HOUSTON, TX – A Texas man whose sentence was commuted by then-President Joe Biden earlier this year has been arrested on a federal warrant tied to an alleged drug money laundering scheme spanning Michigan and Texas. Lakento Brian Smith, 55, was taken into custody this week and faces a charge of conspiracy to launder monetary instruments to promote felony violations of the Controlled Substances Act, according to a criminal complaint unsealed Thursday.
Smith, a former Muskegon resident now living in Houston, previously served time for convictions including conspiracy to distribute cocaine and crack cocaine, intent to distribute cocaine, and being a felon in possession of firearms. He was sentenced to life in prison in 2006. That sentence was reduced to 30 years in 2019 under the First Step Act, before being commuted again in January, leaving him subject to eight years of supervised release.
Alleged cash pipeline tied to Michigan drug operation
The new federal charge centers on an alleged drug trafficking operation in Muskegon. According to the complaint, law enforcement began investigating in September after using a confidential source to inquire about cocaine prices and quantities from an unnamed co-defendant.
Surveillance later documented what investigators described as a suspected drug transaction involving a semi-truck and large duffel bags. Authorities allege the exchange involved bulk quantities of drugs traded for significant amounts of cash.
Federal agents say Smith’s role was to help move the proceeds out of Michigan. In a recorded phone call in March with an undercover DEA agent, Smith allegedly said he was based in Texas but that “everything I got going on” was in Michigan.
Undercover agents later arranged cash pickups in Muskegon, including one in March where a co-defendant allegedly delivered $80,000 in vacuum-sealed bundles inside a brown paper bag. A second exchange in April allegedly involved another $50,000. Authorities said a single dollar bill was included as a marker for identification during at least one of the transactions.
Recorded conversations detail alleged operation
In June, Smith allegedly met with an undercover agent outside his Houston residence, where investigators say he discussed the operation and his earnings. During that meeting, Smith allegedly described his associate in Michigan, saying, “He’s old school. He’s got my best interest. I know he really unconditionally loves me.”
Smith also allegedly discussed his preference for cocaine over other drugs. “It’s a party drug, the cocaine,” he said, according to the complaint. “I really…I want the cocaine more than I want the other s—.”
Prosecutors allege Smith conspired to transport at least $130,000 in drug proceeds and participated in a series of structured financial transactions involving a co-defendant and Smith’s wife to avoid federal reporting requirements.
Federal court records show the charge was filed in Michigan. Additional proceedings are expected as the case moves forward.
Lakento Smith arrest, Biden commutation case, Michigan drug laundering, Houston federal charges, DEA undercover operation
