On one hand, this article only concerns unproven allegations of a Complaint. On the other hand, this Complaint raises some serious issues about one of the most profitable and largest law firms around.
“Baker & McKenzie and former partner Martin Weisberg have been sued over their alleged roles running a stock scheme that contributed to the collapse of Pittsburgh-based Industrial Enterprises of America (IEAM).
In a scathing 22-page complaint filed against the firm and Weisberg in U.S. bankruptcy court in Delaware on Monday, plaintiffs claim both defendants enabled a massive fraud at IEAM, which filed for bankruptcy in May 2009….
Plaintiffs claim that Weisberg and Baker & McKenzie “knowingly drafted false documents with the express purpose of duping the investing public and regulators acting on their behalf.” The two defendants allegedly used stock plans to reward themselves and their coconspirators in the scheme, according to the complaint. The civil suit also states that “Baker did not merely assist or participate in the fraud, it actually conceived the engine that drove it.”
The complaint claims that one current Baker & McKenzie partner, litigator Brendan Cook in Houston, was aware of inadequate disclosures in public filings made by the firm and its former partner Weisberg. ”
This case should be an interesting one to watch!