A Renton, Washington man has been sentenced to five years in prison for his involvement in drug trafficking and money laundering. Frank Lozano Graves, 57, was sentenced by U.S. District Judge Tana Lin in Seattle after being arrested in July 2023. His arrest followed an investigation into a drug distribution ring that included his son and daughter.
At the sentencing hearing, Judge Lin remarked on the impact of Graves' actions, stating, “You knew the havoc that drugs wreak and yet you endangered your family…. You modeled for your children that drug dealing was okay, and you got them involved in it.”
U.S. Attorney Tessa M. Gorman highlighted the role of IRS-Criminal Investigations (IRS-CI) in dismantling such operations: “IRS-Criminal Investigations is a key partner in our efforts to take the profit out of drug distribution.” She emphasized how IRS-CI agents trace financial transactions to seize assets bought with drug money.
Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office, commented on Graves' actions: “Mr. Graves enabled addiction in his own community for money.”
The investigation revealed communications between Graves and his incarcerated son as early as July 2022 about opioid dealings sourced from Las Vegas. After his son's release from prison, wiretapped calls captured their discussions about the conspiracy. Social media posts by Graves further evidenced his involvement.
Following Graves' arrest, IRS-CI agents traced approximately $800,000 in drug proceeds over three years funneled through a phony construction company set up by Graves and his son to launder funds. In his plea agreement, Graves admitted these funds were linked to drug trafficking activities.
As part of his sentence, Graves will forfeit a vehicle, jewelry, and more than $15,000 seized from his home.
Graves’ son, Frank Marquis Graves, also pleaded guilty to conspiracy to distribute controlled substances and assaulting another inmate at SeaTac's Federal Detention Center. He is scheduled for sentencing on April 16, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation aimed at dismantling high-level criminal organizations threatening the United States through coordinated law enforcement efforts.
The investigation involved collaboration between the Federal Bureau of Investigation (FBI), Seattle Police Department, and Internal Revenue Service Criminal Investigation (IRS-CI). The prosecution is led by Assistant United States Attorneys Stephen Hobbs and Michelle Jensen.