Potomac Business Man Sentenced to 15 Months in Prison For Laundering Drug Proceeds
Greenbelt, Maryland - U.S. District Judge Alexander Williams sentenced Todd Lubar, age 39, of Potomac, Maryland, today to 15 months in prison followed by two years of supervised release for money laundering in connection with a scheme to launder drug proceeds through legitimate businesses owned by Lubar. Judge Williams also entered an order requiring Lubar to forfeit $20,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Mark R. Chait of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Acting Special Agent in Charge Jeannine A. Hammett of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, from September 2007 to at least 2009, Lubar was involved with several legitimate businesses in Maryland and Pennsylvania, including a demolition business, Red Rock Service Co., LLC, and a scrap metal business, Scrap USA. During 2008, drug dealers David Anthony Kittrell, Philip A. Forde, Jamal A. Daniels and others were involved in the distribution of cocaine, heroin, MDMA and marijuana to an undercover ATF agent. The conspirators sold more than 581 grams of cocaine, just under 150 grams of heroin, and more than two kilograms of marijuana to the undercover agent. During this time, Kittrell introduced the undercover agent to Lubar, who Kittrell said was a partner in real estate and other ventures.
During a meeting, Lubar advised the undercover agent that: he has a mortgage company and has been in the mortgage business for 15 years; that he has a nightclub in Washington, DC, as well as a scrap metal business in Reading, Pennsylvania; and that while attending Syracuse University, he was a bookmaker who sold five to 10 pounds of marijuana per week and 350 ecstasy pills per week. The undercover agent told Kittrell and Lubar that he was looking for ways to invest and hide cash proceeds from narcotics distribution in Chicago. Lubar advised the undercover agent that he could provide professionals to transport narcotics cross country for the undercover agent without law enforcement detection. Lubar then explained the ease with which he is able to launder money through his scrap metal business because the business conducts most of its transactions in cash.
Over the course of the year, Lubar offered the undercover agent other “investment opportunities” to launder cash. Eventually, the agent agreed to launder $20,000 through Lubar by investing in a business venture suggested by Lubar. After receiving the cash, Lubar presented a contract to the agent which indicated that the agent would provide $20,000 that day, and in return receive $25,000 from Lubar no later than December 31, 2008. On December 29, 2008, Lubar advised the agent that the $25,000 payment would be delayed until the middle of January 2009 due to the recent drug arrest of Daniels and his need for bail. The agent told Lubar to personally contact him when the money was available. On September 2, 2009, Lubar deposited only $200 into the agent’s undercover bank account.
Telephone records reflect that between July 2008 and September of 2009, Kittrell and Lubar were in contact with each other 1,495 times. Between August of 2008 and April of 2009, Daniels and Lubar were in contact with each other 28 times. Records reflect two telephone contacts between Forde and Lubar on July 6, 2008. In addition, numerous transactions were conducted between bank accounts for the scrap businesses and accounts for a business owned by Kitrell known as The Image House, as well as direct transactions between the narcotics conspirators and scrap metal business accounts controlled by Lubar.
Kittrell, Forde and Daniels have previously pleaded guilty to drug charges. Kittrell and Forde are awaiting sentencing. Daniels was sentenced to five years in prison.
United States Attorney Rod J. Rosenstein commended the ATF and IRS-CI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stuart A. Berman and Andrea L. Smith, who prosecuted this Organized Crime Drug Enforcement Task Force case.