Treasurer Shoffner To Plead ‘Not Guilty’ To Extortion Charge, No Plans To Resign

An attorney for embattled State Treasurer Martha Shoffner (D) said she will plead not guilty to a charge of “Extortion Under Color of Official Right under the Hobbs Act” and Shoffner said she has no plans to immediately resign from office.

Shoffner was arrested on Saturday (May 18) and held in the Pulaski County jail overnight. On Monday (May 20), details of her arrest and the allegations she faces were released.  You can read the criminal complaint here.

She faces extortion charges stemming from numerous cash payments she received for a campaign watch party, rent payments, and cash received over a period of time beginning in the fall of 2009.

A confidential informant – apparently a person from whom she was getting payments – showed up at her house with a $6,000 payment on Saturday. The cash was rolled up and placed into a pie box. During the meeting the informant gave the money to Shoffner, then left. The FBI then arrested Shoffner.

It was part of an alleged pattern of providing $6,000 cash stipends to Shoffner routinely at six-month intervals from the informant, which the criminal complaint suggests was a broker from a company receiving an unusually high amount of business from the Treasurer’s office.

Appearing in court on Monday, Shoffner was wearing a black pants suit and white shirt and was released on her own recognizance.

Both U.S. Attorneys, Chris Thyer and Conner Eldridge, were in court as part of the hearing, but the case was filed in the Eastern District, which is Thyer’s province.  Prosecutors said Shoffner could face up to 20 years in prison and be fined $250,000.

Shoffner’s attorney, Little Rock lawyer and former U.S. Attorney Chuck Banks, said his client will plead not guilty.

Describing her last few days as “tough,” Banks said, “Even a constitutional officer is innocent until proven guilty.”

Calls for Shoffner’s resignation were widespread throughout the day. Attorney General Dustin McDaniel (D) said she should step down as did Democratic gubernatorial candidates Bill Halter and Mike Ross. Sen. Mark Pryor (D) and Democratic Party of Arkansas chairman Will Bond also called on Shoffner to step down.

Dennis Milligan, a Republican candidate for State Treasurer, and the Arkansas GOP said she resign immediately.

Gov. Mike Beebe (D) said at a Monday afternoon press conference that he thought Shoffner should resign immediately.

Resignation could prove tricky, however. Part of Shoffner’s release today included language that she “has to continue to seek or maintain employment.”  When asked if she planned to resign, Shoffner told reporters, “Not at this moment.”

Indications are that Shoffner is financially troubled, which may have led to her predicament.

The Arkansas Constitution does prescribe measures for removing a constitutional officer from office.  Article 15 of the Arkansas Constitution outlines grounds for impeachment.

It says that all state officers “shall be liable to impeachment for high crimes and misdemeanors, and gross misconduct in office; but the judgment shall go no further than removal from office and disqualification to hold any office of honor, trust or profit under this State.”

It also states that impeachment, “whether successful or not, shall be no bar to an indictment.”

There are two methods for impeachment. One allows the House of Representatives to call for impeachment, while the State Senate would try the case. The Arkansas Supreme Court Chief Justice would preside over the impeachment proceedings.

Also, the Governor “upon the joint address of two-thirds of all the members elected to each House of the General Assembly, for good cause, may remove the Auditor, Treasurer, Secretary of State, Attorney General, Judges of the Supreme and Circuit Courts, Chancellors and Prosecuting Attorneys.”

Below is a video of U.S. Attorney Thyer’s press conference today outlining the charges being brought against her.