Thursday, October 6

More Bad News for the Nominee

Miers' firm fined big for cheating investors reports:

While Supreme Court nominee Harriet Miers presided over a major Texas law firm, it was forced to pay more than $30 million to settle claims it vouched for the reputation of two clients who cheated investors out of millions in an elaborate Ponzi scheme.

While there is no evidence Miers knew about the actions of partners who represented the clients until investors began filing lawsuits against Locke Liddell & Sapp LLC, she publicly defended the firm's actions saying it never should have been named as a co-defendant in the case.

The investors said they were cheated in part because Locke Liddell helped make the operations look legitimate and ignored signs of fraud and the selling of unregistered securities. They alleged that the law firm used its trust fund to direct millions in investor money to Stearns.

Linda Eads, a law professor at Southern Methodist University, where Miers got her undergraduate degree in mathematics and her law degree, wrote an ethics report for the plaintiffs in the Stearns case. Eads said one of the firm's partners, occasionally sending notes on Locke Liddell letterhead, "represented to investors that Stearns was up-and-up," according to an Associated Press report. However, Eads said she found no evidence that Miers was involved. noted that the amount was so high because court authorities approving the settlement believe that Locke Liddel's behavior in the fraud was so outrageous that an example needed to be made of the firm, to serve as a warning to other firms, writes Corsi.

Mr. President, I think you made a mistake on this one. While I hate to see someone's name sullied by assoication, this does not bode well for a candidate for the Supreme Court.

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