Florida Man Washed $10 Million in Drug Money Through Nevada, Mississippi Casinos
A man from Pensacola, Fla., has admitted guilt to federal drug trafficking and money laundering charges related to an extensive cocaine distribution network that lasted several years and crossed state lines.
Rayvaughn Andrews, 41, pleaded guilty to conspiracy to distribute cocaine and for laundering about $10 million in drug money through casinos in Mississippi and Nevada.
Court documents reveal that Andrews’ operation spanned from 2021 to 2024 and entailed the distribution of significant quantities of cocaine in Escambia County, Florida, and nearby regions.
The federal complaint lacks a detailed explanation of the laundering process and only refers to “Harrah’s Casino” without naming other casinos involved. It is not evident from the documents whether this pertains to Harrah’s Las Vegas or Harrah’s Gulf Coast Biloxi.
Papa Smurf
According to court documents, Andrews purchased casino chips with cash at Harrah's on 94 different occasions in 2023. However, only on two occasions did those transactions go beyond $10K, the limit that mandates casinos to submit a report to the financial crime regulator as per federal law.
According to the Bank Secrecy Act, casinos are required to submit a Currency Transaction Report (CTR) to the Financial Crimes Enforcement Network (FinCEN) whenever someone conducts cash transactions exceeding $10K in one day.
Casino laundering operations typically include buying chips using cash obtained from unlawful activities, making small bets to evade detection, and subsequently cashing out to receive checks or transfers that seem credible.
Structuring, referred to as "smurfing," is a money laundering method in which a person intentionally conducts financial transactions in sums under legal reporting limits to evade attention. Even though it is more difficult to identify, structuring constitutes a federal offense on its own.
Life Sentence Possible
“This guilty plea highlights the commitment of our law enforcement partners to disrupt and dismantle significant drug trafficking and money laundering organizations,” said US Attorney John Heekin. “Those who think they can profit and live lavish lifestyles off drug trafficking in the Northern District of Florida are sorely mistaken and will soon find themselves in federal prison.”
As part of the agreement, Andrews also consented to relinquish assets related to his operation, which included $40K in cash and a Chevrolet Corvette.
Andrews faces charges of conspiracy to distribute and possess cocaine with the intent to distribute, as well as conspiracy to engage in money laundering.
He could receive a maximum penalty of life imprisonment.