State dismisses civil action under RICO Act

On March 28, 2024, the State dismissed a civil action under the Georgia Racketeer Influenced and Corrupt Organizations (RICO) Act against local defendants Michelle Meadows, Russell Bryan Meadows a/k/a Rusty Meadows, Ashlin Meadows, and their related defendants.

According to Cook County Superior Court records, the State of Georgia, represented by Chase Studstill, District Attorney for the Alapaha Judicial Circuit, “pursuant to O.C.G.A. 9-11-41(a)(1)(A) hereby voluntarily dismisses its complaint against” the defendants “with prejudice.” The term “with prejudice” means it has been permanently dismissed. No matter the circumstances, if a case is dismissed with prejudice, it cannot be brought back to court.

On Jan. 31, 2024, Chief Alapaha Judicial Circuit Superior Court Judge Clayton Tomlinson ordered a consent judgment in the civil action filed by the D.A. against the defendants. 

In the civil action, filed Jan. 12, 2024, in Superior Court, the State sought confiscation of U.S. currency, inventory, equipment, and personal property seized by law enforcement after serving a search warrant on Dec. 14, 2023, at 11417 Highway 37, Adel. 

The complaint alleged that the currency, property, and vehicles were received by the defendants “through a pattern of racketeering activity.”

The consent judgment stated that to settle the RICO complaint, the defendants agreed to forfeit the sum of $414,841.31 to the State. 

The forfeited amount was to be paid to the State from the balances of various bank accounts and from cash seized at the Defendants’ residence, $31,200.

According to the consent judgment, the remaining balance of $350,000 was to be paid to the State within 60 days of the entry of the consent order. The forfeited amount was to be made payable to, and distributed to, the District Attorney’s Office. The forfeited amount could not be used for any tax liability or potential tax liability. Once the entire settlement was funded, all remaining funds were to be released, and the holds on those accounts terminated.

The order called for the proceedings of this case including discovery to be stayed for 60 days from the entry of the order: “Should the Defendants fail to pay in full as directed, the stay shall be lifted, and the case will resume.”

The order further stated that all personal property seized by law enforcement, after satisfaction of the forfeiture, “other than property maintained for evidence,” was to be returned to the defendants within 60 days of entry of the consent judgment.

Upon payment in full, the State released its claim on all items listed in the judgment’s Exhibit A. “The Parties understand that other agencies may hold some of the items in Exhibit A as evidence,” the order continued. “Plaintiff specifically agrees that the vehicles may be returned upon payment in full.”

“Within 15 business days of receipt of the Forfeited Assets by Plaintiff, the Plaintiff shall submit a dismissal with prejudice as to the Defendants herein,” according to the order. “All monies paid pursuant to this Judgment are made in compromise of a disputed claim.

“Nothing herein releases any other party or person in this litigation.”

Consenting to the order were D.A. Studstill; Special Assistant D.A. K. David Cooke Jr.; attorney John D. Holt, representing Rusty Meadows; attorney Sam Dennis, representing Michelle Meadows; and attorney C. Brian Jarrard, representing Ashlin Meadows.

The items to be released back to the defendants under Exhibit A included desktop and laptop computers, electronic devices, “authentic merchandise” and “authentic items,” a cargo trailer, vehicles, and the balance of any financial accounts not specifically set forth as forfeited.

According to the civil action, “The RICO Enterprise has as its purpose the trafficking of counterfeit merchandise. … In furtherance of the RICO scheme, the Defendants utilized electronic transmission of funds derived from their illegal activity and transferred it through interstate commerce.”

The complaint further alleged the defendants “engaged in and committed at least two or more acts of racketeering activity, including but not limited to, wire and mail fraud and trafficking in counterfeit goods. …

“(The defendants) operated a RICO Enterprise whereby they purchased counterfeit merchandise, offered it for sale, and did sell such goods to unsuspecting customers.”

According to the complaint, the counterfeit merchandise included such items as “handbags, wallets, belts, scarves, and luggage purportedly being high-end brands by Louis Vuitton, Chanel, Gucci, and others.”

According to the complaint, “in furtherance of the RICO scheme, the Defendants used various internet platforms such as Facebook Marketplace to market and sell the counterfeit merchandise.”

The complaint adds, “In furtherance of the RICO scheme, the Defendants utilized various bank accounts in which to funnel the proceeds derived from their illegal activity.

“(The defendants) unlawfully obtained money, and with such money acquired and maintained, both directly and indirectly, interests in and control of real property and personal property including, but not limited to, U.S. currency, business property,” and other properties.

The complaint alleged that the defendants committed multiple acts related to trafficking in counterfeit goods in violation of 18 U.S.C. 2320 (federal law) and racketeering activity under O.C.G.A. 16-14-3(5)(c) (state law).

Multiple sources have told the Adel News that the Federal Bureau of Investigation and the Georgia Bureau of Investigation, with assistance from local law enforcement, executed search warrants on Dec. 14, 2023, at Cook County locations including Michelle’s Formal Wear of Adel, owned by Mrs. Meadows, and the Meadows residence in connection with the fraudulent products case investigation.

The business was temporarily closed while agents conducted their search. Law enforcement confiscated evidence – money, inventory, equipment, and personal property, as cited in the civil action – from the 11417 Highway 37, Adel, address in support of the investigation. 

Through research of the State’s civil action, the Adel News obtained an evidence inventory of the property seized from the home. The list of property that could be returned to the defendants under the consent judgment did not include several items seized as evidence. Remaining items in the evidence inventory range from purses, wallets, and handbags to seven Rolex watches (found in the master bedroom closet). 

On Feb. 5, 2024, subject to the civil proceeding, the State filed forfeiture liens in Superior Court against real property located at Forte Road; Highway 37, Adel; 11417 Highway 37, Adel (the Meadows residence); and four addresses on South Burwell Avenue, Adel (including the locations of Michelle’s Formal Wear and Raising Royals Boutique).

No arrests or indictments have been announced for any criminal proceedings. 

The Adel News’ editorial policy ordinarily is to not identify private individuals accused of alleged criminal activities until formal charges have been filed. However, the State officially identified defendants in a formal court filing of the RICO civil action, which is now dismissed.

The Adel News has reached out to the D.A.’s Office for further comment.