Jurors were deadlocked at the start of the seventh day of deliberations July 2 in the case of two lawyers charged in federal court with defrauding their clients out of $65 million in a diet-drug settlement.

The judge asked prosecutors and defense attorneys Wednesday morning to consider either giving the jury instructions to try again or to declare a mistrial.

Suspended lawyers William Gallion and Shirley Cunningham Jr. each face a charge of conspiracy to commit wire fraud. They were charged with taking more money from their clients than allowed in a $200 million settlement involving the diet-drug fen-phen.

The case has been closely watched in the horse racing industry because Gallion and Cunningham are part-owners of 2007’s Horse of the Year, Curlin, through their Midnight Cry racing stable.

A third lawyer, Melbourne Mills, was acquitted by the same jury Tuesday.

After less than an hour of deliberations Wednesday, the seventh day the jury has had the case, jurors sent out a note about 9:40 a.m. EDT.

“We the jury continue to remain deadlocked,” the note said. “We also agree we cannot come to a unanimous decision.”

Defense lawyers asked the judge to hold off declaring a mistrial.

“We definitely do not request a mistrial,” said Gallion’s attorney, O. Hale Almand.

But Cunningham’s lawyer, Steve Dobson, said another deadlock would bring the trial to a close. “If they’re hung again, we’re stuck with them being hung,” Dobson said.

Bertelsman asked Cunningham and Gallion if it was their desire to have deliberations continue.

“It is,” Cunningham said in the first statement to the court since the trial began.

“Yes, it is, your honor,” Gallion told Bertelsman.

Prosecutors said in closing arguments that the lawyers were motivated by greed when they took a $127 million payment to settle a 2001 lawsuit in which they should have been paid $60 million. Defense attorneys said the lawyers didn’t commit any crimes and any mistakes in the settlement were unintentional.
(Source: The Blood-Horse)