Federal Defense of Ephedrine Pill Company
N/AOUTCOME: Not Guilty
This remarkable case was tried in Federal Court in Des Moines, Iowa for a period of 7 weeks. Dean Stowers and attorney Raymond Rosenberg defended the principal target in connection with the sale of lar ... ge amounts of ephedrine through a wholly lawful business to persons using the ephedrine to manufacture methamphetamine. Prior to trial, the government had seized several million dollars and was attempting to forfeit this money and virtually everything the defendants owned under the federal forfeiture laws. The government believed that defendants knew or should have known that the customers were making methamphetamine with their products. The defendants took the position that their conduct fell within what was known as the "ephedrine loophole" whereby the sale of the ephedrine pills in their FDA-approved form was exempted from various regulatory and statutory provisions, meaning that there were no restrictions on their sales of ephedrine. The defense focused upon the efforts the defendants had made to self-regulate, the efforts the methamphetamine manufacturers had undertaken to conceal their intended use of the ephedrine, and the fact that the government's investigation started with the Drug Enforcement Administration ascertaining the assets owned by the defendants, thus showing the motive of the investigation. The defendants faced essentially a life term if convicted, however, after the extended and lengthy trial, the jury found all defendants not guilty of all 17 counts after less than a day of deliberations. This case has been regarded as the most complex and lengthy federal trial in Iowa history.