The six men and six women chosen will hear about the collapse of Calumet Farm and alleged bribery involving a high-ranking official at one of Texas' largest banks, First City National Bank of Houston. But they won't be told about suspicions that someone might have attacked Calumet's top money-earner, Alydar, to collect on an insurance policy. Judge Lake instructed prosecutors not to raise that subject in front of the jury. Prosecutors have said they will call as many as three dozen witnesses. First City Bank employees, FBI agents and bank examiners also will appear.
Prosecutors say they'll finish in seven to eight days.
Calumet was unable to repay the loan, and declared bankruptcy in 1991. Federal Deposit Insurance Corp. Cihak was arrested and convicted on 32 charges related to bank fraud. He is in a federal penitentiary in Michigan. Seven defendants in addition to Cihak have been convicted in connection with the First City Bank investigation. Defense attorneys will argue that their clients aren't criminals, just businessmen who invested in thoroughbreds and oil, and struggled after the horse and petroleum industries fell on hard times.