Shaffer Wins Judgement

Although a $199,979 judgment was ordered against former Rose Law Firm lawyer Allen W. Bird III on Aug. 29 for fraudulent billing in a bankruptcy case, he has yet to pay it. r

But the owners of Northwest Financial Express Inc. may soon see a small part of the millions they believe they’ve lost since they were forced into bankruptcy in 1986. An order is now pending before the federal court that will abandon the remaining $151,027 in the bankruptcy estate and any claims against Bird held by the estate. r

Once signed, the remaining cash and Bird’s debt will be turned over to Larry Shaffer, president of the former Fayetteville money-order processing company. Shaffer is anxious for the case to settle and disappointed that the bankruptcy judge didn’t force Bird to pay the judgment to the estate. Shaffer declined to elaborate on how he might force Bird to pay up. r

Robert Fussell, the former federal judge handling the $8.5 million Chapter 11 reorganization of Northwest Financial, said in July 2001 that Bird “knowingly committed fraud” and “misconduct of the highest order” while serving as the trustee of the bankruptcy estate. Bird was also personally ordered to pay a $330,000 legal bill owed to the Wright, Lindsey & Jennings law firm for representing him and the Rose Law Firm in an appeal of Fussell’s ruling, which was later affirmed by U.S. District Judge Jimm Hendren.r

Shaffer and partner Greg Moldenhauer have since gone on to form National Financial Services Inc., a prepaid debit card company based in Fayetteville.r