Out of Storage: Lifestyles of the lowly bankrupt bureaucrats

By Van Smith

Baltimore, Jan. 7, 2019

When the Feds came down on the Baltimore-based Rice Organization in 2005, the politically connected violent drug-dealing enterprise had been operating largely with impunity for about a decade. As the facts unfolded in drips and drabs with successive court filings in the hotly contested RICO case that ensued in U.S. District Court in Baltimore, and real-life parallels to themes in the then-running HBO series The Wire became apparent, I took notes.

There was George Butler, already a star on the streets for his appearances in the Stop Fucking Snitching DVD. There was actress Jada Pinkett Smith, co-owning an East Baltimore property with Rice Organization co-conspirator Chet Pajardo. There was the backstory on the multiple stabbing that had occurred during Kevin Liles’ birthday bash at Hammerjacks nightclub in 2002. There was Robert Simels, the bigshot NYC attorney who kept showing up in connection with players I was writing about, and who ended up going to prison himself, for witness-tampering in connection with a Guyanese death-squad drug-dealer he was defending. There was Eric Clash, cooperating with the government and living to tell about it. The story just kept on giving, and kept on connecting to other matters I was pursuing.

So when I picked up some old investigative records of mine from storage earlier today, the name “Raeshio Rice” popped up off the page. Back in the day, I’d poured over bankruptcy filings that I’d connected, through various other public records, to Rice Organization players. People go bankrupt for any number of reasons, but sometimes when a crime figure suddenly loses income as the law enforcers close in, people close to them may start to suffer sudden financial hardship.

Brothers Howard Rice and Raeshio Rice, ages 38 and 32 when the indictment came down in 2005, were the leaders of the outfit, and Raeshio’s name appeared in connection with his mother’s 2004 bankruptcy case. Her listed occupation was “program coordinator” for “the City of Baltimore” since 1994, earning less than $50,000 annually. Her 1999 Bentley Arnage had already been repossessed early in 2004, but she still had payments to make on the 1998 Mercedes Benz E320 station wagon that was titled in Raeshio Rice’s name.

Another 2004 bankruptcy case tied via public records to the Rice Organization featured a woman who’d worked for 29 years as a case worker for the Maryland Department of Social Services, earning a little over $35,000 a year. Among her assets: times shares in Massanutten Resort in Virginia and St. Martin Island in the Caribbean.

A Bentley and vacations at the Friendly Island – not bad for a couple of low-level civil servants.

Star-Crossed: Property co-owned by Jada Pinkett Smith tied to alleged Baltimore drug conspiracy

By Van Smith

Published in City Paper, Feb. 16, 2005

A Feb. 2 indictment of 13 men who federal prosecutors say are involved in a violent Baltimore drug conspiracy called the “Rice Organization” seeks forfeiture of co-conspirators’ assets—including an East Baltimore property that state records show is co-owned by actress Jada Pinkett Smith. The property, 1538 N. Caroline St., is a three-story corner building on a 1,440-square-foot lot in the heart of Oliver, a neighborhood long ravaged by the illegal-drug economy. The indictment does not mention what role the property played in the alleged conspiracy, only that the government would seek “all of the right, title and interest of Chet Pajardo, the defendant, in the real property and appurtenances” there.

The $22,000 purchase of the house by Pinkett Smith (listed as “Jada K. Pinkett” in the property records; her middle name is Keran) and Chet Pajardo, a 36-year-old Owings Mills man named as a defendant in the case, was recorded with the Maryland Department of Assessments and Taxation on Nov. 17, 1994. At the time, Pinkett Smith was 23, had already appeared in her feature-film debut, Menace II Society, and was on theater screens co-starring with Keenan Ivory Wayans in A Low Down Dirty Shame. Less than three years later, in 1997, she married fellow actor Will Smith in a ceremony at the Cloisters in Baltimore County.

Ken Hertz, senior partner of the Beverly Hills, Calif., law firm Goldring, Hertz, and Lichtenstein, who represents Pinkett Smith, told City Paper on Feb. 10 that the actress, who grew up in Baltimore and was living here in 1994, met Pajardo about 10 years ago, when Pajardo was working for United Parcel Service. “He was an acquaintance,” Hertz says, explaining that Pinkett Smith split the down payment with Pajardo and has been paying her share of the monthly mortgage payments ever since. She’s had no contact with Pajardo in many years, Hertz contends, and she’d forgotten she owned the building because her accountant made the monthly payments.

Despite the neighborhood’s plight—two blocks away in 2003, for example, all seven members of the Dawson family were burned to death in their home by one of the drug dealers they’d been trying to run off—Hertz says Pinkett Smith’s was “not a dumb investment, because it was so little money.” The Sun reported on Feb. 12 that Hertz also said it was “very important to note that we’ve been assured that she is not a target of the investigation.” (City Paper first reported on its web site that Pajardo and Pinkett Smith co-own the Caroline Street property on Feb 10.)

Pajardo’s defense attorney in the federal conspiracy case, James Gitomer, told City Paper that “I don’t speak to reporters about my clients” when asked if he would be willing to answer some questions about Pajardo.

Members of the Rice Organization, according to the federal indictment, are charged with murders in connection with a drug-trafficking conspiracy that yielded at least $27 million since 1995. Prosecutors allege the group has brought at least 3,000 pounds of cocaine and heroin to the streets of Baltimore. Chet Pajardo faces one conspiracy count, though the details of his alleged crimes are not given.

One Rice member appears in the locally produced Stop Fucking Snitching DVD that drew widespread attention late last fall as an unusual example of witness intimidation doubling as entertainment. Another of those indicted as an ostensible part of the Rice Organization, Anthony B. Leonard, co-owned the former Antique Row restaurant Downtown Southern Blues, which was housed in a North Howard Street property owned by the family of Kenneth Antonio Jackson. Jackson is a strip-club owner and an ex-con who, in the 1980s, became famous as a top lieutenant for the heroin-trafficking organization of Melvin Williams, a major figure in Baltimore’s drug underworld of the 1960s, ’70s, and ’80s.

Pajardo has a noteworthy connection to city politics. On Sept. 8, 2003, he gave $200 to the re-election campaign of city Comptroller Joan Pratt (D) at a fund raiser catered by Downtown Southern Blues; the event brought in a total of $11,500. Four days later, on Sept. 12, 2003, Pajardo donated $100 to the campaign of Democrat Charese Williams, who challenged incumbent City Councilwoman Stephanie Rawlings Blake (D-6th District) and lost in the September 2003 primary. Pratt also donated to Williams’ upstart campaign, giving $1,500 of the $22,500 it raised. Pratt did not respond to requests for comment by press time; attempts to reach Williams were unsuccessful.

During a Feb. 9 visit to the Caroline Street property co-owned by Pajardo and Pinkett Smith, the building was boarded up but had a fresh coat of paint on the entrance. It appeared structurally sound and well-maintained, though its property-tax assessment dropped from $14,100 to $3,000 this year, according to state records. A pay phone was attached to its outside wall. When a photographer visited the building the next day, a woman driving by in a car shouted out, “Is that Jada’s place?” On another Feb. 10 visit, an unidentified man was seen locking up and leaving the property.

Baltimore City Board of Municipal and Zoning Appeals records indicate that Everton Allen applied in April 2003 to use a portion of the building as a grocery store, though housing records indicate that the property has been vacant since 2000. A phone number could not be found for Allen at the Randallstown address given in his application.

The previous zoning application for the Caroline Street property was filed in 1996 by Brian E. Macklin, who wanted to open a convenience store at the site. A Polaroid of the building contained in the zoning file shows a Pepsi-Cola sign hanging over the entrance that reads andy’s grocery. A copy of Macklin’s application was sent by the zoning board to “C&J Inc., c/o Chet Pajardo,” and the file notes that in 1993 Pajardo and Jay Anderson pulled an occupancy permit for the address. Court records indicate that Macklin’s current address is on Kentbury Court in the Lyonswood subdivision of Owings Mills, the same small cul-de-sac as another Pajardo property that is under federal forfeiture as part of the Rice Organization indictment. The listed phone number for Macklin’s home-improvement company, Sorgen LLC, is disconnected, and no other contact information for him could be found.

An internet search of the Caroline Street address turns up the name of a business, Peaceful Image Inc., located there. Its corporate charter was forfeited for failure to file tax returns for 1998, according to state records, and it was incorporated by Pajardo on Aug. 15, 1995, “to engage in the business of retailing, wholesaling, manufacturing, and distributing clothing and accessories.” The founding board members were Pajardo, Leon Dickerson, and Michelle Narrington. A year earlier, on Aug. 3, 1994, these three and another individual, Condessa Tucker, registered Peaceful Image as a trade name, and stated its business as “silkscreen, embroidery, T-shirts, and hats.” The company’s principal office was in a building Pajardo owned between 1992 and 2000, on the 1000 block of West 43rd Street in Medfield.

Leon R. Dickerson was identified on the Peaceful Image trade-name application as Leon Dickerson III. An obituary for Leon R. Dickerson III was published in The Sun on Dec. 21, 2001, after he was killed in a stabbing. He was 31 years old and described as a social worker and basketball coach who worked with students struggling with learning disabilities and emotional challenges. According to Baltimore County Police records, Dickerson, who was married, was killed in a lovers’ triangle when the estranged husband of his girlfriend entered her Cockeysville apartment and stabbed both of them; only Dickerson died from his wounds. Dickerson’s parents are neighbors of Pajardo and Macklin in the Owings Mills subdivision of Lyonswood.

When Pajardo and Pinkett Smith purchased the Caroline Street property in 1994, the address given for property-tax mailings was in the 2300 block of North Monroe Street in West Baltimore. The owner, then and now, is listed as Wahseeola C. Pajardo. City Paper’s attempts to reach her at her listed phone number were unsuccessful.

 

Cannabuzz: Maryland eyes referendum on cannabis legalization

By Van Smith

Baltimore, Feb. 7, 2019

House Bill 632, to put to voters the question of whether to amend the Maryland constitution to legalize all cannabis, and House Bill 656, to establish a tax-and-regulate scheme for fully legalized cannabis, were introduced yesterday in the Maryland General Assembly by state delegates David Moon (D-20th District) and Eric Luedtke (D-14th District), both of Montgomery County.

Statewide public-opinion polling in Maryland has been tracking pro-legalization majorities for a while, and the most recent one – Goucher College’s Sept. 2018 “Goucher Poll” – found it to be quite pronounced: 62 percent for, 33 percent against. The political hurdles remaining before a referendum could be held, though, remain high: the legislative process, a gubernatorial signature, and a contest of campaigns for and against.

A pipe dream, some might say – and so far, an effort is driven purely by Democrats. (Here is some historical context for the Maryland GOP’s resistance to legalization.) Thirty sponsors back the referendum bill, all Democrats, comprising more than a fifth of the House of Delegates’ 141 members. The tax-and-regulate bill has nine sponsors, also all Democrats. Its cross-filed Senate version, Senate Bill 771, has only one sponsor: Sen. William C. Smith, Jr. (D-Montgomery County), who yesterday announced he’d been deployed to Afghanistan, leaving in March.

The Senate Judicial Proceedings Committee, of which Smith is vice chair, has scheduled a hearing on SB 771 at 12pm on Feb. 26. House hearings have yet to be scheduled for HB 632 and HB 656. Both bills have been assigned to the Judiciary Committee, and HB 656 also has been sent to the Ways and Means Committee.

Cannabuzz: Ethics bill takes aim at Maryland Medical Marijuana Commission

By Van Smith

Baltimore, Feb. 6, 2019

A measure meant to abate potential revolving-door conflicts of interest between Maryland medical-cannabis regulators and licensees is proposed this General Assembly session by Montgomery County state Sen. Susan Lee (D-District 16, Montgomery County). The star-power behind this bipartisan bill suggests it chances of reaching a floor vote with strong committee support are good.

Lee, the Senate’s majority whip, already has a host of cosponsors – seven Democrats and four Republicans – who support putting a full year between the date of leaving an agency post at the Maryland Medical Marijuana Commission (MCC) and new employment with an MCC-licensed grower, processor, or dispenary.

The bill, Senate Bill 552, is before the Senate Judicial Proceedings Committee, where eight of eleven members – Jill Carter (D-41st District, Baltimore City), Robert Cassilly (R-34th District, Harford County), Michael Hough (R-4th District, Frederick and Carroll counties), Justin Ready (D-5th District, Carroll County), William C. Smith, Jr. (D-20th District, Montgomery County), Jeff Waldstreicher (D-18th District, Montgomery County), Mary Washington (D-43rd District, Baltimore City), and Chris West (R-42nd District, Baltimore County) – are signed on as co-sponsors, along with Senate majority leader Guy Guzzone (D-13th District, Howard County).

 

 

Cannabuzz: Six-license limit per investor proposed for Maryland med-pot dispensaries

By Van Smith

Baltimore, Feb. 4, 2019

Baltimore County Republican state Sen. Chris West (42nd District) has proposed clarifying the law of Maryland medical-marijuana dispensary licenses to allow investors to hold interests in up to six dispensaries each.

Currently, the legislative intent of the dispensary-licensure regulations is to limit investors to one dispensary  license only, as previously reported by Doug Donovan of the Baltimore Sun, but national firms that have already invested in multiple Maryland dispensaries have argued that restriction applies only during the application process.

West’s proposal would settle the debate in favor of the national chains rather than force divestments from existing dispensary-management agreements that have taken force since the legal loophole was found and exploited.

CannaCrime: DEA’s cannabis-eradication program declines in Maryland and nationwide

By Van Smith

Baltimore, Feb. 1, 2019

In light of the Baltimore City State’s Attorney’s Office just-filed lawsuit against itself for prosecuting pot-possession cases, and our post this week indicating that the Maryland U.S. Attorney’s Office currently has no active marijuana case (save a recent decade-long fugitive), FSC was curious as to how federal law enforcers have been carrying out their cannabis-prohibition policies in Maryland. So FSC visited the U.S. Drug Enforcement Administration’s (DEA) cannabis-eradication page to catch up on its Domestic Cannabis Eradication/Suppression Program (DCE/SP).

“The DEA is aggressively striving to halt the spread of cannabis cultivation in the United States,” the page explains, so DCE/SP allocates money to state and local law-enforcers for going after “Drug Trafficking Organizations” that are “involved in cannabis cultivation.” The federal funding “allows the enhancement of already aggressive eradication enforcement activities throughout the nation,” the page continues, including going after cultivators who are “growing outdoor cannabis under the cover of various states’ legal cannabis grows.”

“Despite cultivator efforts,” the page proclaims, “the DEA and the cooperating DCE/SP agencies continue to identify and eliminate cannabis grow sites throughout the United States.”

What’s not explained on the DCE/SP page is the dramatic drop in eradication in 2017 compared to the five-year average of 2011 to 2016. The links to the program’s annual data tables allow visitors to do their own math.

Nationwide, 2017 saw a 50-percent drop from the five-year average of weapons seized as a result of cannabis-eradication efforts; a 45-percent drop in indoor grow-site eradication; a 42-percent drop in outdoor grow-site eradication; a 42-percent drop in the dollar-value of assets seized; and a 22-percent drop in arrests.

Maryland’s cannabis-eradication numbers in 2017 compared to the five-year average from 2011 to 2016 show similar declines: a 63-percent drop in indoor grow-site eradication; a 50-percent drop in arrests; a 25-percent drop in assets seized; and a 28-percent drop in the total number of cultivated plants seized. The number of weapons seized in 2017 in Maryland in connection with cannabis-eradication efforts – 120 – was essentially the same as the five-year average of 124.

The number of pounds of bulk processed cannabis seized in 2017 in Maryland – the stuff ready for market – essentially equaled the five-year average of 86 pounds. Nationally, though, 2017’s 151,444 pounds of bulk processed cannabis seized is the highest in the 2011-2017 period, and is 24 percent more than the five-year average.

The national rise in bulk processed cannabis seized under the eradication program is understandable, given large-scale enforcement efforts such as a recent one in California, where tribal lands were being used by cartel growers, often against landowners’ wishes, to undertake industrial-sized, environmentally damaging production operations. Seized were 5,200 plants – and 500 pounds of bulk processed pot.

Cannabuzz: Cannabis-in-cars bill gets bipartisan boost

By Van Smith

Baltimore, Feb. 1, 2019

Harford County state Sen. Robert Cassilly (R-34th District) today introduced in the Maryland General Assembly the Senate version of the Democrat-filed House Bill 350 that would add cannabis to the law prohibiting open containers of alcohol in passenger areas of vehicles on highways. Cassilly’s sponsorship of Senate Bill 418, which is assigned to the Judicial Proceedings Committee, makes it a bipartisan proposal. The House version is scheduled for a hearing on Feb. 19 at 1pm before the Judiciary Committee.

Cannabuzz: It’s “State v. State” in court brief to erase pot-possession convictions in Baltimore City

By Van Smith

Baltimore, Jan. 31, 2019

When a state criminal conviction causes unjust collateral damage to the convict, Maryland courts may issue a “writ of error coram nobis,” which clears the conviction. To do so, arguments must persuade the court that strict legal thresholds have been met. The Baltimore City State’s Attorney’s Office (BSAO) this week made those arguments in Baltimore City Circuit Court, acting as the coram-nobis petitioner on behalf of thousands of pot-possession convicts whose cases date back to 2000.

The defendant in that civil proceeding? The same as the petitioner: the State of Maryland. In essence, the BSAO is suing itself over what it now believes was and is a terrible and harmful miscarriage of justice: the prosecution of a disproportionate number of African-Americans for possessing cannabis.

The petition, signed by BSAO chief counsel Antonio Gioia and chief deputy state’s attorney Michael Schatzow for the elected Baltimore City State’s Attorney Marilyn Mosby, describes pot prohibition’s “sordid history” that “lies in ethnic and racial bigotry,” and its codification as policy was “insanity” borne of xenophobia against “a large influx of Mexicans into America seeking to escape the violence of the Revolution of 1910.”

Some of the arriving Mexicans used “marihuana” recreationally, the petition continues, while some Americans at that time treated ailments with cannabis. A “campaign of government-sponsored fearmongering against the new immigrants” ensued, the petition recounts, resulting in most states outlawing pot possession by 1931. Thereafter, the blatantly racist federal anti-drug effort led by Harry Anslinger resulted in a de facto federal ban in 1937. The “final descent into legislative madness,” argue Gioia and Schatzow, occurred when cannabis was deemed a Schedule I controlled dangerous substance, joining the ranks with heroin and cocaine.

(In a footnote, Gioia and Schatzow add that “the complete irrationality of maintaining marijuana as a schedule I drug” – which “by definition is one that has ‘no accepted medical use’” – “is evident by the fact that there are currently in excess of 47,000 patients enrolled” in Maryland’s medical-marijuana program.)

The petition cites the U.S. Supreme Court in noting “the determination of Congress to turn the screw of the criminal machinery – detection, prosecution, and punishment – tighter and tighter,” while arguing, citing in particular the crack-cocaine sentencing disparity that Congress in recent years has lessened, that the machinery “has been applied disproportionately against the African-American community.”

While cannabis use is a color-blind phenomenon, the petition explains, enforcing pot prohibition has been racially lopsided. African-American Marylanders were nearly thrice as likely as whites to be arrested for pot possession between 2001 and 2010; in Baltimore, the figure was 5.6 times. The racially disproportionate effect of pot-possession enforcement plays out nationwide, the petition points out, and continues even as the wave of decriminalization and legalization has swept the country since 2010 – including in Baltimore City, where “racial disparities continue to exist after the decriminalization of small amounts of marijuana.”

This historical and ongoing race-based unequal treatment under the law, the petition asserts, meets the coram-nobis legal requirement that “challenging the criminal convictions are of a constitutional character.” As for showing collateral damage necessary for a writ, Gioia and Schatzow cite a litany of harms arising from the convictions – not only to reputation, but also “denial of eligibility for government benefits, significant social and psychological difficulties, public housing eligibility, use of criminal history by private landlords as a screening device, convictions operating as a de facto basis for job denial, and for those convicted individuals who are employed, much lower earnings than individuals without a conviction.”

Over time, the petition states “the collateral consequences have increased in both severity and unfairness, in light of the continued disparate enforcement, well-documented by research, and the subsequent legalization or decriminalization of marijuana in various quantities and circumstances.”

Calling cannabis possession a “patently innocuous” offense, the petition argues that the BSAO’s position is “tantamount to a confession of error” for prosecuting it over the years, especially now that “contemporary attitudes and public policy toward marijuana have changed dramatically.”

That the confession is coming from the office that prosecuted the offenses – that the petition is a “State v. State”-captioned matter – adds weight to the BSAO’s groundbreaking argument.

Cannabuzz: Cannabis-in-cars bill scheduled for hearing

By Van Smith

Baltimore, Jan. 31, 2019

Prince George’s County state Del. Geraldine Valentino-Smith (D-District 23A) and three fellow Democrats, with House Bill 350 before the Maryland General Assembly, have proposed penalizing those found with cannabis in their motor vehicles on Maryland highways the same as for open containers of alcohol: a $500 misdemeanor crime on their records, or prepayment of a $530 fine without taking the case to court. Yesterday, the House Judiciary Committee advanced the bill to a hearing scheduled for Feb. 19 at 1pm.