Phieu Nguyen denies setting up grow houses for pot
By Dolly A. Butz, Journal staff writer | Posted: Thursday, August 28, 2008
SIOUX CITY -- When his gas station and liquor store failed to produce a profit, Phieu Nguyen entered into a marijuana-growing operation in Sioux City with two Canadians, according to his testimony Wednesday in U.S. District Court.
Prosecutors say Phieu oversaw the operation and pocketed $1 million from it, which he used to purchase a Mini Cooper, Toyota Camry and a motor boat.
Phieu, 48, of Dakota Dunes, who is on trial along with Va Thi Nguyen, 42, Sioux City, was the last witness to take the stand before the defense rested its case in a seven-day trial.
He pleaded guilty Aug. 8 to a single count of conspiracy to manufacture and distribute 1,000 or more marijuana plants. He pleaded not guilty to continuing criminal enterprise plus 14 counts of money laundering and 10 counts of structuring financial transactions. The 10 charges of structuring financial transactions have since been dropped.
Va has pleaded not guilty to conspiracy to manufacture and distribute more than 1,000 marijuana plants.
In reply to a series of questions, Phieu described how the marijuana operation sprouted and grew. He said that in 2005 he began having discussions about a marijuana-growing business. He said the discussions involved two former classmates whom he met on a return trip to Vietnam. He said he lost contact with Loi Nguyen, who also goes by "Van," and Met Nguyen, who also goes by the name "Asi," when they immigrated to Canada and he to the United States in the 1980s.
A week after an initial Sioux City meeting with the two men, Phieu said, he received a call from David Nguyen, who asked if Loi and Met had arrived. Phieu asked David how he knew that the men were in Sioux City. Phieu said David replied, "I know everything."
Loi and Met set up the first two grow houses on 13th and Court streets, according to Phieu. David, who had moved to Sioux City from Washington state, Phieu said, told him that he would give him a bigger cut of the operation than Loi and Met. He said David brought Khoi Van Ha, 48, of South Sioux City, from Washington to set up electricity at the rental properties. He said David started a grow house at West Sixth Street after he bought the property from Phieu.
Phieu said he identified available properties, but he said he did not set up the houses to grow marijuana.
"David decided to sell marijuana," he said. "All the products were handled by David. He decided."
Authorities say at least 4,100 marijuana plants were grown in at least seven metro-area houses from November 2003 until September 2007.
Phieu said all of the men involved in the operation knew about the seven grow houses. He said he didn't know if Va, David's sister, knew that she was involved in an illegal drug network. Va testified Monday that she didn't know she was watching a house filled with marijuana. She said she thought she was watering medicinal plants for a hospital.
"Bao (Nguyen) and Va were at the house," Phieu said. "Va came and went there, and Bao was responsible for it."
During the trial, Assistant U.S. Attorney Robert Knief showed the jury checks from Nguyen Liquors, formerly Ivy's Liquor, 301 S. Floyd Blvd., a business owned by Phieu, that were written to Kacy Tran for marijuana growing equipment. He also displayed receipts from transactions Nguyen made at Security National Bank offices around Sioux City. On Aug. 2, 2004, Nguyen made three separate deposits totalling more than $18,000, Knief said, to avoid a reporting requirement.
Nguyen said he deposited the money accumulated from Nguyen Liquors because he didn't want it lying around the store.
During cross-examination by Knief on Wednesday about how he was able to pay off $400,000 for Nguyen Liquors in one year, Phieu said he got the money from family, investments in Vietnam and the sale of properties in Sioux City.
"How much did you have left over?," Knief asked.
"My daughter told me I had about $10,000 or more in the store, and the police took all of that," he said.
Testimony concluded Wednesday, sending the case to the jury for deliberation.
Prosecutors say Phieu oversaw the operation and pocketed $1 million from it, which he used to purchase a Mini Cooper, Toyota Camry and a motor boat.
Phieu, 48, of Dakota Dunes, who is on trial along with Va Thi Nguyen, 42, Sioux City, was the last witness to take the stand before the defense rested its case in a seven-day trial.
He pleaded guilty Aug. 8 to a single count of conspiracy to manufacture and distribute 1,000 or more marijuana plants. He pleaded not guilty to continuing criminal enterprise plus 14 counts of money laundering and 10 counts of structuring financial transactions. The 10 charges of structuring financial transactions have since been dropped.
Va has pleaded not guilty to conspiracy to manufacture and distribute more than 1,000 marijuana plants.
In reply to a series of questions, Phieu described how the marijuana operation sprouted and grew. He said that in 2005 he began having discussions about a marijuana-growing business. He said the discussions involved two former classmates whom he met on a return trip to Vietnam. He said he lost contact with Loi Nguyen, who also goes by "Van," and Met Nguyen, who also goes by the name "Asi," when they immigrated to Canada and he to the United States in the 1980s.
A week after an initial Sioux City meeting with the two men, Phieu said, he received a call from David Nguyen, who asked if Loi and Met had arrived. Phieu asked David how he knew that the men were in Sioux City. Phieu said David replied, "I know everything."
Loi and Met set up the first two grow houses on 13th and Court streets, according to Phieu. David, who had moved to Sioux City from Washington state, Phieu said, told him that he would give him a bigger cut of the operation than Loi and Met. He said David brought Khoi Van Ha, 48, of South Sioux City, from Washington to set up electricity at the rental properties. He said David started a grow house at West Sixth Street after he bought the property from Phieu.
Phieu said he identified available properties, but he said he did not set up the houses to grow marijuana.
"David decided to sell marijuana," he said. "All the products were handled by David. He decided."
Authorities say at least 4,100 marijuana plants were grown in at least seven metro-area houses from November 2003 until September 2007.
Phieu said all of the men involved in the operation knew about the seven grow houses. He said he didn't know if Va, David's sister, knew that she was involved in an illegal drug network. Va testified Monday that she didn't know she was watching a house filled with marijuana. She said she thought she was watering medicinal plants for a hospital.
"Bao (Nguyen) and Va were at the house," Phieu said. "Va came and went there, and Bao was responsible for it."
During the trial, Assistant U.S. Attorney Robert Knief showed the jury checks from Nguyen Liquors, formerly Ivy's Liquor, 301 S. Floyd Blvd., a business owned by Phieu, that were written to Kacy Tran for marijuana growing equipment. He also displayed receipts from transactions Nguyen made at Security National Bank offices around Sioux City. On Aug. 2, 2004, Nguyen made three separate deposits totalling more than $18,000, Knief said, to avoid a reporting requirement.
Nguyen said he deposited the money accumulated from Nguyen Liquors because he didn't want it lying around the store.
During cross-examination by Knief on Wednesday about how he was able to pay off $400,000 for Nguyen Liquors in one year, Phieu said he got the money from family, investments in Vietnam and the sale of properties in Sioux City.
"How much did you have left over?," Knief asked.
"My daughter told me I had about $10,000 or more in the store, and the police took all of that," he said.
Testimony concluded Wednesday, sending the case to the jury for deliberation.
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Legalize wrote on Aug 29, 2008 9:04 AM:
jim orson wrote on Aug 28, 2008 10:34 AM:
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