On July 5, 2004 Cody Posey killed his father, Delbert Paul Posey, his stepmother, Tyrone Schmid, and stepsister, Marelia Schmid. He first killed his stepmother, before killing his father and stepsister. Cody dragged the bodies out of the house and loaded them in the bucket of a John-Deere backhoe. Cody admitted he attempted to bury them in a nearby plot of land, but after not being able to break the hard ground, opted to bury them in a shallow grave in a manure pile. After the murders, Cody changed clothes and drove his father's truck to the store for a can of Sprite. He then drove to a friend's house staying there until his arrest.
After his arrest, Cody Posey confessed to the murders and the bodies were recovered. The trial began on January 16, 2006. Cody's defense attorney, Gary Mitchell, never denied that Cody murdered the family - instead he suggested the murder happened as a result of years of abuse and dissociation. On February 7, 2006, Posey was convicted of first degree murder in the death of his stepsister, second degree murder in the death of his stepmother, and voluntary manslaughter in the death of his father. On February 23, 2006, Cody was sentenced by Judge Counts as a juvenile and is to remain in the custody of juvenile authorities until he reaches the age of 21.
On September 25, 2006, Cody was named in a wrongful death lawsuit filed by attorney Jack Thompson on behalf of the surviving Posey relatives. Also named were Grand Theft Auto creator Rockstar Games, publisher Take-Two Interactive and PlayStation 2 manufacturer Sony. The lawsuit alleged Posey was trained by the video game Grand Theft Auto: Vice City to be more aggressive, and a more effective killer. On December 19, 2007, Jack Thompson’s lawsuit against Sony and Take-Two was thrown out by a New Mexico judge. The judge dismissed Jack Thompson’s wrongful death suit since neither Sony or Take-Two have offices in New Mexico.