Rep. Joe Armstrong of Tenn. is being accused of profiting from his office in a tax scam of sorts.  The state legislature passed an increase on the state’s tobacco tax, but that increase did not go into effect right away.  Armstrong borrowed $250,000 and bought the ta stamps at the old price and then sold them after the new tax went into effect.  According to state sources, he was not the only one.  The state sold 9 million dollar’s worth more than usual.  Armstrong’s return on the stamps came out to about $750,000.

Armstrong’s lawyer,  Gregory Isaacs, made the case in court that his client had done nothing wrong and that he had just taken bad advice from his accountant.  The accountant, Charles Stivers, has entered into a plea agreement which the details from have not been divulged.  Stivers claims he processed the deal in exchange for 15% to cover the cost of the taxes.  Stivers did not pay the taxes and pocketed the money instead.   Prosecutors say that Armstrong should have paid 30% in taxes on the profits.

From The Washington Times:

District Judge Thomas W. Phillips agreed with prosecutor Charles Atchley’s argument that the 68-year-old retired caregiver had been “disengaged” during jury selection and that she would have had difficulty following a complex tax case.

“I have to have good jurors on this case,” Atchley told the judge.

Isaacs had argued that his client, who is black, deserved to be tried by a jury of his peers and there was no legitimate reason to exclude the juror.

Armstrong became Knox County’s youngest commissioner in 1982, and was first elected to the state House in 1988. A former president of the National Black Caucus of State Legislators, he is tied with two other lawmakers as the longest-serving members in the lower chamber of the Tennessee General Assembly.

Prosecutors said they expect to wrap up their portion of the trial by Thursday, which is also when Tennessee holds its primary election. Armstrong faces no Democratic opponent, but his political future hinges on the outcome of the trial.