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Informant: drug dealer stashed millions in basement

LYNNWOOD, Wash. — An accused drug dealer who hid his business in neighborhoods may have also been hiding $3 million in his basement.

"I had no idea I was living next to a million dollar drug dealer," said Debra Gatti, who lives across the street from James Painter’s former Lynnwood home.

According to court papers, Painter ran a multi-million dollar drug business from quiet family-friendly areas.

"It's actually pretty scary," said Gatti.

In January, Painter and his 28-year-old sister Krista were arrested and accused of selling drugs for a Mexican cartel.  Officers seized cash, cars and a house.

A newly released search warrant says officers first heard about Painter in 2011.  Another dealer who was arrested confessed he was buying $20,000 of heroin and meth from Painter every day.  Several witnesses said Painter buried cash and drugs in the backyard of homes in Lynnwood and Shoreline.  One informant said he saw “$3,000,000 in cash in the basement being packaged to be smuggled to Mexico.”

When asked "How big is this arrest?" An officer with the drug task force answered, "This is a big arrest."

Officers say Painter used a towing company as a front to launder money.

"There was I believe $250,000 in cash.  Another suspect had $150,000 in cash.  Another suspect had $60,000," said the officer.

Now, a financial officer is going after bank records to try to find the rest of it.

"I'm confident if there's more out there and she can find the trail, she'll find it."  He said.

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