COURT UPHOLDS FEDERAL SEIZURE OF HOME

The 10th U.S. Circuit Court of Appeals in Denver has ruled that an Oklahoma
homestead exemption cannot prevent federal authorities from seizing a home
used in drug crimes.

In a 3-0 ruling Wednesday, the federal appeals court rejected a Wagoner
woman's claim that her home was not subject to forfeiture under Oklahoma
homestead laws.

The appeals court said federal law pre-empts a state law that prohibits
home seizure.

The ruling came in response to a U.S. District Court jury in Muskogee
finding in March 2000 that the Wagoner home of Dallene Nanette Lees was
used in drug crimes.

Lees was arrested in 1999 after a large quantity of Valium pills were found
in a bag in her home. Police also found marijuana, scales and suspected
steroids, primarily in her grandson's bedroom.

Lees was charged in Wagoner County with possession of controlled dangerous
substance with intent to distribute. She was bound over for trial in
November 1999, but that charge was dismissed in April 2001.

In July 1999, Assistant U.S. Attorney Linda Epperley in Muskogee filed a
federal forfeiture action against Lees' home, claiming it was used to
facilitate illegal crime transactions.

At the civil trial in March 2000, a federal jury heard witnesses tell of
the Valium seizures, other drug dealing and re ports the house was used by
juvenile boys to smoke illegal drugs, Epperley said.

Lees appealed the federal forfeiture, claiming her homestead was exempt
from forfeiture under Oklahoma law.

The appeals court said federal law overrides the state exemption. The
ruling is similar to rulings in other states where the same objection was
raised, Epperley said.

A homestead may be a defense in a state forfeiture case, she said.

Epperley said the next step is for U.S. District Judge Frank Seay to rule
that taking the home is not an excessive penalty. Epperley said that should
not be difficult to prove from the evidence in the forfeiture trial.

Lees also was on federal probation at the time for possessing 33,000 Valium
tablets seized at a border station. That probation was revoked and Lees was
sentenced to one year in federal prison, Epperley said.

Assistant District Attorney Eric Johnson of Wagoner County said the state
dismissed Lees' state charge because she was to serve the federal term. In
addition, Lees' grandson, Jade, pleaded guilty to marijuana possession with
intent to distribute and possessing a weapon. He was given a two-year
deferred sentence.

The Lees home was valued at $136,000 at the time of the forfeiture hearing.
Since then, it has been maintained by U.S. marshals until it can be sold,
Epperley said. Proceeds will be divided among law enforcement agencies.