Los Angeles Man Sentenced to over 4 Years in Prison for Money Laundering

SACRAMENTO, Calif. - Tracy Arnett, 40, of Los Angeles, was sentenced today by U.S. District Judge Dena Coggins to four years and three months in prison for conspiracy to commit money laundering, U.S. Attorney Eric Grant announced.

According to court documents, from May 2023 through March 2024, Arnett, Daniel Hooker, and two additional co-conspirators conducted more than 20 financial transactions that they believed involved laundering the proceeds of cocaine trafficking. Their belief as to the nature of the funds was based on representations of an individual working at the direction of law enforcement. On one occasion in October 2023, Arnett met the individual in a hotel parking lot in Rancho Cordova to obtain $100,000 in cash to launder. In total, Arnett and his co-conspirators received approximately $940,000 in purported drug trafficking proceeds. Of that amount, the conspirators laundered approximately $811,000.

Hooker, 37, of Studio City, California, pleaded guilty to money laundering conspiracy and was sentenced on April 18, 2025, to 27 months in prison.

IRS Criminal Investigation and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.