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Melbourne Mills Jr., Shirley Cunningham Jr., and William Gallion

Lexington, KY: (Jun-14-07) A federal lawsuit was filed against Melbourne Mills Jr., Shirley Cunningham Jr., and William Gallion, three Lexington lawyers already found in a civil suit to have defrauded clients in Kentucky's $200 million Fen-Phen settlement. The suit claimed that the three had indulged in fraud, and a federal grand jury in Covington demanded that they forfeit $46 million in misappropriated funds and more than $21 million in fees they had parked in a charitable fund. Cunningham, Gallion, and Mills paid themselves millions more than what they were owed under the contracts. Each paid themselves more than $20 million. The 440 plaintiffs collected about $74 million of the $200 million settlement struck in 2001. The lawyers have already been temporarily suspended from practice and if convicted, could see 20 years of jail time, and a $250,000 fine. The grand jury began investigating the case in March 2006, when Sonya Pickett of Lexington and W.L. Carter of Lawrenceburg, two plaintiffs in the lawsuit, said they were asked to appear. In the civil case, a Boone Circuit senior judge found that the lawyers had breached their duties and said they will have to repay up to $64.4 million they misappropriated, minus legitimate expenses. [COURIER JOURNAL: FEN PHEN LAWYER FRAUD]

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Last updated on Jun-18-07

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