Boxing promoter Don King, who has already survived three grand jury probes and an FBI sting, won another legal victory this morning when prosecutors withdrew their appeal of a mistrial ruling in his insurance fraud trial.
The decision by prosecutors came minutes before a scheduled 10 a.m. hearing before the 2nd U.S. Circuit Court of Appeals. It ended about 18 hours of legal haggling after U.S. District Judge Lawrence McKenna declared a mistrial on Thursday.There was no immediate word on whether King would face a retrial.
"I now discharge you," McKenna told the jurors. "It's been a long trial. You've all paid close attention. We want to thank you."
As they filed out of the courtroom, King nodded toward the jurors and smiled.
King, 64, was charged with nine counts of wire fraud. He allegedly falsified a contract to collect a $350,000 payment from Lloyd's of London for bogus training fees from a canceled 1991 fight.
King, who served time for manslaughter and rose from the gambling halls of Cleveland to become one of the most powerful men in boxing, would have faced a maximum 45 years in prison and $2.25 million fine if convicted on all counts.
The prosecution immediately appealed the mistrial ruling, and McKenna ordered the jurors to return this morning after the 2nd Circuit said it would consider the appeal.
King had smiled widely when word of the mistrial was heard in court, but the spike-haired promoter had to wait overnight to discover if he had again avoided jail in a federal prosecution. He was acquitted in a 1985 tax evasion case, and has outlasted three grand jury probes and an FBI sting.
The promoter testified for three days that his employees had never discussed the Lloyd's of London insurance policy with him.
When not under investigation, the flamboyant King handled virtually every big-name fighter of the last 20 years. King promoted Muhammad Ali's historic "Rumble in the Jungle" with George Foreman in Zaire in 1974, and his "Thrilla in Manila" against Joe Frazier in the Philippines in 1975.
King is no stranger to odd decisions. Fighter Julio Cesar Chavez, the focus of this case, was awarded a draw in a 1993 fight that most observers gave to his opponent, Pernell Whitaker. And King attempted to reverse Mike Tyson's 1990 knockout by Buster Douglas, claiming Tyson had earlier knocked Douglas out but the referee miscounted.
The prosecution's key witness was King's former accountant Joseph Maffia, who testified his boss told him to alter a contract to show Chavez was paid $350,000 in nonrefundable training fees.
The 1991 bout with Harold Brazier was canceled after Chavez cut his nose to the bone while training.
King testified his employees lied when they said they repeatedly discussed the insurance claim with him. King, who insisted on personally signing King Productions checks as small as 5 cents, said he told his staff to handle the insurance case on their own.
The prosecution viewed that testimony as disingenuous.