Article - June 11, 2008 - Mount Shasta Herald

Weed man convicted on 28 felony counts

By Jeff Knebel

Weed chiropractor Thomas Klassy, 55, was convicted by a federal jury Thursday of 28 felony counts of bankruptcy fraud and money laundering.

Klassy is facing a maximum penalty of 25 years in prison and $750,000 in fines. He is being held without bail in Sacramento County Jail until his sentencing date, August 14.

In addition to this case, Klassy is also involved in a pending Siskiyou County Superior Court case following his April 9 arrest on suspicion of illegally prescribing medical marijuana to patients. He was charged with practicing medicine without a certificate and advertising as a doctor without a valid certificate, according to Siskiyou County Prosecutor Christine Winte.

Winte said it is unclear as to when Klassy will be tried for the medical marijuana crimes. She said the case could be put on hold depending on the federal trial.

A federal grand jury convicted Klassy, after a three week trial, on charges of 28 felony counts, including making false declarations under penalty of perjury in a bankruptcy case, fraudulently concealing property in a bankruptcy case, and money laundering, according to a press release.

The case is the product of an extensive joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division.

The evidence introduced at trial showed the defendant committed perjury in his bankruptcy proceedings and thereby concealed substantial assets from the bankruptcy court, according to Assistant United States Attorneys Matthew Stegman and Russell Carlberg, who prosecuted the case.

Among the false statements he made under oath were that he did not own an airplane, a pickup truck, a one-third interest in a 220-acre ranch, $205,000 he received for the sale of his chiropractic business, and two shell corporations named Rose Ventures, Inc. and Aromor, Inc., which he used to hide much of his assets, the press release states.

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