COVINGTON — Two Lexington-area lawyers accused of taking millions of dollars from their former clients in a diet drug settlement pleaded not guilty Thursday to eight new charges of wire fraud.
Last week, a federal grand jury indicted William Gallion and Shirley Cunningham Jr. on charges of conspiracy and eight new charges of wire fraud.
Shirley Cunningham Jr. (left), William Gallion (right)
The men were charged in 2007 with one count each of conspiracy to commit wire fraud.
The two men were arraigned on the new charges Thursday morning in U.S. District Court.
Gallion signed paperwork for a $2.5 million property bond. He was released Thursday afternoon. Cunningham already had been released. Cunningham already had been released.
U.S. District Judge Danny Reeves set a trial date for Nov. 17.
A mistrial was declared in their first trial, in July, after a jury could not decide whether Gallion and Cunningham were guilty of conspiracy to commit wire fraud.
Gallion, Cunningham and a third lawyer, Melbourne Mills Jr., were charged with one count each of conspiracy to commit wire fraud in 2007.
A jury acquitted Mills of all charges in July. Cunningham was released from the Boone County Jail on bond on Aug. 27.
The lawyers sued fen-phen maker American Home Products in Boone Circuit Court and settled the case for $200 million in 2001. Federal prosecutors say Gallion and Cunningham took $94 million — an increase of nearly $30 million from the previous indictment — that should have gone to 440 former clients, according to the indictment.
The indictment outlines a series of monetary transactions between Cunningham’s and Gallion’s bank accounts and accounts designated solely for client money.
If convicted, Gallion and Cunningham could face a maximum of 180 years in prison. However, it is rare for someone to get the maximum sentence.
I hope they put them under the jail, and toss the key.
Everyone in the U.S. of America is presumed innocent until and unless proven different by a jury—not a blogger (sorry, but it’s true). This is one of the great liberties we as citizens of the Unites States have. Everyone, everyone, is entitled to a fair trial whether you or anyone else likes it or not!
In response to Jay NO JOKE about the fair trial crap. I guess they didn’t steal your money oh maybe you were one of the jury members that could not figure out if they were guilty or not guilty at the previous trial. It dosen’t take a rock scientist to figure this one out!!!!
You know what really sucks is that when my mom was dying because of these diet pills these attorneys kept telling her that they were taking good care of her case. My mom passed away towards the end of 2000, William Gallion repeatedly told my family that the manufacturer was going to pay for what their pills had done to my mother. In the early summer of 2001, we were called and told to meet at the law offices of William Gallion. During that meeting we were presented with a check for far less than what Gallion had told my mother weeks before she passed away that she should expect, he had even told the rest of my family that during the early part of 2001. We were told we could never speak of this check, and that we were never to acknowledge where any money came from. We were told that if it was ever told we would have to repay money and that we would be imprisoned. In the spring of 2002 we were again summoned to Gallions law office and were presented with another check. The total of both checks was still about 10 times less than what we were all told. It was said that this was money that was left over after all the money had been disbursed to all the clients. We were also told that there would be a small amount of change left over when this second round of disbursements were through, and would we mind to donate it to a worthy charity. Imagine our surprise when after all the facts come to light in the case that small amount of change was 20 million dollars, and that worthy charity was one that the attorneys and the judge presiding over our case had established and appointed themselves to the board of directors. No matter how one looks at this case I don’t see how anyone could say that these dirty attorneys are not guilty. I would gladly view back every possession that I have to be able to spend one more day with my mom. She was an awesome person with a heart of gold. It kills me to think that these cowardly men know that they are truly guilty and they are refusing to own up to their actions. My mom passed away thinking that these attorneys would get justice for her, little did she know they were planning one of the worst most infamous cases of stealing in Kentucky history. So Jay no matter what you say, we the plaintiffs in this case know beyond a shadow on a doubt that these men are in fact guilty. It’s sad to think that there has to be another costly trial because the previous jury could not evidently see the facts of this case or were just too stupid to understand them. I know that one day soon these men will have to stand before god just as the rest of us will, and they will have to answer for their actions and their thievery over the last 8 years.