Tustin Man Named in Drug Case

An Orange County man and two others are to be arraigned today on federal charges of laundering nearly $1 million in proceeds from drug trafficking after an investigation by the Internal Revenue Service.

James Earl Johnson, 58, of Tustin and two Riverside residents--Patrick Jerome Dennis, 35, and Vickie Elaine Dennis, 30--were charged in a 17-count indictment announced Monday by the U.S. attorney’s office in Los Angeles.

The indictment alleges that Patrick Dennis led an organization that sold between 600 and 900 kilograms of cocaine between 1995 and 1998, much of it in the Detroit area. Drug agents estimated that the organization netted at least $1.8 million, of which $953,500 is covered by the money-laundering case.

Dennis is accused of laundering his cocaine profits by buying real estate. and deeding the property as a gift to Johnson, owner of G&M; Mortgage and J&B; Investments of Tustin. Johnson would then sell the property and funnel the money back to Dennis by paying Dennis’ wife a monthly salary of about $5,000, authorities allege.

Johnson also allegedly laundered money for Patrick Dennis by buying $175,800 in cashier’s checks, including a $25,000 payment on Dennis’ Ferrari, which Johnson disguised as a payment for an office copy machine, according to court documents.

The three remain free on bond. If convicted, Patrick Dennis could be sentence to life in prison without parole. Vickie Dennis and James Johnson each could get up to 80 years in prison if convicted on all counts.