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PRINT THIS PAGE | E-MAIL THIS PAGE Saturday, January 24, 1998 Groom appears before magistrate judge on lying charge By TERRI LANGFORD / Associated Press Writer HOUSTON (AP) -- A Kentucky groom on watch the night retired racehorse Alydar was fatally injured made his first formal appearance Friday in a Houston federal courtroom. Alton Stone, of Bardstown, Ky., arrested a week ago in Kentucky, acknowledged the two counts of lying to a grand jury that were read aloud by U.S. Magistrate Judge Calvin Botley, but he said little else. Prosecutors hoped to have a public defender assigned to Stone by late in the day. Stone is charged with lying to a federal grand jury in Houston about what happened on the night of Nov. 13, 1990, when Alydar fractured a leg in his stall at Calumet Farm in Lexington, Ky. The injury proved fatal after unsuccessful attempts to mend it. Almost $20.5 million of Alydar's $36.5 million insurance payment went to Calumet's biggest creditor, the now-defunct First City Bancorp of Texas -- which is why the case is in Houston. Stone was being questioned before the grand jury about the horse's death by federal prosecutors in Houston, who are investigating fraudulent activities at First City Bancorp., which failed first in 1988, then in 1992. Alydar, a top racehorse best known for dramatic second-place finishes in the Kentucky Derby, the Preakness and the Belmont Stakes when Affirmed won the Triple Crown in 1978. But his real legacy came after he was retired to stud in 1979. He became one of the best stallions of all time as the sire of champions Alysheba, Easy Goer, Turkoman and Althea. The Houston federal grand jury is investigating whether Alydar was injured intentionally so Calumet could collect insurance money to pay its biggest creditor: First City Bank-Texas. Rumors have swirled around the night in November 1990 that Stone said he discovered Alydar, the stallion's leg broken, in a stall at the farm. The horse was given a lethal injection two days later, after a struggle to save his life. In 1996, former First City Bankcorp. vice chairman Frank Cihak and four associates were convicted on fraud and money laundering charges stemming from a multimillion-dollar kickback scheme arising from loans that led to the bank's failure in 1992. Cihak is serving two federal prison sentences. Cihak joined First City after it was recapitalized in a $1.6 billion government-assisted bailout led by Chicago banker Robert Abboud in 1988. There is a 10-year statute of limitations on the case, which would mean prosecutors now are facing deadlines this year if they are still investigating activities regarding what occured around the time of the bank's 1988 failure. After Stone's court appearance Friday, Julia Hyman, an assistant U.S. attorney, would not comment about the case to reporters. Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story Send the URL (Address) of This Story to A Friend: Enter their email address below: texnews.com Reporter OnLine Local Sports Texas Sports Copyright ©1998, Abilene Reporter-News / Texnews / E.W. Scripps Publications Send the URL (Address) of This Story to A Friend: Enter their email address below:

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