A Saco man accused of laundering drug money for a marijuana smuggler pleaded guilty Tuesday in federal court in Portland.
Michael Paul Jr., 44, waived indictment before Judge George Singal and pleaded guilty in U.S. District Court in Portland to a charge of conspiracy to launder money, for smuggler David Jones.
Paul admitted that in January 2012 Jones provided him with $25,000 cash generated from illegal drug sales so that Paul could buy a vehicle for Jones. Paul bought the vehicle from a dealership, paying the $25,000 vehicle price with $9,000 cash and the remainder from a business checking account, according to court records.
Federal agents have also raided the law offices of Gary Prolman, an attorney in Saco, to investigate whether he also laundered money for Jones. Although court records indicate Prolman has entered plea negotiations, he has not been formally charged.
Investigators from the Internal Revenue Service searched Prolman’s office at 743 Portland Road on Nov. 19 and seized boxes of financial documents, business records and computer equipment in connection with Jones, a Portland man who had hired Prolman as a consultant in his music and clothing businesses.
Jones, who goes by the nickname “David Kaos,” became the target of the federal investigation in 2012 after a friend who helped him with the drug business was arrested while driving about 100 pounds of marijuana from California to Maine, according to court records.
The friend, who is not identified in court records, provided information to police after his arrest on Sept. 5, 2012, telling authorities that Jones had 5,500 pounds of marijuana shipped to him from California in 2011 and 2012 using the U.S. Postal Service.
Jones, 29, pleaded guilty Dec. 10 to two counts of conspiracy to distribute marijuana and two counts of conspiracy to launder money and aiding and abetting. He faces as much as 40 years in federal prison. His sentencing is set for May 8.
Court records regarding the accusations against Paul are scant on details. They do not identify Paul’s business, how he came to know Jones, where he bought the vehicle for Jones or even what kind of vehicle it was.
Paul faces up to 20 years in prison and a fine of up to $500,000. He was released on an unsecured bond of $5,000 after his plea. He is scheduled to be sentenced on July 15.
Scott Dolan can be reached at 791-6304 or at:
Twitter: @scottddolan
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