Chief Terence M. Delehanty
3 Metcalf Square
Winthrop, MA 02152
For Immediate Release
Tuesday, May 22, 2018
Media Contact: John Guilfoil
Email: [email protected]
Statement of Chief Terence M. Delehanty on Multi-Jurisdictional Drug Trafficking and Money Laundering Case
WINTHROP — The following is a statement from Chief Terence M. Delehanty on the indictment of a Winthrop man on drug trafficking and money laundering charges:
“This case is the result of the dedicated work of our Winthrop Police officers, as well as the invaluable support of the Revere Police Department and the Suffolk County District Attorney’s Office,” Chief Delehanty said.
“I am proud of the work done by everyone involved in this investigation, which resulted in the indictment of an individual who has allegedly trafficked significant amounts of deadly drugs in our area,” Chief Delehanty added.
The following is a release from District Attorney Daniel F. Conley’s office:
Alleged Million-Dollar Drug Trafficker Indicted for Money Laundering
BOSTON — A Winthrop man who had more than $1 million in cash and bank accounts when he was arrested earlier this year faces arraignment tomorrow following his indictment for money laundering and drug trafficking, District Attorney Daniel F. Conley said.
The Suffolk County Grand Jury on April 25 returned indictments charging PETER DEGAN, 61, with two counts of trafficking in cocaine, seven counts of distribution of cocaine, and single counts of perjury and money laundering. Degan, who has been held on $3 million cash bail since his arraignment in Chelsea District Court, is scheduled to appear on those charges tomorrow in Suffolk Superior Court.
Revere Police detectives arrested Degan on earlier this year following a lengthy investigation and a series of undercover purchases between December and February.
On Feb. 7, after selling a cumulative total of $650 worth of substances that tested positive for cocaine to an undercover officer, Degan was placed under arrest. At the time of his arrest, he allegedly had about 35 grams of cocaine on his person and in his car.
When Revere and Winthrop police executed a search warrant at Degan’s Pond Street home, they found more than four and a half pounds of cocaine in a cooler hidden inside a closet. They found evidence of distribution, including a ledger, a scale, weights and measures, and two empty bottles of inositol powder, which is used as a cutting agent.
Police also recovered more than $738,000 in cash from three safes and a desk inside Degan’s home. More than $310,000 was seized from two bank accounts in his name.
The accounts showed once- or twice-monthly cash deposits of $2,000 or $3,000 – well below the $10,000 deposit amount that banks would report to the federal government. Intentionally evading this requirement or controlling transactions of cash and assets known to come from criminal activity both fall within the Massachusetts money laundering statute.
Degan has no apparent source of legitimate income and declared himself “retired” at booking. On court indigency paperwork, he swore under the penalties of perjury that he had no liquid assets.
Assistant District Attorney Ian Leson of the DA’s Narcotics Unit led the grand jury investigation that resulted in Degan’s indictment. Degan is represented by attorney Ryan Sullivan.