Weather | Traffic | Surf | Maps | Webcam


   
 
Forums Visitors Guide Shopping Classifieds Autos Homes Jobs Entertainment Sports Today's Paper Home

 News
 Metro | Latest News
 North County
 Temecula/Riverside
 Tijuana/Border
 California
 Nation
 Mexico
 World
 Obituaries
 Today's Paper
 AP Headlines
 Business
 Technology
 Biotech
 Markets
 In Depth
 Iraq / Afghanistan
 Pension Crisis
 Special Reports
 Video
 Multimedia
 Photo Galleries
 Topics
 Education
 Features
 Health | Fitness
 Military
 Politics
 Science
 Solutions
 Opinion
 Columnists
 Steve Breen
 Forums
 Weblogs
 Communities
 U-T South County
 U-T East County
 Solutions
 Calendar
 Just Fix It
 Services
 Weather
 Traffic
 Surf Report
 Archives
 E-mail Newsletters
 Wireless | RSS
 Noticias en Enlace
 Internet Access


Seen your credit card limit cut? Been turned down for an auto loan? Let us know how the credit crunch is affecting you. Call Jennifer Davies at 619-293-1373 or email her.

 Sponsored Links

Mistrial declared for 2 lawyers in Ky. fraud case

ASSOCIATED PRESS

11:33 a.m. July 3, 2008

COVINGTON, Ky. – A judge declared a mistrial Thursday in the case of two lawyers charged with defrauding clients of $65 million in a diet-drug settlement after jurors said they could not reach a verdict.

The jury had considered the case against suspended lawyers William Gallion and Shirley Cunningham Jr. for eight days. A third defendant, Melbourne Mills Jr., was acquitted earlier this week. All faced a single charge of conspiracy to commit wire fraud.

The case has been closely watched in the horse racing industry because Gallion and Cunningham are part-owners of 2007's Horse of the Year, Curlin. They have since sold an 80 percent share of the horse.

Attorneys for Cunningham and Gallion asked U.S. District Judge William O. Bertelsman to free the two men pending a new trial, but Bertelsman ordered them back to jail.

“The weight of the evidence is strong, nothing has changed in my mind,” Bertelsman said. “The risk to flee is even greater in my mind.”

Gallion's lawyer, O. Hale Almand, called the mistrial a disappointment.

“We think the evidence is very clear,” he said.

The lawyers were accused of keeping millions of dollars that should have gone to plaintiffs in a $200 million settlement of a class-action lawsuit over the diet drug fen-phen, which was recalled after some studies indicated it could cause heart damage.

Prosecutors said in closing arguments last week that the lawyers were motivated by greed when they took a $127 million payment when they should have been paid $60 million. Defense attorneys said the lawyers didn't commit any crimes and any mistakes in the settlement were unintentional.


 Sponsored Links







Quicklinks
Restaurants Bars
Hotels Autos
Shopping Health
Eldercare Singles
Business Listings
Free Newsletters


Guides
Vegas Spas/Salon
Travel Weddings
Wine Old Town
Baja Catering
Casino Home Imp.
Golf SD North
Gaslamp


© Copyright 1995-2008 Union-Tribune Publishing Co. • A Copley Newspaper Site