Zumbro Falls man pleads guilty to federal charges

Richard Allen Kay, 39, of Zumbro Falls, pleaded guilty Tuesday to transporting stolen gem stones, conspiring to distribute more than 1,000 kilograms of marijuana and eleven counts of money laundering, according to the United States Attorney’s Office.

Kay, who did business in Minnesota as Kay Diamonds, admitted in federal court that between 2001 and 2009 he transported stolen gem stones, conspiring with an unnamed employee of Sterling Jewelers Inc. in Ohio. Kay made about 10 trips between Minnesota and Ohio and transported between 50 and 100 stolen gems, according to the indictment.

He also admitted that between January of 1995 and March of 2011 he conspired with others to distribute “high-quality” marijuana, worth about $5,000 per pound. Four other men, all from Rochester, have already pleaded guilty for their parts in the conspiracy to distribute the marijuana.

The defendants face a potential maximum penalty of life in prison for the marijuana distribution charges. Kay also faces a maximum penalty of 10 years on each money laundering count and five years for transporting stolen property.

Hearings are not yet scheduled.

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