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FOR IMMEDIATE RELEASE:

Thursday - April 29, 2004

WILMINGTON - Acting United States Attorney George E. B. Holding announced that JAMES ARDELL CANADY, CHARLES G. CANADY, and REGGIE W. CANADY were sentenced in federal court in Wilmington, N. C., on Tuesday, April 27, 2004, for conspiracy, drug, and firearm violations. Senior U. S. District Judge James C. Fox imposed the following sentences:

JAMES ARDELL CANADY, 47, of 208 Mattocks Road, Mayesville, N. C.--360 months imprisonment, a fine of $6,000.00, and five years of supervised release. Also, he forfeited $13,651.00 to the government.

CHARLES G. CANADY, 42, of 417 Foxtrace Village, Sneads Ferry, N. C.--242 months imprisonment and five years of supervised release. Also, he forfeited $625,470.00 to the government.

REGGIE W. CANADY, 31, of 101 Mattocks Road, Maysville, N. C.-- 295 months imprisonment and five years of supervised release. Also, he forfeited $226,854.00 to the government.

The three brothers were indicted by a federal grand jury sitting in Raleigh on October 15, 2002, and charged with conspiracy to distribute and possess with intent to distribute cocaine base (crack); possession with intent to distribute cocaine base (crack); and using and carrying a firearm during and in relation to a drug

trafficking offense. Also, JAMES ARDELL CANADY was charged with one count of distribution of cocaine base (crack).

On December 10, 2003, JAMES ARDELL CANADY pled guilty as charged (four counts). CHARLES G. CANADY was convicted on two counts on September 19, 2003, following a jury trial. REGGIE W. CANADY was convicted as charged (three counts) on December 17, 2003, following a jury trial.

Evidence developed during the investigation disclosed that the CANADYs based their crack cocaine operation in Belgrade, N. C. On May 9, 2002, the Onslow County Sheriff's Office executed a search warrant at 101 Mattocks Road, Maysville, N. C., the residence of REGGIE W. CANADY. Agents seized crack cocaine, firearms, and $226,854.00 in cash. A second search warrant was executed on a storage unit in New Bern, N. C., which was rented to CHARLES G. CANADY. Agents seized $625,470.00 in currency from the unit.

Investigation of the case was conducted by the N. C. State Bureau of Investigation, the Onslow County Sheriff's Office, the Jacksonville Police Department, the Craven County Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U. S. Attorney Eric Evenson handled the sentencings for the government.

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