfolio, saying that his former law firm, Milberg Weiss, paid kickbacks to plaintiffs for decades "to stay competitive" because it was "industry practice" before Congress changed the laws.

Lerach's alleged behavior raises many questions. A number of wealthy former executives who have been accused of unscrupulous activities are now in federal prison. Are there guards who, unlike the one in Lompoc, may look the other day when a white-collar perk is dangled their way? Might Lord Black be tempted to hand out copies of his lengthy Nixon biography to win prison favors?

Karen Donovan