Costa appears in federal court, but no trial date set
By Kate Carter
Saratogan Michael Costa, accused of heading up a national drug-smuggling ring, appeared in federal court April 30 while his lawyer's representative, the prosecuting attorney and judge determined a preliminary schedule for his trial.
Costa, who has been in custody at the Santa Clara County Main Jail on other charges since before he was federally charged April 10, was dressed in red prisoner's garb and wore ankle shackles, indications of his status as a high-risk jail inmate.
Santa Clara County and Internal Revenue Service investigators suspect Costa of being the mastermind behind a drug ring they have been investigating for 18 months. They allege that the network gleaned $8 million between 2000 and 2001 by transporting marijuana grown in California and Texas to the Boston area for sale. They also say Costa solicited young accomplices to transport the drugs and money, and, in at least one case, physically punished those who didn't perform to standard.
Costa's attorney, Phil Pennypacker, did not return phone calls before this newspaper's deadline last week.
County and federal investigators have accused 14 individuals of operating with Costa. Members of the group were indicted April 23 on a total of 15 federal criminal counts, including drug trafficking, kidnapping and money laundering.
At the April 30 hearing, Costa sat with several other co-defendants being held at the jail, the others dressed in orange and wearing handcuffs, while Costa's wife, Jessica, and father, Edward, also Saratogans, joined other defendants released on bail over the past several weeks. One of the suspects was not present at the April 30 hearing, as he is already being held in state prison, and three of the suspects remain at large.
Costa and the other nine defendants arraigned in recent weeks have pleaded not guilty in a pro forma procedure leading up to the indictment. Costa, like another defendant, is being held with no provision for bail because of concerns he may flee--he has four prior convictions for burglary, receiving stolen property and a custody escape attempt.
In addition, prosecutor Assistant District Attorney Jeff Nedrow told the court at Costa's April 25 bail hearing that he is concerned that Costa has been threatening witnesses, citing statements from two separate sources and pointing to Costa's previous behavior.
Costa's wife, father and three other suspected associates are out on bail, while three others remain in custody, having not met their set bail amounts.
Costa either owns or is linked to locations in Saratoga-including the infamous stilt house at 12623 Quito Road, Campbell, San Jose and Calaveras County that investigators say were or would be used to grow the illegal drug or to conduct related illegal activities.
Saratoga officials hope to receive permission within the month from the Santa Clara County Superior Court to enter the site of the Quito Road house, take the structure down and fill in the excavated hole beneath it. Bill Parkin, with the city's assistant city attorney firm Wittwer and Parkin, said the city has already approved a contractor to do the work.
Investigators also suspect Costa, co-owner and vice president of Santa Clara-based Powerspec Electronics, of using the business as one means of laundering the cash transported back from Boston. They also suspect he funneled money into real estate in the name of his father, as well as through a San Jose gas station operated by another of the defendants.
The investigation is ongoing.
Nedrow, a representative of Costa's attorney, and the other attorneys agreed with U.S. Judge Jeremy Fogel, who will be presiding over the trial, to meet again June 4. Because of the state's speedy trial law, the case would have come up for trial July 2, but Fogel allowed the lawyers another 35 days to pull together and review the reams of documents.
Saratoga, California Since 1955
