A man from Pensacola, Fla. has admitted guilt to federal charges of drug trafficking and money laundering related to a extensive cocaine distribution network that lasted for several years across different states. 

Rayvaughn Andrews, 41, pleaded guilty to conspiring to distribute cocaine and laundering around $10 million in drug money through casinos in Nevada and Mississippi. 

Court documents reveal that Andrews' operation spanned from 2021 to 2024 and entailed the distribution of significant quantities of cocaine in Escambia County, Fla., and nearby regions. 

The federal complaint lacks detailed descriptions of the laundering process and does not name the casinos besides “Harrah’s Casino.” It is also unclear from the documents if this pertains to Harrah’s Las Vegas or Harrah’s Gulf Coast Biloxi. 

Papa Smurf 

Court documents reveal that Andrews purchased casino chips with cash at Harrah’s on 94 separate occasions in 2023. However, those transactions only surpassed $10K on two occasions, which is the limit that compels casinos to submit a report to the federal financial crime authority as mandated by law. 

According to the Bank Secrecy Act, casinos are required, similar to banks, to submit a Currency Transaction Report (CTR) to the Financial Crimes Enforcement Network (FinCEN) whenever someone makes cash transactions exceeding $10,000 within one day. 

Casino money laundering operations typically include acquiring chips with cash derived from illicit activities, making small bets to remain under the radar, and subsequently cashing out to receive checks or transfers that seem legitimate. 

Structuring, referred to as “smurfing,” is a money laundering strategy where a person intentionally conducts financial transactions in sums below regulatory reporting limits to evade detection. Despite being more challenging to identify, structuring is a federal offense on its own. 

Life Sentence Possible

“This guilty plea highlights the commitment of our law enforcement partners to disrupt and dismantle significant drug trafficking and money laundering organizations,” said US Attorney John Heekin. “Those who think they can profit and live lavish lifestyles off drug trafficking in the Northern District of Florida are sorely mistaken and will soon find themselves in federal prison.”

As part of the plea deal, Andrews also consented to surrender assets associated with his operation, which includes $40K in cash and a Chevrolet Corvette. 

Andrews faces allegations of conspiracy to distribute and possess cocaine with intent to distribute, as well as conspiracy to engage in money laundering. 

He is confronted with a maximum penalty of life imprisonment.