MEMORANDUM

To: Chuck Banks, Mac Dodson

FROM: Bob Govar

DATE: February 13, 1990

RE: Saline County Investigation

The purpose of this memorandum is to provide each of you with a status report pertaining to the Saline County Investigation. As of this date, February 13, 1990, we have interviewed approximately 22 witnesses in connection with the Saline County Investigation. The names of those witnesses are as follows: Kellie Crisco (1); Bill Rummel (2); Mike Samples (3); Carl Samples (4); Bernice Samples (5); Jo Ann Winters (6); Marissa Lynn Bragg (7); Fred Bankston (8); Woodrow “Woody” Mays (9); Timothy M. Lincoln (10); Myron Harrison (11);Jim Clouette (12); Scott Tracy Mattingly (13); Tommy Madison (14); Richard Sampley (15); Michael Bearden (16); Pamela Gwyn Cook (17); Cindy Boshears Tucker (18); Teresa Harmon (19); James Michael Seamon (20); Michael Hughes Skasick (21); and Everett Vanderburg (22). As of this date seven witnesses have appeared before the federal grand jury for the Eastern District of Arkansas. Their names are: Carl Samples, Jo Ann Winters (6); Marissa Lynn Bragg (7); Fred Bankston (8); Pamela Gwyn Cook (17); Cindy Boshears Tucker (18); and Teresa Harmon (19). Also, as of this date, seven (sic) witnesses have been immunized. Their names are: Carl Samples, Marissa Lynn Bragg (7); Woodrow “Woody Mays; Myron Harrison (11); Tommy Madison (14); and Richard Sampley (15). As of this date we have indicted one person in connection with the Saline County grand jury investigation and that person is James Calloway. James Calloway was indicted for providing a firearm for use in the commission of a crime of violence and his case is currently pending jury trial. We indicted Calloway on this federal offense because he purchased a sawed-off shotgun which was used in the robbery of a crap game in Lonoke County on July 20, 1989. A man by the name of Richard Winters was one of the robbers and was shot to death during the course of the robbery. The reason we indicted this case federally is because we have information that Calloway headed a significant cocaine distribution operation in Saline County during 1987 and 1988. Details of this operation will be outlined below. James Calloway is also currently under federal indictment in the Central District of California, Los Angeles, where he has been charged by indictment with eleven counts of mail fraud involving a scheme to obtain over two million dollars worth of merchandise on credit from various sources which was not paid for.

He was indicted with two other individuals in that case. On February 20, 1990, we will present to the federal grand jury for the Eastern District of Arkansas another proposed indictment in connection with the Saline County investigation. The proposed indictment will be against W. E. Ross. We intend to charge W. E. Ross with one count of manufacture of marijuana and one count of possession of marijuana with intent to distribute. We are going to indict Ross federally in connection with this case because it looks awful “fishy”. W. E. Ross was arrested by Saline County Investigators on May 6, 1988, and found in possession of 240 marijuana plants as well as a number of pieces of equipment necessary to the manufacture and cultivation of marijuana. I have reviewed the investigative file and find that there is no legal error and that the search of Mr. Ross’ premises was a legal search since the officer was there pursuant to a valid state search and seizure warrant. Furthermore, W. E. Ross gave a tape-recorded statement wherein he confessed to the manufacture of the marijuana and stated emphatically that he intended to sell the marijuana for money. Notwithstanding these facts, however, Richard A. Garrett, the former Deputy Prosecuting Attorney for Saline County, nolle prossed the case on December 13, 1988, his last month in office. The order dismissing the case was signed by a Circuit Judge on exchange named Robert W. Garrett. The dismissal of the Ross drug case six months after his arrest without any explanation of record is quite puzzling and disturbing. As stated above, there does not appear to be any legal reason why the case should have been dismissed. The search appears to be a lawful one and certainly the time limit, under the speedy trial provisions of state law, had not run since the case was dismissed six months after it was filed. I interviewed the investigator who made this case, Saline County Investigator Leonard Lewis, and he told me that he was not informed that the case was dismissed by the prosecutor nor was he told any reason why the case was dismissed. He told me that he did not have any conversation with Richard Garrett concerning this case and that he only knew the case had been dismissed after I called him and asked him about it during 1990. In fact, Investigator Lewis indicated some measure of surprise when I told him the case had been dismissed and he told me he wondered what happened to it. Incidentally, we have narcotics intelligence information from the State Police that indicates that W. E. Ross moved from Saline County to Perry County and that he is currently engaged in a marijuana growing operation with his son, W. E. Ross, II. Obviously, our primary motive in prosecuting this case beyond the fact that it needs to be prosecuted is we hope to develop information which would explain the extraordinary dismissal of this case by the State Prosecutor during his last month of office.

The Saline County Sheriff’s Office is currently preparing an investigative file on an individual by the name of John Roland. I have discussed this case with Sate Prosecutor Gary Arnold and Gary Arnold has agreed that we should handle this

case federally as a part of our Saline County investigation. John Roland was caught in the act of growing marijuana in Saline County. In fact, at the time of his arrest he was actually in the field pulling up plants. According to what I have been told, a couple of neighbors who lived by the marijuana field were asked by John Roland to come and assist him in pulling up the marijuana plants since the “cops were on their way”. It occurs to me that someone had to tip off John Roland that the Saline County Drug Investigators were on the way to the property with a search and seizure warrant. Roland was arrested on a Monday and on the previous Friday Saline County Drug Investigators had made application for a search warrant on the land where the marijuana was growing through Judge Pete Lancaster. From what I have been told by the investigators Judge Lancaster lives in the same area where Roland was growing his marijuana. Although the search warrant was ultimately obtained from Bryant Municipal Judge Darrell Davis, the warrant was not executed until the following Monday. Since this occurred during the fourth of July weekend 1989, whoever tipped him off may not have been able to get hold of him over the holiday weekend. Apparently someone did get in contact with him on the Monday morning following the fourth of July weekend and told him that the police were coming with a search warrant to seize the marijuana. The investigators involved in this case are currently trying to locate the two neighbors who were asked to help John Roland pull the marijuana so that they can be interviewed in connection with this case and we can find out exactly what Roland said to them and what their response was.

During the course of this investigation to date, we have determined the identities of two significant drug traffickers operating in Saline and Garland counties. One of the traffickers, James Calloway, is currently under federal indictment for using or providing a firearm during a crime of violence. As stated above the current indictment deals with the fact that he provided a sawed-off twelve gauge shotgun which was used in the armed robbery of a crap game in Lonoke County in July of 1989. During that robbery attempt Richard Winters was shot to death supposedly by the person running the crap game, Sylvania Peaks. Witnesses who support the allegations that James Calloway planned this robbery and provided the shotgun that was used in the robbery are: Mike Samples, Carl Samples, Bernice Samples, Jo Ann Winters and Everett Vanderburg. Everett Vanderburg has given a tape-recorded statement that he sold James Calloway the sawed-off shotgun that was used in the robbery of the crap game on the same night as the robbery. Vanderburg stated that he had purchased the sawed-off shotgun from another individual identified as Richard Smith. Richard Smith apparently told a friend of Calloway’s by the name of Vinis Criswell that Vanderburg had purchased the gun and had it. According to Vanderburg on the night of the robbery, three men came to his home. Those three men were James Calloway, Tony Mullins and Carl Samples. Calloway

told Vanderburg that he needed to buy the gun so that Mullins would have protection from his in-laws who had been threatening him. Calloway later gave the sawed-off shotgun to Tony Mullins who in turn gave it to Carl Samples. Samples has given a sworn statement and grand jury testimony that the sawed-off shotgun was later tossed in a ditch by Interstate 30 running east and west from Little Rock to Memphis. We recovered the shotgun by having Carl Samples take us to where the gun had been ditched. It had been laying in the same weeded area along the Interstate since July of 1989. The gun was actually recovered in December of 1989. Carl Samples has given a lengthy statement regarding the robbery of the crap game, including information that James Calloway planned the robbery. In addition to providing the details of the planning of the robbery and the persons who participated in it, Carl Samples provided the grand jury with sworn testimony as to James Calloway’s cocaine dealings in Saline County. James Calloway had employed Carl Samples to work at his car lot in Bryant, Arkansas, doing odd jobs. While employed in that capacity Carl Samples told the grand jury under oath that he observed a Mexican and Richard Garrett arrive at James Calloway’s car lot. The Mexican delivered boxes which, on at least one occasion, Samples saw the contents to be packages of white powder which he believed to be cocaine. The Mexican male involved in this transaction was subsequently found shot to death in White County, Arkansas, and was being held at the state crime laboratory under a John Doe. Carl Samples, at my request, traveled with investigators to the Arkansas State Crime Laboratory and viewed the body of the dead Mexican male. Carl Samples identified the dead Mexican as the person who had traveled to the car lot with Richard Garrett for the purpose of delivering cocaine to James Calloway.

Since the interview and grand jury appearance of Carl Samples we have also identified other witnesses who can prove information concerning the drug dealings of James Calloway. On Monday, February 12, 1990, I interviewed witness Woodrow “Woody” Mays. Mays provided a lot of information concerning drug dealing in Saline County but he also indicated in the course of giving this information that he knew James Calloway, knew that Calloway owned a car lot in Bryant, Arkansas, and remembered on at least one occasion when he had obtained some marijuana from Calloway. Mays pointed out that he did not actually get the marijuana from Calloway himself but had another person go to him and obtain a quantity of marijuana so that Mays would have some to smoke. Two other witnesses have also implicated James Calloway in drug dealing. One of those witnesses is named Tommy Madison (14). Tommy Madison (14), who is currently incarcerated at the Cummins Unit of the Arkansas Department of Correction has been interviewed by investigators and gave a written statement on January 30, 1990. Tommy Madison (14) told investigators that during 1987 and 1988 he was buying cocaine trying to help a friend of his out. He identified

several sources of cocaine including Suspect (1), Suspect (2), and Suspect (3). Tommy Madison (14) stated that as his dealings in cocaine continued he had occasion to meet James Calloway. He stated that he had been introduced to Calloway by Suspect (3). Suspect (3) and James Calloway used to work for AP&L in Alexander, Arkansas. During the course of his statement Tommy Madison (14) identified a number of occasions when he actually purchased cocaine from Calloway. On the first occasion he alleged that he bought cocaine from Calloway at his home, approximately 1/4 gram for $25. Tommy Madison (14) stated that the second time he bought cocaine from Calloway was in the parking lot of the church in Alexander and that he purchased 1/4 gram of cocaine from Calloway for $25. Tommy Madison (14) stated that the third time he purchased cocaine from Calloway he had called Suspect (3) at Suspect (3)’s home and Suspect (3) told him to meet Calloway in Alexander. On this third occasion Tommy Madison (14) stated that he met Calloway and purchased 1/4 gram of cocaine for $25. Tommy Madison (14) stated that the last time he actually bought cocaine directly from Calloway was in about January of 1988. On that occasion he and Suspect (3) went over to James Calloway’s car lot where Suspect (3) gave Calloway $100. Calloway left and they had to wait for Calloway to get back to the car lot. On this particular occasion Suspect (3) obtained either a gram or a one-sixteenth paper of cocaine. James Calloway’s drug dealings were also documented in a written statement by Richard Sampley (15) on January 30, 1990. Richard Sampley (15) is currently incarcerated at the Varner Unit of the Arkansas Department of Correction. In his statement Richard Sampley (15) stated that he has know James Calloway for approximately six years and that he has lived at Calloway’s house off and on several times. Richard Samply (15) stated that while he lived with Calloway he used to test cocaine for him and would tell Calloway whether the cocaine was good or bad by the rush that he got from the drug. Richard Sampley (15) stated that he would perform these tests on the cocaine at the kitchen table in James Calloway’s house. Richard Sampley (15) stated that during 1987 he sold at least ten ounces of cocaine for James Calloway. During the 1987 Oaklawn race season Richard Sampley (15), James Calloway, Dan Harmon and Richard Garrett all went to the horse races in Hot Springs. The trip was made in James Calloway’s black Marquis automobile. On the way to the races James Calloway pulled out a half-gram of cocaine and handed it to Richard Garrett. Richard Garrett snorted some of the cocaine and then handed the paper to Dan Harmon who did some of it. Harmon then handed the paper of cocaine to Richard Sampley (15) and Richard Sampley (15) finished it. Richard Sampley (15) stated that he told them to get all they wanted because he was going to finish it when it got to him. Richard Sampley (15) stated that on several occasions while he lived with James Calloway he saw Dan Harmon and Richard Garrett come to James Calloway’s house. They would always go to James’ bedroom and close the door and talk. Richard Sampley (15) did not know what they talked about but he did know that that is where James Calloway kept his cocaine. Richard Sampley (15) also stated that he knew that James Calloway did most of his cocaine dealing from the bedroom in his

house. Richard Sampley (15) stated that there was a closet in the bedroom in which James Calloway kept his cocaine and that there was cocaine in this closet on every occasion when Dan Harmon and Richard Garrett were there. Richard Sampley (15) stated that he watched James Calloway give people cocaine to sell on several occasions. Richard Sampley (15) stated that he saw Calloway give Suspect (3) drugs on a number of occasions and one time he watched Suspect (3) carry about a kilo of cocaine out of James Calloway’s house. During the time that Richard Sampley (15) was associated with James Calloway, Richard Sampley(15) alleges that he watched Calloway move about 20 kilos of cocaine. Richard Sampley (15) stated that he was giving James Calloway about $750 to $800 an ounce depending on the dope. Richard Sampley (15) also stated that a Mexican which he knows by the name of Carlo would get out of Garrett’s car and carry and attache or brief case into the car lot office. Richard Sampley (15) stated that he saw this Mexican stay a very few minutes and then return to the car that Garrett was in and they would drive off. Richard Sampley (15) stated that he was sure that Garrett was driving the car on these occasions.

During this point of the investigation, Dan Harmon, an attorney from Benton, Arkansas, has been identified as a target in this investigation. Dan Harmon has served in the past as the special prosecutor in charge of the Saline County special grand jury which looked into the deaths of Don Henry and Kevin Ives on August 23, 1987. Kevin Ives and Don Henry were found dead on some railroad tracks in Saline County on that date. The grand jury investigated the cause of death of the two boys and the circumstances surrounding their death as part of the special grand jury’s investigation. On Monday, February 12, 1990, I interviewed Woodrow “Woody” Mays, an acknowledged drug dealer from Saline County, Arkansas. Mays is a 31 year old white male, 5’6″, weighing 155 pounds, having blond hair and blue eyes. He has a tattoo on his shoulder which is of the letter “F.” Mays has never been granted immunity before and has never testified as a witness in a criminal case. Mays has a number of felony convictions including two felony convictions in Pulaski Circuit Court in 1984 or 1985 for burglary and theft of property. He was sentenced in 1985 to two five year concurrent terms of imprisonment with two years suspended. Altogether he served nine months in the Arkansas Department of Correction. Woody Mays has also been convicted of a felony in Ohio. He received a sentence of one to five years for aggravated assault as a result of a stabbing incident in a bar fight. This conviction occurred in 1974 or 1975. As a result of this conviction he served three years in the Ohio State Penitentiaries at Mansfield and Lebanon, Ohio. Woody Mays stated that he met Danny “Boonie” Bearden through Suspect (4) during the summer of 1988. Suspect (5), Suspect (4)’s brother, grew marijuana for Joe Davis. Davis is currently serving a term of imprisonment for robbery in the Arkansas Department of Correction. Boonie Bearden started buying eight balls of cocaine from Woody Mays shortly after they met.

It wasn’t too long before Boonie Bearden started buying an ounce of cocaine every day from Mays. According to Woody Mays, Boonie Bearden bought at least 30 ounces of cocaine from him in a two month period. Mays stated that his source of cocaine for the most part during this period of time was Marvin Stegall, who has been previously identified as a significant drug trafficker operating in Garland and Saline Counties. According to Mays, Marvin Stegall was fronting him anywhere from two or three ounces of cocaine per week. Woody Mays has agreed to meet with State Police Investigators and show them the drop site and method of operation of Marvin Stegall. According to Mays, Marvin Stegall meets a person on a weekly basis who flies cocaine into the state of Arkansas from Texas. The individual is met at the airport and they then go to a Waffle House or a nearby location and exchange the drugs and money. Mays claims to have been present on occasions when this was done. Woody Mays stated that he first met Marvin Stegall in 1986 or 1987 right after he got out of prison. Mays couldn’t exactly remember who introduced him to Stegall but he believes it was either Carlo Hibbard or Mark “Bubba” Ray. Mays stated that he started dealing with Stegall right after he met him in the latter part of 1987 or the first part of 1988. Mays stated that he got some drugs from Stegall about every week. Mays stated that he would obtain three to eight pounds of marijuana at a time and anywhere from one to three ounces of cocaine at a time from Marvin Stegall. Mays stated that his drug dealing with Stegall ended in July of 1989 when Mays left the state of Arkansas. At the time Mays left Arkansas he owed Stegall approximately $8,800 for seven pounds of marijuana and three or four ounces of cocaine. Mays stated that Stegall usually fronted him both marijuana and cocaine and that he had been fronted the marijuana and cocaine that he owed Stegall for. Mays stated that Stegall owns a business which hangs ceiling and that he believes that Stegall used this business as a front to launder his drug money. According to Mays, Stegall is in his 30’s and has a lot of wealth and property that is not apparent. Mays stated that during the time he dealt with Stegall, from 1987 through July of 1989, Stegall provided him with approximately 100-150 pounds of marijuana and anywhere from a kilo to a kilo and a half of cocaine. Stegall identified the following persons as persons who dealt drugs for Marvin Stegall: (1) Tammy Harmon, the daughter of attorney Dan Harmon; (2) Mark “Bubba” Ray; (3) Woody Mays; and (4) Carlo Hibbard. Mays stated that Marvin Stegall is a major source of drugs in Saline County and that if Marvin Stegall is busted it will probably eliminate the major source of drugs in that county. Mays stated that he never got busted the entire time that he was selling drugs in Saline County because either Tammy Harmon or Carlo Hibbard would tell him “Dan says you are getting hot.” He indicated that he never got busted because Tammy Harmon or Carlo Hibbard would warn him every time the authorities were getting ready to arrest him. He indicated that he was warned by Dan Harmon, through Tammy Harmon or Carlo Hibbard, at least four or five times. He stated that that is why

he moved so often while he was living in Saline County. Mays recalled that he was at Dan Harmon’s house both when Harmon lived in the Summer Wood Apartments and later when he moved and lived in a house. He recalled that he was in Harmon’s house on one occasion shooting up with his daughter, Tammy, when Dan Harmon was present in the house. He also recalls an occasion when Dan Harmon was present while Woody Mays was snorting cocaine with Harmon’s former wife, Teresa Harmon. Woody Mays stated that Teresa Harmon bought cocaine from him on at least four or five separate occasion. He stated that Teresa Harmon usually bought $50 to $100 worth at a time. Mays described Marvin Stegall as a white male, 5’9″ to 5’10” in height, brown shortcut hair, medium build, weighing approximately 160-170 pounds and further described as being very bowlegged. Woody Mays stated that Marvin Stegall was clean shaven in the past but he was now wearing a full beard and mustache. Mays stated that Stegall meets his Texas source for cocaine at the Little Rock airport on a weekly basis. When Stegall meets this individual who Mays knew only as “Dave,” Stegall would either drive a new maroon Bronco automobile or a small pickup truck which he described as being beige over brown.

Woody Mays stated that Carlo Hibbard is still in the drug business. According to information for the Saline County Sheriff’s Office, Carlo Hibbard is a fugitive and has current state charges of distribution of controlled substances out of Saline County Circuit Court. According to Mays, Carlo Hibbard is running dope from Houston, Texas, and Jacksonville, Florida, to Richmond, Indiana. Mays stated that he has seen Carlo Hibbard in Richmond, Indiana, and that Carlo Hibbard currently lives with his mother in Richmond, Indiana. Mays described Hibbard’s vehicle as being a green Chevelle with two big white stripes running from the back of the automobile to the front. The car has Florida tags and is usually parked on the corner of South Seventh and “H” or “G” Streets in Richmond, Indiana. Other witnesses have provided information during the course of this investigation pertaining to the drug activities of Benton attorney Dan Harmon, his former wife, Teresa Harmon, and his daughter, Tammy Harmon. During the latter part of 1989, Little Rock attorney Jim Clouette, provided investigators working on the Saline County investigation with information pertaining to the drug activities of Dan Harmon. Clouette, who used to practice law with Dan Harmon, stated that he met Harmon and drove around with him in Saline County on one occasion recently after Harmon had called Clouette at Clouette’s office. During this meeting Harmon told Clouette that he had acquired a hydroponics system and was going to establish a marijuana growing operation in a building with a restaurant in the top of the building. According to Clouette, Harmon stated that this would be a perfect front for a marijuana growing operation and that the growing end of the operation was the place to make money.

Myron Harrison (11) was interviewed by investigators working on the Saline County investigation on August 31, 1989. During the course of his statement, Myron Harrison (11) said that he first met Dan Harmon on a casual basis in 1984. At the time he first met Harmon he was just merely a speaking acquaintance and did not really socialize with him or have any business transactions with him. Later, however, Teresa Harmon, Dan Harmon’s ex-wife, started buying cocaine from Myron Harrison (11). Teresa Harmon’s cocaine purchases began toward the end of 1987 while Myron Harrison (11) was still living at the Pines Apartments on Baseline Road in Little Rock. At this particular time Teresa Harmon was buying grams of cocaine. In February of 1988 Myron Harrison (11) lived at XXXX Arapaho Trail in southwest Little Rock. Teresa Harmon would come by Myron Harrison (11)’s house and buy eight balls of cocaine from him. Myron Harrison (11) stated that Teresa Harmon bought cocaine from him a couple of times at that location before she introduced him to her husband, Dan Harmon. Myron Harrison (11) stated that in March of 1988 he met Dan Harmon at the El Chico restaurant in southwest Little Rock to talk to him as an attorney in reference to some domestic problems that Myron Harrison (11) was having. Myron Harrison (11) recalled that during the conversation Harmon asked him how much cocaine Teresa Harmon was buying. Other than that one reference to cocaine, Myron Harrison (11) stated that their conversation was merely small talk. Myron Harrison (11) stated that in April of 1988 Teresa Harmon came to his house on Arapaho Trail and told him that Dan Harmon was waiting to talk to him at Sawyer’s Market at Baseline and Hilaro Springs Road. According to Myron Harrison (11), he went to Sawyer’s Market and met with Dan Harmon alone. This was the first time, according to Myron Harrison (11), that Dan Harmon had mentioned hydroponics to him. Harmon told Myron Harrison (11) that the only way to make money out of marijuana was to be on the manufacturing end. During the course of this conversation Myron Harrison (11) asked Harmon if it was okay to continue to front cocaine to Teresa Harmon. Harmon stated that it was okay but to not let it get out of hand. According to Myron Harrison (11), during May of 1988, Teresa was supposed to come to his house and pick up some cocaine. She couldn’t make it so Dan Harmon came instead. Myron Harrison (11) stated that he and Harmon met at the El Chico Restaurant in southwest Little Rock where they talked about the hydroponics again. During the course of this meeting Dan Harmon discussed some of the testimony being given to the Saline County grand jury about the deaths of Kevin Ives and Don Henry. At this meeting Myron Harrison (11) gave Dan Harmon an eight ball of cocaine on the front for his wife, Teresa. Myron Harrison (11) stated that at this particular time Dan Harmon and Teresa Harmon owed him approximately $1,800 for cocaine and Dan told Myron Harrison (11) that he would pay him after he got paid for a case he was working on. Myron Harrison (11) stated that in June of 1988 Dan Harmon paid him $1,800 with a check that was drawn on the law firm. Teresa Harmon brought Myron Harrison (11) the check and picked up half an ounce of cocaine at the same time. According to Myron Harrison (11), Teresa Harmon paid for most of the ounce and left owing Myron Harrison (11) about $200. According to Myron Harrison (11), Teresa Harmon began buying cocaine

from him on a daily basis shortly thereafter. Between June of 1988 and December of 1988, according to Myron Harrison (11), Teresa Harmon bought several eight balls of cocaine and on several occasions picked up quarter ounces of cocaine. Myron Harrison (11) stated that in August she got two full ounces of cocaine from him and sold both ounces. During this same period of time, Myron Harrison (11) met with Dan Harmon at the El Chico Restaurant and on two occasions gave him quarter ounces of cocaine. Teresa Harmon was paying Myron Harrison (11) some money along but there was a bill with Myron Harrison (11) getting pretty high. In August or September of 1988, Dan Harmon got into a bind over some hot checks and asked Myron Harrison (11) if he could borrow some money. According to Myron Harrison (11) he loaned Dan Harmon $700. About two weeks later Myron Harrison (11) loaned Dan Harmon $1,000 and about two weeks after that Myron Harrison (11) loaned him another $1,000. At that time Dan Harmon and Teresa Harmon owed Myron Harrison (11) $2,300 for cocaine and according to Myron Harrison (11), still do. According to Myron Harrison (11), in October, 1988, Dan Harmon contacted him and told him to cut Teresa off. Myron Harrison (11) stated that the first time he loaned Dan Harmon a $1,000 Harmon talked to him about Pay Taylor Cook’s testimony before the Saline County special grand jury and how the testimony related to Myron Harrison (11). Myron Harrison (11) stated that on several occasions he asked Dan Harmon to check people out before he sold drugs to them which Harmon did.

Teresa Harmon, the former spouse of Benton attorney Dan Harmon, appeared before the United States Grand Jury for the Eastern District of Arkansas on Tuesday, October 17, 1989. Ms. Harmon acknowledged that she had personally observed her husband, Dan Harmon, use cocaine in their home on at least five occasions prior to her pregnancy in 1987. She stated that she did not ask her husband where he got the cocaine because the quantity was so small she figured that someone just gave it to him. No questions were asked concerning Teresa Harmon’s use or sale or distribution of controlled substances since she is also a target of the Saline County investigation for her own drug use and distribution. I felt like if we went into questions which would incriminate her personally she would probably invoke the Fifth Amendment since her attorney, David Smith, was present outside of the grand jury room during her testimony.

Cindy Boshears Tucker (18) appeared before the grand jury to testify on Tuesday, September 19, 1989. Cindy Boshears Tucker (18) stated that she worked for Dan Harmon as a legal secretary during the middle of 1986. She stated that she had known Mr. Harmon since she was about ten years old and that he had been her softball coach. She stated that she worked for Dan Harmon until December of 1987 and quit working for him because her payroll checks were coming back insufficient funds. Cindy Boshears Tucker (18) stated that during the period of time she worked for Dan Harmon in his law office she saw him use cocaine on two occasions. The first occasion was in 1987. She stated that she came to work early one morning and there were no cars outside, so she came in the front door and walked on in.

She stated that Mr. Harmon didn’t know that she was coming in early and she just walked on in his office. She said that he was doing lines of cocaine which he had laid out on his desk. She said she observed him doing these lines of cocaine with a straw. She stated that this incident occurred in February or March of 1987. The second occasion she saw Mr. Harmon use drugs was in November of 1987. She came back from lunch and Dan Harmon was in his law office using drugs. She stated that she told her husband about the incident and her husband told her to start looking for another job so she could quit. Cindy Boshears Tucker (18) stated that she saw Teresa Harmon use drugs on three or four occasions at her house. She stated that she observed these drug usage’s because she used to watch Teresa Harmon’s little boy for her a lot. She stated that Ms. Harmon used cocaine. In fact, Cindy Boshears Tucker (18) admitted that she had used cocaine with Teresa Harmon at her home on one occasion in 1987. She also stated that Teresa Harmon had given her an eight ball of cocaine for a wedding present. According to Cindy Boshears Tucker (18) she was married to her current husband on July 21, 1987, and Ms. Harmon had given her the cocaine prior to their marriage. Cindy Boshears Tucker (18) stated that Teresa Harmon gave her the eight ball of cocaine at Dan Harmon’s law office. Cindy Boshears Tucker (18) stated that Teresa Harmon came to the office and told her that she had left a gift in there on her husband’s desk and it was wrapped up. Cindy Boshears Tucker (18) stated that the cocaine was in a brown sack and it was taped up. Cindy Boshears Tucker (18) stated that she actually got this cocaine from Teresa Harmon after the date of her marriage. Cindy Boshears Tucker (18) acknowledged that it was pretty much a matter of common knowledge in Saline County that Teresa Harmon has sold drugs, but she also acknowledged that she has never been prosecuted in that county for drug sales nor has she ever been arrested for it. Cindy Boshears Tucker (18) further acknowledged that Tammy Harmon, Dan Harmon’s daughter, has a reputation in the county for being a drug dealer.

Timothy M. Lincoln (10) was interviewed by Investigator Robert Gibbs with the Arkansas State Police in connection with his knowledge of this case. Timothy M. Lincoln (10) told Investigator Gibbs that he has known Dan Harmon for less than one year. Timothy M. Lincoln (10) told Investigator Gibbs that during the period he knew Dan Harmon he personally witnessed Dan Harmon purchase cocaine on two occasions from a white male known to Timothy M. Lincoln (10) as Suspect (6). Witness (10) stated that he has personal knowledge of cocaine transactions between Suspect (6) and Dan and Teresa Harmon but that he did not personally witness these transactions. Timothy M. Lincoln (10) stated that Suspect (6) received his cocaine from an unknown white male who flies into the Little Rock Airport every Monday from Dallas, Texas. This unknown white male sometimes flies Southwest Airlines from Love Field in Dallas and sometimes flies on Delta Airlines from the Dallas Ft. Worth Airport. Following his meeting with the unknown white male, Suspect (6)

usually goes to Benton where he will deliver an unknown amount of cocaine to Dan or Teresa Harmon.

Scott Tracy Mattingly (13) was interviewed by Investigator Robert Gibbs with the Arkansas State Police in connection with this case. Scott Tracy Mattingly (13) told Investigator Gibbs that he had known Teresa Harmon for about ten years and had purchased various types of narcotics and controlled substances from her on numerous occasions. Scott Tracy Mattingly (13) told Investigator Gibbs that during 1987 he purchased drugs from Teresa Harmon at her home while her husband, Dan Harmon, was there. Scott Tracy Mattingly (13) stated that Dan Harmon witnessed both of these drug transactions. One of the deals was for two or three hits of acid (LSD) and the other deal was for a quarter ounce of marijuana. In February of 1988, Teresa and Scott Tracy Mattingly (13) were talking about some cocaine and Teresa made the statement that “Danny gets only the good stuff.” Scott Tracy Mattingly (13) took this to mean cocaine. After February of 1988 if Scott Tracy Mattingly (13) wanted to buy drugs from Teresa Harmon he would go to Suspect (7)’s house in Benton and Suspect (7) would call Teresa for him. Teresa Harmon would then bring the drugs over which Scott Tracy Mattingly (13) wanted. Scott Tracy Mattingly (13) told Investigator Gibbs that he knows that Teresa Harmon gets some of her dope from Suspect (8). Scott Tracy Mattingly (13) stated that Teresa Harmon gets marijuana, acid, coke and crank from him. Scott Tracy Mattingly (13) described Suspect (8) as a white male, about 23 years old, 5’9″ in height, weighing approximately 160 pounds and having dark hair. Scott Tracy Mattingly (13) stated that the last time he bought anything from Teresa Harmon was on or about February 13, 1988, when he bought one-quarter ounce of marijuana from her at her house. Scott Tracy Mattingly (13) said that Dan Harmon was at the house when this deal occurred but he doesn’t remember if Dan Harmon actually witnessed the deal. Scott Tracy Mattingly (13) told Investigator Gibbs that Teresa Harmon has lived in Benton all of her life and the fact that she is dealing drugs is common knowledge to the people that live in the area. Scott Tracy Mattingly (13) described Teresa Harmon as a white female, approximately 23 years of age, red hair and freckles, a pug nose, about 5’4″ in height and weighing approximately 100-105 pounds. Scott Tracy Mattingly (13) stated that Teresa Harmon drives a 1985 Toyota Celica which is tan in color. Scott Tracy Mattingly (13) could not say how many times he has purchased drugs from Teresa Harmon but he did say that he has bought from her ever since he has known her. During 1987 Scott Tracy Mattingly (13) said that Teresa Harmon was the only one he did business with.

On August 3, 1989, witness Michael Bearden was interviewed at the Cummins Unit of the Arkansas Department of Correction by Saline County Sheriff Larry Davis and Saline County Sheriff’s Investigator Leonard Lewis. Bearden is currently serving a state sentence for murder. The murder case involved the murder of Michael Bearden’s wife at a time when he lived on

Carywood Drive in Bryant, Arkansas. Bearden told the investigators that he was represented on the murder charge by Benton attorney Dan Harmon. Bearden told the investigators that on one evening while he was home, he received a telephone call from his attorney, Dan Harmon. Harmon told Bearden that he needed to discuss something with him but he couldn’t talk over the phone. Bearden told Harmon that he was on the way to his office. When Bearden got to Dan Harmon’s office Harmon confronted him with a proposition that if Bearden bought the Prosecuting Attorney a Corvette, his murder case would be dismissed. Bearden stated that Joe Hardin was the Prosecuting Attorney for Saline County at the time. Bearden told Harmon that he hadn’t done anything to have to do that. Bearden told the investigators that he was willing to testify about the Corvette deal before the federal grand jury. Bearden told the investigators that there was a $65,000 life insurance policy on his wife and that Bearden was the beneficiary under the policy. According to information developed during Bearden’s interview, the insurance company was not willing to pay off on the proceeds of the policy as long as the murder charge remained against Bearden. Bearden stated that he signed a contingency fee contract with Harmon whereby Harmon would receive a percentage of the policy proceeds as his fee for representing Bearden on the murder case. According to Bearden, part of the insurance proceeds was also to be used to buy the Corvette for the Prosecuting Attorney, Joe Hardin, so that the murder charges could be dismissed. Bearden stated that he never received any money form the insurance company himself but that he did sign some papers which his mother-in-law had sent to the penitentiary which would have released the money to her. Bearden stated that he was contacted by the insurance company one time about the settlement on the policy proceeds but he directed the insurance company to get in touch with his attorney, Dan Harmon. Bearden stated that he has not heard anything else about the insurance policy proceeds since that time. Bearden indicated that the life insurance policy on his wife was carried by the Delta Farm Insurance Company which is located out of state.

Pamela Gwyn Cook (17) was interviewed by me in the United States Attorney’s office on Wednesday, October 11, 1989. The information provided by Pamela Gwyn Cook (17) was lengthy and is recorded in a memorandum of interview dictated by me on October 11. 1989. A copy of that memorandum is attached to this memo. Following my interview with Pamela Gwyn Cook (17) on October 11, 1989, she appeared before the United Stated Grand Jury for the Eastern District of Arkansas on October 17, 1989, for the purpose of giving testimony under oath in connection with the Saline County grand Jury investigation. A copy of her grand jury testimony is attached to this memo. Lastly, Pamela Gwyn Cook (17) was again interviewed by Detective Tom James of the Little Rock Police Department Intelligence division on November 7, 1989, to determine additional information. A copy of this last interview with her is attached to this memo.

The Internal Revenue Service has assigned Special Agent Glen Perciful to do a background tax investigation on former Saline County Sheriff James Steed. He was recently assigned to this investigation and has just begun his work. As of this date I have not yet received any reports concerning his investigative efforts pertaining to the former Sheriff of Saline County. The initial investigation by Agent Perciful will be to determine whether Sheriff Steed’s lifestyle is consistent with his apparent income. In that same vein, we have received additional information concerning the former Sheriff from Arkansas State Trooper Jeff Ramsey. Ramsey used to work as a Deputy Sheriff in the Saline County Sheriff’s Office at a time when James Steed was the Sheriff. Ramsey has mentioned two occasions to us which require further investigation. One of them involved a seizure of cash on a drug arrest which occurred in Saline County. The investigator that brought the money in had counted the money previously and had determined there to be approximately $19,000 in currency. Sheriff Steed wanted the state investigator to sign a receipt indicating that there was $3,000 or $4,000 less in currency than there was actually there. Investigator Ramsey stated that the person that brought in the cash declined to sign the receipt because the receipt did not accurately reflect the amount of currency which had been seized. Trooper Ramsey claimed to have witnessed this particular transaction. Trooper Ramsey also told investigators about a situation which occurred when he was a Deputy Sheriff in Saline County under Sheriff Steed. Trooper Ramsey stated he was on duty one evening and received a telephone call from Richard Sampley (15). Richard Sampley (15) stated that a large scale gambling operation was going on at a house at Lake Norrell in Saline County, Arkansas, and agreed to come down and give the investigator information concerning the gambling operation. Trooper Ramsey stated that he went back to the location of the gambling operation with Richard Sampley (15) and observed the house with the lights on as described to him previously by Richard Sampley (15). Trooper Ramsey then stated that he and Richard Sampley (15) returned to the sheriff’s office and made preparations to raid the house. One of the other officers suggested that Sheriff Steed be contacted before the raid occurred so that he could participate. They called the sheriff and he told them that he was on the way and not to do anything before he got to the office. Trooper Ramsey stated that while Sheriff Steed lived only four or five blocks from the sheriff’s office, it took him over 40 minutes to get there. When Sheriff Steed did get there he told one of the investigators to go home and told Trooper Ramsey that he would go with him and look at this so-called gambling operation. According to Trooper Ramsey, Sheriff Steed made statements which indicated to him that the sheriff did not think the gambling operation was any big deal. Trooper Ramsey stated that when he and the sheriff drove back to the location of the gambling operation previously shown him by Richard Sampley (15) that the house was shut down, locked up and the lights were out. Trooper

Ramsey firmly believes that Sheriff Steed warned Suspect (9), the operator of the gambling house, before they arrived. According to Richard Sampley (15), Suspect (9) provided payments of $2,000 to State Prosecutor Joe Hardin, Circuit Judge John Cole, Sheriff James Steed and Municipal Judge Pete Lancaster each Monday.

On Monday, February 12, 1990, I received an anonymous telephone call which relates to information in the Saline County investigation. The caller refused to identify herself despite numerous attempts by me to get that information. The caller sounded like a mature white female but would not give me her name, address or any information. The caller stated that an individual named Suspect (10) used to work at Suspect (11)’s business in Benton, Arkansas. The caller stated that this person has made statements that James Steed, the former sheriff of Saline County, routinely came by Suspect (11)’s business and picked up envelopes containing large sums of cash. According to the anonymous caller Suspect (10) currently lives in Benton, Arkansas, and could probably be found and interviewed. The caller did not know the purpose of the delivery of these sums of money to Sheriff Steed.

The investigative goals in this case remain a. follows: (1) continue to develop information on the cocaine-marijuana distribution activities of the organization headed by James Calloway. As of this date we have developed testimony from three different witnesses who have indicated that Calloway was responsible for large scale cocaine distribution within Saline County. One witness, Richard Sampley (15), has indicated that James Calloway has distributed approximately 20 kilos of cocaine during the period of time that he was associated with Calloway. Calloway also seems to be involved in one or more murders which may be drug related in Saline County. There is a possibility that he may have been involved, indirectly, in the murders of Kevin Ives and Don Henry on the railroad tracks in Saline County, there is also the possibility that he was involved in the murder of an unidentified Mexican drug dealer who is currently in cold storage at the Arkansas State Crime Laboratory and lastly, he is probably involved in the killing of Richard Winters who was shot to death during an attempted robbery of a crap game in Lonoke County, Arkansas, in July of 1989. The murder of the Mexican drug dealer appears to be connected to Calloway since Carl Samples has identified the Mexican as the person who went to Calloway’s car lot in Bryant, Arkansas, with cocaine in the company of Richard Garrett. (2) All available intelligence information seems to indicate that Marvin Stegall who resides in Hot Springs, Arkansas, is the biggest supplier of cocaine and marijuana in Garland and Saline Counties. Witnesses have told us that Marvin Stegall is the major source of drugs in Saline County and that if we arrest Stegall we will eliminate the primary source of drugs in that county. As of this date we have developed a lot of information on Stegall through narcotics intelligence and also through the testimony or statements of drug dealer Woody Mays. Since Mays is an immunized witness we must do

everything possible at this point to try and corroborate the details of his testimony. On Wednesday, February 14, 1990, I directed Investigator Robert Gibbs of the Arkansas State Police to take Woody Mays to the State Police Headquarters for a thorough debriefing. The State Police is also going to prepare a video-taped statement from Woody Mays. The purpose of the debriefing will be to identify the drop sites which Marvin Stegall uses and his method of operation for bringing in drugs into Arkansas from Texas. Mays says he uses the same MO in every situation, he meets an unidentified male known only as Dave at the Little Rock Airport, takes him to a nearby Waffle House where they exchange drugs and money and then Stegall takes Dave back to the airport for the return flight to Texas. Mays says that he had observed this on a number of occasions and that is the way that Stegall always gets his cocaine. According to Mays, Stegall will meet this person at the Little Rock Airport as many as two or three times a week if Stegall needs that much cocaine. As a part of this investigative effort we have, in the past, placed Marvin Stegall’s house under surveillance. One night while officers were surveilling his house in Hot Springs, two individuals named Gerald Davis and Linda Carol Smart were observed pulling into Stegall’s driveway. Both individuals exited the car while the motor was still running, went into the house, stayed a very short period of time and returned to the car. One of the surveilling officers radioed a marked State Police unit and told the marked unit that the car being operated by these two individuals was followed to a liquor store where both individuals got out, again with the motor running, and went into the liquor store. Surveillance was continued on the car and – it was noticed that they were driving erratically and that the car had no taillights. The marked unit effected a traffic stop and placed the driver under arrest for DWI and no taillights. The passenger in the car, Linda Smart, was given a breath test and she was determined to also be intoxicated. Since she could not lawfully operate the vehicle in that condition, the arresting trooper called for a wrecker to have the car towed to the Saline County Sheriff’s Office. Linda Smart asked to have her purse back but before the trooper would give it to her he searched it and found it to contain a plastic bag with approximately 3 1/2 ounces of marijuana in the bag. Subsequent interview of the subjects revealed that the subject known as Davis had purchased the marijuana from a friend but he would not name the source of the drugs. Linda Smart, who was found in possession of the drugs, would not make any statement concerning the source of the marijuana. Based on the surveillance that was done in this case it is quite apparent that Marvin Stegall provided the marijuana to Linda Smart and Gerald Davis were subsequently arrested with. I anticipate indicting their case in the March session of the grand jury for the sole purpose of applying leverage to them to make them identify Stegall as the source of the drugs they were arrested with. (3) As of this date we have developed a pretty substantial amount of information concerning the drug use and

dealing activities of Teresa Harmon and Dan Harmon. It appears from the information that we have so far that Dan Harmon was not only involved in the use of cocaine but that he distributed it. Marissa Lynn Bragg (7) is one of the people who can actually state that Dan Harmon gave her cocaine. Under federal law if you give someone cocaine you have distributed it whether you make any money off the transaction or not. Our investigative focus in this case with regard to Dan Harmon should also relate to his official corruption activities. We need to follow-up on the allegation that he attempted to have a murder case dismissed in return for buying the prosecutor a Corvette, as in the case of Michael Bearden, and some other cases which appear to be quite suspicious. With regard to his law partner, Richard Garrett, I am most distressed about some cases that do not appear to make any sense. Richard Garrett was the Prosecutor who dismissed the marijuana cultivation case against William Edward Ross six months after Mr. Ross was arrested with the marijuana and after he had given a confession that he intended to sell the marijuana. There does not appear to be any legal justification or explanation for the dismissal of this case. We have also developed information that a witness we had previously interviewed, Everett Vanderberg, has a son who was driving under the influence of alcohol and drugs when his car struck and killed an individual in Saline County, Arkansas. We are in the process of trying to find out the name of the attorney that represented Everett Vanderberg’s son but apparently Vanderberg’s son was never arrested or charged in connection with the vehicular homicide. This situation is quite suspicious since Everett Vanderberg is a close friend of James Calloway who in turn is close friends with Richard Garrett and Dan Harmon. Everett Vanderberg was the individual who sold the sawed-off shotgun to James Calloway which was used in the armed robbery of the Lonoke County crap game in July of 1989 when Richard Winters was killed. As a part of this investigation we should at some point have someone go through all of the criminal cases that were handled by Deputy Prosecuting Attorney Richard Garrett during 1987 and 1988 to determine if there were dismissals of these cases under suspicious circumstances. (4) As one of the investigative goals in this case we will continue to try to find witnesses to verify public corruption allegations involving the former Sheriff of Saline County, James Steed. As a part of that continuing investigative effort we need to locate the individual identified as Suspect (10) and interview her concerning the delivery of packets of money to Sheriff Steed while Suspect (10) was employed by Suspect (11)’s business in Benton, Arkansas. We need to get some kind of explanation as to who told her to make these payments and where the money came from and what the purpose of the payments was. S/A Glen Perciful of the IRS I will continue to focus on the tax aspect of the former Sheriff of Saline County. As stated earlier he has just gotten involved in this investigation and I don’t expect to hear from him until he gets going. (5) Last week I had a meeting with the investigators involved in this case as well as Saline County Prosecuting

Attorney Gary Arnold. Gary Arnold was in complete agreement that our office should handle the prosecution of John Roland which involves marijuana growing. We need to investigate allegations that Roland was warned that police officers were on their way to his marijuana patch with a search warrant. We need to try to determine who, if anyone, warned him of the impending police raid of his marijuana patch. Because of the heavy grand jury schedule in February, we will need to bring a number of witnesses before the federal grand jury during the March session. Those witnesses should include Fred Bankston (8), who will testify about an occasion where she met with Dan Harmon in a motel room and Harmon gave her cocaine. The following witnesses should appear before the grand jury in upcoming months in connection with the Saline County investigation, Woody Mays, Timothy M. Lincoln (10), Myron Harrison (11), James Clouette, Scott Tracy Mattingly (13), Tommy Madison (14), Richard Sampley (15) and Michael Bearden. In addition to this grand jury testimony we have tape-recorded conversations between Witness (11) and Dan Harmon which should be played before the grand jury. As additional investigative steps in connection with this case we need to prepare photo lineups of Richard Garrett and Dan Harmon and show these photo lineups to Carl Samples and Richard Sampley (15) in order to get them to identify these individuals by picture. Future indictments in this case include the following: In the February session of the grand jury indict W. E. Ross for manufacture marijuana. In the “arch session of the grand jury indict Linda Carol Smart and Gerald Davis for possession of marijuana with intent to distribute. The purpose of this indictment will be to secure the identity of the source of the marijuana which is believed to be Marvin Stegall, a significant trafficker in Garland and Saline Counties. Also in the March session of the grand jury we should indict John Roland for manufacture of marijuana in an attempt to identify the identity of the person who warned him about the search warrant in the case. A grand jury subpoena for the telephone toll records of James Calloway for telephone numbers 501-847-4754 and 847-0967 should be issued for a period of one Year. These telephone toll records should identify all out-of-state long distance calls for that period and possibly lead us to his source of cocaine. Also these telephone toll records should supply us with in-state numbers which may establish sources of drugs or points of delivery. During the meeting with the investigators and the Saline County Prosecutor during the week of February 5, 1990, we discussed the possibility of conducting an undercover drug buy operation similar to those being utilized in our JJ cases in Forrest City and Jonesboro. I intend to meet with Major Doug Stevens of the Arkansas State Police and Special Agent Don Kidd of the FBI and Gary Worden of the DEA in order to formulate a plan for such an undercover operation. As I envision this operation, undercover investigators will go to Saline County and purchase drugs for a period of 60-90 days at which time we will conduct a massive arrest of the dealers. Hopefully the arrests of these dealers will allow us to document and develop

information concerning the source of the drugs being dealt within Saline County. In addition to this undercover operation we currently have two young men from Saline County who are making undercover drug buys at the present time for us in connection with this case. I interviewed both of these young men in the U. S. Attorney’s office on February 9, 1990. The first individual is Informant (1) and the second individual is Informant (2). Both of these individuals came in and decided to cooperate following the arrest of a drug dealer in Saline County named Amy Murphy. I currently have Amy Murphy scheduled to appear in the March session of the grand jury. Amy Murphy sold cocaine to an informant under the surveillance of investigators from the Saline County Sheriff’s Office. Informant (1) and Informant (2) told me that they have been involved in the sale and distribution of a Schedule I controlled substance known as “ecstasy” (MDMA) for the last several months in Saline County. The two individuals told me that they obtained quantities of ecstasy tablets ranging from 200-300 tablets per transaction from a Mexican male in Texas named Marino. Marino’s source of supply is another Mexican by the name of Lopez. The two individuals told me that these ecstasy tablets were being manufactured in college laboratories by college students at the University of Texas. On Monday, February 12, 1990, and Tuesday, February 13, 1990, Informant (2) engaged in tape-recorded telephone conversation with his source of ecstasy in Texas, Marino. Marino stated that he would be willing to come, to Arkansas with 300 tablets of ecstasy which he would sell to Informant (2) for the sum of $9.00 a – tablet or $2,700 total. I attempted to obtain funds to make this undercover drug buy on behalf of Saline County Sheriff Larry – Davis from the FBI. The FBI indicated that they were not interested in furnishing buy money for ecstasy. The DEA apparently didn’t have any buy money available to fund this purchase and the Arkansas State Police did not have sufficient money available to assist in this effort also. We are presently trying to formulate some other plan to make this drug buy and a prosecutable case against these ecstasy dealers in Texas without having to go through the FBI or DEA. Sheriff Davis reported to me on Tuesday, February 13, 1990, that he was pleased that Informant (1) and Informant (2) had made a number of undercover buys for them but Sheriff Davis informed me that the would have to shut the operation down shortly inasmuch as his office was running out of buy money.

PROBLEMS WITH THIS INVESTIGATION

The main problems with this investigation to this date are that we do not have sufficient manpower to adequately work this investigation. Detective Patti Watson with the LRPD has recently been employed by the U. S. Marshal’s Service and is currently undergoing 13 weeks of training at Quantico Virginia. Arkansas State Police Investigator Allen Swint broke his shoulder while trying to apprehend a subject and has undergone surgery and

currently is unable to work. As of this date neither the DEA nor the FBI has provided any investigative manpower to this case. I have talked to Don Kidd of the FBI about it and he tells me that he will assign someone to this case as soon as he can. According to what I have heard from the DEA they simply do not have any investigators to assign to this investigation at the present time. Right now we are down to the following individuals as investigators in this case: LRPD Detective Tom James, State Parole Officer Bobby Bell, State Parole Officer Jim Lovett, State Parole Officer Kay Aist and ASP Investigator Robert Gibbs. Saline County Sheriff Larry Davis has tried to help as much as he can but he is also short of manpower. In order to develop a substantial drug prosecution we must have manpower and money to do it. It is difficult to carry on a drug investigation when no law enforcement agency is willing to cough up $2,700 in buy money to arrange for the arrest and prosecution of a significant ecstasy dealer. Apparently, some law enforcement agencies, such as the FBI, do not feel that ecstasy, a Schedule I controlled substance which has literally flooded the streets, is not a significant problem. We will continue to do the best we can through the grand jury and through the investigators that are available and see what happens. I will provide future reports as we update the investigation.

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Memorandum

To: Chuck Banks, Mac Dodson

From: Bob Govar

Date: March 29, 1990

Re: Saline County Investigation

The purpose of this memorandum is to supplement my Previous Memorandum of February 13, 1990 with regard to the Saline County Investigation.We continue our assault on drug trafficking and official public corruption in Saline County through continuing investigation, witness interviews and undercover drug investigations. Since my February 13, 1990, memo we have interviewed a number of other witnesses and have continued with drug operations and arrests in Saline County. As far as witnesses are concerned, we have interviewed the following witnesses: (1) Tony Mullins; (2) Finnis Criswell; (3) Jerry Easom; (4) Johnny L. Green; (5) Teresa Sturch and (6) Amy Murphy. As far as undercover drug investigations and arrests, we have executed federal search warrants in Saline County at the residence of William Edward Ross, William Edward Ross, III and William Edward Ross’s son -in -law. As a result of these search warrants we have seized evidence indicating the continuing existence of indoor marijuana-growing operations in Saline and Perry Counties headed by William Edward Ross and his son. We intend to present an indictment in the April session of the grand jury charging the Rosses and Ross’s son-in-law with conspiracy to manufacture marijuana based on evidence seized showing the existence of an indoor marijuana-growing operation. As part of the evidence seized we uncovered order forms from a place known as the Seed Bank in the Netherlands which specializes in furnishing catalogs in seeds for the growing of exotic forms of marijuana. It should be noted that we have previously indicted William Edward Ross for manufacturing marijuana as a result of is arrest on May 6, 1988 by the Saline County Sheriff’s Office. That particular case was initially filed in the state court in Saline County and was nol prossed without explanation by the then Prosecuting Attorney Richard Garrett. We have also effected an undercover investigation and execution a search warrant at the Little Rock residence of Paul Criswell. Criswell is the son of Finnis Criswell, a long time friend and associate of Saline County drug dealer James Callaway. As will become more apparent below, we hope to be able to leverage Paul Criswell into providing us information relevant to the Saline County investigation.

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The identities of additional witnesses who have been interviewed and a summary of their statements to this office and investigators is as follows:

Tony Mullins is the half-brother of James Davis Callaway. We currently have James Callaway under federal indictment for furnishing a sawed-off shotgun in a crime of violence, the crime being an armed robbery of a Lonoke County crap game during which Richard Winters was shot to death. A previous witness in this investigation, Carl Samples, provided us details of the planning and execution of that robbery. According to Samples, James Callaway planned the robbery and obtained the weapons which were used by the assailants during the course of the robbery. Samples told us that a sawed-off shotgun used in the robbery was purchased from a man by the name of Vanderberg by James Callaway while Samples and another individual, Tony Mullins, were present. According to Samples, Mullins was also a participant in the planning and execution of the robbery. Mullins has corroborated the details concerning the planning and execution of the robbery previously provided by Carl Samples. In addition, Mullins has given us other information concerning Callaway’s involvement in the distribution of cocaine. Mullins has told us, for example, that Callaway asked him on a number of occasions if he would be interested in selling cocaine in Saline County for Callaway. As far as the robbery itself, Mullins has told us, as did Carl Samples, that James Callaway planned the robbery at his house, that he obtained the weapons that were used in the robbery and that he had engaged in a number of other criminal activities including burglaries, armed robberies and other acts of violence. Mullins’ statement concerning the planning and preparation for the robbery by James Callaway was corroborated by his wife, Sherry Mullins, who was present at James Callaway’s house the night the robbery was actually planned. Mullins told myself and investigators that a week or two after the robbery he overheard a conversation between James Callaway and Sylvania Peaks, the man who was running the crap game in Lonoke County, that the Sheriff of Lonoke County was not going to let any federal or state agency get involved in the investigation and that the Sheriff in Lonoke County was going to control the matter. The reference to the Sheriff of Lonoke County was apparently a reference to J.0. Isaacs, the current Sheriff of Lonoke County, Arkansas. Mullins also stated that during the course of the conversation between Sylvania Peaks and James Callaway, Peaks made reference to the fact that the Sheriff was paid a percentage of the game so that the game would not be raided by the Lonoke County Sheriff’s Office. The information concerning the Sheriff of Lonoke County could possibly explain the Sheriff’s reluctance to turn over his investigative file concerning the robbery of the crap game and his constant complaints concerning the federal Drug Task Force involvement in the investigation.

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Finnis Leroy Criswell has been interviewed in connection with the Saline County investigation during the latter part of February and the early part of March, 1990. Criswell stated that he would not provide any information concerning this matter until he had received a letter from the United States Attorney’s Office providing him with use immunity. In the interviews that subsequently followed Finnis Criswell told investigators that he has worked for James Callawy for a number of years, up until recently when Callaway fired him. Criswell stated that he is aware that Callaway planned a number of robberies of trailers where the trailers were taken to Callaway’s house, repainted and sold to private individuals or at auctions. Criswell stated that he personally participated in at least seven such episodes where trailers were stolen and turned over to Callaway. Criswell also stated that he has heard Callaway talk about cocaine and kilos of cocaine on a number of occasions with various people including Richard Sampley, Richard Garrett and Dan Harmon. Although Criswell personally denies ever being involved in drug dealing with Callaway, he strongly suspects that Callaway was dealing with other people since he talked about drugs so often. It should be noted that when Finnis Criswell appeared in my office he was virtually to the point of tears and appeared to have something on his mind which was really bothering him. When I asked Mr. Criswell why he was to the point of tears and was so visibly shaken he stated that he was afraid of what would happen to him since he had participated in the theft of a set of tires. In my opinion, and in the opinion of the investigators that were present, Finnis Criswell was not demonstrating such an emotional reaction based on fear of what might happen to him resulting from the theft of a set of automobile tires. In my opinion Mr. Criswell knows a great deal more than he is telling and that information will become apparent in the information below.

Jerry Arnold Easom is a 30 year old white male who resides at — ——— —— —— in Bryant, Arkansas. His home telephone number is xxx-xxxx and his office number is 847-2876. He is currently employed as an investigator in the Saline Count Sheriff’s Office. On March 5, 1990, I interviewed investigator Easom in connection with the Saline County investigation. He related the following information. In 1985 Investigator Easom was a Detective Sgt. in charge of the Criminal Investigation Division for the Saline County Sheriff’s Office. James Callaway was running a car lot at that time known as “Callaway’s Used Cars” in Bryant, Arkansas. The car lot was located at the intersection of Highway 5 and Highway 183. Investigator Easom told me that he was quite familiar with James Callaway at the time since he (Easom) had had to respond to a number of calls at James Callaway’s residence in Bryant concerning domestic disputes.

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Easom told me that on one occasion he was at Callaway’s car lot where Callaway was providing him with information concerning an individual named Sonnie Small. Callaway alleged that Sonnie Small had stolen a car from him. During the course of relating this information James Callaway told Investigator Easom that he had a problem. Callaway told Investigator Easom that he, Callaway, had been robbed at a gambling game in Lonoke County, Arkansas. Callaway asked Easom how much he would charge to break the legs of the individuals who had robbed Callaway. Investigator Easom told me that he decided to play along with Callaway and so he told Callaway that he could probably break the legs of the first individual and possibly the second individual but probably would have to kill the third one. In fact, according to Investigator Easom he told Callaway that he would probably have to kill all three individuals before it was over with. Callaway told Investigator Easom that he did not care if all three had to be killed. According to Investigator Easom Callaway offered to pay Investigator Easom the sum of $1,500 a piece to kill the three individuals who had robbed him. Callaway identified these three individuals as Richard Samply, Danny Gault and Michael Gault. According to Investigator Easom he told Callaway that he would have to think about it. Investigator Easom went straight back to the Sheriff’s Office and told then Sheriff James Steed about the situation. Investigator Easom told me that he wanted to initiate an investigation concerning conspiracy to commit capital murder against James Callaway. He wanted the Sheriff to give him permission to get a wire and to go back and discuss the details of the killings with Callaway so that he could record the conversation. Sheriff Steed told Investigator Easom to stay away from Callaway and not to do anything else on the matter unless the Sheriff told him to do so. According to Investigator Easom he never heard from the Sheriff on the subject again. Investigator Easom told me that he tried to bring this matter up while testifying before the Saline County Special Grand Jury that was investigating the deaths of Kevin Ives and Don Henry but Special Prosecuting Attorney Dan Harmon cut him off and told him that the grand jury was investigating other matters and that his statements concerning that matter was not relevant to the grand jury’s investigation. Investigator Easom also reported to me that on March 2, 1990, he, Chief Deputy Sheriff Johnny L. Green and State Parole Officer Jim Lovett had gone to visit Finnis Criswell. Investigator Easom told me that at approximately 12:50 a.m. Finnis Criswell told him that after the deaths of Don Henry and Kevin Ives that he and James Callaway had been drinking together and James Callaway told Criswell that he, Callaway, did not intend for the two boys to die, that it wasn’t supposed to go that far. According to Investigator Easom Finnis Criswell stated in the presence of Investigator Easom, Chief Deputy Sheriff Green and State Parole Officer Lovett that he would not repeat that statement or explain what he meant by that.

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Chief Deputy Johnny L. Green and State Parole Officer Jim Lovett have corroborated Investigator Easom’s report of what Finnis Criswell stated.

On March 12, 1990, I interviewed a witness in my office by the name of Teresa Marie Sturch. Ms. Sturch is a 19 year old white female with a date of birth of July 9, 1990. She currently resides at — — —— —— — —- ——— Apartments, Little Rock, Arkansas 72205. Her home telephone number is xxx-xxxx. She is currently unemployed but has worked previously for the Mexico Chiquito Restaurant in Little Rock. Ms. Sturch stated that her roommate, Tracy Hayes, 20 year old white female, can verify much of what she had to say. During the interview Teresa Sturch told me that she had worked at Mexico Chiquito in Little Rock with a female named Cindy Rice. She told me that Cindy Rice used to live with Paul Criswell. She stated that Cindy Rice is currently living with Robert Bratton or Stratton, who lives right around the corner from Paul Criswell. She stated that Cindy Rice’s telephone number is xxx-xxxx. Teresa Sturch stated that she met 24 year old Paul Criswell through a friend known as Jerry Lynn Odom, commonly referred to as “JJ”. Sturch stated that she started dating Paul Criswell about the last week in January of 1990. She stated that she broke up with him around March 5, 1990, after they had an argument on the telephone. She stated that Paul Criswell had last talked to her by telephone on March 12, 1990, when Paul Criswell called her and asked her if she had “narced on him”. According to Teresa Sturch Frank Duncan, a 23 year old white male ran cocaine for Paul Criswell and made collections for him as well. Teresa Sturch stated that about three weeks ago Paul Criswell was talking to her at the game room where he lived in Little Rock, Arkansas, with another older white male by the name of Blain. She Stated that no one else was present during this conversation. During the conversation Paul Criswell told her that Paul Criswell’s father, Finnis Criswell, Paul Criswell’s younger brother, Steve Allen Criswell and James Callaway were involved in the deaths of the boys on the train tracks in Saline County. Paul Criswell told Teresa Sturch that the boys had tried to steal dope from Callaway and had gotten caught. Criswell told her that the boys were beaten up. According to Teresa Sturch this conversation occurred shortly after Valentine’s Day, 1990. Teresa Sturch stated that this information upset her and so she later discussed it with her friends and even later her Parents. Teresa Sturch’s parents reside in Heber Springs, Arkansas, and they contacted the Cleburne County Sheriff who, in turn, contacted Saline County Sheriff Larry Davis. Teresa Sturch told me that she gave a tape- recorded statement to the investigators in this matter Wednesday, March 7, 1990, at the Cleburne County Sheriff’s Office. A Statement is currently being transcribed and is supposed to be provided to the United States Attorney’s Office by Saline County Sheriff Larry Davis.

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Teresa Sturch also stated that her roommate, Tracy Hayes, has been interviewed concerning this matter by the Cleburne County Sheriff’s Office. Teresa Sturch also told me that an individual named Jeff, last name unknown, had served time in jail. Jeff had a girlfriend named Daniella who he had been dating for about three years. According to Sturch, Jeff would clean up the game room for Paul on occasion. Teresa Sturch stated that Jeff sold cocaine and made deliveries of cocaine for Paul Criswell. According to Teresa Sturch this individual known only as Jeff also has information about the deaths of the boys in Saline County. According to Teresa Sturch Daniella’s telephone number is xxx-xxxx. Teresa Sturch related that Paul Criswell had, at one time, as many as five runners and three of them had beepers. She identified these individuals as: (1) Daren Hill; (2) Frank Duncan; (3) Robert Stratton or Bratton; and (4) Katie Brightop. Teresa Sturch related that Katie Brightop’s parents have the last name “Bush” and they live on Stardust Road in Little Rock. She stated that their telephone number is xxx-xxxx. According to Teresa Sturch Katie Brightop sets up cocaine deals for Paul Criswell and delivers Paul Criswell’s cocaine. Katie Brightop’s mother allegedly works in some capacity at Southwest Hospital. Teresa Sturch stated that Paul Criswell gets his cocaine from a black male named Jerry and from a white male named Steve, subsequently identified as Steve Stone. According to Teresa Sturch Paul Criswell gave cocaine to her roommate, Tracy Hayes, on at least five different occasions. Tracy Hayes did not have to pay for this cocaine. Teresa Sturch also related that Criswell had given cocaine to Teresa Sturch’s brothers, Brian Sturch and Ben Duncan, Jr.: Brian Sturch has seen Criswell breaking up large amounts of cocaine. Teresa Sturch told me that her brothers would be willing to give statements concerning what they had seen with regard to the cocaine dealings of Paul Criswell. On Tuesday, March 20, 1990, I interviewed a 24 year old white female by the name of Amy Murphy. Amy Murphy has been previously arrested by the Saline County Sheriff’s Office for selling two quarter gram quantities of cocaine to an informant who was doing an undercover buy under police surveillance. Murphy related the following information to me on the promise that it would not be used against her to prosecute her. Murphy stated that during the summer of 1989 she was fairly heavily involved in the distribution and sale of cocaine in Saline County. She stated that she met her cocaine source while living at the Shadow Oak Apartments in Bryant, Arkansas. She stated she met a 43 year old white female who was also living at ——- ——- Apartments whose first name was Sondra, last name unknown, believed to be Smith. She said that Sondra’s son, named Russell Smith, had been arrested on a number of occasions by law enforcement authorities for DWI’s. According to Murphy, Russell Smith had been obtaining cocaine from a

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Mexican in Little Rock by the name of Juan Ponce. It should be noted at this point that I indicted Juan Ponce in November of 1989 for distribution of cocaine and he is currently serving an eight year term in the federal penitentiary. He is a documented cocaine dealer and has been operating in Central Arkansas for the last seven to eight years. During the course of the investigation we documented that Juan Ponce and two other individuals, Raymond Dominguez and Raymond Dominguez’s ex-wife, Patricia, were making frequent trips to Miami, Florida, for the purpose of picking up quantities of cocaine and returning to Arkansas where the cocaine was then distributed. According to Murphy, Russell Smith was obtaining cocaine from Juan Ponce and was supposed to be selling it and returning the money. Russell Smith, however, began using cocaine heavily and started screwing up the money. According to Murphy Ponce became upset and sent two individuals who were supposed to kill or beat up Russell Smith. Russell Smith’s mother, Sondra, then contacted Ponce and supposedly told him that if he would supply the cocaine to her she could arrange to sell it to various individuals and settle the debt which had been incurred by her son. Murphy stated that during the summer of 1989 she was obtaining as much as three ounces of cocaine a week from Sondra who in turn was getting the cocaine from Juan Ponce. According to Amy Murphy she met Raymond and Pat Dominguez at the apartment of Sondra in Shadow Oak Apartments in Bryant. Amy Murphy also told me that her brother, Daren Murphy, was obtaining his cocaine during the summer of 1989 from the same individual, Sondra. Murphy told me that her brother, Daren Murphy, is no longer in the drug business and is currently holding down a full-time job and is residing in Little Rock. Significantly, Amy Murphy related to me that her biggest cocaine customer during the summer of 1989 was Teresa Harmon, the ex-wife of Benton Attorney Dan Harmon. Amy Murphy told me that Teresa Harmon was hooked so bad on cocaine that she would come to Amy Murphy’s house as many as three to four times a day to purchase cocaine. Murphy told me that Teresa Harmon’s cocaine habit was so bad that Teresa Harmon would buy $5@ worth of cocaine at a time where she could have saved money by buying an eight ball all at once for $250. Murphy related to me that she cut Teresa Harmon off when Teresa Harmon began to bring her young son over to Amy Murphy’s house to purchase cocaine. Murphy stated that she did not believe it was right for Teresa Harmon to leave the baby asleep in the car while she was purchasing cocaine. Murphy related that when she was arrested Dan Harmon came to her and offered to take her case for $1,000. Murphy thought that this fee was really low since she was facing a Class Y felony in State Court. She stated that Harmon subsequently withdrew as her attorney since she did not pay him any money. After the interview with Amy Murphy I related the information concerning Sondra and Russell Smith to Detective Sgt. Mike Sylvester of the Little Rock Police Department’s Narcotics Division.

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Detective Sylvester and the members of the Little Rock Police Department’s Narcotics Division were the investigators on the Juan Ponce-Raymond Dominguez cocaine case. It should be noted that Raymond Dominguez has not yet been prosecuted in connection with that case but he has already agreed, through his attorney, Ralph Cloar, to enter a Plea of guilty to a felony information charging him with possession with intent to distrib- ute 500 grams or more of cocaine. Dominguez has also cooperated by providing a detailed statement of the number of trips he made to Miami, Florida, for the purpose of picking up cocaine for Juan Ponce. Ponce is a Mexican national and upon discharge of his federal prison sentence will be deported to Mexico.

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SECTION C

Some clippings of Dan Harmons misdeed’s. In these cases either the prosecutor or Circuit Judge Cole chose not to file charges or the witnesses didn’t want to testify.

(Circuit Judge Cole never went against his friend Dan Harmon but did not waste any time in issuing a warrant to have Jean Duffey arrested and held without bond for failure to pick up a subpoena.)

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