MASON CITY, IA – A Mason City car dealer is headed to federal prison after admitting to deliberately laundering drug money. Jerry Flaherty, 54, received an 18-month sentence today for his role in concealing the source of funds linked to illegal narcotics trafficking.
The scheme unfolded in the spring of 2014, when Flaherty, owner of Wheel Man Auto, LLC, was approached by an undercover law enforcement officer posing as a drug dealer. According to court documents, the officer explicitly stated his desire to avoid government paperwork, telling Flaherty, “I just don’t want the government forms to file” and “I just don’t want anything in my name.” Flaherty knowingly played along.
The officer ultimately purchased a vehicle for $20,500 in cash. Instead of reporting the transaction accurately, Flaherty falsified records, listing the sale as a $15,000 credit card purchase. The officer reinforced the illicit nature of the funds, stating, “You know my deal. You know I sell cocaine and my thing is I just don’t need no, them government forms.” Flaherty never filed the legally required documentation, effectively shielding the drug proceeds from scrutiny.
United States District Court Judge C.J. Williams handed down the sentence in Cedar Rapids. In addition to the 18-month imprisonment, Flaherty was slapped with a $25,000 fine and ordered to serve a one-year term of supervised release upon completion of his prison sentence. There is no parole in the federal system – Flaherty will serve his full term.
Flaherty was released on bond and will self-surrender to the Bureau of Prisons on a date to be determined. This case serves as a stark reminder that those who facilitate criminal activity, even through seemingly legitimate businesses, will face the full weight of federal prosecution. Assistant United States Attorney Anthony Morfitt successfully prosecuted the case, with the investigation spearheaded by the Internal Revenue Service.
Court file information can be found at https://ecf.iand.uscourts.gov/cgi-bin/login.pl, case file number 18-CR-3016. Follow the U.S. Attorney’s Office for the Northern District of Iowa on Twitter: @USAO_NDIA.
Related Federal Cases
- Chicago Drug Dealer Gets Over 30 Years for Heroin Death · Iowa
- Cedar Rapids Drug Dealer Hall Gets 30 Years · Iowa
- Marshalltown’s Lopez Martinez Found Guilty of Meth & Money Laundering · Iowa
- Cedar Rapids Drug Felon Gregory Givens Sentenced to 22 Years · Illinois
- Waterloo Shooter Pleads Guilty To Gun, Drug Charges · Iowa
Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News