Deutsche Bank and Citigroup have agreed to pay — $145 million and $20.5 million, respectively — rather than join the National Credit Union Administration’s litigation hit list. The NCUA said it will apply the settlements to $3.3 billion in charges related to credit union failures during the financial crisis.
Former Pennsylvania attorney Jeffrey Abramowitz has been indicted on charges of embezzling more than $1 million from his clients by lying to them about the settlements of their cases. The indictment alleges that Abramowitz told some of his firm’s clients that funds from their civil lawsuits and other transactions would be held in escrow by the firm, and then deposited the funds into his personal bank accounts. He allegedly spent some of the funds himself and diverted the rest to a “favored client” and her family.
Members of Congress are still looking for a way to authorize a couple of billion-dollar agreements that would settle litigation involving the federal government and minority groups. The House of Representatives had included authority for the settlements in a bill authorizing supplemental war funding. That bill passed the House July 1
New details are emerging concerning accusations raised Monday against lawyer Scott Rothstein by his partner, Stuart Rosenfeldt, in a request for a court-appointed receiver to run Rothstein Rosenfeldt Adler and audit its finances in the wake of accusations that Rothstein may have misappropriated $200 million to $500 million in a scheme tied to structured settlements. Rosenfeldt says none of the settlements involved firm clients, but the Review has obtained sample forms that intertwine the settlement business and the law firm.