Loughlin, spouse get OK to use law firm

By Associated Press

U.S. Magistrate Judge M. Page Kelley ruled that actress Lori Loughlin and her fashion designer husband, Mossimo Giannulli, can continue to use Los Angeles-based Latham & Watkins, which recently represented the University of Southern California, an alleged victim in the sweeping college admissions bribery case.

But Kelley declined to rule on a different potential conflict of interest in the couple’s legal representation and said she would decide later, calling it more serious.

Giannulli and Loughlin mostly sat quietly through the brief proceedings. They spoke up only to answer a series of short questions from the judge, acknowledging they each understood the legal risk of retaining the firm and the risks of being represented by the same firm. Neither commented after the hearing.

The couple are accused of paying $500,000 to have their two daughters labeled as recruits to the USC crew team, even though neither participated in the sport. They have pleaded not guilty to charges of conspiracy to commit fraud and money laundering.

Lawyers for Latham & Watkins said it represented USC in an unrelated real estate case that had been handled by different attorneys.

Prosecutors had argued that retaining the firm could pose a serious conflict, especially if the firm’s lawyers questioned USC officials at trial or gathered information from the university during the case’s discovery phase.

Assistant U.S. Attorney Eric S. Rosen argued there is a potentially greater conflict with Giannulli’s additional counsel from the Boston firm Donnelly, Conroy & Gelhaar.

The firm represents Davina Isackson, who, along with her husband, California real estate developer Bruce Isackson, has pleaded guilty to paying $600,000 in shares of stock to get their daughters into USC and the University of California Los Angeles.

George W. Vien, an attorney for the firm, said it is prepared to take steps to prevent conflicts of interest, such as not cross-examining Isackson in the unlikely event she is asked to testify in Giannulli’s case.

Kelley said she would decide later on that potential conflict.

“This is the situation where judges most often remove lawyers from cases, if they are representing someone who is cooperating against another person,” Kelley told Giannulli.