Ponzi defense lawyers sued

A court-appointed receiver tracking down money to repay victims in a Ponzi scheme has sued the schemers defense lawyers at Fulbright & Jaworski and Paul, Hastings, Janofsky & Walker, claiming the defendants paid the firms with Ponzi-tainted money, according to the National Law Journal, an Am Law Daily sibling publication.
The suit, filed last week in federal district court in Utah, stems from the work the firms did defending convicted fraudster Val E. Southwick and his company, VesCor, in criminal and civil litigation. (Southwick pleaded guilty to several charges last year and was sentenced to nine consecutive prison terms ranging from one to 15 years; the Securities and Exchange Commission has filed a civil fraud suit against the company and five other employees, the NLJ says.)
The suit says Southwick transferred $3 million in VesCor funds to a Fulbright trust account. Fulbright declined to comment, while Paul Hastings says the suit "demonstrates an inaccurate understanding of the facts."

Lawyers who defend those fraudulent firms (unless court-authorized such as in bankruptcy) are liable to give back all their funds.

That is well settled law.

We have seen that here in Iowa recently in several situations.

[jasonjuicer]

Originally Posted by Unregistered Lawyers who defend those fraudulent firms (unless court-authorized such as in bankruptcy) are liable to give back all their funds. That is well settled law.

Agreed.