HOUSTON -- After years spent moving and shaking in the world of thoroughbred racing, two men who ran a storied stable showed up for their first day in court here Tuesday.

J.T. Lundy and Gary Matthews sat opposite one another at the defense table to face charges of bribery, fraud and making false statements. The pair avoided eye contact, and did not publicly speak to one another while a jury was selected for their trial.

Lundy slumped in his chair, leaning on his elbow. Matthews peered around the courtroom through thick glasses.

What a difference federal charges can make -- not to mention a tumble into bankruptcy, the mysterious death of a prized stallion and the collapse of a Houston bank.

"You're going to be in for a real interesting trial," U.S. District Judge Sim Lake told the jury.

Lundy was once president and Matthews chief financial officer of Calumet Farm in Lexington, Ky., the most celebrated breeding and racing farm in the world.

This week, the two men face accusations of paying a Houston-based bank a $1.1 million bribe. In exchange, the now-defunct First City Bancorporation handed the stables $65 million in unsecured loans without checking the farm's credit or appraising the horses, federal prosecutors charge.

Through glittering decades on the thoroughbred circuit, Calumet claimed eight Kentucky Derbies, seven Preakness Stakes, two Belmont Stakes and two Triple Crowns.

When Calumet declared bankruptcy in 1991, the farm was more than $100 million in debt. Racing fans reeled.

"It was more than a shock," said Lexington attorney John O. Morgan. Morgan represents the descendants of Calumet matriarch Lucille Wright Markey. "It was just unbelievable that a farm of that stature could go under."

Just six months before the stables went belly up, workers found the prized stud Alydar with a broken leg in his stall. After a few days of fruitless treatment, Alydar received a lethal injection.

Former horse groomer Alton Stone was on stable duty the night of Alydar's inexplicable injury. In November 1998, Stone was sentenced to five months in jail for lying to the grand jury while describing that night.

It turned out the stables had a lien on the horse. After the loss of the esteemed stallion, Calumet collected a $36.5 million insurance payment. Of that money, $20 million was used to pay off a debt to First City.

Both the FBI and the U.S. attorney's office are still investigating Alydar's death.

First City struggled with economic woes after Calumet, one of the bank's biggest loan clients, folded. Shortly afterward, the Houston bank failed. The stables later were bought at auction.

First City Bancorp vice chairman Frank Cihak and four associates were convicted on fraud and money laundering charges. Cihak was sentenced to more than 12 years in federal prison in 1994.

Opening arguments are set for Wednesday in the Lundy-Matthews trial, which is expected to last three weeks.