Curlin's owners guilty of fraud.

Two of Curlin's owners found guilty of fraud


TWO owners of Curlin and partners in Grade 1 star Einstein, have been found guilty at a Kentucky court of conspiracy and counts of wire fraud.

Former lawyers William Gallion and Shirley Cunningham jnr, who race Einstein under the Midnight Cry Stable banner and still own 20 per cent of world champion Curlin, were convicted by a jury in Kentucky in an action relating to a class action suit brought by 440 of their clients over the diet drug fen-phen.

Both attorneys were disbarred last year after being accused of misappropriating money from a $200m settlement. A civil court last year had ordered the two and another attorney, Melbourne Mills jnr, to redistribute $42 million of the $94.6 million they had kept from the settlement.

Mills ultimately was found not guilty in an earlier trial.

Attempts have been made to place a value on the pair's share in Curlin but have failed so far and their former clients are seeking a portion of the earnings from both Curlin and Einstein

Curlin part-owners told to repay stolen millions


WILLIAM Gallion and Shirley Cunningham jnr, the part-owners of Curlin who were found guilty of defrauding clients of millions of dollars in a class-action suit regarding the diet drug fen-phen, were told on Tuesday that they must repay $30 million of the $94 million they took in the $200 million settlement.

The two attorney's, who own racehorses under the banner of Midnight Cry Stable, purchased Horse of the Year Curlin as a yearling and sold a majority interest in the horse to Jess Jackson following his impressive debut.

The two also face many years in prison. They are fully expected to appeal the court's decision.