Justice Department investigators said that the banks appeared to be largely unaware that the accounts were being used to launder drug proceeds.

The funds were seized in March 1995 after the Government ruled that they were probably drug proceeds.

He said the reward would come from a forfeiture fund of drug proceeds.

The federal lawsuit accused the company of being involved in cigarette smuggling and in the laundering of drug proceeds.

Horse racing is a "perfect vehicle" to laundering money from drug proceeds and hiding it from the authorities.

The funds were seized after the Government ruled they were probably drug proceeds.

Prosecutors said that drugs were seized but that the officers and others split more than $1,000 in drug proceeds.

They were acting under a Federal law that allows the confiscation of property allegedly used in drug dealing or bought with drug proceeds.

The two men are charged with 10 criminal counts each, including hiding the origin of $8.9 million in drug proceeds.

Mr. Fisher said illegal drug proceeds, which he did not say his client had received, should be used to educate people about the dangers of narcotics.