Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 27, 1993 TAG: 9307270189
SECTION: VIRGINIA PAGE: C1 EDITION: STATE
SOURCE: LON WAGNER STAFF WRITER
DATELINE: LENGTH: Medium
Paul A. Henson, 29, of Penhook, and nine other people were charged with operating a marijuana distribution pipeline between Texas and Southside Virginia. The indictment alleges the group brought about 2,500 pounds of marijuana, with a street value of $7 million, into Virginia between 1989 and 1993.
The U.S. Attorney's office alleges that the illegal drug conspiracy grew as the defendants used profits from the sale of one controlled substance to set up different illegal operations.
"We had information that suggests that they'd do one marijuana deal and use the proceeds for something else," Assistant U.S. Attorney Joe Mott said.
The still found in January at a house Henson was renting in Pittsylvania County contained 36 800-gallon pots. Federal authorities were persuaded two months later to get involved in the case when they heard what else was found at the property in Cool Branch: a small cache of high-powered weapons, a couple pounds of marijuana and a small amount of cocaine.
"There were two parallel investigations going," Mott said, "one into the still and the drugs found at the still and the other into the marijuana coming in from Texas."
Local authorities familiar with moonshine operations said when the still was discovered that it would take a significant amount of financial backing to set it up. The shed covering the still, the amount of ingredients needed to make the illegal whiskey and the distillery's components were estimated to cost at least $65,000.
The indictment released Monday estimates the distillery could have made 4,300 gallons of untaxed whiskey per run - or enough liquor to bypass $4.3 million in state and federal taxes in a year.
The indictments sought by the U.S. Attorney's office were handed down last week, but were made public Monday. The illegal operations, other than making moonshine and selling marijuana, included running poker houses in Henry County, money laundering and manufacturing amphetamine, Mott said.
Indicted in addition to Henson were:
Luther Reeves Sigmon, 38, of Route 6, Bassett, with conducting a criminal enterprise, conspiracy to manufacture amphetamine, possessing marijuana with intent to distribute and five money-laundering offenses.
Henson, Sigmon, Simon Urinas Lopez, of Dallas; Herman Dale Grogan, 40, of Eden, N.C.; Dickie Lee Pulliam, 45, of Moneta; Steven Wayne Henson, 34, Paul Henson's brother; James Ray Beal, 48, of Bassett; Ace Franklin Prater, 54, of Martinsville; Lala Simmons Strader, 53, of Danville; and Edward Arnold Easter, 37, of Martinsville were charged with conspiracy to distribute marijuana and cocaine. Each of them could be sentenced to life in prison.
Paul Henson was also charged with four offenses relating to operating the illegal distillery, two additional counts of possession of marijuana with intent to distribute, five counts of making false statements to obtain a firearm and use of a firearm in relation to trafficking drugs.
Another man, Michael James Rigney, 21, of Chatham, was charged with two counts of possessing and operating a distillery, but was not charged in the drug trafficking cases.
Memo: shorter version ran in the Metro edition.