United States Attorney James T. Jacks
Northern District of Texas

MONDAY, AUGUST 23, 2010
http://www.usdoj.gov/usao/txn/

LAW ENFORCEMENT ARRESTS FIVE IN LUBBOCK AREA
FOR ALLEGEDLY RUNNING DRUG “SMURFING” CONSPIRACY

Defendants Made Multiple Purchases of Pseudoephedrine to
Use in Illegal Production of Methamphetamine

LUBBOCK, Texas — A 428-count federal indictment, returned by a grand jury in Lubbock, Texas, last week, and unsealed today, charges eight area residents with various offenses related to their operation of a “smurfing” conspiracy, announced U.S. Attorney James T. Jacks of the Northern District of Texas. On Friday, August 20, 2010, law enforcement arrested five individuals charged in that indictment; two other defendants are already in custody. Gary Alan Jones remains a fugitive from justice. Clandestine methamphetamine laboratory components and precursor chemicals, methamphetamine, pseudoephedrine and a short-barreled rifle were seized during the arrests.

Charged with one count of conspiracy to possess pseudoephedrine with the intent to manufacture methamphetamine and to manufacture, distribute and possess with intent to distribute 500 grams of more of methamphetamine are:

Gary Alan Jones, 48, of Lubbock
Kathy Jolee Allen, aka "Kat," 35, of Lubbock
Danny Jack Allen, 42, of Lubbock
Shannon Ailene Nolan, 25, of Lubbock
Dee Je Estep, aka "Scout," 32, of Lubbock
Kelly Joann Spruiell, 35, of Lubbock
Lonnie Ray Warren, aka "Latch," 48, of Meadow, Texas
Gordon Michael Rives, aka "Hippie," 39, of Lubbock

Kathy Jolee Allen and Lonnie Ray Warren are in custody on other charges; the remaining defendants, with the exception of Gary Alan Jones, were arrested on Friday. Those arrested will make their initial appearances this afternoon before U.S. Magistrate Judge Nancy M. Koenig.

In addition to the conspiracy charge, each defendant faces additional substantive charges of possession of pseudoephedrine with intent to manufacture methamphetamine; Gary Alan Jones faces 55 of those counts; Kathy Jolee Allen faces 78; Danny Jack Allen faces 11; Shannon Ailene Nolan faces 89; Dee Je Estep faces 34; Kelly Joann Spruiell faces 35; Lonnie Ray Warren faces 24, and Gordon Michael Rives faces 95. Each count of possession of pseudoephedrine with intent to manufacture methamphetamine carries a maximum statutory 20-year sentence. Rives is also charged with two counts of being a convicted felon in possession of a firearm, one count of manufacturing methamphetamine, one count of possession of firearms in furtherance of a drug trafficking crime and one count of possessing body armor by a violent felon.

The indictment alleges that beginning in December 2008, the defendants would “smurf,” that is, make multiple purchases from multiple pharmacies, of small legal amounts of pseudoephedrine, a chemical used to manufacture methamphetamine. During the course of the conspiracy, the defendants possessed and distributed approximately 1033.46 grams of pseudoephedrine with the intent to manufacture 500 grams or more of methamphetamine. In addition, one or more of the defendants would acquire lithium batteries, anhydrous ammonia and other products used to manufacture methamphetamine.

The indictment further alleges that Gary Alan Jones would purchase pseudoephedrine and collect pseudoephedrine purchased by other “smurfers.” He would also acquire anhydrous ammonia, lithium batteries, and other products used to manufacture methamphetamine, and provide those items to methamphetamine cooks. The conspirators would reimburse the “smurfers” for the pseudoephedrine and other products they purchased with cash, methamphetamine derived from the “cook” and by other means.

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, each defendant faces a sentence of up to life in prison.

The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas Department of Public Safety - Criminal Investigations Division.

Assistant U.S. Attorney Dick Baker of U.S. Attorney’s Office in Lubbock, is prosecuting the case.

###