Third Person Charged in Relation to Financial Investigation and Multiple Area Businesses
|June 12, 2013|
CORPUS CHRISTI, Texas – Leroy Mitchan Jr., 33, of Corpus Christi, has been indicted as a result of the efforts of a multi-agency investigation into the structuring of financial transactions, United States Attorney Kenneth Magidson announced today.
Mitchan is the third person indicted as part of this structuring conspiracy. Kimberly Davis, 27, and Justin Colmenero, 30, both of Corpus Christi, were indicted last month.
This indictment, returned just moments ago, alleges the defendants conspired to structured more than $100,000 in cash deposit transactions over a 12-month period with a domestic financial institution in order to avoid the legal reporting requirements of the bank.
Mitchan was arrested upon the filing of a criminal complaint on May 31, 2013. At the time of his arrest, he was allegedly in possession of synthetic marijuana. He later appeared before U.S. Magistrate Judge Jason B. Libby for a detention hearing, at which time the government detailed searches that had been executed at four local businesses as well as Mitchan’s residence. A Drug Enforcement Administration (DEA) agent testified that agents located hydroponic marijuana, synthetic marijuana, hash and THC oil at Mitchan’s residence. Testimony further revealed that agents located a safe with approximately $360,000 and synthetic marijuana at Uncle Mike’s Rent To Own as well as six firearms, one of which was reported stolen, at Mr. Nice Guys Auto in Corpus Christi.
An agent with Internal Revenue Service – Criminal Investigation (IRS-CI) also testified at the hearing that the structuring conspiracy involved several transactions totaling more than $450,000.
Mitchan was permitted to remain on bond pending further criminal proceedings. If convicted, he faces up to 10 years in federal prison and a possible $500,000 fine.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by IRS-CI, DEA and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorneys Hugo R. Martinez and Lance A. Watt.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.