For anyone interested in Houston lore, a subscription to the Wall Street Journal is a must today as WSJ reporter Jonathan Karp weighs in with this front page article on the latest lawsuit of Melvin Dummar, the former Utah milkman who unsuccessfully claimed during a highly-publicized trial in 1978 that a handwritten “Morman Will” from reclusive billionaire and former Houstonian Howard Hughes entitled Dummar to over $150 million from the Hughes estate (Hughes died while flying to Houston in 1976 for medical treatment). Dummar claimed that the handwritten will was a reward for saving Hughes’ life after Dummar found him lying alone one night on a desolate Nevada desert roadside about 150 miles north of Las Vegas. Dummar’s story about the Mormon Will is the basis of the clever 1980 movie, Melvin and Howard.
Amidst that rich backdrop, Karp reports that Dummar is again after a chunk of the Hughes estate, albeit indirectly through two beneficiaries of the Hughes estate, Houstonians William Lummis and Frank Gay. Dummar’s new lawsuit alleges that Lummis, a Hughes cousin and the main family heir, and Gay, a former Hughes executive, conspired to withhold information from the court in the 1978 trial in order to discredit the validity of the Morman Will. The 77-year old Lummis currently serves as a trustee for the nonprofit Howard Hughes Medical Institute and the 85-year old Gay was also a member of medical institute’s board of trustees until recently.
Dummar’s latest lawsuit is based largely on the testimony of a former Hughes pilot, who allegedly corroborates Dummar’s allegation that Hughes had left Las Vegas to visit a brothel — appropriately named the “Cottontail Ranch” — near the spot where Dummar allegedly found Hughes in the Nevada desert. According to the pilot, the purpose of Hughes’ visit to the brothel was to renew a regular tryst with “Sunny, a redhead who had a diamond in an upper incisor. ‘You couldn’t see it unless she smiled broadly,’ [the pilot] recalls. ‘She was the class of the field.'”
Read the entire article. New movie to follow.
Monthly Archives: June 2006
Owls are on their way to Omaha
For the fifth time in the past decade, the Rice Owls baseball team will play in the College World Series in Omaha, which begins this weekend. The Owls qualified for this year’s CWS with a heart-thumping 9-5 victory over the Oklahoma Sooners in the rubber game of their three-game Super Regional series on Monday afternoon at Rice’s Reckling Park. The Owls return to the CWS tournament in Omaha for the first time since 2003, when Rice won the tournament and was crowned national champion. The Owls first game in the CWS tournament this year is against Georgia on Saturday.
This year’s trip to the CWS for the Owls is of particular interest to me because, several years ago while coaching youth baseball here in The Woodlands, I had the privilege of coaching Owls OF Jordan Dodson and Owls catcher Danny Lehmann, both of whom went on to become star players in the excellent high school baseball program at The Woodlands High School before enrolling at Rice. Somehow, these two fine young men were able to overcome my coaching to develop into excellent ballplayers. I’m thrilled for them and the entire Rice squad. Go Owls!
Rumblings from the Jury Room of the First Enron Broadband Retrial
U.S. District Judge Vanessa Gilmore’s decision to conduct the re-trial of former Enron Broadband executives Kevin Howard and Michael Krautz during the latter stages of the media-saturated Lay-Skilling trial was highly prejudicial to Howard and Krautz.
As it turned out, the juries in both cases deliberated at the same time, and the Howard-Krautz jury was deliberating amidst the media firestorm on the Thursday before Memorial Day weekend when the Lay-Skilling verdict was announced.
The following Tuesday, the Howard-Krautz jury returned a verdict convicting Howard and acquitting Krautz.
The dubious nature of the decision to conduct the Howard-Krautz trial during the Lay-Skilling trial is now becoming readily apparent.
This John Roper-Purva Patel/Houston Chronicle article reports that Howard’s defense team has filed a motion for a new trial that contains statements from two jurors and two alternate jurors in the Howard-Krautz trial alleging that the Howard-Krautz jury deliberations were seriously compromised and that certain jurors promoted a vindictive environment in the jury room “to fry” top Enron executives, including Howard.
It does not appear that the Chronicle reporters had a copy of the motion when they prepared their article, but the motion and affidavits confirm the following troubling allegations:
Jurors holding out for acquittal for Howard were threatened with physical harm from jurors pushing for conviction;
Contrary to Judge Gilmore’s instructions, certain jurors regularly discussed the case between themselves during the trial and, after deliberations began, discussions among certain jurors took place outside the jury room;
One male juror asserted that he was an expert on Enron because he had read one of the books on the Enron scandal, and used information from the book in persuading jurors to convict Howard;
The jury in the Howard-Krautz trial deliberated in a room literally next door to the room used by the Lay-Skilling. When the Lay-Skilling jury agreed on a verdict, the loud applause and cheering from the Lay-Skilling jury room was readily apparent in the Howard-Krautz jury room; and
Without advising attorneys involved in the case, Judge Gilmore met with and answered questions from the jurors at least twice during deliberations, including immediately after the Lay-Skilling verdict was announced.
According to the jurors quoted in Howard’s motion, Judge Gilmore told the jurors after the Lay-Skilling verdict that they had to reach a unanmious verdict, leaving the holdout jurors with the impression that a hung jury was not an option.
Moreover, one juror also advised the rest of the jurors that the hung jury in the previous Enron Broadband trial (a fact that was not brought up during the retrial) was a failure that would be emulated by jurors in the retrial if they also could not reach a verdict.
Although the allegations regarding Judge Gilmore’s ex parte communications with the jury will likely put her on the defensive and prone to deny Howard’s request for a new trial, the motion indicates that the Howard-Krautz trial probably should not have been conducted in Houston and, at very least, should never have been allowed to proceed during the Lay-Skilling trial.
The Fifth Circuit — which already has some issues with Judge Gilmore — is likely to take Howard’s appeal on these issues very seriously.
Stros 2006 Review, Part Four
Although the fourth of the Stros’ ten segments of the 2006 season (prior 1/10th of a season posts are here) was not the most successful — the Stros had to win five of their last six to finish 7-9 for the 16-game segment and 32-32 on the season to date — it was certainly lively in other areas:
The Rocket returned to the club and even acquired a new nickname;
The Stros’ best pitcher — Roy O — went on the 15-day disabled list after aggravating his back by attempting to pitch through a hamstring injury;
Stros manager Phil Garner looked as if he was gripping midway through the fourth segment of the season, but seemed to rebound in his decision-making recently; and
The Jason Grimsley Affair threatened to blow the lid off of Major League Baseball’s performance-enhancing drug scandal.
Whew! Meanwhile, the 2006 edition of the Stros continued to exhibit traits of a .500 club after 40% of the season, but — as with last season’s club at this point in the season — the Stros are showing signs that they could still make a playoff run.
The pressured ex-wife in the Milberg Weiss affair
This Justin Scheck/The Recorder article reports on the latest development in the criminal investigation into Milberg Weiss Bershad & Schulman — the apparent willingness of the former wife of one of Milberg Weiss’ favorite expert witnesses to testify that the firm — and perhaps even name partners Melvyn Weiss and William Lerach — improperly used money it recovered in class action securities fraud lawsuits to supplement her ex-husband’s compensation for his work in prior cases.
The expert involved is John B. Torkelsen, a former financial analyst from Princeton, N.J., who made millions from this testimony in numerous cases as an expert on shareholder damages in Milberg Weiss class actions during the 1980s and 1990s. Torkelsen’s ex-wife, Pamela, reportedly agreed to provide evidence against Milberg Weiss and former husband after she pled guilty last year in a Washington federal court to assisting in the theft of $1.9 million from a venture-capital partnership. The speculation is that Mrs. Torkelsen is a possible link to Weiss and Lerach because Mr. Torkelsen was an expert witness in a number of cases personally handled by Weiss and Lerach. Mrs. Torkelsen’s sentencing in the Acorn matter has apparently been delayed for more than a year because of her cooperation in the Milberg Weiss investigation.
Meanwhile, it’s getting a bit difficult to find a judge for the Milberg Weiss criminal case — this New York Sun article reports that the fifth judge has recused himself from handling the case, while this NY Times article reports that Congressional Democrats are getting in gear to defend Weiss, who is a prominent Democratic Party fundraiser.
The mercurial Mr. Bailey
After Florida and Massachusetts disbarred well-known criminal defense lawyer F. Lee Bailey, a three judge panel of the federal district court in Massachusetts was presented with the issue of whether the court should discipline Bailey on a reciprocal basis. The panel did so, and Bailey appealed to the First Circuit Court of Appeals, which issued this interesting opinion that sets out the facts of the case that got Bailey in trouble, but then concludes that those facts are irrelevant because of the principle of reciprocal discipline.
Key tip of the opinion — when reaching deals with prosecutors on behalf of clients, get them in writing.
Sports notes for the weekend
It’s certainly been a busy weekend in the sports world, and a good bit of the action involves Houston-area teams.
First, Houston reinforced its status as the youth baseball hotbed of America this weekend as The Woodlands High School baseball team won the Texas 5A Baseball Championship over fellow Houston-area championship game participant, the Katy Tigers. The 38-1 Highlanders will conclude the season as the no. 1-rated high school team in the U.S. by Baseball America, a position that the team has maintained for most of the season. The Highlanders best player — pitcher and shortstop Kyle Drabek — was the Philadelphia Phillies first-round draft pick earlier this week in the Major League Baseball Draft of high school and college players.
Meanwhile, Houston’s other no. 1-ranked baseball team — the Rice Owls — are just a win away from the College World Series after rolling over the Oklahoma Sooners in the first game of their best-of-three NCAA Super-Regional series at Rice’s Reckling Park. The second game in the series takes place today at noon at Reckling.
Another remarkable performance radiated somewhat beneath the radar screen on a sports scene pre-occupied with baseball, NBA and Stanley Cup playoffs, French Open tennis, and the upcoming U.S. Open golf tournament. Xavier Carter — a 6′ 3″, 190 lbs. sophomore sprinter for LSU who also plays wide receiver for the Tigers’ football team — put on the greatest performance in the history of college track and field on Saturday since the legendary Jesse Owens back in the mid-1930’s. Carter became the first sprinter to win the 100 and 400 meters at the NCAA track and field championships Saturday, and then punctuated that incredible performance by anchoring LSU’s winning 1,600-meter relay team. Combined with his anchor on LSU’s winning 400 relay team the previous night, Carter shared in four NCAA event titles, the first person to do so since Owens won both short sprints, the 220-yard low hurdles and long jump for Ohio State in 1935 and ’36. Carter won the 100-meter race in a school-record 10.09 seconds and then followed that performance with a 44.53 in the 400 only 30 minutes later. In so doing, Carter scored an incredible 40 of his team’s 51 points in LSU’s second-place finish (behind first place Florida State) in the NCAA Track and Field Championships.
In the more sanguine world of golf, Jim Furyk went on the disabled list this week by injuring himself gargling, while this Bob Verdi/Golf Digest interview examines David Duval’s travails in attempting to regain Duval’s stature as one of the PGA Tour’s top players. Also, in the wish-I-had-time-to-do-that-department, don’t miss this Wall Street Journal ($) article on the emerging number of senior amateur players who slide into retirement by playing in dozens of amateur tournaments around the country. One of the featured players in the article is Houstonian Mike Rice, who is the reigning US Senior Amateur champion.
Finally, speaking of the NBA Championship Series, although the focus is usually on the star players such as Shaq, Nowitzki, and Wade, David J. Berri — the Cal State-Bakersfield economist who is a co-author of The Wages of Wins: Taking Measure of the Many Myths in Modern Sports — notes in this NY Times article that it is actually the lesser-recognized players who often make the difference in the series.
The English and Germans are getting warmed up
As predicted in this earlier post, it didn’t take long for English and German soccer fans to begin bashing each other amidst the World Cup matches. And this was before England’s 1-0 victory over Paraguay today. By the way, the Chronicle’s John Lopez is filing a series of interesting reports from the World Cup matches.
A possible big bank deal in the Valley
This Reuters article reports this morning that Madrid-based Banco Bilbao Vizcaya Argentaria SA (“BBVA”) is considering an acquisition of McAllen, Texas-based Texas Regional Bancshares Inc., a holding company with with a market capitalization of $1.87 billion that is in the retail banking business under the name of Texas State Bank.
BBVA is Spain’s second-largest bank that has traditionally focused on the remittance market in the U.S. where it facilitates the transfer of funds by immigrants to their home countries. Lately, BBVA has been expanding its U.S.-Mexican business operations — its Bancomer unit is already Mexico’s largest bank and it recently purchased Laredo National Bancshares for $850 million, so the possible acquisition of Texas State Bank’s owner would constitute a further expansion of BBVA’s U.S. business operations. BBVA is a big outfit, with a market cap of over $66 billion, net income of over $3.8 billion last year and over 90,000 people employees worldwide.
Texas Regional Bancshares is a regional bank located in Texas’ Rio Grande Valley (wonderfully depicted in the movies Lonesome Dove and Lone Star) that has about 75 branches and $6.5 billion in assets based primarily in south Texas. In 2002, Texas Regional commenced an expansion plan in which it has bought small banks in the Houston, Corpus Christi and Dallas areas, which likely makes the bank even more attractive to BBVA. With the large immigrant populations in both Houston and Corpus, BBVA could use the Texas State Banks as the foundation of a substantial increase in its remittance business in Texas while also expanding its traditional banking operations in the state.
Ripples from the Grimsley Affair
Get used to it because the ripples from the Jason Grimsley Affair are already starting and may turn into pretty tasty waves soon.
It looks as if Grimsely has fingered Chris Mihlfeld, a Kansas City-based ìstrength and conditioning guruî (and the former Strength And Conditioning Coordinator for the Kansas City Royals baseball club) as referring Grimsley to a source from whom Grimsley obtained “amphetamines, anabolic steroids and human growth hormone.” Mihlfeld has been Cardinals star Albert Pujolsí personal trainer since before Pujols was drafted by the Cardinals in the 13th round of the 1999 draft.
Meanwhile, as speculated in this previous post from over a year ago, this NY Times article reports that the perjury investigation into Barry Bonds is continuing to fester.
This is going to get very ugly. Quickly.
Update: Mihlfeld is denying that his name is connected to the drug probe that has ensnared Grimsley or that Pujols was involved in taking performance-enhancing drugs.