GREENEVILLE, Tn. -- William H. McMahan, Jr., 41, of Newport, Tennessee, pleaded guilty today in the U.S. District Court for the Eastern District of Tennessee at Greeneville to conspiracy to distribute and possession with the intent to distribute 1,000 kilograms or more of marijuana; conspiracy to distribute and possession with the intent to distribute five kilograms of cocaine; conspiracy to distribute and possession with the intent to distribute oxycodone; and conspiracy to conduct and to attempt to conduct a financial transaction affecting interstate commerce and foreign commerce involving the proceeds of an illegal activity with the intent to promote that illegal activity. Sentencing has been set for August 20, 2012 at 9:00 a.m. in U.S. District Court in Greeneville.

McMahan faces a mandatory minimum term of 10 years to life in prison, fines up to $10,000,000, and a mandatory minimum term of five years to life of supervised release.

During the course of the eight-year conspiracy, McMahan obtained bulk quantities of marijuana from numerous sources, which he then further distributed to numerous individuals in the Eastern District of Tennessee and elsewhere. He also received kilogram quantities of cocaine from several sources, which he distributed to numerous individuals. McMahan supplied money to co-defendants and co-conspirators to fund trips to Florida pain clinics during which time the co-defendants and co-conspirators obtained prescriptions for oxycodone, which was then distributed by McMahan and others. Further, McMahan engaged in financial transactions involving the proceeds of the illegal distribution of cocaine and marijuana, which transactions involved both bulk currency and the transfer of personal property.

In September 2011, a 45-count indictment, which included the aforementioned charges, was returned against McMahan by a federal grand jury sitting in Greeneville, Tennessee.