Curtis Malone would face five to 40 years in prison and a fine of $5 million to $25 million if found guilty of federal drug trafficking charges. (Larry Morris/The Washington Post)

D.C. Assault co-founder Curtis Malone, who was arrested earlier this month on federal drug-trafficking charges, could face additional charges as a result of a year-long Drug Enforcement Agency investigation.

At a hearing Wednesday morning in U.S. District Court, Assistant U.S. Attorney Stephen Gripkey told U.S. District Judge Ellen S. Huvelle that there is “one superceding indictment that will add additional counts” to Malone’s case. He did not specify when those charges would be filed.

Malone was indicted by a grand jury and denied bail last week for allegedly conspiring to distribute large amounts of cocaine and heroin with two others for at least three years.

Gripkey said in court Wednesday that law enforcement officials recovered one kilogram of cocaine packaged in green cellophane, a .40-caliber semiautomatic handgun and paraphernalia associated with the distribution of controlled substances during a search of the basement in Malone’s Upper Marlboro home on Aug. 9. There was also residue that tested positive for cocaine in a sink and a trash can at Malone’s residence.

Gripkey declined to discuss the case further following the hearing.

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 such as Jeff Green, Keith Bogans and Michael Beasley.

Malone’s grand jury indictment alleges he was involved in a drug trafficking scheme since at least August 2010 using aliases such as “White Boy” and “Daddy.” 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.

Malone pleaded not guilty to the charge in court last week. If convicted, he would face five to 40 years in prison and a fine of $5 million to $25 million.

Gripkey said in court Wednesday that after DEA agents made at least four controlled drug purchases with Micah Bidgell, a drug dealer allegedly associated with Malone, investigators put a wiretap on Malone’s telephone in November 2012.

Gripkey also said there is “months of videotape” from cameras mounted on street-side utility poles.

Prosecutors plan to file a complex-case motion to eliminate Malone’s right to a speedy trial because of the large amount of evidence it has gathered in the case.

Police arrested Malone on Aug. 9 after witnessing a alleged drug deal between Malone and Stephen Williams, who was taken into custody Wednesday, according to prosecutors. Bigdell remains at large, and there is a warrant out for his arrest.

Malone’s attorney, Robert Bonsib, said in court Wednesday that he filed a bail motion Sunday. He is hopeful Malone can return home to Upper Marlboro with court monitoring.

But Malone will remain in custody until at least Sept. 5, when he is scheduled to appear in U.S. District Court again.