By Matt Hamilton and Harriet Ryan | Los Angeles Occasions
LOS ANGELES — 4 influential California lawmakers known as this week for an investigation right into a $17.5 million class-action settlement on behalf of Armenian genocide victims that a Los Angeles Occasions investigation discovered had been marred by fraud, diverted funds and a rejection fee of 92%.
U.S. Reps. Jackie Speier, D-Calif., and Anna Eshoo, D-Calif., the one Armenian People in Congress, together with Rep. Adam Schiff, D-Calif., and state Sen. Anthony Portantino, D-La Canada Flintridge, chair of the Senate Appropriations Committee, mentioned they have been disgusted by misconduct The Occasions detailed in a report final week.
“I'm deeply involved and outraged by the problems raised,” Portantino mentioned in a press release. “The Armenian Genocide was a horrendous historic atrocity and descendants of these murdered shouldn't be victimized or be denied their rightful settlements.”
Three Armenian American attorneys from Los Angeles, together with outstanding legal professionals Mark Geragos and Brian Kabateck, secured the settlement with the French insurance coverage firm AXA a decade and a half in the past. The funds have been imagined to compensate the households of genocide victims with unpaid insurance coverage insurance policies and help Armenian charities chosen by a French nonprofit.
The Occasions investigation discovered that the French nonprofit was by no means established; among the cash was despatched to the pet charities of legal professionals concerned within the case, together with their alma mater; and tons of of hundreds of dollars have been directed to sham claimants. Lower than 8% of claims submitted by Armenians around the globe have been accredited, regardless of what in lots of instances was overwhelming proof that the candidates have been rightful heirs.
“It’s clear by the dismal claims approval fee and finger-pointing that one thing is rotten in Denmark, or Glendale, or France because the case could also be,” mentioned Speier, the co-chair of the Congressional Armenian Caucus, in a press release.
Schiff, who represents Glendale, dwelling to a large Armenian group, and is chair of the highly effective Home Intelligence Committee, mentioned he was involved by the “ordeal” confronted by descendants of the genocide.
“I believe all of us who learn these tales have been horrified that among the survivors and their households might have been victimized once more,” Schiff mentioned in a press release. “I totally help an investigation to make sure all such survivors get the compensation they deserve.”
Eshoo agreed that “a full investigation” was “completely warranted,” including: “It's shameful that fraudsters are taking advantage of the ache of the Armenian group.”
The settlement in U.S. District Court docket in Los Angeles was overseen by Choose Christina A. Snyder from shortly after its submitting in 1999. The Occasions described how varied events — the Armenian Ministry of Justice, claimants, a lead legal professional within the case and a court-appointed French settlement board — voiced considerations to Snyder in regards to the dealing with of claims and settlement funds over a interval of years.
Among the many irregularities was the award of some $575,000 to a Syrian man who had by no means utilized for compensation, and funds totaling $400,000 to an Iraqi man whose existence couldn't be verified. A few of these funds have been transformed to cashier’s checks in Southern California. Moreover, at the least $750,000 that was imagined to go to non secular organizations by no means arrived, church officers instructed The Occasions.
Snyder greenlit some investigative efforts to uncover misconduct, however repeatedly denied a whole audit of the settlement.
“The court docket’s refusal to grant an impartial audit is equally puzzling,” Speier mentioned within the assertion.
Snyder beforehand instructed The Occasions that the judicial code of conduct barred her from talking in regards to the settlement. She formally closed the case in 2016. Geragos and Kabateck, each descendants of genocide survivors, denied any wrongdoing in statements from representatives.
They've blamed others for the issues within the claims course of, together with different legal professionals and a claims administrator, and identified that thousands and thousands of dollars did go to Armenian charitable causes. Kabateck’s consultant famous that cash they despatched to his and Geragos’ alma mater, Loyola Legislation College, was used to ascertain a genocide legislation middle. Each famous that, regardless of complaints in regards to the settlement to the State Bar of California, which polices the authorized occupation, and legislation enforcement businesses, there have been no felony prices towards the 2 legal professionals or findings of misconduct on their half.
The Occasions’ investigation relied on newly unsealed information, emails amongst attorneys and confidential settlement information. Authorities beforehand took motion towards three different legal professionals in reference to the settlement. A Beverly Hills legal professional, Berj Boyajian, pleaded no contest in Superior Court docket to a felony and a misdemeanor cost in reference to making false claims to the State Bar and in the end served no jail time. He later resigned his legislation license.
The bar moved towards the legislation licenses of Vartkes Yeghiayan, a Glendale legal professional who labored on the instances with Geragos and Kabateck, and his spouse for allegedly misappropriating charity cash. The case towards her was thrown out. Yeghiayan died earlier than trial.
Some Armenians in France and the U.S. have campaigned to carry accountable further figures within the settlement. As not too long ago as final 12 months, a member of the court-appointed French settlement board urged the L.A. County District Legal professional to launch a brand new probe and comparable requests have been made in recent times to the State Bar. There isn't a statute of limitations for investigations initiated by the bar into potential legal professional misconduct.
Speier, the Bay Space congresswoman, raised the opportunity of an investigation by the state auditor or state insurance coverage commissioner.
Portantino mentioned he wished “continued investigation and transparency till the rightful recipients are justly compensated and any and all actions of potential wrongdoing are uncovered and correctly handled.”
The settlement and a previous case towards the insurer New York Life have been lauded by Armenians within the mid-2000s. On the time, the group was nonetheless combating for the U.S. authorities and others to acknowledge the 1915 genocide as a historic reality. President Joe Biden lastly acknowledged the genocide final 12 months.
In 2018, the Armenian Bar Affiliation — knowledgeable group for Armenian American legal professionals — feted Snyder at its annual banquet with Kabateck, one of many attorneys within the AXA case, proclaiming, “Each decide ought to take classes from the Honorable Christina Snyder.”
Within the wake of The Occasions investigation, the Armenian Bar Affiliation expressed “profound disappointment and concern” over the involvement of Armenian American legal professionals within the improprieties.
“If true, these allegations not solely violate the moral aspirations of the Armenian Bar Affiliation’s membership, however they characterize a grave breach of our group’s core values,” the group’s board mentioned in a press release.
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