The Reisterstown Road jewelry store was supposed to be engaged in the sale of gold, silver and diamonds.
But federal prosecutors say Metro Broker Jewelers Ltd. in Baltimore also had a more devious business plan for the past 24 years: laundering drug money.
Authorities arrested the store?s owner, Eugene Petasky, 56, of Pikesville, Monday night on money laundering charges.
A federal grand jury had indicted Petasky on Nov. 15 for allegedly laundering more than $300,000 in drug proceeds through his jewelry business.
The seven-count indictment alleges that Petasky conspired with others since 1982 to disguise the proceeds of the unlawful distribution of controlled substances. The indictment also alleges that Petasky accepted cash payments of $12,500 on May 24 and $23,500 on Aug. 24, when he believed the cash to be the proceeds of unlawful activity.
The indictment also seeks the forfeiture of $336,000 and the assets of Metro Broker Jewelers, including bank accounts, inventory and cash.
The maximum penalty for money laundering and money-laundering conspiracy is 20 years in prison and a $500,000 fine, and five years in prison and a $25,000 fine for violation of currency-reporting requirements.
Petasky was rushed to Johns Hopkins Hospital with high blood pressure on Tuesday and was admitted, his Baltimore attorney Roland Walker said.
An initial appearance in the case was postponed until 3 p.m. today.
Walker said he had not yet discussed the charges with his client but that he rarely advises clients to plead guilty to a charge.
“I fight my cases,” Walker said.
