U.S. Judge Charged With Accepting Gifts for Efforts to Aid Drug Case Suspect

A federal grand jury Thursday indicted chief U.S. District Judge Walter L. Nixon Jr. of Mississippi on charges of accepting a royalty interest in three oil and gas wells from a businessman in return for trying to influence the outcome of a drug smuggling case against the man’s son.

Nixon, appointed to the bench 17 years ago by former President Lyndon B. Johnson, is only the third federal judge indicted for acts tied to his office. He was also charged with three counts of perjury in connection with his testimony to the grand jury that indicted him. He pleaded not guilty and was released on his own recognizance.

But sources familiar with the case said that Nixon, chief judge of the Southern District of Mississippi, attempted to strike a deal with the government by offering to plead no contest if he could resign without further penalty--a proposal that the Justice Department reportedly rejected.

Bell His Former Attorney

Nixon’s attorney, Walter F. Goodman Jr. of Jackson, Miss., did not return a reporter’s calls. Former Atty. Gen. Griffin B. Bell, who sources said once represented Nixon in the case, could not be reached either.

At Nixon’s request, his cases were turned over to other judges, said Charles Clark, chief judge of the U.S. 5th Circuit Court of Appeals. Clark said he did not terminate Nixon’s salary.

“I commend Judge Nixon for his prompt concern for the public integrity of the court,” Clark said, adding that he has asked Chief Justice Warren E. Burger to appoint a judge to preside over all further proceedings involving Nixon, 56.

Nixon’s indictment is the latest in a series of federal corruption allegations against Mississippi officials and agencies.

The grand jury charged that on Feb. 25, 1981, Nixon accepted the oil-gas royalty interest from Wiley Fairchild, a Hattiesburg, Miss., businessman whose son, Drew, was being investigated in a 1980 marijuana smuggling conspiracy. According to the indictment, Nixon “frequently and persistently urged” Wiley Fairchild’s attorney that he be placed in the oil and gas investment with Fairchild.

$60,000 Payment

So far, Nixon has received more than $60,000 in mineral royalties from the wells, which are still producing--”far more than any consideration” he agreed to pay for them, the grand jury said. In a public statement last year, the judge denied any wrongdoing and said he purchased the interest “as a normal and straightforward business transaction.”

The grand jury charged Thursday that Nixon backdated three promissory notes, totaling $9,500, to Fairchild to make it appear that he had agreed to pay that sum more than a year before the notes actually were prepared. Nixon was also accused of going along with backdating the royalty interests to make it appear that he received them a year earlier than he had.

The perjury counts stem from Nixon’s denial that he discussed Drew Fairchild’s drug case with Wiley Fairchild or with Paul H. (Bud) Holmes, then the district attorney of Forrest County, Miss., and from his statement that he “never had a thing to do with” the case.

Influence Charged

The grand jury said Nixon “had sought to influence the case by asking state prosecutor . . . Holmes to do what he could for Drew Fairchild and thereby handle the case in a way that would please Wiley Fairchild.”

If convicted of accepting an illegal gratuity, Nixon could be sentenced to two years in prison and fined $10,000. Each of the three counts of perjury carries a maximum punishment of five years in prison and a $10,000 fine.

Wiley Fairchild was indicted last year on perjury and illegal-gratuity charges. He pleaded guilty to giving Nixon an illegal gift and is awaiting sentencing.

Holmes, who was charged with four counts of perjury and one of obstruction of justice, pleaded guilty to a lesser charge of contempt of court, which he incurred before the same grand jury. He is to be sentenced next month.

Drew Fairchild, who pleaded guilty to drug conspiracy charges brought by the same grand jury, is serving a six-month sentence in federal prison.

The other federal district judges indicted in connection with their duties were Alcee Hastings of Florida--who was acquitted of bribery charges in 1983--and Harry Claiborne of Las Vegas--who was convicted last year of willfully failing to report $106,000 on his federal income tax returns.