FEDERAL JUDGE DENIES SMUGGLER NEW TRIAL

Former Christiansburg attorney Keith Neely's nearly 10-year quest for a new
trial was thwarted when a federal judge denied his request Thursday.

Neely was convicted in 1993 for using his law office to help smuggle drugs
and launder drug profits and for possessing cocaine and distributing
marijuana. After Neely's initial appeal was denied in 1996, he started
serving his 10-year sentence in 1996.

Senior U.S. District Judge Jackson Kiser ruled in an opinion filed in
federal court Thursday that though Neely may have shown that there were
instances during the prosecution of his case when federal authorities acted
improperly, Neely still received a fair trial. Neely can appeal the
decision, however.

Kiser's ruling in the case is the latest development in what has been a
nearly 10-year fight on Neely's part to have his sentence overturned and
get a new trial.

Last summer, Kiser, who expressed frustration with the FBI for withholding
documents Neely sought, let Neely out of federal prison for about a month
and a half to work on his appeal.

Neither Neely, who is in prison in West Virginia, nor his attorney, Max
Jenkins of Radford, could be reached for comment.

U.S. Attorney John Brownlee said his office was pleased with the decision.

"The question of his guilt was never in doubt," Brownlee said. "The jury
found him to be a drug dealer, and that finding has never been challenged."

Brownlee also said he was making changes in his office based on some of
Kiser's findings of misconduct. For example, former prosecutor Karen Peters
used trial subpoenas in violation of federal rules because the prosecutor
did not alert the court as is required, Kiser found.

"It was an important analysis of the rules and the law that Judge Kiser
came out with, and we plan to follow it completely," Brownlee said.

Kiser also found fault with the prosecutors because of internal FBI
communication that said they were indicting another defendant, Butch
Franklin, "for the most part to encourage [Franklin] to cooperate against
Neely."

In past rulings, Kiser found that the statements of two IRS agents to the
grand jury and at trial violated Neely's constitutional rights, and that
Peters violated grand jury secrecy by sharing documents obtained during
that phase of the investigation with Neely's former secretary, Tangie Vest.

Peters could not be reached for comment.

Kiser adopted the earlier report and recommendation of U.S. Magistrate Glen
Conrad on Neely's motions in his ruling.

Neely has pursued his freedom through several legal channels, including
suing the FBI for not turning over documents pertaining to his case.