New suit filed stemming from SC economist's fraud

CHARLESTON, S.C. (AP) - Another lawsuit has been filed stemming from the $66 million Ponzi scheme run by a South Carolina economist.

Motley Rice law firm has sued Robert Pearlman, a Mount Pleasant attorney who represented Al Parish. The class action filing represents anyone who lost more than $100.

The suit alleges Pearlman was negligent in helping Parish write a letter to the state attorney general saying Parish did not receive any commissions from his investment pools.

Pearlman calls the suit nonsense and says as an estate lawyer, all he worked on were wills and trusts for Parish.

Nearly 500 people lost money in the scheme run by Parish. He was sentenced two years ago to 24 years in prison. Investors are recovering only about $9 million of the $66 million lost.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.