Acting United States Attorney Robert C. Stuart announced that on Tuesday, Aug. 1, 2017, co-defendants Allen E. Peithman, Jr., Sharon A. Elder, were sentenced, respectively, to 129 months and 63 months in prison and fined $500,000 each. They were both ordered to pay over $5,000 in restitution, and their corporations, Cornerstone Plaza, Inc., and AEP Properties, L.L.C., were also ordered to pay over 2.5 million dollars in fines. In addition to the prison sentences and fines, all four defendants were found jointly liable for a money judgment of $1,142,924.32 and ordered to forfeit a bank account and “potpourri" and drug paraphernalia seized during 2015 searches of their “head shops," Dirt Cheap and Island Smokes.
In March, a federal jury convicted Peithman, Elder, and Elder’s corporation, Cornerstone Plaza, Inc. of conspiracy to distribute drug paraphernalia, investment of illicit drug proceeds, conspiracy to distribute misbranded substances, conspiracy to commit mail fraud and conspiracy to structure financial transactions. Peithman’s corporation, AEP Properties, was also convicted of conspiracy to structure. The jury also found that a bank account in the name of Cornerstone Plaza, Inc., as well as seized “potpourri" and drug paraphernalia should be forfeited. The money judgment was determined by U.S. District Judge Richard G. Kopf.
The defendants were sentenced as follows:
Peithman:
Conspiracy to distribute drug paraphernalia 36 months
Investment of illicit drug proceeds 115 months
Conspiracy to distribute misbranded substances 36 months
Conspiracy to commit mail fraud 115 months
Conspiracy to structure financial transactions 115 months - all sentences to run concurrently
Violation of supervised release 14 months - consecutive to above sentences
Fine $500,000.00
Special assessments $500.00
Restitution $5,186.56
Elder:
Conspiracy to distribute drug paraphernalia 36 months
Investment of illicit drug proceeds 63 months
Conspiracy to distribute misbranded substances 36 months
Conspiracy to commit mail fraud 63 months
Conspiracy to structure financial transactions 63 months - all sentences to run concurrently
Fine $500,000.00
Special assessments $500.00
Restitution $5,186.56
Cornerstone Plaza, Inc.:
Fine $2,060,000.00
Special assessments $2,000.00
AEP Properties, L.L.C:
Fine $450,000.00
Special Assessment $400.00
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Food and Drug Administration, Homeland Security Investigations, and the Nebraska State Patrol.
Source: U.S. Department of Justice, Office of the United States Attorneys
