Pubdate: Thu, 24 Jan 2002
Source: Alexandria Daily Town Talk (LA)
Website: http://www.thetowntalk.com/
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Address: P.O. Box 7558, Alexandria, LA 71306
Contact:  2002 Alexandria Daily Town Talk
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Author: Suzan Manuel

IRS AGENT TRACES MONEY TRAIL IN DRUG TRIAL OF TWO ALEXANDRIA BROTHERS

The prosecution wrapped up its drug case against Timothy and Michael Brown 
in federal court Wednesday by tracing the money trail.

Internal Revenue Service Agent Doris Schoelerman testified she investigated 
finances and found "substantial unexplained income for Timothy Brown."

Schoelerman testified she has worked as an IRS agent for 16 years and 
investigated about 18 money laundering cases.

She compared the amount of money Brown deposited in personal and business 
accounts between 1996 and 1999 to the amount of income he reported for 
those years.

Her investigation revealed "almost a million dollars" more deposited than 
he reported in income, Schoelerman said.

To find the source of the extra income, Schoelerman investigated the 
finances of numerous businesses Timothy Brown owned.

Only one business, Disturb the Peace Audio, reported any income, she said.

Even with the income from the audio business, there was still a large 
discrepancy, she said.

The only other possible source of income, she said, would be money made by 
diluting cocaine with procaine, whose purchases the prosecution had records on.

Procaine is used to dilute crack cocaine and increase volume and profit.

Over the years, the Browns bought enough procaine to produce 574 pounds of 
crack, she said.

That could be broken down to 9,184 ounces. If each ounce were sold for 
$450, it would produce sales of more than $4.1 million, she said.

Schoelerman estimated it would cost about $2 million to buy supplies to 
continue manufacturing crack cocaine on that scale.

Her investigation could not account for any cash on hand or in safes, she 
said. Her investigation was limited to transactions handled by financial 
institutions.

Under cross examination, she said she did not search for patents Timothy 
Brown might own or might have sold.

Selling patents could account for some income, she said.

Schoelerman said there were "a lot of indications (the extra income) came 
from illegal sources

"I found no other source of income but (records of) procaine purchases."

After the prosecution rested, the defense began to present its case.

William Dauphin, attorney for Kenneth Pearson, chose not to call any witnesses.

Pearson is accused of being a street-level dealer for the Browns.

Timothy Brown, who is acting as his own attorney, made his opening 
statement Wednesday.

Brown said he intends to present evidence detailing an "underlying 
conspiracy" by the federal government, local officials and law enforcement 
agencies.

"This case is not just about these three defendants," he said. "It's about 
an ongoing feud between the defendants and some prominent people in this 
community."

He said the government witnesses were "actors for hire."

Once he has finished presenting his evidence, Brown said, the jury would 
find the defendants "not just not guilty, they're innocent."

The trial resumes today.
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