BOSTON, May 22, 2018—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.

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All defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.