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National Briefing | Midwest: Ohio: Diocese?s Ex-Accountant Is Guilty of Tax Charges A federal jury convicted the former top accountant at the Cleveland Catholic Diocese of tax charges, but acquitted him of more serious charges related to kickback accusations. The jury in the trial of the man, Joseph H. Smith, 51, had been deliberating for nearly two weeks. The prosecution portrayed Mr. Smith as a manipulator who arranged $785,000 in kickbacks and secret payments because he felt he was underpaid. He was acquitted of more serious charges of mail fraud related to the alleged kickbacks, but convicted of six tax-related charges. A judge had earlier dismissed money laundering charges. Sentencing was set for Oct. 3. He faces a maximum of 20 years in prison. Publ.Date: Fri, 04 Jul 2008 07:08:38 GMT Source: NY Times
National Briefing | South: Kentucky: Mistrial In Fen-Phen Case Two lawyers accused of defrauding their clients in a diet-drug settlement of $65 million were sent back to jail, after a jury in Covington deadlocked and a federal judge declared a mistrial. The jury considered the case against the lawyers, William Gallion and Shirley Cunningham Jr., for eight days, and twice in two days sent out notes indicating it was stumped. A third defendant, Melbourne Mills Jr., was acquitted this week. All faced a single charge of conspiracy to commit wire fraud. The case has been watched in the horse racing industry because Mr. Gallion and Mr. Cunningham are part-owners of the 2007 Horse of the Year, Curlin. Prosecutors said they planned to request and schedule a new trial in the next two months. The lawyers were accused of keeping millions of dollars that should have gone to plaintiffs in a $200 million settlement of a class-action lawsuit over the diet drug fen-phen. Publ.Date: Fri, 04 Jul 2008 07:09:39 GMT Source: NY Times
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