Arledge to report to prison next month, not Tuesday|[01/26/08]
Published 12:00 am Saturday, January 26, 2008
Vicksburg attorney Robert Arledge, convicted almost a year ago of defrauding the national fund established by the maker of a diet drug that contained fen-phen, will be a free man a couple of weeks longer.
Arledge is now scheduled to surrender by noon Feb. 15 to begin serving his sentence, a spokesman from U.S. Judge David Bramlette’s office said Friday. At his restitution hearing Jan. 17, after decisions were made on how the attorney would pay back the $5,829,334.90 he is convicted of making while knowingly submitting false claims for multiple clients, Bramlette ordered Arledge to report to federal prison Jan. 29. However, Arledge’s attorneys asked for the delay. Bramlette initially denied the motion but told prosecutors, who were not prepared to discuss the matter, he would give them five days to object. That five-day period expired Friday with no objection filed.
Neither Arledge’s attorneys or U.S. Assistant Attorney Marc Perez, who is leading the prosecution, could be reached.
Where Arledge, who was convicted of seven counts of conspiracy and mail and wire fraud, will serve his 6 1/2-year term will be made public after he reports.
At the restitution hearing, Bramlette decided Arledge would pay the $5.8 million to James Cochran, the man appointed by a Mississippi court nine years ago to oversee the trust established by American Home Products, now Wyeth, to settle claims for damages by people who claimed to have been harmed from taking fen-phen. At two previous court dates, Arledge was ordered to pay $375,000 and $500,000. Arledge is to pay the remaining millions after he serves his prison sentence.
Also during the restitution hearing, Bramlette denied the defense’s request that Arledge remain free on bond, pending appeals. Karl Koch, one of Arledge’s attorneys, said a motion to appeal the conviction and sentence was made in October, but no briefs have been filed.
Arledge is the only attorney charged with wrongdoing during the nationwide process in which American Home Products paid out at least $3 billion.
His conviction came March 23, after eight days of testimony from more than a dozen government witnesses, including some who had already pleaded guilty to fraudulently saying they had taken the prescription drug that was later linked to heart ailments. Jurors acquitted him of 17 counts of money laundering.
The defense called no witnesses and maintained that Arledge didn’t know the information clients provided was false.
His sentencing date had been delayed twice. Originally set for Aug. 6, it was postponed after discussions arose about sentencing guidelines, specifically to determine the total of losses for which Arledge is responsible and establish whether he was an organizer of the illegal operation. Bramlette did not determine that he was.
Sold by the company under the names Pondimin and Redux, the drugs at the center of the case were used in a combination called fen-phen that was prescribed to treat obesity. The drugs were pulled from the market in 1997 after research revealed they could cause heart problems.
Attorneys who processed claims to the fund were paid a percentage of settlements each claimant received.
After making millions in the case, Arledge built and furnished a mansion in Vicksburg’s Turning Leaf subdivision and made an unsuccessful election bid for judge of Warren County Court and Warren County Youth Court. The house has been listed for sale.