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Julie Kay

Daily Business Review

09-17-2007

Jury selection is scheduled to begin Tuesday in the long-awaited federal trial of former superstar Miami attorney Louis Robles, who was charged with mail fraud in the alleged theft of $13.5 million in clients' settlement money.

The trial is expected to last four weeks before U.S. District Judge Alan Gold.

Neither prosecutors nor defense attorneys wanted a trial. But Gold rejected a plea deal that called for Robles to serve 10 years in prison and recently rejected a request from Assistant Federal Public Defender Hector Flores for a 60-day continuance.

"The sad thing is that neither side wants to try this case," said David O. Markus, president of the Miami chapter of the Federal Bar Association. "But now that Robles finds himself in trial, he can feel fortunate that he is represented by one of the finest lawyers in Miami. Still, Hector will have his work cut out for him."

Assistant U.S. Attorneys Luis Perez and Michael Davis are trying the case. Flores is defending Robles along with Assistant Federal Public Defender Raymond Houlihan.

Robles was a nationally known mass torts lawyer and a star in the South Florida legal community. He once had 40 employees on his staff and more than 12,000 class action clients around the country. He focused on asbestos cases, traveling in a van with a doctor and X-ray machine, signing up clients and advertising on national television.

In 2002, the Daily Business Review reported on a four-year investigation into Robles by The Florida Bar. The Bar had received numerous complaints about Robles paying clients little or nothing on their asbestos settlements, charging contingency fees of more than 50 percent and having clients pay for his airfare, food, phone bills and other costs not previously disclosed. He abruptly closed his downtown Miami office in 2002 and soon after filed for bankruptcy.

Robles was disbarred by the Florida Supreme Court in May 2003. In 2006, a federal grand jury indicted him on 41 counts of mail fraud, accusing him of using client trust money to finance movie productions and waste management companies, lease apartments in New York and Los Angeles, and make mortgage payments on his luxurious homes.

If convicted of all counts, Robles faces life in prison and restitution of $13.5 million to victims. However, prosecutors have said they have only been able to secure $1 million from Robles for restitution.

Prosecutors have until Tuesday to file their witness list. According to sources close to the case, witnesses include 12 to 14 sick and elderly clients who will be flown in from around the country to testify; Robles' ex-wife, Ruth Ann, who is fighting for money in bankruptcy court; Ervin Gonzalez, Robles' one-time partner; and a variety of former bookkeepers and accountants from his former firm.

One of the primary reasons prosecutors argued for a plea deal is it would be difficult for some of the victims to travel to Miami to testify. They live as far away as Idaho and Pennsylvania and range in age from 59 to 89.

Court records also indicate prosecutors plan to give jurors a glimpse of Robles' former high-flying lifestyle. Among the records they will enter into evidence are bank statements, credit card statements, chartered flight and aircraft bills, season ticket receipts for the Miami Dolphins "Legends Club" and Miami Heat, and lease and rental agreements for a Key Biscayne condominium, downtown Miami offices and apartments in Manhattan and Los Angeles.

Both sides are sparing no expense in the high-profile trial. The public defender's office has hired a forensic accountant and, say sources, the U.S. Attorney's Office has hired a jury consultant.

Robles has been held in prison since Gold revoked his $1 million bond in May, finding he may have moved some of his clients' unaccounted-for funds to foreign countries while traveling abroad prior to his indictment. In his order, Gold stated he was concerned about the fact that Robles only has $1 million left out of the $13 million prosecutors say he misappropriated from clients, and that he traveled to foreign countries just before he was indicted.

Robles' girlfriend, named in court records only as "Ms. Wiki," reported to his probation officer earlier this year that Robles asked her if she could obtain phony passports for him and his grandson. He also had been talking to a pilot who previously offered to help him flee, according to a probation officer's petition.

Defense lawyers have filed proposed voir dire questions seeking to determine whether jurors have a bias against personal injury lawyers or lawyers who take cases on a "contingency fee basis."

"There are a lot of negative stereotypes about personal injury attorneys," states one juror question. "What effect, if any, do you think this information will have on your ability to impartially evaluate the government's evidence concerning Mr. Robles?"

Another proposed question: "Do you think there are too many lawsuits in the U.S.? Why?"

In its proposed juror questions, the government seeks to determine whether jurors have had any unpleasant experiences with the federal government, particularly the immigration department, or have ever used a computer to keep financial, accounting or tax records.

Opening statements are scheduled for next Monday.