Charles T. Miller, US Attorney
NEWS RELEASE
Tracy Dorsey Chapman, Media Contact
US Courthouse !Room 4000
Charleston, WV 25301
1-800-659-8726 or (304) 345-2200
FOR IMMEDIATE RELEASE
June 8, 2009

FEDERAL GRAND JURY RETURNS 48-COUNT INDICTMENT AGAINST LOGAN BUSINESS OWNER

HUNTINGTON, WV – United States Attorney Charles T. Miller announced today that a Federal grand jury sitting in Huntington, WV returned a 48-count indictment against Joseph Cleveland Ferrell, 62, of Chapmanville, WV and Southern Amusement Co., Inc., of Logan, WV, charging the defendants with violations of federal law in connection with racketeering, illegal gambling, mail fraud, bribery, obstruction of justice, social security fraud, and tax charges. The Indictment also includes forfeiture counts seeking at least $5 million. The Indictment, returned on June 3, 2009, was unsealed today by the Court. Additionally, today the Court unsealed a 2005 search warrant and a temporary restraining order. If convicted, Ferrell faces the following possible penalties:

Count Charge Penalties
1 RICO 18 USC §1962 (c) 20 years / $250,000
2 Illegal gambling in Kentucky 18 USC §1955 5 years / $250,000
3-24 Interstate travel in aid of racketeering 18 USC §1952 5 years / $250,000 for each count
25-28 Honest services mail fraud 18 USC §§1341 & 1346 & 2 20 years / $250,000 for each count
29 Bribery 18 USC §666 10 years / $250,000
30-35 Mail fraud 18 USC §§1341 & 2 20 years / $250,000 for each count
36-37 Obstruction 18 USC §1503 10 years / $250,000 for each count
38 Aiding and abetting Social Security fraud 42 USC §§408(a)(2) & 18 USC 2 5 years / $250,000
39-44 Failure of operator of gambling devices to register 15 USC §1173 2 years / $250,000 for each count
45-48 Failure to collect, account for and pay over employment taxes 26 USC §7202 5 years / $250,000 for each count

Assistant United States Attorneys Hunter P. Smith Jr. and Larry R. Ellis are handling the prosecution. The Internal Revenue Service, Criminal Investigation Division, Federal Bureau of Investigation, West Virginia Legislature’s Commission on Special Investigations, the Social Security Administration and the West Virginia State Police jointly conducted the investigation.

**PLEASE NOTE: An Indictment is merely a formal accusation; it is not proof of guilt, and the defendants are presumed innocent until and unless they are found guilty.
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