This news article in Law.Com reports on the Pan Am v. Sheppard Mullin law suit:

"According to the complaint, Nadolny had forged a $320,000 bond meant to secure a settlement Pan Am had reached with the Air Line Pilots Association. When inspectors from the bond company came calling, Nadolny turned to attorneys at Sheppard Mullin, including John Fornaciari, a partner and white-collar defense attorney at the firm, for advice on how to best handle the insurance company’s investigation. Nadolny had worked with Fornaciari in the past on Pan Am-related litigation in New England and in Florida.

Sheppard Mullin agreed to take Nadolny on as a client, but here’s the interesting part: For several months it allegedly didn’t inform Pan Am that it had done so, nor did it alert Pan Am to the problem with the pending bond. Pan Am alleges that this clandestine relationship resulted in damage to the company’s reputation and a snarled Transportation Department proceeding that has remained stalled for two years.

And the bond, which Nadolny conjured out of thin air complete with a forged signature, wasn’t the only misdeed involved. The former Pan Am senior vice president and general counsel pleaded guilty in late March in the U.S. District Court of New Hampshire to providing false financial information to the Transportation Department and was sentenced last week to six months in a federal prison. "