A former partner with a prestigious New York law firm that made an estimated $250 million by filing class action lawsuits against some of America's largest corporations has pleaded guilty to a racketeering conspiracy charge.

Steven Schulman was charged in Los Angeles as part of a seven-year investigation into allegations that kickbacks were paid to people who agreed to be claimants in class action suits handled by the firm now known as Milberg Weiss.

The investigation has led to indictments and guilty pleas by several former partners and lawyers at the firm previously known as Milberg Weiss Bershad & Schulman.

Schulman, 56, entered his plea in US District Court after reaching an agreement with prosecutors last month to forfeit $1.85 million to the government and to pay a $250,000 fine.

Asked by U.S. District Court Judge John Walter whether he did what the government alleged, Schulman responded, "Yes, I did."

The charge could carry up to 20 years in prison, but the plea deal recommends the judge order a sentence of no more than 33 months.

Walter, in accepting the plea, noted the court had the discretion to impose a sentence that could be harsher than the penalty recommended in the agreement. Sentencing was scheduled for June 23.

Both Schulman and his attorney declined to comment after the hearing.

Last month, Melvyn Weiss, the firm's co-founder, was indicted on two counts of conspiracy and one count each of obstruction of justice and making false statements in relation to documents that were the subject of a grand jury subpoena.

His initial court appearance is scheduled for Friday. He could face up to 40 years in federal prison. His lawyer has said he will be exonerated.

In addition, prosecutors have said William Lerach, a former top attorney with Milberg Weiss, agreed to plead guilty to conspiring to obstruct justice and making false statements under oath.

Lerach, who is awaiting arraignment, will forfeit $7.75 million to the government, pay a $250,000 fine and accept a sentence ranging from one year to two years in federal prison, prosecutors said.

He resigned last month from the firm he founded in San Diego, now known as Coughlin Stoia Geller Rudman & Robbins.

Former Milberg Weiss partner David Bershad pleaded guilty to conspiracy and agreed to cooperate with the government. He will be sentenced early next year.

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