Posted: Tuesday, March 1, 2011 1:47 pm

http://www.murfreesboropost.com/rowland-pleas-guilty-to-money-laundering-cms-26258

Chris Rowland pleaded guilty to five counts of money laundering Monday morning in Nashville, bringing an end to a nearly four-year drama involving drugs, guns and cash.

As part of the plea agreement, six additional charges against Rowland were dropped.

In federal court Rowland admitted to buying a house on Teresa Lane in Murfreesboro with money from an individual only referred to as DJ, which was obtained from the sale of cocaine.

“Since DJ’s drug sales were always in cash, over the years he amassed a large sum of currency,” Rowland’s plea agreement said. “DJ did not use banks to deposit the currency or buy property in his own name for fear of alerting law enforcement off officals to his illegal activities.”

Instead DJ enlisted the help of Rowland, who applied for a loan through Cavalry Bank in Murfreesboro to purchase the home.

Between 2004 and 2007, DJ paid Rowland around $40,000 in lump sum and monthly payments of $1,250 to Rowland, which he used to pay down the home loan.

“During the time that DJ made payments to the defendant, public documents reflect that the house was owned by (Rowland),” the plea said.

In all DJ paid Rowland between $52,000 and $54,000 in cash for the home.

“The defendant knew that the cash paid by DJ represented proceeds of some form of unlawful activity,” the plea said.

Rowland will be sentenced for these crimes at 1:30 p.m. Thursday, June 2, 2011 before Judge Aleta Trauger in Nashville.

Each count of money laundering carries a maximum sentence of 20 years in prison, a $500,000 fine, or both. Rowland is expected to receive 30 to 37 months in prison with fines to be set by Trauger.

Rowland was indicted in February 2009 by a federal grand jury on two counts of weapons violations.

Rowland was arrested and charged with possession of a machine gun and possession of an unregistered firearm, a Rock River Arms .223-caliber machine gun and failing to register it.

Federal agents raided Rowland’s home and brother-in-law Jeremy Chad Smotherman’s home in September 2007 on Warrior Drive across from Riverdale High School as part of an investigation stemming from a $6 million illegal narcotics operation.

In court documents filed in 2008, Internal Revenue Service Agent William Desantis accused Rowland and Smotherman of money laundering as “sham owners” of real estate and engaging in large money transactions with defendants indicted in a $6 million narcotics operation.

Rowland and Smotherman were accused of filtering drug money from defendants through houses in Hendersonville, Desantis stated in court documents. Both Rowland and Smotherman worked in real estate in September 2007 when and federal agents searched their homes and offices.

Smotherman and business partner Michael Bryan Krabousanos were also indicted and charged in February with money laundering and bank fraud.

Smotherman and Krabousanos entered secret pleas in January 2010 on charges of conspiracy to commit bank fraud, bank fraud, engaging in monetary transactions in property derived from specified unlawful activity and conspiracy to launder proceeds from a specified unlawful activity

In court affidavits filed in 2008, Internal Revenue Service Agent William Desantis reported Smotherman was listed as the principal owner of Greytlyn Homes, the titled owners of a Hendersonville house sold to Bryan Krabousanos. Krabousanos and Smotherman are partners in K&S Group LLC. Krabousanos is the “sham owner” of the home, the agent alleged.

The bank fraud conspiracy indictment accuses Smotherman and Krabousanos of defrauding First Community Mortgage Inc., owned by First Community Bank of Bedford County, and obtaining money under false pretenses.

Smotherman will be sentenced at 11 a.m. March 28 and Krabousanos on May 23.