Late mental health issue delays Benchmark trial

June 28--A last-minute claim of mental health issues for one defendant in the Benchmark Capital Investments fraud case has led a federal judge to postpone the trial from July to September.

A second defendant has formally entered a plea of guilty to her role in the case. The actions occurred in separate proceedings on Friday.

Five women and one man who were affiliated with the now defunct Benchmark firm have been charged with various fraud offenses.

The company's CEO, Charles D. "C.D." Candler, shot himself to death before the investigation by three federal agencies was concluded. He is named as an "unindicted co-conspirator."

In a pretrial conference on Friday, U.S. Magistrate Judge Bruce Guyton approved a post-deadline motion by attorney Greg Isaacs that allows a possible mental health issue as part of the defense of his client, Bryan K. Murphy. The judge was clearly not happy at the belated filing and pressed Isaacs to explain.

"Are you telling the court that (in all the time you have represented Murphy) you only learned of this in June? Yes, or no?"

"Yes," Isaacs said.

"That strikes us as implausible," said Assistant U.S. Attorney Frank M. Dale Jr., who is prosecuting the case.

Isaacs said he only learned of Murphy's mental health issues -- depression, manic behavior and indications of paranoia -- during a recent conversation he had with Murphy and another person. Isaacs immediately arranged a battery of tests by a forensic psychologist, whose report he filed along with his motion, both under seal.

Dale said many of the psychologist's findings were based on "nothing but self-serving statements by Mr. Murphy and his father," some of which "are patently false."

Isaacs said the issue is not Murphy's competence to stand trial, but his mental state at the time of the offenses.

Murphy, who was once the pastor of a small Baptist church, is charged with conspiracy to commit money laundering and conspiracy to commit mail and wire fraud. The indictment alleges that he planned and directed various fraudulent activities at Benchmark.

Because Isaacs has raised the mental health issue, the government needs time to exercise its right to have Murphy examined by a psychologist of its own choosing. That led Guyton to reschedule the trial from July 15 to Sept. 8. He pointedly said it was the earliest available date. While Murphy has the right to develop his case, he said, the other defendants and the public also "have a right to a speedy trial."

In a separate proceeding, Tiffiny Thompson, who was general manager of Benchmark's office and, according to the indictment, trained by Murphy, appeared before U.S. District Judge Tom Varlan and pleaded guilty to one count of conspiracy to commit mail and wire fraud.

According to the agreement, Thompson "knew that no investor funds were being invested with insurance companies," and that she "facilitated the operation of Benchmark through the preparation and mailing" of documents "intended to mislead investors." The plea agreement includes a provision describing her offense as between that of a "minimal participant" and "minor participant."

Earlier this week, defendant Dona Rector, who was a mortgage broker, pleaded guilty to conspiracy to commit wire fraud. Her sentencing is set for Oct. 30 at 2 p.m.

Besides Murphy, remaining defendants are Joyce Allen, owner of a Louisville, Tenn., accounting firm; her employee, Kay Thomas; and mortgage broker Paulynn Wright.

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