Ex-state agent sentenced in conspiracy
A former state agent, once deployed in the Hazleton area, and another man were sentenced in an $800,000 drug money laundering conspiracy.
Timothy B. Riley and John T. Oiler pleaded guilty to a conspiracy to launder some of the proceeds from a nationwide drug trafficking organization, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania on Monday.
Chief U.S. District Court Judge Christopher C. Conner sentenced Riley, 48, of Philadelphia, to 36 months in prison followed by a year of supervised release, and the forfeiture of up to $800,000.
Riley retired from his position as a narcotics agent with the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations shortly after his criminal conduct in this case began, U.S. Attorney David J. Freed said in a news release.
He worked there from 2008 through 2014 and made arrests in Hazleton while then-Attorney General Kathleen Kane’s Intensive Mobile Proactive Anti-Crime Team was deployed in the area. The team made 150 arrests and seized more than $100,000 worth of heroin.
Oiler, 49, of Georgia was sentenced to serve 30 months in prison, followed by one year of supervised release and the forfeiture of up to $800,000 while a third co-conspirator, Michael Sean Riley, pleaded guilty and is awaiting sentencing.
Michael Riley and Oiler rented a storage unit in Baltimore and traveled to Pennsylvania to take more than $800,000 of cash drug proceeds that Michael Riley skimmed from a large load of cash, a press release states.
Oiler stashed the majority of those proceeds in the rented unit and Michael Riley then contacted his cousin, Timothy, turning over the rest of the money to him and other agents from the mobile street crimes unit, according to information from the U.S. Attorney.
Michael Riley paid Timothy Riley three cash payments totaling $48,000 which Timothy Riley subsequently laundered while Oiler and Michael Riley each netted about $400,000 of the proceeds, according to the press release.
The case is part of Project Safe Neighborhoods, and was investigated by the Harrisburg Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General.