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Mason City car dealer sentenced to federal prison for money laundering


This news story was published on May 30, 2019.
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Wheelman Auto, 1201 South Federal in Mason City
beacon.schneidercorp.com

CEDAR RAPIDS – A Mason City car dealer who laundered what he believed to be drug proceeds by selling a car for cash and not reporting the sale as he was required to do was sentenced today to more than a year in federal prison.

Jerry Flaherty, age 54, from Mason City, Iowa, received the prison term after an October 25, 2018 guilty plea to money laundering.

Information disclosed at sentencing and in a written plea agreement showed that in the spring of 2014, an undercover law enforcement officer met Flaherty at his car dealership, Wheel Man Auto, LLC in Mason City. During one meeting, the law enforcement officer purported to be a drug dealer and told Flaherty, among other things, that “I just don’t want the government forms to file” and “I just don’t want anything in my name.” During a second meeting, the undercover officer agreed to buy a car for $20,500 in cash, but Flaherty agreed to record the sale as a $15,000 credit card sale. During the meeting, the undercover officer told Flaherty “You know my deal. You know I sell cocaine and my thing is I just don’t need no, them government forms.” After the sale was completed, Flaherty never filed a form he was required to file under federal law documenting the sale.

Flaherty was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Flaherty was sentenced to 18 months’ imprisonment. He was also fined $25,000. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.

Flaherty was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service.

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20 Responses to Mason City car dealer sentenced to federal prison for money laundering

  1. Avatar

    Anonymous Reply Report comment

    June 2, 2019 at 4:08 pm

    Great job, continue to go after small fries while the big fish grease the wheels. Mason City is so corrupt.

  2. Avatar

    Anonymous Reply Report comment

    June 1, 2019 at 2:56 am

    There’s way more to this. Feds don’t run a sting randomly if they don’t have enough prior evidence that laundering drug money wasn’t all ready happening. This happened in 2014 and charged in 2018. Read between the lines, Feds don’t wait 4 years to charge him and indict . He’s more then likely been working with the Feds for 4 years. Wonder who else will end up going down in the drug world. This wasn’t adjust about ripping the government off tax money like some commentators want to down play it. Feds would of charged tax evasion. This had way more to do with drugs moving through and laundering drug money. Take your blinders off and see the whole picture,. This guy got off lucky with 18 months.

  3. Avatar

    Anonymous Reply Report comment

    May 31, 2019 at 7:59 am

    jesus christ, in a town of 27,000 that has more than its share of issues the cops are out playing make believe busting old men…. they could have been out arresting a real cocaine dealer instead of pretending to be one for money. or maybe a meth dealer? or a violent criminal? not some old man who while he may have commited a crime he wasnt creating victims and destroying lives and families. is priority even a word anymore? seems like the real victims here are this man and his family. love how we have methed up drug addicts all over the streets and shootings twice a month but our pd is out there making sure nobody is commiting non violent money crimes. anyone else give a damn if the old man defrauded the government? f**k the government.

    • Avatar

      Anonymous Reply Report comment

      May 31, 2019 at 8:15 am

      What does Jesus have to do with it? Besides this kind of sums it all up, “A Mason City car dealer who laundered what he believed to be drug proceeds”. When you get involved in the illegal drug business, sooner or later you get caught, hopefully. The justice system doesn’t distinguish between the street pusher or a high roller car dealer. I’d say that the judge was very lenient in giving him only 18 months.

    • Avatar

      Anonymous Reply Report comment

      June 1, 2019 at 4:22 am

      MCPD wasn’t even involved.

  4. Avatar

    Anonymous Reply Report comment

    May 31, 2019 at 7:10 am

    Nice entrapment, cops. This guy is a fairly decent man.

    • Avatar

      Anonymous Reply Report comment

      May 31, 2019 at 8:00 am

      “fairly decent”?

      fairly – in conformity with the rules or laws and without fraud or cheating;

      decent – marked by moral integrity, kindness

      If you adhere to these descriptions, you don’t have to worry about, entrapment.

  5. Avatar

    Anonymous Reply Report comment

    May 30, 2019 at 11:25 pm

    Wish I could get one of his cars from the government. Cause I’m sure they will be confiscating all his cars.

    • Avatar

      Anonymous Reply Report comment

      May 31, 2019 at 8:01 am

      oh yeah, mcpd is gonna have a bunch of new undercover vehicles. those cars wont get to far, otherwise someone who sells cars told me they like to rent the uc cars from hosmer.

  6. Avatar

    Anonymous Reply Report comment

    May 30, 2019 at 6:44 pm

    2 down 1 to go and their trio will be complete! First one convicted of assault with intent to commit sexual abuse, second laundering drug money, what will the third one be charged with? Let’s just wait and see as time will tell!

  7. Avatar

    Sami Reply Report comment

    May 30, 2019 at 6:01 pm

    I’m sure he wasnt involved in any drug runs bahahahaha!!! Looks like his woman better find herself a new sugar daddy

    • Avatar

      Anonymous Reply Report comment

      June 1, 2019 at 1:38 pm

      When addicted to drugs and women can’t support themselves it’s amazing what the ho’s will do. They have to hook onto someone. They be cleaning, washin, and cooking by day and suckin ur drug dealer family or best friend in da alley. Desperate men problems who can’t get a decent woman. Lookin like a joke.

  8. Avatar

    Anonymous Reply Report comment

    May 30, 2019 at 5:51 pm

    Bye bye!

  9. Avatar

    Anonymous Reply Report comment

    May 30, 2019 at 5:42 pm

    I am surprised that 3 or 4 other MC car dealers weren’t charged in this sting operation.

    • Avatar

      Anonymous Reply Report comment

      May 31, 2019 at 11:23 am

      maybe they helped set him up, so they could get his clients???

      • Avatar

        Anonymous Reply Report comment

        June 1, 2019 at 7:59 am

        Wouldnt suprise me.

        • Avatar

          Anonymous Reply Report comment

          June 1, 2019 at 1:56 pm

          Sounds like he was dumb and got his own ass caught. Prob workin with Mc 40 year long drug dealer and thought he’d never be touched. People sic of the meth in this town and the tweeks. Indicted 4 years later for only 1 count and light sentenced speaks volumes. Prob snitch, 4 years gathered info maybe that old meth dealer and his cronies and midget might see a cell. Shit happens. Don’t trust your closest people, they get rapped and set ya up as they sittin at ya table and sleeping in ya bed. All while the teeeks think they livin good and happy. Then SURPRISE haha right unda ya nose cause they blind. They be homeing up meth hoe’s as hoe’s be turning info. Paranoid mush for brains.

  10. Avatar

    Anonymous Reply Report comment

    May 30, 2019 at 5:16 pm

    run jerry run