Federal charge against Bernhard could imply settlement has been reached, attorney says

The single count of wire fraud filed Tuesday in a bill of information by the U.S. Attorney’s Office against James M. “Tres” Bernhard III suggests the former attorney and son of The Shaw Group Inc. Chairman Jim Bernhard has been negotiating with federal prosecutors and has reached a settlement agreement. So says attorney Mary Olive Pierson, who referred the case to the feds earlier this year and cooperated in the criminal investigation. “I knew Mr. Bernhard and his attorneys were in discussion with the U.S. Attorney’s Office, and obviously they have reached some sort of agreement,” she says. “That is obvious because it’s a bill of information, which means he waived indictment and then will go before the court at a later date and announce whatever plea agreement has been made.” Pierson filed a civil suit against Tres Bernhard earlier this year on behalf of her client, Crawford Lewis, a law firm for which Bernhard was working. That suit alleged Bernhard misappropriated client and law firm funds to settle his personal debts, and also that he sold invalid movie tax credits to third parties. Crawford Lewis settled the suit with Bernhard in July; meanwhile, Bernhard has permanently surrendered his license to practice law. “They’re not jumping for joy over at Crawford Lewis,” says Pierson. “This doesn’t do anything to make them happy, but at least this will bring some sort of closure to this whole episode.” Numerous calls to Tres Bernhard’s local attorney, David Dugas, and Dallas lawyer, Michael Villa, were not returned. —Stephanie Riegel