Miriam Claire Shultz

Everett Leon Stout

An older couple from Jackson County, Ala., has been arrested on extortion charges after filing false liens against area businesses, Capt. L.G. Owens, the investigation division commander for the Oxford Police Department, said.

A lien is a form of security interest that can secure a payment of debt or other obligation of a property. The couple allegedly carried out the fraud in Calhoun County, where Oxford is located.

Miriam Claire Shultz, 67, of Rainsville, turned herself in Sept. 2 after her common-law husband, Everett Leon Stout, 72, of Scottsboro, was arrested on Aug. 29. Both are being charged with 14 counts of extortion, second degree. Shultz is being charged with attempted theft of properties, first degree, as well, Owens said.

Additionally, both Stout and Shultz claim they are "sovereign citizens," meaning that they do not acknowledge or abide by state or federal law, although the term has no legal standing. Sovereign citizens are known for rejecting most forms of taxation and promoting financial schemes. Some sovereign citizens are classified as domestic terrorists.

The duo was discovered after a local resident called law enforcement saying that a sovereign citizen was filing made-up liens. Owens said that at that time an undercover officer was sent in to determine what the couple was doing.

Owens said the Oxford police have dealt with Stout before in similar incidents.

"He is known to this agency from past dealings," Owens said. "He's not unfamiliar to us."

Stout's bail was set at $210,000, and Shultz's bail was set at $240,000. Both have court dates scheduled for Oct. 9.

Owens said the investigation is ongoing.

For complete details, see tomorrow's Chattanooga Times Free Press.