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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Indiana

FOR IMMEDIATE RELEASE
Thursday, January 29, 2015

United States Attorney’s Office announces sentencing of former redevelopment commission member

John “Jay” Carter sentenced for his role in major money laundering scheme involving drug money from local marijuana dealers

PRESS RELEASE

EVANSVILLE- Josh J. Minkler, Acting United States Attorney, announced today the sentencing of a former member of the Evansville Redevelopment Commission for his role in a major drug-laundering scheme. John “Jay” Carter 49, was sentenced to four years in federal prison by U.S. District Judge Richard L. Young. Carter was convicted in October of last year on eight counts of money laundering, two counts of making false statements to federal agents and structuring a money transaction.

“The citizens of Evansville deserve better from their public officials,” said Minkler. “Mr. Carter used his position of authority to bypass the legal system and used dirty drug money to assist criminals and better himself.”

According to court documents and testimony, two Evansville-area residents, were involved in a large-scale drug trafficking operation, moving hundreds of pounds of marijuana to the tri-state area from Mexico and Texas. This activity generated large amounts of cash proceeds.

Carter assisted these men in efforts to launder their money by concealing its origin through real estate transfers, business deals, financial transactions and in at least one case, testified before the Evansville Public Safety Committee to support awarding a city contract that benefitted them.

Carter used $90,000 in drug proceeds to transfer ownership of a property on South Kentucky Avenue from one of the dealers, then transferred the property to himself. He used thousands of dollars in drug proceeds to purchase automobiles, a towing business and wreckers, later used for a City contract in Evansville. Carter also used money from drug transactions to purchase Jazzy Grooves Nightclub located on Main Street in Downtown Evansville.

This case was investigated by the Internal Revenue Service, the Evansville Police Department and the Drug Enforcement Administration.

“IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society,” said Special Agent in Charge James C. Lee. “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-CI helps maintain that public trust and ensure that everyone pays their fair share.”

According to Assistant United States Attorney Matthew Brookman, who prosecuted this case for the government, Carter must serve three years of supervised release after his sentence.

 

Updated February 2, 2015