Kentucky Fen-Phen Lawyers Ordered to Return $30M

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Two disbarred lawyers convicted of scamming their former clients in a diet drug case out of millions of dollars must forfeit $30 million, a federal jury ruled Tuesday.

Former attorneys William Gallion and Shirley Cunningham also must turn over an unspecified amount held in separate accounts, jurors decided. That could be as much as $20 million more, said Angela Ford, an attorney representing the victims in a civil case against the two lawyers.

“The jury’s decision appears to make a lot of sense,” Ford said.

Gallion and Cunningham were convicted last week of scamming their former clients out of $94.6 million while representing them in a case involving the diet drug fen-phen. Prosecutors said the two scammed about 440 clients who had been hurt using the drug, which was taken off the market after being linked to heart valve problems.

Gallion and Cunningham each were convicted of one count of conspiracy to commit wire fraud and eight counts of wire fraud. They’re facing 20 years in prison on each count and are to be sentenced in July.

Gallion and Cunningham were convicted following a second trial. Jurors in an earlier criminal trial were unable to reach an unanimous verdict and a judge declared a mistrial. A third defendant, Melbourn Mills of Lexington, was acquitted at the first trial.

Lawyers for Gallion and Cunningham have said they plan to appeal their guilty verdicts.

Hale Almand, Gallion’s attorney, said the jury decision showed “the scope of the alleged fraud is much smaller than the government contends.”

The separate accounts the jury referenced had comprised the Kentucky Fund for Healthy Charity account, which the former lawyers set up using money collected in the scheme. Gallion and Cunningham also have a $42 million judgment against them in a separate civil case brought by the former clients.

The defendants’ assets include a 20 percent share of the thoroughbred Curlin, which are being held in a trust.

Ford, the attorney for the victims, said she interpreted Tuesday’s ruling to mean a total of approximately $50 million would be forfeited to repay the victims. Ford said, however, it’s uncertain exactly how much money realistically still will be available to collect on the victims’ behalf.

“The more realistic amount is the $30 million,” Ford said.

U.S. attorney’s office spokesman Kyle Edelen said the government intends to collect the money and use it as restitution for victims.

Connie Centers, who needed a mitral valve replacement in her heart after taking fen-phen, said she wasn’t sure how to feel about the jury’s decision.

“This has just been a long process,” said Centers, who was represented by the Kentucky lawyers. “But it’ll work out.”