Indicted Houston Lawyer’s Novel Defense
In June, we wrote about a Houston plaintiffs attorney and two former Hartford insurance company employees who were indicted in connection with an alleged kickback scheme that involved millions of dollars in settlement proceeds from silicosis cases.
Now, in this detail-laden cross-claim filed last week, plaintiffs attorney Warren Todd Hoeffner tells his side of the story. He paints himself as the victim of numerous alleged extortion threats by Rachel Rossow, one of the indicted former Hartford employees.
Here’s the background: According to the DOJ, in 2002, Hoeffner settled silicosis lawsuits with The Hartford for $34 million, but as part of the deal, the attorney paid more than $3 million in kickbacks to two then-Hartford claims managers. Hoeffner, who collected $5.3 million in legal fees, also allegedly bought a new BMW for each of the Hartford employees.
Following the indictment, some of Hoeffner’s former silicosis clients brought a civil suit against the attorney and the Hartford, claiming negligence and breach of fiduciary duty in connection with the alleged kickback scheme.
Hoeffner cross-claimed, saying that he was the victim of extortion.
In August 2002, according to his filing, Rossow allegedly told Hoeffner that she was the “lover” of a then senior claims executive at the Hartford and that the executive had the power to “kill” any settlements. Hoeffner claims he later met with Rossow in Florida and Colorado, where she allegedly made further extortion demands.
Out of fear that the proposed settlements would fall apart, Hoeffner alleges, he bought Rossow a car and sent her a series of payments, one totaling $1.675 million.
Hoeffner’s attorney Chris Flood acknowledges that it’s “extremely unusual,” for a criminal defendant to lay out what is, in effect, his defense in a civil filing. “Because we were sued,” he says, “we were forced to defend ourselves and we stand by all the allegations in the cross claim.”
Rossow’s attorney, Dan Cogdell, did not immediately respond to a request for comment. According to a Hartford Courant report on the case, a spokeswoman for the company said “The company took quick and decisive action upon learning of the conduct alleged in the government’s indictment. We contacted federal authorities and have been providing them with assistance every step of the way.”
Your abridged blip left out all the details of the claim. You should just post the cross claim on your website. It is salacious and very factual. For instance, you left out the following for your readers:
1. Torrid love affair between Senior VP and claim adjuster dealing with lawyer;
2. Hartford discovers love affair in early 2002 and does nothing;
3. Hartford again busts VP and instead of firing him promotes him;
4. Claims adjuster pulls off extortion scheme weilding VP’s power;
5. Claims adjuster gets checks and holds for several months until her divorce is final;
6. Right after divorce, claims adjuster puts all her money extorted from lawyer in VP’s financial advisor ’s account;
7. VP and claims adjuster open joint account while he is still senior VP at Hartford and married to another women;
8. Claims adjuster goes livid b/c VP doesn’t leave wife as promised. Thus, claims adjuster barges in VP’s house and announces she is the lover(on Easter weekend);
9. This finally gets VP out of house and moving in with claims adjuster, confirming he wanted his half of the extortion proceeds.
This is the way I read the story. It appears to be supported by bank account #s, police reports and many internal Hartford documents. Hopefully, the WSJ will give us a fullprinted story and do alot more investigation b/c this looks like a thriller!
It is unfortunate to read stories like this because it serves to undermine the judicial system. On my website,joelbieber.com, I try to point out stories of corporate corruption. When a few in the legal profession appear to put greed ahead of justice, it undermines attention to corporate wrondoers.
When light is shed on such actions, there is a lot to be sorry for. There is no excuse for a lawyer to cave in to extortions by a Hartford employee. Their is no excuse for Hartford to allow employees to extort. From what I’ve seen in the past these people will be teaching Ethics classes next.
Here’s a better defense:
I have nor moral and I have no conscience because I am an American lawyer.
I am therefore incapable of complying with the law, and it is unfair of anyone to expect me to do so.
I rest my case.
Get to sleep with employee; make a couple mil. on the side through exortion scheme; then get a promotion because your scheme saves Hartford 40 million. Any more VP openings at the Hartford?
And, it looks like the inurance company got reimbursed by reinsurers after it saved the 49M!
