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The trial date for Dresden Attorney Harry
Max Speight, who is charged with 12 counts
of theft of property, has been set for
Monday, January 28, at 9 a.m. Local court
officials have recused themselves from being
involved in the case, because of their
longtime professional relationship with
Speight. For this reason, the Administrative
Office of Courts has appointed Senior Judge
Allen Wallace of Waverly, Tennessee, to hear
the case. Prior to being appointed by the
Tennessee Supreme Court as one of four
senior judges on February 1, 2003, Judge
Wallace formerly served as Circuit Court
Judge of the 23rd Judicial District, which
includes Cheatham, Dickson, Houston,
Humphreys and Stewart counties.
The Administrative Office of Courts
appointed District Attorney Joseph Baugh of
Franklin, Tennessee to serve as prosecutor.
Speight, who has been practicing law in
Weakley County for approximately 35 years,
and has been considered a highly respected
and trusted legal attorney in the banking
and finance community, will be represented
by Memphis Attorney Christopher Sullivan.
The charges against Speight came as quite a
shock to the local attorney’s peers and the
many clients he has served over the years.
Specifically, these charges involve the
handling of his clients’ accounts dealing
with what are known as 1031 exchanges. A
1031 Exchange refers to Section 1031 of the
U.S. Internal Revenue Code, which allows
investors to defer capital gains taxes on
the exchange of like-kind properties. This
is a way for owners of business and
investment real estate to sell their
property and buy other like kind property
without paying the capital gains tax. These
transactions are known as deferred
exchanges, or 1031 exchanges and allow the
investor to continue his investment in
another property without losing investment
equity to taxes. Essentially, he is accused
of mishandling these accounts while under
his control for personal use and benefit.
The initial charges were filed following an
investigation by the Tennessee Bureau of
Investigation, which involved the
confiscation of a number of files found in
Speight’s office. When the allegations
against Speight came to light in early 2006,
the case was bound over to the May term of
the Weakley County Grand Jury, which
returned a true bill, thus sending it to the
Circuit Court. General Sessions Judge
Tommy Moore arraigned Speight on theft
charges on Monday, November 27, totaling
$1.1 million.
The 12 counts are listed below according
to indictment number, rather than
chronologically as follows: (1) On
February 1, 2006, Speight is charged with
depositing $492,578.20 into his personal
account, which was intended for James and
Joyce Tuck of Martin. The affidavit states
that this money was the proceeds of an
investment sale and was intended for
reinvestment by the Tucks. Speight allegedly
exercised control over this money without
the knowledge or consent of James and Joyce
Tuck. This money was used to pay Red Panther
Fuel and Food, Inc. various attorneys and
the Speight law firm.
(2) Another affidavit states that on
March 3, 2006, Speight deposited a $334,007
check into his trust account, which was
intended for Martin businessmen Van Swaim
and Larry Kelly. This money was the proceeds
of sale of investment property and was
intended for reinvestment by Swaim and
Kelly. Speight was to hold the money as a
1031 Exchange. However, the affidavit states
that Speight instead spent the money without
the effective consent of Swaim and Kelly.
(3) On May 15, 2006, Speight received a
check in the amount of $189,971.75 from
Ricky Stutts, which Speight transferred into
his trust account on June 6. The money was
then dispersed to numerous entities
including Red Panther Fuel and Food, Inc.,
various law firms and to Speight’s business
account. The affidavit states that Speight
used Stutts’ money without his knowledge or
consent. (4) Speight is charged with
taking money from Claude and Ronnie Perkins
of Dresden totaling $49,256.21, after they
deposited these funds with the Dresden
attorney on September 25, 2006. This money
was an investment sale and was supposed to
be held by Speight as a 1031 Exchange. The
affidavit charges that Speight used the
money for his own personal gain, without the
consent of Claude and Ronnie Perkins. (5)
On September 28, 2006, Martin resident
Belinda Overman deposited $69,900 with
Speight to be used to purchase a home.
However, the check was returned due to
insufficient funds. The affidavit alleges
that Speight spent the money for his own
personal use without the knowledge or
consent of Overman. (6) James Sadler filed
an indictment during September of 2006 for
theft of property over $10,000.
(7) Linda Adams filed an indictment in
October of 2006 for theft of property over
$60,000. (8) William S. Edwards filed an
indictment for theft of property over
$10,000 in February of 2006. (9) Joyce
Tuck filed an indictment in October of 2006,
which alleges that Speight signed a check in
the amount of $220,974.62, knowing that at
that time there were not sufficient funds
in, or on deposit with the drawee bank.
(10) James Tuck filed an indictment in
October of 2006, which was for a check
allegedly written by Speight in the amount
of $212,484.22. (11) Van Swaim and Larry
Kelly filed an indictment against Speight in
September of 2006 for allegedly passing a
check in the amount of $335,000 against
their account.
(12) The final indictment was filed
against Speight by Rick and William Stutts,
who alleged that the Dresden attorney did
“unlawfully, knowingly, feloniously and with
fraudulent intent, issue and pass a check
for the purpose of obtaining credit and
forbearance from them, the principal of the
payee of the check, in the face amount of
$189,871.75, made payable to Hogancamp Law
Firm . . . knowing at the time that there
were not sufficient funds in, or on deposit
. . . for the payment in full of the check,
as well a all other checks or orders
outstanding at the time of issuance.” The
next development in the case came when a
letter issued by the Board of Professional
Responsibility of the Supreme Court of
Tennessee dated December 1, 2006, announced
that Dresden Attorney Max Speight’
attorney’s license had been temporarily
suspended effective November 30, 2006. The
letter noted that the Supreme Court of
Tennessee issued an order summarily and
temporarily suspending Harry Max Speight’s
license to practice law upon finding that
Mr. Speight had misappropriated funds to his
own use.
The order precluded Mr. Speight from
accepting any new cases effective on that
same date. It stated that he must also cease
representing existing clients effective
December 30, 2006. After that time, Speight
was ordered not use any indicia of lawyer,
legal assistant, or law clerk nor maintain a
presence where the practice of law is
conducted.
The court order further restricted Mr.
Speight from making any withdrawals from any
trust account, unless approved in writing by
a trustee designated by the Supreme Court.
The order provided that any funds tendered
to or received by Mr. Speight shall be
deposited in a trust funds account from
which withdrawals may only be made with the
written approval a trustee to be designated
by the Supreme Court of Tennessee. Further,
the order served as an injunction, enjoining
financial institutions maintaining an
account against which Mr. Speight may make
withdrawals from making further payment from
any account or accounts on any obligation
except with the written approval of a
trustee to be designated by this court.
The order also required Speight to notify
by registered or certified mail all clients
being represented in pending matters, as
well as co-counsel and opposing counsel of
the Supreme Court’s order suspending his law
license. Section 18 of Supreme Court Rule 9
requires Speight to deliver to all clients
any papers or property to which they are
entitled.
Additionally, the letter noted that this
suspension would remain in effect until
dissolution or modification by the Supreme
Court. However, it added that Speight could
for good cause request dissolution or
modification of the suspension by petition
to the Supreme Court. Speight remains free
on a $50,000 property bond until his court
date. |
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