Cleveland Resident Charged with Money Laundering

William J. Edwards, United States Attorney for the Northern District of Ohio, C. Frank Figliuzzi, Special Agent in Charge of the Cleveland Division of the FBI, Jose (Tony) A. Gonzalez, Special Agent in Charge of the Cincinnati Field Office of the IRS Criminal Investigation Division, and Michael McGrath, Chief, Cleveland Division of Police, announced that a federal grand jury sitting in Cleveland, Ohio, returned a five-count indictment charging Reuben Lloyd, age 41, of Cleveland, Ohio, with violations of the federal money laundering laws.

Count 1 of the indictment charges Lloyd with conspiracy to launder drug proceeds.

Counts 2-5 of the indictment charge Lloyd with specific instances of laundering alleged drug proceeds.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh following a year-long continuing investigation code named "Sin City Side", which targeted a used car dealership known as City Side Wholesale Automotive operating at 5333 and 5415 Lorain Avenue, Cleveland, Ohio. The investigation revealed that Reuben Lloyd along with other employees and/or owners of City Side were laundering drug proceeds for known Cleveland area drug dealers by accepting large cash payments for high-end used vehicles and structuring the deals to hide the source and amount of the income to avoid IRS reporting requirements. During the undercover portion of the investigation, Lloyd along with other City Side employees sold a 2004 Dodge Durango, a 2003 BMW 745Li, and a 2006 Jeep Commander for approximately $51,000.00 in cash to undercover FBI agents posing as drug dealers. In September of 2008, nearly 100 state and federal law enforcement officers served six federal search warrants on the corporate offices and bank accounts of City Side as well as the homes and yacht of three other subjects. During the searches, agents seized approximately 77 vehicles, a 39-foot yacht, $74,287.90 and volumes of paperwork associated with the sale of City Side vehicles over the past several years. This complicated investigation is still continuing.

An indictment is only a charge and is not evidence of guilt.

A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.