Reids Sentenced for Money Laundering Conspiracy and Harboring a Fugitive

LONDON, KY—Wayne Reid, 62, and Donna Reid, 60, of Burning Springs, Kentucky, were were sentenced yesterday to 194 months and 188 months, respectively, in prison, as well as forfeiture of $1.5 million in assets, for money laundering conspiracy and harboring a federal fugitive by United States District Court Judge Danny C. Reeves.

In September 2008, the Reids were found guilty by a jury of the charges. The evidence at trial established that from January of 2000 through November of 2005, the Reids purchased acreage in Clay County, Ky. and began development of the property, including the construction of homes, remodeling an existing home, and constructing a convenient store, to disguise a multi-million dollar marijuana trafficking operation. To perpetuate the scheme, the Reids took out loans and then made large unexplained cash payments to pay off the loans. The development of the property was also funded with unexplained cash. Throughout the conspiracy, the Reids made structured cash deposits at the First National Bank of Manchester that included cash deposits totaling more than $470,000 from March through November of 2000. In addition, Wayne Reid purchased more than $2 million dollars in heavy construction equipment over the course of the conspiracy. Further testimony revealed that in January of 2005, Wayne and Donna Reid deeded 1.57 acres of land to their daughter Marty Reid for no monetary consideration, only to buy it back from her just over a month later for $225,000.

Testimony also revealed that the Reids concealed the location of federal fugitive Larry Golden Jackson, Jr., who was their partner in the money laundering scheme. While Jackson was a fugitive, the Reids concealed him in their home for several days, made a trip to visit him in Arizona, and met him on other occasions in Tennessee.

Under federal law, the Reids must serve 85 percent of their prison sentence, and, upon release, will be under the supervision of the United States Probation Office for 2 years.

James A. Zerhusen, United States Attorney for the Eastern District of Kentucky, and Special Agent in Charge Timothy Cox, Federal Bureau of Investigation, and Special Agent in Charge Christopher Pikelis, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement today after the sentencing.

The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The United States was represented by Assistant United States Attorney Stephen C. Smith.