Reno Businessman/former Radio Talk Show Host Pleads Guilty To Laundering Drug Monies
Reno, Nev. – Reno businessman and former radio talk show host Walter Edward Floyd, aka Eddie Floyd, age 59, pleaded guilty today in U.S. District Court in Reno to laundering drug monies, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Floyd, owner of several Reno-area companies, including U.S. Realty, Nevada Matters, and CADCO, Inc., and the former host of "Nevada and America Matters" on KBDB-AM, was indicted in February on conspiracy to manufacture and distribute marijuana and money laundering charges. Today, he pleaded guilty to one count of Money Laundering and Aiding and Abetting, and admitted that he assisted his son and another man to launder the proceeds of their marijuana trafficking activities in northern California. He is scheduled to be sentenced on March 30, 2007, at 10:00 a.m. before U.S. District Judge Roger L. Hunt, and faces up to 20 years in prison and a $500,000 fine.
"We will continue to pursue those individuals who engage in organized drug trafficking," said U.S. Attorney Bogden. "The individuals involved in this organization were not only cultivating and distributing marijuana in interstate commerce, but were concealing the proceeds and avoiding tax liability. This case is an excellent example of how both the federal drug laws and tax laws can be used to take down criminal organizations. I commend the DEA and IRS Criminal Investigation for their efforts in this case."
According to the plea memorandum, from about April 19, 2002, to March 24, 2004, Edward Floyd and his son, Joshua Floyd, provided real property located in Doyle, California, also known as the "Doyle Ski Ranch," to Daren Mabunda for the purpose of cultivating marijuana. Walter Floyd drafted a fictitious lease for the Doyle real property in the name of "Earnest Green" to cover lease payments by Mabunda to use the Doyle property for the marijuana grow operation. Between April 22, 2002, and August 18, 2003, Walter Floyd received 11 monthly lease payments from Mabunda totaling $37,500, which he deposited into his U.S. Realty Wells Fargo bank accounts.
On about December 31, 2003, Walter Floyd also provided Daren Mabunda with 400,000 shares of Nevada matters stock in exchange for approximately $110,000 in drug proceeds, and on about February 11, 2004, Floyd provided Mabunda with 100,000 shares of Nevada matters stock in exchange for approximately $27,500 in drug proceeds.
The total amount of funds laundered by Walter Floyd total $175,000. Floyd knew the funds were proceeds from Daren Mabunda's drug trafficking activities. Floyd accepted the lease payments and provided the Nevada matters stock in an attempt to conceal the proceeds and disguise the ownership and control of the proceeds while conducting the financial transactions.
Daren Mabunda was convicted in the Eastern District of Kentucky of conspiracy to distribute marijuana and sentenced in October 2005 to 36 months in prison. Josh Floyd was convicted in the Eastern District of Kentucky of conspiracy to distribute marijuana and sentenced in October 2005 to 10 years in prison. Darrell Long pleaded guilty in the District of Nevada to Interstate Travel in Aid of Racketeering, and is scheduled for sentencing on February 25, 2007. Guinnaverre Maher pleaded guilty in the District of Nevada to Money Laundering and is scheduled to be sentenced on February 8, 2007.
The case is being investigated by the Drug Enforcement Administration and IRS Criminal Investigation and prosecuted by Assistant United States Attorney Craig S. Denney.
