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Jeweler Pleads Guilty to Money Laundering

Charges Include Transportation of Stolen Diamonds

Feb 1, 2012 3:09 PM   By Ricci Dipshan
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RAPAPORT... Richard Allen Kay, 39, of Zumbro Falls, Minnesota, pleaded guilty  to charges stemming from conspiring to distribute more than 1,000 kilograms of marijuana, money laundering and transporting stolen gemstones.  

Federal prosecutors contended that, Kay, using  “Kay Diamonds” from 2001 to 2009,  conspired with an unmade co-conspirator employed at Sterling Jewelers Inc. who had access to diamonds, to transport  stolen gemstones into Minnesota.  Kay made approximately 10 trips between Ohio and Minnesota and transported anywhere from 50 to 100 stolen gemstones during that time, according to the indictment. 

Furthermore, in relation to Kay’s marijuana distribution scheme, four other men from southern Minnesota have pleaded guilty to distributing marijuana and helping Kay hide the assets made from the illicit sales.

Kay faces a potential maximum penalty of life in prison for conspiracy to distribute marijuana, along with a potential maximum penalty of five years in prison for transporting stolen property, and a potential maximum penalty of 10 years each on  11 counts of money laundering.

The federal government is also seeking forfeiture of hundreds of thousands of dollars worth of assets it claims were the proceeds of Kay’s illegal activities, including cash, jewelry, a boat, a luxury automobile, and lakeshore property in Zumbro Falls.
Tags: , gems, kay, Kay Diamonds, marijuana, Minnesota, Ohio, Ricci Dipshan, Richard Allen Kay, sterling, Sterling Jewelers, Inc, stolen
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