There are updates in the continuing federal trial involving Gerald Shults, owner of the Gas Pipe; Amy Lynn, Inc.; Rapids Camp Lodge; and Ridglea Complex Management, Inc.; his daughter Amy Herrig and 26 other defendants.
The Gas Pipe, Inc. and Amy Lynn, Inc. are alleged to have sold millions of dollars in products commonly referred to as "Spice" in the "designer" or synthetic drug market.
Court documents indicate Gas Pipe and Amy Lynn allegedly sold or distributed those products as "herbal incense," "potpourri," or "aroma therapy products" to the general public throughout Texas and New Mexico, claiming the products were "not for human consumption."
Since the original Federal Grand Jury Indictment was returned Aug. 5, 2014 against Shults, Herrig, and 26 other defendants, the Grand Jury later returned a superseding indictment on May 6, 2015, charging the defendants with Conspiracy to Defraud the United States, Conspiracy to Distribute a Controlled Substance and Controlled Substance Analogues, Maintaining a Drug Involved Premise and Aiding and Abetting, Importation of a Controlled Substance Analogue and Aiding and Abetting, and Conspiracy to Commit Money Laundering.
That indictment also provided notice of 72 specific items of property, including cash, real properties in Texas, Oregon, and Alaska, jewelry, vehicles, airplanes, a boat, and other items that the government is seeking to forfeit should the defendants be found guilty in those cases.
Shults and Herrig have denied the allegations and are fighting to keep their seized houses and other properties. Should they be convicted on all 17 counts, both face up to 365 years in prison, however under federal sentencing guidelines, the actual sentence would likely be substantially less.
Court filings also indicate Herrig is still gainfully employed by The Gas Pipe, Inc..
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There was also a joint court filing by Shults and Herrig to compel the government to use monies from their seized cash funds to pay the property taxes now due on those properties the government is seeking to forfeit.
On March 20, 2015, attorneys for the defendants filed a motion in the civil forfeiture case, seeking return of the funds earlier seized, arguing that the money was needed to pay their property tax and federal income tax obligations. Federal prosecutors had adamantly opposed such action, arguing that the government does not own any of the properties in question, and that the defendants have maintained care, custody, and control of all of the real property included in the cases filed and that those properties are merely the subject of a forfeiture proceeding that is still pending.
On Jan. 22, after that motion had been pending for nearly nine months, U.S. District Judge Barbara M. G. Lynn ruled the government is not required to pay the taxes due on the properties it seeks to forfeit and declined to address Shults and Herrig’s portion of the motion on whether they are or are not obligated to pay the taxes due on those properties.
Court documents submitted by attorneys for Shults and Herrig indicate that as of December 2015, the total taxes due on the affected properties was calculated at $652,486.50.
On Jan. 14 Herrig posted a $100,000.00 unsecured bond and requested modification to her home detention and location monitoring orders that have been in place since May 2015. Attorneys for Herrig also petitioned the Court, requesting permission for Herrig to travel outside the boundaries of the Northern District of Texas for business purposes. She wanted permission to travel Alaska for a few days in late January and February to assist in the continuing operations of Rapids Camp Lodge, described as a fishing lodge in King Salmon, Alaska that operates on a seasonal basis, where Herrig’s husband Dan, is listed in court documents as the lodge manager. Documents indicate the lodge is wholly owned by Herrig’s father and co-defendant, Gerald Shults.
In previous filings in July 2015, Herrig had asked the Court’s permission to travel to Alaska for business and was denied permission, then later filed another motion to go to Oregon for family-related medical reasons. The Court approved the Oregon travel in late September 2015.
According to the US Pretrial Services Officer assigned to the case, even though Herrig would be leaving the boundaries of the Northern District of Texas, her actual location would still be monitored electronically via GPS monitor. Herrig’s latest travel motion was granted Jan. 25.
NBC 5 emailed Shults and Herrig’s attorneys for comment and received no response.
Court documents indicate Judge Lynn has continued the trial to its next setting of Monday May 23 due to its unusual nature and complexity.
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