The co-owner of a Spokane nightclub is in jail, facing money- laundering charges and forfeiture of his $400,000 South Hill home as a task force investigates a large marijuana smuggling ring.

The operation is responsible for bringing "thousands of pounds" of potent "B.C. bud" marijuana from Canada to Spokane for distribution, authorities disclosed in U.S. District Court on Thursday.

Corey S. Leavell, 26, confessed to his involvement in the operation when he was arrested this month during a search of his home at 5420 S. Glendora Drive, task force agent Rodney Weekes testified at a detention hearing.

"The nature and circumstances of this case are that Mr. Leavell has been involved in a long-term drug conspiracy, involving thousands of pounds of marijuana," Assistant U.S. Attorney Joseph Harrington said in court.

The night before his arrest, Leavell proposed to his fiancee and she accepted, defense attorney Frank Cikutovich told the court. He urged the court to release Leavell on bond.

With his parents and fiancee in front-row seats, Leavell cried when U.S. Magistrate Judge Cynthia Imbrogno ordered him held in jail as a flight risk without bond.

Sworn documents used for the search of his home on April 16 are sealed from public inspection. A military-style AR-15 assault rifle was seized during the search, but authorities made no mention of finding any drugs.

Investigators are now using a grand jury in the probe of what they described in court as a significant marijuana-smuggling ring that has operated for some time.

Federal investigators wouldn't elaborate outside the courtroom.

Leavell, who has been in custody for a week, was indicted Tuesday on charges of conspiracy to distribute 1,000 kilograms or more of marijuana. If convicted, the charge carries a mandatory 10 years in prison.

He also was indicted by a grand jury on 12 counts of money laundering and a forfeiture count.

The dozen money-laundering counts allege Leavell made various bank deposits, totaling $2.3 million, between February 2001 and last September.

Harrington said in court that Leavell used other names in various financial transactions "so the money wouldn't be traced to him."

The indictment seeks forfeiture of $6million in cash, but doesn't specify if those funds have been located.

The indictment also seeks the forfeiture of Leavell's home, a $32,000 lot he owns in Spokane Valley and a $300,000 parcel of property in Spangle.

The federal prosecutor asked the magistrate to keep Leavell in jail, and she agreed to that request.

"The charges against Mr. Leavell are extremely serious," the magistrate said.

Cikutovich argued that Leavell isn't a flight risk and has no record of violence, only traffic-related charges.

Leavell is the co-owner of the Pub Club, a lounge located at 415 W. Sprague, Weekes testified at the detention hearing.

He and two business partners bought the nightclub for $200,000 last year by making a $70,000 down payment, Weekes testified. Leavell contributed $50,000 of the down payment, the agent said.

The two other owners of the business aren't charged in the indictment.

Leavell also has $75,000 in a Lloyd's Bank account in the United Kingdom and owns property in Mexico, Harrington told the court.

"He admitted he has money and assets outside the country," and holds citizenships in the United States and Canada, Harrington told the court.

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