| News |

The Kornman Falleth

Keep Dallas Observer Free
I Support
  • Local
  • Community
  • Journalism
  • logo

Support the independent voice of Dallas and help keep the future of Dallas Observer free.

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

Keep the Dallas Observer Free... Since we started the Dallas Observer, it has been defined as the free, independent voice of Dallas, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Dallas with no paywalls.

We use cookies to collect and analyze information on site performance and usage, and to enhance and customize content and advertisements. By clicking 'X' or continuing to use the site, you agree to allow cookies to be placed. To find out more, visit our cookies policy and our privacy policy.


Join the Observer community and help support independent local journalism in Dallas.


Join the Observer community and help support independent local journalism in Dallas.