SALEM – A Malden man who admitted that he had cocaine and marijuana inside his vehicle in Salem last year is expected to receive up to four years in state prison and has lost his driving privileges for five years.Kenneth L. Loftman, a 45-year-old shipper and receiver whose last known address is 50 Myrtle St., Apt. 3., in Malden, avoided a trial and pleaded guilty Wednesday morning in Salem Superior Court to a reduced charge of possession with the intent to distribute cocaine as well as possession of cocaine, a subsequent offense, and possession of marijuana before Judge David A. Lowy.Sentencing has been postponed until May 28. In the meantime, Loftman remains free on $2,000 cash bail. Loftman previously was convicted of distribution of cocaine in 1999 out of Lynn District Court.Loftman had been initially charged by an Essex County grand jury with trafficking over 14 grams of cocaine, but the charge was reduced to possession with intent to distribute cocaine.He is expected to receive a punishment of two and one-half to four years in state prison, as part of the plea concession reached by Assistant District Attorney Marsha H. Slingerland and defense lawyer Rebecca Whitehill.Following a month-long police investigation, Loftman was arrested shortly before 1 p.m., on Sept. 6, 2007 outside a home at 8 Arbella St., in Salem, where police believed he was staying at the time.Police searched the 1997 green Plymouth Breeze he was driving and found 13.61 grams of cocaine from inside a backpack in the trunk along with a scale and $2,198 in cash.Additional bags of cocaine were found in his pocket and two bags of marijuana in the vehicle.Authorities then searched the third-floor apartment on Arbella Street and found cutting agents and other drug-related items.Because of the drug convictions, Loftman will lose his driving license in Massachusetts for at least five years.