Malpractice Law Suit Over Cuban Trade Cover-Up
March 5, 2004
Morgan Lewis & Bockius, a major U.S. law firm, is being sued for $40 million for malpractice by Stefan and Don Brodie, founders of the firm Purolite, a water purification company.
Allegedly, Morgan Lewis' advice to the Brodies regarding trade with Cuba resulted in Justice Department prosecution leading to a 205-year prison sentence both for the Brodies and another Purolite senior executive in Canada, Mr. James Sabzali. The conviction was later overturned in appellate court.
It is alleged that Morgan Lewis advised Purolite that a $2 million sale to Cuba was not illegal under the U.S. trade embargo on Cuba even when internal research concluded the transaction would break the law. Furthermore, it seems that one of the firm's partners may have lied to a U.S. Customs agent who was investigating the transaction, saying that Purolite was not connected to its foreign units.
Finally, another of the firm's partners may have passed privileged information to his wife, the Assistant U.S. Attorney who was openly prosecuting the Brodies, while the firm was actively defending the case.