Two part owners of last year's Preakness winner went on trial Tuesday on charges they defrauded clients out of millions in a case being watched closely by the thoroughbred industry because the men could lose their share of the horse. Shirley Cunningham Jr., 52, and William Gallion, 56, are accused of keeping money that prosecutors say should have gone to plaintiffs in a $200 million settlement from the maker of the diet drug fen-phen. While the horse's ownership isn't a direct issue in the criminal case, it's the reason it has gotten attention. The two attorneys have a 20-percent ownership share of Curlin, a prized colt who was named 2007's Horse of the Year after showing, winning and placing in last year's Triple Crown events.

A judge has ordered that Cunningham and Gallion's $3.5 million ownership share and winnings go into a trust for eventual payment to the more than 400 plaintiffs who won a $43 million settlement in a civil lawsuit against the attorneys.

"That money will go a long way to righting a terrible wrong," said plaintiff W.L. Carter of Lawrenceburg. "He's a great horse, a beautiful horse, and I wish him all the luck in the world."

The horse has been ruled out as an issue in the criminal trial against Cunningham, Gallion and Melbourne Mills Jr. - a third co-defendant who didn't have a stake in Curlin.

Few in the horse industry will address the criminal or civil cases and judgment directly. When asked, most decline to talk about the proceedings, instead focusing on what Curlin does on the track.

Jess Jackson, the founder of Kendall-Jackson Winery and owner of Stonestreet Stables, bought his 80-percent interest in Curlin from the attorneys before they were indicted. If the judge's order goes through, Jackson would get first right of refusal to buy Curlin outright.

Assistant U.S. Attorney Laura Voorhies said in opening statements Tuesday that the three men chose to defraud their clients in the case. Each man could face a maximum of 20 years in prison.

"This case isn't that confusing," Voorhies said. "It's fairly simple."

O. Hale Almand, an attorney for Gallion, told the jury that the lawyers handled their payment from the fen-phen case like any other class-action lawsuit. He argued any mistakes in the distribution of the settlement were not intentional.

Curlin is showing promise in a rare season of competition as a 4-year-old, winning the Dubai Cup in March instead of retiring to the stud farm. Cunningham and Gallion didn't see the Dubai win - the Boone County Jail, where they've been held since August, doesn't offer inmates cable television.

Curlin walked several laps before the public at the Kentucky Derby on May 3 and Jackson said he plans to run him in the Stephen Foster Handicap in June at Churchill Downs.

When asked about Curlin's unusual 4-year-old campaign, Jackson talks about the thoroughbred's majesty and racing him into maturity.

The sport's image was bruised at the Derby by the tragic injury of Eight Belles, who broke both her ankles after the race and had to be euthanized on the track. Some observers of the sport have questioned whether breeders focus too much on short-lived speed and not enough on durability.

"It's not about the money," Jackson said. "It's what it would mean to the horse and what it would mean to the industry."

Written By BRETT BARROUQUERE

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