Baker & McKenzie has forced New York corporate partner Martin Weisberg to resign after he was charged with participating in a $55m (£26.83m) fraud and money laundering operation.

In a statement the firm said it had requested and received Weisberg’s resignation, adding: “Effective immediately, he is no longer associated with our firm in any capacity.”

Last Friday (26 October) Weisberg was indicted by federal prosecutors and the US Securities and Exchange Commission and turned himself in on Monday. He paid a $1.5m (£0.73m) bond.

The corporate lawyer is accused of helping cover up a number of private investments made in companies Ramp and Xybernaut. According to the charges, Weisberg and three former executives from the companies did not disclose the discounted stock sales they made to two investors based in Israel. The investors later sold the stocks short, allegedly paying kickbacks from their profits to the defendants.

Weisberg was reportedly tried and acquitted on similar charges in 1991 in Texas. At that time he was accused of participating in a Ponzi scheme involving the Mexican peso.