Lipseys now face 41 charges related to claims they distributed drugs, alcohol to minors

From left, Joseph Lipsey III, Shira Lipsey and Joseph Lipsey IV are shown in this composite photo.
From left, Joseph Lipsey III, Shira Lipsey and Joseph Lipsey IV are shown in this composite photo.
photo Joseph Lipsey III

Court documents are offering more details on the 41 charges faced by a former Chattanooga business owner and his family, who are accused of distributing alcohol, cocaine and other drugs to minors at multiple parties at their home in recent years.

Joseph Lipsey III, former owner and CEO of Chattanooga-based transportation companies Lipsey Logistics and Lipsey Trucking, faces 16 charges related to the incident. His wife, Shira Lipsey, and son, Joseph Lipsey IV, face 15 and 10 charges, respectively.

Two attorneys are listed as representation for the family, according to Pitkin County court records. They are Richard Cummins, of Aspen, Colorado, and Yale Galanter, of Miami.

Galanter is known for being the chief attorney representing O.J. Simpson in 2000; he and Cummins represented Charlie Sheen in 2009.

Both declined to comment.

The Lipseys' charges are as follows:

* Joseph Lipsey III: 11 counts of contributing to the delinquency of a minor, three counts of unlawful acts-alcoholic beverage, one count of controlled substance to a minor, and one count of possession of a controlled substance.

* Shira Lipsey: 11 counts of contributing to the delinquency of a minor, three counts of unlawful acts-alcoholic beverage, and one count of controlled substance to a minor.

* Joseph Lipsey IV: three counts of illegal possession or consumption of alcohol by 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.

The Lipseys were expected to be in court on Monday, but that date was bumped to April 15 to accommodate attorney schedules, according to the Aspen Daily News.

The Lipseys turned themselves in last month. All three were given a $100,000 bond and were released within an hour of booking after a "family associate" showed up with the money in cash, a court clerk said.

photo Shira Lipsey

The Lipseys are accused of hosting several parties in recent years. The main party in question was one alleged to have happened the night of Jan. 2, parts of which were caught on a minor's Snapchat videos.

At the party, witnesses told police the Lipseys were passing a plate of cocaine around "like they were passing around vitamins," court records show.

Witnesses also said about 25 high school students gathered at the Lipsey home in Aspen that night and were allowed to drink alcohol, including vodka and champagne, and do cocaine in the presence of both Lipsey parents.

Joseph Lipsey IV has separate charges, including two felonies, after he drove a 2017 Tesla X off a cliff in January, the Aspen Daily News reported. Two of the four other teen passengers were seriously injured.

One witness told police that, since the Tesla wreck, she hadn't heard of any parties taking place at the Lipsey house.

On March 15, Joseph Lipsey senior stepped down from his role as CEO, both Lipsey Logistics and Lipsey Trucking announced in a statement. The following week on March 18, the companies announced that Joseph Lipsey senior had relinquished his ownership shares.

"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," a spokesperson for the company said in a statement.

Johnny Jones, who helped co-found Lipsey in 2007 along with Lipsey, was appointed interim CEO of the companies. His position has since become permanent, and Joseph Lipsey senior transferred all of his company voting shares to Jones.

photo Joseph Lipsey IV

Despite having founded the company and being its CEO, Joseph Lipsey senior "was principally an investor in the company and has never been involved in its day-to-day operations," according to the company's statement.

Online logistics company Freightwaves estimates that Lipsey built a nearly $200 million-a-year transportation and logistics operation on the back of FEMA and state government contracts.

Since April 2003, Lipsey Water has delivered emergency water to specific sites throughout the country, according to a 2007 U.S. Department of Defense audit on the Hurricane Katrina relief efforts.

In 2005, the company got $81 million for services that included providing bottled water to areas hit by Katrina, Bloomberg Businessweek reported in October 2017. The company continues to receive government contracts, only now under a different name: Composite Analysis Group Inc., according to a federal contractor database.

It's not clear if Joseph Lipsey III is still connected to the water company. Company representative Kendal Helms did not return a request for comment.

Contact staff writer Rosana Hughes at rhughes@timesfreepress.com or 423-757-6327 with tips or story ideas. Follow her on Twitter @HughesRosana.

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