 |
Department of Justice United States Attorney Julia C. Dudley Western District of Virginia |
|---|
CONTACT: Brian McGinn PHONE: 540-857-2974 FAX: 540-857-2179 EMAIL: Brian.McGinn@usdoj.gov www.usdoj.gov/usao/vaw |
PAIR LINKED TO MOONSHINING OPERATION SENTENCED
Margaret Smith To Serve 12 Months and One Day, Jody Smith Sentenced to 48 Months
ROANOKE, VIRGINIA -- A pair of Southwest Virginia residents with ties to a Halifax County moonshining operation learned the consequences of lying to a Federal Grand Jury yesterday when each was sentenced to periods of incarceration on perjury and other charges.
“The production of liquor is a dangerous pastime, one that must be monitored and regulated to ensure the safety of those who produce these products and those who consume them,” United States Attorney Julia C. Dudley said today. “Individuals who lie, under oath, to the Federal Grand Jury are attacking the very foundation of our justice system. This case should serve as an example to others that perjury is a serious offense and anyone who chooses to deceive the grand jury will be prosecuted.”
In September 2008, Margaret Rigney Smith, 58, of Sandy Level, Va., and Jody Alton “Duck” Smith Sr., 62, of Glade Hill, Va., were tried together for their roles in an illegal moonshining operation in Halifax County. Yesterday, however, the two appeared separately in Federal Court to receive their sentences.
Margaret Smith, who was the titled owner of the parcel of land on which the four, 1,200-gallon stills were housed, was sentenced to 12 months and one day of incarceration and two years of supervised released. She was also ordered to forfeit the Halifax property where the stills were located.
Jody Smith, who was proven at trial to be the individual who managed the stills, was sentenced to 48 months of incarceration and three years of supervised released. He was also ordered to pay $1,400 in special assessment costs and restitution totaling $227,550. He was further ordered to forfeit $70,000 found hidden in his attic and three vehicles that were used during the liquor operation.
Following a seven day trial in September of 2008, a jury sitting in Roanoke, Va. found Jody and Margaret Smith guilty of numerous criminal acts related to an illegal liquor operation run by Jody, and others, operated on property titled in the name of Margaret Smith.
Jody Smith was sentenced for one count of conspiring to violate the travel act and to produce and receive untaxed liquor, one count of being in possession of an unregistered still, one count of failure to give bond, one count of unlawful production of distilled spirits, one count of theft of government funds, one count of perjury and seven counts of violating the travel act.
Margaret Smith was sentenced one count of conspiring to violate the travel act and to produce and received untaxed liquor and one count of perjury.
During the trial, Assistant United States Attorney Sharon Burnham provided a plethora of evidence tying Jody and Margaret Smith to the illegal liquor stills in Halifax County. Burnham introduced numerous video clips showing Jody Smith, along with others, routinely coming and going at the still property. Evidence was also presented that showed Jody Smith purchased large quantities of sugar, one-gallon plastic jugs and caps for those jugs. One witness testified that he traveled to Franklin County from Philadelphia to buy illegal liquor from Jody Smith.
AUSA Burnham was also able to prove that the property on which the still sat was purchased by Jody Smith, but that Margaret Smith agreed to title the property in her name and facilitate the payments for the property, she did this with full knowledge of the illegal activities taking place there. Both defendants falsely claimed before the grand jury that a person named Jones was responsible for the illegal liquor operation, which AUSA Burnham proved was false at trial.
Others involved in the conspiracy included John David Fralin, Danny Walter Davis, Jarman Johnson and Terry Lynn Smith. Fralin was sentenced to 30 months incarceration earlier this year. Terry Smith was sentenced to 21 months incarceration. Davis received 24 months of probation for his role in the conspiracy and Johnson is scheduled to be sentenced on August 4, 2009.
The investigation of the case was conducted by agents with the Virginia Alcohol Beverage Control Board and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and investigators with the Dept. of the Treasury Alcohol and Tobacco Tax and Trade Bureau. Assistant United States Attorney Sharon Burnham is prosecuting the case for the United States.