WKYT - Lexington - Headlines

Court upholds forfeiture order in fen-phen case

LOUISVILLE, Ky. (AP) - A federal appeals court has ruled that the federal government gave proper notice that it planned to seize property stemming from a scheme by attorneys to bilk their clients out of $94.6 million from a $200 million settlement over the diet drug fen-phen.

The U.S. 6th Circuit Court of Appeals on Monday turned away an attempt by the son of one of the attorneys to stop prosecutors from seizing a Lexington home. Judge Jane Stranch concluded that Joseph Gallion received adequate notice that house was the subject of forfeiture proceedings.

Gallion's father, 62-year-old William Gallion, and an associate, 58-year-old Shirley Cunningham Jr., are each serving decades in prison for their roles in the plot.

Gallion and Cunningham have been ordered to repay their former clients $127,678,834 in restitution.


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