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Joseph Lipsey III still facing cocaine distribution charge

The Lipsey family and its legal team had something to celebrate last month when Deputy District Attorney Don Nottingham announced in court his intention to file paperwork dismissing the most serious charge against both parents.

And on July 22, Nottingham did file a motion to dismiss the felony charge of distribution of cocaine to a minor against Shira Lipsey, 44. But Joseph Lipsey III, 56, still faces that charge, which carries a minimum prison sentence of eight years.

In the July 15 court appearance, Nottingham did not feel that there was enough evidence to support the distribution charge. But as more evidence has come to light in the ongoing investigation, he is no longer so sure.

“It’s a mess,” he said of the case that includes 45 endorsed witnesses, according to court documents.

Those witnesses include staff from the Pitkin County Sheriff’s Office, Aspen Police Department, the 9th Judicial District Attorney’s Office, juveniles and parents.

“I expect to have a decision before their next court date,” Nottingham said of the Lipseys’ upcoming Aug. 16 hearing — which the Lipseys will be attending via telephone.

According to his personal Facebook page, Joseph Lipsey III moved to Puerto Rico in June.

“Life is a beach! Come visit,” he wrote on June 19.

“Did you really? Really really? No Colorado?” Scott Rosenzweig queried on Lipsey’s post.

“Just most of the year,” Lipsey replied.

Yale Galanter, one of the Lipseys’ attorneys, doubted the seriousness of that claim.

“No,” Galanter said about the rumored move, though he added that keeping tabs on his clients’ personal lives is not among his professional pursuits. “That is not my understanding. He owns a disaster relief company, so he spends time in Puerto Rico because they had a natural disaster.”

Joseph Lipsey III was CEO of Lipsey Logistics Worldwide and its sister company Lipsey Water. In September 2017 — the same month Hurricane Maria devastated Puerto Rico — then-Lipsey Mountain Spring Water was awarded a distribution contract from the Federal Emergency Management Agency. An Oct. 17, 2017, report from Bloomberg estimated that Lipsey had garnered at least $215 million in contracted FEMA relief services.

However, according to a press release published March 18 by Lipsey Logistics, Joseph Lipsey III relinquished all control from all of his business enterprises — including Lipsey Trucking and Lipsey Transport — after he, his wife and 19-year-old son Joseph Lipsey IV were formally charged one week earlier.

“Joseph Lipsey III, the company’s former Chief Executive Officer, has relinquished his management roles and ownership shares in the company in light of personal allegations against him and members of his family. While the allegations relate to personal matters and have nothing to do with our business, the company takes them seriously and does not wish for them to distract from our operations. Mr. Lipsey has transferred all of his voting shares in the company to Mr. [Johnny] Jones,” the statement reads.

“In the past, Mr. Lipsey was principally an investor in the company and has never been involved in its day-to-day operations. Regardless, we would like to assure the public that his exit from the business is immediate and permanent, and that he will have no ownership of or control over the companies going forward,” the statement adds.

The felony charges that Joseph Lipsey III still faces include: distribution of cocaine to a minor, 11 counts of contributing to the delinquency of a minor and one count of possession of a controlled substance. Additionally, he faces three misdemeanor counts of serving alcohol to a minor.

Shira Lipsey’s charges match those of her husband, except for the distribution charge which has been dismissed.

Joseph Lipsey IV, who is due back in court Aug. 5, faces three counts of illegal possession or consumption of alcohol by an underage person, two counts of possession of a controlled substance, one count of distribution of a controlled substance, one count of possession with intent to manufacture or distribute a controlled substance, one count of contributing to the delinquency of a minor, one count of possession of a controlled substance and one count of furnishing cigarettes, tobacco or nicotine products to a minor.

Galanter remains confident for the elder Joseph Lipsey.

“These things, it is not unusual for one defendant to be dismissed before another or to conclude one investigation and still have another ongoing because of witness availability … just all kinds of stuff,” he said.

The Lipseys allegedly hosted parties that included cocaine and alcohol provided freely to high school students, according to authorities.

David Bench