U.S. Judge Refuses to Drop Charges Against Informant in ‘Alliance’ Case

A San Diego federal judge declined Tuesday to dismiss charges in the so-called “Alliance” insurance fraud and legal corruption case against a lawyer who claimed that he had served as a secret informant because he had been promised immunity from prosecution.

U. S. District Judge Judith N. Keep said prosecutors had agreed that Leonardo T. Radomile, 44, a San Diego lawyer, would act as an informant in the complex case. But prosecutors never promised him immunity, Keep said.

As a lawyer, Radomile knew that he had to ask directly for immunity, which he never did, Keep said. And there was no reason for prosecutors to have initiated any discussions of immunity with him because Radomile consistently portrayed himself as a victim and victims don’t worry about being prosecuted, she said.

Radomile, who said he was disappointed with Keep’s ruling and maintained his innocence, offered himself as an informant three years ago on a lawyers network that prosecutors called the Alliance. But he ended up being indicted April 24 with 17 others on mail fraud and racketeering charges.

The indictment alleges that 14 Southern California lawyers--including Radomile--and four non-lawyers defrauded insurance companies by manipulating complex lawsuits to receive artificially high legal fees.

Prior to the April indictment, seven other people, including four attorneys, pleaded guilty to mail fraud. A majority of those charged lived or practiced law in the San Fernando Valley. The case was brought in San Diego because some of the lawsuits involving the insurance companies were filed in courts there.

The case has been characterized as one of the largest criminal prosecutions of lawyers in U. S. history.

The attorneys are accused of conspiring to prolong civil litigation in Los Angeles, Orange and San Diego counties, defrauding insurers--who were paying the lawyers’ fees--of up to $50 million. Prosecutors contend that the scheme was directed by Lynn B. Stites, 45, a Los Angeles lawyer who has disappeared and whose whereabouts are unknown.

Last year, Radomile had disclosed his undercover role on the television news program “60 Minutes.” He was portrayed on the show as a crime-buster who “infiltrated the Alliance.”

Radomile was not initially a target of the investigation, Keep said. But prosecutors later decided that he, too, was involved.

A trial date in the case has not been set.