Grand Jury indicts Rosenthal in Limas bribery scheme

Austin attorney Marc G. Rosenthal was released from federal custody Monday after pleading not guilty to a 13-count federal indictment that alleges a network of racketeering activity involving the manipulation of the federal and state court system.

Rosenthal, 49, was indicted in connection with the bribery scheme of former state District Judge Abel C. Limas.

Rosenthal, a partner in of Rosenthal & Watson, is charged with conspiracy to violate the RICO statute, tampering with a witness, aiding and abetting, tampering with a proceeding, extortion, and fraud. He was released on a $100,000 unsecured bond that requires the deposit of $10,000 within 24 hours.

The indictment also seeks the forfeiture of at least $5.95 million that Rosenthal allegedly derived from the racketeering activity.

About an hour after his hearing before U.S. Magistrate Judge Felix Recio, Rosenthal maintained his innocence and told The Brownsville Herald that he is looking forward to his day in court where he will be vindicated.

"I am hurt by this, I am really hurt by this. The wonderful people of this community who know me, the ones who really know me, know I did not do what is alleged," Rosenthal said.

"The families of South Texas, the working men and women of South Texas, know I am fighter, that I do what it takes within the law and I am a champion of right and wrong," the Austin attorney said.

"I really look forward to clearing up my name in the same legal arena that I have applied my clients with for some many times. I look forward to continue to be one of the lawyers of choice of the people of this community," Rosenthal added.

The indictment, filed in federal court Aug. 16, was unsealed Monday.

The indictment against Rosenthal alleges that he, Limas, and former state Rep. Jim Solis participated in a scheme to pay the state district judge for favorable rulings for Rosenthal & Watson clients’ cases pending in Limas’ court.

The indictment also alleges that at Rosenthal’s direction, Solis and others paid certain persons, including funeral directors and public employees, to refer personal injury cases to Rosenthal & Watson.

In addition, it is alleged that Solis and others, at Rosenthal’s direction, arranged to manipulate the random case assignment system at the Cameron County District Clerk’s Office so that cases were filed in courts they preferred and that witnesses were paid to provide false testimony and statements.

The firm also is named in the indictment as an alleged Racketeer Influenced and Corrupt Organizations Act (RICO) enterprise.

From the language in the indictment against Rosenthal and the indictment returned earlier this year against Limas, Rosenthal is Person A in the indictment against Limas, which charged him with racketeering.

Limas has pleaded guilty and awaits sentencing. Solis also has pleaded guilty to aiding and abetting extortion and awaits sentencing.

Outside the courthouse, Rosenthal’s attorney Ernesto Gamez said he believes in his client’s innocence and said Rosenthal is connected to the community and has donated thousands of dollars to the needy.

Gamez would not comment on other defendants who have pleaded guilty, only saying, "I wish everyone well, I wish the best for everyone."

The FBI arrested Rosenthal in Brownsville Monday when he turned himself in to authorities on an arrest warrant that Recio issued.

Rosenthal’s law firm issued a statement that "Rosenthal & Watson stands fully behind Marc Rosenthal and his innocence of these charges. We are proud of his work with the firm and he’s helped hundreds of people get justice in our courts by following the rules for his entire career.

"The admissions of wrongdoing from the judge and others are disheartening. But we were not aware of their improper activities. We expect to see Marc vindicated," the firm stated.

Rosenthal said that he would continue to practice in his law firm.

The criminal activity is alleged to have transpired from November 2005 through December 2009.

Unindicted co-conspirators

According to the indictment against Rosenthal, at his instruction and direction, unindicted co-conspirator 1 paid witnesses or had witnesses paid in return for false testimony in potential and actual state and federal cases in Cameron County, surrounding counties, and in the Southern District of Texas.

The indictment alleges that Rosenthal instructed and directed unindicted co-conspirator 1 and Solis in the recruitment and development of actual and potential or threatened personal injury lawsuits in Cameron County and surrounding counties.

It also was part of the alleged conspiracy for unindicted co-conspirator 1 to locate and pay witnesses on behalf of Rosenthal for false testimony and statements in potential lawsuits, according to the indictment.

The indictment also alleges that Rosenthal, aided by others known and unknown to the grand jury, corruptly persuaded a witness, unindicted co-conspirator 2, to give false statements and to provide perjured testimony in a personal injury lawsuit.

Further charges

The indictment against Rosenthal notes that his law firm constituted an enterprise, which was engaged in activities whose purposes included developing personal injury cases based in significant part on false and misleading testimony; the bribery of "judicial officials, including Limas" and bribery of witnesses and potential witnesses in state and federal cases for the personal financial benefit and enrichment of Rosenthal & Watson, Rosenthal, Limas, Solis and others; and use of the 404th Judicial District court and the office of judge to deprive citizens of their right to the honest services of an elected official.

According to the firm, "It is business as usual at Rosenthal & Watson and we have no plans to do anything but fully and zealously represent our clients, both our existing clients and the new ones who’ve hired us in the last few months.

"Marc and the rest of the lawyers and staff at Rosenthal & Watson will continue to do all we can, full-time and with full force to represent those injured and seeking justice. As in the past, Lynn Watson will continue to handle the bulk of the firm’s administrative duties," the statement reads.

Assistant U.S. Attorneys Oscar Ponce and Michael J. Wynne are prosecuting the case that is part of an ongoing investigation conducted by the FBI, Drug Enforcement Administration and the Brownsville Police Department.

U.S. Attorney John E. Murphy of the Western District of Texas was appointed to the Rosenthal case