NEWS RELEASE
UNITED STATES ATTORNEY'S OFFICE
WESTERN DISTRICT OF VIRGINIA

John L. Brownlee
United States Attorney
Heidi Coy
Public Affairs Specialist BB&T Building
310 1st Street, S.W., Room 906
Roanoke, Virginia 24011
(540) 857-2250
FAX (540) 857-2180

May 24, 2007

FORMER HENRY COUNTY SHERIFF PLEADS GUILTY TO A FELONY COUNT OF LYING TO FEDERAL AGENTS IN CONNECTION WITH AN ILLEGAL DRUG TRAFFICKING AND MONEY LAUNDERING SCHEME

United States Attorney John L. Brownlee, FBI Special Agent in Charge Charles J. Cunningham, DEA Special Agent in Charge Shawn A. Johnson, and Virginia State Police Superintendent Steve Flaherty announced today that former Henry County Sheriff Harold Franklin Cassell, age 69, of Axton, Virginia, has plead guilty to making false statements to a federal agent in an effort to hide his involvement in an illegal narcotics and money laundering scheme. Cassell admitted that he lied to investigators about his role and knowledge in attempting to launder $7,000 of known drug proceeds. Cassell also acknowledged that he lied to investigators about knowing that a member of his force was illegally selling cocaine. At the conclusion of today’s proceedings, former Sheriff Frank Cassell was adjudicated a convicted felon.

“Frank Cassell violated the public’s trust and his oath as a member of law enforcement,” said Mr. Brownlee. “With today’s guilty plea, Frank Cassell has been held responsible for his criminal conduct.”

The plea was entered pursuant to a written plea agreement in United States District Court in Roanoke before Senior U.S. District Judge James C. Turk. The maximum statutory penalty for this violation is five years in prison and a fine of $250,000. The United States intends to seek a significant sentence against the former Sheriff.

SAC Charles J. Cunningham stated, “The police are put in place to ensure the public trust. When that responsibility is violated the FBI must intervene. This was another example of great partnerships between the FBI, the Virginia State Police, the Drug Enforcement Administration, and the United States Attorney's Office."

“Former Sheriff Cassell repeatedly violated the trust of the people of Henry County by his illegal actions. His guilty plea ends a sad chapter in this investigation and will hopefully allow the citizens to renew their trust in law enforcement,” said Shawn A. Johnson, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division.

According to evidence presented by Criminal Chief Thomas J. Bondurant Jr., on March 22, 2006, Harold Franklin Cassell met with a Special Agent from the Federal Bureau of Investigation. At that time, Cassell stated that he had no knowledge of illegal drug trafficking and money laundering activities involving current or former members of the Henry County Sheriff’s Office. In reality, on February 23, 2006, then Sheriff Harold Cassell met with former deputy James Vaught. During the meeting, Vaught told Cassell that Vaught had $10,000 he had received from selling drugs while he was a Henry County Sheriff’s Deputy and needed help giving the money the appearance of legitimacy. Cassell agreed to launder Vaught’s drug money and give the $10,000 of known drug proceeds the appearance of legitimacy by cosigning for a loan for Vaught. Cassell agreed to co-sign a loan for Vaught and then counseled Vaught to deposit small amounts of cash from the drug proceeds into a checking account to pay off the loan. Cassell knew Vaught was a drug dealer and that the money laundering scheme was illegal.

After discussing ways of making the drug money appear legitimate and agreeing to take out the loan, the following conversation took place between Vaught and Cassell:

Vaught: “I can do that. I like that idea, which means I, which I still be payin’. . . it back with the same money, though.”

Cassell: “Exactly. . . but you’d be paying the bank instead of me.”

Later in the conversation, Cassell agreed with Vaught never to mention the existence of the money derived from illegal drug distribution. The following conversation took place:

Vaught: “[S]o basically we would just kind of forget that I ever told you it was drug money.”

Cassell: “We’d forget all about this . . . .”

In an interview with agents on March 22, 2006, Cassell made the following false statements when asked if he knew the source of James Vaught’s money:

Cassell: “I, he obviously needed money.”

Agent: “But he couldn’t use the money he had.”

Cassell: “That’s what, he told me that.”

Agent: “Okay. But did he ever tell ya’ exactly where it came from?”

Cassell: “No.”

Cassell: “I would rather, I would rather lose a hundred thousand dollars than to think that one penny of that money was paid back with drug money.”

Under Mr. Brownlee’s leadership, the United States Attorney’s Office and federal and state law enforcement have taken a strong stand against public corruption. Since 2001, over 36 individuals have been prosecuted and convicted for allegations involving public corruption.

The case was investigated by Special Agent Mark Austin of the Virginia State Police, Special Agent Stan Slater of the Federal Bureau of Investigation, Special Agent Ron Bonaventura of the Drug Enforcement Administration, and Special Agent David McKinney of the United States Postal Inspection Service. Criminal Chief Thomas J. Bondurant, Jr. and Assistant United States Attorney Andrew Bassford prosecuted the case.