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June 25, 2005
Houston attorney pleads guilty in kickback scheme
Houston personal injury lawyer Gene Burd pleaded guilty Friday to a charge of making a false statement on his 1997 Federal Income Tax Return in connection with a kickback scheme that Mr. Burd engaged in with a local chiropractor, Paul Samson Christie. Here is the Justice Department's press release on Mr. Burd's guilty plea (as well of that of his co-defendant, Mr. Christie), and the earlier press releases on the indictment and superceding indictment are here and here.
According to the DOJ press release, Mr. Burd employed runners to bring him auto accident victims. After signing the victims up to a contingency fee contract, Mr. Burd would refer the clients to Mr. Samson's chiropractic clinics for physical therapy. Subsequently, Mr. Burd would pay the clinics for the chiropratic services provided to the clients out of a portion of the insurance settlement that he would negotiate on behalf of his clients. Mr. Samson would then turn around and kickback to Mr. Burd in cash 40-50% of the payment that Mr. Burd would make to the clinics. Mr. Burd did not report the cash kickbacks as income on his tax returns.
Mr. Burd faces a maximum of three years in federal prison, without parole, a $100,000 fine, and civil monetary penalties. Sentencing is scheduled for September 30 before U.S. District Judge Melinda Harmon.
Posted by Tom at June 25, 2005 02:44 PM
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