(WBIR) The case against of one of four people charged in a Cocke County drug and money laundering scheme is headed to a federal grand jury.

James Holt, a Newport police captain, was scheduled to appear in court Tuesday in Greeneville but waived his right to a preliminary hearing.

BACK STORY: Newport police captain charged in drug conspiracy in court

The court found probable cause to move his case forward, and now a federal grand jury will hear the charges.

Holt is accused of trading confiscated drugs in exchange for stolen property.

Officials also arrested Holt's wife, Kathy, who is Newport alderwoman. Kathy Holt's son, Kenny Myers, and Newport Police Captain Roger Lynn Shults are also facing charges.

Newport Police Chief Maurice Shults said the department suspended both Holt and Roger Lynn Shults without pay.