I don't know if many of you are following what took place in MS last week or not, but attached is a link to a very good website and insurance blog by David Rossmiller that gives a lot of information on the situation and various aspects of it that tie in.  I have noticed that a lot of the "local" news coming from that area has it's slant to it, and have felt that there was more to the story then what they wanted to report.

http://www.insurancecoverageblog.com/ 

Looks like ole Dickie boy has decided to withdrawl from all the Katrina litigation he was involved in.  The Scruggs law firm has announced that everyone accociated with his firm will no longer be involved with their Katrina clients.  Link to article is below.

http://www.sunherald.com/278/story/227788.html 

From the Associated Press:

"Jackson, Miss. - An attorney has pleaded guilty to conspiracy to bribe a judge and is assisting federal prosecutors in a case involving one of the nation's wealthiest trial lawyers, according to court documents.

Timothy Balducci entered the plea late Tuesday after initially pleading not guilty.

According to court papers, Balducci was accused of delivering thousands of dollars to a judge at the behest of prominent attorney Richard "Dickie" Scruggs for a favorable ruling in a civil case.

The case before the judge involved a dispute between Scruggs and other lawyers over $26.5 million in fees from a mass settlement of lawsuits that homeowners filed against State Farm Insurance Cos. after Hurricane Katrina.

Scruggs and the other attorneys appeared in court a week ago and pleaded not guilty to charges against them.

Scruggs, a brother-in-law of Sen. Trent Lott, R-Miss., earned millions from asbestos litigation and from his role in brokering a multibillion-dollar settlement with tobacco companies in the mid-1990s. His case against the tobacco companies was portrayed in the 1999 movie "The Insider," starring Al Pacino and Russell Crowe.

No sentencing date was set and Balducci was released on his own recognizance. The charge carries a five-year sentence."

Some additional information on what Janice was posting about is that this attorney was the person who was the go between in the bribery case, and allegedly got the $$ from the Scruggs firm and delivered it to the judge.  There has been some speculation for a few days that he was even cooperating with the feds during part of the time the investigation was going on, and it would be interesting to find out if there are conversations that were taped by him during all of this.  It is pretty ironic that Scruggs made a mane for himself using "insiders", when it could turn out that an "insider" may put him in the pokey for quite awhile. There have been some quotes from various supporters of Scruggs that claim that Balducci cooked this all up himself, it was self serving and he was just trying to get in good with Scruggs.  Some of the quotes I saw, if believed, would lead one to believe that Scruggs and firm had nothing to do with this, and the entire deal was put together and carried out by Balducci, with no knowledge of the Scruggs people.  It is a good thing that Balducci has agreed to take a polygraph as I'm sure if Scruggs has no involvment in any of this that would all show up in the polygraph.  Keep in mind the polygraph results are not admissable in a court of law, but they go a long way in the court of opinion .  For men who thrive on publicity, I haven't heard much at all from Dickie and his pal, Attorney General Jim Hood.  Wonder how all this will pan out as far as Hood listing Scruggs as his "confidential informant" in another case down in MS and AL pertaining to the Rigsby sisters.  I guess with the Scruggs firm being completely out of the hurricane Katrina business now, I wonder if the Rigsby sisters will be looking for employment?  After all, they were hired as "consultants" by Scruggs, and I'm not too sure what expertise they have in the "consulting" field.  I thought they were claim adjusters for Renfroe, but I'm sure they have other fields that they would qualify as experts in, that we haven't heard about.  If any of you where in charge of hiring for an IA firm, would you give them another chance in the independent adjustment field?  I'm not so sure I would with privacy laws being what they are (we have all seen the paperwork we get with our policy of insurance saying they protect our privacy and don't reveal any information to outsiders), but I guess that is a decision I can guarantee I'll never have to make.

The daily Dickie report can be found at the following web site. It's slow to load but has some intresting stuff.

http://www.yallpolitics.com/

Local gossip

Timothy Balducci the bag man is working with the feds. He and his family have not been home since the story broke. Kids aren't going to school, nobody is living in the family home. The locals wonder if he is in some kind of federal witness protection program.

John Grisham is writing the first chapters of his new novel as I type this.

A local United Way office realized that the organization had never received a donation from the town's most successful lawyer. The person in charge of contributions called him to persuade him to contribute.

"Our research shows that out of a yearly income of at least $500,000, you give not a penny to charity. Wouldn't you like to give back to the community in some way?"

The lawyer mulled this over for a moment and replied, "First, did your research also show that my mother is dying after a long illness, and has medical bills that are several times her annual income?"

Embarrassed, the United Way rep mumbled, "Um ... no."

The lawyer interrupts, "or that my brother, a disabled veteran, is blind and confined to a wheelchair?"

The stricken United Way rep began to stammer out an apology, but was interrupted again.

"or that my sister's husband died in a traffic accident," the lawyer's voice rising in indignation, "leaving her penniless with three children?!"

The humiliated United Way rep, completely beaten, said simply, "I had no idea..."

On a roll, the lawyer cut him off once again, "So if I don't give any money to them, why should I give any to you?"

Here is a different version of the events.  Keep in mind Langston was the Scruggs mouthpiece on the day the FBI raided the Scruggs law firm and Langston was pretty vocal on Mr Scruggs innocence at that time.  According to this article Mr Langston was involved in the tobacco litigation and has been defending Scruggs for quite awhile on other disputes involving legal fee disputes.  The plot thickens, and keep in mind it was less then 24 hrs from the time the raid took place on Scruggs and he was indicted.  i bet there are some pretty nervous lawyers and judges down in MS these days.

FBI searches another attorney's office

By ANITA LEE
calee@sunherald.com

Scruggs and four others were indicted Nov. 28 for conspiring to bribe a North Mississippi judge with $50,000 cash in a legal dispute with Jackson attorney John G. Jones that began in March. Scruggs, two other members of his Oxford firm and former State Auditor Steve Patterson have pleaded not guilty in the case.

Attorney Timothy Balducci, for whom Patterson was a consultant, has pleaded guilty to conspiring with the others to commit bribery and is cooperating with investigators. Langston has not been charged with any crime.

Langston was initially speaking on Scruggs' behalf in the judicial bribery case. The FBI would not say whether the raid on Langston's office was related to the ongoing bribery investigation.

FBI spokesperson Deborah Madden did say: "The execution of the search warrant at the law offices of Mr. Langston is in furtherance of an ongoing investigation."

Langston previously represented Scruggs in a lawsuit over legal fees filed in Hinds County Circuit Court by attorney Alwyn Luckey of Ocean Springs. That lawsuit was settled confidentially in 2005 after a decade of litigation.

Daily Journal reports
BOONEVILLE – FBI agents, armed with a search warrant, entered the law offices of Booneville attorney Joey Langston on Monday morning.

Deborah Madden, the spokesperson for the FBI in Jackson who confirmed the search, said she could not elaborate on details of the warrant because she had not seen the document.

Langston is among the attorneys representing Richard “Dickie” Scruggs, the Oxford attorney under indictment for allegedly participating in a bribery scheme involving Circuit Court Judge Henry Lackey.

Langston, himself a prominent plaintiffs’ and defense attorney, was not immediately available for comment.

Scruggs was among five people charged in the alleged bribe attempt. One of those charged, New Albany attorney Tim Balducci, pleaded guilty last week to one count of conspiracy and reportedly is helping prosecutors.

Tony Farese, an attorney who described himself as “a friend on the scene” in Booneville on Monday, said in a written statement that the Langston Law Firm “for years has represented Scruggs on various matters and thus retained working files on matters involving Scruggs. Tim Balducci, a former employee of the Langston Law Firm, worked on the files that were taken. Balducci left the Langston Law Firm over one year ago. (Neither) The Langston Law Firm nor any of its principals have been implicated in any wrongdoing.”

Uniformed officers wearing dark blue T-shirts and khakis were seen with a large truck with storage space at the rear entrance of the Langston Law Firm offices on Main Street in downtown Booneville. Early in the afternoon, the office was locked.

The building was locked and unauthorized people were barred from the property. 

BY PATSY R. BRUMFIELD
Daily Journal

OXFORD - Perhaps as early as Thursday, defense lawyers for famed attorney Richard "Dickie" Scruggs and others will get a look at the evidence federal prosecutors have in the judicial bribery case against them.

The affidavits for a search warrant and copies of recorded conversations will arrive via the U.S. Postal Service, said Ashland attorney Tony Farese, who is representing Scruggs' son, Zach, in the six-count indictment issued Nov. 28.

"We are looking forward to receiving all the discovery so that we can proceed with our case," Farese said late Tuesday.

First reported on djournal.com Tuesday morning, U.S. Senior Judge Neal B. Biggers ordered federal prosecutors to allow defense counsel a "limited" unsealing of applications and affidavits "for a search warrant and orders authorizing the interception of wire communications and a disc containing intercepted communications" relating to the case.

The prosecution is under a Dec. 27 deadline to complete handing over the evidence set by Biggers on Dec. 5 when he scheduled a Jan. 22 trial date.

Indicted with Scruggs and his son are Oxford attorney Sidney Backstrom, former state auditor Steven Patterson and New Albany attorney Timothy Balducci. All have pleaded not guilty, except Balducci, who changed his not-guilty plea to guilty on one count and is assisting the government.

The "discovery" order is a regular procedure in all criminal cases in federal court, explained Michael Hoffheimer, a criminal law professor at the University of Mississippi School of Law.

"The defendants are entitled to know what evidence prosecutors have against them," Hoffheimer noted.

He also said the defense is entitled to other prosecution information that may show they are not guilty.

Just how much evidence the U.S. government has and what it looks like aren't known, but published reports stated investigators removed documents and copied computer hard drives from Scruggs's Oxford offices the day before the indictment was issued.

The 13-page indictment against them includes direct quotations from what appears to be recorded conversations, court observers have reported. Monday, FBI agents sought to gain other information from the Booneville law office of Joey Langston, where Balducci worked before moving his practice to New Albany less than a year ago.

It's unlikely anyone but defense attorneys will get a look at what the government considers evidence. Biggers' order states that "in all other respects" the applications, affidavits and disc referred to in the Dec. 10 document will remain sealed until further order of the court.

Scruggs, a brother-in-law of Sen. Trent Lott, R-Miss., has made millions from tobacco and asbestos litigation. He reportedly made $848 million for his part in brokering a multibillion-dollar settlement with tobacco companies in the mid-1990s. That case was portrayed in the 1999 movie "The Insider."

The bribery charges stem from a lawsuit filed against Scruggs by another law firm that wants a bigger cut of at least $26.5 million in legal fees from a mass settlement of policyholder lawsuits over Katrina damage.

Scruggs led a team of lawyers that brokered the settlement with State Farm Insurance Cos. and were to split the legal fees. But the Jackson firm of Jones, Funderburg, Sessums, Peterson & Lee said it was shortchanged for its work on the case. The firm rejected a check for $617,924 from the Scruggs group in March and sued.

Scruggs and the others are accused of trying to bribe Lackey for a favorable ruling in that case.

Contact Daily Journal news editor Patsy R. Brumfield at 678-1596 or patsy.brumfield@djournal.com. The Associated Press contributed to this report. 

BY PATSY BRUMFIELD
Daily Journal

OXFORD - Defense attorneys for five NeMiss men accused of attempting to bribe a judge are receiving documents and recordings relating to the federal allegations.

Attorney Richard "Dickie" Scruggs of Oxford, his son Zach, Oxford attorney Sidney Backstrom, New Albany attorney Timothy Balducci and former State Auditor Steve Patterson were indicted Nov. 28 on charges they conspired to bribe Circuit Judge Henry Lackey of Calhoun County.

Ashland attorney Tony Farese, who represents Zach Scruggs, said the evidence started arriving for defense scrutiny late Wednesday.

"It's a lot to go through, and it's just partial discovery," Farese said Thursday.

Senior Judge Neal Biggers has set a Jan. 22 trial date and a Dec. 27 deadline for the government to provide defendants with whatever information it has about them.

The two Scruggses, Backstrom and Patterson have pleaded not guilty to all six counts against them. Balducci has pleaded guilty to one count and reportedly is cooperating with the government.

We should have a pool on which one will be next to cut a deal with the Feds.

BY PATSY R. BRUMFIELD
Daily Journal

OXFORD - Videos and surveillance photos, plus expense reports, are part of evidence the government has supplied to the defense team for Oxford attorney Richard "Dickie" Scruggs and four others accused of trying to bribe a judge.

The government claims the men were trying to get a favorable ruling in a $26.5 million legal fees case related to Katrina insurance lawsuits.

Released Thursday and first reported on www.djournal.com, a new government document also says prosecutors don't object to delaying the trial, which Senior Judge Neal Biggers Jr. set for Jan. 22.

Scruggs, his attorney son Zach, Oxford attorney Sidney Backstrom, New Albany attorney Timothy Balducci and former state auditor Steven Patterson were indicted Nov. 28 on six counts of trying to bribe Circuit Judge Henry Lackey of Calhoun County.

Change of heart
They all pled not guilty, but Balducci turned around a couple of hours later and pled guilty to one count. He reportedly is cooperating with the government.

On Monday, the defense team asked Biggers for more time to receive and analyze the evidence, file pre-trial motions and do other work on behalf of their clients. They told the court they would need another 90-120 days to prepare for trial.

Among the previously sealed items the court ordered opened to the defense were:

- Search warrant affidavits.

- Telephone conversations recorded by court-authorized wiretaps.

- Discs containing telephone conversations.

- Applications and affidavits to search Scruggs' law office.

- Applications and affidavits for other wiretaps and extensions of that authority, with court orders granted.

- Copies of a cassette tape of a "consensually" monitored telephone conversation.

The government also asked for information from the defense, but says it hasn't received any yet.

The new document says it has a Sept. 27 conversation between Balducci and Judge Lackey, plus videos of Balducci and Lackey on Oct. 18 and Nov. 1. Surveillance photos were taken Sept. 27 and Nov. 1.

The government has until Dec. 27 to turn over to the defense the information it gathered in the investigation. Even though the deadline is still several days away, the document continues, "the government has voluntarily made the bulk of discovery in this case."

Holding up some of the evidence is an FBI "taint team," which is a group of experts sorting through what they consider evidence in the case and preserving attorney-client confidences in unrelated matters. The evidence seized from Scruggs' office is still in their hands, the government said Thursday.

The new document claims the "consensually" monitored phone conversation was between Balducci and Backstrom. The consent apparently was by Balducci.

In a summary, sent by U.S. Attorney Jim M. Greenlee and signed by Robert H. Norman, assistant U.S. attorney, prosecutors do not object to a continuance, but say they don't think the case is "sufficiently complex" to require a long delay.

Contact Daily Journal news editor Patsy R. Brumfield at 678-1596 or patsy.brumfield@djournal.com.