PROFIT TAKER'S & MONEY MAKER'S

[harr449]

bama4me, A Mini-Enron on Every Corner?

By KURT EICHENWALD
Published: May 29, 2005

ON that Christmas day in 1998, life could hardly have seemed better for the Gordon brothers, David and Greg. They brought their wives to celebrate the holiday amid the festive décor of their parents' home in Conroe, Tex., a onetime oil boom town north of Houston. As family members relaxed, the brothers eagerly compared notes about their triumphs of the last year.

The stock market bubble was still expanding. For David Gordon, a corporate lawyer from Tulsa, that translated into a flourishing business helping companies go public or make acquisitions. For Greg Gordon, who ran a successful wholesale jewelry business with his wife, Lisa, the flood of market wealth had created a heated demand for the luxury items he sold.

David and Greg, once so close, stopped speaking to each other as they battled in court.

For David Gordon, who has not been charged with any wrongdoing and denies having done anything improper, the real culprit is Greg. "You try to help your brother build a business, you think your brother is honest, has integrity, and then you find out he doesn't," he said in an interview. "I have watched my brother completely tear the family apart. This is a deal where he blew through $3 million and wanted to blame someone else."

Amid the flurry of litigation, both brothers can point to court victories. A fraud lawsuit filed by Greg Gordon was recently tossed out by a judge in Montgomery County, Tex. But this month, a federal bankruptcy judge held that Greg was entitled to 75 million shares in Con-Tex's parent company, rejecting David's argument that he was not.

The Gordon family had always been competitive. The men - George David Gordon Sr., a prominent lawyer in Conroe; George Jr., who went by David; and James Gregory Gordon, or Greg - had been accomplished athletes. NOTE: JAMES nickname sometimes JACK?

Long 5 page article: http://tinyurl.com/4bze6s