Federal Grand Jury Indicts Austin Lawyer in Connection with South Texas Bribery Scheme
Austin-Based Law Firm Rosenthal & Watson Is Named in the Indictment as an Alleged RICO Enterprise

United States Attorney John E. Murphy; Special Agent in Charge Cory B. Nelson, Federal Bureau of Investigation, San Antonio Division; Acting Special Agent in Charge Thomas E. Hinojosa, Drug Enforcement Administration, Houston Field Division; and Brownsville Police Chief Carlos Garcia announced that 49-year-old Marc Garrett Rosenthal, a principal in the law firm of Rosenthal & Watson in Austin, faces federal charges of conspiring to bribe a State District Judge, bribe witnesses in both state and federal court cases, file fraudulent personal injury cases in both state and federal courts, and deprive the citizens of Cameron County, Texas, of the right to honest services of an elected official.

A 13-count indictment, returned on August 16, 2011, and unsealed by U.S. Magistrate Judge Felix Recio in Brownsville today, alleges that from November 2005 until December 2009, Rosenthal and others, including 404th Judicial District Court Judge Abel Corral Limas and former state legislator and attorney Jose Santiago “Jim” Solis, participated in a scheme in which Rosenthal directly, or facilitated by Solis, paid money and other considerations to Limas which resulted in favorable court rulings for Rosenthal & Watson clients.

The indictment also alleges that Rosenthal directed others to pay certain individuals, including funeral home directors and a public employee, for the referral of plaintiff’s personal injury cases; make arrangements to manipulate the random case assignment system at the Cameron County District Clerk’s Office so that cases were filed in Courts preferred by Rosenthal & Watson; and, pay witnesses to provide false testimony and statements.

In all, Rosenthal is charged with one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; five counts of mail fraud; three counts of tampering with witnesses or proceedings; one count of extortion; and, three counts of mail fraud, aiding and abetting and deprivation of honest services. The indictment also includes a notice of criminal forfeiture whereby the government is seeking approximately $6 million in proceeds derived from the alleged criminal activity.

Rosenthal surrendered to federal authorities earlier today in Brownsville. During today’s initial appearance, Judge Recio set bond at $100,000 (10 percent secured). Jury selection is scheduled for October 6, 2011, before U.S. District Judge Andrew Hanen. Upon conviction,

Rosenthal faces up to 20 years in federal prison per count.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.

This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration and the Brownsville Police Department. Southern District of Texas Assistant United States Attorneys Michael Wynne and Oscar Ponce are prosecuting this case on behalf of the government.