Posted on: Saturday, October 20, 2001

Ex-credit counselor pleads guilty to money laundering

Advertiser Staff

The former head of a Honolulu credit counseling company faces up to 20 years in federal prison and a $500,000 fine after pleading guilty in federal court yesterday to conspiracy to launder money.

Michael C. Haxton acknowledged that he converted smaller bills into larger denominations on at least nine occasions to make it easier for a ring of men importing heroin to Hawai'i to transport the money between Hawai'i and the Mainland.

Investigators believe the ring was selling about $10,000 of heroin in Hawai'i at its peak.

Haxton and his wife, Yvonne Haxton, formerly owned Hawai'i Credit Counseling of Honolulu.

Yvonne Haxton pleaded guilty to a charge of money laundering in July and is to be sentenced next month. Michael Haxton's sentencing has been set for March.