Lexington Comair Crash Supplemental: “The Company,” Narcotics & Political Corruption in Lexington and Environs in the ’90s
David P. Beiter at the Marijuana Library has compliled an inventory of narcotics smuggling, drug-dealing politicians and law enforcement officials in Kentucky in the 1990s. This is an excerpt, dealing largely with Lexington and environs, of a comprehensive survey. See David Beiter’s site for more.
Entries like this are common: “Frankfort State Police arrested nine criminals who were accused of importing crack from New York City. The operation was run from an apartment complex next to the State Police Headquarters. This gang supposedly supplied most of the crack in Lexington. … “
Sally Denton’s Bluegrass Conspiracy should have been a blow to The Company, routed the deep corruption in the political establishment of the commonwealth, but it has been completely ignored by the Kentucky justice system and press. Denton only reported on a small corner of the corruption, the Lexington scene (with Adnan Khashoggi at its core) and the so-called “Company” still thrives in horse country.
Small-time marijunana growers receive stiff prison sentences, while the officials who are behind the scourge of heroin, cocaine and the gamut of hard drugs RUN THE COMMONWEALTH OF KENTUCKY unperturbed.
The latest wrinkle is an influx of amphetamines spreading across Kentucky from west to east, originating in California. The CIA-driven Company runs the state these days – a confederacy of “patriotic” dunces, and Kentuckians actually buy the vacant rhetoric on gay marriage, etc., and vote these lunatics into office.
Obviously something must be done about the educational system down there. “This is soap – USE it. This is toilet paper – USE it …”
By David P Beiter http://www.marijuanalibrary.org/LOCLAXN.html
810000, Marion County, KY, Al Cross, reporter for The Courier-Journal, personal communication. Officials in the Kentucky state government became suspicious of cash excesses in banks in Marion County, KY. An investigation led to the purchase of the Bank [of Lebanon? (Marion County Seat)] by a cabinet official [The Kentucky State Secretary of Commerce?] 850912, Knoxville, TN, multiple news reports. Andrew Thornton III, retired Lexington, Kentucky, Police Department Narcotics Officer, crash landed via parachute in suburban Knoxville TN with 79 pounds of cocaine. Several other duffle bags of cocaine were found in the Chattahoochee National Forest, totalling approximately 400 pounds. 860324, Morgan Co, KY, multiple reports. Marion “Butch” Campbell, Kentucky State Police Commissioner, is arrested for extorting a one million dollar bribe from a cocaine smuggler (also an FBI agent). This was for airport landing rights in Morgan Co, KY. Several other officials were arrested for assorted corruption: former Morgan County, Kentucky, Judge-Executive Gene Allen; Allen’s son Steve; Morgan County, Kentucky, Sheriff Roger Benton; Coal Baron Titus Frederick; former Kentucky District Judge James H Noble; former State Senator and former State Trooper Lester Burns, Jr; and physician, Dr Bill Davis. ref: “Operation Leviticus” of the FBI. They weren’t even looking for drug trafficking! The FBI thought they were looking at coal money!! 860330, Whitley Co, KY, multiple reports. The Whitley County Kentucky Sheriff, one other KY & 3 TN Sheriffs are arrested for drug trafficking. 860619, Marion Co, KY, WLEX, CNN. Kentucky State Police Detective, 19 year veteran of The Force, Joseph Greenwall (Greenwald), age 41, of Loretto, Marion Co KY is arrested for extorting $5000 to protect marijuana growers, after a two month investigation. Arraignment is set for 27 June. 860704, Marion Co, KY, multiple newscasts. 13,000 marijuana plants on 7 acres, and 46,000 marijuana plants on 30 acres, are found in corn fields in Marion County, KY, by DEA chopper. Presumably these were the growers protected by Joseph Greenwald, Kentucky State Police, retired. 861007, Louisville, KY, The Courier-Journal, pB4. The Jefferson County, Commissioner, Carl Brown, is charged with distribution of marijuana and cocaine. 861018, KY, The Courier-Journal, pB1. Kentucky State Police Commissioner, Captain Marion “Butch” Campbell & Kentucky State Trooper Gerald Griggs were arrested for cocaine trafficking. 861107, near Versailles, Woodford County, KY, KNN, 12N; KET (Lexington). Ten men, one from Louisville, and nine from Marion County were arrested near Versailles, Woodford County, KY. Others escaped. This was on the Jimmy Jack Lewis farm, a major marijuana processing facility. It required 6 dumptrucks to remove the marijuana, approximately 4000 pounds. Marion County again. 861113, London, KY, Lexington Herald-Leader, Nov 13, 86, pA1, A16. “Corruption probe: Half of cases resolved,” by Assistant US Attorney James E. Arehart. Gene Allen, 3 time Judge-Executive of Morgan County, Kentucky, was convicted of conspiracy to murder. Gerald Griggs, Kentucky State Police Trooper, was convicted in the same murder for hire scheme. Both were represented by Kevin Charters of Lexington, KY. William Titus Frederick, coal operator and businessman, of West Liberty, KY, pleaded guilty to manufacturing marijuana. Benny Neely, London, KY, pleaded guilty to transporting stolen heavy equipment across state lines. Norman B Williams III, of Detroit, MI, pleaded guilty to transporting a stolen car across state lines. Dr Billy Davis, Urgent Care Center of Burnside, KY, pleaded guilty to conspiracy to defraud two insurance companies of $1.1 million for a phony traffic accident. Lester H Burns, Jr, former Kentucky State Senator[, former Kentucky State Trooper] & attorney, Somerset, KY, pleaded guilty to insurance fraud and pleaded guilty to conspiracy to transport stolen money ($1.9 million stolen from the Dr R J Acker robbery & murder) across state lines. James H Noble, former Kentucky District Judge, convicted of obstruction of justice and yet to be tried in the insurance fraud conspiracy. Captain Marion “Butch” Campbell, Kentucky State Police Commissioner, to be tried on Jan 5, 87, for extortion for allegedly taking money for protecting drug-trafficking activities. Roger Benton, Morgan County, Kentucky, Sheriff, accused of conspiracy of drug-trafficking. 61100, Whitley City, KY, The Wayne County Outlook, 861126, p 18; from The Commonwealth Journal. William C “Buddy” Wolk, 56, of Naples, FL, died of a barbiturate overdose in an accidental spill at Herbert W “Butch” Spencer’s drug lab. Formerly it was believed that he had died of a heart attack. Rumors have it that he was dragged behind a pickup truck (Dallas Hammond, personal communication) altho Alberta Spencer reportedly contacted the coroner. The DEA raid of 860306 was the largest in its history. In Minneapolis, MN, indictments in a major drug and bookmaking ring were opened in August 86: William C “Buddy” Wolk, unindicted co-conspirator; Mary Louise Wolk, former wife; John Joseph Mussehl, St Paul, MN; Gary Evans Lundgren, Naples, FL; Allan Richard Blake[ney], Naples, FL; Charles Lee Miller, Omaha, NB; James Thomas Mussehl, St Paul, MN; Raymond Edward Gaier, FL & MN, unindicted co-conspirator, deceased of drug overdose in 84. 861216, Whitley City, KY, KET. The Butch Spencer drug lab is said to have had $1 million in drugs and $40 million in chemicals at the time of the bust. 861212, London, KY, KET, WLEX. Gene Allen, Judge-Executive of Morgan County, Kentucky is sentenced to 5 years for conspiracy to murder. Gerald Griggs, Kentucky State Police, had his sentencing delayed. Titus Frederick, coal baron, was let off in return for testifying against Captain Marion “Butch” Campbell, Ky. State Police Commissioner, in his trial for conspiracy to distribute illegal drugs. 861229. London, KY, The Wayne County Outlook, 870108, p14; from The McCreary County Record. The Government rested its case against Herbert “Butch” Spencer, represented by Julius Echeles of Chicago and Warren Scoville of London, KY. The Judge is Eugene Siler, Jr. Jane Graham, Assistant US Attorney, is prosecutor. Spencer claimed that he had leased a walled off section of his garage to Roy Creighton Blakeney and William Charles “Buddy” Wolk, but there was no agreement to manufacture methamphetamine. A small amount of methamphetamine and a walkie-talkie tuned to a unit in the lab were found in Spencer’s house. Unfortunately, they were found in an area not covered by the search warrant. Even more unfortunately, this was before The Supreme Court had declared that a search warrant is unnecessary for police acting in “good faith”. 861230?, London, KY, The Wayne County Outlook, Jan 15, 1987, p18; from The Commonwealth- Journal. Herbert “Butch” Spencer was found guilty after 57 minutes of deliberation. Another federal drug trial for Spencer is scheduled for 27 Jan as well as two civil proceedings. On 861219 Spencer was propositioned to intimidate a juror for $20,000 (5K$ down & 15K$ later) by Billy Rollin Phillips (46), of Clay County. Spencer met with Judge Siler, prosecutor Jane Graham, and DEA agent James Malone. Phillips was arrested 30 Dec. 870105, London, KY. In the Butch Spencer trial, Government witnesses claim that Spencer bought 50 pounds of cocaine in 1980 and hundreds of pounds of marijuana from 80 to 83. And then they waited for 3 years to bust him for crank?! 870108, London, KY. Butch Spencer is convicted in methamphetamine production case. The methamphetamine confiscated was valued at 1 megabuck and there was another 40 megabux worth of chemicals. Spencer is to be sentenced on 9 Feb. Max sentence = (15 years + 125 kilobux)*4. The Judge is Eugene Siler, Jr. Spencer’s claim of leasing his garage for a plastics operation was not believed. 870112, Lexington, KY, KETWLEX. Captain Marion “Butch” Campbell, Kentucky State Police Commissioner, and Roger Benton, Morgan County, Kentucky, Sheriff, are on trial. Houston McNeal, two years a undercover FBI agent, testified that he had made payments of $5000 a month to Campbell, Benton, and Titus Frederick for landing rights at the West Liberty, KY, airport. m(It is unclear if this was each or total.) 870114, Lexington, KY, WBKY, KET, WLKY(?). In the Kentucky State Police Commissioner Captain Marion “Butch” Campbell trial, Titus Frederick, coal baron and marijuana manufacturer testified that in a meeting at Frederick’s house in 1984, three-time Morgan County Kentucky Judge-Executive Gene Allen and Marion Campbell had asked him for contacts in the marijuana and cocaine business. Lester Burns, Jr, former Kentucky State Senator, former Kentucky State Police Trooper, former attorney (now disbarred) bankrolled the operation, and Marion Campbell was in charge of security at the Morgan County airport. Their business grossed about 3/4 of a million dollars a week in cocaine. Houston McNeal, undercover Virginia FBI investigator, testified that Campbell said that he was receiving payments from undercover agents. It is unclear whether Campbell thought that they were FBI agents or drug dealers. Or both. 870115, Lexington, KY, WEKU, KETWLEX In the Kentucky State Police Commissioner Captain Marion “Butch” Campbell trial, Steve Allen, son of the Morgan County Judge-Executive, testified that he saw a $90,000 cocaine sale in November 85 at the house of his father, Morgan County, Kentucky, Judge-Executive Gene Allen. In this transaction, Gene Allen was paid his share plus a share to pass along to Marion Campbell. Gene Allen, Morgan County, Kentucky, Judge-Executive and convicted murder conspirator, testified that he has known Marion Campbell for 25 years and Morgan County Sheriff Roger Benton all of his life. He met several times in late 1983 with Marion Campbell, Titus Frederick, and Lester Burns, Jr to import cocaine from Okalachee, FL. Campbell was said to want the money for his retirement fund. Titus Frederick testified that Gene Allen and Marion Campbell had pushed him to find a cocaine connection. 870116, Lexington, KY, KETWLKY, 10:07PM. In the Kentucky State Police Commissioner, Captain Marion “Butch” Campbell trial, Gene Allen, former Morgan County, Kentucky Judge-Executive who has been convicted of conspiracy to murder, was cross examined. He has changed his story because he got religion in jail. In his trial in September 86 he claimed that he and Campbell were running their own investigation of drug corruption, without telling anyone else and keeping no records of what they had discovered. He passed money to Campbell once by laying an envelope full of money on the dash of Campbell’s truck, and once on the truck seat, but never actually in Campbell’s hand. 870123, Lexington, KY, WBKY. In the Kentucky State Police Commissioner, Captain Marion “Butch” Campbell trial, Jack Evans, Kentucky State Police, testified that he had talked with Campbell thrice about the trial, and got the idea (but was never told openly) that Campbell wanted him to perjure. 870126, Lexington, KY, KETWTVQ. In the Kentucky State Police Commissioner, Captain Marion “Butch” Campbell & Sheriff Roger Benton trial, Louie di Falais, US Attorney & apparently part of the “Operation Leviticus” investigation, testified that in two years of investigation of Marion Campbell, Campbell gave no indications of ever conducting his own investigation. The Chief of Police of West Liberty, the Morgan County Seat, said that he knew nothing of the two years of drug traffic thru the West Liberty airport. Roger Benton, Sheriff of Morgan County, Kentucky, has a previous conviction for bootlegging. 870127, Lexington, KY, WBKY. In the Kentucky State Police Commissioner, Captain Marion “Butch Campbell & Morgan County Kentucky Sheriff Roger Benton trial, Roger Benton testified that he went along with the drug trafficking in hopes to make some arrests and stop the drug operations. 870204, Lexington, KY, KETWKYT. Morgan County Kentucky Sheriff Roger Benton says that he will appeal his conviction on drug trafficking charges on grounds that his trial should have had nothing to do with the trial of Marion “Butch” Campbell. He obviously thinks that Campbell will be found guilty. This came after one verdict was reached but not announced. 870205, Lexington, KY, WLAP (Lexington, KY), 2PM. Roger Benton, Sheriff of Morgan County, KY, is found guilty on all counts, three counts of extortion and two of drug trafficking conspiracy. He faces a maximum sentence of 80 years. 870206, Lexington, KY, WLAP. Captain Marion “Butch” Campbell, Kentucky State Police Commissioner, is acquitted on four counts of extortion and given a mistrial on one count of conspiracy to traffic in marijuana and cocaine.– KY, Comment on Kentucky, KET. Three reasons are given for Kentucky State Police Commissioner, Captain Marion “Butch” Campbell’s acquittal on charges of extortion and drug trafficking. 1) Gene Allen, Morgan County Judge-Executive changed his story from his trial where he was convicted of conspiracy to murder. Formerly, he had said under oath that Campbell was conducting his own investigation. The new story is that they were indeed trafficking in cocaine. 2) Allen said that on four occasions that he gave payoff money to Campbell, but never directly. Allen was the only solid witness against Campbell on this, but he is a self-confessed perjurer. 3) In a taped meeting with an FBI informant, Campbell thanked him for “information.” The prosecution said that this was code word for protection money; the defense said that this was just normal information. The FBI never actually got Campbell on tape accepting payoff money. The jury was leaning towards acquittal on the drug trafficking conspiracy charges, with at least two holdouts. Prosecutor Arehart wants a retrial. I’m sure that none of the jurors would have been in the least bit concerned about their personal safety after finding the State Police Commissioner guilty of drug trafficking! 870200, KY. There are various news reports of a retrial for Kentucky State Police Commissioner, Captain Marion “Butch” Campbell on charges of trafficking in cocaine and marijuana, but no date was given. 870313, Lexington, KY, Various radio reports. Kentucky State Police Commissioner, Captain Marion “Butch” Campbell is scheduled for retrial on 11 May 87 for conspiracy to traffic in cocaine and marijuana. But 11 May 87 will come and go with absolutely no mention on any newscast that a Butch Campbell had ever existed. Morgan County Kentucky Sheriff Roger Benton is denied a retrial on his conviction for extortion and conspiracy to distribute cocaine. 870318, Whitley City, KY, McCreary County Record, p1. Butch Spencer is tried again on drug charges. Garrett, a drug dealer turned DEA informant, says that he bought one kilo of cocaine from Spencer for $45,000. 870322, Richmond?, KY, WBKY, 11PM. Kentucky State Police crime lab director Glen Morgan Baxter is accused of falsifying hundreds of tests, including his own qualifications. 870326, Lexington, KY, KET. Morgan County, Kentucky, Sheriff Roger Benton is sentenced to 10 years in prison and a fine of $10,000 on three counts of extortion and two counts of conspiracy to traffic in illegal drugs. 870331, Louisville, KY, KET. Jeffrey Miles of 2401 Coolridge Ave, Okalona, age 24 or 25, is shot and killed by Louisville cop, John Rucker (Rutger) in a raid on Miles’ home. Miles’ crime was to be living in an apartment inhabited two years ago by a suspected drug dealer. (The correct address was available in the phone directory.) The murderer was sentenced to paid leave and consultation with the chaplain. 870429, Jeffersontown (Louisville), KY, WHAS. Policeman John Rutger is indicted for second degree manslaughter and suspended from the police department. This is for “accidentally” shooting Jeffrey Miles for the crime of living in an apartment inhabited two years ago by a suspected drug dealer. See 870331. 870515, Somerset, KY, WBKY. Lester Burns, Jr., former Kentucky State Senator, former Kentucky State Police, former attorney, is sentenced to 8 years in prison; 4 each for receiving stolen money from Epperson’s Acker robbery/murder, and conspiracy to defraud insurer. Burns will be eligible for parole in 2 years. See 860324, 860716, 861113, 861200, 861231, 870114. 870402, Breathitt Co, KY. James H Noble, Kentucky District Judge, Breathitt County, Kentucky, previously convicted of obstruction of justice for offering to lie in the witness stand for Lester Burns, Jr in a mail fraud trial, is temporarily disbarred. Judge Noble was sentenced to two years on the obstruction of justice conviction. 871123, KY. Congressman Carroll Hubbard asks FBI to investigate the involvement of Henry Vance (Lexington bigwig recently convicted of supplying the gun used to kill the prosecutor in a drug case in Florida) in wholesale cocaine and marijuana trade in western Kentucky. Hubbard states that major drug smugglers are using local airports, including Bowling Green, KY. On 930416, Comment on Kentucky, Bonnie Kelly (the shooter) is the wife of Mike Kelly, Lexington cop. 881129, Lexington, KY, KET. Marvin Washington, Lexington Fayette County Kentucky police officer for the past eleven years, is arrested for armed robbery and possession of illegal drugs. Officer Washington accosted at gunpoint two restaurant employees attempting to make a night bank deposit. He was also found to be in possession of cocaine. 890225, Lexington, KY, WSEK. Fayette County, Kentucky, Sheriff Lonas Taulbee and five others are indicted on cocaine trafficking charges. 890308, WBKY, 11:05PM. Darrell Gibson, 32, arrested by FBI for distribution of cocaine was the target of a hit squad. 890231, Lexington, KY, WBKY, KNN. Fayette County Sheriff Lonas Taulbee resigns effective 14 April. He was convicted and sentenced to 5 years for theft and malfeasance. He is yet to be tried for conspiracy to distribute cocaine. 890411, Lexington, KY, KNN. Fayette County Sheriff Lonas Taulbee, convicted for stealing $15,000 from the Sheriffs Department, will resign and rerun for election. 890505, Lexington, KY, WBKY, 3:15PM. Fayette County, KY, Sheriff Taulbee and 5 others including Arnold Freeman and Bobby Issacs have trial for conspiracy to plant cocaine in the vehicle of chief deputy Joe Albauh, postponed. 900615, Lexington, KY, WEKU. Lexington, Fayette Co, KY Sheriff Taulbee loses appeal on theft & malfeasance and is sentenced to 5 years. 00616, Nicholasville, KY, KNN. Danny Allen Murphy is charged with suffocating his wife in 85. Also on trial next month on Federal drug charges. His occupation is given as Lexington-Fayette County Police Officer. 900820, Lexington, KY, KET. Lexington Police Officer Dan Murphy is on trial for distribution of marijuana, and weapons charges. Judge Forrester will decide if the jury should see Murphy’s Jessamine County fortress/plantation/home. The charges are worth 30 years. 900822, Lexington, KY, KET. Danny Allan Murphy, former Lexington Kentucky Police Officer is convicted on marijuana distribution and machine gun charges. He is yet to stand trial for murder in Jessamine County. 910924, Lexington, KY, KNN. Gregory Drake Wahl, a Fayette County Sheriff’s Deputy, was arrested Monday for selling 1/4 pound of marijuana within 1000 feet of a school. 920724, KY, WFLW. Cops in Berea, Lexington, KSP & Feds divide $121K taken from the Columbian Detrick Rojas on 0411. $62,298 to Berea, $24,919 each to Lexington & KSP, and balance to Feds. Also Pulaski County was given $8000 of the $10000 for selling Ralph David Perkins’s car. 930128, Lexington, KY, KET. Former Lexington Police Officer Danny Murphy has his charges of use of a machine gun while drug trafficking overturned in the 6th Circuit Court of Appeals in Cincinnati, OH. He still is in prison for murdering his wife. In a personal conversation with DPB at Rainbow 93, an individual volunteered that his brother-in-law was one of the fronts for Murphy, holding title to Murphy’s estate in alternate years. Murphy beat the machine gun rap because the gun was in the attic and the pot was in a freezer in the basement, this being a sufficient distance that he could not be using his machine gun in perpetration of a drug crime. 930318, Lexington, KY, KET. Former Lexington, KY, police officer Danny Murphy is convicted of possession of a pistol while marijuana trafficking and sentenced to five years in prison. He was formerly acquitted of possession of a machine gun while engaged in his moonlight business. See 930128 & 910719 & 900822 & 900820 & 900816 & 900608. 930409, Lexington, KY, KET. Former (fired in 1979 for insubordination after 8 years of service) Lexington Police Officer Bill Canan is arrested by Federal Marshals on charges of drug trafficking and intimidation of a witness. Officer Canan allegedly bought 24 oz of cocaine and then threatened to kill Robert Scott, his supplier turned Federal Witness, if he squealed. This is part of an investigation ongoing for 1.5 years. Police Chief Walsh vows that he is “finally gonna clean up the Good Ole Boy Network” [his words]. See 850912, 930716. 930416, Lexington, KY, WSEK. Ella Flynn, mother of Melanie Flynn who was disappeared under mysterious circumstances in 1977 claims police ineptitude & indifference. Mrs Flynn claims that she gave police many details of names, places, times, etc, which were ignored. She also claims that part of the case file was disappeared. Chief Walsh denies all these false allegations. This re-surfaced upon the arrest of Bill Canan former Lexington Police Officer on cocaine trafficking charges. Rumors at the time of Melanie Flynn’s disappearance were that she knew too much about the Lexington Police drug trafficking. See 850912, 870112, 871123, 890225, 900820, 930409, Sally Denton, The Bluegrass Conspiracy, Doubleday, 1990. 930421, Lexington, KY, KET. Former Lexington Kentucky Police Officer Bill Canan is indicted on 14 counts. Charges include drug possession and distribution in ’88, possession of a fake DEA ID, and possession of a pen gun and machine gun. His lawyer is Fred Peters. One of the character witnesses at the bail hearing was the same as for Danny Murphy. (See 900608, 900816, 900820, 900822, 910719, 930128, 930318). The Judge had enuf sense not to pay any attention to him this time. Officer Canan is ajudged to be a danger to the community and an escape risk. 930716, Lexington, KY, KET. Former Lexington Police Officer and accused cocaine trafficker Bill Canan has his 13 counts (didn’t it used to be 14 counts?) dropped to 6 counts. Apparently he is still charged with threatening to kill a confidential informant. See 850912, 930409 930824, Frankfort, KY, KNN. Frankfort State Police arrested nine criminals who were accused of importing crack from New York City. The operation was run from an apartment complex next to the State Police Headquarters. This gang supposedly supplied most of the crack in Lexington. 931019, London, KY, WSEK. Former Lexington, KY, Police Officer Bill Canan’s trial started on 12 Oct. Today he took the witness stand and swore that he had never engaged in the trafficking of cocaine!! More to come, I expect. See 930409, 930716. He was eventually convicted on the cocaine trafficking and witness intimidation charges & not guilty on the weapons charge. 931216, Lexington, KY, WSEK. Lexington Police Officer Bill Canan has his convictions on cocaine trafficking, intimidation of witnesses, and carrying a false DEA badge upheld. 940104, Lexington, KY, KET. Horrace Inman, 15 year veteran of the Lexington Police Force, is charged with felony possession of cocaine. The Police Department has no further comment.