JACKSON – Federal jurors convicted Vicksburg attorney Robert Arledge Friday of seven counts of mail and wire fraud and conspiracy and acquitted him of 17 counts of money-laundering.

U.S. District Judge David Bramlette said he will sentence Arledge Aug. 6 in Jackson. He faces a maximum of five years in prison on each count, plus fines of up to $250,000. Bramlette allowed Arledge to remain free on $50,000 bond.

The jury of seven women and five men returned a verdict in six hours. It came after eight days of testimony from more than a dozen government witnesses.

The defense did not call anyone to the stand.

Arledge was accused in a May 26 indictment charging 34 counts of mail and wire fraud, conspiracy and money-laundering. But 10 of the money-laundering counts were withdrawn, and Bramlette had ordered jurors to ignore evidence and testimony on those charges.

Following the verdict, lead defense attorney Karl Koch of Baton Rouge said the jury made a bad decision.

&#8220I’m disappointed with the verdict,” he said. &#8220While we believe in the system, it produced an incorrect result. We look forward to the appeal.”

Arledge surrendered to federal authorities in Jackson May 29, four days after FBI agents raided his home while he was away.

Prosecution witnesses have included people who have pleaded guilty to receiving settlements from the fund based on falsified claims. The defense’s position has been that Arledge didn’t know the information was false and that prosecutors have failed to prove that he did.

Arledge’s attorneys maintain he had no &#8220financial incentive” to knowingly file false fen-phen claims since he had already made millions in litigation. Furthermore, they’ve argued, others who have testified for the government and who have been convicted and sentenced for fraud or conspiracy acted independently of Arledge.

While working for the Jackson law firm Schwartz & Associates, Arledge was part of a group of attorneys in 1999 that entered agreements allowing fee allocations, assigning responsibilities during fen-phen litigation and fixing percentages owed to them for each claim processed and approved. The attorneys called themselves &#8220the cartel,” the government has said. Arledge was the only attorney charged.

The group was formed after Houston attorney Mike Gallagher represented five plaintiffs in their lawsuit filed in Jefferson County against AHP, now Wyeth Pharmaceutical. A jury found the manufacturer liable for heart conditions suffered by the plaintiffs who took Promidin and Redux, combined to treat obesity, and AHP was ordered to pay $150 million to the victims. The drugs were pulled from the market in 1997 after research revealed they could cause heart problems.

That’s when a $399 million trust fund, called &#8220fen-phen I,” was created so AHP could settle &#8220an inventory of cases,” Gallagher said. Later, a second trust, tabbed fen-phen II, was opened when another lawsuit was filed in Jones County against AHP.

To receive settlements, plaintiffs were required to show they had been prescribed Pondimin or Redux, and they were awarded different cash amounts, up to $250,000, depending on the extent of their medical conditions and the proof submitted to support their claims.

For his work, Gallagher received $57 million over three years in fen-phen litigation, he told jurors. Meanwhile, Arledge and Richard Schwartz were paid about $8 million for their fen-phen work, according to a written agreement promising the two about $4 million each &#8220for their contributions,” Gallagher testified.

The government is seeking forfeiture of about $8 million in assets, the amount he’s accused of obtaining through claims he knew were false.

Attorneys and other witnesses involved in helping process fen-phen claims have testified many claims originating from Schwartz & Associates appeared to have been fake, but that they could not prove Arledge was involved in the scheme to fraudulently collect fen-phen money.

In 2002, Arledge made an unsuccessful run for the judgeship of Warren County Court and Youth Court. He subsequently sought the job of prosecuting attorney for Warren County, first by gubernatorial appointment and then as a candidate for election. He did not receive the appointment and withdrew his candidacy before the election.