Attorney who took on big tobacco faces sentencing
Published 10:52 pm Thursday, June 26, 2008
JACKSON (AP) — From Navy fighter pilot to prominent attorney, Richard ‘‘Dickie’’ Scruggs parlayed his Southern charm and legal savvy into a career that earned him hundreds of millions of dollars taking on tobacco, asbestos and insurance companies.
But Scruggs, 62, is scheduled to walk into a federal courtroom in Oxford today to face sentencing for his role in a judicial bribery scheme that ended his storied career. He faces up to five years in prison and a $250,000 fine.
Scruggs gained prominence in the 1990s by using a corporate insider in lawsuits against tobacco companies that resulted in a $206 billion nationwide settlement.
In the end, however, an insider of a different kind was his undoing. Scruggs was indicted in November along with his son and a legal partner after an associate wore a wire for the FBI, secretly recording conversations about the alleged bribery.
The indictment was a stunning development for many in the legal community. Scruggs’ deep pockets made him a political force and his legal battle with tobacco companies was portrayed in the movie ‘‘The Insider,’’ starring Al Pacino and Russell Crowe.
‘‘There’s a reason that greed is one of the seven deadly sins. And I think there’s a reason that Proverbs say that pride comes before the fall,’’ said Matt Steffey, a law professor at Mississippi College of Law.
Scruggs initially denied wrongdoing, but pleaded guilty to conspiracy in March in a deal that will likely keep his son out of jail. His former law partner, Sidney Backstrom, is also scheduled to be sentenced Friday.
Scruggs’ attorneys submitted a motion Wednesday asking for a sentence of 30 to 37 months, the low end of the federal guidelines. Prosecutors have recommended that Scruggs be sentenced to five years and that Backstrom receive no more than half of Scruggs’ sentence. A message seeking comment was left with Scruggs’ attorney.
‘‘Generally speaking, judges are inclined to follow prosecutors’ recommendations,’’ said Andrew Hruska, a former federal prosecutor in New York who has been following the case.
Scruggs and Backstrom pleaded guilty to conspiring to bribe Lafayette County Circuit Court Judge Henry Lackey $50,000. Prosecutors say Scruggs wanted a favorable ruling in a dispute over $26.5 million in legal fees from a mass settlement of Hurricane Katrina insurance cases.
Steffey said he doesn’t believe Scruggs set out to bribe the judge and was just looking for ‘‘good-ole boy’’ preference when things spiraled out of control.
Timothy Balducci, an attorney and associate of Scruggs, allegedly went so see the judge in hopes their friendship could gain favor for Scruggs. The judge was uncomfortable and contacted federal authorities.
The FBI told the judge to ask for $40,000, then set up surveillance at the courthouse. Balducci was arrested after dropping off the last payment.
He agreed to cooperate with the FBI and returned to Scruggs’ office, where he told Scruggs the judge wanted more money, discussed the way the judge’s order should read and captured it all on a hidden recorder.
‘‘I don’t think it originated with (Scruggs),’’ Steffey said. ‘‘But he did not bring the necessary moral resolve when faced with a moral dilemma.’’
Scruggs’ son, Zach Scruggs, pleaded guilty to misprision of a felony, meaning he knew a crime was committed but didn’t report it. He is to be sentenced next week.
Many high-profile friends have sought leniency for Scruggs in letters to U.S. District Judge Neal Biggers Jr., including Former ‘‘60 Minutes’’ producer Lowell Bergman and tobacco industry whistleblower Jeffrey Wigand, both portrayed in ‘‘The Insider.’’
Former Gov. William Winter and University of Mississippi Chancellor Robert Khayat also wrote on Scruggs’ behalf. Scruggs attended law school at Ole Miss and has donated millions to the university.
More legal problems could be ahead for him. His former defense attorney, Joey Langston of Booneville, has pleaded guilty to trying to influence another judge and implicated Scruggs.
Langston claims Scruggs tried to influence Hinds County Judge Bobby DeLaughter in a dispute over asbestos fees by promising that he could help DeLaughter get appointed to the federal bench with the help of Scruggs’ brother-in-law, former U.S. Sen. Trent Lott. Scruggs and the others have not been charged.
AP-CS-06-26-08 1719EDT