Edward Fagan Begs the New Jersey Supreme Court To Allow Him to Keep His License
Fagan's former client, Gizella Weisshaus, whose $82,000 was stolen from her by Mt. Fagan, travelled to Trenton on June 18, 2009, to hear Ed Fagan beg for his law license in New Jersey. Fagan has already been disbarred in New York State.
Holocaust victims' lawyer asks N.J. Supreme Court to allow him to practice law
Posted by ksantiag June 16, 2009 18:31PM
TRENTON -- An attorney who was the first to sue Swiss banks on behalf of Holocaust victims and then was accused of misappropriating funds from those clients today pleaded with the state Supreme Court to let him practice law.
A special ethics counsel last year recommended Edward Fagan, 56, should be disbarred after a series of hearings revealed he mishandled $400,000 of his clients' money. The Supreme Court will make that determination.
"I didn't misappropriate a penny of client funds," Fagan said before the justices today.
Fagan did not deny he had taken money from Gizella Weisshaus, a Holocaust survivor he represented, after putting it in his own personal trust fund. He said he was "entitled" to the money -- more than $80,000 -- she owed him for work he had done.
But Fagan could not produce all of the records showing he had done that work -- either today or during the ethics probe.
Fagan said the New Jersey Office of Attorney Ethics had stolen his documents in the probe and that some boxes of evidence had ended up in New York in an ongoing federal suit against him.
Some justices challenged that assertion.
"You were the person who was in the best position to then find corroborative proofs of what you did," Justice Roberto Rivera-Soto said.
Fagan said he was unable to obtain copies of his files from New Jersey and New York authorities.
As Fagan presented his case before the court, audience members at times laughed at the proceedings. Weisshaus, who had traveled from New York to listen to Fagan's testimony, was one of them.
"I didn't owe him anything," she said. "I was a fool."
Weisshaus said it was a long time before she realized something "was wrong" with he ex-lawyer.
In 1996, Weisshaus became the first survivor to file suit in federal court against Swiss banks. The massive class action suit won a $1.25 billion settlement in 1998 for more than 30,000 Holocaust victims from the banks, which are known for protecting their clients' privacy.
Weisshaus and Fagan went after Swiss banks they believed had dormant accounts filled with money and gold looted from Jewish homes and communities during World War II. Weisshaus had told Fagan she knew her father once had money in Swiss banks and, for all she knew, it was still there.
The attorney was later accused in the ethics probe of misusing a total of $82,600 of Weisshaus' money and part of a $500,000 settlement another survivor, Estelle Sapir, who is now deceased, received from the banks. He put those funds toward business expenses, including back rent, and wrote several checks to cash, according to the ethics complaint.
John McGill, the ethics attorney representing the state, became frustrated at times during the hearing.
"I think the disciplinary review board's decision was fair and reasonable and I have every confidence the Supreme Court will see that justice is served in this matter," he said.
As is its custom, the Supreme Court will issue its opinion at a later date. Chief Justice Stuart Rabner did not participate in the hearing.
Fagan has been disbarred in New York.
Lawyer for Holocaust Victims Claims Trust-Fund Dipping Was Inadvertent
The New Jersey Law Journal - June 16, 2009
The state Supreme Court on Tuesday heard Edward Fagan, a Livingston lawyer who helped secure a multibillion-dollar settlement for Holocaust victims and survivors, argue why he should not be disbarred for misappropriating clients' funds. Appearing pro se in response to an order to show cause, Fagan disputed findings made last year by a special master that he improperly disbursed upwards of $400,000 in settlement and estate funds and used them for personal expenses. The lawyer said that the money he withdrew represented valid compensation for legal work, although he admitted his record-keeping was spotty. Special master Arthur Minuskin last year rejected Fagan's claim that the expenditures were the result of negligence and thus should not subject him to the mandatory disbarment rule of In re Wilson , 81 N.J. 451 (1979).
Fagan was one of the lawyers who launched federal class action litigation in the 1990s that sought reparations for Holocaust crimes from Germany, German industries, Swiss banks and other entities, resulting in a $1.25 billion settlement in 1998 for more than 30,000 victims. According to the master's report, Fagan failed to hold $82,582 in escrow given to him by client Gizella Weisshaus, a Holocaust survivor, from the estate of Jack Oestreicher; that he improperly disbursed $303,582 of Holocaust settlement funds from client Estelle Sapir; and that he misappropriated $40,000 from clients' funds to pay his New York law office rent.
"The evidence does not support the respondent's claim that he had the authority to use the Sapir settlement funds for his personal use or to pay back funds to Oestreicher or Sapir," wrote Minuskin, a former Superior Court judge, in a report that followed 25 days of hearings. Fagan testified that he used trust accounts from various clients to pay out personal injury settlements, but Minuskin found Fagan was evasive under oath and lied in claiming he had authority to disburse the clients' funds. Based on Minuskin's report, the Disciplinary Review Board recommended disbarment, and today's hearing was Fagan's last chance to ward off the ultimate penalty. Disbarments in New Jersey are permanent. Fagan is ineligible to practice in New Jersey because he has not paid his registration fees. He is still licensed to practice in New York.
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Chief Justice Stuart Rabner
Governor taps Rabner for chief justice
by Marilyn Silverstein, NJJN Staff Writer, 06.07.07
Calling it one of the most important decisions he will ever make as governor of the state of New Jersey, Gov. Jon Corzine has nominated Attorney General Stuart Rabner to be chief justice of the New Jersey Supreme Court.
The choice of Rabner, a member and past president of Congregation Agudath Israel of West Essex in Caldwell, was immediately hailed by Jewish leaders who worked closely with him on bias crimes and other matters.
If confirmed, Rabner, 46, will become the eighth chief justice of the Supreme Court under the state's 1947 Constitution, replacing Chief Justice James Zazzali, who will reach the mandatory retirement age of 70 on June 17.
The governor also nominated First Assistant Attorney General Anne Milgram to serve as attorney general. The state's Senate Judiciary Committee is expected to open hearings on the nominations on June 18.
"Nobody, in my mind, is more qualified than Stuart Rabner to head our Supreme Court and administer the court system," Corzine told the crowd that packed his outer office at the State House in Trenton on June 4.
The governor praised Rabner for his integrity, intelligence, and commitment to excellence. "His record is extraordinary," the governor said. "Everywhere Stuart Rabner has served, he has served with distinction."
Corzine pointed in particular to Rabner's service as attorney general for the past nine months, overseeing the operations of the state's Department of Law and Public Safety, and to his tenure before that as the governor's chief counsel.
He also praised Rabner for his achievements as a prosecutor in the U.S. Attorney's Office in Newark, as a summa cum laude graduate of Princeton University, and as a cum laude graduate of Harvard Law School.
"Needless to say, my expectation is that he will follow that pattern of excellence and success he has had everywhere in his life as he goes forward as chief justice," Corzine said.
Corzine observed that one of his predecessors as governor, Woodrow Wilson, called the judiciary "the balance wheel" of the entire political system in the drive to preserve equal justice under the law for all NJ citizens.
"The people of New Jersey will be better served by your holding that balance wheel with a steady hand," the governor told Rabner. "I expect you will shape our history long, long after this administration has passed."
In response, Rabner called the nomination "an honor beyond words."
"Our court has a rich history," he said. "It has been led by giants and populated by justices known for their intellect, their depth of thought, their fairness, and their commitment to the rule of law. I am humbled by the responsibilities that lie ahead."
Rabner said he treasures the time he has spent working with Corzine. He recalled the many times Corzine has turned to him with the question, "What is the right thing to do?" He plans to pose the same question as chief justice of the Supreme Court, he said.
"Not what is easy or expedient or popular, but what is right," Rabner said. "And that is what government service should always be about."
In his brief remarks, Rabner also acknowledged his family, who were on hand for the announcement of the nomination — his wife, Deborah, a dermatologist who practices in West Caldwell, and their three children — Erica, 15, Carly, 14, and Jack, 13. Rabner's parents are Holocaust survivors.
"I thank my family, without whose support at many levels I would not be here today," he said. "How fortunate I am to have my wife, Debbie, and my children stand with me through this remarkable and rewarding experience of public service."
Milgram, in her acceptance of the governor's nomination, promised to push back against political corruption, gang violence, and consumer fraud in the state. "I pledge to you today that, if confirmed, I will serve in a manner worthy of your confidence and the public's trust," she said.
In a question-and-answer period, Rabner said that he was proud of his work as attorney general to strengthen the ethics code in the Department of Law and Public Safety and to reorganize the Division of Criminal Justice. "We have put down seeds for the future," he said.
Asked by NJ Jewish News to predict the most challenging issues he will face on the Supreme Court, Rabner said it was premature to discuss such matters. "I'll be happy to try to expand on that to the Senate Judiciary Committee," he said.
Also on hand for the announcement of Rabner's nomination were several members of the state's Supreme Court, as well as former Chief Justice Deborah Poritz, who retired last October.
"I think Stuart Rabner will be an outstanding chief justice," Poritz said in an interview. "He has all of the qualifications. Everything I know about him tells us that will be so."
Locally, Rabner's appointment elicited excitement and proud approval from his fellow Agudath Israel congregants, said Michael Simon of North Caldwell, synagogue president and Rabner's successor. "I have always considered myself very fortunate to lookÂ to Stuart for his guidance and as aÂ mentor," said Simon. "No one deserves recognition and praise more than Stuart; he epitomizes all that is good in people. He is intelligent, thoughtful, and caring, and I am proud to consider him a friend."
Etzion Neuer, regional director of the Anti-Defamation League, also welcomed Rabner's nomination to the court.
"It's a great thing for New Jersey, and it bodes well for the future," Neuer said during a telephone interview. "It's encouraging to see a person of upright character getting tapped to do a job that demands high ethical training and behavior. It's nice to see good things happen to good people."
Neuer said he worked closely with Rabner in planning last April's groundbreaking statewide summit, New Jersey Unites Against Hate.
"The attorney general's interest in this particular area is emblematic of his desire to create a sense of justice in the state," the ADL executive said. "In dealing with his office, there was a culture of exactitude. I got a sense that this is a guy determined to do the right thing at every opportunity. The hope is, we'll see the same strong desire for justice from the bench."
Edward Fagan disbarred
September 8, 2000
AN AVENGER'S PATH: A special report.; Lawyer in Holocaust Case Faces Litany of Complaints
By BARRY MEIER, NY TIMES
Less than four years ago, a little-known personal-injury lawyer named Edward D. Fagan stood next to an Auschwitz survivor at a news conference in New York and announced an audacious lawsuit, accusing Swiss banks of stealing money 50 years ago from those who died in the Holocaust.
Today, Mr. Fagan has a new and glamorous career and is likely soon to earn millions of dollars in legal fees. He has since filed lawsuits against banks, insurers and other companies in Austria, Germany and elsewhere, charging that they too profited from Nazi ties or exploited victims. Settlements of actions against Swiss banks and German industry worth over $6.2 billion were recently approved.
Dozens of lawyers got involved in the Holocaust claims. But the 47-year-old Mr. Fagan cast himself a part as a media-savvy street fighter who became the public point man in the cases. This July, he hopscotched in a few days from Berlin to Vienna to Warsaw on behalf of tens of thousands of people whom he and lawyers associated with him represent.
They have also opened a second front, charging Japanese companies in lawsuits with using thousands of Asians and others as forced labor during World War II.
'It's like a posse,' the tall, curly-haired and engaging Mr. Fagan said. 'There are all these bad guys all over the world, and we have to track them down.'
His mission, he said, is to reach back into history and force a reckoning with those who profited from evil. But an investigation by The New York Times and the ABC News program '20/20' has found that Mr. Fagan is facing his own reckoning.
As he recast himself as a 'human rights' lawyer, Mr. Fagan left neglected personal-injury clients in his wake, abandoning their claims or not returning their phone calls for years, according to court papers and interviews. One former client recently won a malpractice judgment against Mr. Fagan and ethics officials in New Jersey filed a misconduct complaint against him last month on behalf of another client.
Mr. Fagan, so at ease with using the emotional force of the Holocaust as a weapon, also ignored for months scores of calls and letters from aging Nazi-era survivors anxious about whether their claims had been received, said a paralegal who worked last year for him and his partner at the time. That paralegal, Jane Warshaw, was so distressed by what she saw that she wrote in January to the judge handling the Swiss banks case to complain.
'I never expected to witness what I have seen at this office,' she wrote. 'What is happening to these poor, old, injured and neglected people is heartbreaking.'
For his part, Mr. Fagan conceded he may have failed some clients by taking on too much work. But he insisted that he did his best to represent his personal-injury clients and that he labored ceaselessly in the Holocaust cases without financial guarantees, winning results few would have imagined.
'It was remarkable to be a lawyer and to be able to use your profession to do good,' he said. 'To change history. To stand up for people's human rights is incredible, and that's what we did.'
Mr. Fagan's conduct does not appear to have jeopardized the financial claims of his Holocaust clients. In any settlement, they would be eligible for the same compensation as clients of more attentive lawyers. But several survivors he represented say that his failure to return calls for months, even years, took a wrenching emotional toll. Legal-ethics experts say lawyers are obligated to answer client queries within a reasonable period, even in a huge class-action suit.
Mr. Fagan is a frenetic man who appears inseparable from his cell phone. He had hoped to be a rabbi, failed at business and ran a struggling legal practice before he stumbled into the Holocaust litigation and a potential gold mine in legal fees. In the Swiss banks suit alone, he seeks $4 million, the most for any lawyer in the case.
There is little question that Mr. Fagan played a leading role in promoting the Holocaust claims, cases whose moral charge made them a public cause. He specialized in shaming companies and governments, orchestrating demonstrations and prayer vigils. Some Holocaust survivors and advocates view him as their champion.
'He is a master in public relations,' said Hannah Lessing, an official of a state-financed group in Austria for Holocaust victims. 'Behind all the facade of yelling and screaming, there is a man who cares for survivors.'
But he also made it his business, while other lawyers were painstakingly developing legal claims, to be first at the courthouse, gaining leverage with a hasty filing. A news conference with an aged survivor would follow, drawing in a flood of clients.
Mr. Fagan represents far more Holocaust claimants than most other lawyers, giving him a powerful role in negotiations. The actual number of clients is apparently a matter of some confusion. In one interview, Mr. Fagan put the figure at 82,000, but his own lawyer cited a different one -- 52,000 -- in a March response to a client complaint.
Other lawyers in the Holocaust cases say Mr. Fagan's ambitions vastly outstripped his resources to deal with the huge numbers of clients he took on and added that he was often absent for the legal fight. Burt Neuborne, who had worked with Mr. Fagan before breaking with him, said Mr. Fagan's filing in the Swiss banks case was so inadequate that a judge asked him to rewrite it.
'This was an ordinary man who got swept up in issues that were bigger than he was,' said Mr. Neuborne, a law professor at New York University. 'He didn't understand and eventually didn't really know how to behave and just got swept away in the current of his own ego and his own ambition.'
'Here Are Defendants'
Mr. Fagan has said that two pieces of information led him to the Swiss banks case. The first was a 1996 article in The New York Times about Nazi gold and Swiss banks. The other came from a longtime client, Gizella Weisshaus, an Auschwitz survivor who told him of her family's Swiss account.
He recalled: 'I thought, 'Oh, my goodness, I'm a lawyer, here are defendants. I don't know who the plaintiffs are, I don't know who the plaintiffs are going to be, but someone is going to pay.' '
The Swiss banks case would also apparently be the way to satisfy his gnawing hunger for acclaim.
Born in Harlingen, Tex., Mr. Fagan grew up in San Antonio with two brothers and a sister, all from his mother's first marriage. Mr. Fagan's father abandoned the family, said Wayne Fagan, the lawyer's oldest brother. His other brother, Avraham, embraced Orthodox Judaism and Mr. Fagan followed him to Israel.
'I wanted to be a rabbi,' he said.
His religious ardor waned, and Mr. Fagan returned to this country and enrolled in Cardozo Law School in New York, a part of Yeshiva University, graduating in 1980.
He spent several years with a large law firm that represented corporate defendants. But in the late 1980's, Mr. Fagan, searching for something with more panache, tried to start an exploration club for the wealthy. Travelers would sail by yacht to exotic locales, accompanied by ocean scientists and environmentalists. In 1991 he set up the Odyssoe Foundation, a nonprofit arm of the business, to support environmental research. But the whole venture fizzled.
In 1994, soon after returning to law, he rented the entire 21st floor of the former Standard Oil building in lower Manhattan, complete with the original, opulent board room. He tried to support his tiny firm, Fagan & Associates, by subletting space to other lawyers and advertising for personal-injury clients in the yellow pages.
He was eager, however, for the spotlight, trying to interest a tabloid in one case. In 1994, he asserted in a fax to the Star magazine that the actor Sylvester Stallone had tried to defraud a client of his who owned three paintings by Mr. Stallone.
'There has never been been an article of this nature with a celebrity (of this stature) involving fraud and his artwork,' Mr. Fagan wrote, according to papers in a libel suit that Mr. Stallone filed against him in 1994.
The magazine never published the article, and Mr. Stallone withdrew his libel action.
In another case, Mr. Fagan got on television representing a 6-year-old Queens girl who had been stabbed with a hypodermic needle by a homeless man on the subway.
But at the same time, his finances and his business ties were unraveling, public records show. He began to owe large amounts of federal income taxes, a debt he said he has mostly paid off. In 1996, the yellow pages unit of the former Nynex Corporation filed a $228,000 lawsuit against Odyssoe in a New Jersey court for unpaid services like advertisements for his legal practice.
Mr. Fagan said he ordered the advertisements through the nonprofit organization, rather than his law firm, because it was also the billing address of some phone lines at his firm. He said he believed the matter was resolved, but a spokeswoman for Verizon, the successor to Nynex, said the bill was still outstanding.
Faced with an eviction proceeding for unpaid rent, he was forced in 1997 to leave his lavish offices and rent space from a law firm in the World Trade Center.
The acrimony of his professional life spilled over into his closest relations. In the mid 1990's, Mr. Fagan severed ties with his three siblings, said his brother Wayne, a lawyer in San Antonio.
Wayne Fagan said: 'Eddie was a warm, jovial person who was like a pied piper. But something happened and Eddie just changed.'
The Cases Left Behind
With Mr. Fagan's claim against the Swiss banks on behalf of Mrs. Weisshaus and others in late 1996, he embraced a new mission. But the claims of some of his personal-injury clients were apparently abandoned or forgotten.
One was Hector Ortiz. In 1992, Mr. Ortiz, a 49-year-old truck driver, smashed into the back of a slow-moving crane, shattering bones and sustaining head injuries.
In 1994, Mr. Fagan filed a $35 million lawsuit on his behalf in federal court in Brooklyn and brought a similar action in State Supreme Court there. He aggressively pursued the federal claim until late 1996, court papers and interviews indicate.
In 1998, however, Judge Sterling Johnson Jr. of Federal District Court dismissed Mr. Ortiz's federal lawsuit. In doing so, he also noted that Mr. Fagan had 'failed to prosecute' it for three years and had ignored court orders. Mr. Ortiz's claim in Brooklyn state court has lain dormant for three years.
Mr. Fagan said that he had told Mr. Ortiz about a year ago that his federal claim was dead but that he had not yet informed him that the state case also appeared at an end.
Mr. Ortiz, who has not worked since the accident, disputed that account, saying in a phone interview that he had not seen or spoken with Mr. Fagan for more than two and a half years. 'I was waiting in vain,' he said. 'I didn't know something like this could happen. Right now I'm confused. I don't know what to do.'
Another client, Tomas Giron, was struck and severely injured in 1992 by a car reported stolen. Mr. Fagan said that he had made a claim for Mr. Giron to a New York state fund that compensates victims of uninsured motorists but that it had been denied.
Jeffrey Rubinton, the fund's president, though, said in an interview that its records showed that such an action had not been pursued and that the statute of limitations on making one had long expired.
In January, a former client, Offer Salmoni, won a $167,000 malpractice judgment against Mr. Fagan, which the lawyer did not contest. Mr. Fagan had filed a lawsuit on Mr. Salmoni's behalf in 1993 to contest an eviction. Mr. Salmoni charged in a 1998 lawsuit that Mr. Fagan had allowed that claim to be thrown out by repeatedly failing to make court appearances and had let the statute of limitations expire without refiling. Mr. Fagan, who is licensed to practice in New York and New Jersey, said he planned to settle with Mr. Salmoni.
Last month, New Jersey ethics officials, after a preliminary inquiry, filed a misconduct complaint before a grievance committee against Mr. Fagan on behalf of another former client, Diane Gibbons. Ms. Gibbons had complained to the ethics board that Mr. Fagan's failure to file required papers in her personal-injury action led to its dismissal. Mr. Fagan said he could not comment on the matter because it was pending.
Stephen Gillers, a legal-ethics expert at New York University who is not involved in the Holocaust litigation, said lawyers faced sanctions if they ignored existing claims when the prospects of bigger awards beckoned. 'Your loyalty to your original client is undiluted,' Mr. Gillers said.
Some personal-injury clients, whose names were provided to The Times by Mr. Fagan, said that he fought difficult cases for them, and that they would use him again. But Mr. Fagan acknowledged that he failed to withdraw -- as lawyers are required to -- from suits that he did not pursue.
'I was in over my head a lot of the time,' he said. 'But now I'm digging out, for me and for them.'
Unanswered Calls, New Inquiries
By late 1999, with the Holocaust cases on the way to settlement, Mr. Fagan had established his place on the world stage. When Jane Warshaw, a paralegal, was sent by a temporary-help agency to work that fall for him and his then-partner at the World Trade Center, she was thrilled.
'I thought they were doing God's work,' Ms. Warshaw said.
Ms. Warshaw, 57, said that Mr. Fagan's partner at the time, Carey R. D'Avino, asked her to check the office's telephone answering system. On it, she found more than 100 unanswered messages from Holocaust survivors as well as personal-injury clients, including Mr. Ortiz. It sounded like many had been desperately calling for a year or more.
Stacks of unopened letters from Holocaust survivors or their heirs were scattered around or stuffed in a drawer, she said. 'They must have gotten their hopes up and then, there again, they were told that they just didn't matter,' she said.
Ms. Warshaw said she suggested to Mr. D'Avino that she prepare a newsletter to keep clients updated, an accepted practice in class-action suits. The lawyer said he told her that their clients were already getting periodic newsletters. He described her as 'well-meaning' but 'out of the loop.'
In January, troubled by what she viewed as client neglect, Ms. Warshaw sent a recording of those calls to Judge Edward R. Korman of Federal District Court in Brooklyn, who is overseeing the Swiss banks case. She also provided materials to The Times and ABC News.
The picture emerging from the documents and tapes is chaotic. New York disciplinary officials were investigating complaints by three of Mr. Fagan's clients. Calls from Holocaust claimants were bounced from one answering machine to another.
One caller, Bella Ross, said her parents, concentration camp survivors, were ecstatic when Mr. Fagan took their case in 1998. 'They thought, you know, they had this savior,' Ms. Ross said in an interview. 'I mean, this is the man. You saw him on TV. You heard about him on the radio. You see him in print. He is everywhere. It was like finally they were blessed.'
By last year, however, the family was so concerned about Mr. Fagan's lack of response to dozens of messages and faxes that she filed a complaint with New York disciplinary officials. 'To date,' Ms. Ross wrote in December, 'Mr. Fagan has done nothing to update my parents on the status of their case and is literally unreachable.'
Hal R. Lieberman, a lawyer representing Mr. Fagan in the matter, told investigators in a March letter responding to Ms. Ross's complaint that Mr. Fagan could not possibly deal with each of his tens of thousands of clients. Both Mr. D'Avino and Mr. Fagan said in interviews that they had met their ethical obligations to their clients; to date, there have been no findings against them.
Other Holocaust lawyers, though, were devoting more extensive resources to client communication. While some used paralegals to handle calls, Mr. Neubourne, the New York University professor, said he set aside four hours a week to deal directly with survivors, including many of Mr. Fagan's clients who called him out of frustration.
'These are people who lived with these memories for so long,' Mr. Neubourne said. 'The memories were then opened up, somebody told them something was going to happen. And then they just got cut off.'
Some clients said Mr. Fagan returned phone calls promptly and others involved in Holocaust-related issues said they also had had far happier experiences with him. They described him as a passionate advocate who took up a fight that traditional Jewish groups had allowed to languish.
'Ed was the only true source of light,' said Dr. Thomas Weiss, an ophthalmologist in Miami Beach active in Nazi-era claims against insurers. 'He saw himself as picked by Providence to lead this charge.'
For his part, Mr. Fagan described Ms. Warshaw as a 'disgruntled former employee,' though he conceded that some of her concerns were legitimate.
He said he spent much of his time in recent years traveling and that only a few clients had complained. 'The truth of the matter is that some people are going to be unhappy,' he said.
Ms. Warshaw's complaint was referred to court officials, and Mr. D'Avino said that an investigator contacted him. Mr. Fagan said an assistant was hired in June to answer calls, resolving the matter.
A court official said the existence of an inquiry would not be confirmed or denied until a judge issued a ruling.
Haggling at the Top
In July, Mr. Fagan arrived in Berlin as part of a victory lap in two of the most significant cases. To settle slave-labor claims against German industry, the government and companies there had approved a $5 billion fund to compensate Nazi-era survivors. Not long after, Judge Korman in Brooklyn approved the $1.25 billion settlement of the Swiss banks case.
Mr. Fagan savored the moment, joining government officials, industry leaders and the heads of Jewish groups at the signing of the German agreement. 'I know for a fact that the majority of these cases wouldn't have happened without me,' he said. 'That's not bravado, it's just a fact.'
During the signing, though, Mr. Fagan dickered by cell phone with Stuart E. Eizenstat, the United States deputy treasury secretary, about lawyers' fees and oth