Melbourne Mills Jr. is indicted on insurance charge

jhewlett@herald-leader.comJanuary 11, 2011 

Disbarred lawyer Melbourne Mills Jr., who represented clients in a multimillion-dollar diet drug settlement, was indicted Tuesday on a fraudulent insurance acts charge by a Fayette County grand jury.

The felony count stems from an incident on or about Aug. 11, 2003. The indictment alleges that Mills knew that a statement made to an insurer, board of claims or agent for the purpose of obtaining, renewing or replacing an insurance policy contained false, incomplete or misleading information

Fayette Commonwealth's Attorney Ray Larson said he could not comment on the case. The name of the insurer, board of claims or agent was not listed in the indictment.

Mills has been involved in a federal court case with Continental Casualty Co., which issued a liability policy to his firm and paid for his defense in a lawsuit against him by his former fen-phen clients. Senior U.S. District Judge Joseph Hood said in March that Mills committed "material misrepresentations or omissions of fact" in a 2003 application to the company.

In 2006, a judge ruled that Mills and lawyers William Gallion and Shirley Cunningham had to pay $42 million to clients whom they had swindled in the diet drug settlement. Mills was acquitted of criminal charges in the case, but the state bar association voted to disbar him.

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