Feds indict lawman in Liberty County
Force’s captain accused of selling stolen weapons
By CINDY HORSWELL
HOUSTON CHRONICLE
Aug. 5, 2010, 10:58PM
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Liberty County Sheriff's Capt. Harry Kelley has been indicted on charges stemming from a federal probe into an illegal firearms-trafficking scheme involving 500 missing weapons from an evidence property room.
Kelley, 55, is charged with illegally possessing and selling at least 103 stolen firearms, including two with illegally obliterated serial numbers. He also is accused of conspiracy and mail fraud by helping a Humble gun shop owner acquire Glock training pistols that are only authorized for law enforcement use.
Kelley, rather than face arrest, appeared Thursday afternoon before U.S. Magistrate Keith Giblin in Beaumont to plead innocent to the charges. He was released on his own recognizance on the condition he keep away from all guns.
"He intends to fight. He does not believe he has done anything criminal at all," said his attorney, Jack Zimmermann, of Houston.
As a 25-year veteran in law enforcement, Kelley faces "higher stakes" if incarcerated with others he has sent to prison, Zimmermann added.
"He's provided years of loyal service and deserves the same presumption of innocence as anyone else," the attorney added.
The 500 weapons disappeared from the Cleveland Police Department's property room when Liberty County Sheriff Henry Patterson was the assistant chief there before being elected sheriff in 2009. Kelley was then a Cleveland detective and custodian of the evidence room until Patterson hired him to be a sheriff's captain.
Kelley and Patterson had the only two keys to the evidence room until their departure. The weapons weren't discovered missing until an inventory was taken in 2009 after they left.
Patterson could not be reached for comment. His spokesman, Steve Greene, said after the announcement of the indictments that Kelley had been placed on administrative leave without pay.
Guns seized at range
According to the investigation, Kelley is accused of illegally trading the stolen weapons for personal gain.
The contraband guns were seized from the Sportsman's Outlet and Indoor Range in Humble. The shop's owner, Gary Lee, has since pleaded guilty to having knowledge of the stolen weapons and not reporting it.
Lee, who at one time served as a reserve Liberty County deputy, could not be reached for comment.
According to an Alcohol Tobacco and Firearm agent's affidavit, Lee reported Kelley had given him the guns from 2007 to 2008 in exchange for ammunition, targets and firearm-cleaning supplies.
During this time, Kelley also received 26 guns from Lee for which there were no records found at the shop to document transfer of such a large cache of weapons, the affidavit said.
Most of the guns confiscated had been listed by Kelley as "destroyed," the report said.
20 percent of guns found
Ike Hines, who served as Cleveland's police chief when the guns disappeared, told federal agents he never gave permission for any weapons to be sold.
He said he had been approached by Patterson and others who suggested Cleveland's weapons could generate funds for the department but Hines did not want to see the weapons get in the hands of criminals.
U.S. Attorney John M. Bales said investigators have accounted for about one-fifth of the missing weapons so far and that a search will continue for the rest. The wide assortment of weaponry includes everything from Glock pistols and .357 revolvers to 12-gauge shotguns and high-powered rifles.
Bales said the yearlong investigation is not over: "I can't predict where it will go. Sometimes a suspect, for instance, may identify others who were involved."
Asked whether Patterson is a target, Bales said, "People have wondered because of his close personal friendship with Kelley. But Patterson is not a defendant, not a target."
Kelley's trial is tentatively set for Sept. 20 in U.S. District Judge Thad Heartfield's court in Beaumont.
cindy.horswell@chron.com
Liberty County sheriff’s captain indicted on 107 counts
Acting US Attorney John M. Bales explains the 107-count indictment against Liberty County Sheriff’s Captain Harry Kelley during a press conference at the federal building in Beaumont on Thursday, August 5. He was joined by Assistant Special Agent Rob Elder with Houston office of the ATF. The ATF and the Texas Rangers helped in the investigation.
“This case will be a top priority for the Department of Justice and the US Attorneys Office. Public servants cannot be permitted to abuse their office, authority or position for their own personal benefit.”
John M. Bales, Acting US Attorney of the Eastern District
By VANESA BRASHIER
Updated: 08.09.10
Calling it “breathtaking in its scale,” Acting US Attorney John Malcolm Bales of the Eastern District of Texas explained the details of the 107-count indictment against Liberty County Sheriff’s Captain Harry Leroy Kelley.
At a press conference held Thursday, August 5, at the federal building in Beaumont, Bales, standing alongside Rob Elder, assistant special agent with the Houston Bureau of Alcohol, Tobacco and Firearms (ATF), described the case against Kelley as “beyond disturbing in the boldness of the conduct.”
“Normally, I would be pleased to tell you about an indictment because they are a significant point in the prosecution of any case, but today is quite different,” said Bales. “We have, what I think is, sobering, sad news to share with the citizens who live in the Eastern District, particularly those who live in Liberty County. We have the indictment of Liberty County Sheriff’s Captain Harry Kelley.”
At the time the alleged crimes were committed, Kelley was a detective for Cleveland Police Department (CPD) with the responsibility of supervising that department’s evidence room. During that same time period, he also was the supervisor of CPD’s firing range. Documents used in the investigation say that Kelley and Liberty County Sheriff Henry Patterson (who was then the assistant chief at CPD) were the only two people at the department with keys to the evidence room. The disappearance of the weapons was discovered during a routine evidence inventory conducted by CPD in 2009.
Bales explained that 103 counts of the indictment represent the theft and barter of 103 guns from CPD’s evidence room. Two more counts relate to his possession, theft and barter of two guns that do not have serial numbers, which is also a violation of federal law. Another count accuses Kelley of stealing and bartering a large amount of ammunition that was traded to CPD from federal agencies in exchange for use of CPD’s firing range.
The indictment alleges that Kelley had an arrangement with an Humble-based gun shop, Sportsman’s Outlet and its owner Gary Lee, in which Kelley bartered the weapons to Lee for store credits for firearms and equipment that Kelley used for his own firearms business. At the time, Kelley was operating a firearms training business for citizens to be certified for concealed handgun permits.
The indictment also alleges that Kelley covered up his deeds, even though he had evidence destruction orders, signed by a judge, that required him to destroy the weapons.
“You may or may not know how evidence is disposed of, but it must be crushed, melted or cut up. There is no, absolutely no, provision in the law for a police department to not destroy the weapon after it has been ruled by a court for it to be destroyed,” said Bales, adding that Kelley violated this law over 100 times — once for each weapon recovered.
However, back in 2009, when the ATF conducted a search warrant on Lee’s home and gun shop, the search warrant documents state that approximately 500 weapons were missing from CPD’s evidence room. At Thursday’s press conference, Bales would not answer questions about the other 400 missing weapons, stating that he could only speak about the weapons mentioned in the indictment. He stated that to his knowledge none of the firearms recovered were automatic weapons.
The final charge against Kelley is for conspiracy and mail fraud. The indictment states that Kelley received $2,764 in cash funds from Gary Lee and the funds were converted into a cashier’s check in order to purchase six “Simunition” pistols used in law enforcement training. The crime occurred because Kelley allegedly used Cleveland Police Department stationery in order to purchase the weapons from Glock, the company that manufactures the training pistols, which are intended for law enforcement training only.
When asked if Kelley could also face charges for avoiding the payment of taxes on the purchase, Bales said, “It is an exclamation point on the scheme. But in my point of view, we don’t have an active tax case against him.”
Bales was also asked if Sheriff Henry Patterson had also been cleared of any wrongdoing, to which he responded, “He is not a defendant in this case.”
Each of the counts for possessing, trading, bartering and selling a stolen firearm carries a sentence of up to 10 years in prison. The count of conspiracy and mail fraud carries a sentence of up to five years.
Bales said that there are sentencing guidelines a judge will use to determine Kelley’s sentence if he is convicted.
“I don’t know what he will end up with. The counts could be grouped. In my experience, this kind of case would involve some imprisonment, but how much or how little will have to be determined,” he said.
When the subject was brought up regarding sentencing of Gary Lee, who has since pleaded guilty to Misprision of a Felony, Bales said he is unable to talk about Lee’s case. In court documents obtained by Houston Community Newspapers, the US Attorney’s office said that Lee had “knowledge of the actual commission of a felony cognizable by a court of the United States, to-wit, possession of stolen firearms and ammunition.”
Even though it has been widely known that Kelley has been the target of a federal investigation since it has been reported by news media in Liberty County and the surrounding area, Sheriff Henry Patterson has kept Kelley on duty, even allowing him to be part of investigations. In recent months, he was seen taking part in game room raids in Cleveland and was photographed handling evidence.
Because of this, Bales was asked if the cases involving Kelley could potentially be contaminated.
“I don’t know. We are not investigating anything further to see if Kelley may have done something suspect in another investigation, but it certainly impacts the credibility of the officer,” he said.
Regarding the potential of state charges against Kelley, Bales said that information would have to be sought from the Liberty County District Attorney’s Office. On Thursday afternoon, an e-mail was sent to Liberty County District Attorney Mike Little seeking information about state charges, but by late Thursday, he had not replied.
Late Thursday, Liberty County Sheriff’s Office issued a statement that reads, “As a result of the indictment of Captain Harry Kelley by a federal grand jury in Beaumont, Texas, he will be placed on Administrative Leave without pay by the Liberty County Sheriff's Office.”
HCN responded to the e-mail by inquiring as to whether or not Kelley had turned in his badge, car and gun; if he has lost his privileges and access to county facilities; and if he will lose his medical insurance during the months he is expected to be on administrative leave without pay. By Thursday evening, the sheriff’s office had not responded.
Bales summed up his feelings about the case in his closing comments.
“The bottom line is the public trust is sacred and it is particularly galling when those who are sworn to uphold the law not only flaunt the obligation of their office, but trample it,” he said. “This case will be a top priority for the Department of Justice and the US Attorneys Office. Public servants cannot be permitted to abuse their office, authority or position for their own personal benefit.”
While the press conference was under way, Harry Kelley was making his initial appearance in federal court. He self-surrendered to authorities after learning of the indictment.
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