If convicted, Curtis Malone would face a prison sentence of five to 40 years and a fine of $5 million to $25 million. (Larry Morris/The Washington Post)

D.C. Assault founder and president Curtis Malone was indicted by a grand jury on drug trafficking charges and denied bail in a U.S. District Court on Wednesday.

The federal indictment alleges that Malone, a youth basketball power broker, conspired to distribute large amounts of cocaine and heroin with two others for at least three years using aliases such as “White Boy” and “Daddy.”

If convicted, Malone would face a prison sentence of five to 40 years and a fine of $5 million to $25 million. Malone pleaded not guilty to the charge and will have another hearing in court Aug. 21, according to his attorney, Robert Bonsib.

“Our first interest is trying to get Mr. Malone released so he can be back with his family,” Bonsib said in a telephone interview. “The test is whether if released he would represent a risk of flight or a danger of being involved in ongoing criminal activity and I think the answer to both of those is, ‘No.’ Obviously we could not convince the judge of that today.”

Wednesday’s grand jury indictment alleges Malone was involved in a drug trafficking scheme since at least August 2010. He has been charged with conspiracy to possess with the intent to distribute 100 grams or more of heroin and 500 grams or more of cocaine.

Police arrested Malone on Friday as part of a year-long Drug Enforcement Administration investigation and recovered approximately one kilogram of cocaine and 100 grams of heroin, one .40-caliber semiautomatic handgun as well as assorted paraphernalia associated with the distribution of controlled substances in a search of his Upper Marlboro home.

Malone, 45, founded D.C. Assault in 1993 along with Troy Weaver, currently the vice president and assistant general manager of the Oklahoma City Thunder. The organization became one of the nation’s most prominent youth basketball programs, producing NBA players like Jeff Green, Keith Bogans and Michael Beasley.

In a statement Monday, D.C. Assault said Malone would no longer be a part of the organization going forward and that he had not been involved in the program’s day-to-day operations in recent years.

Under Armour said in a statement Tuesday it was still gathering facts and details from the case as it determines whether to continue sponsoring D.C. Assault.