COVINGTON, Ky. -- Cincinnati attorney Stan Chesley finished testifying yesterday in Kentucky's fen-phen case, concluding two days of damaging testimony against three lawyers charged with defrauding their clients by taking $65 million more than they were due.
OAS_AD('ArticleFlex_1');
"We are astonished the defense would call Mr. Chesley in their case, because they knew his testimony would severely damage their clients," said Scott C. Cox, an attorney for Chesley, in an interview after the testimony had ended.
Chesley, who negotiated the settlement in 2001 and testified with immunity from prosecution, was one of the last defense witnesses called in the federal fraud case against lawyers William Gallion, Shirley Cunningham Jr. and Melbourne Mills Jr.
Nearly six weeks after the trial started, the defense finished its case yesterday and prosecutors will be done early today. The federal jury will hear closing arguments Monday and could begin deliberating later that day or early Tuesday.
The defendants are charged with conspiracy to commit wire fraud for taking $98 million from the settlement -- allegedly $65 million more than allowed under contracts with their 431 clients who claimed they were harmed by fen-phen, a diet-drug combination pulled from the market in 1997. They could be sentenced to 20 years in prison if they are convicted
The defense closed without the testimony of Mills, who was supposed to testify yesterday but decided against it on the advice of his attorneys.
Mills, 77, has said he had no role in negotiating the settlement and that he was drinking a fifth of bourbon a day at the time. Mills broke with the other two defendants more than a year ago.
In court records, he has said the other defendants lied when they initially told him the $200 million settlement was for $150 million.
Gallion has testified that his associate, David Helmers, was supposed to tell Mills about the additional $50 million. But yesterday, Helmers testified that he was never told to speak with Mills and was, in fact, directed to not discuss the settlement.
Helmers testified that Gallion "said he told Mills about the $200 million" and that if Mills didn't remember, he must have forgotten or been impaired.
Helmers also said he had "no recollection" of an e-mail the defense claimed he had sent to Gallion about speaking with Mills.
Lawyers for all three men have blamed mistakes in the case on Chesley, who testified again yesterday that the plaintiffs should have been paid more money.
The defense continued to try to make Chesley look dishonest, bringing in witnesses yesterday to testify that he had appeared at a February 2006 hearing on the creation of a charitable fund in which $20 million of the $200 million settlement was placed.
Chesley, who himself was paid more than $20 million, had testified that he did not recall attending the meeting.
An attorney representing Cunningham and Gallion in a civil suit in the case testified that Chesley had told her he would be "the best witness" for the three defendants -- before he was given immunity.
Reporter Jason Riley can be reached at (502) 582-4727 .
Labels
- Civil Society (478)
- Liar's Poker by Michael Lewis (342)
- Hot Air (327)
- Heating Degree Days (160)
- Good Writing (153)
- natural gas (148)
- Deregulation of Electricity (139)
- Cramer Yesterday (134)
- Paul Krugman (128)
- Masters of the Universe (102)
- baselinescenerio.com (101)
- Countrywide (95)
- madoff (88)
- tech tips (76)
- aggregation (72)
- health care (63)
- trading again (63)
- Saakashvilli (59)
- Duke Energy (58)
- Trading Natural Gas and Other Futures and Derivatives (58)
- bailout (55)
- friedman (53)
- David Brooks (52)
- e-bills (52)
- Not Hot Air (51)
- simon johnson (50)
- Home Buyer (45)
- goldman sachs. (45)
- Leverage (43)
- Bear Stearns (39)
- Gretchen Morgenson (36)
- aig (36)
- herbert (35)
- real estate (33)
- GE (29)
- derivatives (29)
- Cramer Today (28)
- confessions of a pattern day-trader (28)
- gs (28)
- 885 Greenville (27)
- etf's (27)
- brooks (26)
- CNBC Today (25)
- Crash of 1987 (24)
- Rush Limbaugh (24)
- rich (23)
- How to Read This Blog (22)
- saackashvili (22)
- crash now (21)
- Clarence Thomas (20)
- kristoff (20)
- Nocera (19)
- William F. Buckley Jr. (18)
- cohen (17)
- credit default swaps (17)
- dowd (17)
- lehman (17)
- The Big Short by Michael Lewis (16)
- citicorp (16)
- hedge funds (16)
- obama (16)
- Charlie Rose (15)
- collins (15)
- cramer last night (15)
- globe_mail (15)
- banks (14)
- dreier (14)
- flynn's oil (14)
- georgia (14)
- kristol (14)
- Banc of America (13)
- Cramer and October 8 (13)
- Gold (13)
- Jimmy Rogers (13)
- The Current Stock Market and Reporting Therein (13)
- Warren Buffett (13)
- geithner (13)
- Bill Gross (12)
- Norris (12)
- Value of Diversification (12)
- c (12)
- fifth third (12)
- stimulus plan (12)
- American Energy (11)
- Auchincloss (11)
- bill moyers (11)
- david f swensen (11)
- humor (11)
- margaret wente (11)
- nakedshorts (11)
- pattern day trader (11)
- Ah Enron (10)
- alternative investments (10)
- yale (10)
- Energy Savings for Residential Home (9)
- Paulson (9)
- aig.credit default swaps (9)
- bond funds (9)
- investment advisors (9)
- realtors(R) (9)
- toxic (9)
- Misleading CNBC Ads (8)
- Why I Was Too Busy (8)
- canada (8)
- carlos celdran (8)
- consuelo mack (8)
- dead_of_winter (8)
- fifth_third (8)
- jp morgan (8)
- larry summers (8)
- morgan stanley (8)
- rubin (8)
- wolfe (8)
- Amaranth (7)
- Barefoot Advertising (7)
- Cooling Degree Days (7)
- Glengarry (7)
- Judge Cudahy (7)
- No Hot Air smart grid (7)
- Weakening Dollar (7)
- james kwak (7)
- pogue (7)
- reflects (7)
- symmes township (7)
- what we learn when special people die (7)
- Municipality Bankruptcies (6)
- Notary Signing Agents (6)
- Private Equity (6)
- andrew ross serkin (6)
- bogle of vanguard (6)
- civil rights (6)
- fannie and freddie (6)
- gm (6)
- health (6)
- italy (6)
- keynes (6)
- mortgage brokers (6)
- stan chesley (6)
- susan boyle (6)
- volker (6)
- ; CNBC Today (5)
- Actual Laurel and Greenville (5)
- Cost Per Megawatt (5)
- Deregulation (5)
- Judith Warner (5)
- Merrill Lynch (5)
- Phil Gramm (5)
- The Dollar (5)
- auction rate securities (5)
- bonds (5)
- cramer's crash checklist 2010 (5)
- credit cards (5)
- dan gearino (5)
- dominion (5)
- dulley (5)
- high frequency trading (5)
- iou (5)
- iran (5)
- john lanchester (5)
- joseph cassano (5)
- kesselschlacht (5)
- libor (5)
- mybesttime (5)
- natural gas is not like oil (5)
- palin (5)
- philippines (5)
- sec (5)
- stanford (5)
- ted kennedy (5)
- Gail Collins (4)
- Hunter S. Thompson (4)
- Si burick (4)
- US Dollar (4)
- art cashin (4)
- blow (4)
- buffett (4)
- don marshall (4)
- dwell (4)
- economics (4)
- finances (4)
- fraud (4)
- green township (4)
- grisham (4)
- harry markopolos (4)
- heating oil (4)
- hillary (4)
- investment banks (4)
- john c bogle (4)
- pajama traders (4)
- rider fpp (4)
- soros. friedman (4)
- sotomayor (4)
- subprime meltdown (4)
- supreme court (4)
- tarp (4)
- where we live out lives (4)
- 1998 (3)
- 970 laurel (3)
- Fiscal Stimulous (3)
- Paul Newman (3)
- Reich (3)
- The Associate (3)
- Thomas Frank (3)
- What a Ride Ye Gave Thee Shareholders (3)
- ackman (3)
- bp (3)
- burry (3)
- calvin trillin (3)
- carlos slim. masters of the universe (3)
- cdo (3)
- cds's (3)
- checklist (3)
- christopher buckley (3)
- collapse (3)
- commodities (3)
- david muth (3)
- doug worple (3)
- duhigg (3)
- duke energy retail sales llc (3)
- elizabeth warren (3)
- euro (3)
- flash crash (3)
- g-20 (3)
- glendale (3)
- goolsbee (3)
- gs; Liar's Poker by Michael Lewis (3)
- gs; goldman sachs. (3)
- hank greenberg (3)
- institutional investor (3)
- insurance companies (3)
- law firms (3)
- manila (3)
- mcnees (3)
- meredith whitney (3)
- middle east (3)
- movies (3)
- new yorker (3)
- option arms (3)
- paul daugherty (3)
- procter (3)
- reagan (3)
- ritchard posner (3)
- steve martin (3)
- stimulous plan (3)
- terrorism (3)
- toqueville (3)
- trust (3)
- wendell potter (3)
- words (3)
- Bernie schaeffer (2)
- Buddy (2)
- Editor's Selection (2)
- Frank DeFord (2)
- Gasparino (2)
- George Vecsey (2)
- Geothermal (2)
- God (2)
- Greenspan (2)
- Latest Carry Trade (2)
- Railroads (2)
- Remnick (2)
- Rich.reflects (2)
- Spitzer (2)
- The Very Crux (2)
- Wachovia (2)
- Weather Futures (2)
- a heddgie (2)
- abacus (2)
- aep (2)
- andreww ross serkin (2)
- arthur nadel (2)
- auto task force (2)
- barcelona (2)
- barrons (2)
- barton (2)
- bernanke (2)
- beth smith (2)
- biden (2)
- bill black (2)
- black swan (2)
- blood pressure (2)
- bridge (2)
- brooks-Simon (2)
- bruce abel (2)
- bubbles (2)
- cheever (2)
- chris dodd (2)
- christopher walken (2)
- community reinvestment act (2)
- corporate bonds (2)
- cramer's list (2)
- crash of 1929 (2)
- crash of 2:45 p.m. (2)
- cursing mommy (2)
- daugherty (2)
- donttrythisonyourhome.blogspot.com (2)
- duk (2)
- economix (2)
- entrepreneur (2)
- eu (2)
- fasb (2)
- fast money last night (2)
- financial advisors (2)
- financial crisis inquiry commission (2)
- fool's gold (2)
- glanville (2)
- glass-steagall (2)
- guessing cramer (2)
- hal mcCoy (2)
- house of cards (2)
- hugh laury (2)
- ian frazier (2)
- imf (2)
- immelt (2)
- indymac (2)
- iolta (2)
- jamie dimon (2)
- jimmy cayne (2)
- john mack (2)
- kellerman (2)
- lobbying (2)
- loonie (2)
- magnetar (2)
- marcellus shale (2)
- marselus shale (2)
- mcCain (2)
- medicare (2)
- merton.mit (2)
- milton friedman (2)
- neil bortz (2)
- notes from natural gas country (2)
- nuclear power generation (2)
- patrick french (2)
- paumgarten (2)
- pelosi (2)
- peter bernstein (2)
- phil in the mountains of kyushu (2)
- phillip schuck (2)
- philosophy (2)
- pnc (2)
- power grid (2)
- ratigan (2)
- rebecca Worple pictures (2)
- regions financial (2)
- regulation (2)
- rick santelli (2)
- robert shiller (2)
- rolling stone (2)
- schumer (2)
- schwab (2)
- securitization (2)
- seeking alpha (2)
- shadow banking system (2)
- sir allen stanford (2)
- south ossetia (2)
- stanley fish (2)
- stated income loans (2)
- steen (2)
- stress tests (2)
- structured finance (2)
- taleb (2)
- talf (2)
- too big to fail (2)
- treasury (2)
- troubled asset recovery plan (2)
- trusts (2)
- twitter (2)
- veverka (2)
- walter noel (2)
- water (2)
- weatherization (2)
- wells fargo (2)
- whitney tilson (2)
- william cohan (2)
- world affairs (2)
- 1040 (1)
- 12 angry men (1)
- 60 minutes (1)
- Daschle (1)
- December (1)
- Detroit (1)
- Dirty tricks (1)
- Dmitry Orlov (1)
- Econned (1)
- Electricity (1)
- EnCana (1)
- February (1)
- Gold Standard (1)
- Irremedial (1)
- January (1)
- Jr. (1)
- Judith Timson (1)
- Kevin Hassett (1)
- McFadden Act (1)
- National City (1)
- Negrych (1)
- No There There (1)
- November (1)
- Peter Baker (1)
- Rob portman (1)
- September (1)
- Surowiecki (1)
- T. Boone Pickens (1)
- TWITTER DAY capers (1)
- Teddy Roosevelt (1)
- The Flash Guys (1)
- VaR (1)
- WEP (1)
- WPA (1)
- ` (1)
- aa (1)
- aaron pressman (1)
- above the law (1)
- acorn (1)
- adwords (1)
- afghanistan (1)
- africa trip (1)
- aging (1)
- ai (1)
- ajay kapur (1)
- ajit jain (1)
- aligned interest partnerships (1)
- allegheny (1)
- ambient (1)
- american electric power (1)
- anandarko (1)
- andrew j hall (1)
- andrew lo (1)
- andy redleaf (1)
- anne hathaway (1)
- annuities (1)
- apc (1)
- attorney review (1)
- ayp (1)
- ayres (1)
- bachus (1)
- barofsky (1)
- baseball (1)
- basis_of_stocks (1)
- ben stein (1)
- best line of the day (1)
- bill ayres (1)
- bill gates (1)
- bill o'reilly (1)
- bill youngclaus (1)
- blackstone group (1)
- blankfein (1)
- blodget (1)
- blodgett (1)
- bob woodward (1)
- books and entertainment (1)
- brown-kaufman (1)
- bruce harlamert (1)
- bully points (1)
- buy and hold (1)
- california (1)
- canadian banks (1)
- canadian dollar (1)
- carlyle group (1)
- carol loomis (1)
- casa batllo picture (1)
- cds.money market (1)
- charles ortel (1)
- charles taylor (1)
- chesapeake energy (1)
- chicago (1)
- china (1)
- christopher hitchens (1)
- city-data (1)
- cleaving in two (1)
- closing costs (1)
- cloud computing (1)
- cng (1)
- cobra (1)
- colin powell (1)
- collar funds (1)
- colors (1)
- columbia gas (1)
- commercial property (1)
- communitarian (1)
- conan obrien (1)
- concrete (1)
- conocophilips (1)
- consumer financial product agency (1)
- contracts (1)
- cooking (1)
- corporate law (1)
- cottage ownership (1)
- cox (1)
- creditaig.credit default swaps (1)
- daily normals (1)
- dan kucera (1)
- david corn (1)
- david einhorn (1)
- david faber (1)
- david frum (1)
- david gray (1)
- david gu (1)
- david kessler (1)
- dayton daily news (1)
- default option (1)
- deficit (1)
- discount rate mismatch (1)
- divorce (1)
- dmitri young (1)
- douthat (1)
- dov seidman (1)
- due diligence (1)
- dzhugashvili (1)
- earmarks (1)
- earthquake (1)
- edmund andrews (1)
- education (1)
- effrat (1)
- el-erian (1)
- ellen brown (1)
- emma (1)
- equities (1)
- eric holder (1)
- estate planning (1)
- estate taxes (1)
- ethics (1)
- european union (1)
- everything relates to everything (1)
- ewe reinhardt (1)
- exceptionalism (1)
- extend and pretend (1)
- ezra merkin (1)
- f (1)
- facebook fiasco (1)
- fairenergyohio.org (1)
- fault swaps (1)
- feith (1)
- financial engineering (1)
- finland (1)
- first energy (1)
- fitzgerald (1)
- fixed income (1)
- fonts (1)
- food (1)
- foreclosures (1)
- fracking (1)
- fuchs (1)
- futures chain (1)
- game face (1)
- gary kaminski (1)
- gasoline (1)
- gawande (1)
- gazprom (1)
- gerry spence (1)
- glen beck (1)
- good writing; what we learn when special people die (1)
- greek debt (1)
- gregg (1)
- gs; (1)
- gwyn morgan (1)
- hdd (1)
- heroes (1)
- hilda solis (1)
- home buyer tax credit (1)
- homes (1)
- igs (1)
- index funds (1)
- india (1)
- inflation (1)
- infrastructure (1)
- interest rate swaps (1)
- investment neighborhood concept (1)
- iphone+facebook (1)
- ireland (1)
- irs (1)
- james simons (1)
- john burns (1)
- john cassidy (1)
- john_paulson (1)
- jon stewart (1)
- jose manuel tesoro (1)
- julian epstein (1)
- kagan (1)
- karl icahn (1)
- kate middleton (1)
- kate winslet (1)
- ken lewis (1)
- kevin drum (1)
- lafley (1)
- lawyering (1)
- leonie benesch (1)
- liddy (1)
- limiting wall street salaries (1)
- linda greenhouse (1)
- liquidity (1)
- listen up (1)
- lists (1)
- livingwiththeoldies (1)
- lynn a stout (1)
- macArthur (1)
- madmoneyrecap.com (1)
- maira kalman (1)
- malcolm gladwell (1)
- managed futures (1)
- manhattan institute (1)
- mark everson (1)
- mark-to-market rule (1)
- martin act (1)
- mcallen texas (1)
- mcconnell (1)
- meachem (1)
- medicaid (1)
- memory lane (1)
- mergers and acquisitions (1)
- mf global;corzine; Masters of the Universe (1)
- michael jackson (1)
- mike demmer (1)
- mike mayo (1)
- mit (1)
- mit technology review (1)
- mold (1)
- mommy (1)
- money market funds (1)
- moral hazard (1)
- mother jones (1)
- mozilo (1)
- msnbc (1)
- muppets (1)
- mutual funds (1)
- myth of the great war (1)
- nagornay (1)
- naipaul (1)
- nassim taleb (1)
- nationalization (1)
- ncaa (1)
- new construction (1)
- nicholas dawidoff (1)
- nick grealy (1)
- nopec (1)
- not misleading cnbc ads (1)
- not sure (1)
- november 2010 elections (1)
- nymex (1)
- oil sands (1)
- oil spill in gulf (1)
- options (1)
- orange county (1)
- orman (1)
- p&g (1)
- packer (1)
- pakistan (1)
- passive houses (1)
- patrick-taylor plan (1)
- pension funds (1)
- peter weinberg (1)
- phillip blond (1)
- phisosophy (1)
- pico iyer (1)
- pictures (1)
- planes (1)
- plutomomics (1)
- powers of attorney (1)
- prechter (1)
- primal image (1)
- primary care doctors (1)
- procedure (1)
- progress energy (1)
- quants (1)
- queen elizabeth (1)
- quiet zones (1)
- rahm (1)
- randazzo (1)
- random sayings (1)
- randum notes; Hot Air (1)
- ratings (1)
- regulatory capture (1)
- renminbi (1)
- rent scams (1)
- repo 105 (1)
- residential counteroffer (1)
- restoring wireless (1)
- retail (1)
- reunion (1)
- rice v igs (1)
- roger altman (1)
- ron insana (1)
- ross serkin (1)
- roubina (1)
- rtichard posner (1)
- russian winter (1)
- s and p (1)
- sallie mae (1)
- sarah brightman (1)
- saskia de brauw (1)
- saturday night live (1)
- satyajit das (1)
- schadenfreude (1)
- science (1)
- sean miller (1)
- segal (1)
- silver (1)
- single payer system (1)
- singleism (1)
- sistine chapel (1)
- small business (1)
- smart metering (1)
- soros (1)
- speculation (1)
- springfield township (1)
- stalin (1)
- steele (1)
- steidlmayer (1)
- stenfors (1)
- steven g breyer (1)
- steven schwartzman (1)
- stewart (1)
- stiglitz (1)
- strauss-kahn (1)
- strictly local (1)
- susan jacoby (1)
- tabula rasa (1)
- tanenhaus (1)
- tanta (1)
- target date funds (1)
- taxes (1)
- ted forstmann (1)
- ten things (1)
- tett (1)
- thamel (1)
- the haggler (1)
- the reader (1)
- thomas jefferson (1)
- thomas lee (1)
- thomas montague (1)
- thomas ricks (1)
- timeline. laffley (1)
- timothy egan (1)
- tivo (1)
- tod_x;Duke Energy (1)
- todx (1)
- tom archdeacon (1)
- tom daschle (1)
- tom wilson.allstate (1)
- trains and automobiles (1)
- travel insurance (1)
- ultra (1)
- ung (1)
- united states steel (1)
- vanity fair (1)
- vatican (1)
- verizon (1)
- victoria falls (1)
- victorian homes (1)
- w (1)
- wall street (1)
- washinton mutual (1)
- whitebox (1)
- wilpon (1)
- wtrg (1)
- wwII. flash crash (1)
- www.rule26a1.com (1)
- x (1)
- year_end (1)
- zambia (1)
- zardari (1)