Little Rock – Jane W. Duke, United States Attorney for the Eastern District of Arkansas, announced that post-conviction relief was denied to convicted murderers Chevie Kehoe and Danny Lee. The lengthy orders denying relief were issued today by United States District Judge G. Thomas Eisele. Copies of both orders can be accessed through the United States Attorney’s Office website at http://www.usdoj.gov/usao/are/news_releases/2008/2008index.html.

Kehoe and Lee were convicted by a federal jury on May 4, 1999 on multiple counts, including racketeering and related violent offenses. Specifically, Kehoe and Lee were convicted of murdering William Mueller; his wife, Nancy Mueller; and Nancy’s eight-year-old daughter, Sarah Powell, all in aid of racketeering. As a result of their convictions, Kehoe was sentenced to life imprisonment and the death penalty was imposed against Lee. The convictions of Kehoe and Lee were subsequently affirmed by the Eighth Circuit Court of Appeals in 2002 and 2004, respectively. Both then filed habeas corpus petitions in United States District Court for the Eastern District of Arkansas pursuant to Title 28, United States Code, § 2255.

In denying relief, Judge Eisele rejected numerous arguments raised in the defendants’ briefs. Among the rejected arguments as to Kehoe were ineffective assistance of counsel; denial of the Sixth Amendment right of confrontation; prejudice by denial of severance; and cumulative error. In regards to Lee, the court also rejected claims regarding error in the application of the death penalty and newly discovered evidence.

At trial, the United States established that Kehoe and Lee formed a racketeering enterprise known as the Aryan People’s Republic (“APR”). The APR, which was led by Kehoe, was established to incite a revolution so that a portion of the northwestern United States could be severed to create an “Aryan homeland.” Kehoe envisioned that his group would assume control in the aftermath of chaos the APR would create through the simultaneous killings of large numbers of judges and law enforcement officials.

Under Kehoe’s leadership, the APR raised money for revolutionary purposes by engaging in criminal conduct. This criminal conduct included the robbery and killing of the Mueller family, who lived near Witts Spring, Arkansas. The Muellers were targeted because Kehoe knew William Mueller maintained large quantities of weapons and significant amounts of gold and cash. Kehoe was also convicted for his participation in two separate shoot-outs with Ohio law enforcement officers. A passing motorist was injured during one of those shoot-outs when a bullet struck him in the arm as he drove by the exchange of gunfire.

Others convicted in connection with this investigation included Kirby Kehoe, Chevie’s father. Kirby Kehoe entered a plea of guilty to conspiring to engage in racketeering and was sentenced to 56 months imprisonment. Cheyne Kehoe, Chevie’s brother, was convicted and ultimately received a thirteen-year Ohio state sentence for his involvement in one of the Ohio shooting incidents.

Duke stated, “It is extremely difficult to put in perspective the magnitude and importance of this investigation and prosecution. The trial lasted two and a half months, during which time the United States presented over 150 witnesses and thousands of documentary exhibits. Our office worked with dozens of law enforcement agencies and prosecutors across the county in the course of this case. We are especially appreciative of the assistance provided by David Gibbons, Prosecuting Attorney for the 5 th Judicial District, and the Pope County Sheriff’s Office.” She added, “Through these coordinated efforts, the jury was presented with a complete picture of the evil behind Kehoe and Lee’s criminal activity. We truly believe that justice was served in this case.”

This case was investigated by the Pope County Sheriff’s Office, with Deputy Sheriff Aaron Duvall serving as the lead investigator; the Bureau of Alcohol, Tobacco, Firearms and Explosives, with Special Agent Glen Jordan as the lead investigator; and the Federal Bureau of Investigation, with the lead investigator being Special Agent James Schanandore. Gratitude is expressed to the many other federal, state and local agencies that assisted in this matter. The case was prosecuted by Assistant United States Attorney Dan Stripling and Department of Justice Trial Attorney Robert De La Cruz. The appeals and habeas petitions were defended by Capital Crimes Unit Attorney Gwenn X. Kinsey and AUSA Stripling.