Akin Gump Partner Arrested Trying To Sell The Details Of A Whistleblower Complaint (While Wearing A Wig)
He allegedly told the arresting agent, “My life is over.”
Jeffrey Wertkin
Biglaw bombshell alert: Jeffrey Wertkin, an Akin Gump attorney who joined the firm last year after a successful stint at the Justice Department prosecuting cases under the False Claims Act, was arrested on January 31 by the FBI (the arrest documents were unsealed on February 6). Wertkin was charged with obstruction of justice and contempt of court. He stands accused of trying to sell the details of a whistleblower lawsuit for $310,000 to an employee of a company that was under investigation by the Department of Justice.
According to the allegations, Wertkin — dressed in a wig, and going under the name “Dan” — was arrested in the lobby of a Cupertino, California hotel. He reportedly told the arresting agent, “My life is over.”
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As noted by Bloomberg Technology, lawsuits under the False Claims Act have a unique process, which Wertkin allegedly sought to exploit (though it isn’t clear how Wertkin got a hold of the complaint):
The arrest highlights the unusual process involving lawsuits under the False Claims Act, which allows whistle-blowers to sue companies on behalf of the U.S. government. The lawsuits, which are filed under court seal and given to the Justice Department, typically claim a company cheated taxpayers. The U.S. may investigate for months or years before notifying the company of the claims. Whistle-blowers can share in any recovery, and some have collected tens of millions of dollars.
The FBI’s investigation began when they were alerted by an employee of the company targeted by the lawsuit. The employee received a voicemail from “Dan” offering details of the suit in exchange for a “consulting fee.”
The employee agreed to secretly record calls to Dan for the FBI. On Dec. 22, Dan said he would provide the full complaint for $300,000, the FBI said. Two weeks later, Dan suggested he get paid in untraceable bitcoins, and said buying the complaint would help the company “get out ahead of the investigation.” The employee unsuccessfully sought to negotiate a cheaper price for the sealed lawsuit, according to the court filings.
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The price was eventually settled at $310,000 (Wertkin allegedly wanted travel costs covered), and when he went to make the drop-off, he was arrested.
An ATL source had this to add about Wertkin: “He was DOJ lead on a number of my cases. He was not the most liked person, but he always purported to be a very ‘by the book’ guy. So this is pretty shocking.”
Akin Gump’s statement about the arrest is suitably chagrined and notes they have fired Wertkin:
“We are shocked and deeply troubled by the conduct alleged in the charges filed against Mr. Wertkin,” an Akin Gump spokesman said in an e-mailed statement. “Honesty and integrity are at the core of our values and our client relationships. Immediately upon learning of these charges, we took swift action and Mr. Wertkin is no longer with the firm.”
Wertkin has been released on $750,000 bail.
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(You can flip to the next page to read the complete criminal complaint.)
Akin Gump Lawyer Charged With Trying to Sell Sealed Suit [Bloomberg]
Kathryn Rubino is an editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).
