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Attorneys work to get case against Mudd dismissed
| [Wednesday,August 29 2007] |
Economic Development / News / News / |
The attorneys for former VFW Post 1298 Commander Donald Mudd and Martha Towe argued Monday that the case against their clients should be dismissed because of improper contact by federal agents.
There was no decision made Monday afternoon about the issue, but the judge set another date for a decision.
Mudd, 65, and Towe, 53, both of 600
Fairway St., were each charged in U.S. District Court with two counts of operating an illegal gambling business and conspiracy to impede or impair the IRS. Mudd has also been charged with two counts of arson and two counts of mail fraud.
Towe was also charged with two counts of conspiracy to commit money laundering and two counts of illegally structuring monetary transactions.
Mudd is accused of starting the Aug. 13, 2003, fire that destroyed the Lt. Harold R. Cornell VFW Post No. 1298 on Morgantown Road. Mudd and Towe are both accused of illegally operating gambling at the post and hiding the profits to shield them from the IRS.
John Caudill, a Louisville attorney representing Mudd, said that federal agents on five occasions spoke with Towe and Mudd in attempts to get them to make incriminating statements, although they knew that both were represented by legal counsel. Towe is represented by Bowling Green attorney Steve Thornton.
There was no harm from these meetings because neither suspect made incriminating statements, said Bryan Calhoun, assistant U.S. attorney from the U.S. Attorney's Office in Louisville.
“These are complaints that have led to evidence suppression in other cases, not dismissals,” he said.
Caudill said he has case law that shows this case should be dismissed because of the actions of the federal agents.
“When the search warrant was served, they forced Martha Towe to open a folder even though it was clearly marked' attorney-client privilege' and the agent in charge read the pages as Towe held each page up,” Caudill said. “I want to know if this kind of behavior was directed by the prosecution or if they approved it.”
The defense wants to question agents from the IRS and Bureau of Alcohol, Tobacco, Firearms and Explosives to determine if information from the folder helped in the investigation and led to the indictment of Towe and Mudd, Caudill said.
These are serious charges, said U.S. District Judge Thomas Russell.
“I don't think this is the kind of decision I can make after a few minutes of arguments,” he said. “I want to make sure that I make the right decision.”
The defense will enter the confidential information under seal so Russell can determine if viewing it would be damaging to the defense case.
Calhoun said he still wants to see proof that the alleged viewing did occur.
Russell also did not consider Monday a defense motion to dismiss the case because the prosecution had not complied with the speedy trial requirements.
Both the defense and prosecution will file briefs on the case over the next two weeks. Another hearing is scheduled for 9 a.m. Sept. 14 in U.S. District Court in Bowling Green.
Mudd was accused by the ATF of starting the fire at the VFW to cover up the alleged illegal gambling operation. The ATF has stated that the fire was set five days before a scheduled audit of the charitable gaming records by the Kentucky Office of Charitable Gaming.
Mudd and Towe are accused of managing semiweekly charitable gaming activity at the former VFW post where players participated in bingo and pull tab games, according to the indictment.
During legal charitable gaming, Mudd and Towe are accused of offering pull tab games to players that were for their personal benefit, which is illegal under Kentucky law, according to the indictment.
Mudd also owned video slot machines at the post that were for his and Towe's benefit, according to the initial indictment.
The indictment also accuses Mudd of diverting a $16,822 insurance settlement from the fire into an account he had created.
Those funds were used to purchase a riding lawn mower, a Browning gun safe and a 42-inch plasma television, according to the original indictment.
Mudd and Towe each face up to 30 years in prison, a $1 million fine and supervised release for up to six years. Both remain free on $25,000 unsecured bonds. |
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Bowling Green Daily News
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