Houston lawyer Tammy Tran is representing approximately 1,000 individuals who say that their identities were stolen in the wake of the 2010 Gulf of Mexico oil spill for the purpose of lodging fraudulent compensation claims against BP. High-profile Texas attorneys Bob Hilliard and John Cracken stand accused of bankrolling a scheme to claim hundreds of millions of dollars worth of compensation from BP using the faked or stolen identities of Vietnamese-American fishing boat captains. Ms Tran is seeking around $100m in punitive damages from Mr Hilliard and Mr Cracken to compensate affected individuals, claiming that the fraud blocked the legitimate attempts of those affected to claim compensation through BP’s restitution program. Compensation is also being sought for homes and businesses lost while waiting for BP to pay under its $2.3bn seafood industry accord.
Mikal Watts indictment
In 2014, BP attempted to suspend its compensation payouts for seafood industry workers after it surfaced that another lawyer involved in the accord, Mikal Watts, may have misrepresented his 40,000-strong client list. Though BP’s motion was denied in court, the company maintained that Mr Watts’ actions tainted the portion of its $9.2bn settlement that had been set aside for compensating the seafood industry.
A spokesperson said at the time: ‘It is BP’s position that false representations by plaintiffs’ lawyer Mikal Watts to the court and to BP improperly increased the perceived value of potential seafood claims during settlement negotiations and resulted in an inflated $2.3bn fund.’
Mr Watts was eventually indicted over the allegations and will face a criminal trial for identity theft and making false claims later this year. Ms Tran’s clients brought a case against Mr Watts two years ago in a San Antonio court, which has since stalled due to the pending criminal trial.
The plot thickens
Ms Tran reportedly learned of Mr Hilliard and Mr Cracken’s involvement via a criminal defence attorney with close links to Mr Watts’ indictment. The indictment, unsealed in October, details two accomplices to Mr Watts’ scheme but refers to them as only ‘Attorney 1’ and ‘Attorney 2’. Ms Tran now alleges on behalf of plaintiffs that the Texas pair were ‘deeply involved’ with the fraud and had invested around $10m into the scheme in return for the millions in legal fees that would be generated through the claims.
Allegations denied
In an email sent last Friday, Mr Hilliard denied any wrongdoing. ‘Ms Tran is addicted to headlines and incapable of proving this case,’ he said, adding that Ms Tran’s ‘careless use of the legal system’ would eventually prove a disservice to those affected by the Gulf of Mexico disaster. Both Mr Hilliard and Mr Cracken will be defended in the lawsuit by Houston attorney Richard Mithoff.
This is the second time that Mr Hilliard has made headlines this year. In January, the first bellwether case in the high-profile General Motors ignition switch defect litigation was dropped mid-trial after it emerged that Mr Hilliard’s client had lied on the stand. Sources: Australasian Lawyer; Bloomberg Business; Fuel Fix
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