Spokane7
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May 7, 2010 in City
Prosecutor alleges police officer’s divorce was fraudulent
Spokane Police Officer Karl F. Thompson Jr. divorced his wife to shield his assets and force taxpayers to foot the bill for his criminal defense, the federal prosecutor in the Otto Zehm case alleged in court documents filed this week.
Assistant U.S. Attorney Tim Durkin filed a motion asking U.S. District Court Judge Fred Van Sickle to allow the government to tell the jury in Thompson’s upcoming trial about the divorce agreement, which Durkin called a “fraudulent transfer” under Idaho law.
Thompson’s attorney, Carl Oreskovich, called the fraud allegation “unsubstantiated.”
What’s more, he said, federal agents are pressuring other Spokane Police officers to testify against Thompson by continuing to investigate their roles in the 2006 confrontation that resulted in Zehm’s death.
“I think they are trying to put incredible pressure on this defendant to not exercise his right to go to trial,” Oreskovich said. “I think the government is putting pressure on any witness who is potentially exculpatory for Karl Thompson.”
Zehm, a mentally ill janitor, was confronted by Thompson and other police officers in a North Division Zip Trip on March 18, 2006. He was beaten with a baton, shocked with a Taser and hogtied for 17 minutes before he stopped breathing; he never regained consciousness and died two days later.
Durkin could not be reached for comment; he has repeatedly refused to comment about any aspect of the case.
But he wrote in the motion filed this week that “There is evidence to raise the presumption that (Thompson’s) unopposed divorce was a fraudulent transfer of assets made to protect (Thompson) from a judgment in the civil case … and made for the purpose of fabricating non-existent faux divorce financial obligations that would make defendant eligible for appointment of counsel at public expense.”
Thompson, who faces federal felony charges of using excessive force and lying to investigators, filed for divorce on Sept. 3, 2009, after a $2.9 million civil rights lawsuit had been filed on behalf of the estate of Otto Zehm by the public interest law firm Center for Justice.
As part of the divorce, Thompson gave his wife of 38 years all interest in the couple’s log home on 2 acres in Hayden, which was listed for sale last year for $675,000.
The agreement also calls for the ex-wife to receive half of Thompson’s retirement plan through the city of Spokane and all of his money in a deferred compensation plan. The agreement also requires Thompson to pay for all community debts and give his ex-wife $1,500 a month in spousal support for life.
The house is no longer for sale and Thompson continues to live there rent-free, Durkin said in the court filing.
He argued that under Idaho law Thompson’s transfer is fraudulent because it was made to an insider; it was made after Thompson had been sued; it included substantially all his assets and Thompson became “insolvent.”
Durkin wrote, “If Thompson puts his character at issue, then the jury is entitled to hear the facts of Thompson’s divorce and fraudulent transfer because they directly implicate his character for truthfulness.”
But Oreskovich, who has filed a motion seeking to exclude any mention of the divorce, denied his client engaged in a fraudulent transfer to his ex-wife.
“I’m not going to get into the circumstances of Karl Thompson’s divorce, but I will say there is no evidence whatsoever that supports Mr. Durkin’s unsubstantiated allegations,” Oreskovich said.
Kootenai County Prosecutor Barry McHugh reviewed Durkin’s allegations, which he said are part of civil law.
“Based on what I read in the (Durkin) briefing, I don’t see anything that rises to the level to request an investigation as a criminal matter,” McHugh said Friday.
The dispute over the admissibility of the divorce details is just one of many motions brought by both sides, which the judge must decide in a hearing on May 17.
Another hotly contested issue is Durkin’s request to be allowed to show the jury a 3-dimensional, computer-animated re-creation of the Zip Trip store and the confrontation between Zehm and Thompson, which was captured by four surveillance cameras.
The animation was created in two stages, according to court records. In the first stage, the Special Projects Unit of the Federal Bureau of Investigation made detailed measurements of the convenience store and the locations of the four surveillance cameras. Based on those measurements, technicians created a virtual model of the store that was built to scale, Durkin said in court records.
For the second phase, Chris Villa of Vital Distractions inserted individual frames from the security videos and layered digital versions of Thompson, Zehm and Officer Steve Braun Jr. Villa then went frame by frame and created “for each of the four camera angles a version of the animation that superimposes the actual video footage over the animation,” Durkin wrote.
Oreskovich has sought to exclude the animation partly because it purports to show a 3-dimensional image based on 2-dimensional camera footage.
“I think the government has taken great liberties in terms of filling in the blanks of what’s not shown on the video,” Oreskovich said. “It’s … a re-creation that is not supported by evidence. It’s inflammatory and in my view designed to prejudice the jury and prevent Karl Thompson from getting a fair trial.”
Closing Geiger: Wise or worrisome? 
west on May 07 at 6:55 p.m.
He is a crook , no doubt about it..divorce his wife on paper and still live with her..typical city of Spokane gov cop…….bilking the public and the poor of Spokane. They are better than us..they think they are superior to us…they are OUR SERVANTS!!!
boredstupid on May 07 at 8:08 p.m.
crooked ass murderer belongs in prison with the rest of the criminals
chevgrls on May 07 at 9:12 p.m.
No one knows for sure what is going on between him and his now Ex wife, After 38 years of marrige to him I would have divorced him and took everything from him too…
Albert on May 07 at 9:18 p.m.
There’s a motorcycle SPD who lives across from our tract in the “high rent” district. His home is “about” $600K and it appears that a “police officer” can well afford this upper class lifestyle. Why?
I find it very discouraging to read of the ever-present crime, corruption, lies, and anti-social behavior that is continually demonstrated by those who work for the SPD. This ongoing abuse is without excuse and virtually EVERY member of the SPD is guilty by association. By their lack of integrity, conscience, and self-governance the remaining “innocent” rank & file are in the same category as this deplorable employee. From the Chief down to the newest employee, there can be no excuse for these ongoing crimes. Cover up, buried, ignored, and conveniently overlooked. I feel like I live in Nazi Germany.
It’s discouraging and I personally feel nothing but disgust for the entire police force and fire department of Spokane. Why do we have to pay taxes to support these anti-social, crime ridden and morally bankrupt persons? Can’t anything be done to solve this ongoing problem??
SugarShane on May 07 at 9:24 p.m.
What a dink!
misjustice on May 07 at 9:25 p.m.
I hope that Mr. Durkin’s motion is granted. I believe that the evidence of Thompson hiding his net worth is relevant information that the jury should hear; it points to his character, or relative lack of it.
Thompson is lower than pond scum; first the use of lethal force, and the restraints used against Mr. Zehm which ended up causing the death of Mr. Zehm, and second the shielding of his assests in order to make the tax payers foot the bill for his legal defense.
Disgusting actions by Thompson all the way around…throw the book at him!
Mr_Bloggy on May 07 at 9:40 p.m.
Feds will eviscerate Thompson. Oreskovich has no chance.
misjustice on May 07 at 9:49 p.m.
Hey, Mr. Bloggy…hope that you are correct. And I think the word eviscerate is well used here; it’s not a word that one can easily use, you did it expertly!
vistadome on May 07 at 10:48 p.m.
Looks like Karl the Klubber is digging one deep hole for himself. The SPD police union is in the bottom of that hole too.
No_Forked_Tongues on May 07 at 11:01 p.m.
An attaboy for Durkin…Ride em hard..
Now I wonder if the feds held off on this whole shebang in order to let the SPD Murderers tie more nooses around their necks. If the Feds had rushed into this 4 years ago the SPD piggies wouldnt have had much time to cover up, lie, conspire and do their dirty work under the sheets.
Difference between Post Falls cops and SPD cops? Post fall cops go Bar Hopping and SPD cops go night clubbing.
I sure hope when this is all over there are 7 or 8 piggy hides dried and hanging from the front of the Federal Court house.
Be advised next monday there is Police Accountability rally in front of City Hall. Maybe Onetime Mayor Verner might read about it in the paper.
PlanB on May 08 at 12:17 a.m.
Speechless…. almost.
Karl Thompson, who murdered Otto Zehm, continues to amaze me.
This is exactly like the Jim Crow south, where people (the self-appointed righteous), could get away with murdering people with impunity.
I’m a lifelong Spokane resident and often find myself defending the supposed lack of tolerance and diversity in the area. The facts are that other than a few non-local nutcases in North Idaho, the area is very tolerant.
But here we have a clear case of murder, which is being defended at public expense. Clearly, we have no effective representation. I can never defend the actions of our representatives and am embarrassed to be a part of a community that tolerates this.
For once, we should be thankful that we have multiple government - the locals won’t do anything, but the feds will.
mikeln on May 08 at 5:27 a.m.
If some junked out meth head kicks in your front door I bet you all would dial 911 faster then the speed of light. Not everyone on the SPD is bad.
Pat O'Leary on May 08 at 5:43 a.m.
Don’t forget, he is still on OUR payroll making somewhere around $80 or $ 90,000 per annum….yet he can’t afford his own attorney? Normally, I wouldn’t consider someone in this income bracket so destitute that the public should be paying to defend his criminal activities. I’m not familiar with police pensions, but I would guess that his will be in excess of $50,000 a year…….He can’t borrow enough to pay his own lawyer? Absurd!
Don’t the honest cops of Spokane understand what this dirt-bag does to their image? He is dragging them down into the gutter because of his evil behavior. Most cops are good people but, unfortunately, you are known by the company you keep, and supporting him, destroys them also.
Charlie on May 08 at 7:01 a.m.
If the Zehm lawsuit was filed “before” Thompson filed for divorce wouldn’t that make the transfer null and void for the civil suit?
Thompson is lower than pond scum, he is whale poop and that’s on the bottom of the ocean.
Ron_the_Cop on May 08 at 7:20 a.m.
Pat OLeary,
I do understand your anger. If you’ve read the other Otto Zehm threads I am not at all supportive of the PD re the Zehm case. From a police policy, procedure and tactics this was very wrong. Now we are learning that initial statements and reports do not reflect the truth - Asst. Chief Nicks and his accounts to the media. There remain issues of proper police policy, procedure and training that involve the police administration that are not being discussed. Are they being dealt with so this doesn’t happen again? Is police administration be held accountable or are we simply making Ofc. Thompson the scapegoat for a failure of management.?
Never the less as a former police union president, a police employer must represent an officer in court actions unless it can be determined that an officer was acting outside the course and scope of his employment - knowingly doing criminal activity. This is not the case here, Ofc. Thompson did not set out to kill Otto Zehm. From a conflict of interest issue though my association through its members’ dues provided legal representation through our state labor organization just to avoid issues of a city not acting in the best interest of the officer.
Police work sometimes is confrontational. If every time an officer acts they must be concerned about being sued/charged for their action, they will be reluctant to act.
Again I’m in no way condoning the actions of Spokane PD in the Zehm case.
ChefGus/ John Olsen on May 08 at 8:31 a.m.
missed a day on the paper…. read this same article posted as “new news” above here and there were minimal comments… why oh why cannot the comments be moved..or just leave the article intact and move it forward…. it is a Not TOO subtle form of Editorializing to keep up this pattern…. Oh this is a “complaint” from a consumer who pays for this service….good grief.. j
No_Forked_Tongues on May 08 at 9:38 a.m.
How can you tell a SPD cop is lying? His lips are moving, he is writing a sworn statement, he is in court or he is swinging a baton.
Chef gus is correct. Some simple technical corrections to the S-R’s insidious removal, non-inclusion policy is just that. Policy. We can put men on the moon 40 years ago, but the S-R cant modify existing stories.
You know they spent more on covering up the River Park square attrocity than they do on ink.
SugarShane on May 08 at 10:37 a.m.
Ron- “Thompson did not set out to kill Otto Zehm.”
Really? What purpose do baton strikes to the head serve then?
At least you didnt bring up that other case you always attach to anything Otto.
Ryan Pitts on May 08 at 1:04 p.m.
@ChefGus - Yes, having two versions of stories on different days, both with comments, is a frustrating thing. It in no way reflects some sort of editorializing on the newspaper’s part, though.
Here’s the problem: We also post breaking news online as soon as possible on the web. We also have paying subscribers, who should be able to expect to see every story from the print edition when they look at that day online. That’s how we end up, to use this story as an example, with one version published May 7 and one published May 8.
To solve the problem you’re describing (and trust me, we’ve talked about it), we coud:
- not publish breaking stories, which of course is a non-starter.
- not publish the print version of any story already published online, which again, because of our subscribers, is a non-starter.
- change the publication date on the May 7 story to May 8. This would have the side effect of breaking any links someone had made to the story in the meantime, though. Not particularly web-friendly. This shuffle also would have to be done at midnight, every single day, when the print edition goes to press and stories are sent to the web. This presents a resource problem.
- reassign the comments from the May 7 story to the May 8 story. This presents a problem when someone goes to a URL where they KNOW they left a comment, but suddenly it’s gone. We already get complaints for comments that we DIDN’T move, so you can imagine the issues this would create. And again, this presents a resource issue.
- duplicate the comments from the May 7 story to the May 8 story. This would leave the comments on the breaking news version if anyone had already linked there, but also push the conversation into the print version. The side effect here is creating comments from a user at a URL where they didn’t personally leave them, but I don’t foresee TOO much trouble with that.
Of these possibilities, only the last one presents a tenable solution. So the issue is with resources. Of all the things we could be doing, I’m not convinced it’s the best use of our resources to find someone to check in at midnight, every night, because their *might* be comments that ought to be carried forward. Stack up manual processes like this, and you unavoidably start eating into how much actual content you can produce.
We might be able to come up with an automated way to match up breaking stories with their print counterparts the next day. (The headlines will never match up, but for the most part, the first paragraph or so in the body text should.) It wouldn’t be a perfect system - there would certainly be misses - but it might be an improvement.
Like I said, we know this is a frustrating issue. But we’re not hiding anything, we’re leaving comments where they were published originally. Hopefully this gives you a little background on why our system is the way it is. It’s a frustration for us, too.
Ron_the_Cop on May 08 at 1:05 p.m.
Here’s the other comment thread:
http://www.spokesman.com/stories/2010/may/08/officer-accused-of-using-divorce-to-hide-assets/
misjustice on May 08 at 2:33 p.m.
………..Police work sometimes is confrontational. If every time an officer acts they must be concerned about being sued/charged for their action, they will be reluctant to act………….
First, the comment above is so true. What if officers don’t show up because some dumb *** just might sue/charge them? I wouldn’t want their job!!!!
Second, why give up everything? If I were in his shoes, I would sign it all over to the ex also. I would want my children taken care of & if the ex got it all, so be it. There isn’t one of you here that wouldn’t do the same thing he did. And, living with the ex? If he is broke then he needs to live somewhere. Why not with her?
Third, I’m glad I’m not going to court! You have made this man guilty and have not only sent the lynch mob for him, but you have joined that mob. Where/when have you all seen the facts in this case? Have you listened to both sides? No. None of you have.
I’m sure those that are slinging hate towards all officers have been in jail or had run-ins with the law. I hope someday you need them for something & they tell you no, I might be sued because I trespassed on your property.
hammer1969 on May 08 at 4:35 p.m.
Durkin’s only motive is revenge…remember he’s the one that got arrested for DUI by Spokane Police back in the mid 90’s.
Ron_the_Cop on May 08 at 6:16 p.m.
Hanner1969,
Now that’s interesting. BTW the feds aren’t all that pure either.
Mr_Bloggy on May 08 at 7:25 p.m.
And it was Karl Thompson who arrested Durkin! Oh wait. It wasn’t?
(yawns)
eagleproducer on May 08 at 9:40 p.m.
mikeln: Yeah, I’d call 9/11… so they could come get a dead or dying meth head from out of my home!
Grammy: You’ve removed all doubt concerning the identity of the moderator for the “Fans of Karl the Klubber” Facebook page! I’m surprised you find any time at all to post online considering how deep your nose is buried in the boyz in blue backsides. Oh, and I’ve never been in jail and my Dad’s only brother was a cop for over thirty years.
hammer1969 on May 08 at 10:43 p.m.
mr bloggy do you know Durkin or Thompson?
(yawns)
ChefGus/ John Olsen on May 10 at 8:09 a.m.
Ryan… thank you for your considerate and considerable explanation… i am not a whiz with computers.. but it seems like you are trying to make it more seamless…. best regards johh
Ron_the_Cop on May 10 at 12:51 p.m.
Ryan,
DITTO what ChefGus said. I try to post cross links when a considerable discussion gets going on a hot topic across several article threads.
Perhaps you could empower/ask some “volunteers” in certain subject areas to do this on a regular basis. Kinda of use the user group to do this for you similar to how wikipedia works.