Dealer Sent to Prison for Attempted Money Laundering

By Staff Writer June 03, 2019

A used-car dealer who sold a car for cash without reporting it in order to launder what he believed were drug proceeds faces more than a year in federal prison.


Jerry Flaherty, owner of Wheel Man Auto LLC in Mason City, Iowa, received the prison term after an October 2018 guilty plea to money laundering.


In the spring of 2014, an undercover law enforcement officer met several times with Flaherty at his car dealership. 


During the first meeting, the officer said he was a drug dealer and told Flaherty, among other things, that “I just don’t want the government forms to file” and “I just don’t want anything in my name.” 


During the second meeting, the undercover officer agreed to buy a car for $20,500 in cash, but Flaherty agreed to record the sale as a $15,000 credit card sale.  The undercover officer told Flaherty “You know my deal.  You know I sell cocaine and my thing is I just don’t need no, them government forms.” 


After the sale was completed, Flaherty never filed a form he was required to file under federal law documenting the sale.


Flaherty was sentenced to 18 months’ imprisonment and fined $25,000. 


He must also serve a one-year term of supervised release after the prison term.  There is no parole in the federal system.

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Last modified on Friday, 07 June 2019 02:14