ANOTHER CLINTON PAL PLEADS GUILTY

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BILL AINSWORTH, SAN DIEGO UNION TRIBUNE - During the peak of his power,
William S. Lerach was feared and despised by Silicon Valley executives,
not just for his shareholder lawsuits against them but also for his
mastery of the political system. The San Diego lawyer did something that
high-tech executives didn't: He systematically donated to politicians.

During his more than three decades as a donor, Lerach and members of his
two law firms have given millions of dollars to officeholders and
candidates, almost all Democrats, including a president, senators,
governors and even Assembly members.

Lerach, 61, has helped elect people who share his belief in keeping the
courtroom doors open for shareholder lawsuits. But his most important
legacy as a political player may be that he spurred his enemies in the
high-tech industry to become a political powerhouse in their own right.

Lerach ­ who pleaded guilty in a plaintiff-kickback scheme Tuesday ­ had
a deserved reputation for being aggressive not only in court, but also
in the political system, where he sought to tilt the rules in favor of
his law business. . .

Some technology company leaders trace Silicon Valley's new clout to
December 1995, when Lerach was seen talking with President Bill Clinton
at the White House.

A few days later, Clinton vetoed legislation that would limit the type
of shareholder suits that made Lerach and his former law firm wealthy. .
. Lerach and his allies saw Clinton's veto as good policy to help
investors battle corporate fraud.But high-tech executives saw the veto
as a blunt power play by a lawyer with extraordinary political
influence.

"It was an eye-opener for Silicon Valley when they saw that the Clinton
administration had good relations with this guy," said Sean Garrett, who
works for a high-tech communications company, 463 Communications.

Eventually, Congress overrode the veto, with the support of many
Democrats and Republicans.

Last week, Lerach pleaded guilty to conspiracy while at his old firm of
Milberg Weiss for participating in a scheme to pay kickbacks to recruit
plaintiffs for 150 class-action lawsuits against U.S. companies. He
agreed to forfeit $7.75 million in unlawful gains, pay a $250,000 fine
and accept a prison sentence ranging between one and two years.

http://www.signonsandiego.com/news/metro/20070922-9999-lz1n22lawyer.html

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