by JEFF MANNING
A federal jury has ruled an “investigative blogger” defamed a central Oregon attorney in a case that raises questions about press protections and the nature of the press itself in the Internet age.
The jury found that Crystal Cox, a real estate agent and blogger from Eureka, Mont., defamed Kevin Padrick when she accused him of tax fraud, bribery and other crimes.
Padrick was awarded $2.5 million.
Cox’s scathing criticism stemmed from Padrick’s time as trustee of Summit Accommodators, a Bend-based financial firm that collapsed in late 2008 amid charges of fraud.
Federal prosecutors have charged the four senior executives of the company with fraud and other charges, claiming they conspired to take millions of dollars from their clients.
A bankruptcy judge in early 2009 appointed Padrick and his firm, Obsidian Finance, trustee of Summit. His job: try to gather as much money as possible for Summit’s customers.
Cox became convinced the real story was not the alleged fraud, but rather Padrick and his conduct as trustee. In a number of websites, with domain names like ObsidianFinanceSucks.com, Cox repeatedly blasted Padrick and Tonkon Torp., the Portland law firm that represented him in the Summit matter.
“I’m trying to expose the corruption in the Summit bankruptcy,” Cox said Tuesday. “I was telling other people’s story as a journalist and I was denied media standing.”
Cox’s key source for information on Summit and Padrick was Stephanie DeYoung, a Bend CPA who happened to be the daughter of Mark Neuman, the former Summit CEO who was ultimately indicted, she said.
The Oregonian for more
(Thanks to reader)