United States Bankruptcy Judge James G. Mixon Refers Man to U.S. Attorney for Criminal Charges for Perjury Because he Testified that he Forgot an Income Tax Refund

U.S. Attorney alleges that depositing tax refund is laundering money. Wife has been threatened with charges of money laundering for depositing lawful income tax refund and asked to plea bargain on charge of misprision of felon.

September 2, 2005 -- U.S. Bankruptcy Judge James G. Mixon has referred a man to U.S. Attorney for criminal charges for perjury because he testified that he forgot an income tax refund.

U.S. Attorney alleges that depositing tax refund is laundering money. Wife has been threatened with charges of money laundering for depositing lawful income tax refund and asked to plea bargain on charge of misprision of felon.

Stephen and Barbara Griffin of Arkansas (Case No. 5:2-bk-70245M, filed in the United States Bankruptcy Court for the Western District of Arkansas, Fort Smith Division) have been encouraged to plea bargain rather than go before a jury of their peers. On February 17, 2005, Assistant U.S. Attorney Steven Snyder sent correspondence to Stephen Griffin alleging that U.S. Bankruptcy Judge Mixon referred Stephen Griffin for criminal charges of perjury and money laundering.

On August 30, 2004, the newspaper, Times Record, of Fort Smith, Arkansas, reported that Stephen Griffin's business associates predicted that Stephen filing bankruptcy would result in Griffin receiving "nothing." Stephen had alleged that he was forced into bankruptcy due to fraud committed by his business associates. Since filing bankruptcy, various sources are causing the business associates' prediction to come true.

On February 17, 2005, Assistant U.S. Attorney Steven Snyder sent correspondence to Griffin requesting a plea bargain as alternative for going before the grand jury for indictment on Judge Mixon's allegations. More recently, Attorney Snyder is reported to have asked Griffin's wife to enter a plea of guilty to misprison of a felon, or face indictment for money laundering because she deposited the income tax refund.

Stephen Griffin's health problems in the year 2000 were the beginning of his financial and business problems, and now, for his legal problems. On December 27, 2000, Stephen Griffin suffered a heart attack complicated by shock requiring an intraaortic balloon pump. Death was imminent, but Stephen survived following heroic, emergency, heart bypass surgery, but suffered the consequences of stroke. While recovering from surgery, Griffin left his business interests in the hands of his associates.

Stephen's business associates hired an accountant in California who prepared an income tax return for the year 2000. Stephen received a refund in or about November 2001 that his wife deposited in interest bearing accounts.

On January 14, 2002, attorney Terry Lee filed a chapter 11 bankruptcy petition on behalf of Griffin. Griffin's plan for reorganization consisted of selling properties to pay debts over a period of years. Griffin's business associates and First National Bank objected to the plan.

On February 5, 2003, the case was converted to a chapter 7. Richard Cox, on the panel of chapter 7 trustees, was appointed to the case. Chapter 7 trustees are paid on a sliding scale commission from assets.

On August 28, 2004, Griffin's attorney, David Nixon, (who replaced Griffin's previous attorney), placed Griffin on the witness stand during a hearing on an Objection to Settlement.

It was during that hearing that Stephen Griffin was asked about the 2000 income tax refund prepared by the accountant from California who was hired by his business associates. The transcript of the hearing documents that Stephen Griffin testified that he didn't remember the income tax return and refund.

In response, Judge Mixon stated in open court that he was ?not inclined to believe? someone could "forget such a valuable check." ?You told a fib here in court under oath and I'll hold that against you.? Mixon told Griffin.

On at least two other occasions, and in contradiction of licensed medical physicians, Judge Mixon made medical decisions in this case. Judge Mixon's actions on August 27, 2003, resulted in total disability to attorney Diane Sexton. Judge Mixon's actions on October 22, 2003 resulted in Ms. Sexton being taken by ambulance from Mixon's court room where she had collapsed unconscious.

On August 26, 2003, attorney Diane Sexton requested a continuance in the case because she had just been released from the hospital due to heart problems. Her doctor wrote a letter to Judge Mixon. Judge Mixon refused the continuance.

Attorney Sexton was required to travel 150 miles to attend the hearing. Sexton became quite ill in the courtroom and stated repeatedly ?I can't go on.? Attorney Sexton believes that the transcript alone will support a host of indictments against Judge Mixon. The social security administration has ruled that attorney Sexton became disabled due to the August 27th hearing.


Attorney Sexton represented Barbara's elderly, widowed mother in a matter where the bank, relieved from the automatic stay, sold her a lake house owned by Stephen Griffin. Later, Cox, the chapter 7 trustee, sold the same house to one of Griffin's neighbors who Barbara says had been "eyeing" the property. This neighbor is also a business associate of First National Bank, who objected to Griffin's chapter 11 plans. Attorney Sexton also represented Barbara on another matter.

Judge Mixon sanctioned attorney Sexton and discharged her from the case on the purported basis of conflict of interest since she represented Barbara and Barbara's elderly mother.

Stephen Griffin has retained criminal defense attorney Jim Rose who is encouraging him to enter a plea bargain that will place him in prison for at least a year. Barbara has been encouraged to enter a plea of guilty to misprison of a felon. Such a plea would convict her husband without a trial. Attorney Rose's advice to Stephen and Barbara Griffin is that they have one of two options -- plea bargain, or be found guilty by a jury. The option that the jury might acquit them of all charges was not provided.

Barbara's opinion is that the U.S. Attorney is retaliating against her for reporting on the case on the internet at http://www.wellsofjustice.com/system.htm and http://www.wellsofjustice.com/moot.htm.

Barbara Griffin asserts that the money was used to pay creditors while the Chapter 11 plan was pending, and that she has the documentation. She stated, "There was no trustee during the chapter 11. Someone had to pay the bills. I paid the bills and Cox wants the money back saying it was a preference transfer. Now, a lawful income tax refund used to pay creditors is called money laundering."

"Stephen filed bankruptcy to pay creditors, not to hide assets, not to deceive anyone! The Griffin family business was started in 1940 and Griffin felt a responsibility to pay all his business associates. We have walked the best we could in spite of gross negligence by attorneys and trying to survive a corrupt system. If we had been allowed to file a plan and stay in a Chapter 11, none of this would have been an issue and creditors would have been paid."

Neither bankruptcy trustee Richard Cox or Judge Mixon question the source of the money. Cox has documented his recognition that the check was from the United States Treasury.

While U.S. Attorney Snyder is guaranteeing the Griffin's a prison home by way of a plea bargain or what has been suggested as a fixed jury, Cox, the chapter 7 trustee, is selling their residence.

Trustee Cox has objected to Stephen's statutory homestead exemption because Stephen's first attorney listed an incorrect address as Stephen's residence. In separate documentation, Cox acknowledges the correct address as the Griffin's residence. Cox has accused Stephen's correction of the address as claiming a homestead exemption in bad faith. Stephen's bankruptcy attorneys, David and Theresa Nixon, do not want to oppose the objection in order to prevent placing Stephen on the witness stand again.

Stephen waived his discharge, thinking that it would prevent litigation for another 4 years. Since the waiver, at least one creditor has proceeded to the state court for payment of debts, although Cox continues control and authority over Stephen's assets, in spite of the waiver of discharge.

This case is not out of the ordinary but is typical in bankruptcy cases where parties with influence set out to destroy human beings. The case involving New York attorney Israel Weinstock is one where he entered the bankruptcy court as a creditor, and ended up losing his license to practice law. Similar to Griffin, Weinstock alleges that he was defrauded by his business associates. Similar to Griffin, the alleged fraud began taking place while Weinstock was hospitalized. Weinstock asserts that he was disbarred to discredit his reporting of alleged felonies allegedly perpetrated by a Brooklyn lawyer who was aided by a major law firm with political connections. (See http://www.lawyerfraud.com)

Barbara Griffin stated, "Americans need to know what is happening in the courts, and in particular, the bankruptcy courts. They give you false hope that you can have a plan to pay creditors while retaining certain assets. They don't tell you that if the plan is denied, that they can convert the case to chapter 7, deny your exemptions, and leave you homeless. The trustee even wants to charge us rent for staying in our own house."

"They beat you down where they hope you don't have the energy, faith, money and endurance to continue pursuing justice. Expose the corruption, and they retaliate to silence you and discourage others. If all victims of American judicial and law enforcement corruption cried out at the same time, the sound would reach beyond high heaven."

Contacts:
Jim Rose, Criminal Defense Attorney for Stephen Griffin: 479-443-5700
David and Theresa Nixon, bankruptcy attorneys for Stephen Griffin: 479-582-0020
Asst. U. S. Attorney Robert C. Balfe
And U.S. Attorney Steven Snyder: 479-783-5125
Richard Cox, Chapter 7 bankruptcy trustee: 501-623-1759
Stephen and Barbara Griffin: (479)452-7747

###