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UTU Indictment
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[quote]QUOTE: <i>Originally posted by pfrench68</i> <br /><br />Limitedclear, there is nothing wrong with having a Designated Legal Counsel program, properly run it is just a way to recommend legal counsel to the membership. There is a problem with soliciting and accepting money from the lawyers. <br /> <br />This legal problem isn't something that just popped up for the UTU. It entered the court system when large number of UTU DLC were indicted in 1998. It spilled over to the UTU when the UTU Texas Legislative Chairman Neil Francis Babineaux was indicted on 6/5/02. Babineaux was also the campaign manager for Little and Boyd. Babineaux has changed his plea to guilty and has been sentenced. <br /> <br />If the BLE hasn't been mentioned in the last five years, I would suspect they don't have a problem. <br />[/quote] <br /> <br />You may be right, or it may simply mean the feds haven't headed that way yet. Anytime you see anyone steering clients or even potential clients towards a select group of lawyers it is immediately suspect (for example chiropractors steering people to certain lawyers in LA a few years ago who were subsequently indicted and convicted for workers compensation fraud.). It is unethical for an attorney to solicit business face to face or have others do so on his behalf (that's why the whole business of lawyers flying to accident scenes and handing out business cards or having theior "investigators" do so is unethical and can result in disbarment or criminal sanctions). The process of having someone solicit or direct business to an attorney for pay is generally known as "capping" and is illegal. The UTU prosecution for mail fraud and racketeering is a way to apply these charges to the non-attorneys responsible. <br /> <br />My point is with the BLE and/or other unions such as BMWE or BRS who have members covered under FELA that have DLC programs could all be subject to investigation. I would be quite surprised if some similar problems weren't found elsewhere. I know that there have been indictments in matters involving the Ironworkers union in Buffalo where certain attorneys were indicted, convicted and disbarred for providing gifts to union officials in return for a DLC type referral system. <br /> <br />While I don't have specifics regarding other unions I believe that having the DLC program is an invitation to abuse and it should be abolished. (and I say this as someone who has benefitted from the DLC program). Everyone should be aqble to make their choice of attorney on their own. <br /> <br />LC
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