In the predawn hours of
October 28, 1967, Newton was stopped by Oakland police officer John Frey, who attempted to disarm and discourage the Panther patrols. But after fellow officer Herbert Heanes arrived for backup, shots were fired, with all three individuals wounded. Frey was hit four times and died within the hour, while Heanes was in serious condition with three bullet wounds. With a bullet wound to the abdomen, Newton staggered into the city's Kaiser Hospital. He was admitted, but was later shocked to find himself chained to his bed.
Accused of murdering Frey, Newton was convicted in September 1968 of "
voluntary manslaughter", and was sentenced from 2 to 15 years in prison. In May 1970, the California Appellate Court reversed Newton's conviction and ordered a new trial. The State of California dropped its case against Newton after two subsequent mistrials.
While Newton was imprisoned, his party's membership had declined significantly in several cities. The
FBI, which deployed the counter-insurgancy tactics of operation
COINTELPRO (including the spreading of disinformation and the out-right assassination of BPP members), had actively campaigned to eliminate the Black Panthers' 'community outreach' programs such as free breakfasts for children,
sickle-cell disease tests, free food and free clothing. Funding for several of the programs was raised courtesy of the only independent commerce in the area: drug dealers and prostitution-ring leaders. Bobby Seale later wrote about his belief in Newton’s involvement and attempted takeover of the Oakland drug trade, further claiming that Newton attempted to 'shake down' pimps and drug dealers; as a result, a contract was taken out on Newton’s life. This story, however, was never proven. It is suggested that such mutual paranoia between the long-time friends and party co-founders, Seale and Newton, was created by
J. Edgar Hoover and the FBI. The FBI sent what became known as the "brown" letters — fabricated letters (often bearing death threats) seemingly written by Panthers. The ensuing fear triggered sharp declines in membership, and the eventual failure of the Party.
In 1974, several charges were filed against Newton, and he was also accused of murdering a 17-year-old prostitute, Kathleen Smith. Newton failed to make his court appearance. His bail was revoked, a bench warrant was issued, and Newton's name was added to the Federal Bureau of Investigation's 'most wanted' list. Newton had jumped bail and escaped to
Cuba, where he spent three years in exile. He returned home in 1977 to face murder charges because, he said, the climate in the United States had changed, and he believed he could get a fair trial. Because the evidence was largely circumstantial and not solid beyond hearsay, Newton was acquitted of Smith's murder after two trials were deadlocked.