He Threatened His Workers' Jobs, Official Says

TESTIMONY: SHERIFF INTERFERED IN FEDERAL INVESTIGATION OF SON

James Edwin Falls, Son Of The Giles County Sheriff, Was Arrested On Federal
Charges Of Distributing Cocaine And OxyContin June 8.

Shortly after his son was arrested on drug charges, Giles County Sheriff
Larry Falls threatened to fire any employee who cooperated with a federal
investigation that led to the charges, a federal agent testified Monday.

The sheriff made the comment to one of his investigators following a June 8
raid in which his 36-year-old son, James Edwin Falls, was arrested on
federal charges of distributing cocaine and OxyContin, according to Terry
Henderson of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

Henderson also testified that Mike Falls, the sheriff's other son and a
captain for the Giles County Sheriff's Office, leaked information about the
identities of at least two confidential informants to the wife of James Falls.

Allison Paige Falls, who was charged along with her husband in the raid,
went on to threaten one of the informants, saying that "she had talked to
her brother-in-law and found out everything she needed to know," Henderson
testified during a bond hearing in U.S. District Court in Roanoke.

Assistant U.S. Attorney Ruth Plagenhoef declined to comment after the
hearing on whether authorities are investigating possible obstruction of
justice charges.

But in court in response to Judge James Turk's observation that neither
James nor Allison Falls had a criminal record, Plagenhoef raised the
possibility of interference by Giles County law enforcement.

"They've got pretty good ties in Giles County," Plagenhoef said. "Maybe
that explains why they don't have criminal records."

Neither Larry nor Mike Falls returned calls Monday. Neither of them have
responded to media inquiries since late May, when James and Allison Falls
were charged with drug offenses following a traffic stop in Salem. The
Fallses were released on bond following those arrests, which were not part
of the federal investigation.

In a memo dated May 27, three days after an article about the arrests
appeared in The Roanoke Times, Falls instructed his staff not to release
information to the media about any case or issue involving the sheriff's
office.

"This is to be adhered to without exception," according to the memo, a copy
of which was sent to The Roanoke Times. "The news media will have to obtain
their information from sources other than our department."

A dispatcher said Monday that Sheriff Falls is on medical leave. Falls, who
had a stroke earlier this year, has announced that he will not run for
re-election this fall because of health concerns. His son, Mike Falls, is
one of the candidates vying to replace him.

The role the sheriff and his son reportedly played in the federal
investigation of James and Allison Falls was cited by prosecutors as a
reason for sealing a search warrant and other case documents in the days
following their arrests.

A motion to seal the search warrant stated that Allison Falls threatened to
hire someone to kill a government informant after learning of his identity
from Mike Falls.

Immediate public disclosure of that threat, along with the sheriff's
comment that he would fire anyone who cooperated with the investigation and
prosecution of his son, could have damaged the investigation and
jeopardized the lives of informants, federal prosecutors said in the motion.

The warrant was unsealed Monday after the Fallses, who have been in jail
since their arrests on the day of the June 8 raid, appeared before Judge
Turk for a hearing in which their bonds were set at $25,000 each.

Attorney John Fishwick, who represents James Falls, cast doubt on the
government's theory that his client was somehow protected by the sheriff's
office, noting that authorities from other counties where the drug dealing
allegedly happened did not make arrests either.

And Paul Dull, who represents Allison Falls, pointed out that employees of
the Giles County Sheriff's Office were involved in the investigation from
the start. The sheriff reportedly did not threaten to fire anyone until
after the arrests.

"I would be very surprised if the sheriff didn't know what his deputies
were doing, especially when it involved his son," Dull said.

A seven-count indictment alleges that the Fallses distributed large amounts
of cocaine and the prescription painkiller OxyContin from their Narrows
home over a seven-year period.

The Fallses maintain their innocence, Dull said.