Conservation program’s attorney indicted

J. Craig Anderson

Thursday, Dec. 22, 2005 | 8:04 a.m.

A key figure in the Clark County Desert Conservation Program is under federal indictment on money laundering charges in connection with a series of class action lawsuits unrelated to the wildlife protection effort.

But Paul Selzer, a California attorney who has received more than $750,000 in fees from the conservation program since 1999, insists he did not knowingly break the law, and says the facts will ultimately prove his innocence.

Following an investigation by the U.S. attorney's office in Los Angeles, Selzer and one of his clients, retired lawyer Seymour Lazar, were indicted in June on charges that include money laundering, fraud, conspiracy and obstruction of justice.

The grand jury indictment accuses Lazar of accepting illegal kickbacks from the New York law firm Milberg Weiss Bershad & Schulman in exchange for serving and causing friends and family members to serve as plaintiffs in more than 50 class action and shareholder lawsuits during a 20-year period.

According to U.S. attorney spokesman Thom Mrozek, Selzer allegedly served as an intermediary "who laundered the illegal kickback payments for the benefit of Lazar."

But Selzer said that he simply offered legal advice to his client in connection with the class action cases, adding that he did not serve as attorney in any of the lawsuits or seek money beyond his regular fee.

Selzer is charged with money laundering because he received money from Milberg Weiss that federal prosecutors contend were kickbacks for Lazar's participation in the class action lawsuits.

But Selzer said Lazar simply asked him whether he would mind receiving payments for some of Lazar's legal bills in the form of "referral fee" payments from Milberg Weiss.

"My client asked me if I would accept a referral fee -- which is totally legal -- for cases I discuss with him," he said.

Selzer said he did not suspect anything improper because Milberg Weiss is a large law firm unlikely to risk losing its reputation by paying illegal kickbacks.

"Looking back, perhaps it was naive on my part," he said. The New York firm has not been charged with a crime.

Selzer's job duties for the Clark County Desert Conservation Program include advising the county on Endangered Species Act issues and mediating discussions among developers, environmentalists and government agencies.

He was involved in drafting the Multiple Species Habitat Conservation Plan, on which the program is based, and also has served as a facilitator for the implementation and monitoring committee, which recommends research projects to be funded.

Selzer said he informed county officials and his other clients that he was under federal investigation before the charges became public.

"I offered to resign," he said. "Not one client accepted the offer."

The Desert Conservation Program has been under fire recently by some developers and environmentalists, who argue it has not adequately protected wildlife from the area's rapid urbanization.

County officials have acknowledged past problems with the program, including conflicts of interest and lack of accountability, but said it still has been successful overall and is improving.

Under administrator Marci Henson's direction, the program has developed stricter requirements for selecting and carrying out research projects. An internal review is expected to be completed in January.

Henson said the county did not fire Selzer because the allegations against him have nothing to do with his work for the program.

"We looked at the charges in which he is named, and they involve being accused as a conduit for illegal kickbacks in class action securities cases," Henson said. "That particular scenario is completely unrelated, either in fact or area of law, from what we use him for."

Selzer said it could take years to clear his name because the legal proceedings against him have been slow-going.

"It's not only horrible, it's expensive," he said. "I mean, I've got an attorney."

J. Craig Anderson can be reached at 259-2320 or at craig@lasvegassun.com.