Businessman Guilty in Money Laundering

A businessman has been convicted in federal court in Los Angeles of laundering $24 million through Santa Barbara-area banks for an organization prosecutors contended was run by a reputed Orange County drug kingpin.

U.S. District Judge A. Andrew Hauk said he found Stefan von Metzger’s explanation for the source of the money “poppycock” after the 65-year-old Santa Barbara businessman was found guilty on 36 counts.

The defense had contended that the money in question came from a plastics manufacturing business owned by von Metzger’s brother-in-law in Venezuela and brought into the United States legally to purchase supplies.

“I’ve never seen such a bunch of baldfaced lies,” Hauk said. “It’s incredible. I feel sorry for Mr. von Metzger that he got mixed up in this thing.”

Sentencing was set for June 12. Von Metzger was allowed to remain free on $600,000 bail.

Assistant U.S. Atty. John Gordon contended that von Metzger laundered money for an organization run by suspected drug kingpin Jose Miller, formerly of Mission Viejo and now a fugitive. Convicted cocaine trafficker Carlos Ortiz testified during the trial that he delivered boxes of money to von Metzger on three occasions.