Lundy Appeal to be Denied, A New Hearing Already Requested

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More than two years after being convicted for bribery and fraud, former Calumet Farm president J.T. Lundy is still fighting for his freedom.

A federal appellate court indicated in mid-February it did not intend to change the status of Lundy's conviction or reduce his 4 1/2-year prison sentence. Lundy immediately requested another hearing before the Fifth Circuit U.S. Court of Appeals headquartered in New Orleans.

"There are very complicated legal issues regarding the issue of false statements to a bank," said David McGee, Lundy's attorney. "One is to what extent an omission constitutes a false statement, even if the question is never asked."

McGee filed for a new hearing after appellate court judges issues a preliminary order two weeks ago stating they intended to deny Lundy's appeal. The court is not on a specific timetable for responding to Lundy's request.

Lundy and Calumet's former chief financial officer Gary Matthews were convicted Feb. 7, 2000, for intentionally defrauding the First City National Bank of Houston out of $65 million in loans using bribery and deceit. Lundy is serving his prison sentence in Pensacola, Fla., while Matthews is serving his 21-month sentence at a federal prison in Manchester, Ky.

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