Ex-State Rep. Armstrong sentenced to probation, house arrest fined $140K

Former longtime state Rep. Joe Armstrong was sentenced Wednesday to three years of federal probation for tax fraud and ordered to pay back the money prosecutors say he failed to report to the IRS in 2008.

In addition, Armstrong will spend six months on house arrest and wear an electronic monitoring device. He'll also have perform 300 hours of community service.

In total, the ex-state House member will pay $99,943 to the IRS; another $40,000 in fines; and the cost of prosecution.

After the 90-minute hearing, defense attorney Gregory P. Isaacs said he was “very pleased” for Armstrong and his family, noting that “the courtroom was packed with his friends, supporters, family members that traveled from all over the country, community leaders.”

“I think it was a very fair and just result based on the applicable considerations under federal sentencing,” Isaacs said. “There were two different sides of the courtroom, obviously the United States thought the sentence should be higher because he was an elected official public official, our position was much different. Joe has been a public servant. He’s not a professional politician, he’s someone that helped individuals tirelessly in his community for 28 years. And those are factors the court is required to consider.”

Armstrong, too, weighed in, saying he wanted to “thank the people for their support, prayers and reaching out particularly not only to my family my church family and the community, for their entire support.”

Prosecutors were initially seeking as much as three years in prison for Armstrong.

Last month, however, the U.S. Probation Office – using guidelines to determine his sentence – calculated a much lower penalty range based on the amount of taxes lost to the IRS.

PREVIOUS: State Rep. Joe Armstrong found guilty of filing a false tax form

RELATED: State Rep. Joe Armstrong retires in wake of felony conviction

Prosecutors argued Armstrong cheated the government out of more than $100,000, an amount that carries a stiffer sentence. The court, however, sides with Armstrong, finding that the lost was just under that at $99,943.

That $57 difference meant the ex-state representative was looking at a maximum of 21 months in prison.

A federal jury in August found the East Knoxville Democrat guilty of filing a false and fraudulent tax return, a felony, after prosecutors argued that the ex-legislator failed to report taxes on a $312,000 profit he made from selling cigarette tax stamps in 2008.

A month later, Armstrong officially retired from his 15th District the state House seat that he held for almost three decades.

Because he's a felon, Armstrong can no longer hold public office again.

Mike Hammond ditches push to merge Knox County criminal-civil courts

Knox County Criminal Court Clerk Mike Hammond is no longer pursuing a proposal to place most of the county’s court system under one umbrella, a plan he pitched in early November to some local leaders.

“It’s just not the right timing for it,” he told WBIR 10News Thursday. “I think politicians – elected officials – need to find ways to save money and streamline things and that’s what I was trying to do, but I didn’t seem to be getting the right traction from folks.”

Hammond first suggested the move to Knox County Mayor Tim Burchett in the wake of a WBIR 10News investigation in late October that detailed the county Circuit Court Office's failure to turn over any money to the county coffers – for the fourth year in a row and the fifth time in the past six years.

The criminal court clerk is responsible for the criminal, sessions and fourth circuit courts. The circuit court clerk oversees civil sessions and juvenile court.

MORE: Hammond to Mayor: Merge Knox County Court System

MORE: Hammond's memo to the Knox County mayor

MORE: Shanks' memo to the Knox County mayor

MORE: No extra fees from Knox Co Circuit Ct Clerk four years running

In a two-page memo sent to the Mayor’s Office, Hammond proposed several options.

He first suggested merging the criminal and civil sessions courts and putting them under the criminal court clerk's purview. He noted that the sessions court judges already hear cases in both courts and it “would be a relatively easy and smooth transition.”

Hammond’s second proposal - which he favored - would combine both operations but put everything under the control of the circuit court clerk, since the state constitution mandates that counties have a circuit court clerk, but not a criminal court clerk.

Hammond proposes making that move by September 2018 when his and Circuit Court Clerk Cathy Shanks' terms in office end. Since neither are term-limited they could each run for the circuit court clerk position.

Shanks at the time called the proposal "regressive."

"I think what he wants to do – he compared it to Blount County – and that’s the model for small counties," she said. "Large counties don’t do that because it provides better customer service for the court systems to be divided so that they can meet customer needs better."

The issue now is moot.

“Since Cathy had said she wasn’t running again, I thought it was a good idea to suggest it then,” Hammond said. “But it doesn’t seem to be the right time, so as far as I’m concerned, it’s not even an issue.”

Community service plan for indigent defendants launches October 3

Starting Oct. 3, a new pilot program will give local judges the power to offer community service - rather than issue stiff fines and fines - to thousands of poor defendants.

On Monday, Knox County Criminal Court Clerk Mike Hammond joined with three local partners to unveil details regarding the program, described essentially as "hours per pay." It gives those unable to make any payments the option to repay their debts to society by performing community service.

WBIR 10News addressed the problem last summer in its "Fines, Fees and a Flawed System" investigation of Knox County court operations.

The review, in part, found that a handful of homeless, indigent defendants were responsible for court debts of more than $750,000 - a figure that court officials readily admit the men could never pay.

The state legislature approved the plan, which is unique to Knox County, earlier this year. It is set to sunset July 1, 2018.

10News Investigates: Handful of Knox convicts owe hundreds of thousands to court system

At that point, lawmakers will decide if it was successful and whether to implement it statewide.

The legislation allowed Hammond the opportunity to implement a community service program for those defendants who are truly unable to pay their court costs, yet able to do work.

The amount of community service a person would need to work depends on how much they owe. A program chart showed a gradual scale ranging from 8 hours for those facing up to $100 in fines and court costs to 88 hours of required service for those facing $3,000 - $4,000 in costs.

The approved partners include Knox County Engineering and Public Works, Knox Area Rescue Ministries, and Lending Angels.

The program recognizes that many of the offenders unable to pay also receive services from KARM. So a partnership with KARM could benefit the community and offender.

Lending Angels will be looking for individuals with skills and experience to help with home repairs and improvements for those with disabilities or older adults.

But not every defendant can take part. Hammond said there will be background checks on potential participants and those convicted of violent crimes, sexual offenses, and animal abuse won't be eligible.

Additional info and forms for those who are interested will be posted Oct. 3 on the Knox County Criminal Court's website.

UT football cancels city court

Ha ha, priorities.

Apparently, city court scheduled for Sept. 1 has been cancelled "due to conflicts with the University of Tennessee’s football home opener and anticipated traffic slowdowns in downtown Knoxville."

Soooo, if you were set to appear before Judge John R. Rosson Jr., you'll probably get a notification that your court date will be reset.

Armstrong seeks acquittal or new trial in federal tax evasion case

State Rep. Joe Armstrong is asking that a federal judge toss his felony tax evasion conviction or at least grant him a new trial.

A jury earlier this month found the long-time East Knoxville Democrat guilty of filing a false and fraudulent tax return, but declined to convict him on two other charges - conspiracy to defraud the United States, and attempting to evade and defeat taxes.

In court records filed Monday by Armstrong’s defense team, his attorney noted that the jury’s verdict was “inconsistent.”

MORE: Renewed motion for judgment of acquittal or new trial

Lawyer Gregory P. Isaacs said the jury shouldn’t have found him guilty of filing a false tax return if it acquitted him on attempting to evade and defeat taxes.

Isaacs argued that courts in cases where a defendant is charged with both "attempted evasion" and "filing a false return," then prosecutors “must show some distinct facts between the two in order to submit both charges to the jury.”

“In this instant case, the United States did not show any differentiation in the factual basis supporting Court Two and Count Three, rather one narrative of alleged conduct premised upon identical evidence and proof,” Isaac’s motion filed in U.S. District Court states.

Prosecutors, who have said they will seek prison time for Armstrong, have not responded to the motion.

During his week-long trial, the government contended that the 14-term state representative used his position to buy state cigarette tax stamps before an increase was passed by the state Legislature. He then sold them for a profit – about $321,000 – but failed to report tens of thousands of dollars of the income on his 2008 tax returns, prosecutors said.

The government said Armstrong worked in conjunction with his Kentucky-based accountant to hide the money from the IRS by funneling it through one of his accountant’s businesses.

The accountant, Charles Stivers, had pleaded guilty for conspiracy to defraud the United States and prosecutors offered him leniency to testify against Armstrong.

In his motion, Isaacs said the District Court “should give significant weight to the impeachment” of Stivers including “his repeated inconsistencies and false statements.”

“Based upon the credibility of Mr. Stivers, the District Court should totally disregard all of his testimony, leaving insufficient evidence to establish Mr. Armstrong acted willfully,” the motion states.

As a result of his conviction, the Knox County Democratic Party picked Rick Staples to replace Armstrong in the November general election for the 15^th District House seat. He faces independent Pete Drew.

Armstrong’s sentencing is set for Nov. 30.

State Rep. Armstrong guilty of filing false tax return; Democrats seeking replacement for November election

Joe Armstrong

Four days after winning the Democratic Primary, a federal grand jury found long-time state Rep. Joe Armstrong guilty of filing a false and fraudulent tax return.

The jury, however, declined to convict the veteran lawmaker on two other charges: conspiracy to defraud the United States, and attempting to evade and defeat taxes.

Those two offenses carried stiffer penalties - each as much as five years behind bars. Filing a fraudulent tax return, which is a felony, carries up to three years in prison and a fine of up to $250,000.

"We certainly think there was enough evidence to convict him of count one and count two but we’re very pleased with a conviction on count three," said Assistant U.S. District Attorney Chuck Atchley. "It’s a felony. He’s now a convicted felon."

Atchley said he will seek prison time for the lawmaker.

In addition, the prosecutor said, Armstrong "still owes the taxes and he’s still going to be accountable for the tax laws."

Senior U.S. District Judge Thomas Phillips sent a Nov. 30 sentencing hearing.

Armstrong and his attorney, Gregory P. Isaacs, left immediately after the verdict was announced.

In a released statement, Isaacs said: “State Rep. Joe Armstrong wants to thank all of his family, friends and constituents for their prayers and support throughout this process. Representative Armstrong is evaluating all of his available options at this time.”  

Armstrong faces an independent challengers in the November election, but that's not going to happen, according to state officials.

Secretary of State spokesman Adam Ghassemi said the felony conviction automatically disqualifies Armstrong from seeking re-election. He said the Democratic Party now has until Sept. 29 to nominate another candidate for the Nov. 8 general election.

Tennessee Democratic Party Chair Mary Mancini said the party is already looking into a replacement.

“As we have said from the start, this is a legal matter that is best left to our justice system," Mancini said ina released statement. "The justice system has now ruled and we will take whatever appropriate action necessary to remove Rep. Armstrong from office and replace him on the ballot in November.”

Armstrong spent most of last week in U.S. District Court on trial.

Rest of story HERE.

Armstrong to testify in his defense

Joe Armstrong

The federal criminal trial for state Rep. Joe Armstrong – accused of tax evasion – begins Tuesday morning and the Knoxville Democrat is expected to testify in his own defense.

During a 30-minute hearing on Monday, attorneys for both sides hammered out a number of details before U.S. District Judge Thomas W. Phillips.

Among them:

• Attorneys will get up to 45 minutes for opening arguments.
• The 12 jurors will be selected from a pool of 65 to 70 East Tennessee residents.
• Witnesses more than likely will testify only about the facts of the case and probably not touch on Armstrong’s character.
• The case will last about a week.
• Prosecutors can force Armstrong’s wife to testify so long as they don’t violate the marital privilege of confidentiality.

Prosecutors allege the longtime East Knoxville Democrat used his position to buy state cigarette tax stamps some 8-10 years ago before an increase was passed by the state Legislature. He then sold them for a profit, they allege, and failed to claim tens of thousands of dollars of the income on his taxes.

The government alleges he had help from his accountant and an unindicted co-conspirator.

The defense counters that Armstrong used a tax preparer and had no intent to defraud the government.

Armstrong, who is charged with conspiracy to defraud the federal government and tax evasion, has continued to serve in the state Legislature while his case is litigated in federal court.

He is up for election this year but faces no opponent in Thursday’s primary.

As judges waive $1.2M in fines/fees, officials look at other punishments

Knox County’s five sessions court judges have waived a little more than a combined $1.2 million in court costs, fines and fees assigned to local offenders since last September when they started their new terms in office.

And, Knox County’s three criminal court’s judges – who hear fewer cases than their peers in sessions court – have waived a little more than a combined $60,100 during the same time period.

That means a not only are lot of local defendants not paying for their crimes, but the county and state are also losing out on much-needed revenue. Local leaders, however, noted that many of the defendants probably cannot afford the costs.

"We see an awful lot of people who are chronically addicted, homeless, mentally ill," said Sessions Court judge Check Cerny.

The judges are tasked not only with handing down punishments, but also deciding who can and cannot pay court fines and fees.

"We're very, very careful," Cerny said. "we receive testimony in open court and often, we actually require affidavits (which detail a defendant's finances)." We scrutinize the evidence and make a decision based on, not sympathy, but rather whether or not it's financially prudent to continue trying to collect something that would be impossible to collect."

But, there might be something they can do about it.

When the state General Assembly meets again in January, officials are expected to talk about a proposal that would let judges waive the costs, yet subject the defendants to some sort of community service, possibly picking up trash on the side of the road, cleaning up the Tennessee River or volunteering at a non-profit.

Rest of the story RIGHT HERE.

Mubarak pleads guilty to theft

Former Knox County Trustee's Office ghost employee Ray Mubarak pleaded guilty in state Criminal Court on Thursday for bilking taxpayers out of $200,000.

He was sentenced to serve one year of a 10-year prison sentence and ordered to pay back the money. His prison term will run concurrently with his federal sentencing.

Full story RIGHT HERE.

Judges void 182 'forced' Knoxville annexations dating back years

Knox County judges have voided 182 so-called forced annexation efforts by the City of Knoxville that homeowners challenged in lawsuits, many of them dating back more than a decade ago.

The move was expected and comes after the state Legislature last year approved new law that prevents cities from annexing new areas without residents living in the targeted areas approving them move.

The new law, however, does not affect existing properties that were annexed and went through the legislative process.

“We’re not losing anything that was there, but they will now not become part of the city,” said Knoxville spokesman Jesse Mayshark. “The city won’t be getting future revenues from them that we would have, had they become part of the city.”

The court orders were signed during the past month by the county’s three chancellors, according to officials with Citizens for Home Rule, Inc., which filed the lawsuits on behalf of the residents.

“It is a great day for private property owners’ rights and a great day for liberty in Tennessee,” said John Avery Emison, the organization’s president. “We’ve worked against forced annexation for many years and winning all 182 cases in one fell swoop says a lot about the value of persistence. The Courts have ruled that all those ordinances are ‘invalid and void as a matter of law.’”

Forced annexations were prevalent during the 16 years Victor Ashe served as Knoxville’s mayor. They were less common during under his predecessor Bill Haslam and non-existent under current Mayor Madeline Rogero.

“A few of the cases originated during Mayor Bill Haslam’s term of office,” Emison said. “It feels really great for the courts to agree that we were right all along and mayors Ashe and Haslam were wrong all along,” Emison said. “The City has agreed to pay the court costs and CHR will get all its filing fees back.”

When asked about the potential loss of revenue to the city’s coffers, Mayshark said “no one ever tried to estimate how much money we’re talking about.”

“I think it’s fair to say there was substantial, future revenue there, but I don’t know how much,” he said.

9 seek open Tn Supreme Court seat

Nine men are applying to take over the Tennessee Supreme Court seat vacated last month by East Tennessean Gary Wade.

According to the Administrative Office of the Court in Nashville, the nine are: Matthew P. Cavitch of Eads; Thomas R. Frierson of Morristown; Mark A. Fulks of Johnson City; Ted M. Hayden of Gallatin; Robert D. Meyers of Memphis; Herbert S. Moncier of Knoxville; Robert H. Montgomery Jr. of Kingsport; Roger A. Page of Medina; and Larry Scroggs of Germantown.

The Governor's Council for Judicial Appointments will consider the candidates Oct. 27. The council interviews any who apply and then nominates three candidates for the governor to consider.

Gov. Bill Haslam, by order, can pick from among the three nominated or require the council to submit a panel of three additional nominees.

The chosen candidate can come from either West Tennessee or East Tennessee. The five-member court already has two justices from Middle Tennessee.

Wade, of Sevier County, retired Sept. 8 to become vice president and dean of Lincoln Memorial University's Duncan School of Law downtown.

From the Knoxville area, Moncier is among the most high profile candidates. He has practiced law for decades and his clients have included accused serial killer Thomas D. "Zooman" Huskey. He also filed litigation in the 1990s challenging then Knox County Sheriff Tim Hutchison as well as the failure of officer holders to comply with a local prohibition against serving more than two elected terms.

Moncier's ability to practice in federal court was suspended for several years but he continued to practiced in state court.

U.S. Supreme Court declines to hear Baumgartner case; matter closed

Baumgartner

The nation’s highest court has declined to hear the federal case against disgraced former Knox County Criminal Court Judge Richard Baumgartner.

The U.S. Supreme Court announced Monday that justices will not hear arguments as to whether federal prosecutors overstepped their boundaries after Baumgartner pleaded in state court.

Lawyers for the former judge had argued that the prosecutors went too far in trying to apply an arcane area of the law.

Instead, they said the matter should have remained as a state-prosecuted case.

Once convicted in federal court, Baumgartner lost his state pension.

Defense attorneys Don Bosch and Ann Short in March submitted their bid, called a petition for certiorari, to the court.

It typically takes four justices to agree to hear a case, and the court takes only a fraction of the petitions submitted to it.

In September 2014, a three-judge panel of the 6th U.S. Circuit Court of Appeals turned down an appeal by Baumgartner in what amounted to a split decision. In October, the lawyers' request for a full or "en banc" review by the appellate court was denied.

Baumgartner, who presided over such high profile cases as the Thomas D. Huskey serial killing case and the prosecution of four people in the Christian-Newsom homicides, stepped down in early 2011 as details began to emerge that he had carried on an affair with a woman in the drug court that he supervised, using her to secure prescription pills for a drug habit.

He admitted to official misconduct and received a diversionary sentence in state court. He was allowed to keep his state pension.

Then, federal authorities stepped in, securing indictments against him for what's called misprision of a felony, for which a jury convicted him in 2012. His state pension was now in jeopardy.

Misprision of a felony is an old area of the law, dating back more than 200 years in the United States. Simply put, it means someone was aware of a felony, concealed that and failed to report it to the proper authority.

It's generally been applied to circumstances when someone explicitly tried to hinder a federal investigation, Bosch and Short argued.

Since the U.S. Supreme Court declined to take up the case, the matter is officially over.

Mubarak gets 5 years in fraud case

Ray Mubarak, who authorities allege was a "ghost employee" of the Knox County Trustee's Office, was sentenced Monday to almost five years in prison in connection to unrelated federal charges of bank fraud and conspiracy.

In addition, he received three years probation to follow his release. Rest of story RIGHT HERE.

Bonding companies owe state $141K

More than a dozen East Tennessee bail bonding agencies owe the state a total of almost $141,000 because their Knox County defendants failed to show up for court, records show.

Knoxville-based Unchained is on the hook for the most at $54,500, and AA Bonding, which has regional offices, owes $32,550, according to records provided by the Knox County Criminal Court Clerk's Office.

In addition, the state is due $24,500 from the locally operated Southern Bail and another $10,150 from A and A.

Another 10 companies each were in debt to the state as of Sept. 15 for between $500 and $4,500.

Some bonding companies counter, however, that the figures do not tell the whole story.

Sean Sanford manages Sanford & Son, which dates to the 1930s. He said only a few companies owe much of the money. Sanford, who learned Friday the clerk's list showed him owing $2,000, said he quickly paid what he owed.

He also said one notice from the clerk's office was in error and that he owes nothing for the defendant.

The three companies identified as the top offenders either declined comment or could not be reached.

Rest of the story RIGHT HERE.

Allison Burchett waives right to be formally arraigned, hearing set

Allison Burchett

Allison Burchett waived her right to be formally arraigned in Knox County Criminal Court on 13 counts of identity theft, computer crimes and tampering with evidence.

A Nov. 17 status hearing has been set for Burchett, who did not appear in court Thursday.

Arraignments are held so that the court can read the formal charges against a defendant.

Seven of the charges she faces are felonies, including six identify theft charges, and one tampering with evidence charge, a Class C crime, which carries three to 15 years imprisonment. The other six charges - computer crimes - are misdemeanors.

Allison Burchett is the former wife of Knox County Mayor Tim Burchett. The two divorced in 2012.

During Thursday’s arraignment, Knox County Criminal Court Judge Steven Sword told Burchett’s attorney, David Eldridge, that he “is not a close personal friend of (Tim Burchett), but we are friends.”

Sword noted that he signed the search warrant authorities used to obtain evidence against her.
Sword told Eldridge that if Allison Burchett felt he had a conflict presiding over her case that he would listen to arguments, but that he didn’t believe there was a conflict.

Eldridge said he would discuss the matter with Allison Burchett and get back with the court.

DA establishes attendance reward pilot-program at Maynard Elementary

Charme Allen

Knox County District Attorney General Charme Allen is pleased to announce a new Attendance Reward Program where the DA’s Office Community Affairs Unit will provide new bicycles and helmets for students at Maynard Elementary School who have achieved perfect attendance for the fall or spring semesters of the 2015-2016 school year.

Allen will announce the program to students at an assembly at Maynard Elementary on Friday, August 21, at 1:45 P.M.

As part of the Truancy Reduction Initiative, the new Attendance Reward Program will hopefully create an incentive for students and give them a goal to reach throughout the year.

Evidence shows that students who regularly come to class and complete their education are far less likely to enter the criminal justice system. Missing even one day of school can be detrimental to students. This new program rewards students who go above and beyond the normal attendance policy.

The pilot program will be limited to students at Maynard Elementary but will hopefully expand to other schools in the future.

Anyone interested in donating to the Attendance Reward Program can contact Community Affairs Coordinator Jackie Myers at 865-215-2515 or jackie.myers@knoxcounty.org.

Upon taking office a year ago, General Allen launched the Community Affairs Unit in an effort to put into action the second prong of her dual goal of being “Tough on Crime, Smart on Prevention.” This innovative Unit provides a direct link between the District Attorney’s Office and the citizens of Knox County through involvement in community outreach, education of the public, and partnership with other agencies.

This Unit serves to foster communication between the District Attorney General’s Office and the Knoxville community, and ultimately, it serves to prevent crime at its source.

Outstanding Debt: fines, fees Part 3

Offenders owe $16.2 million in restitution

Susan Lynn Hoard pleaded guilty in 2000 for stealing almost $1 million in client trust accounts held by a Knoxville law firm where she worked. She spent the money on elaborate dresses, a swimming pool and a convertible.

Then-Criminal Court Judge Mary Beth Leibowitz sentenced the former secretary to 18 months in prison and ordered her to pay back more than $600,000.

Records, however, show that she’s returned about $14,500 – only 2.4 percent of the overall bill since then – and hasn’t cut a check to the victims in almost two years.

And, she’s not the only one who has fallen behind – or not made – restitution payments.

There are hundreds and hundreds of criminals convicted in the Knox County court system that owe some amount of compensation. In fact, records show that victims are due a combined $16.2 million in restitution, a figure that dates back to 1998.

Sometimes the offenders have ripped off their own company. Other times, they’ve stolen from strangers, even family and friends. They might have written a check that bounced or burglarized a house.

In some cases, the criminals have taken cars, clothes, jewelry or cash. Often times, they’ve vandalized someone’s property.

Either way, there’s roughly a hundred convicted criminals alone that owe tens of thousands of dollars each to area residents and businesses, and local leaders are growing concerned that the money – as the debts get older and older – is getting harder and harder to collect.

So concerned are they, that the Knox County Criminal Court Clerk’s Office is looking to hire a new debt collector, which officials in the office hope to have in place by Nov. 1.

What happens next is anyone’s guess.

For the rest of the story, including lists of those who owe, slideshows and more, click RIGHT HERE.

Outstanding Debt: fines, fees Part 2

The second part of our 3-day series:

Mindful of the defendants in the Knox County General Sessions Court system who have accrued years of costs and fees they cannot possibly pay, Knox County Criminal Court Clerk Mike Hammond is preparing a plan.

He said he wants to identify the people who have no hope of paying what they owe, such as the handful of homeless, indigent defendants 10News reported Monday in its investigative series "Fines, Fees and a Flawed System. " The men collectively owe more than $750,000.

Hammond also wants to single out those who have simply fallen behind or neglected what they owe and really can pay at least something. And the clerk wants to offer possible ways a defendant could work off his bill, perhaps some kind of community service.

It's all still in the "idea" stage, said Hammond, a former county commissioner who took office in September, and he first needs to come up with a detailed, specific proposal to present to Knox County General Sessions Court judges.

Knox County defendants owe millions of dollars of unpaid court costs and fees, figures show. It's not unusual for one person to owe $10,000, $20,000 or $30,000. Many defendants who are charged with a crime are already poor and rely on a court-appointed attorney for representation.

The five men profiled by 10News on Monday owe more, judges, clerks and lawyers concede, than they could ever pay. One defendant, Anthony Joe Mason, died in April, and last week a General Sessions Court judge abated his costs in a case.

"We'll go to the judges and say, We're not going to collect this. Our recommendation to you is that we forgive this debt. Let's not have it on our books. It's kinda like a bad debt in business," Hammond said.

He's also is in the process of looking for a new collection agency that can help with collections and hopes to have that firm in place in November.

Hammond oversees clerical operations for the General Sessions, Criminal and Fourth Circuit courts.

All told there's about $159 million on the books waiting to be collected in those courts, the vast amount in General Sessions and Criminal courts.

Hammond said he would be happy if he could bring in a fraction of that - $15 million or $20 million.

Rest of story RIGHT HERE.

Outstanding debt: fines, fees Part I

We started a 3-part investigation last night looking at the money owed from criminals to the county and their victims.

In the Knox County General Sessions Court system, four men notorious for having been arrested thousands of times collectively owe more than $600,000 in fines and court costs.

That's money they'll never pay back. Never.

If the amount were 10 percent of that they couldn't afford it. If it were only 1 percent - $6,000 - the public would never see a dime.

Michael Pierce, Harvey Alley, Donald Street and Aubrey McGill are the four worst offenders when it comes to people who owe the court system money, according to figures given to 10News by Knox County Criminal Court Clerk Mike Hammond's office.

A fifth man, Anthony Joe Mason, also appears on the Clerk's Office's list of worst offenders, but 10News has determined he died in April.

The defendants' bills never go down. They have been growing since the 1980s when the names of many of the five first were typed into the county's computer system.

Within all of his purview, Sessions Court, Criminal Court and Fourth Circuit Court, Mike Hammond said he faces $159 million in uncollected costs and fees. He said it's not realistic to think his office actually could collect all that money.

Rest of the story RIGHT HERE.

Smoking Joe indicted for fraud

Joe Armstrong

By now you know that state House Democrat Joe Armstrong was indicted by a federal grand jury Wednesday on charges he took part in a tax fraud scheme involving the sale of state cigarette tax stamps.

The plot dates to 2006 and continued to November 2013. (I'd make some crack about taking nine years to figure it out, but, well, no, not a good idea. Heh.)

Anyhoo, you can find a bunch of stories on our website wbir.com including HERE, HERE and HERE.

I had yesterday off, but pitched in. By that I mean, read a bunch of emails and stories as they came in and cheered on my team for getting it first AND right.

So, that means I have a bunch of stuff/statements that didn't get used, or did get used and is worth reposting, since I"m cleaning out my email.

Here ya go:

From Smoking Joe himself: This investigation has been ongoing for a number of years. I have a strong belief and respect for our system of justice. I look forward to addressing these allegations and the truth coming out in the very near future."

From his attorney, Gregory P. Isaacs, who says pretty much the same thing for all of his clients (but the dude does a pretty good job): Our firm . .  . has been conducting a parallel investigation for the past few months. Representative Armstrong has proudly served his constituents for the 15th District . . . for the past 28 years; where he has emerged as a leader in Tennessee state government. Representative Armstrong intends to enter a plea of not guilty to each and every count of the indictment. Joe is an innocent tax payer who relied upon a tax professional as it relates to the filing of his tax returns."   

From House Democratic Leader Craig: “Joe Armstrong and I have served together for over 20 years. In that time, I have never known him to be anything other than a dedicated public servant and an advocate for his community. We have a justice system in place to deal with these situations. I believe it is important to reserve our judgement until all the facts have come to light. Until then, my thoughts are with Joe and his family as this process moves forward.”

Cameron Brooks, Knox County Democratic Party chairman: “Joe’s a great guy. He’s a friend of mine. He’s been a really good ally for the working people in the Legislature. I just pray that these allegations aren’t true, and I believe that he is innocent until proven guilty. I really don’t know what else to say."

 

Brooks added that Armstrong “is someone who has your back. He comes through on his commitments, and is someone who is relatively young in politics, he’s always been there for me when I needed something – for advice, when I had a question. I appreciate that.”

 

Robert Booker, Director of the Beck Cultural Center and Community Activist: "Stunned" He added that he “admires Joe tremendously and that it is an “unbelievable accusation.”

 

Booker says he’s know Armstrong since about 1980.  His fondest memory of Joe Armstrong is when he and then-state senator Tim Burchett were instrumental in getting the Summit Hill Bridge over the James White Parkway named after him.

Carlene Malone, Former Knoxville City Council Member: “I really like Joe and he’s been a tremendous representative.  I certainly hope this is not true.”

 

Carlene says she’s know and worked with Armstrong since the 80’s.

 

She says he worked with her to fight against a proposed mass incinerator in the area.  She also says Armstrong was instrumental helping the development of the Wee Course and Lakeshore Park.

Sylvia Woods, member of the public assembly facilities board: "Joe Armstrong is my friend and my TN House Representative. He has voted over the years to advocate for his constituents and is available to the community to listen and help. I hope this unfortunate problem can be straightened out. My prayers are with his family."

Former city councilwoman Barbara Pelot: "I'm just sad. Totally stunned by the story. I didn't expect to hear that at all."

Pelot said she enjoyed working with Armstrong over the years and considered him a friend to his district and to all of Knoxville.

She said she thinks the world of Armstrong and his family and she hopes "somehow they will find that it isn't accurate."

Susan Williams, who runs her own PR firm and is a Republican Inside Tennessee panelist: "like everybody in the knoxville community i think i was shocked. You know we've all known representative armstrong for a long time. I've worked with him in the past on legislation and you know he's just been a pilar of our community.

"I hope none of us will rush to judgment on this but you know, regardless of the outcome. It certainly doesn't help your political career."

"He may decide that he resigns because he doesn't want to put everybody through this. He could decide to stay, fight it of course, I'm sure he will fight it and stay in the general assembly until there is some kind of finality."

"If he's innocent it's a really horrible thing to have to go through. If he's guilty, he's still gonna have to go through all of this playing this out in the media and in the courts and for somebody like Joe who's been so highly regarded and well respected, it's really going to be difficult on him personally and on his family and friends."

"I don't think anybody in the republican party would take any joy out of this because this is a man that we've all known and liked and respected."

"I think we were all shocked by this and frankly I hope it's not true because I like Joe Armstrong. I've respected him as a legislator because he's a man that's gotten along with both sides. you know, whatever party is in power in Nashville. he's worked with both sides."

"It's really just almost heartbreaking to see this happen. but you know, again, this is a serious charge and if it is something that he has done then it's just going to have to play itself out."

Rev. Harold Middlebrook: "I have found him to be honest with us in dealings, and so it is shocking to me. I just don't believe that, i don't want to believe that it is deliberate."