Former Narcotics Agent And Co-Conspirator Sentenced In Drug Proceeds Money Laundering Case
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Chief United States District Court Judge Christopher C. Conner sentenced Timothy B. Riley and John T. Oiler for their roles in a money laundering conspiracy involving $800,000 in drug proceeds following their separate guilty pleas.
According to United States Attorney David J. Freed, both Riley and Oiler pleaded guilty to a conspiracy to launder proceeds of a nation-wide drug trafficking organization. Riley, age 48 of Philadelphia, was sentenced to 36 months’ imprisonment followed by one year of supervised release, and to forfeit up to $800,000. Riley retired from his position as a Narcotics Agent with the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations shortly after his criminal conduct in this case began. Oiler, age 49 of Georgia, was sentenced to serve 30 months’ imprisonment followed by one year of supervised release and to forfeit up to $800,000. The third co-conspirator, Michael Sean Riley, pleaded guilty and is awaiting sentencing.
Michael Riley arranged with John T. Oiler to rent a storage unit in Baltimore and travel to Pennsylvania to take possession of more than $800,000 of cash drug proceeds Michael Riley skimmed from a larger load of cash. Oiler took the vast majority of those proceeds and stored them in the rented unit in Baltimore. Michael Riley then contacted his cousin, Timothy Riley, then a Narcotics Agent of the PA Attorney General’s Office Bureau of Narcotics Investigations Mobile Street Crimes Unit, and turned over the rest of the cash proceeds to him and other agents from the Mobile Street Crimes Unit. Michael Riley paid Timothy Riley three cash payments totaling $48,000 which Timothy Riley subsequently laundered. Oiler and Michael Riley each netted about $400,000 of the proceeds and each conducted numerous financial transactions with the cash drug proceeds.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
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