Lawyer behind Katrina insurance litigation gets five years for bribery
The man who's been called a "pirate in seersucker" is heading to the brig.
Richard "Dickie" Scruggs -- the noted Mississippi trial attorney who sued insurance companies for their actions after Hurricane Katrina -- was sentenced last week to five years in federal prison for attempting to bribe a state judge. Scruggs, who must also pay a $250,000 fine and the cost of his incarceration, is a former Navy fighter pilot who made a fortune suing the asbestos industry on behalf of sick shipyard workers and representing Mississippi in the tobacco litigation of the 1990s.
Upon reporting to prison on Aug. 4, Scruggs reportedly will receive mental health and drug treatment. He was found to have a drug problem after pleading guilty earlier this year.
At the sentencing hearing, Scruggs expressed regret and an inability to understand why he did what he did:
I could not be more ashamed than to be where I am today, mixed up in a judicial bribery scheme that I participated in. I realized that I was getting mixed up in it. And I will go to my grave wondering why.
I have disappointed everyone in my life, my wife, my family, my son, particularly; my friends, many of whom were kind enough to come up today and to write to the Court. I deeply regret my conduct. I ' m sorrowful for it. It is a scar and a stain on my soul that will be there forever.
Scruggs' former law partner, Sidney Backstrom, was already sentenced to 28 months for his role in the scheme. Scruggs' son, Zach, is scheduled to be sentenced Wednesday for charges related to his failure to report the wrongdoing. Also awaiting sentencing are attorneys Tim Balducci and Steve Patterson, a former state auditor.
Scruggs and his co-conspirators were indicted last year for offering to pay Circuit Court Judge Henry Lackey $50,000 to rule in favor of the Scruggs Law Firm in a lawsuit over the allocation of $26.5 million in attorney's fees for the Katrina litigation. Lackey reported the bribery attempt to the FBI, which taped subsequent conversations.
After insurers tried to avoid paying claims filed by homeowners after Katrina by arguing the damage was due to water and not wind, Scruggs sued. He eventually negotiated more than $100 million in settlements, though a federal judge recommended that he face criminal contempt charges for using improper tactics.
A Democrat, Scruggs is the brother-in-law of former U.S. Senate Majority Leader Trent Lott, and he represented the Lott and U.S. Rep. Gene Taylor in their lawsuits against State Farm for refusing to pay claims for the loss of their homes in Katrina. Taylor, a Democrat, and Lott, a Republican, pushed federal legislation to investigate insurers' claims handling after the disaster, a potential conflict of interest.
Lott resigned last year just days before Scrugg's indictment, and it was later reported that the former Senator was being investigated for a possible role in the bribery conspiracy. Lott was not in the courtroom for Scruggs' sentencing. U.S. Attorney James Greenlee, who prosecuted Scruggs, has said his investigation is continuing.
A message at the website of Scruggs' law firm says Katrina insurance cases are now being handled by the Katrina Litigation Group. That firm says the criminal case will not affect its clients.
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Sue Sturgis
Sue is the former editorial director of Facing South and the Institute for Southern Studies.