Shoffner pleads innocent to extortion, bribe-taking

Martha Shoffner pleaded innocent Thursday in federal court in Little Rock to charges of extortion and accepting a bribe as a state official. The former state treasurer was arrested in May and indicted earlier this month over allegations she accepted cash in exchange for directing state investment business to a bond broker.

During her brief appearance, Shoffner, 68, stood before U.S. Magistrate Judge Joe Volpe with her attorney, Charles A. “Chuck” Banks of Little Rock, at her side. After Volpe read aloud the charges she faces - six counts of extortion, one count of attempted extortion and seven counts of accepting a bribe as an agent of a state government receiving federal funds - and ticked off the corresponding penalties in the event she is convicted, heasked how she pleaded.

“Not guilty,” Banks replied, echoed by Shoffner’s “Yes, not guilty,” in a strong voice.

Volpe tentatively set her jury trial before U.S. District Judge Leon Holmes for July 29, with jury selection to begin at 9:15 a.m. He said federal prosecutors have estimated that their presentation of evidence is expected to take four days, which doesn’t take into account additional time needed by defense attorneys for cross-examination and presentation of their witnesses.

Although trial dates are routinely set at arraignments, it is rare for a case to go to trial so soon after arraignment. In most cases, the trial date is postponed and doesn’t occur for at least several months.

As Shoffner left the federal courthouse in downtown Little Rock after her two-minute hearing and was swarmed by reporters and cameramen, she said that she is looking forward to going to trial.

Walking with Banks toward a black sport utility vehicle parked at a meter in front of the building, Shoffner smiled at reporters and answered a couple of questions before Banks ushered her into the vehicle.

“We’re just moving forward,” she said. Asked why she wanted to go to trial, she said, “Well, I think that’s where you get the truth.”

The former treasurer resigned May 21, a day after acriminal complaint was filed in federal court alleging that since 2009 she has accepted cash payments totaling at least $36,000, as well as $6,700 in cash campaign contributions, from an unnamedbroker in return for directing a large share of the state’s bond business to him.

Broker Steele Stephens, from whom the treasurer’s office purchased $1.69 billion in bonds during the past several years, resigned from his job with the Russellville-based St. Bernard Financial Services on May 21 without giving a reason, according to the firm’s chief executive officer, Robert Kennan. Stephens isn’t connected to the investment house Stephens Inc.

Beebe appointed a retired legislative auditor, Charles Robinson, 66, of North Little Rock, to fill the vacancy created by Shoffner’s resignation. He was appointed to finish out her second term,which ends in January 2015.

Shoffner had requested permission to sit out her arraignment hearing, having been in court in May for her first appearance after the criminal complaint, and again on May 31 to enter a guilty plea to a single count of extortion, though the judge wouldn’t accept the plea because Shoffner refused to acknowledge the requisite “criminal intent” behind her actions. She was then indicted by a federal grand jury June 5 on more charges, as promised by U.S. Attorney Chris Thyer after she backed out of her initial plea attempt. Thursday’s court appearance was her first after being formally indicted.

The indictment alleges that from mid-2010 through her May 18 arrest at her Newport home, when prosecutors say the unnamed broker gave her $6,000 in a pie box while surreptitiously cooperating with the FBI, she accepted $1,000 cash a month in sixmonth increments, after asking the broker to help pay her rent on a Little Rock apartment.

The payments began afterShoffner lost her access to a rent-free Little Rock apartment that she had helped an acquaintance maintain. Prosecutors say that according to the broker, Shoffner couldn’t afford to rent a new apartment but wanted a Little Rock home to avoid having to commute daily between Little Rock and Newport. She was paid an annual salary of $54,304.80.

In court during her attempt to plead guilty, Shoffner admitted taking the cash but said she didn’t “demand” it, and didn’t “intentionally” take it in return for steering state business to the broker.

Twelve of the charges - six each of extortion and receipt of a bribe - all relate to the six incidents in which prosecutors say she accepted $6,000 from the broker - twice in 2010, twice in 2011 and twice in 2012. Prosecutors say two of the transactions occurred at the state Capitol, two at her Little Rock apartment and two at her Newport home.

The two remaining charges of attempted extortion and receipt of a bribe both concern allegations thatshe took money belonging to the FBI on May 18, through the broker. Because the wad of cash on that date was government money and wasn’t actually kept, that action resulted in the charge of attempted extortion instead of actual extortion. The receipt charge mirrored the other receipt charges because, according to the indictment, even on the last transaction at her home that involved FBI money, she agreed to accept money for her own benefit, intending to use her influence with the state to benefit the broker.

Each extortion and attempted extortion charge is punishable by up to 20 years in prison and a possible fine of up to $250,000, while the penalty for each count of receipt of a bribe is up to 10 years in prison and a possible fine of up to $250,000 under federal statutes. Federal sentencing guidelines advise judges on penalty ranges within the statutory framework, based on a background investigation that U.S. probation officers conduct on each defendant after conviction and before sentencing.

Front Section, Pages 1 on 06/28/2013

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