Charles Schwab Files Libel, Defamation Lawsuits against Beverly Hills Law Firm for Bogus Websites

Law Firm Steiner & Libo, Partner Leonard Steiner, Plaintiff Nicholas Behunin Sued by Charles Schwab Family For Libel

San Francisco-The Los Angeles law firm Steiner & Libo and one of its clients is being sued for defamation and libel for creating bogus websites as part of a plot to extract money from the family of respected investment advisor Charles R. Schwab, according to lawsuits filed today in Superior Court.

Legal complaints from Charles R. Schwab and his son Michael Schwab were filed against Steiner & Libo, partner Leonard Steiner, and plaintiff Nicholas Behunin of Los Angeles, Calif.

The lawsuits claims the law firm and its client knowingly made false claims on defamatory websites to purposely harm the reputation of the Schwab family in retaliation for not settling a lawsuit, which itself was an effort to shakedown the family.

The Charles R. Schwab lawsuit alleges the sites were “a tool for the extortion of Schwab” by creating the false impression that Mr. Schwab, his son, and family did business with a brutal dictator.

The defamatory sites state that Mr. Schwab sought to do business with the family of the late Indonesian dictator Suharto and his son Tommy Suharto, a convicted murderer. The sites advertise that Mr. Schwab can provide advice to investors on “how to profit from a brutal dictator” and methods to “launder money overseas.”

The Schwab lawsuits unequivocally state that neither Mr. Schwab nor his son Michael ever met President Suharto or Tommy Suharto or had any business dealings with them.

“The only reason to create these fraudulent websites was to besmirch the good name and reputation of Charles R. Schwab and his son Michael. Not one claim on the landing page of the site is true or correct and the guilty parties were aware of that prior to making the defamatory statements,” said attorney Robert R. Moore of the law firm of Allen Matkins, representing Charles R. Schwab.

The lawsuit claims “In sum, (Leonard) Steiner (Steiner & Libo and Nicholas Behunin) used the Websites as a tool for the extortion of Schwab.  The Website’s clear objective was, and is, to publicly embarrass and shame Schwab and then to leverage that public embarrassment into litigation advantage in Behunin’s lawsuit against Schwab.”

“The Defendants agreed to a scheme that included providing false and defamatory information to third parties who would post articles or blogs on the internet repeating the false and defamatory statements provided to them by Defendants…creating the impression that the false statements on the websites had been independently corroborated by the third-party posters,” according the lawsuit by Michael Schwab filed by his attorney David H. Schwartz.

Schwartz pointed to a false and defamatory story by HuffingtonPost.com blogger Bruce Fein entitled “Does This Schwab Charity Satisfy the IRS Perfume Test?<http://www.huffingtonpost.com/bruce-fein/does-this-schwab-charity-_b_5978502.html>” which is based on the libelous and defamatory statements from the bogus websites.

The Schwab’s attorneys said the bogus websites were posted after they refused to pay $25 million to Nicholas Behunin, who, through his attorney Leonard Steiner, threatened to sue unless the payment was made.   When no payment was made, Behunin sued the Schwabs on May 28, 2014, to recover his purported ownership interest in a real estate development venture with Michael Schwab. (The case is Sealutions LLC et al. case number BC546925, in the Superior Court of the State of California for the County of Los Angeles).

“The only purpose and intent of this scheme was to force a settlement through the implicit threat that Defendants would continue to disseminate such false and defamatory statements to the public unless and until Plaintiff and/or his father agreed to a settlement of the pending action,” according to the suit by Michael Schwab.

The Schwab legal filings claim that they initially contacted attorney Steiner in early October to inquire if he or his client was responsible for the websites. Steiner told them he had no knowledge of the sites, according the lawsuits.  The websites were registered anonymously. After further investigation, the Schwab’s attorneys found the sites were registered to Levick Strategic Communications public relations.  Later, after notifying attorney Steiner again, he still denied knowledge of them. After that contact with Steiner, the Schwab lawsuit says, the website was changed to include the name of Steiner & Libo law firm. In the past few days, the firm removed its name and now the site lists its owner as: N. Behunin.

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