PORTLAND, Ore.—A Springfield man has pleaded guilty to distributing marijuana on the dark web and laundering the proceeds.
Robert Kelly O’Neill, 59, waived indictment and pleaded guilty to possession with intent to distribute marijuana and money laundering on January 18, 2022.
According to court documents, O’Neill used the alias ‘Resinate’ and employed the services of a dark net vendor, GOLD, who exchanged Bitcoin for cash. GOLD received Bitcoin from customers and, in exchange for a fee, would mail or ship cash to a physical mailing address provided by the customer.
Between September 2015 and May 2018, Resinate laundered more than $725,000 in illicit proceeds through GOLD and another $167,000 in Bitcoin through a co-conspirator in Springfield. In addition, records from the dark web sites Silk Road and Silk Road 2.0 confirmed that, in 2013 and 2014, Resinate earned $390,000 in Bitcoin from the sale of marijuana.
On June 14, 2018, law enforcement executed numerous federal search warrants at nominee house addresses and on O’Neill’s Springfield residence. Investigators discovered a marijuana processing and packaging operation in O’Neill’s garage and seized dozens of computers and electronic storage devices from O’Neill’s residence. Agents also found handwritten notes identifying O’Neill as Resinate.
O’Neill will be sentenced on April 26, 2022, before U.S. District Court Judge Michael J. McShane. Possession with intent to distribute marijuana is punishable by up to 20 years in prison, a $1 million fine, and five years’ supervised release. Money laundering is punishable by up to 20 years in prison; a fine of $500,000 or twice the value of the property involved, whichever is greater; and three years’ supervised release.
As part of his plea agreement, O’Neill has agreed to forfeit the U.S. currency, Bitcoin, and Bitcoin Cash seized by agents.
This case was investigated by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), IRS Criminal Investigation, and numerous state and local law enforcement agencies. Assistant U.S. Attorneys Gavin W. Bruce prosecuted the case.
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Key Facts
- State: Oregon
- Category: Drug Trafficking|Fraud & Financial Crimes|Cybercrime
- Source: DOJ Press Release â†â€â€
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