Indictments of Former Attorney David Henry Stacking Up

Remember David P. Henry Sr., the former Little Rock attorney accused of draining the trust fund belonging to the heirs of Little Rock architect Joe Swaffar?

If so, you might also remember that Henry, 69, was also indicted in October on three counts of tax evasion.

Since then, a new indictment has superseded the original and added 32 counts of mail fraud tied into the Swaffar trust case.

Now Henry is accused of transporting the funds — about $1.6 million — into federally insured financial institutions.

He moved the money without advising his beneficiaries of the total payout or telling them he spent more than $300,000 of it on himself.

The indictment describes some of the methods Henry allegedly used in defrauding the Swaffars, such as:

  •  Setting up bank accounts which only Henry could access and drawing money from the trust fund for things like his own health insurance, electric and TV bills, mortgage and so on;
  •  Buying a $500,000 annuity in the name of the Swaffars and then drawing from it for himself;
  •  Telling the Swaffars that he was investing trust proceeds in oil and real estate when he was not;
  •  Claiming to pay himself a salary of $2,000 a month when the trust document didn't provide for this; and
  •  Using $296,000 of the funds to purchase his home in Little Rock's Pleasant Valley neighborhood.

Henry also allegedly refused to deliver his accounting of the trust fund and, when pushed, responded with threats of legal action.

Bank Steps In

It gets worse: First Service Bank of Greenbrier now wants to foreclose on some of Henry’s properties.

First Service said in a suit it filed in Pulaski County Circuit Court that Henry owed about $136,000 from a loan he had defaulted on in December.

The bank wants all its collateral, which includes two houses, two vehicles and interest in Patsco, a company Henry allegedly owns.

However, Henry still owes the Swaffars a $1 million judgment imposed on him by Judge Wendell Griffen in 2010.

Mark Riable, attorney for the Swaffars, is pushing for the court to rule that the Swaffar judgment takes priority over the bank’s claim.

John Wesley Hall, Henry’s attorney, said the cases will likely be consolidated.

Henry’s first court date is July 8.