HENRY COUNTY SHERIFF'S OFFICE UNDER INVESTIGATION; 20 INDICTED

Cassell, Keaton ordered released on $25,000 bond

Henry County Sheriff H. Frank Cassell was ordered released on $25,000
bond Thursday afternoon following his arrest earlier in the day in
connection with an alleged racketeering conspiracy.

Under terms of the bond, Cassell will be allowed to return to work
but he cannot discuss the case with his co-defendants or county or
sheriff's office employees, Judge Magistrate Michael F. Urbanski
ruled. Cassell, Maj. James Keaton and 18 others were indicted Tuesday
by a federal grand jury in connection with the alleged conspiracy,
the U.S. Attorney's Office in Roanoke said Thursday.

Keaton also was released on $25,000 bond. According to a release from
the U.S. Attorney's Office, the alleged conspiracy included
distribution of illegal drugs, theft of drugs and firearms under the
custody of the Henry County Sheriff's Office; money laundering; and
obstruction of justice.

Thirteen of the defendants are current or former employees of the
county sheriff's office.

The 48-count indictment was issued by a grand jury in Abingdon on
Tuesday. A grand jury indictment is not an indication of guilt. It is
the grand jury's determination that enough evidence exists to hold a
trial. The alleged illegal activities included drug distribution,
money laundering and stealing property that was in the custody of the
Henry County Sheriff's Office, U.S. Attorney John Brownlee stated in
the release. When some of the defendants were confronted by
investigators, they allegedly lied, he added.

According to the indictment, since 1998 some sworn officers,
employees and associates of the sheriff's office allegedly engaged in
a continuous scheme to steal narcotics, firearms and other contraband
from the seized evidence property room. Cocaine, crack cocaine,
marijuana and firearms allegedly were taken, and the drugs and guns
allegedly were resold back into the community, the release states.

The grand jury also has alleged that several defendants stole seized
firearms and other contraband for their personal use. "Those who
betray the public trust insult the integrity and honor of all police
officers who risk their lives upholding the law," said Shawn A.
Johnson, special agent in charge of the Drug Enforcement
Administration's Washington Division. "DEA joins with the Virginia
State Police, the Federal Bureau of Investigation and the U.S. Postal
Inspection Service to send a clear message that their disgraceful
acts will never be tolerated." "Police officers who believe they are
above the law are acting lawlessly, and this can never be tolerated,"
said FBI Special Agent in Charge Charles Cunningham.

The grand jury has charged that on March 4, 2005, agents from the
DEA's Philadelphia office notified DEA agents in Roanoke that an
express mail package containing two kilograms of ketamine was being
delivered to a residence in Martinsville, according to the release.
Ketamine is a sedative/date rape drug.

DEA agents made a controlled delivery of the ketamine to the
Martinsville home and arrested [name redacted] and charged him with
illegal possession with intent to distribute ketamine, the release
states. [name redacted] cooperated and told investigators that the
home to which the drugs were delivered was a rental property owned by
James Alden Vaught, a sergeant with the sheriff's office, the
indictment states. Reed said he paid Vaught in cash and ketamine to
use the residence as a drug drop, according to the indictment.

[name redacted] also said he helped Vaught sell two kilograms of
cocaine that Vaught allegedly seized from a drug dealer while on duty
with the sheriff's office, the release states.

[name redacted] alleged that Bradley Scott Martin, a deputy with the
sheriff's office, had been jointly using and selling ketamine and
steroids for about eight years, the release states.

Vaught resigned from the sheriff's office in March 2005 and agreed to
cooperate with federal investigators the following July, the
indictment states. Vaught confirmed the allegations made by [name
redacted] and also revealed that the rental property in Martinsville
was used by several officers for extramarital sexual relations, the
indictment and release state. Vaught further said that he, Martin and
David Allen King, a vice officer and school resource officer with the
Henry County Sheriff's Office, engaged in several illegal
transactions involving the distribution of cocaine, crack, marijuana
and steroids, the release and indictment state. The grand jury
alleges that King, who once supervised the sheriff's office vice
unit, took drugs seized by the office and falsified destruction
orders for them, the release and indictment state. The stolen drugs
then were sold to [name redacted], [name redacted], [name redacted]
and others, the release and indictment state.

It is estimated that multiple kilograms of cocaine, ounces of crack
and hundreds of pounds of marijuana were taken and resold for further
illegal distribution in this manner, the release states.

The canine handler for the sheriff's office, Walter R. Hairston,
periodically received drugs to train drug-smelling dogs, the release
states. On about 10 occasions, he allegedly took the seized cocaine
and marijuana and gave it to Vaught, who then gave it to others for
further illegal distribution, the release and indictment state.

According to the indictment, Cornelia Bryant Cox, Keaton, King and
Patrick David Martin allegedly stole firearms, money, electronic
equipment, illegal drugs or other items from the evidence seized by
the sheriff's office. It also charged that Robert Keith Adams, [name
redacted], Cassell, Cox, Kandy D. Hubbard, Deshazo, Hairston, Keaton,
King, Steven Varion Preston and [name redacted] attempted to
influence, impede and obstruct the federal investigation in the case
by making false statements to federal agents, encouraging others to
make false statements, committing perjury before a federal grand
jury, by passing on law enforcement information so codefendants could
avoid apprehension and by violating their oaths as law enforcement
officers by ignoring illegal activities, the release and indictment state.

In 2001, a DEA agent from Texas called the sheriff's office to advise
it that a drug ledger had been seized that indicated shipments of
drugs were being delivered to a "Brad Martin's" house in
Martinsville, the release and indictment state. DEA agents in Texas
did not realize that Brad Martin was a Henry County Sheriff's deputy.
Brad Martin took the call and shared the information with King and
Vaught, the release and indictment state. Cassell was advised of this
activity and allegedly took no action, the release states. The grand
jury alleges that Cassell was advised of various illegal activities
involving his deputies, including the distribution of two kilograms
of cocaine, allegedly by Vaught and others; the embezzlement of money
allegedly by Vaught; and the alleged use of steroids by some of his
personnel. Cassell allegedly covered these activities up, the
indictment claims, by not pursuing investigations and by agreeing to
pass on any law enforcement information to the offending parties so
they could avoid apprehension, by making false statements to federal
investigators and by attempting to aid Vaught in a money laundering
scheme to disguise the source of money represented to have been
derived from the distribution of cocaine, according to the release.

Specifically, the grand jury alleged that on Feb. 24, 2006, Cassell
attempted to help Vaught give $10,000 of known drug proceeds the
appearance of legitimacy by cosigning for a loan for Vaught, the
release states. Cassell then counseled Vaught to deposit small
amounts of cash into a checking account to pay off the loan, the
indictment charges. In addition, the grand jury alleged that Cassell
agreed with Vaught to never mention the existence of the money
derived from illegal drug distribution and then lied to
investigators, saying he knew nothing about Vaught's alleged illegal
drug activities, the release states. The case was investigated by the
Virginia State Police, the DEA, the Federal Bureau of Investigation
and the U.S. Postal Inspection Service. Criminal Chief Thomas J.
Bondurant and Assistant U.S. Attorney Andrew Bassford will prosecute
the case, the release says.

The indictment issued by the United State District Court Western
Division in Roanoke names the following people:

Robert Keith Adams--sergeant with the Henry County Sheriff's Office

[name redacted]--private citizen

Jason Allen Burton --deputy with the Henry County Sheriff's Office

Harold Franklin Cassell--sheriff of the Henry County Sheriff's Office

Cornelia Bryant Cox--deputy with the Henry County Sheriff's Office

Kandy D. Hubbard DeShazo--employee of the United States Postal Office

Walter R. Hairston--deputy with the Henry County Sheriff's Office

James Harold Keaton--captain and the current major with the Henry
County Sheriff's Office

David Allan King--vice officer and a school resource officer with the
Henry County Sheriff's Office

[name redacted]--private citizen

Bradley Scott Martin--deputy with the Henry County Sheriff's Office

Patrick David Martin--sergeant and vice officer with the Henry County
Sheriff's Office

Steven Varion Preston--deputy with the Henry County Sheriff's Office

[name redacted]--private citizen

Carlton Arnez Riley--state probation officer in Henry County

[name redacted]--private citizen

Jonathan K. Roberson--deputy with the Henry County Sheriff's Office

[name redacted]--private citizen

James Alden Vaught-- sergeant with the Henry County Sheriff's Office

Travis Todd Wilkins--vice officer with the Henry County Sheriff's Office

Thursday morning in Henry County, a mass of people gathered at the
Henry County Sherrif's Office on Kings Mountain Road where several
Virginia State Police and FBI officials were present.

Virginia State Police vehicles blocked the entrances so that people
could not cross in front of the sheriff's office. In front, there was
a white Virginia State Police command vehicle, an armored blue and
gray Virginia State Police tactical truck with a mounted camera and a
yellow rental Penske truck and a Virginia State Police mobile command
code, along with various unmarked cars.

FBI agents have emerged from the sheriff's office to talk and then
leave for the back entrances of the sheriff's office, where officials
were moving in and out. There also was another tactical truck on the
other side of the building. On the side of the sheriff's office
building there was one truck with a white trailer and some squad men
dressed in green fatigues. Earlier in the morning, a helicopter
brought in the Superintendent of the Virginia State Police Department
and an FBI special agent. They left in a helicopter and said they
would not comment until after the press conference today at the Poff
Building in Roanoke.