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Club 7 Deuce allegedly front for drug ring

By Bryan C. Sualog

HAGÅTÑA, Guam (Pacific Daily News, November 19, 2008) - District Court of Guam Chief Judge Frances Tydingco-Gatewood has frozen the bank accounts of Tamuning bar Club 7 Deuce and its owners Rodney and Josephine Sherry, as well as the bank account of bar manager Konan Santos, in connection with an alleged drug ring, according to federal court documents.

According to a November 17 federal forfeiture complaint filed by the U.S. Attorney’s Office, the money in the accounts allegedly was derived from proceeds from alleged drug trafficking.

During a federal raid earlier this month, agents seized more than 60 grams of the drug ice -- with a street value of more than US$40,000 --and US$195,000 in cash in connection with the case, according to court documents.

As of press time yesterday, there were no criminal charges filed against Rodney and Josephine Sherry or Konan Santos in federal court. Multiple phone calls and an e-mail to the U.S. Attorney’s Office for comment weren’t returned as of 5:30 p.m. yesterday. The Pacific Daily News made calls to Club 7 Deuce, but the bar’s business telephone number has been disconnected.

"It’s an ongoing investigative matter," said Tony Marquez, the resident agent-in-charge of the local office of the Drug Enforcement Administration. "That’s all I can say at this point because it’s too early to talk about this."

While he didn’t provide further details about the case yesterday, DEA’s Marquez said the street value for one gram of ice on Guam and Saipan is between US$700 and US$800.

"It’s the highest in the nation," Marquez said. "It’s incredible. It’s a waste of money."

The November 17 civil federal forfeiture complaint sought to seize:

A local bank account in the name of Club 7 Deuce, which contained US$50,871.07 as of November 3;

Another bank account belonging to Rodney Sherry and his wife, Josephine Sherry, which had a total of US$86,608 deposited into the account between February 11 and September 30; and

A bank account in the name of Rodney and Josephine Sherry and Konan Santos.

According to a federal declaration by Internal Revenue Service Special Agent Shaun Morita, a search warrant was executed on the Carlos Heights apartment of Arthur Sherry Jr. in upper Tumon, as well as three vehicles known to be operated by him, November 5. The declaration identifies Arthur Sherry as Rodney Sherry’s brother.

During the execution of the warrant, according to the declaration, officers allegedly found: more than 60 grams of suspected crystal methamphetamine, also known as ice; approximately US$195,000 in cash; and drug paraphernalia and materials utilized in the packaging and distribution of controlled substances.

According to the federal declaration, Arthur Sherry was detained by law enforcement officers and informed of his Miranda rights, which he waived. He allegedly told officers that beginning in January, he began purchasing ice from his brother for about US$14,000 an ounce.

Arthur Sherry said that of the US$195,000 found during the execution of the November 5 search warrant, about US$150,000 was allegedly profit from selling ice and the rest was money allegedly owed to his brother for the drugs, according to the declaration.

Arthur Sherry said his brother allegedly gets the ice from Hawai’i and that Santos facilitates its transfer to Guam, the declaration stated. Arthur Sherry hasn’t been charged in the case.

On November 6, agents with the DEA and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, along with Guam Police Department officers, executed a search warrant on the Sinajana residence of Rodney and Josephine Sherry and Santos.

Authorities allegedly found more than US$50,000 throughout the house -- US$9,312 in Santos’ bedroom and US$35,416 in Rodney and Josephine Sherry’s bedroom. According to the declaration, there were no records of any kind that could identify the source of the US$35,416 that was found.

Also seized in the case were more than 10 airline itineraries and receipts for round-trip travel from Honolulu to Guam. The tickets were allegedly purchased October 22 for US$9,946.60, according to the federal declaration.

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