ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 31, 1993                   TAG: 9303310147
SECTION: VIRGINIA                    PAGE: C-3   EDITION: METRO 
SOURCE: DOUGLAS PARDUE STAFF WRITER
DATELINE:                                 LENGTH: Medium


NEELY FREE ON BOND TO PREPARE AN APPEAL

A federal judge in Roanoke on Tuesday allowed Keith Neely to remain free on bond to appeal his conviction for using his law office to help arrange drug deals.

U.S. District Judge Jackson Kiser, who presided at Neely's three-week trial, said he believes there were "substantial meritorious issues which can be raised" in post-trial motions and on appeal.

Kiser also said he's allowing the Christiansburg lawyer to remain free on $100,000 personal recognizance bond, because Neely is not "apt to flee and I don't think he is a danger to the community."

Normally, persons convicted of federal drug felonies are jailed. Neely was found guilty Friday of willfully aiding and abetting drug deals in the late 1980s. He also was convicted of money laundering, distribution of marijuana and possession of cocaine for personal use.

Neely, 43, faces a possible 10 to 12 years in prison under federal sentencing guidelines. No date for a sentencing hearing has been set. His attorneys said Neely has surrendered his law license, which was subject to immediate suspension anyway because of his conviction.

Federal prosecutors and Neely's attorneys told Kiser on Tuesday that they had reached a settlement on the government's efforts to take Neely's law office and Claytor Lake land. The government went after the land under federal drug laws that allow the government to seize and sell property bought with drug money or used to help drug dealing.

Neely will be allowed to keep his Christiansburg law office and the government will get his 50 acres on Claytor Lake.

Defense attorney Tom Blaylock said he felt the settlement was fair and may help avoid a lengthy legal fight.

Assistant U.S. Attorney Rich Lloret said the law office isn't worth much anyway because of the mortgage and loans that have been taken out on it. Lloret said the government might also have had trouble selling the building. Lloret estimated the lake land's value at $40,000.



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