5 plead guilty in cocaine distribution, fraud case

Five people, including three brothers, are facing prison after admitting their involvement in rural cocaine sales and/or wire fraud involving Lowe’s Home Improvement stores.

Kenneth Lee Brown, whom authorities described as the organizer of the criminal enterprise, appeared Monday in Charlottesville’s federal court along with his brothers, Steven Todd Brown and Larry Allan Brown, to plead guilty as part of plea agreements. Michael Shane Brown, another relative, and Harold Edward Mills also entered guilty pleas under agreements.

According to authorities, Kenneth Brown and his brothers had been dealing cocaine since around 2001 in Fluvanna County. Kenneth Brown, 43, told authorities that he bought up to 70 kilos of cocaine between 2004 and 2007 for about $25,000 per kilo. Authorities believe that he bought hundreds of kilos over the life of the operation, according to Assistant U.S. Attorney Ronald M. Huber.

“Kenneth Brown had little to no legitimate source of income,” Huber said in court, stating that the drug profits were used to support Kenneth Brown and others.

Steven Brown, 39, was called the “cook” because he could turn powder cocaine into crack. Julia C. Dudley, the acting U.S. attorney, said Steven Brown also distributed the drugs. His other brother, 47-year-old Larry Brown, was described by Huber as a “lower-level distributor.”

Authorities said the overall operation was large, and undercover law-enforcement officers bought cocaine from the operation several times.

“Well over $1.5 million dollars was raised during this three-year period,” Dudley said. “This was a lucrative business.”

Ryant Washington, the sheriff of Fluvanna County, said Monday that residents reported suspicious goings-on near county homes.

“The community alerted us and told us about the activity for years,” said Washington, whose agency had to keep the investigation quiet. “We assured them that we were aware of it.”

In December 2006, Kenneth Brown was incarcerated on unrelated charges outside the federal jurisdiction. At that point, authorities said, Steven Brown stepped up and devised a wire-fraud scheme targeting Lowe’s. Dudley explained that the participants would fill a shopping cart with items and leave Lowe’s without paying. Sometimes the members would return the items immediately to the same store, Dudley said, but sometimes they would wait or take them to another store.

The store employees gave them credit on a gift card, which was later sold or traded for crack, Dudley said. The incidents rose to wire fraud because of the way Lowe’s handles its gift card transactions.

In court Monday, Kenneth Brown pleaded guilty to managing a continuing criminal enterprise, for which he could face 20 years to life in prison and a $4 million fine.

Steven Brown, Larry Brown, Michael Brown and Harold Mills all pleaded guilty Monday to wire fraud. They each face up to 20 years in prison and a $250,000 fine.

Additionally, Steven Brown pleaded guilty to conspiring to distribute cocaine powder and crack cocaine, and Larry Brown pleaded guilty to one count of conspiracy.

Both men face 10 years to life in prison and a $4 million fine on those charges.

James Enoch Sandridge, Latisha Dawn Willis and Deborah Denise Gentry previously pleaded guilty to wire fraud in the case. They each face up to 20 years in prison when sentenced Dec. 1.

All the men who pleaded guilty Monday will face sentencing Dec. 22. U.S. District Judge Norman K. Moon revoked Steven Brown’s bond because of a law that requires a defendant to be incarcerated after admitting to conspiracy.

Mills, 54, and Michael Brown, 42, remain free on bond, while Kenneth Brown and Larry Brown remain in custody.