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Federal Grand Jury Returns 48-Count Indictment Against Logan Business Owner
HUNTINGTON, WV—United States Attorney Charles T. Miller announced today that a federal grand jury sitting in Huntington, West Virginia returned a 48-count indictment against Joseph Cleveland Ferrell, 62, of Chapmanville, West Virginia and Southern Amusement Co., Inc., of Logan, West Virginia, charging the defendants with violations of federal law in connection with racketeering, illegal gambling, mail fraud, bribery, obstruction of justice, social security fraud, and tax charges. The Indictment also includes forfeiture counts seeking at least $5 million.
The Indictment, returned on June 3, 2009, was unsealed today by the Court. Additionally, today the Court unsealed a 2005 search warrant and a temporary restraining order. If convicted, Ferrell faces the following possible penalties:
Count |
Charge |
Penalties |
| 1 |
RICO
18 USC § 1962 (c) |
20 years / $250,000 |
| 2 |
Illegal gambling in Kentucky
18 USC §1955 |
5 years / $250,000 |
| 3-24 |
Interstate travel in aid of racketeering
18 USC § 1952 |
5 years / $250,000 for each count |
| 25-28 |
Honest services mail fraud
18 USC §§ 1341 & 1346 & 2 |
20 years / $250,000 for each count |
| 29 |
Bribery
18 USC § 666 |
10 years / $250,000 |
| 30-35 |
Mail fraud
18 USC §§ 1341 & 2 |
20 years / $250,000 for each count |
| 36-37 |
Obstruction
18 USC § 1503 |
10 years / $250,000 for each count |
| 38 |
Aiding and abetting Social Security fraud
42 USC §§ 408(a)(2) & 18 USC 2 |
5 years / $250,000 |
| 39-44 |
Failure of operator of gambling devices to register
15 USC §1173 |
2 years / $250,000 for each count |
| 45-48 |
Failure to collect, account for and pay over
employment taxes
26 USC §7202 |
5 years / $250,000 for each count |
Assistant United States Attorneys Hunter P. Smith Jr. and Larry R. Ellis are handling the prosecution. The Internal Revenue Service, Criminal Investigation Division, Federal Bureau of Investigation, West Virginia Legislature’s Commission on Special Investigations, the Social Security Administration and the West Virginia State Police jointly conducted the investigation.
**PLEASE NOTE: An Indictment is merely a formal accusation; it is not proof of guilt, and the defendants are presumed innocent until and unless they are found guilty.
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