Tuesday, March 31, 2015, 1:23 pm News Flash Archive

Dr. Arnold Smith filed for bankruptcy last Friday, March 27th.

Then yesterday, he stopped the civil lawsuit against him which was set for trial by removing it to the Federal District Court. Smith claims that his bankruptcy proceedings, as well as numerous "constitutional" issues involved in the civil suit, justify taking the case away from Judge Breland Hilburn and moving it into the federal court system.

Local attorney Lee Abraham had filed suit against Smith after Smith was arrested on March 29, 2012 and later indicted for, among other things, conspiracy to murder Abraham by hiring a hit man to kill him. After nearly two and a half years of wrangling, that civil trial was set to take place July 20th.

Now that trial will be put on hold as the federal courts decide whether to keep Smith's case out of state court.

Meanwhile, Dr. Smith was found to be delusional and mentally incompetent by Chancery Court, and was committed to the State Mental Hospital at Whitfield. He will not stand trial for his criminal charges because the court found him mentally unfit to do so.

One of the alleged hit-men was killed and the other injured in the shoot-out that took place late Saturday evening, March 28th, 2012 at Abraham's law office. None of the surviving persons charged have been tried.

Smith's bankruptcy petition, filed under Chapter 13, may be viewed here: Arnold Smith Bankruptcy Filing

Smith claims that he has assets of between $1 million and $10 million. He claims liabilities of between $500,000 and $1 million.

The bankruptcy petition was signed by Smith's wife, Mary K. Smith, who has a power of attorney to act in his behalf. Interestingly, the POA which is attached to the bankruptcy petition purports to have been executed just six days before Smith was arrested.

Smith's list of creditors may be viewed here: Bankruptcy Creditors

Along with Abraham and several banks, Smith claims that he owes his wife and a company domiciled at her residence in Jackson. The amounts of the liabilities are not set forth in the papers filed so far.

Smith's notice of removal to the federal court may be viewed here: Abraham v. Smith removal

John Pittman Hey
The Taxpayers Channel

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