exhibit aonline.wsj.com/public/resources/documents/schulmanletter.pdf · 2018. 8. 27. · i also...

EXHIBIT A

Case 2:05-cr-00587-JFW Document 552-2 Filed 10/14/2008 of 44

STEVEN G. SCI-IULMAN 350 East 82'ld Street

New York, New York 10028

October 10,2008

The Honorable John F. Walter United States District Court Central District of California Western Division 3 12 N. Spring Street Los Angeles, CA 90012

Re: Steven G. Schulinan

Dear Judge Walter:

I respectf~~lly write this letter in connection with my sentencing. My purpose is to express to the Court, in my own words, my deep regrets and apologies for the misconduct in which I engaged, the toll it has already exacted and my own personal perspective 011

the broader significance of this case notwithstanding that I am among the accused and convicted.

At the outset, I wish to express my profound remorse and contrition for the criminal conduct in which I engaged. I enlisted in a wrongful scheme, failed to disengage or extricate when I should have and participated in col~cealilig the wrongful acts that facilitated the scheme. These were sins of omission no less than coinmission for which I take full responsibility. By these actions, I violated the law and my enhanced duties as an attorney. I also violated tlie specialized duties and responsibilities undertaken by class and derivative counsel. There is not a day that goes by when I do not inwardly replay, with much sadness and regret, the events and fateful decisions that have led me to my current state.

Because of my misconduct, I have lost niy good name. Wasted are all tlie hard work, sacrifice and creativity I put into achieving professional success. I stand disbarred and publicly repudiated by my peers. The satisfaction and stiinulation I derived from my work as a lawyer are in the past. Moreover, immersed for twenty years in tlie specialized practice of class action and shareholder litigation, I do not possess a sltill set that is readily adaptable to other fields The social stigma that acconlpanies me cl-eates a daily barrier. My three Y O L I I I ~ claugllters, ages 15, 12 and 5, have also had to withstand a great deal.

Economically, I have sustained severe losses and am in gl.owing financial distress. My sources of incoine depressed, I have principally supported inyself and inet my heavy financiai obligations by dissipating assets, liquidating investments and going increasingly into debt. My resources are greatly eroded. This places me at great peril in

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my ability to continue to provide for my children, who depend on me for their entire support. I have very large child support obligations established in prior domestic proceedings at a time of much higher earnings capacity. Unforlunately, I have been uns~~ccess f~~ l either in attempting to obtain any downward modifications by agreement or from the C O L I ~ ~ S . This is a vexatious and perplexing dilemma.

Regrettably, Inany of these econonlic difficulties stem directly from what I claim are unlawf~~l and, I believe, retaliatory actions of my former lirm in depriving me of substantial, vested severance and retirement benefits. When I resigned from Milberg Weiss on December 31, 2006, 1 i~nrnecliately became entitled to a substantial, one-time termination payment and monthly repayment over time of my acc~~nlulated capital account balance and otl~er vested benefits. My capital represents actual, after-tax dollars that the firm retained and reinvested during my tenure to finance its expansive portfolio of contingent cases. The firm, however, from the beginning, only paid me a portion of the sums to which I was entitled and later, after it settled with the Government in May 2008, completely repudiated the payment of these amounts. The firm also prematurely terminated the inde~nnification of my cri~ninal defense costs when I entered into my plea agreement in Septeinber 2007 and began to cooperate with the Government (my written agreement with the firm stipulated that these costs would be covered through a final conviction, which will not occur, as a matter of law, until the sentencing). The firm's actions have forced me to spend hundreds of thousands of dollars of my diminishing assets to fund costly arbitration proceedings that I have brought against it to enforce my contractual rights. The firm has responded with a series of counterclaims for $450 million in damages seeking, in effect, to shift to me the full amount of its claimed losses, which I have entirely opposed. The trial took place in August 2008 before three arbitrators and we are prese~ltly awaiting their decision.

In that regard, it is pai-ticularly embittering that my former senior partner, Melvyn Weiss, was able to extract from the firm, after his indictment and guilty plea, a lucrative, ' , sweetheart" severance package, in lieu of normal retirement pay-outs ( pay-outs I have been simply denied). I estimate it will provide him with many millions of dollars in accelerated payments from an agreed percentage interest in future fees the firm receives from a selection of particularly valuable cases in its portfolio. I can conceive of no valid reason for such dia~netrically disparate treatment, but the motivating ani~nus seems apparent.

Mr. Weiss brought me into his firm in 1986 as an associate, and, like many others, I admired hi111 and his accomplishments. Under his tutelage, I steadily advanced through the ranks. I found I had a natural aptitude for the firm's concentrations in securities and sllareholder litigation and rapidly acquired lead roles in the cases we handled. To repay this confidence, I strove to excel and achieve. Looking back, I can hardly believe how this has all ended up.

I reiterate that I am fully to blame for the misconduct in which I joined. Nor, by discussing nly own losses and problems, do I mean to diminish the adverse impacts that others have suffered. First, I apologize for my actions and o~nissions that were

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detritnental to the integrity of the judicial system. I especially a~~ologize to the judges before whom I stood and who directly relied on me. Moreover, this Co~irt has itself recognized-and I liave acknowledged-the undisclosed, improper conflicts to which absent class members were subject. I express my regrets to the fine schools where I was educated and who bestowed on me their honors, particularly the University of Chicago Law School, from which I graduated in 1980. I also regret that 1 have failed to live up to the trust and confidence of the now-deceased federal judge for whom I clerked at the foriner United States Cot111 of Claiills in Washington, D.C. and who acquired the Iiighest opinion of me. I liave also let down those wlio worlted with me, pa~~icularly younger attorneys wlio I helped train and urged to perform at the highest levels. Finally, and of most direct importance to me, I apologize and express my regret to my children who, despite being hut? ai~d worried, unfailingly love and s~ippoi-t me. They have had to withstand a great deal and the ordeal is not yet over.

I have also let myself down. I an1 actually a person of very high ideals and standards. Throughout my life, I have worlted as eilergetically as 1 can to perforin at the highest levels of achievement. During illy academic years, I rarely (if ever) missed a class and always aimed for mastery of the inaterial under study. The notion of cheating was foreign to me. As a young lawyer, there was 110 limit 011 the amoLiiit of time or effort I would devote to polish a brief or pleading or prepare for an appearance in court. I checked and re-checked my facts and authorities to assure that they were correct and properly explained. These work habits continued until my last day at the office before I took a leave of absence in May 2006.

I have reflected much on the broader significance of this case and I beg the Court's indulgence to share some of these thoughts, which may give it a better insight into how my character has evolved during this difficult period and to offer an object lesson to others.

From a policy and precedential standpoint, there is niuch more that can be said about this case than I have seen in the myriad reports and articles that have been written about it. As a legal matter, this case has firmly established the applicability of RICO and the "intangible right to honest services" to the actions of private sector attorneys. This will meaningfully add to the arsenal of tools goverliiilg and deterring any illegal actions by practitioners, particularly attonieys who function as class and derivative counsel and court-appointed fiduciaries. The exan~ple set by this case will reinforce professional standards and performance, and ei~iance the mechanis~ns of class and derivative litigation, which i~lures to the public interest.

At the individual practitioner level, pai-ticularly younger or mid-level partners and associates working within increasingly larger legal co~nbii,es, under intense con~petitive pressures both internally and externally, the lesson is to be constantly alei-t to shady or questionable practices that may come within view, Those attorneys inust l~rotect their professional independence and integrity even if that means buclting authority and risking one's security and status by spealtiilg out and talting action. Senior l~ai-tners have heightened legal and professional res~~onsibilities to assure the propel- operation of their

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firms, including exposure to criminal consequences. and must not allow self-interest or ego to obstruct their professional judgment and diligent adherence to governing norms and requirements. Internal controls must be adequate to the task. In a firm with a practice resembling that of my former firm, there is also an imperative need for ongoing research and education in the multifarious rules that exist within and among the many, diverse jurisclictio~ls in which the fin11 practices as well as reliable procedures to assure disclosure, accountability and respect for the r~lles.

At Milberg Weiss, I started in the junior ranks and ultin~ately progressed to a senior and highly responsible role. I thus well understand the lessons of this case from e~ther standpoint. Regrettably, in advancing within this structure, I compromised my own principles and irretrievably crossed the line.

When ~ n y name came into the investigation, many factors caused lne to plead not guilty and persevere with my defense. I have often reflected on this decision but it is now too late to go back and try a different course. Over time, as more and more facts emerged and gathered force, it became iml~ossible to adhere to this stance. I finally came to accept that I had coln~nitted a crime, adinitted my guilt and offered nly cooperation to the Government. This was a difficult decision to nlake but clearly the right step.

I fully understand that this Court nus st observe basic guidelines but possesses the ultimate discretion in determining my sentence. I appreciate the opportunity to have addressed the Court and sincerely hope that my letter will be of some assistance to it in making its decision.

Thank you very much

Very truly your-

Steven G. Schulman

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BADER ~ r . ASSOCIATES, LLC ATTORNEYS AT LAW

1873 SOUTII BELLAIRE STREET, SUITE 1110 DENVER, COLORADO 80222

GERALD L. BADER, JR. Telephone: (303) 534-1700

IGNEE B. TAYLOR, LLC* *Of Counsel

June 13.2008

Telecopier: (303) 691.5076 abadernbadcr-associales.com

The Honorable John F. Walter United States Dishict Court Central District of California - Western Division 312 North Spring Sheet Los Angeles, CA 90012

Re: Steven Schulman

Dear Judge Walter:

I am an attorney licensed in the state of Colorado and have been admitted to practice in Denver, Colorado in 1960. Previously I was admitted in New York and practiced with the law firm of White & Case for nearly four years. I was also admitted in Missouri in 1961, the state of my birth.

I have !mown Steven Schulman for many years, having worked with Milberg Weiss on several occasions as local or co.counsel on derivative and direct action securities matters. Over those years, 1 had the opportnnily to get lo h o w Steven personally and to observe themanner in which he went about his business as a lawyer. 1-1;s work and that of his finn was always of the very highest caliber. My observation was that there were no shortcuts, ethical violations or anything that would call into question his honesty and integrity or that of his firm. It was always a pleasure hearing from himand working with him onmatters that benefitted literally thousands of people by returning significant amounts of money to those victimized by unsc~upulous offerors and marketers. And the work done by Steven and by his film was always excellent - often cutting edge!

Negotiations conducted or participated in by and with Steve were always of the best caliber and the highest ethical standards. His expressed views and his actions made it clear that he was there to benefit his clients, usually a class of investors in securities. Steve Schulman was afraid of no one and earnestly, competently, and to my observation, ethically advanced the affairs of his clients. It was a privilege to be associated with him in these matters.

I urge you to consider a sentence involving community work for Steven Schulman. He has talents he c8n put Lo use for the benefit of many.

GLB Jr.: cp

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EXHIBIT C


THE F L E T C H E R S C H O O L T U F T S U N I V E R S I T Y

May 28,2008

The Honorable John F. Walter United States District Court Central District of California - Westeni Division 312 North Spring Street L.os Angeles, CA 90012

Dear Judge Walter,

I am sending this letter on behalf of Steven Schulman. As Dean of the Fletcher School of Law and Diplomacy at Tufts University, I have had the pleasure of getting to know Steven, who earned his MA and MALD from Fletcher in 1975 and 1976 respectively. Fletcher is the oldest, exclusively graduate professional school of international affairs in the United States, founded in 1933.

I first met Steven in the fall of 2005 in New York City, and found him to be intellectually gifted and a thoughtful and caring person. Steven was eager to learn how he could help support the mission of the School, which had helped him in his career Consequently, Steven began supporting students enrolled in Fletcher's international law division His support was important as these students - the Schulman Scholars - would otherwise not have had ihc resources to study at Fletcher. Steven took a genuine interest in their studies and research work, and visited the School to meet them before graduation.

Steven is in regular contact with our Office of Alumni Relations, and attends events on a regular basis. He participates and conkibutes to these sessions, and is seen as an active and accomplished member of our 'alumni community. Im all of my subsequent interactions with Steven, I continue to see a decent and hard working professional, who not only cares about preparing American and international students for careers within the legal field, but also takes an active role in the process.

Please let me know if I could be of more assistance.

Sincerely,

Stephen W. Boswortli Dean

T H E FLETCHER SCHOOL

OF LAW A N D DIPLOMACY

TUFTS UNIVERSITY

160 PACKARD AVENUE. ph t1 .617 .627 3 0 5 0

MEDFORD. MASSACHUSETTS f x +1 .617 .627 .3508

0 2 1 5 1 USA W W W F L E T L H E R T U F T I T D U

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EXHIBIT D


The Honorable John F. Walter United States District Coui? Central District cf Celifornia. . 3 12 N. Spring Street Room 176, Courtroom 16 Los Angeles, CA 90012

Re: United States v. Steven G. Schulman

Dear Judge Walter:

I am writing to you on behalf of Mr. Steven G. Schulman (Steve) to provide-some personal and professional observations of Steve, in connection with his upcoming sentencing. I have been employed as a paralegaltparalegal manager at law firms for nearly twenty (20) years. For almost the last twelve (12) of those years I have been employed by Milberg LLP, formerly Milberg Weiss.

I recall being somewhat apprehensive about working with Steve because of his reputation as an aggressive hard working litigator who held his team members to very high standards. When you look at our Firm, back in 1996 through now, it has consistently been led by brilliant minds who thought and think very differently. .kt was a completely new experience for me --.to constantly work with equally as,brilliant~inds but on completely different levels. Steve was a case starter which meant that he carefully studied the market and examined whether there was sufficient evidence that something was amiss, before we filed suit. I distinctly recall a time when a team member was assigned an unsatisfactory "grade" for their purported work, by Steve, on a particular case. Despite the substandard grade, Steve was willing to investigate the fact that the work attributed to this person was not correct and was also wise enough to r ~ ~ ~ i z ~ ~ ~ ~ ~ ~ ~ , ~ f h ~ i r : : p ~ r f o f m ~ n ~ ~ , ~ : g ~ ~ C ] ' e e ! ~ ~ ~ ~ ~ . . ~ ~ \ / ~ ; ~ ~ e ~ . ~ ~ ~ ~ $ ~ ~ ~ ~ t j ~ ~ r ~ ~ ! ~ ~ I ~ : t : ~ ~ , by him:,.y ,..I yecart tjgbgimp,f&3@d: b g ~ ~ ~ g & ~ $ . ~ ~ ~ t y ~ ~ $ ~ ~ ~ ! ~ ~ ~ f i & ~ ; ~ ~ ~ ~ , i ~ ~ ! , @ ~ t ~ i ~ ; t ~ e legal 'e6,jjMu-"liyis:fhat :R$&s-J p~f ine(s '~fa~e~y .ha$@ t~g:[email protected]~n,of;b;~i:fig;.f$if;tB ::~:,i:;

SUbijrdihste, e,j.,p~6ye6s;wit~~thg $-dage ,tjeihg that;drtipflows ;do~~hi,,:;My:'~xp~rj~nce~;; With Steve, hbwever; h ive shown theopposite'to betrue. We was. not only faii minded, buttruly valued the contributions of everyone at the firm;both gr&af~andsmall:'Steve inspired me to work that extra bit harder, to have pride in my work and

. . accomplishments, all whileadvocating for the underdog.

I have always believed that society, and more specifically, individuals have an obligation to look out for others. I r la sense, to be a Champion for !he, "little guy." 'However, most people, though the share my beliefs, do little to live up to them: Steve, like all:the others at Milberg LLP, however, does. Not only has Steve always been a relentless advocate for the underdog his determination to represent the underdog was consistently demonstrated in his new case filings. He was a pioneer in this approach.

I was honored to have been personally selected to help lead Milberg Weiss' battle on behalf of Holocaust su~ ivorswor ld~ ide . W e were told'by everyone (in the world) that these cgses would~not.s~cce:ed, itwas no use -. itcould not:bedonei.:but8teyi?.neVer

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humanity. The Firm, including Steve, voted to perform this work for free. I recall being proud to have had the opportunity to work for Milberg then and am still proud to work for the firm now. As you may be aware, the results of thee-extraordinary efforts led to an unprecedented and historical settlement for the victims in the multiple billions of dollars. Without Milberg and the critical backing of it's partners, specifically Steve, this case would never have succeeded, much less happened.

Years later I learned that Steve supported me professionally, unbeknownst to me, during a turbulent time at the Firm, based upon my work on these cases --specifically, the time that I devoted to these cases caused some internal political problems. However, Steve insisted that my time spent on these cases was not only valuable, but essential to their success. He didn't care about money the firm lost to get these matters done properly. In addition, he felt that my contributions on these cases counted going forward. I sincerely hope that this is something that the Court, and your Honor taltes into account upon sentencing. I hope that the sentence imposed reflects the unique contributions to justice, made by Steve.

Steve has publicly and genuinely accepted responsibility for the events culminating in the hearing before you and accepts the fact that he must pay for his mistakes. I believe that his willingness to accept the consequences of these actions speaks to his integrity. I know that his willingness to accept responsibility speaks to his belief in looking out for others.

Respectfully submitted,

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WAITE, SCHNEDER, BAYLESS & CHESLEY CO., L.P.A. ATTORNEYS &- COUNSELLORS A T LAW

15 13 FOURTH & V I N E TOWER O N E WEST EOURTH STREET C I N C I N N A T I . O H I O 45202

T E ~ Z P H O N E (513) 621 -0267

June 10,2008

Honorable John F. Walter United States District Court Central District of California 3 12 N. Spring Street Room 176, Court 16 Los Angeles, California 90012

Re: United States v. Steven Schulman

Dear Judge Walter:

Please allow me to introduce myself. My name is Stanley M. Chesley and I am the sole shareholder of the law firm of Waite, Schneider, Bayless & Chesley Co., L.P.A. in Cincinnati, Ohio. I am a graduate of the University of Cincinnati and the University of Cincinnati College of Law. I am an attorneyin good standing with the Ohio Supreme Court and have been practicing law for forty-eight years, during the majority of which I have specialized in the field of complex, class action litigation.

Over the course of the past decade, I have worked closely with Steven Schulman on a number of complex cases, including: Sherman v. Mabus, Case No. 1 :99-cv-11387 (USDC SDNY), In re Broadwing, Inc. Sec. Litig., C a s e ~ o . 1:02-cv-00795 (USDC SDOH), and In re DPL, Inc. Sec. Litig., CaseNo. 3:02-cv-00355 (USDC SDOH). It is with this background that I write to offer my support on his behalf.

I have known Steve, and have been personally familiar with his reputation, for more than two decades. During all of that time, Steve has always been viewed by me and other leaders of the plaintiffs' bar as a tenacious litigator who repeatedly and successfully championed the rights of individuals against corporate America on issues of corporate and consumer protection.

On a personal level, Steve is a good man He not only has a strong work ethic, but an unparalleled commitment to his clients, family and friends. He is very dedicated and always willing to lend a hand.

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Honorable John F. Walter Page 2 June 10,2008

In imposing your sentence on Steve, I would ask that you please take into consideration not only the crime that he pleaded guilty to, but also the many accomplishments of this dedicated man.

Very truly yours,

WAITE, SCHNEIDER, BAYLESS & CHEShFY CO., L.P.A.

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GRAUBARD M I L L E R THE CHRISLER BUILDING 405 b l N G T 0 N AVLI~UE

NLWYORK, N.Y. 101741901

(21 2) 818~8800

FACSIMILE

I2 12) 8 18 -888 1

DIRECT DIAL NUMBER

I 2 1 21 8 18-8632

May 9,2008

The Honorable John F. Walter United States District Court Central District of California -Western Division 3 12 North Spring Street Los Angeles, CA 90012

Dear Judge Walter:

I write the following character letter about Steven Schulman with enthusiasm.

By way of background, I am a 1960 graduate of the Yale Law School, former Law Clerk to the Honorable William H. Timbers, United States Circuit Judge, Second Circuit, past Chief Counsel to the Speaker of the New York State Assembly, a Professor of Law at Touro Law School and a practicing attorney.

I have not known Steven Schulman for a long time. I met him last year in connection with a dispute between a client of mine and the law firm of Milberg Weiss of which he was then a partner.

I was instantly taken by Steve's intelligence, warmth and caring. In resolving the dispute, Steve showed himself to be a man of honesty and integrity. Kis manner was genlle and his skills outstanding. He is a caring non-confrontational person. In short, I was profoundly impressed by him and I know, with relalive ccrlainty, that he is a fundamentally good person, worthy of the court's mercy.

Very truly yours,

C. Daniel Chill

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854 Cranford Avenue Bronx. NY 10466 In regards to: Steven Schulman

The Honorable John F. Walter United Stales District Cotrrt Central District of CaI13fornia-Western Division 312 North Spring Street Los Angeles, CA 90012

Dear Honorable JF. Walter,

My name is Norma Fanlilia I am 59 years old. 1 moved to NYC from Puerto Rico 20 years ago in May of 1989. 1 am a college graduate with an Associate Degree in Education. I was an elementary teacher for 18 years in Puerto Rico prior to me moving to NYC. I have been married for 39 Years to Rev. Rafael Farnilia (40 yrs serving as a Reverend) currently the minister of a Seventh Day Adventist Church in the Bronx, NY. Together we had 3 children ages37, 32 and 29 each married and college gl-aduates, I am also a grandmother of 3 gorgeous grandchildren.

I began to work with Steven Schurman back in 1989 when I join the law firm as a housekee'p'er in the hospitality department. Iworked for him and the firm for 17 years as a housekeeper, which consisted-ofthe preparation of all conferences rooms (20 rooms in total) priorfo meetings, conferences, ect. The preparation of these rooms consisted of maintaining the rooms stocked with all necessary clerical supplies as well as beverages, snacks in addition to order and set up of foods that would arrive &omvarious restaurants prior to the events. I was also in charge of maintaining all kitchens clean (8 in total). In addition to the duties previously described, I also made sure to clean the lawyers offices and deliver their personal foods, as well as to replenish inventory as necessary, to clean and to help with any clean up accident that may happen in the lawyers offices or their private baths. There were 8 employees in my department all scheduled in 3 different shifts each day. This job was a full time job, it was hard work but good honest and reliable work. Everyone treat@ me well and they consider me a very hard worker and treated me well for it.

1 know Steven Schurman since he ww anassociate to the firm. I got to wilness his professional growth within the firm. Everyone was aware of details of his life such as-his assent within the firm. I remember congratdaling him on that occasion and how happy we were all for him in his career accompEshmerrt. I used to interact a lot with Steven I entered and left his office, or when he visited the kitqhens and conference rooms. He always liked his office very clean and neat and on each Tnursdays I would set some time to clean it. I le was always very polite and respectful towarA3 me. Occasionally, Steven would order new furniture and ask me to oversee the setup a d delivery of the new furniture. He always cared about my opinion, he would conversed with me and take the time to discuss the best layouts and if I liked the new set up. FIecared-about my opinion. He was always very thoughtful; after I helped him wit ~ y ' d & e s e p s o d c h o r e s h e would always tilank me personally and give me a rhg$gg&g&E%till, brvcpem ahd

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scissors with my initials on them, which were thank you gifts that he had given me. I always felt like I was valued by him, never felt mistreated or taken for granted. He also trusted me to organize his desk and paper work to put it in drawers and to arrange his desk and never raised his voice at me or treated us as inferiors. I was the one in-charge of his floral arrangements, plants, new frameworks of portraits, also the set up and service of his food, two-three times a weeks when he was in the office. I knew him and his preferences in his diets and it was always my pleasure to assist him.

Ln my opinion, everyone knew that he was a good person to work for. For example, his secretaries always lasted a long time with Steven. During all the years I worked at the fum Steven had three secretaries and they were from all ethnic backgrounds; white, black and the last one I met was Asian. All three took care of him and cared for him always brought me their gifts to him during special occasion like holidays and birthdays to help them wrap them and arrange them in his office. Same thing with Steven I always help them pick giRs for his staff during those times and arrange for them to be ready. Steven during the holidays never forgot about us the hospitality department, once as holiday gift he gave me a gorgeous watch! He would also give us two to three thousand dollars during the course of the year through my birthday and other celebrations. He was one of the few that noticed the hard work and dedication we gave to the firm and its employees. Because of these samples and many others I consider him always very grateful, considerate and a caring person. I can say that Steven is a very loving family man, organized, detail oriented, expressive, precise, good, genuine, very clean, hard-working, punctual, full of energy, and always attentive. These were some of the many qualities I was able to observe. I have witness all his moods (happiness, sorrows, over worked, ect) and experiences during my years of service at the firm. I still remember when he fell in love with the mother of his daughters, we all knew because he would tell us with excitement and in his own words, he would always show pictures of his wife and daughters and express his love for them. He also shared his wedding experience through his pictures and stories of his gorgeous bride, and when her first daughter was born he would always asked if she looked more like him or his wife and when he found out he was going to be a father for the second time, it was an officr event. He made us feel as part of his extended family. Also, whenever his wife was coming to visit the office he would always call us to arrange his office with flowers for his wife, a very attentive husband. ARer his marriage ended he always took care of his weight and lowered his calorie intake and had a healthy diet to maintain his weight and healthy lifestyle. Whenever any of his secretaries would leave he always would make a great farewell party for them, he spoke of their great work and of how much he will miss them and would present them with a valuable gift. Another detail of my work was that each day before the end of my shift 1 was to clean his desk, organized his letters, through away any garbage and to leave his office clean and neat for the next day. Every day as I did this I would always noticed his family portraits and I could see details of his life like the birth and growth of its daughters and how happy and proud he was of them. I would see his daughter's school acco~nplishments framed and other little details that showed the type of person and wonderful and attentive father that he is. Also Steven was very generous when it came to non-for profit activities. He always contributed to all the events I posted in the kitchen. Every year I participate in the walks and events with different non-for profit organizations such as: American Cancer Society and Susan Komen Eoundat i~n walks f ~ r breast cancer. In addition, he always

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donated towards the Local Dominican Republic Associations for Poverty and with any other promotions or beneficial groups in the community. My church in particularly was very gratefbl to him for contributing towards local activities (health Fairs, health screenings, ect) for the community. During festivals and social activities of the office he would always participate and bring his family. He would speak with the staff of his family and present them to us.

All in all, I hope I have made my point clear by writing this letter. Steven in my opinion has great character and is a humble caring man, which I am proud to say that I worked for him. He made my job pleasant and always made me feel important and needed.

Thank you Steven for everything

Sincerely,

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EXHIBIT H


May 22,2008

The Honorable John F. 'Walter United States District Court Central District of California - Western Division 3 12 North Spring Street Los Angeles, CA 90012

Re: Steven Schulman

Dear Judge Walter:

I am a Senior Partner at Richards, Layton & Finger, and I have practiced in the field of corporate litigation for 28 years. Over those years, 1 have had numerous opporhmities to represent clients as an adversary of Steven Schulman.

In all of my dealings with Steve, I have never had any question about his integrity or honesty. Although I do not know him well personally, he has always been honorable and courteous as an adversary. His demeanor in Court has been respectful and honorable. In one instance that comes to mind, Steve showed extreme sensitivity to a personal issue of one of my witnesses during cross-examination in the midst of a very heated trial.

I would not purport to suggest to Your Honor the appropriate factors in sentencing. However, the Court should know that those of us who have dealt with Steve in the most adversarial of circumstances respect him as an honest and ethical person. I would respectfully urge that the Court consider the most lenient sentence for Mr. Schulman.

Respectfully,

Jesse A. Finkelstein

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EXHIBIT I


August 27, 2008

The Honorable John F. Walter United States District Court Central District of California - Western Division 3 12 Noi-th Spring Street Los Angeles, CA 90012

Dear Judge Walter:

I write this letter on behalf of Steve Schulman whom you will sentence in the next several months, in connection with the Milberg Weiss prosecutions.

By way of background, I began my legal career in the Bronx District Attorney's Office followed by stints in the United States Department of Justice, and United States Attorney's Office, District of Connecticut. I mention this only because it allows me some perspective on the criminal process Steve now confronts. I thereafter spent over ten years at Milberg Weiss, rising to Senior Managing Partner, which afforded me a unique opportunity to observe Steve as a person and in the practice of law. Steve has pleaded guilty to criminal conduct for which he must and has t&en responsibility. Yet this conduct appears to be both isolated and inconsistent with his character. It simply wasn't his style or part of his makeup to act unethically niuch less criniinally. During my time at Milberg, I always found Steve to be an ethical and brilliant lawyer and legal thinker. Beneath a tough exterior was a wann and caring father, colleague and friend. As part of the managing structure of the F i m ~ , Steve was a sensitive human being and fair administrator. I am sure that other letters of support cite these personal qualities.

I Imow that Your Honor must punish Steve for his criminal conduct, yet, at least since the iime of his indictment, he has suffered greatly. I would make the observation that this ordeal has visibly affected him physically, mentally and spiritually. In reality, his punishment began sometime ago. With this in mind, I would respectfully ask the court to consider this fact along with his potential as a valuable member of our society when deciding his immediate future.

Respectfully,

Keith M. Fleischman, Esq.

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MEMsER NEW YORK

AND O.C. BARS

TELEPHONE (314) 72,-5057

FAX (314) 721-3236

ROBERTSGARRICKFAOL.COM

NOT ADMITTED

IN MISSOURI May 23, 2008

The Honorable John F. Walter United States District Court Central District of California - Western Division 312 North Spring Street Los Angeles, CA 90012

Re: Steven G . Schulman.

Dear Judge Walter:

I met Steve Schulman in 1977 as we entered the University of Chicago Law School together. We had some things in common. We each lived alone, in private apartments off campus. We shared a number of intellectual and cultural interests. And as we began classes, we discovered that we had exactly the same schedule.

W e moved in tandem for several years. We were both in New York in summer 1979, clerking at different Manhattan law firms. Then we landed in Washington, D . C . together after graduation in 1980, as Steve clerked for a judge on the U.S. Court of Claims and I did a turn at my New York firm's D . C . office. I remember watching the 1980 election returns at Steve's apartment in Foggy Bottom.

We returned to Manhattan in 1981 and worked at firms that were a few blocks apart. Steve was at Cravath and I was at Cadwalader. We were also neighbors; we each had apartments on East 72nd Street, a block apart. Neither one of us had a lot of free time, but we got together for dinner at least once a month, usually at a restaurant in the basement of the World Trade Center called the Homestead.

When I got married in 1983, Steve came to Los Angeles for my wedding. When Steve got married a few years later in Manhattan, I came Up from Washington, D . C . for his wedding. I had moved to Washington in 1983 and we didn't see as much of each other after that, but we stayed in contact and had dinner every year or so. The last time I spoke to Steve was last year, after his departure from Milberg Weiss but before his plea. We talked a little bit about Steve's current predicament, but other than that it was exactly like one of our chats from twenty-five years ago.

Steve was a spectacular law student and lawyer, but he was an even better person. He had the brains, the character,, and the drive to succeed.

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The Honorable John F. Walter Page Two

He rose quickly to the top of the class, but he was never obnoxious or flashy (like some others). He was universally well liked in law school. He was polite, courtly, dignified--always the grown-up in the room. Steve would never have done mything to draw attention to himself or to undermine another person. 1f we had voted on a "most respected" member of our law school class, I'm sure Steve would have won.

Steve's goal was to be the best law student and lawyer possible, and to live his life in a way that would honor his father, who had been a successful accountant in the upstate New York town of Gloversville. He wanted to be a model professional. He was not motivated b y money or acclaim. He was proud of his achievements bllt never bragged ab0v.t them. He wouldn't even mention that he was a lawyer unless he was asked. He never owned a car during the years I lived close to him in Chicago, Washington, a n d New York. He had a nice apartment but it. was nothing special. I bought a co-op in New York, but Steve rented. There were no flashy vacations or possessions. On a Friday night, Steve would be at home reading a book.

Steve was a monumental achiever, but he did it quietly. He was a scholar and a gentleman--a complete person. He always did things the right way.

On a personal level, Steve was a pleasure to be around. Men and women, faculty and students, all enjoyed spending time with him. Steve was funny, but never crude. He was wry and self-effacing. I can't imagine him swearing or telling a dirty joke. But he knew all the jokes and comedians, and he was an encyclopedia of culture, movies, sports, politics, and economics. All of that , plus he was an almost legendarily great law student. Steve spent a lot of time studying, but he also spent a lot of time reading nonlegal material, and that was unusual.

Steve was ambitious. Would he have cheated--even a little bit--to insure his success? Not a chance. Steve wouldn't even have used an outline (other than his own) to study for a class. He did everything by the book-- literally. He always went to class and he was always prepared. The idea of Steve even looking for a "shortcut" is laughable. Steve succeeded through brains, ambition, and--especially--hard work. He was not interested in any "get rich quick" type jobs o r gimmiclrs.

Now as it turned out, Steve did make a lot of money. What did he do with it all? I know that he gave a lot of it away. Giving money away had been one of his habits for years, but he never talked about i t . I know because 1 was close to him and I asked. I also know because our law school publishes an annual list of donors, and Steve was always the most generous person in our class, usually by a huge margin.

I am quite familiar with Steve's current situation. I know the facts of his case and I've read all the major articles about Milberg, Weiss and the federal indictments.

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The IIonorable John F. Walter Page Three

I can say thia with absolute certainty: Steve is not the person portrayed in the press coverage of this case. He is not even remotely a slick, greedy individual, nor is he personally abusive (though he can he blunt). Steve was always a tough, aggressive, creative lawyer, and a dogged opponent. He was determined to win, but only within the rules. I cannot imagine Steve doing anything that he knew to be illegal or unethical or unprofessional.

Steve was the best friend you could have--there was no downside to knowing him. He loved his mother and his family members. He was supremely proud of his father. Beyond his father, Steve was extraordinarily respectful of and deferential to other authority figures, such as law professors a.nd more senior .l.awyers. Perhaps Steve was a bit too deferential, some of the time.

To those of us who know him well, what's happening now seems surreal.

What wil l Steve do when this chapter in his life mercifully ends? He will go back to work. He'll do something constructive and impressive. He won't do anything to bring discredit on himself, on his family, on his friends, or on this court.

Judge Walter, I respectfully ask you to keep all of thia in mind as you make your decisions about Steve in the coming weeks. I know that if you act generously on his behalf, you will not have cause to regret i t .

Robert S. Garrick

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T U F T S U N I V E R S I T Y

May 22,2008

The Honorable John F. Walter United States District Court Central District of California - Western Division 3 12 North Spring Skeet Los Angeles, CA 90012

Dear Judg'e Walter:

I am writing with the hope that my personal laowledge of Steve Schulman might assist the . , Co:urt . in evaluating him in connection with his upcoming sentencing.

. .

I teach international law at the Fletcher School of Law &Diplomacy in Medford, Massachusetts, and head its LL.M. program. In that connection, 1 have become aware of Steve's great generosity in financially supporting students who, but for his help, would not have been able to attend Fletcher. One - who became my research assistant -was a lawyer from Sri Lanka who works now for its Justice Ministry and will clearly become a leader of its human rights community in short order. Another is a woman whose first job after graduating is a senior position with the United States Institute for Peace. Both of them are going to make this a better world, and they will be able to do that because of Steve's generosity.

I've met Steve a couple of times and I must say that I find him a humane and decent person, who, as 1 would expect, cares about others and lakes joy in their accomplishments. I believe that he can do more good for more people - and'will - outside of prison than inside. I hope that you are lenient in sentencing him.

Please let me know if I can provide any further information.

Sincerely,

A . &--- Michael J. Glennon Professor of htcmational Law

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The Honorable John F. Walter United States District Court Central District of California - Western Division 3 12 North Spring Street Los Angeles, CA 90012

Dear Judge Walter:

I submit this letter to be included in the sentencing memorandum under consideration for Mr. Steven Schulman. I am an alumnus of the Fletcher School of Law and Diplomacy. As a student from 2005-2007,I benefited from Mr. Schulman's generosity in the Corm of a scholarship, which paid a portion of the Fletcher tuilion. With the high cosl of Fletcher education, the tuition assistance helped make the successful pursuit of my Masters degree possible. I view my Fletcher experience as an essential p a t of my background that has led to my professional success.

I am originally from Cuba and currently working for The World Bank Group in a Consultant position. I recently completed Harvard's LL.M. program and previously attended the Fletcher School at Tufts University where I completed my Masters in Law and Diplomacy. Prior to that I completed my LL.B, at the University of Havana Law School, Cuba. In Cuba, I served as a judge at the Municipal Court of Guanajay and the Provincial Court of Havana for several years.

I had an opportunity to meet Mr. Schulman in May 2007 at a luncheon organized through Fletcher's Development & Alumni Relations department. I had been asked by the same department whether I wished to write a letter of gratitude to the benefactor of my tuition support. I took the opportunity, and was later told that Mr. Schulman had selected me to attend the luncheon on the basis of my letter of thanks.

The luncheon itself lasted about an hour and was attended by Dean Rosworth, Mr. Milici, Professor Michael Glennon, Professor Trachtman,Heather Sensibaugii and Nirrnalan Wigneswaran. During Lhe lunch, Mr. Schuiman seemed interested in my background, as well as my goals. I-Ic offered his assistance in the future. I have not had contact with Mr. Schulman since the lunch.

I hope this has been helpful to demonstrate Mr. Schulman's involvement with the Fletcher community. If you have any questions, please do not hesitate to contact me at (617) 320-9514.

5138 Fulton Street, NW + Washington, D.C. 20016 [email protected]

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REUBEN A. GUTTMAN 9008 Willow Valley Drive

Potomac, MI) 20854

July 3, 2008

The Honorable John F. Walter United States District Court Judge

RE: Steven Scl~ulman

Dear Judge Walter:

I am writing with regard to the sentencing of Steven Schulman. I came to know Mr. Schulman during my tenure at Milberg Weiss where I was Of Counsel to the firm in Washington, D.C. from February 2004 until June 2006.

I am a 1985 graduate of Emory University Law School, and currently practice with the law finn of Grant & Eisenhofer P.A. in Washington, D.C.

Mr. Schulman, along with two other senior members of the firm, was sonleone that I initially tallced to in determining whether to join Milberg. Although I had been actively involved in a litigation practice, it was through Mr. Schulman and several other very senior attorneys at Milberg that I learned securities law and matters involving corporate governance. His intellect is unmatched and although at times he could be very demanding, the challenge of working with Steven Schulman is something that I will miss.

On a personal level, Steve has a good sense of humor and has always been extremely loyal to those he worked with and those who worked for him. He showed immense respect for the less senior members of the fm.

I had the opportunity to watch Steve interact with his family. He frequently brought his children to firm events and was extremely proud to have them by his side.

I have not talked with Steve since he has had to address the matters before your Court, but I can fairly say that I do hope our paths cross in the future and that the Court looks upon his situation with leniency. He is a Inan with immense talent and empathy, and I fully believe that his days ahead will be put to the greater benefit of the public i~~terest.

Respectfully submitted,

cis&zkc-/* Reuben A. Guttman U

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May 23 2008

The Hon. John F. Walter United States District Court Central District of California - Western Division 3 12 North Spring Street Los Angeles CA 90012

Dear Judge Walter.

I am writing in respect to Steven G. Schulman, who I understand will be sentenced in your court after his recent plea.

For context, I am the Chairman for North America of the British advertising agency Bartle Bogle Hegarty (BBH). I've spent most of my career in advertising, the notable exception being service for one year in Washington when I was selected as a White House Fellow and served as Special Assistant to the Director of the FBI, who was at the time William Webster. Beyond work, I am a trustee of Williams College (where Steve Schullnan and I were classmates) and a director of the environmental organization Scenic Hudson.

My ftiendship with Steve Schulman began in, I gucss, 1970, when he enrolled at Williams. Both of 11s were very involved in the theatre at Williams, he as an actor, me mostly behind the scenes. I've often thought of how these college theatre experiences must have contributed to our later professional successes -he, arguing publicly in court; for me, organizing large groups of people in the essentially creative endeavour of advertising.

Steve and I stayed in touch over the past 38 years or so. While there were times we lived in the same city but didn't see much of one another, Williams always provided a sort of glue. I ww Class .4gent for our class (leading alumni fund efforts) and he was always an active volunteer, manning the phones and writing letters to cajole classmates into support for Williams. Steve has always been very personally generous in his support of Williams; his annual contribution usually placed him in the top 2% of donors from our class. And he made a very generous gift to at least one capital campaign.

A piercingly sharp i~itellect has always been characteristic of Steve. At Williams he was considered (by peers; I can't speak for the faculty) as brilliant. His mind is capable of comprehending and synthesizing vast ainounts of disparate information and organizing it into a coherent and compelling case. This must have served him very well in his eventual profession ofthe law.

BBH

32 Avenue ol the limerlrar

N e w Yort. N Y 10013 l e l (2121 8 1 2 - 6 6 0 0

F a r . 12121 2C2-6110 "vubartlaboglehegarfY corn

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~ u t well before the law, 1 knew Steve to be very committed to public service. Uncharacteristically for our generation of Vietnam-era graduates, Steve left Williams with a keen interest in public service. FIe went to Washington aRer graduation, intent (as I recall) on obtaining a position in the foreign service. If I remember rightly, I think he also appIiedCor a position with the CIA. Unlike the majority of our generation (and circle of friends) who were anti-government (typical of the times), Steve believed that the institutions of government could be a force for good - and an especially effective one. He believed that more engaged and enlightened interactions with the rest of the world would be the most effective source of strength for America at a time when the Vietnam conflict had become a liability. And he wanted to be part of the solution.

He uursued this commitment to public service by earning a masters degree in foreign policy from Tufts. Although this, in turn, led him to the law, I distinctly recall a continued commitment to public service.

I'm not in a position to address Steve's professional life as a lawyer other than to note that I observed an intense commitment, hard work and a lot of energy applied to this aspect of his life, an approach typical of Steve's to everything that matters to hun.

But 1 can address his character, as someone who's known him from our 'formative' years. The bridge here is 'intensity of commitment'.

Steve's wonderful mind and wide-ranging intellectual interests cause him to think deeply about civic and cultural matters. Over the years we've had enlightening (to me) conversations about civil rights, communism, Harold Pinter, the Middle East and the nature of loyalty. Whatever the topic, Steve engages it deeply and with that intense sort of commitment so characteristic of him.

On a personal level, he's a good and loyal friend, quick to offer help in difficulty and gracious in his recognition of life's little triumphs. He's always had a great - if solnewhat unconventional - sense of humor and when I think of him I always envision him with a smile on his face. He's a committed

A father and has built and maintained a very good parental relationship in the face of some diffisul! challenges over the years.

It's a cliche to say that Steve is someone to whom I would trust my life. But I would. He's thoughtful, considered, reads people well, generous of spirit and completely loyal and dependable. He sees he bigger picture and is a realist, not a romantic. I know Steve would make a good and ethical decision on every occasion.

Steve is a man who's accomplished a lot in his life - and has a huge amount still to contribute to his community as well as to his family, for whom he cares deeply.

B B H

3 2 Avenue of the *meticar Nsu l o r k . N 1 10013 l e l : ( 2 1 2 1 812-6600 l a r : l 7 1 2 ) ZLZ-&I10

wvv.baitlebogiehcgarfl.rom

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1 hope you'll take these personal characteristics and this great future potential for good into consideration.

Sincerely,

Stephen Harty 1

Chairman BBH North America

Ran 32 Avenue 01 the ~rner icar

N e w Y ~ r k , NY 10013 leb 12121 8 1 2 - 6 6 0 0

Fsx: (2121 242-4110 wvu.bartleboglehegarV.com

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JENNIFER K. HlRSW 10 Barclay Street, #29E New York, NY 10007

Tel.: 212-679-361 1 Email: [email protected]

May 29. 2008

The Honorable John F. Waiter United States District Court Central District of California -Western Division 312 North Spring Street Los Angeles, CA 90012

Re: Steven G. Schulrnan

Dear Judge Waiter:

My name is Jennifer K. Hirsh, and I am associated with Harwood Feffer LLP in New York City. I have known Steven G. Schulman ("Steve") since December 1995 when I first applied for a position at Miiberg Weiss Bershad Hynes & Lerach LLP. I began working for Steve in January 1997, first as litigation paralegal, second as law clerk, third as summer associate, and finally, as associate.

I write this letter to bring to light certain aspects of Steve's character that are furthest from the prosecution's interest in revealing. Steve was a phenomenal practitioner. He is a brilliant man and a loving and doting father of three young girls. it was only after working for him for a few years that I personally observed how such qualities co-existed. To see him devise case strategy one moment, eliminate his competition in another, negotiate settlements in yet another and ardently be committed to his daughters' care and development was truly remarkable and immensely edifying.

i directly assisted and worked with Steve in his prosecution of the board of directors in in re Walt Disney Derivative Litigation, in Delaware Chancery Court in 2004-2005. Although I was previously well-aware of his archetypal work ethic, this trial brought to the fore his best qualities in practice - his fire-like determination, boundless energy, sharp brilliance - and made it a most memorable experience in my life.

I cannot sufficiently emphasize how extremely multi-talented this man is and how his. abilities and heart require that he be subject to the lightest possible sentence. if he can no longer practice law. i recommend he perform community service entailing, for example, teaching what was so extraordinary about his practice. It is to Steve's credit that I maintain the highest professional standards in my personal practice and hold myself to the highest ethical standards imaginable.

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WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP

F O U N D E D lees

E 7 0 M A D I S O N A V E N U E 750 a S T R E C T - S U I T E 2 7 7 0

N E W Y O R K , N Y 10016 S A N D I E G O , C A 9 2 1 0 1 O ~ E C ~ D I A L . 212-545-4690

F A C ~ I ~ E 212-545-4653 212-543-4600 6 2 5 N O R T H F L A S L E R O R I V E

[email protected] W E S T P A L M B E A C H , FL 39401

WOLF HALOENSTEIN AOLCR FREEMAN d HLRLLLC

5 5 W E S T MONROE S T R E E T , SUITE 1111

C H I C * B D . I!. 60605

May 9,2008

I-Ionorable John F, Walter United States District Court Central District of California 3 12 N. Spring Street Room 176, Courtroom 16 Los Angeles, CA 90012

Re: United States v. Steven Schnlman

Dear Judge Walter:

I am a senior partner in the law firm of Wolf I-Ialdenstein Adler Freeman & Herz, LLP. My firm has a general commercial practice in New York, Chicago and San Diego. About half of the Firm's lawyers are litigators and much of that litigation is anti-trust, consumer, labor and securities class action work. 1 had previously written a letter to Your Honor regarding Mr. Melvin Weiss.

I graduated from Columbia University Law School in 1971. I joined the Wolf Haldenstein firm as a partner in 1980 to help build and develop the litigation practice. It is within that context of doing securities work that I met, and began to work with, Steven Schulman as co-counsel. I cannot remember the date that I was first introduced to Mr. Schulman. I suspect it was shortly after he joined the Milberg firm.

Steve and I are contemporaries and as such have much in common. Our positions within our respective firms were roughly the same and we grew together in the law and our practices. In addition to actively litigating cases, I was often involved in the organization among plaintiffs' lawyers of class actions. Steve's position at the Milberg firm brought us direclly into discussions in that area. In addition, on occasion Steve and 1 would be co-counsel together actively litigating the cases. Perhaps most memorable was the case we litigated togelher, the groundbreaking litigation in the Eastern District of Virginia, In re: Micro Strategies Securilies Litigation. 11 5 F . Supp. 2d 620 (2000); 172 F. Supp. 2d 778 (2001). At the time that case settled for nearly $200 million was one of the largest settlements in securities class actions.

During our work as competitors and co-counsel, I came to know Steve as a highly intelligent, arliculate and thoughtful attorney. We often spent hours together on cases. When we disagreed, it was with courtesy. We often were able to develop an approach that advanced the litigations. With respect to the organizational cases, Steve could be competitive but never an

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The Honorable John F. Walter May 9,2008 Page 2

unfair or unpleasant. Because we worlted cases together, we had occasion to spend considerable time in the evening together. Steve was one of those attorneys with whom the law was not ihe only subject in his repertoire of interests.

When the indictments and the charges were disclosed against Mr. Schulman I was shocked and surprised. There is nothing within our relationship that suggested any hint of these activities. I was saddened by his guilty plea. Steve Schulman is a man of great talent. He is a man of great intellect. His skills can be placed at the use of our society for great good. These factors should mitigate in favor of the Court exercising its discretion in sentencing and to do so with leniency. I urge the Court to consider more socially useful alternatives to incarceration.

Respectfully submitted, ?-I--

I &..--/'--- /- - -/A -- -\ I

Fred Taylor Isquith

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