Opening arguments were delivered in the insurance and wire
fraud case against boxing promoter Don King in U.S. District
Court in New York yesterday. King is charged with defrauding
Lloyd's of London out of a $350,000 portion of an insurance
settlement over a canceled fight featuring super-lightweight
champion Julio Cesar Chavez. According to NEWSDAY's Greg Logan,
prosecutor Paul Gardephe argued that the case is about an
"altered contract," while defense attorney Peter Fleming told
jurors "the devil is in the details" and that the money was
reimbursement for "nonrefundable training expenses." The
prosecution will call Chavez, former King accountants Joseph
Maffia and Richard Hummers and Gladys Rosa, a publicist and
Spanish-language translator who still works for King. According
to Gardephe, King ordered employees to falsify the original
contract with Chavez by substituting a new first page with a
rider inserting the $350,000 in nonrefundable training expenses.
Chavez is expected to testify that he never signed such a
contract, and never received the money. The prosecution expects
Rosa to corroborate the story. Fleming directed jurors to pay
attention to the complex finances of boxing, noting that the
$750,000 policy taken out by King covered a $736,000 advance to
Chavez and $10,000 for his opponent. The defense claims King was
out the $736,000, but instead of going to Chavez for the money
back, he tried to recover it through an insurance claim (NEWSDAY,
10/11).
LLOYD'S WAITS: Don Cayea, an attorney for the syndicate
that underwrote the insurance, said a civil suit would follow
criminal prosecution (N.Y. TIMES, 10/11).
MAN OF FEW WORDS? King said only, "I'm innocent of all
charges. I love America, man" (N.Y. DAILY NEWS, 10/11).
ANALYSIS: Wallace Matthews writes to expect the typical
King defense: "I didn't do it, but even if I did do it, it
wasn't my fault." Matthews also quotes one source who believes
Rosa -- still on King's payroll -- "will side with Don, no
question" (N.Y. POST, 10/11). However, Rob Parker calls the case
"an ugly power struggle that reeks of racism." Parker: "Rivals
Dan Duva and Bob Arum have done many of the same things that King
has. Still, they aren't investigated with the same forcefulness
as King has been" (NEWSDAY, 10/11). Jack Newfield, author and
King critic: "He is smarter than Donald Trump, a better con-man
than Newt Gingrich, and more street smart than John Gotti."
Boxing analyst Bert Sugar believes if King is convicted, his
business (including Tyson) will continue. Sugar notes most
contracts are not with King, but with Don King Productions ("Up
Close," ESPN, 10/10). On CNN, Newfield said if Chavez testifies
as he did before the grand jury, the NJ and NV boxing commissions
will have to consider revoking King's license as a promoter
("Sports Tonight, 10/10).
