Kareem Burke entered the plea Thursday in federal court in Manhattan. Burke started the hip-hop label with Jay-Z and Damon Dash in the 1990s. The 38-year-old was arrested in October 2010 along with more than 50 other people in raids targeting a wholesale marijuana ring in New York and Florida.
Authorities seized nearly $2 million and more than 360 pounds of marijuana in the probe. The government said a raid on Burke’s residence in North Bergen, N.J., produced the remains of a marijuana growing operation and $15,000 in cash.
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Burke faces five to six years in prison at a May 18 sentencing.