Subject: [NEXTEL-1] Self-described Recruiters Say Law Firm Signed Up Even Meritless Discrimination Cases

From: [email-masked]
Date: Wed, 05 Nov 2003 09:02:25 -0500

Self-described Recruiters Say Law Firm Signed Up Even Meritless
Discrimination Cases

By Sarah Wallace
(New York-WABC, November 4, 2003) — A
potential scandal involving a major New York law
firm is widening. As we first reported exclusively
yesterday, the firm is accused of selling out its
own clients in discrimination cases -- and making
secret deals with companies it had threatened to sue.

Now for the first time, self-described
recruiters hired by the law firm are
speaking out to The Investigators' Sarah
Wallace -- describing what they call a
"numbers game."

The question of who benefited from the
numbers is at the heart of our
investigation. It's alleged the more clients
that the law firm Leeds, Morelli and
Brown rounded up, the better their
bargaining position in threatening
companies to quietly settle discrimination
claims.

Financial analyst Brian Hodge says even
though he put his best face forward, he
just couldn't break through into the
upper levels of the often overwhelmingly
white world of Wall Street. So he to
went to work for an organization he
thought could help minorities -- Discrimination on Wall Street
(DOWS).

Sarah Wallace: "Who was DOWS?
Brian Hodge: "DOWS was Leeds, Morelli and Brown."

A for-profit New York law firm that set up the non-profit DOWS.
Hodge thought the firm wanted to right wrongs, Cases like his. He
says he resigned from Prudential Securities and filed a discrimination
claim through Leeds, Morelli and Brown that was later settled.

Brian Hodge, "Recruiter": "We recruited clients and we steered them
towards Leeds and Morelli as attorneys that would help them in cases
of discrimination."
Sarah Wallace: "Was it clear that you were a recruiter?
Brian Hodge: "Yeah. That's what I did. I got people into Leeds and
Morelli and Brown -- that's what I did."
Sarah: "And what did you discover, down the road?"
Brian Hodge: "It was all a fraud."

But, in the beginning, he says he was so convinced he actively
recruited potential clients from several major companies ...

Brian Hodge: "The Bank of New York, Bear Sterns, NY Transit
Authority, Jacob Javits."

Lena Rohlehr was another Leeds, Morelli, and Brown client who says
her job was to get people to sign retainer agreements to have the firm
represent them.

Lena Rohlehr, "Recruiter": "However we worked we were told that
we would get bonuses for each group."

Columbia University ethics professor William Simon.

Prof. William Simon, Columbia Univ. Law School: "If the solicitors
were being paid by lawyers who were in it for profit and they were
doing this in person, that's improper."

Leeds, Morelli and Brown refused to be interviewed for this story,
but said in a statement it never had any financial interest in the now
defunct, non-profit Discrimination on Wall Street, nor did it
participate in any of its activities. As for recruiters, the firm says
it's
never used them, that its primary business has come from word of
mouth from happy prior clients.

Two former Colorado Nextel employees were prior clients but then
became what the law firm called consultants. The bottom line ...

Alencia Moore, "Recruiter": "We were recruiters, runners, whatever,
you know, you might want to call that."

Denise McNeil, "Recruiter": "It was like, do what you have to do. We
felt like we were prostitutes, and they were the pimps."

They were hired at $52,000 a year by Leeds, Morelli and Brown and
say they traveled to several states where Nextel Communications had
offices.

Denise McNeil: "We would hold meetings at the public library; we'd
got to parking lots; we'd go to these individuals' homes."

But the women say they also got retainer agreements signed from
employees of other companies at the direction of Leeds, Morelli and
Brown.

Denise McNeil: "We recruited AT&T, Rhythm, Covad, MCI."

Alencia Moore: "They would tell us, 'Well, even if they don't have a
case, go ahead and sign them up because they were all exposed to a
hostile environment.'"

The law firm, citing confidentiality, won't give the total number of
claimants it signed up. But we uncovered documents showing 359
claimants against Prudential Insurance, 587 against Nextel, 32 in the
case of Penguin and Putnam. These clients say they were constantly
pushed to bring in more people.

Felicia Robinson, Former Client: "The attitude was get bodies, get
bodies."
Sarah Wallace: "Even if they didn't have a legitimate claim?"
Felicia Robinson: "Right."

It's now alleged in various lawsuits that Leeds, Morelli and Brown
wanted to bring in claimants as leverage, but not to get more cash for
the clients, but to put more money in the law firm's pocket

Angela Roper, Clients' Attorney: "I've got leverage and I can go to
these companies and I think they're going to pay me to just keep this
whole thing quiet."

In fact, agreements we obtained show the law firm negotiated millions
of dollars in fees for itself, up front, from the companies it was
supposed to be fighting against.

James Nickson, Former Client: "They kind of stabbed us in the back.
They were the wolf in sheep's clothing, basically."

Leeds, Morelli and Brown and the companies claim all financial
arrangements were fully disclosed to clients.

Angela Roper: "It's absolutely insane, it's ludicrous, it's ridiculous."

The self-described "recruiters" probably feel worse than anyone.

Brian Hodge: "We wanted justice; we wanted people to be heard.
But in retrospect, it was wrong."

Denise McNeil: "I think they are con artists, they have affected
everybody's lives, that have been in their path."

We're still learning more about groups of clients signed up by the law
firm, including an initial 150 from the New York City Transit
Authority. A union official now says because of ethical issues raised
by the law firm's tactics, the union is: "Taking steps to see to it that
all
38,000 Local 100 officers and members are warned against getting
involved with this particular law firm."

If you have any information about this story or any other problem you
want investigated: call 1-877-TIP-NEWS.
http://abclocal.go.com/wabc/news/investigators/wabc_investigators_110403lawfirm.html

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