ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, February 16, 1996 TAG: 9602160046
SECTION: VIRGINIA PAGE: C-1 EDITION: NEW RIVER VALLEY
SOURCE: JAN VERTEFEUILLE STAFF WRITER
MEMO: NOTE: Shorter version ran in Metro edition<.
An appeals court this week upheld the convictions of former Christiansburg attorney Keith Neely on money laundering and drug charges.
Neely was sentenced to 10 years and one month in prison in January 1994 for using his law office to help smuggle drugs and launder drug profits, as well as possessing cocaine for personal use and distributing marijuana. He was allowed to remain free pending appeal.
Neely appealed his 1993 convictions on several grounds, including prosecutorial misconduct, violation of his Fifth Amendment right against self-incrimination, and abuse of the grand jury process.
Key evidence against Neely came from several convicted or admitted drug dealers, who were given immunity or reduced sentences. They testified that Neely acted as a middleman, helping drug suppliers and buyers arrange deals - often from his Christiansburg office.
In one instance, prosecutors claimed that a witness - cocaine dealer and private investigator Donald Kimbler - was too ill with cancer to travel, forcing defense attorneys to go to Missouri to question him. He later was transferred to Florida, then released from custody so he could die at home.
"If Neely's allegations are true, substantial questions are raised concerning the government's conduct, and, unfortunately, the government does not dispute the factual basis of this claim," the 4th U. S. Circuit Court of Appeals opinion said.. But, "any prosecutorial misconduct with respect to representations about Kimbler's location and condition did not deprive Neely of a fair trial."
Neely also accused prosecutors of withholding information that could have helped his defense during the trial. But even if he had had some of that evidence, the appeals court ruled, the outcome of the trial wouldn't have changed.
Neely has maintained since his trial that Assistant U.S. Attorney Karen Peters was out to get him because of an earlier run-in in a court case. Peters has denied the accusation, and had offered Neely a plea agreement that probably would have meant a three-year sentence for one count of money laundering.
The three judges who heard Neely's appeal found several of his other grounds for appeal either without merit or insufficient to reverse his conviction.
The federal court in Roanoke was awaiting the appeals court's judgment before proceeding with Neely's transfer to prison.
Even U.S. District Judge Jackson Kiser called Neely's prison term "extremely harsh" when he sentenced him. But federal judges generally are bound by sentencing guidelines, and the 121-month sentence was the lowest for which Neely was eligible.
LENGTH: Medium: 55 linesby CNB