Delay of Shame

In May we "discovered" (well, not so much) Gary M. Kornman, a Dallas attorney awaiting trial in federal court here after pleading not guilty to criminal charges of securities fraud and lying to the Securities and Exchange Commission. Far as we can tell there's been no mention of Korny in Dallas' Only Daily, but he's a fave at Forbes, which has done several long and short pieces about the man also accused of insider trading (concerning the former Maxim hotel-casino in Las Vegas) and fraud.

Six months ago it was revealed in Forbes that Kream of Korn's attorney made the "startling revelation" in court hearings that his client "found" 8,000 tapes—"including what others call secret recordings of client and prospect meetings," says the magazine—in a storage facility, after already insisting they'd been taped over or weren't relevant to the proceedings. Well, in its latest issue Forbes says that his attorneys now want to delay the trial some six months so they can "review the 40 computers, 85 hard drives, 250 backup tapes and hundreds of disks the feds seized in raids on Kornman family homes." But, writes the magazine's Janet Novack:

Government lawyers worry about a postponement greater than two months because two witnesses, including Forbes 400 member Alfred Mann, are 80-ish. They also argue Kornman should know his own records. Kornman says he likewise needs time to refute a just-added charge of obstruction of justice (the feds say he should have turned over a secretly made tape recording of his meeting with Securities & Exchange Commission investigators). Meanwhile, Kornman just lost an unrelated civil case involving a questionable $100 million tax shelter set up to benefit his family.

He did? Had no idea. Thanks for my local news, Forbes. I'm now a core reader. --Robert Wilonsky

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