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Gang used winning Pick 4 lottery tickets to launder drug money

Insider BuzzInsider Buzz: Gang used winning Pick 4 lottery tickets to launder drug money

Federal authorities say they have broken up a cocaine-trafficking ring that laundered more than $270 million over 15 years in an operation that began in Michigan and branched out across the country.

The organization, known on the streets as the Black Mafia Family, had ties to the rap music industry, and its two leaders have appeared in rap videos, said Robert L. Corso, special agent in charge of the Drug Enforcement Agency in Detroit.

"They were in fact just another group of thugs who brought fear, intimidation and violence to the streets of Detroit," he said.

Local and federal authorities in Michigan, California, Florida, Kentucky, Texas, Georgia, Arkansas and Mississippi arrested 23 people Friday, and two suspects remained at large, authorities said.

They face charges that include conspiracy, drug possession with intent to deliver and money laundering, according to a federal grand jury indictment unsealed Friday in Detroit.

U.S. Attorney Stephen J. Murphy said local and federal authorities have been after the ring since 2000 and recently were able to pull several old cases together from many different states.

Authorities said the gang dealt in "multi-kilogram" quantities of cocaine. Since 1999, authorities seized cocaine from the group in Polk County, Texas; Flagstaff, Ariz.; Kansas City, Mo.; Collin County, Texas; Crawford County, Ark.; Florissant, Mo.; St. Louis; and Woodland Hills, Calif.

The gang bought more than $1 million worth of winning lottery tickets at inflated prices "in an effort to launder the cash through legitimate means," Murphy said. They would then use the winnings to purchase homes and vehicles, hiding the fact that the true source of the money was drug sales.

Sandi Carter, assistant special agent in the Detroit office of the Internal Revenue Service, said the gang was able to find the winning Daily 4 lottery tickets through contacts in the Detroit area.

According to the indictment, the gang was led by Terry L. Flenory, 35, of Los Angeles, and his brother, Demetrius E. Flenory, 45, of Atlanta.

They started the ring in the Detroit area in the mid-1990s, and it spread to other states as it became more successful, authorities said. Members would use vehicles with hidden compartments to transport the cash from cocaine sales, authorities said.

The gang also bought and leased luxury cars and real estate through false names to conceal the source of their money, the indictment said. Corso alleged that the gang leaders used their ties to rap musicians to find luxury car brokers.

Authorities said they will seek forfeiture of 10 homes, 18 vehicles and $1.2 million that already have been confiscated. The homes are located in the Detroit and Los Angeles areas.

Murphy said local and federal authorities had touched the edges of the organization for years but had not tied their work together until recently. Investigators were able to link old cases through telephones used by the Flenory brothers, he said.

Also indicted were Neil J. Bahura, 36, of West Bloomfield; Arnold E. Boyd, 25, of Romulus; Roy C. Braddy, 32, of Canton; Cleveland E. Cato, 37, of Atlanta; Alvin Demmings II, 35, of Ecorse; Brian R. Garrett, 37, of Detroit; Jabari Hayes of Atlanta; Robert S. James of Detroit; Benjamin A. Johnson, 35, of Romulus; Chauncey M. Johnson of Detroit; Stanley Lackey Jr., 33, of Ecorse; Bruce E. Martin of Detroit; Charles T. Parson, 30, of Detroit; Derrick K. Peguese, 36, of Detroit; Rennel M. Pitts, 36, of Detroit; Karream H. Sheard, 30, of Atlanta; Benjamin H. Smith, 36, of Ecorse; Calvin L. Sparks, 44, of Ecorse; Christopher D. Triplett, 33, of Detroit; Tonesa L. Welch, 44, of Los Angeles; Gregory R. West, 52, of Fort Lauderdale, Fla.; Harold S. Wilcox, 38, of Southfield; and Kim V. Williams, 46, of Detroit.

AP

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22 comments. Last comment 11 years ago by dvdiva.
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Avatar
Coastal Georgia
United States
Member #2653
October 30, 2003
1866 Posts
Offline
Posted: October 28, 2005, 10:20 pm - IP Logged

Bash

Very Smart !!

    BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
    Magnolia, Delaware
    United States
    Member #18795
    July 20, 2005
    789 Posts
    Offline
    Posted: October 28, 2005, 10:28 pm - IP Logged

    But Not "Smart Enough!" Stooges

    Keep dreaming the impossible dream, it just may come true! Thumbs Up

      jeffrey's avatar - moon
      Hamilton, OH
      United States
      Member #4162
      March 27, 2004
      277 Posts
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      Posted: October 28, 2005, 10:43 pm - IP Logged

      throw them in a chipper shredder and be done with it

       

        jeffrey's avatar - moon
        Hamilton, OH
        United States
        Member #4162
        March 27, 2004
        277 Posts
        Offline
        Posted: October 28, 2005, 10:44 pm - IP Logged

        feet first and slowly

         

          LOTTOMIKE's avatar - cash money.jpg
          Tennessee
          United States
          Member #7853
          October 15, 2004
          11338 Posts
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          Posted: October 29, 2005, 1:52 am - IP Logged

          not that many people win straight on a pick 4 ticket everyday........it must've been hard finding winners to buy tickets from...

            Avatar
            Sparta, NJ
            United States
            Member #18331
            July 9, 2005
            1977 Posts
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            Posted: October 29, 2005, 8:36 am - IP Logged

            No trial necessary, already convicted by the biased reader - same as Libby.  How do we know, because the "press" says so.

            Cheers

            |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

            I only trust myself - and that's a questionable choice

              fja's avatar - gnome1

              United States
              Member #91
              January 19, 2002
              11932 Posts
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              Posted: October 29, 2005, 9:44 am - IP Logged

              guilty until proven guilty!

               

               


                United States
                Member #379
                June 5, 2002
                11296 Posts
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                Posted: October 29, 2005, 11:10 am - IP Logged

                guilty until proven guilty!

                 

                 

                I thought our system of justice was INNOCENT until proven guilty.

                  fja's avatar - gnome1

                  United States
                  Member #91
                  January 19, 2002
                  11932 Posts
                  Offline
                  Posted: October 30, 2005, 11:35 am - IP Logged

                  guilty until proven guilty!

                   

                   

                  I thought our system of justice was INNOCENT until proven guilty.

                  Depends on your lawyer!

                    Todd's avatar - Cylon 2.gif
                    Chief Bottle Washer
                    New Jersey
                    United States
                    Member #1
                    May 31, 2000
                    23269 Posts
                    Online
                    Posted: October 30, 2005, 11:53 am - IP Logged

                    guilty until proven guilty!

                     

                     

                    I thought our system of justice was INNOCENT until proven guilty.

                    Depends on your lawyer!

                    Good one! LOL

                     

                    Check the State Lottery Report Card
                    What grade did your lottery earn?

                     

                    Sign the Petition for True Lottery Drawings
                    Help eliminate computerized drawings!

                      Jorli D's avatar - nw saucyelf2.jpg
                      Michigan
                      United States
                      Member #2448
                      October 4, 2003
                      25904 Posts
                      Offline
                      Posted: October 30, 2005, 7:18 pm - IP Logged

                      guilty until proven guilty!

                       

                       

                      I thought our system of justice was INNOCENT until proven guilty.

                      Depends on your lawyer!

                      Good one! LOL

                      Very very good one!

                        Raven62's avatar - binary
                        New Jersey
                        United States
                        Member #17843
                        June 28, 2005
                        49767 Posts
                        Offline
                        Posted: October 30, 2005, 7:43 pm - IP Logged

                        guilty until proven guilty!

                         

                         

                        I thought our system of justice was INNOCENT until proven guilty.

                        Sometimes they hang the Jury and let the Criminal go.

                         

                          fast eddie's avatar - lasvegas2
                          Chicago,IL.
                          United States
                          Member #2902
                          November 29, 2003
                          1426 Posts
                          Offline
                          Posted: October 30, 2005, 7:49 pm - IP Logged

                          If a pick four straight pays $5,000. What do you think was the inflated price they were giving the winners for their tickets?

                          "Money won is twice as sweet as money earned"

                            LOTTOMIKE's avatar - cash money.jpg
                            Tennessee
                            United States
                            Member #7853
                            October 15, 2004
                            11338 Posts
                            Offline
                            Posted: October 31, 2005, 6:48 am - IP Logged

                            i'd say 8 or 9 thousand......