U.S. v. Milberg Weiss...David Bershad is the New Joe Valachi

Numerous media reports, none denied, state that David Bershad has agreed to cooperate with federal prosecutors in Los Angeles. That makes Bershad the first highest-ranking leader of the alleged crime enterprise to cut a deal. When Joe Valachi broke the code of silence, the Mafia began a decline and today even a "Boss" like Big Joe cooperates, so who can blame David Bershad?

David Bershad was the number-two partner on the East Coast, and had direct personal dealings with Mel Weiss and Bill Lerach on the West Coast, whose own number-two partner, Alan Schulman, has reportedly received immunity. Bershad knows everything about everybody, and everybody knows that Bershad knows everything about everybody.

The first to react was Bill Lerach, who announced his retirement.

Proving the adage "When you can keep your head while all others about you are losing theirs, you've probably missed the point", Mel Weiss remains defiant and denies all charges, even after Bershad "flipped." However, Bershad was the first associate to be hired by Milberg Weiss, had close and frequent contact with his mentor Mel Weiss, and had the safe in the credenza in his(Bershad's) office with the cash for the client kickback corroborated by the client, Howard Vogel, who has pleaded guilty, and Robert Sugarman, a former Milberg Weiss East Coast case-starter, who has immunity.

Meanwhile, defendant Seymour Lazar was found fit to stand trial, presently scheduled for January 2008.

I vividly recall David Bershad, in a meeting in 2001, stating that Milberg Weiss had the best "Plaintiffs' Gathering Machine." Bershad knows where all the bodies are buried, perhaps triggering a race to the U.S. Attorney in L.A. by other former Milberg partners like Steven Schulman, whose value to the government has plummeted now that the feds have the first highest-ranking "rat" in the history of the Milberg Weiss case, as David Bershad becomes the Ivy League version of Joe Valachi. If the jury believes Bershad, and the cast of three others who've pleaded guilty and the five other cooperating witnesses, with the corroborating documents evidencing the money laundering, you can start saying "Kaddish" for Milberg Weiss.

Full Disclosure: In case you missed it, I'm an "unfriendly competitor" of Milberg Weiss.