Michigan woman pleads guilty to money laundering

VALPARAISO, Ind. (AP) -- A Michigan woman arrested after northern Indiana police discovered $265,000 hidden in the trunk of her car has pleaded guilty to money laundering.

The Times of Munster reported that 26-year-old Katherine Collazo-Santiago of Grand Rapids recently entered the plea on a Class D felony reduced from Class C. A plea agreement calls for six months in jail, minus credit for time served when she is sentenced Jan. 12. The term also can be cut in half for good behavior.

Collazo-Santiago told Porter Circuit Judge Mary Harper she was aware the money had been generated through criminal activity. It was discovered in a hidden compartment in her car trunk during a traffic stop.

The Porter County prosecutor's office is suing for ownership of the money and her 2001 Hyundai Accent.

Published: Fri, Nov 18, 2011