15 Charged With Laundering More Than $1.3 Million

SANTA ANA —  Eleven San Bernardino County residents were arrested Wednesday in connection with a money-laundering operation that used more than $1.3 million in marijuana sales to buy real estate and vehicles, authorities said.

Four other people who also were charged in U.S. District Court in Santa Ana had warrants issued for their arrests.

The 15 were charged with laundering more than $949,000 in 1988 and 1989 by purchasing cashier’s checks and using them to buy real estate, airplanes and to fund loans to themselves, authorities said. In addition, they are alleged to have spent more than $390,000 on the purchase of cars and trucks registered in false names.

The purpose of the conspiracy, said Assistant U.S. Atty. Stephen G. Wolfe, who is handling the case, was to avoid paying taxes on money raised through marijuana sales. “I doubt that we’ve identified all of it,” Wolfe said.

Arrested were Edward C. Adams, 37, of Crestline; Marguerite M. Hamilton, 29, of Twin Peaks; Ronald J. Williams, 35, of Redlands; and Timothy S. McGrath, 32, address unknown. San Bernardino residents arrested were Robert Wayne Nilson, 26; David E. Granger, 26; Paul R. Garot, 33; Robert E. Foster, 34; Harry Pruitt Sr., 71; and Richard C. Larson.

Gary B. Chenault, 39, also of San Bernardino, agreed to surrender.

In addition, arrest warrants were issued for fugitives Dale R. Yeager, 30, of San Bernardino; Thomas J. Pospychala, 39, of Crestline; and David Miller and Emmett Doering, ages and addresses unknown.

Wolfe said the arrests were the result of a two-year investigation by the Internal Revenue Service, U.S. Customs Service and Los Angeles Police Department.

To pursue the case, Wolfe said, the government now must either present the case to the federal grand jury or conduct a preliminary hearing before a magistrate by April 22.