Hutton Executive Accused of Laundering Drug Money
NEW YORK (AP) _ An executive of E.F. Hutton & Co. has been arrested at offices of the brokerage house and accused of helping to launder $450,000 for Florida marijuana and cocaine smugglers, the Internal Revenue Service said today.
The broker, Andy Yurowitz, 52, appeared before a U.S. magistrate Thursday and was freed on $100,000 bail and ordered to surrender his passport. His lawyer, Larry Silverman, said Yurowitz would plead innocent.
Yurowitz, a vice president and account executive, has been at E.F. Hutton since 1970.
An indictment returned in Orlando, Fla., last week alleged that Yurowitz concealed the origin of illegally obtained money by moving it through various banks, including North American Bank Ltd. in New York, in 1982. If convicted, he could get up to 10 years in prison and a $20,000 fine.
The indictment did not allege that E.F. Hutton was a conduit or had involvement in the laundering, said Steve Nelson, a spokesman for the brokerage house.
The government said the money came from Robert and Diane Castoro of Winter Springs, Fla., who have been charged with evading taxes from 1980 to 1983.
The Castoros were among several people named in an indictment, portions of which still are sealed, involving a drug ring that smuggled 360,000 pounds of marijuana and 440 pounds of cocaine from 1977 to 1984.
Mrs. Castoro is free on $50,000 bail; her husband and other suspects were being sought.
Another defendant, George William Baron III of Eustis, Fla., was being held without bail.
Florida authorities have seized assets of the Castoros that include a $500,000 riverfront home in Seminole County, two luxury sedans and 22 acres of land.