Reese Family Sentencing

In a stunning blow to the federal government’s case against the Reese family in the New Deal case, Judge Robert Brack imposed the following sentence:

• Time Served
• 3 years supervised release
• $100 fine per count of conviction
• Random drug testing
• DNA samples
• Refrain from alcohol use or possession of alcohol
• Random home/vehicle search
• No gun ownership

He informed them they have the right to appeal his sentence.

The government had originally sought the maximum sentence of five years each for Rick and Terri Reese, plus an additional few years for testifying in their own defense at trial, which was considered by the government to be “obstruction of justice”.  The government conceded they could not seek more than the max of five years.  The government also sought to have Ryin Reese received the maximum sentence of five years.

Rick and Ryin served 17 months in prison and were released when Judge Brack ordered a new trial after information came out that the government failed to inform the judge, and hence the jury, that a key witness in the case, Deputy Alan Batts, had been the subject of an investigation concerning allegations of corruption for nearly a decade.  Batts was never charged with any crime.

Terri Reese served 7 months and was released on bond early to help defense attorneys prepare for trial.

Over forty family, friends and supporters packed nearly the entire courtroom gallery to listen to arguments from the prosecution on why the Reeses should receive the maximum sentence.  Defense attorneys argued to have the charges reduced to a misdemeanor claiming that Congress wrote statutes that apply to FFLs, Federal Firearms Licensees, making violations of Form 4473 a misdemeanor.  The government claimed they have the option to prosecute under either felony or misdemeanor statutes.

Curiously, AUSA Maria Armijo repeated a number of times during the proceedings that the government was not on trial today and that the government should not be punished – presumably by having the judge impose a lower sentence than the maximum penalty.  Nothing was found in the pleadings reviewed that would explain why she might think the government was on trial today.

Ultimately, Judge Brack agreed with the prosecution that it is the prosecutor’s option on whether to charge FFLs under either a felony statute or a misdemeanor statute.  He was not swayed by the novel defense arguments that defendants have the right to choose which statutes to be sentenced under.

AUSA Armijo attempted to have Judge Brack ignore the many character letters he had received in support of the Reeses.  Family and friends pointed out how the Reeses were, she informed, and did not address their actions during the case.   She also argued that the judge should consider all of the behavior associated with the 26 counts the Reeses were acquitted of when imposing a sentence.

In essence, this observer felt that AUSA Armijo was arguing that the government knows that the Reeses were guilty of all counts charged, and that the judge should ignore the legal system that our country was founded on -  a system where the jury is the finder of fact – not the government or the judge.  The effect of this line of argument makes the prosecution the policeman, prosecutor, jury and judge.  To a certain degree, the government is used to this result when they pressure defendants into pleading guilty or plea bargaining a reduced sentence in exchange for snitching on someone else.  Guilty pleas avoid trials, and therefore avoid exposing any deficiencies in the evidence against defendants.  Plea bargaining also skews statistics towards high conviction rates.

Fortunately, Judge Brack decided that in this case the circumstances favored time served.  He noted the Reeses had been law abiding citizens all of their lives.  They had operated New Deal for many years without incident and had been long time residents.  They are a close family, and the case had served them a heavy toll.  Their business has been destroyed, and their property subjected to forfeiture.  He reiterated a statement from a prior proceeding:  the Reeses are not a danger to the public.

The defense had asked the judge to consider a downward variance to to time served if the judge did not sentence them under the misdemeanor statutes.  In this case, Judge Brack explained, the downward variance to the sentencing is appropriate.

Rick Reese, the owner of New Deal Shooting Sports in Deming, NM was convicted of one count of a Form 4473 paperwork violation.  His wife, Terri Reese, was convict one count of a Form 4473 paperwork violation.  Ryin Reese was convicted of two counts of Form 4473 paperwork violations.  The Reese family (including their youngest son Remington) was originally charged with 30 federal counts, including international gun smuggling, international money laundering, conspiracy in addition to the paperwork violations.  Judge Brack threw out the money laundering charge during trial based on no evidence presented during trial.  The jury acquitted them of the conspiracy and gun smuggling charges.  Remington was acquitted on all counts.

In the immediate aftermath of Brian Terry’s murder, the Fast and Furious case in Arizona, the Columbus case in New Mexico, and Agent Zapata’s murder in Texas, the government proceeded to spend millions and millions of taxpayer dollars investigating and prosecuting the Reeses.  Some two hundred agents raided their home and business properties over a one week period the week of their arrests.  The government seized most of their valuable property and is attempting to keep it all in a civil forfeiture case.

Ironically, AUSA Maria Armijo characterized the Reeses as “greedy” for selling their firearms for a profit.

Prior to Judge Brack pronouncing the sentence, each of the Reese attorneys spoke about their clients and positive things the judge should consider when deciding their sentence.  AUSA Armijo continued to reiterate examples of behavior associated with counts of acquittal.  Defense attorney Cory Harbour-Valdez also made a point by point comparison of the differences between Ian Garland, the FFL in the Columbus case, and the Reese family.  The most notable difference was that Garland had pled guilty to selling 193 firearms to cartel smugglers, whereas the Reeses pled not guilty and their case involved at the most 35 firearms.

Rick, Terri and Ryin, dressed smartly in business suits, addressed Judge Brack.  None of them admitted guilt for the counts of conviction, although Judge Brack did attempt to solicit admissions of guilt and remorse.  Rick admitted that he should have realized that there was a problem with Jose Roman, however, he simply didn’t realize there was a problem.  He also pointed out that he had been selling firearms on the border for 25 years without problems.  The only firearms that he is aware that have turned up at Mexican crime scenes were the ones purchased by Penny Torres.

Now that sentencing is over, if there are no more appeals or motions in the criminal case, the government will start the scheduling process in the civil case.  Should the government win the civil forfeiture case, each law enforcement agency involved will divvy up the proceeds of the Reese’s property and one or more individual law enforcement officers will receive individual bonuses.

It is not known if the outcome of the criminal case will affect the civil forfeiture case.  That case is expected to be scheduled sometime before the summer 2015.

Pretty much across the board, family, friends and supporters of the Reeses believe that the Reeses were targeted as a scapegoat, as a diversion away from the government scandals related to Fast and Furious which involved thousands of firearms walked to the Mexican cartel, and the Columbus case, which involved hundreds of firearms. Those Columbus case firearms are also believed to have been walked to the Mexican cartel since the ATF and Border Patrol stopped the  main straw purchaser/smuggler at the beginning of 2010 in a vehicle that contained firearms purchased by both Fast & Furious subjects and multiple straw purchasers in the Columbus case.  Some of those firearms turned up at Mexican crime scenes shortly after the stop in Palomas, Mexico.

Not including the firearms purchased in the undercover sting, the Reese case involved approximately 35 firearms – all purchased by straw purchaser Penny Torres and her brother.  Torres admitted on the witness stand that the Reeses had no knowledge they were straw purchasing on behalf of cartel member Jose Roman.
The government claimed the Reeses are the ones to blame for the deaths in Mexico.
Stay tuned.

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