This Justin Scheck/The Recorder article reports on the latest development in the criminal investigation into Milberg Weiss Bershad & Schulman — the apparent willingness of the former wife of one of Milberg Weiss’ favorite expert witnesses to testify that the firm — and perhaps even name partners Melvyn Weiss and William Lerach — improperly used money it recovered in class action securities fraud lawsuits to supplement her ex-husband’s compensation for his work in prior cases.
The expert involved is John B. Torkelsen, a former financial analyst from Princeton, N.J., who made millions from this testimony in numerous cases as an expert on shareholder damages in Milberg Weiss class actions during the 1980s and 1990s. Torkelsen’s ex-wife, Pamela, reportedly agreed to provide evidence against Milberg Weiss and former husband after she pled guilty last year in a Washington federal court to assisting in the theft of $1.9 million from a venture-capital partnership. The speculation is that Mrs. Torkelsen is a possible link to Weiss and Lerach because Mr. Torkelsen was an expert witness in a number of cases personally handled by Weiss and Lerach. Mrs. Torkelsen’s sentencing in the Acorn matter has apparently been delayed for more than a year because of her cooperation in the Milberg Weiss investigation.
Meanwhile, it’s getting a bit difficult to find a judge for the Milberg Weiss criminal case — this New York Sun article reports that the fifth judge has recused himself from handling the case, while this NY Times article reports that Congressional Democrats are getting in gear to defend Weiss, who is a prominent Democratic Party fundraiser.