Louisville man sentenced in money laundering conspiracy after major drug bust

LOUISVILLE, Ky. (WDRB) — A Louisville man learned his sentence last week in a money laundering conspiracy after a major drug bust.

Joseph E. Lanham was federally indicted in 2024, along with two others, for allegedly trying to launder money from his drug trafficking operation through real estate deals and other large transactions in an effort to hide drug proceeds.

The IRS Criminal Investigations' case found the drug trafficking happened between April 2016 and May 2023.

Lanham and his mother, Laura Lanham, and Richard "Ricky" Elble II were charged with conspiracy to launder money, money laundering, obstruction of government proceedings and falsifying documents related to a federal investigation.

Additionally, Joseph E. Lanham was charged with four counts of money laundering for conducting transactions over $10,000 with criminal proceeds, one count of obstruction of government proceedings, and one count of falsifying documents related to a federal investigation.

Investigators said Joseph E. Lanham conspired with others to hide his drug proceeds by purchasing more than 20 houses, vehicles and a luxury speedboat with money from drug trafficking.

"Whenever you receive proceeds, at that point, they are dirty," said Kyle Brice, Assistant Special Agent in Charge with IRS Criminal Investigation. "You can't, it wouldn't be wise to just start spending it, so you have to make it look clean, so you go through the process. It's money laundering."

The indictments came nearly two years after police in Jeffersontown arrested Joseph E. Lanham and his son, Joseph M. Lanham, after a raid at their home on Pine Lake Drive. That's not far from the AMC Stonybrook 20 theater at the corner of South Hurstbourne Parkway and Stony Brook Drive.

In previous WDRB reporting, Jeffersontown Detective Mike Lauder said investigators were working on the case for more than a year before raiding the home.

During a search of the Jeffersontown home and several other locations, police seized hundreds of thousands of dollars, 20 pounds of marijuana, several guns, ledgers and a money counter. Court documents at the time said Joseph E. Lanham bought several homes using the proceeds from the sale of marijuana.

Detectives also found high-end, name brand luxury items, jewelry, handbags, belts and clothing.

Det. Matt Pribble, who investigated the case, said they also found two stolen vehicles Joseph E. Lanham had revinned with falsified titles. Pribble said the marijuana was brought in from California on the black market.

Joseph E. Lanham was sentenced last week to eight years in prison. He originally faced a maximum sentence of 85 years in prison if convicted. Joseph M. Lanham's charges were dismissed.

There is no parole in the federal system.

Laura Lanham, who is scheduled for a federal trial next month, faces a maximum sentence of 30 years in prison. Elble, whose case is still pending, faces a maximum sentence of 20 years in prison.

You can look at some of the items seized through the investigation in the gallery below: