A Washington D.C. man admitted in federal court today to laundering $3,500,000 in proceeds from the illegal sale of marijuana and THC products. Connor Pennington, 39, pleaded guilty to conspiracy to commit money laundering in Alexandria, Virginia, capping a years-long operation that moved millions in illicit cannabis cash through unlicensed delivery channels.
Pennington was the self-styled CEO of JointVentures, LLC, which operated under the street-facing name “Joint Delivery.” The outfit functioned as a high-volume marijuana delivery service, pushing THC vape cartridges, wax, edibles, and other products straight to customers across the D.C. metro area. Despite branding itself like a legit cannabis business, JointVentures was never licensed as a medical or recreational dispensary in any state or in the District of Columbia.
The organization ran its distribution network out of a residential building in downtown D.C., using a fleet of drivers and cyclists to fulfill orders. Revenue exploded over the years—nearly $1.5 million in 2018 alone, and over $2.3 million generated in just the first three quarters of 2021. Pennington oversaw every major decision, including how to funnel millions in cash without triggering bank reporting requirements.
To dodge detection, Pennington orchestrated a structured deposit scheme, directing employees to deposit cash in amounts under $10,000 across multiple company-controlled bank accounts. The tactic, known as “smurfing,” is a classic money laundering technique designed to evade Currency Transaction Reports (CTRs) mandated by federal law. The maneuver allowed JointVentures to fly under the radar while cycling staggering sums through the financial system.
Pennington’s guilty plea was entered before U.S. District Judge Leonie M. Brinkema, who will sentence him on May 2. He faces a maximum penalty of 20 years in federal prison, though actual sentences are typically lower based on U.S. Sentencing Guidelines and judicial discretion. Prosecutors emphasized the scale and sophistication of the laundering operation, calling it a brazen exploitation of financial loopholes.
The case was brought by Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, with support from Jarod Forget, DEA Washington Division; and Damon E. Wood, U.S. Postal Inspection Service. Assistant U.S. Attorneys Katherine Rumbaugh and David A. Peters are handling the prosecution. Court records, including Case No. 1:22-cr-127, are available via PACER and the Eastern District of Virginia’s public docket.
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Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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