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San Diego Lawyer Laundered $100,000 in Drug Proceeds
A San Diego lawyer has pleaded guilty to laundering $100,000 in drug proceeds and tampering with a witness, federal authorities announced on Friday.
James Warner, a 65-year-old resident of San Diego and a member of the California bar since December 1974, pleaded guilty to conspiracy to launder drug proceeds and attempted harassment of a witness in United States District Court in San Diego.
According to the plea agreement, Warner laundered $100,000 of a client’s drug trafficking proceeds by investing it in an off-shore business. He used his own funds from his U.S. bank accounts and wired approximately $99,965 to an off-shore bank account in the British Virgin Islands.
Warner also structured the $100,000 he received from the drug trafficker into his personal and business bank accounts to further conceal and disguise the nature of the drug proceeds. He created a fictitious corporation named Grenadine Development Inc., and opened a bank account in the name of Grenadine Development Inc., to issue checks to the drug trafficker.
Warner admitted that he failed to file an IRS Form 8300 “Report of Cash Payments Over $10,000 received in a trade or business” which was required to be filed by defendant Warner when he received currency greater than $10,000 in his business as an attorney.
As part of the plea agreement, Warner also admitted that he tampered with a witness when he told his client, a drug trafficker identified as “T.K.,” that he should pay legal fees of another drug trafficker to Warner, to prevent him from cooperating against T.K. Warner further told T.K. that if a court-appointed taxpayer-funded lawyer would “squeeze” the other trafficker to cooperate against T.K.
Warner faces a statutory maximum sentence of 23 years in federal prison at a sentencing hearing scheduled for October 16. He was released on a $5,000 bond following his guilty plea.
“James Warner is a well-known criminal defense attorney in San Diego, who devised a complex scheme to launder drug money,” said Erick Martinez, Special Agent in Charge for IRS – Criminal Investigation. “Today’s admission of guilt by Mr. Warner is another example of IRS Criminal Investigation’s continued commitment to protect the integrity of the nation’s financial system from illicit activity.”
“Individuals who assist drug traffickers in their endeavors will be held just as accountable as the person who is actually selling the drugs,” said DEA San Diego Special Agent in Charge William R. Sherman. “Regardless of your professional credentials, you will be held accountable for your actions.”
Warner agreed to a criminal forfeiture in the amount of $100,000 – the sum that was laundered. He also agreed to administratively forfeit approximately $200,080 in cash which was seized from his law office during the execution of a federal search warrant, along with $34,527.60 seized from Warner’s personal and business accounts.
Warner’s guilty plea is a significant blow to the San Diego legal community, where he was a respected and well-known attorney.
The investigation was conducted by the IRS – Criminal Investigation and the Drug Enforcement Administration/Narcotics Task Force.
RELATED: Ex-Cop, Lawyer Ran Sex Trafficking Ring Disguised as Massage Parlors
Key Facts
- State: California
- Category: Drug Trafficking, Fraud & Financial Crimes, Violent Crime, White Collar Crime
- Source: DOJ Press Release â†â€â€
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