laurence.hammack@roanoke.com 981-3239

Federal authorities are investigating a Roanoke car dealership suspected of concealing drug profits.

Jovan Manning, owner of Herbie's Car Sales & Care, was indicted last month on charges of possessing a kilogram of cocaine found in a hidden compartment in a car parked outside his Melrose Avenue business.

According to a search warrant recently unsealed in U.S. District Court in Roanoke, the investigation goes deeper: The purpose of Manning's business, the document states, is "to provide a legitimate front for the laundering of drug proceeds."

The warrant alleges that Manning started his business with the assistance of Bill Kennedy, owner of Herbie's Used Cars in Greensboro, N.C.

Federal authorities say luxury cars purchased from Kennedy's business were later found to be driven by suspected drug dealers in the Roanoke area. The cars were registered to other people, such as girlfriends of the dealers, according to a search warrant used to raid Manning's business in August. The warrant also claims that documents regarding the car sales were falsified.

Kennedy has gone to court to try to reclaim four cars that were seized as part of the investigation.

When speaking to a Drug Enforcement Administration agent earlier this year, Kennedy said he did not understand why he was being punished for selling cars to drug dealers, according to the warrant. Kennedy reportedly told the agent: "Dopers buy groceries with dope money, and [I] did not see any grocery stores being seized."

Reached at his dealership this week, Kennedy insisted he has done nothing wrong. He said authorities are retaliating against him because he went to federal court in Roanoke in an effort to get his cars back.

As the primary lien holder, Kennedy said he has a financial interest in the seized cars but cannot repossess them.

Since Kennedy filed a petition to get his cars back, his own business in Greensboro has been raided. More cars were seized, and Kennedy's attempt to reclaim his property will probably move to North Carolina, said his attorney, Art Strickland.

Kennedy denied allegations that he helped Manning set up shop in Roanoke to launder drug proceeds.

"I have absolutely nothing at all to do with that business," Kennedy said.

Kennedy said he did sell Manning two or three used cars. But he said he had no idea that Manning would start a business in Roanoke with nearly the same name as his in Greensboro. "Why in the world he did that I'll never know," Kennedy said.

Manning runs a small car cleaning business with limited sales and service, his attorney said. According to the search warrant, federal authorities seized ledger books and paperwork from the business in August.

Assistant U.S. Attorney Don Wolthuis declined to comment on the case.

At an arraignment Wednesday, Manning pleaded not guilty to possession of cocaine with intent to distribute - the only charge he faces at this point. His attorney, David Damico, said that while Manning has had some business dealings with Kennedy, he denies the allegations made in the search warrant.

"I don't know where they came up with the laundering claims as they relate to my client," Damico said.