Attorney General's News Release

May 16, 1997

Federal judge finds four defendants liable for damages in Second Injury Fund racketeering case brought by Nixon

Jefferson City, Mo. — U.S. District Judge Donald Stohr has ruled that four defendants charged by Attorney General Jay Nixon with racketeering in connection with the state's Second Injury Fund are liable for civil damages to repay taxpayers more than $1 million taken fraudulently from the fund. The Second Injury Fund pays benefits to workers whose job injuries are aggravated by a previous injury.

Nixon filed suit in December 1993 against attorney William E. Roussin, chiropractor Nadim Nasrallah and former administrative law judge Erio M. Comici, all from St. Louis, and against St. Louis attorney Morris B. Kessler, who died in 1996. Kessler's estate currently is a defendant. All four defendants had previously pleaded guilty to federal criminal charges related to the Second Injury Fund.

Nixon sought civil damages against the defendants for violation of the Racketeering Influenced and Corrupt Organization (RICO) Act and state laws for a variety of activities, including inflating disability ratings, falsifying medical reports and making improper contributions to influence former Attorney General William Webster.

The court ruled on Nixon's motion to find the four liable, with the amount of liability to be determined at a trial beginning June 16 in St. Louis. Under the RICO Act, restitution of up to three times what was illegally taken can be ordered.

"We will continue to aggressively pursue recovery of taxpayers' money that was taken fraudulently by those who abused the Second Injury Fund," Nixon said. "There is a clear message here that stealing from the taxpayers of Missouri will not be tolerated and will not go unpunished."

Nixon's lawsuit alleged violations of RICO including:

• Bribery for payments the St. Louis attorneys made to Webster campaign committees to induce the former attorney general and his staff to allow them to work as counsel for the state and to receive undue benefit from the Second Injury Fund. Roussin, Kessler and Comici are alleged to have participated in this portion of the scheme.
• Mail fraud for using the U.S. mail service to deliver excessive and improper awards, forged settlement papers, fraudulent awards and false billings. All four defendants are alleged to have committed these acts.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818