Wednesday — February 25, 2004

Drug smugglers sentenced to prison

Sentencing ends eight-year
court proceeding

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"We’re disappointed that it wasn’t a better sentence, but it’s much, much better than what we were dealing with when this first started."

— WILLIAM OSTERHOUDT, Attorney for David Brocklebank

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By GREG STAHL
Express Staff Writer

Two Blaine County men were sentenced last week for their admitted involvement in an international drug smuggling operation that began more than a decade ago in Sun Valley.

David S. Brocklebank, 57, of Hailey, and Patrick O. Cannon, 57, of Ketchum, were sentenced Thursday, Feb. 19 in U.S. District Court in Boise on charges of conspiracy to smuggle and distribute drugs and conspiracy to commit money laundering.

Brocklebank was sentenced to 56 months in prison and a $15,000 fine. Cannon was sentenced to 40 months in prison. The men were given several months to straighten out personal matters before turning themselves in to serve their sentences this summer.

In addition to the sentences, the two men were also ordered to forfeit assets totaling more than $4 million, including a yacht, business interests, bank accounts in Switzerland, Hong Kong, Liechtenstein and the United States, as well as properties in Blaine County. They were both sentenced to five years of supervised release.

Federal District Judge Owen Panner handed down the sentences.

Brocklebank and Cannon were indicted by grand juries four times, beginning in 1996 and most recently in 2003. The two men entered guilty pleas in U.S. District Court in Boise in July to two of 121 original counts alleged in a June 28, 2000 federal indictment and to two counts alleged in a July 15, 2003 supplemental accusation, called Information.

In entering guilty pleas, Brocklebank and Cannon agreed to cooperate in government investigations, debriefings and proceedings concerning their roles, and the roles of others, in drug trafficking and money laundering operations.

The men admitted guilt to conspiracy to launder money, conspiracy to import and distribute in excess of 1,000 kilograms (roughly 1 ton) of marijuana and agreed to money, property and business forfeitures.

Their sentencing was originally scheduled for Oct. 16, but that date was put off at least three times. The maximum penalty for the drug trafficking charge is 10 years in prison and a $250,000 fine. The maximum penalty for the money laundering charge is 20 years in prison and a $250,000 fine.

Brocklebank’s attorney, San Francisco-based William Osterhoudt, said he was disappointed that his client did not receive a better sentence, but added that it was not as stringent as it might have been had more of the charges contained in the original indictment been prosecuted.

Osterhoudt pointed out that Judge Panner recognized Brocklebank’s charitable contributions to his community at the sentencing. Osterhoudt pointed to Brocklebank’s contributions to diabetes research and charities, as well as his work with children.

"During his marriage and after the birth of his children, David began to mature and change," Osterhoudt pointed out in a written statement. "Today he is widely respected as an ethical and conscientious real estate broker … In short, he is an example of a truly rehabilitated individual who has made an abiding promise to work toward the betterment of his world."

More specifically addressing last week’s sentencing, Osterhoudt expanded.

"We’re disappointed that it wasn’t a better sentence, but it’s much, much better than what we were dealing with when this first started," he said.

Cannon’s attorney, Akron, Ohio-based Matthew Fortado, also pointed out that the crimes his client was charged with occurred in the distant past.

"We’re talking about activity that happened a very long time ago," Fortado said. "He’s paying now for mistakes he made in his youth."

Fortado said he believes the sentences were appropriate given the parameters set forth in federal sentencing guidelines. He said they varied between the two men, primarily based on the amount of money that had been laundered.

Fortado, too, said his client has been a model citizen for a number of years.

"He’s been active teaching snowboarding and working on behalf of autistic children," he said. "He’s been self employed in the valley and owns rental property."

On Tuesday, July 15, 2003, Brocklebank and Cannon signed federal plea agreements, admitting to conspiracy to import and distribute controlled substances and conspiracy to launder money. The plea agreement also required the defendants to forfeit to the U.S. "any and all" property and money, "which are traceable to proceeds of the continuing criminal enterprise, drug trafficking and money-laundering offenses…"

For Brocklebank, the plea agreement listed 11 worldwide and local bank accounts, property in East Fork and Hawaii and the assets of 14 businesses. For Cannon, the agreement listed 11 Wood River Valley properties and condominiums, six bank accounts, a Ford pickup truck, a sailboat and the assets of eight businesses.

Upon their compliance with the plea agreement, including cooperation in ongoing investigations, each man is to retain a vehicle and $200,000 "for the benefit of the children, to a trust or other third party."

According to U.S. Attorney Thomas Moss, the money forfeited will be allocated to agencies that helped to prosecute the cases, including the Blaine County Sheriff’s Office and the Hailey Police Department.

"I think by the time we’re through, both Blaine County and the city of Hailey will have realized more than $1 million each," Moss said.

 

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