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Judge orders forfeiture in diet drug scam

Posted: Tue 11:45 PM, Jun 19, 2012

LEXINGTON, Ky. (AP) - Two former attorneys have been ordered to forfeit six houses in Kentucky and Florida, a dozen financial accounts, seven vehicles and cash in lieu of five pieces of property to repay former clients scammed out of millions in a diet drug settlement.

U.S. District Judge Danny C. Reeves in Lexington ordered that all the assets from 61-year-old William Gallion and 57-year-old Shirley Cunningham Jr. are to be sold with the proceeds going to repay more than 400 former clients the two men defrauded.

A federal appeals court in May upheld the convictions of Gallion and Cunningham and ordered them to pay $127,678,834 in restitution.

Gallion and Cunningham were convicted in 2009 of scamming clients out of millions they had won against the makers of the diet drug fen-phen.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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