Lottery used to launder drug money, federal authorities say
The Maryland Lottery's slogan may be "Let Yourself Play," but the feds are saying it's the lottery that got played. Authorities are saying a suspected drug dealer laundered money through winning tickets.
In a scheme outlined in a federal indictment filed Wednesday -- and fully explored in a story here -- prosecutors say that Steven Blackwell bought winning $5,000 lottery tickets from three players and then cashed them in for the proceeds. The original player presumably got their winnings tax-free, and the suspect got clean cash out of the deal.
Three times in a little overa a month, the indictment says, the same woman working for Blackwell cashed three winning tickets, each for $5,000. The charges also include allegations that money was laundered through Las Vegas casino chips, including up to $35,000's worth from the Venetian Resort.
You may remember Blackwell -- he's been linked to a string of violence and authorities are trying to break up his alleged empire by seizing $10 million. He is linked to two real estate companies that own a string of properties in the city and he owns a $740,000 house in Elkton.
More details from a previous story by Sun reporter Justin Fenton:
Federal authorities are trying to seize more than $10 million from reputed drug kingpin Steven Blackwell Jr., who was indicted along with two others on federal heroin distribution charges last month.
The brief court filing in U.S. District Court indicates for the first time the scope of Blackwell's alleged drug empire and links him to two real estate companies that own property in East Baltimore and a home along the Elk River in Cecil County that was purchased for $740,000.Authorities have labeled Blackwell, 26, a key player in a violent drug feud that began with the abduction of his two younger brothers and included a quadruple shooting outside an appliance store and a shootout at a backyard cookout that injured 12 people, including Blackwell.
Despite his reputation, Blackwell, also known as "J.R.," hadn't faced serious charges since he was 17 years old. He was picked up in New York last week after being indicted along with co-defendants Tahirah Carter, 34, and Joy Edison, 24, whose roles have not been spelled out.
Court papers and state business records show that Blackwell and Edison are linked to two real estate companies, JJM Realty LLC and J. Edison Properties, which own property in the Oliver, Berea and Johnston Square neighborhoods that were purchased between Aug. 29, 2008, and Jan. 6, 2009. According to assessments, they appear to be vacant homes.
State records show that JJM is registered in Blackwell's name for the purpose of "buying, selling and renting properties," while J. Edison properties dissolved last year after failing to file proper paperwork.
The Cecil County home is in a new development along the Elk River, with 35,000 square feet of property, and the title is in Edison's name.
Federal prosecutors filed a document Tuesday giving notice that they intend to seize "any and all property obtained directly or indirectly" as a result of drug dealing, including $10 million in U.S. currency.
Blackwell has yet to make an appearance in Maryland court, and details of the allegations remain unclear. But a news release from the U.S. attorney's office announcing the indictments indicated a wide range of agencies working on the investigation, including the IRS, FBI, city and state police, city prosecutors and New York's Drug Enforcement Agency.
In April 2008, Blackwell's two younger brothers were abducted by masked gunmen from their Catonsville home by rival drug dealers who thought Blackwell was cheating them on the price of heroin, according to documents previously filed in federal court by an agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives. Blackwell paid a $500,000 ransom to free his brothers, the records show.
Six weeks later, authorities said, gunmen took revenge with a quadruple shooting outside the Allen & Family Appliance store, a discount appliance shop in East Baltimore. The store was operated by the family of Terrell Allen, described by law enforcement officials as a drug dealer who took part in the Blackwell kidnapping. The shooting killed Allen's father, Tony Allen, 52, and a 27-year-old named Omar Spriggs. Terrell Allen and another man were injured.
In the months that followed, several Blackwell associates were killed. Then on July 26 of last year, gunfire rang out at a backyard cookout in East Baltimore held to commemorate their deaths. Twelve people were shot and wounded, including Blackwell, a pregnant woman and a 2-year-old girl.
Categories: Courts and the justice system, East Baltimore
