The Kornman Falleth

Categories: Biz

So much for that big Gary Kornman trial we were all awaiting: Unfair Park has learned that yesterday, the Dallas attorney appeared in United State District Judge Jorge Solis' courtroom, two years after the feds indicted him on four counts of securities fraud and lying to the Securities and Exchange Commission. But before the trial ever got underway, Kornman pled guilty to one of four counts against him -- the one about lying to the SEC during an October 2003 phone conversation with government officials, who were investigating insider-trading allegations. Long story short: SEC officials had discovered that Kornman had purchased substantial amounts of stock in both MiniMed, a medical equipment company, and the Hollywood Casino Corp. -- right before both were to be sold. Hence, insider trading.

By pleading guilty to the obstruction of justice charge, Kornman will have to pony up about a million in fines, but he'll likely escape prison time. And the SEC has also dropped its civil suit against Kornman -- for now. There is the chance some of this will change; court documents show this won't be finalized till June. And there are other cases against Kornman and his tax-shelterin' Heritage Organization. But the big one's now gone, and Gary Kornman the attorney is now Gary Kornman the felon. --Robert Wilonsky

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