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Justice News

Department of Justice
U.S. Attorney’s Office
District of Oregon

Tuesday, May 17, 2016

Illegal Interstate Marijuana Operation Results in Money Laundering Conviction

EUGENE, Ore. – A local marijuana proprietor, Eric Scully, 32, of Lane County, has pleaded guilty before U.S. District Judge Michael McShane in the District of Oregon for engaging in money laundering and using a fictitious name on a U.S. Postal Service shipping account.

According to the plea agreement, Scully admitted to engaging in a monetary transaction involving more than $10,000 of criminally derived proceeds, as well as creating a fictitious U.S.P.S. Click-N-Ship account for use in shipping packages of marijuana to multiple states.  The Information sets forth the details of the underlying illegal marijuana distribution operation, which involved growing large quantities of marijuana in Eugene and then illegally distributing it through a covert mail operation, shipping packages to a number of states that have not passed state laws relating to medical and/or recreational marijuana use.  It further details how Scully laundered the proceeds by operating behind the veil of a coffee kiosk purporting to be a legitimate business.  Throughout the course of the operation, Scully used the unlawful proceeds gained from interstate marijuana sales to amass a variety of assets that will be criminally forfeited to the government as part of the plea agreement.  Scully faces a statutory maximum sentence of 10 years in prison for the money laundering count, and up to five years for the fictitious name count. 

Also charged in the case are Joan Scully, 62, and Krystin Livingston, 34, of Lane County.  Joan Scully pleaded guilty to structuring deposits of drug proceeds to avoid financial reporting requirements, and Livingston pleaded guilty to using the fictitious U.S.P.S. shipping account.  Sentencing for all three defendants will take place on September 8, 2016, at 2:30 p.m. in Eugene. 

The Federal Bureau of Investigation and the Interagency Narcotics Enforcement Team (INET), along with assistance from the U.S. Postal Inspection Service, investigated this case.  The case is being prosecuted by Assistant U.S. Attorney Nancy M. Olson.

Drug Trafficking
Updated May 17, 2016