Gang used winning Pick 4 lottery tickets to launder drug money

Oct 28, 2005, 10:02 pm (22 comments)

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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

Comments

DoubleDown

Bash

Very Smart !!

BaristaExpress's avatarBaristaExpress

But Not "Smart Enough!" Stooges

jeffrey's avatarjeffrey

throw them in a chipper shredder and be done with it

 

jeffrey's avatarjeffrey

feet first and slowly

 

LOTTOMIKE's avatarLOTTOMIKE

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

Chewie

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

fja's avatarfja

guilty until proven guilty!

 

 

CASH Only

guilty until proven guilty!

 

 

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

fja's avatarfja

guilty until proven guilty!

 

 

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

Depends on your lawyer!

Todd's avatarTodd

guilty until proven guilty!

 

 

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

Depends on your lawyer!

Good one! LOL

Jorli D's avatarJorli D

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 avatarRaven62

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 avatarfast eddie

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

LOTTOMIKE's avatarLOTTOMIKE

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

libra926

Lurking

"FJA"......You write like "CHEWIE".....Totally original....great sense of humor....w/a straight and sharp edge.......LOLOLOOOLLLL

On the serious side of this topic:....The "Brilliant Antics" of these thugs is going to make Winning millions of dollars under the Lottery umbrella very unpleasant, because even though the Lottery Board is already examining the winner with a fine tooth comb, they are going to turn into the FBI. By that I mean, the "Background Check" will start to become soooooo intensssse that it will take 4 to 6 weeks or more to recieve your winnings. That's scary....An honest person wins the money, but will be subjected to so much scruitiny before recieving one dime of it, that you become totally disgusted with the process. It won't stop me from playing, but I don't like the smell of what is to come.

CASH Only

Lurking

"FJA"......You write like "CHEWIE".....Totally original....great sense of humor....w/a straight and sharp edge.......LOLOLOOOLLLL

On the serious side of this topic:....The "Brilliant Antics" of these thugs is going to make Winning millions of dollars under the Lottery umbrella very unpleasant, because even though the Lottery Board is already examining the winner with a fine tooth comb, they are going to turn into the FBI. By that I mean, the "Background Check" will start to become soooooo intensssse that it will take 4 to 6 weeks or more to recieve your winnings. That's scary....An honest person wins the money, but will be subjected to so much scruitiny before recieving one dime of it, that you become totally disgusted with the process. It won't stop me from playing, but I don't like the smell of what is to come.

As long as I can collect in lump sum, I wouldn't mind waiting weeks to collect my winnings.

libra926

HAPPY TUESDAY..........NOVEMBER.....1ST

HEY CASH & CARRY............

I have an impatient heart. I feel that it's bad enough that the Board puts us thru the basic waiting period to verify the Winning Ticket, but I'd hate to think we'd have to wait several weeks thru an unnecessary "background Check"..and, on top of all that, we don't even get half of what we win.

Steve West will not recieve 50% of that $340,000,000.00....the Fed & State taxes will, together eat up more than 50% of the original figure.....

But, I agree w/you that it's nice to have the option of LUMP SUM VS ANNUITY.

Mail For You

Chewie

50% of $340M is a gazillion percent more then I have right now. I would complain, groan, cry, and use every fowl word I know - all the while signing the forms at the bank.

libra926

CHEWIE.......again I truely concurr w/you 100%............which is also not half as much as you should recieve when you finally win.  But, like you.....LOLOLOLOLOL....I will pout, curse, call names, grit my teeth, and Thank God Almighty, as well as my Savior, for the blessing of such a magnificant sum, whatever the millions are........................Lurking

CASH Only

HAPPY TUESDAY..........NOVEMBER.....1ST

HEY CASH & CARRY............

I have an impatient heart. I feel that it's bad enough that the Board puts us thru the basic waiting period to verify the Winning Ticket, but I'd hate to think we'd have to wait several weeks thru an unnecessary "background Check"..and, on top of all that, we don't even get half of what we win.

Steve West will not recieve 50% of that $340,000,000.00....the Fed & State taxes will, together eat up more than 50% of the original figure.....

But, I agree w/you that it's nice to have the option of LUMP SUM VS ANNUITY.

Mail For You

libra:

Remember that some scratch games in NY (where I live) are still annuity-only. So is MA Mega$.uck$.

libra926

HAPPY WEDENSDAY..........CASH......NOVEMBER 2ND......

"libra:"

"Remember that some scratch games in NY (where I live) are still annuity-only. So is MA Mega$.uck$."

HEY CASH & CARRY........maybe they're trying to inspire all the "Young At Heart" to live much longer lives, so as to recieve the entire Annuity Prize Winnings....LOLOLOLOLOL.......

Stooges

dvdiva's avatardvdiva

I would have laughed if they tried to launder money in the Indiana Lottery - they just would have lost it all.

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