A woman filed suit in Benton County Circuit Court against her estranged husband, alleging he defamed her when his lawyer sent a letter to a Wisconsin bank.
Russell Potter and Kristen Potter married in 2010, and Russell Potter filed for divorce in May 2016 with Kristen filing for divorce the next day. The divorce proceedings are still winding their way through the courts.
Russell Potter, of Garfield, owns the real estate company Granite Business Park LLC and The Concerned Group Inc., a Christian publishing company. Kristen Potter, in her suit filed by attorney Kevin Hickey of Fort Smith, maintains she has rights to compensation for a share in those companies.
Kristen Potter, who lives in Wisconsin, said her husband — through his attorney Robert Pedigo of Cooch & Taylor of Wilmington, Delaware — sent a letter April 5 to Westbury Bank that accused Kristen Potter of “misappropriation, conversion/embezzlement, theft and fraudulent concealment” of funds that belonged to his businesses.
In the letter, Russell Potter and his attorney alleged that Kristen Potter persuaded Hallmark to send her The Concerned Group’s royalty checks, money that she then deposited into her personal account at Westbury Bank.
The court had a standing order that prevented either Potter from using or disposing of funds that were being contested in the divorce, other than funds used for regular business purposes. Kristen Potter filed a contempt charge against Russell Potter on May 21, and Benton County Circuit Judge John Scott found Russell Potter in contempt and ordered him to return more than $114,000 to his estranged wife and pay $1,500 in legal costs.
Kristen Potter said the letter to her bank amounted to defamation and caused harm to her reputation and mental hardship. The bank removed funds from her account, which Kristen Potter said caused hardship for a few weeks before Russell Potter was ordered to return the funds.
She asked for unspecified compensatory and punitive damages as well as attorney fees.
The couple’s divorce hearing is scheduled to continue later this month.
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