Opinion ID: 596393
Heading Depth: 2
Heading Rank: 2

Heading: The Reed, Kane, Lady Indictment

Text: 3 The defendants in the present drug conspiracy case, Reed, Lady, and Kane, along with thirty-two other co-defendants, were charged in a twelve count indictment returned on February 29, 1989. 2 Count One charged defendants with conspiring to distribute five or more kilograms of cocaine from 1974 through February 1989, in violation of 21 U.S.C. § 846. Count Two charged Kane and Lady, but not Reed, with conspiring to import five kilograms or more of cocaine during the same time period, in violation of 21 U.S.C. § 963. Count Seven charged Reed with conducting a CCE from January 1978 through February 1987, in violation of 21 U.S.C. § 848. None of these three defendants were charged in the remaining counts of the 1989 indictment. Only five of the original thirty-five individuals indicted were named in the final prosecution. 4 During trial, prospective jurors were subjected to an intensive voir dire and the number of peremptory challenges available to both defense and prosecution was increased due to the overlap between the conspiracy alleged and the conspiracy proven in the highly publicized Carlos Lehder trial. It was established that all fifty-six prospective jurors were familiar with the Lehder trial and with Lehder's conviction. However, only thirteen had heard of the instant case, and four of these jurors were excused for cause. None of the nine remaining jurors who had been exposed to pretrial publicity served on the final jury, either due to defense or prosecutorial strikes or because these jurors were not reached in the selection process. 5 After a six-week trial, Reed was convicted on Count One, conspiracy to distribute, and Count Seven, engaging in a CCE. Lady and Kane were acquitted on Count One, conspiracy to distribute, but convicted on Count Two, conspiracy to import. The two other defendants, Herington and Stewart, were acquitted on all counts. 6 At sentencing, the court determined that the Federal Sentencing Guidelines were applicable to the offenses charged in Counts One and Two of the Indictment. Under these guidelines, Lady was subject to an imprisonment of 188 to 235 months. The court made a downward departure, however, based on 1) a comparison between Lady's role and the role of others who had been sentenced, 2) the age of the offense, and 3) the failure of the guidelines to account for a situation in which defendants who plead guilty receive non-guideline sentences yet those who go to trial are sentenced under the more stringent guidelines. Accordingly, Lady was sentenced to the mandatory minimum sentence of ten years. 7 These same factors caused the court to depart downward five levels during the sentencing of Kane who otherwise would have received 235 to 292 months imprisonment. Kane received a sentence of 144 months and a fine of $500,000. 8 In sentencing Reed, the district court adopted the probation officer's report which suggested three increases in Reed's base level offense. The report recommended increasing the base level by four points due to Reed's leadership role in the conspiracy. It recommended a further increase of two points for possession of firearms during the commission of the crime; this recommendation was based on a 1979 raid of Reed's residence in Norman's Cay, Bahamas, during which the Bahamanian police found weapons, ammunition and dynamite. The district court also adopted the report's suggestion that Reed's base level be enhanced by two points for obstruction of justice due to his involvement in a conspiracy to escape from custody prior to trial. 9 Reed was sentenced to life imprisonment on Count One, to run concurrently with the previously imposed fifteen-year sentence in the Lehder/Reed case for conspiring to import cocaine. He was also fined $2,000,000. The district court also sentenced Reed to a consecutive life term on Count Seven (the CCE charge), a non-guideline offense. 10 Defendants appeal these convictions and sentences.