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JC Moon owners face drug, tax evasion charges

Two people from Ashland were arrested Tuesday in Fort Lauderdale, Fla., following indictment on charges in connection with operating of JC Moon in Ashland, according to a news release issued by John W. Vaudreuil, United States Attorney for the We...

Two people from Ashland were arrested Tuesday in Fort Lauderdale, Fla., following indictment on charges in connection with operating of JC Moon in Ashland, according to a news release issued by John W. Vaudreuil, United States Attorney for the Western District of Wisconsin

John C. Morrison, 70, and Anna F. Novak, 57, of Ashland, were indicted Dec. 10 by a federal grand jury in the Western District of Wisconsin. They appeared in federal court in the Southern District of Florida, and were released on bail and ordered to report for arraignment in U.S. District Court in Madison on Jan. 6.

As set out in the 35-count indictment, Morrison and Novak owned and operated JC Moon, a retail business at 411 Main St. W. in Ashland. As alleged in the indictment, Morrison and Novak employed individuals who, at the defendants’ direction, sold controlled substance analogues intended for human consumption.

Federal law defines a “controlled substance analogue” as any substance having a chemical structure substantially similar to the chemical structure of a controlled substance in Schedule I or Schedule II, and either actually having, or represented or intended to have, an effect on the central nervous system substantially similar to or greater than the stimulant, depressant or hallucinogenic effect on the central nervous system of a controlled substance in Schedule I or Schedule II.

The indictment charges Morrison and Novak with conspiring to distribute controlled substance analogues; 28 counts of distributing controlled substance analogues; maintaining a place, specifically JC Moon, for the purpose of distributing controlled substances. They are also charged with conspiring to defraud the United States by skimming a significant amount of cash from JC Moon sales and not including this skimmed cash on their tax returns; filing false tax returns that failed to report about $575,752 in business receipts from JC Moon over a three-year period; and engaging in a $100,000 financial transaction in proceeds from the drug business.

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In addition to the 35 criminal charges, the indictment seeks the forfeiture of about $1.5 million, representing the total amount of net proceeds obtained as a result of the drug offenses, and property located in Ashland (the JC Moon business), Pompano Beach, Fla., and on Madeline Island, Wis.

On the 30 drug charges, Morrison and Novak face a maximum penalty of 20 years in federal prison on each count. The tax fraud conspiracy carries a maximum penalty of five years in prison, and the false tax return charges each carry a three-year maximum prison term. The money laundering charge carries a 10-year maximum prison term.

This indictment is the result of a lengthy, joint investigation conducted by the Drug Enforcement Administration; Internal Revenue Service Criminal Investigation; Wisconsin Department of Justice, Division of Criminal Investigation; Ashland County district attorney and sheriff’s offices, and Ashland Police Department.

Vaudreuil and Assistant U.S. Attorney David Reinhard are prosecuting the case.

Related Topics: ASHLANDCRIME
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