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weekly report to the Agricultural Stabilization
and Conservation Service (ASCS). Against these
purchases the dealer is allowed sales at auction
of an equal number of pounds. In actuality, it
is the excess tobacco purchased from farmers that
is sold on the dealer's card.
Wells used individuals by recruiting people to
register with ASCS as a dealer in tobacco, which
allowed them to purchase and resell tobacco.
Primarily, purchases were from individuals and
resales were primarily at warehouses, but a few
exceptions were entered. When the tobacco is
sold at the warehouses, the checks are written
to the dealer who is the owner of record. The
dealers endorse the checks and turn them over
to Wells or one of his nominees/alter egos who
handled his money. Often they would cash the
checks and turn the cash over to Wells or one
of his moneymen. Alternatively, the check will
be deposited into a nominee/alter ego corporate
account, or the warehouse check may be endorsed
over to a co-conspirator, or used directly to
purchase an asset.
The dealers are required to file with ASCS weekly
reports of all their purchases and sales of
tobacco, form MQ-79. Wells and his inner circle
of associates actually prepared and submitted to
ASCS the false MQ-79's. A few of the individuals
in the conspiracy were Bud Howard, Albert Earl
Vaughan, James Brake, Rodney Howard, Graham Lee
Day, Milton J. Elder, Ronald Bowen, Harvey Moore
and Harry Lee Roberts.
* * * * * * *
In addition, other individuals and their
controlled corporations were used to launder
money and/or hold assets. These include:
Harry Lee Roberts and Beaufort Leaf Tobacco
Dennis Hawley and Coastal Tobacco Co.
C. L. Gurganus and Gurganus Tobacco Warehouse
H. D. Pegram and Pegram Tobacco Co.
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