Examples of Narcotics-Related Investigations - Fiscal Year 2011

The following examples of narcotics-related investigations are written from public record documents on file in the court records in the judicial district in which the cases were prosecuted.

Iowa Man Sentenced for Selling Crack and Powder Cocaine

On September 20, 2011, in Cedar Rapids, Iowa, Milo Davis was sentenced to 360 months in prison and ten years of supervised release.  Milo was convicted by a trial jury in May 2011 of conspiracy to distribute crack and powder cocaine and money laundering. The evidence at trial showed that between 1997 and 2006, Davis, formerly the owner of Headquarterz Barbershop in Cedar Rapids, agreed with others to distribute crack and powder cocaine. Davis was convicted of agreeing to distribute 50 grams or more of crack cocaine and 500 grams or more of powder cocaine. Davis was also convicted of concealing earnings from his drug trafficking by putting money into others’ bank accounts and using the money to purchase a car in another’s name.

Georgia Man Sentenced on Drug and Money Laundering Charges

On September 15, 2011, in Atlanta, Ga., Ismael Estrada was sentenced to 360 months in prison and 10 years of supervised release for his part in a conspiracy to distribute cocaine and marijuana and 13 counts of money laundering. Estrada was also ordered to pay a special assessment of $1,400 and a $25,000 fine. According to the criminal indictment and other information presented in court, beginning in or about 2004, and continuing until on or about April 2006, Estrada would negotiate with others to purchase multiple kilograms of cocaine for distribution. Further, it was part of the conspiracy that Estrada and others would distribute and assist in the distribution of kilogram quantities of cocaine to various buyers in Atlanta, Georgia and elsewhere.  Estrada and his conspirators generated large sums of cash relating to their distribution of narcotics. During this same period, a co-conspirator wrote $1.1 million in checks payable to Estrada, Estrada’s businesses and even Estrada’s 15-year-old daughter.

California Man Sentenced on Drug and Money Laundering Charges

On September 7, 2011, in Sacramento, Calif., Miguel Vasquez, formerly of Cameron Park, was sentenced to 174 months in prison for conspiring to distribute methamphetamine and for money laundering.  According to court documents, Vasquez was a major source of supply of methamphetamine in the Sacramento area and to persons shipping and selling significant quantities of methamphetamine to the Midwest and Hawaii. On April 24, 2008, agents searched a car registered to Vasquez and found 3½ pounds of crystal methamphetamine. In a search of Vasquez's house, agents found $118,000 in a metal safe and three firearms (including an assault rifle). In total, Vasquez forfeited a total of more than $700,000, mostly in the form of seized bank accounts, two parcels of land, and two vehicles. Vasquez is the latest defendant sentenced in this case.  Sixteen defendants have already been sentenced between October 2008 and December 2009 to terms of between 144 months and 36 months in prison. 

North Dakota Man Sentenced for Role in Drug Trafficking and Money Laundering Operation

On September 6, 2011, in Fargo, N.D., Victor Espinoza, of Piru, California, was sentenced to 222 months in prison for his role in a large-scale drug trafficking and money laundering conspiracy that was the subject of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation titled “Operation Budapest.” During the course of the conspiracy, the targeted drug trafficking organization transported over 50 pounds of methamphetamine from California to North Dakota, Minnesota and Nebraska. Cocaine and marijuana were also distributed as part of the conspiracy. According to court documents, Espinoza was indicted in September 2010 and pleaded guilty to drug trafficking and money laundering charges in March 2011. To date, 26 defendants that have been sentenced in Operation Budapest on various offenses, including drug conspiracy, firearms charges, and money laundering. Assets seized during the investigation included a residence in Avoca, Minnesota, a residence in Worthington, a 2001 Mercedes Benz, a 2000 Cadillac STS and approximately $22,000 in cash.

Texas Man Sentenced For Drug Crimes

On August 31, 2011, in Tyler, Texas, Hector Nieto, of Mt. Pleasant, Texas, was sentenced to 135 months in prison and ordered to forfeit ownership of commercial property in Mt. Pleasant valued at $93,000, a 2005 GMC pickup truck and $21,473 in U.S. currency. Nieto pleaded guilty on November 2, 2010, to conspiracy to possess with intent to distribute cocaine and money laundering.  According to information presented in court, in July 2009, Nieto knowingly delivered approximately three kilograms of cocaine to others with instructions to transport the cocaine to Chicago, Illinois, for sale and distribution. He further acknowledged using $49,000 in cash that was part of the proceeds of the drug conspiracy to pay for the construction of a swimming pool at his residence.

Maryland Woman Sentenced for Laundering Over $400,000 in Drug Proceeds

On August 26, 2011, in Baltimore, Md., Joy Edison, of Elkton, Maryland, was sentenced to 70 months in prison, followed by two years of supervised release for conspiring to launder over $400,000 in drug proceeds. Edison was also ordered to forfeit her interest in eight properties purchased with drug proceeds, her interest in JJM Realty and J. Edison Properties (front companies formed by Edison and her co-conspirators through which many of the properties were purchased) and any other property purchased with the drug trafficking proceeds. According to Edison’s plea agreement, from December 2003 to August 2010, Edison and her co-conspirators conducted financial transactions to conceal over $400,000 generated from the sale of heroin in Baltimore City. Edison and her co-conspirators used the cash proceeds of drug sales to: gamble at Las Vegas casinos, for which the “cash-outs” exceeded $184,000; purchase “winning” Maryland lottery tickets in amounts exceeding $138,000 in order to disguise drug proceeds as legitimate lottery winnings; deposit over $79,000 in cash into Edison’s bank accounts during 2007 and 2008; give hundreds of thousands of dollars in cash to individuals operating a used car businesses; and buy a residence for Edison in Elkton and at least seven properties in Baltimore. In addition, according to court documents, while Edison was maintaining a lavish lifestyle using drug proceeds, she submitted fraudulent applications to the Maryland Department of Human Services for community medical assistance, food stamps and the child care subsidy program.

Defendant in Texas Drug Conspiracy is Sentenced to Prison

On August 17, 2011, in Waco, Texas, Blas Stephen Marquez was sentenced to 168 months in prison, five years of supervised release, and ordered to pay a $2000 fine. Marquez pleaded guilty in March 2011 to conspiracy to distribute methamphetamine and cocaine and conspiracy to commit money laundering. According to the Factual Basis, from at least January 2005, Marquez and others, including his father, engaged in a conspiracy to distribute methamphetamine and cocaine. The money that was collected from this illegal distribution of drugs was laundered to make it appear to be from legitimate sources.  Marquez and others knew that the bulk currency that was being generated and collected was used to further the on-going illegal activity by acquiring more controlled substances for distribution. The currency was also used to purchase assets, some of which were used to further the on-going illegal activity. Some assets were placed in nominee names and businesses in order conceal their true ownership and control.

Leader of Drug Conspiracy Sentenced to 30 Years in Prison

On August 17, 2011, in Covington, Ky., Jay A. Shephard, of Ohio, was sentenced to 360 months in prison followed by six years of supervised release for conspiracy to distribute controlled substances and money laundering.  Shephard, who owned residences in Dayton, Ohio, and Detroit, Michigan, led a drug conspiracy that was responsible for the distribution of at least 40,000 prescription pills in parts of Eastern Kentucky.  In addition to the prison sentence, Shephard was ordered to forfeit five pieces of real estate located in Dayton, pay a money judgment of $225,000, and forfeit approximately $83,000 in cash that represented proceeds from the conspiracy. According to evidence at his trial, from May 2006 until May 2009, Shephard directed others to distribute thousands of Oxycodone tablets. Shephard was the last of 21 individuals involved in a large drug ring to be convicted.

International Narcotics Trafficker and Money Launderer Sentenced to 20 Years in Prison

On August 12, 2011, in Manhattan, N.Y., Hector Dominguez-Gabriel, an international narcotics trafficker and money launderer based in Mexico, was sentenced to 240 months in prison, followed by five years supervised release and ordered to pay a $300 special assessment as a result of his conviction in December 2010 on narcotics importation and money laundering charges.  Forfeiture, to be paid to the United States, will be determined at a later date.  According to court documents, evidence presented at trial, and statements made at the sentencing, from 2006 to June 2009, Dominguez-Gabriel orchestrated an extensive narcotics-trafficking and money laundering organization that imported and distributed hundreds of kilograms of cocaine into the United States and then laundered millions of dollars of narcotics proceeds back into Mexico where his company was based. Working from Mexico, Dominguez-Gabriel sent at least 300 kilograms of cocaine into the United States using a variety of means, including secreting it aboard cruise ships and in hidden compartments of vehicles, as well as hiding it within flower shipments. Additionally, Dominguez-Gabriel directed his associates to pick up millions of dollars of narcotics proceeds in locations throughout the United States, including Atlanta, Georgia, Winston-Salem, North Carolina, and New York City, and then make small, structured deposits into U.S. bank accounts. This was done to evade the Internal Revenue Service’s reporting requirements and thereby launder the drug proceeds back to Mexico. In February 2007, Dominguez-Gabriel even attempted to bribe a federal agent after an associate, who picked up $1.5 million in cash, was arrested in New York City.      

Nebraska Woman Sentenced to Prison

On July 28, 2011, in Omaha, Neb., Deshawn Hernandez, of Omaha, was sentenced to 170 months in prison and five years of supervised release for her involvement in marijuana trafficking and money laundering activities that extended from Omaha to Arizona.  Hernandez also waived any interest she had in nine pieces of real property and over $100,000 in cash seized by law enforcement. Hernandez was one of 11 people indicted with Shannon Williams in December 2009. Hernandez recruited drivers for his marijuana business while he was incarcerated in the Douglas County jail. She also stored marijuana for him and used the proceeds from the drug trafficking to purchase real estate and other items of value.  The case involved the distribution of over 15,000 pounds of marijuana valued at $1,500,000 to $3,000,000.  A jury convicted Hernandez, Sara Jarrett and Shannon Williams on April 28, 2011. Jarrett was previously sentenced to 120 months in prison and Williams awaits sentencing.

Members of Texas Drug Ring Sentenced to Prison

On July 19 and 20, 2011, in Waco, Texas, 11 defendants in a drug distribution ring were sentenced to prison for conspiracy to distribute at least 1,000 kilograms of marijuana and money laundering.  According to the factual basis, David Escobar, Juan Reynaldo Escobar-Sanchez, Ruben Jason Rodriguez, Fabian Artemio Montemayor, James Cornelius, Jr., Josie Jessica Jejia, Priscilla Ann Cadena, Cedric Dwayne Stephens, Edward Lee Curtis, and Albert Janes Hoston and others acquired, transported and distributed controlled substances in Western Texas and elsewhere. Currency was collected from the sale of the controlled substances and was then used to further ongoing illegal activity and to purchase assets. The Escobar organization began to obtain marijuana in at least 2002. The members of the organization would wrap the marijuana at various stash houses and take it to a warehouse or semi trucks for transportation.  In 2004, police raided warehouses on Tesoro Lane in Laredo and seized approximately 8,200 to 8,400 pounds of marijuana.  Beginning in at least February 2004, members of the Escobar organization began to acquire large quantities of cocaine from sources in Mexico. The cocaine was imported into the United States and transported to Central and North Texas and elsewhere. The defendants were sentenced as follows:

• David Escobar - 121 months in prison and five years of supervised release
• Juan Reynaldo Escobar-Sanchez - 46 months in prison and five years of supervised release
• Ruben Jason Rodriguez - 121 months in prison and five years of supervised release
• Jesus Eduardo Jaramillo - 120 months in prison and three years of supervised release
• Fabian Artemio Montemayor - 120 months in prison and five years of supervised release
• James Cornelius, Jr. - 151 months in prison and five years of supervised release
• Josie Jessica Mejia - 36 months in prison and three years of supervised release
  Priscilla Ann Cadena - 120 months in prison and five years of supervised release
• Cedric Dwayne Stephens - 120 months in prison and five years of supervised release
• Edward Lee Curtis - 120 months in prison and five years of supervised release
• Albert James Holston - 262 months in prison and five years of supervised release

Nebraska Woman Sentenced on Drug and Money Laundering Charges

On July 12, 2011, in Omaha, Neb., Sara Jarrett was sentenced to 120 months in prison and five years of supervised release for her involvement in marijuana trafficking and money laundering activities that stretched from Omaha to Arizona. Jarrett was one of eleven people indicted with Shannon Williams in December 2009.  According to court documents, Jarrett was one of Williams’ drivers who helped him run his marijuana business while he was incarcerated in the Douglas County jail.  From June 2008 through January 2009, on at least 19 occasions, Jarrett drove money from Omaha and dropped it off to other drivers in Denver or drove it herself to Williams in Arizona.  The money was proceeds from marijuana trafficking.  It is believed throughout the conspiracy Jarrett transported between $1,900,000 and $3,253,161.  Williams and co-defendant Deshawn Hernandez await sentencing.

Arizona Man Sentenced for Heroin Trafficking and Money Laundering

On July 6, 2011, in Oklahoma City, Okla., Jesus Morales-Medel, from Phoenix, Arizona, was sentenced to 210 months in prison for conspiracy to possess heroin with intent to distribute and conspiracy to launder drug money.  Morales-Medel was indicted along with six other defendants on November 16, 2010.  He pleaded guilty on January 10, 2011.  According to court records, from June 2008 through September 2010, Morales-Medel and others were responsible for trafficking over 22 kilograms of Mexican black tar heroin into the Oklahoma City area via Phoenix, Arizona.  The proceeds from the sale of the heroin were redirected from bank accounts controlled by Morales-Medel to others in multiple locations in the United States and Mexico.

Kansas Auto Dealer Sentenced for Illegal Deals with Drug Traffickers

On June 30, 2011, in Kansas City, Kan., Jon Lenie, of Overland Park, Kansas, was sentenced to 30 months in prison for helping drug dealers buy vehicles used for drug trafficking. Lenie pleaded guilty to one count of conspiracy to engage in money laundering. In his plea, Lenie admitted that at Shawnee Auto Sales in Shawnee, Kansas, he sold vehicles to drug traffickers for cash and made false reports to the state and the Internal Revenue Service on the transactions. According to information in court documents, Lenie engaged in multiple transactions with traffickers in which he accepted cash for cars and filed false paperwork. In one instance in September 2008, Lenie sold a 2004 Escalade for $16,500 in cash. The cash was wrapped in tape and Lenie counted it in the office of Shawnee Auto Sales. Lenie had the paperwork drawn up to reflect a purchase price of less than $9,000. By doing so, he kept the transaction below the threshold for filing a federal Form 8300 to report the transaction to the IRS. 

Colorado Drug Dealer Sentenced on Drug and Money Laundering Charges

On June 17, 2011, in Denver, Colo., Tyrone Brooks Williams, aka Mike Williams, of Seattle, Washington, was sentenced to 86 months in prison and three years of supervised release.  Williams pleaded guilty on April 25, 2011 to four counts of  possession with intent to distribute and distribution of Ecstasy and N-Benzylpiperazine (BZP) and four counts of money laundering.  According to court documents, from on or about May 18, 2009, through on or about August of 2009, a drug dealer in Denver made between 10 and 13 purchases of Ecstasy pills from Tyrone Williams. The dealer made cash deposits totaling $47,350 into Williams’ bank account as payments for the Ecstasy pills.  From on or about May 18, 2009, through November 7, 2009, Williams made cash withdrawals totaling $42,750 from the same bank account, which were the drug proceeds.  In addition, on or about January 20, 2010, an undercover government agent arranged the purchase of 2,000 Ecstasy pills from Williams.  Williams requested that the payment for the pills, totaling $4,900, be deposited into the bank account of Williams’ girlfriend.  On or about April 6, 2010, Williams again requested that the payment, totaling $3,600, for the purchase of Ecstasy pills be deposited into his girlfriend's bank account. 

Texas Man Sentenced for Role in Marijuana Trafficking Conspiracy

On June 17, 2011, in Dallas, Texas, Tommy Don Crutcher, of Lewisville, was sentenced to 24 months in prison for his role in a marijuana distribution conspiracy.  Crutcher pleaded guilty in April 2011 to one count of conspiracy to distribute 100 kilograms or more of marijuana and one count of money laundering. Two of Crutcher’s co-defendants have also pleaded guilty and been sentenced.  Lead defendant, John Patrick Newton, of Los Angeles, California, was sentenced in January 2011 to 292 months in federal prison.  Scott Matthew Kirk, of Omaha, Nebraska, is presently serving a 12-month and one day sentence.  Kirk pleaded guilty to one count of conspiracy to distribute 100 kilograms or more of marijuana and one count of conspiracy to commit money laundering.  Another co-defendant, Kurt Vollers, of Dallas, Texas, a former Dallas Cowboys football player, pleaded guilty in April 2010 to one count of conspiracy to distribute 100 kilograms or more of marijuana and is scheduled to be sentenced later this year.  From February 2008 through May 2008, Newton, Crutcher and Kirk conspired to commit money laundering by conducting financial transactions involving the proceeds of their unlawful activity, designed to conceal and disguise the nature, location, source, ownership and control of those proceeds. 

Co-Conspirator Sentenced in North Carolina Marijuana Growing Operation

On June 8, 2011, in Raleigh, N.C., James Leevann Howard, aka Lee Howard, was sentenced to 48 months in prison, followed by five years supervised release. In August 2010, Howard pleaded guilty to conspiring to distribute and possess with the intent to distribute more than 100 kilograms of marijuana and conspiring to commit money laundering. In August 2009, search warrants were executed at two residences in Franklinton and Youngsville. Officers discovered a large indoor marijuana growing operation in the basement of the Franklinton residence.  At the Youngsville residence, which was owned by Howard and rented to co-conspirators, David and Whitney Clarke, officers seized 59 firearms, including a machine gun and $63,121 in United States currency. From 2002 until 2008, Howard received proceeds from the sale of the marijuana through regular cash payments by David Clarke. In addition to Howard, five others have been convicted and sentenced in this operation including David and Whitney Clarke.  David Clarke was sentenced to 84 months in prison and Whitney Clarke was sentenced to 48 months in prison. 

Former Federal Officer Sentenced for Smuggling Guns and Drug Money Through the Airport

On June 2, 2011, in Atlanta, Ga., Devon Samuels of Stockbridge, Georgia, was sentenced to 96 months in prison, followed by three years of supervised release. In March 2011, Samuels, a former U.S. Customs and Border Protection officer, pleaded guilty to conspiring to launder drug money and attempting to smuggle guns onto an airplane. The charges against Samuels were in connection to three undercover sting operations with smuggling drug money and guns through Atlanta's Hartsfield-Jackson International Airport.  During two of the undercover operations, Samuels accepted purported drug money, bypassed airport security and screening using his badge, and traveled outside of the U.S. to deliver the purported drug money to undercover police officers. During the third undercover operation, Samuels accepted and smuggled firearms and alleged drug money into the airport using his badge to bypass security. Once inside the airport, Samuels gave the firearms and money to an undercover officer who had told Samuels that she was going to transport the firearms and money to Arizona for a meeting with members of a Mexican drug cartel.

Texas Man Sentenced on Drug and Money Laundering Charges

On May 26, 2011, in Waco, Texas, Justin Trammel was sentenced to 135 months in prison and five years of supervised release on drug conspiracy and money laundering charges. According to the court documents, from at least January 2005, Trammel and others engaged in a conspiracy to distribute methamphetamine and cocaine. The money that was collected from this illegal distribution of drugs was laundered to make it appear to be from legitimate sources.  Trammel and others knew that the bulk currency that was being generated and collected was used to further the on-going illegal activity by acquiring more controlled substances for distribution.  The currency was also used to purchase assets, some of which were used to further the on-going illegal activity.  Some assets were placed in nominee names and businesses in order conceal their true ownership and control.

Oregon Man Sentenced in Marijuana and Money Laundering Case

On May 26, 2011, in Portland, Ore., Jason Joseph Kalenkowitz was sentenced to 51 months in prison on charges of conspiracy to manufacture and distribute marijuana and money laundering.  Kalenkowitz was also ordered to forfeit $104,842 in cash assets.  According to court documents, Kalenkowitz operated marijuana growing operations in three separate Portland houses which contained sophisticated growing equipment and over 800 marijuana plants.  Kalenkowitz admitted that he owned all of the growing operation properties, as well as his southwest Portland residence where $72,000 in cash was seized.

Second in Command of Texas Drug Trafficking Organization Sentenced on Drug and Money Laundering Charges

On May 24, 2011, in Laredo, Texas, Javier Hugo Perez, of Laredo, was sentenced to 230 months in prison, followed by five years of supervised release, and was fined $250,000. The judge also signed a final order of forfeiture divesting Perez of his ranch and $16 million. Perez, who pleaded guilty in July 2010, was part of a drug and money laundering conspiracy beginning as early as 2005 through the date of his arrest in December 2009.  At his re-arraignment hearing, Perez admitted that during the course of the conspiracy, he and other conspirators possessed with intent to distribute in excess of 10,000 kilograms of marijuana supported by drug ledgers found at Perez’s residence in Laredo in January 2009.  Agents also recovered drug ledgers of the Compean Drug Trafficking Organization (DTO) which detailed the distribution of marijuana loads in excess of 15,000 kilograms and payments for the loads in excess of $2.5 million.  Perez used his share of the drug proceeds to acquire vehicles, ranch property and to fund four bank accounts.  The funds in the bank accounts were to make car payments and purchase personal items and services with the intent to conceal and disguise the source, location and true ownership of the drug proceeds.

Michigan Drug Trafficker Sentenced to Prison; Forfeits Property Acquired Through Drug-Dealing Profits

On May 23, 2011, in Grand Rapids, Mich., Asante Parker, of Lansing, Michigan, was sentenced to 262 months in prison and five years of supervised release for conspiring to possess with the intent to distribute 1,000 kilograms or more of marijuana and conspiring to launder money. In addition, Parker was ordered to forfeit to the government a home in Munith, Michigan, a substantial amount of jewelry, and automobiles.  According to his guilty plea, Parker admitted possessing with intent to distribute and distributing more than 1,000 kilograms of marijuana over a two year period starting in 2008. He and others purchased the marijuana from an Arizona supplier and then re-sold it in West Michigan for substantial profit.  As part of his plea, Parker admitted to laundering his drug proceeds by soliciting others to take the cash to banks and convert it to cashiers’ checks, which he then used to purchase the home in Munith, all of which concealed and disguised the nature, the source, the ownership, and the control of the marijuana distribution proceeds. 

Texas Man Sentenced on Drug and Money Laundering Charges

On May 18, 2011, in Waco, Texas, Jose Marquez, of Duncanville, was sentenced to life in prison on drug conspiracy and money laundering charges. According to the Factual Basis, from at least January 2005, Marquez and others engaged in a conspiracy to distribute methamphetamine and cocaine. The money that was collected from this illegal distribution of drugs was laundered to make it appear to be from legitimate sources.  Marquez and others knew that the bulk currency that was being generated and collected was used to further the on-going illegal activity by acquiring more controlled substances for distribution.  The currency was also used to purchase assets, some of which were used to further the on-going illegal activity.  Some assets were placed in nominee names and businesses in order conceal their true ownership and control. 

Ringleader in Southern Maryland Cocaine Conspiracy Sentenced

On May 4, 2011, in Greenbelt, Md., Rodney Matthew Estep, aka “Barney Fife,” of Mechanicsville, was sentenced to 168 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, and fifty grams, or more, of crack cocaine; money laundering; and conducting an illegal gambling business.  According to his guilty plea, Estep received kilogram quantities of cocaine from sources in Maryland, Georgia, and elsewhere.  In addition, Estep conducted financial transactions to conceal the source, ownership, and control of between $400,000 and $1 million in proceeds from the narcotics distribution conspiracy. These financial transactions included depositing checks and cash into personal and business accounts that Estep controlled and using those funds to purchase a truck, which was used to deliver cocaine to a source, a custom motorcycle, and a bar/restaurant, among other things. Estep and others also conducted an illegal gambling operation, which included games of dice.  To date, 14 of 15 defendants charged in this conspiracy have pleaded guilty to their participation in the drug and gambling operations.

Leader of Marijuana and Cocaine Trafficking Organization Sentenced to 15 Years 

On April 21, 2011, in Columbus, Ohio, Adam Jerome Kennedy was sentenced to 180 months in prison, followed by five years of supervised release for his role in distributing marijuana in central Ohio between 2000 and 2009.  Kennedy pleaded guilty on September 2, 2010, to one count each of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, conspiracy to distribute and possess with intent to distribute 1000 kilograms or more of marijuana, possession of a firearm by a convicted felon, and conspiracy to commit money laundering.  Kennedy is the third person sentenced as part of the investigation into the organization, Juan Luis Perez-Valtierra was sentenced on April 13, 2011, to 120 months in prison and John Darling was sentenced to three years probation including one year of home confinement.

Two Alaskans Sentenced on Money Laundering Charges

On April 15, 2011, in Anchorage, Alaska, Justin M. Standefer was sentenced to 18 months in prison, to be followed by three years of supervised release, and ordered to pay a $100 special assessment.  Lucas Allen Deweese was sentenced to 12 months and a day in prison, to be followed by two years of supervised release, and ordered to pay a $100 special assessment.  According to court documents, Standefer and Deweese pleaded guilty in June 2010 to conspiracy to launder the proceeds of the unlawful distribution of controlled substances.  Between December 26, 2008, and April 27, 2009, Standefer either wire transferred or deposited approximately $46,361 representing the proceeds of the unlawful distribution of Oxycontin.  Between January 27, 2009, and April 27, 2009, Deweese either wire transferred or deposited approximately $10,200 representing the proceeds of the unlawful distribution of Oxycontin.

Leaders of a Marijuana Conspiracy Ring Sentenced on Money Laundering and Drug Charges

On April 12, 2011, in Cleveland, Ohio, Kevin L. Locastro, of Strongsville, was sentenced to 135 months in prison, followed by five years of supervised release; Francisco M. Felix, of Tucson, Arizona, was sentenced to 96 months in prison, followed by five years of supervised release, and ordered to forfeit $40,100; and Jesus A. Tavizon, of Phoenix, was sentenced to 87 months in prison, followed by five years of supervised release, and ordered to forfeit $40,100.  All three were found guilty of conspiracy to possess with the intent to distribute and distribution of greater than 100 kilograms of marijuana, and money laundering.  Locastro and others arranged for large quantities of marijuana to be brought to Ohio from Arizona on a monthly basis. Locastro then distributed the drugs to other co-conspirators and they in turn, would re-distribute the marijuana.  Locastro also orchestrated deposits, at the direction of Felix and Tavizon, of the proceeds of the drug operation into bank accounts in Ohio, and Felix and Tavizon withdrew the proceeds in Arizona. This was done to avoid currency transaction reporting requirements under both state and federal laws. 

Miami-Dade Mortgage Broker Sentenced for Obtaining Fraudulent Mortgages on Houses Purchased in Palm Beach and St. Lucie Counties

On March 29, 2011, in Miami, Fla., Hugo Oliva was sentenced to 87 months in prison, followed by five years of supervised release, and ordered to pay $886,418 in restitution. Oliva pleaded guilty to mail fraud and money laundering charges in connection with a mortgage fraud scheme.  According to court documents and testimony, Oliva, a mortgage broker, purchased homes through his company, MBA Mortgage Services, Inc., in St. Lucie, Palm Beach, and Miami-Dade counties that were being used as marijuana grow houses.  Most of these homes were bought with funds obtained by mortgage fraud through his company and his co-defendants, including Sergio Caro. To execute the scheme, the defendants submitted loan applications to mortgage lenders that contained false information, including false bank statements, W-2 forms, pay stubs, verifications of deposit and verifications of employment.  The defendants in the mortgage fraud scheme were charged with various counts of conspiracy, mail fraud, drug charges, and laundering drug-related money through the purchase of the homes.  On December 13, 2010, Sergio Caro was sentenced to 37 months in prison and ordered to pay $671,166 in restitution to victim mortgage lenders. Two additional co-defendants, Ilan Reyes and Orlando Dominguez, both of Miami, pleaded guilty and were each sentenced to five years probation. Another co-defendant, Manuel Caro, is a fugitive.

Two Dallas Men Sentenced to Life in Prison

On February 18, 2011, in Waco, Texas, Robbie Padilla and Jeremias Hernandez each were sentenced to life in prison on drug and money laundering charges.  According to court documents, between 2003 and 2006, the defendants  distributed 90 kilograms of methamphetamine and one-half kilogram of cocaine in the Dallas area. Evidence presented during trial revealed that the defendants conspired with others to distribute over 500 pounds of methamphetamine and 80 kilograms of cocaine in North and Central Texas, Oklahoma, Louisiana and elsewhere.

Lawrence Man Sentenced to 48 Months for Laundering $315,000 in Drug Money

On February 16, 2011, in Boston, Mass., Freddy Arias-Cartagena was sentenced to 48 months in federal prison for his role in laundering $315,000 in drug money.  In July 2010, Arias-Cartagena pleaded guilty to seven counts of laundering drug money.  Arias-Cartagena’s guilty plea arose from a joint IRS/DEA investigation that began in 2007 and involved laundering drug money.  In that investigation, law enforcement authorities made extensive use of a cooperating witness (CW).  Over the course of the next 14 months, the CW made six separate deliveries of money that he represented to be drug proceeds to Arias-Cartagena and his co-conspirators in the Lawrence area totaling approximately $315,000.  Arias-Cartagena then used his shipping business, ARIAS Shipping & Towing, to wire the purported drug money to the Dominican Republic.  The money was then picked up in the Dominican Republic (minus Arias-Cartagena's percentage fee) by a DEA undercover agent several days after being given to Arias-Cartagena.

Nebraska Woman Sentenced for Money Laundering and Conspiracy

On February 11, 2011, in Omaha, Neb., Vicki Cass was sentenced to 24 months in prison for conspiracy to distribute marijuana and money laundering.  According to court documents, Cass pleaded guilty July 6, 2010, and admitted to laundering more than $200,000.   Cass was among 11 people indicted in the drug ring that conspired to distribute more than 2,200 pounds of marijuana from 2006 through 2009.

Former Sheriff Receives 2 Life Sentences Plus 10 Years

On January 19, 2011, in Benton, Ill., former Gallatin County Sheriff Raymond Martin was sentenced to two life sentences plus 120 months.  In addition, Martin was ordered to forfeit his home valued at over $200,000 and more than $76,000 in cash. He was also ordered to pay fines and special assessments totaling $51,500.  According to court documents, Martin was convicted of three counts of distribution of marijuana; one count of conspiring  to distribute marijuana; two counts of carrying a firearm during and in relation to a drug trafficking crime; three counts of attempted witness tampering by physical force; one count of conspiracy to tamper with witnesses through physical force; three counts of attempted witness tampering through threats, intimidation and corrupt persuasion; one count of conspiracy to tamper with witnesses through threats, intimidation and corrupt persuasion; and one count of attempting to structure financial transactions to avoid currency reporting requirements.  Evidence at trial showed that Martin repeatedly delivered marijuana, both stolen and purchased, to individuals and did so while on duty, in uniform, armed and driving his county-issued squad car.  Martin threatened a witness with his duty weapon on two occasions.  Additionally, Martin had attempted to hire a confidential source to kill two of the main witnesses against him in the drug case. The source provided agents with a hand-drawn map Martin drew showing the location of the witnesses' homes in Gallatin County.  A subsequent investigation confirmed this information, showed Martin's fingerprints on the map and also revealed the existence of another person whom Martin attempted to hire to kill these witnesses. That investigation also revealed that, from his jail cell, Martin attempted to structure financial transactions at his bank to conceal his remaining assets and prevent their seizure by the U.S. Government.

Minnesota Man Sentenced for Smuggling Firearms

On January 25, 2011, in Minneapolis, Minn., Paul Giovanni De La Rosa was sentenced to 36 months in federal prison after earlier admitting he had illegally purchased more than 100 firearms, which he then smuggled into Mexico. Some of those weapons were later recovered during investigations into Mexican drug cartels.  According to court documents,  De La Rosa admitted that on November 11, 2009, while buying two handguns from a licensed firearms dealer in Albert Lea, Minnesota, he made false statements on the required firearms application, claiming to be the actual buyer of the firearms, when, in fact, he was making the purchase for individuals in Mexico. De La Rosa later admitted he had been conducting similar “straw purchases” of firearms since 2007. In fact, from 2007 through November 16, 2009, he purchased more than 100 firearms. De La Rosa also admitted that after buying the weapons, he routinely smuggled them into Mexico. Between 2007 and November 16, 2009, he crossed the U.S.- Mexican border 20 times for that purpose. During that time period, he received approximately $70,000, via wire transfers, to pay for the weapons.

Drug Dealer Sentenced for Structuring Drug Proceeds

On January 25, 2011, in Eugene, Ore., Noel Nathaniel Yaun of Las Vegas, Nevada, was sentenced to 37 months in prison for structuring currency transactions to evade financial institution reporting obligations to the Internal Revenue Service (IRS). He also admitted that the structured currency was derived from the distribution of marijuana and psilocybin mushrooms as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Yaun was identified as a recipient of shipments containing marijuana and psilocybin mushrooms from Michael James Walsh in Eugene. Walsh distributed marijuana and psilocybin mushrooms to people in multiple states. Upon receiving the shipments from Walsh, Yaun sold the marijuana and mushrooms and deposited the proceeds into a bank account controlled by Walsh. He structured the deposits in amounts of less than $10,000 to avoid detection by the IRS and other law enforcement officials. Over 16 months, Yaun deposited more than $494,000 into the account.  Walsh was sentenced on April 11, 2010, to 46 months in prison.

Dallas Man Sentenced to 292 Months In Prison For Role in Marijuana Trafficking Conspiracy

On January 21, 2011, in Dallas, Texas, John Newton was sentenced to 292 months in prison for his role as the leader of a marijuana distribution conspiracy, known as the Newton Drug Trafficking Organization, that he ran in the Dallas area.  According to court documents, Newton pleaded guilty in April 2010 to one count of conspiracy to distribute marijuana, one count of maintaining a drug-involved premise, one count of possession of marijuana with intent to distribute and one count of conspiracy to commit money laundering.   Newton’s co-defendants, Kurt Vollers, a former Dallas Cowboys football player, Tommy Don Crutcher, and Scott Matthew Kirk, also pleaded guilty to their respective roles in the drug trafficking organization and await sentencing.  From January 2006 through May 2008, Newton, along with his co-defendants, participated in a conspiracy to distribute 100 kilograms or more of marijuana.  Newton leased an apartment on North MacArthur Boulevard in Irving, Texas, which was used to unlawfully store, distribute and manufacture marijuana.  From February 2008 through May 2008, Newton, Crutcher and Kirk conspired to commit money laundering by conducting financial transactions involving the proceeds of their unlawful activity, designed to conceal and disguise the nature, location, source, ownership and control of those proceeds.

Man Sentenced To Prison for Drug Conspiracy

On January 18, 2011, in Mobile, Ala., Benjamin Knox was sentenced to 120 months in prison and five years of supervised release for participating in a drug distribution conspiracy. Knox was indicted in March 2006 and pleaded guilty on September 30, 2010, to one count of conspiracy to possess with intent to distribute cocaine.  Court records showed that Knox and other family members had connections to drug suppliers in Texas.  From 1999 through 2002, a member of the conspiracy supplied 104 kilograms of cocaine which was distributed in Alabama.  Some of the cocaine was converted into crack cocaine and sold in Thomasville, Alabama.  Many kilograms of cocaine were distributed in Montgomery and Birmingham.  Benjamin Knox's son, Alvin T. Knox, was sentenced on February 3, 2009, to 15 years in prison for his role in the conspiracy.  

Oregon Woman Sentenced for Drug Distribution and Money Laundering

On January 12, 2011, in Eugene, Ore., Suzan Dione, of Eugene, was sentenced to 24 months in prison for conspiracy to manufacture and distribute marijuana, psilocybin mushrooms, and ecstasy, and for laundering money and structuring currency transactions. She also forfeited two homes and over $30,000 in currency. This sentencing followed Ms. Dione’s guilty plea on October 25, 2010.  According to court documents, Ms. Dione was a distributor to people in multiple states and controlled a bank account into which more than $605,000 was deposited. All of the deposits were derived from the distribution of marijuana, psilocybin mushrooms, and ecstasy. She used some of this money to purchase a home located at 86151 Cherokee Drive in Eugene and to pay mortgages on a home located at 2143 Dakota Street in Eugene. In November 2008, a search warrant was served at both homes and $4,045 in currency and a variety of narcotics-related paraphernalia were seized. Over $26,000 was seized from various bank accounts. In pleading guilty, Ms. Dione admitted that she conspired with others to manufacture and distribute marijuana, psilocybin mushrooms, and ecstasy, and that she laundered over $700,000 of the proceeds of that operation in numerous financial transactions. She also admitted that she structured over $32,000 in currency transactions to evade financial institution reporting requirements, and that this currency was derived from the distribution of the marijuana, psilocybin mushrooms, and ecstasy.

Anchorage Man Sentenced to Five Years in Federal Prison for Drug and Money Laundering Crimes

On January 12, 2011, in Anchorage, Alaska, Daryl Hunter, of Anchorage, was sentenced to 60 months in prison to be followed by 36 months of supervised release after pleading guilty to 20 counts of money laundering and one count of maintaining a place for the distribution of controlled substances. Hunter will also forfeit approximately $1 million in proceeds from the sale of heroin, including five golf simulators, two Rolex watches, and a 1947 Stinson aircraft. According to court documents, Hunter traveled to Portland, Oregon to purchase heroin that he then sold in Anchorage. Hunter used the profits from this distribution to purchase a 2007 Cadillac Escalade for $70,517; five golf simulators, each for $54,500; two Rolex watches for a total price of $18,475; a 1947 Stinson aircraft for a $30,000 down payment; and “Wings N Things,” a local business, using a $200,000 cash down payment.  In addition, prior to March 2007, Hunter rented 7035 Redhawk Circle in Anchorage. While he lived there, Hunter knowingly allowed the residence to be used to receive or store heroin for distribution.

Lead Defendant in Massive Racketeering Case That Targeted Hawaiian Gardens Gang Sentenced To 30 Years in Prison for Wide-Ranging Drug Trafficking Activities

On January 10, 2011, in Los Angeles, Calif., George Manuel Flores, the lead defendant in a federal RICO indictment that was brought as part of the nation’s largest-ever gang sweep, was sentenced to 30 years in federal prison for helping coordinate the racketeering activities of the Varrio Hawaiian Gardens street gang and distributing large quantities of narcotics. Flores pleaded guilty on March 26, 2010, to five counts: racketeering conspiracy; conspiracy to distribute and possess with the intent to distribute crack cocaine, methamphetamine, heroin, and marijuana; two counts of possession with the intent to distribute heroin; and being a felon in possession of ammunition. In court documents filed for his sentencing hearing, prosecutors noted that Flores was a longtime drug dealer, who was “a blight on the city of Hawaiian Gardens. For over a decade, [Flores] ran what are fairly described as several illegal drug ‘supermarkets’ from houses in Hawaiian Gardens that were open 24 hours a day, seven days a week, at which his customers could buy the drug of their choice.” In relation to the narcotics conspiracy count to which he pleaded guilty, Flores specifically admitted that he was responsible for the distribution of more than 30 kilograms of heroin, more than 4.5 kilograms of crack cocaine, more than 1.5 kilograms of pure methamphetamine, more than 15 kilograms of narcotics that contained methamphetamine, and more than 100 kilograms of marijuana. The investigation into the Varrio Hawaiian Gardens (VHG) gang began after the fatal shooting of Los Angeles Sheriff’s Deputy Jerry Ortiz, who was gunned down on June 24, 2005, by a gang member he was attempting to arrest on suspicion of shooting an African-American man. While the gang member, Jose Orozco, was quickly apprehended and currently sits on death row, the shooting of Deputy Ortiz sparked an investigation that culminated with two takedowns in 2009 that saw approximately 170 gang members and associates being taken into custody on federal charges.

New York Man Sentenced on Conspiracy Charge

On December 2, 2010, in Central Islip, New York, Anthony Pettigrew was sentenced to 84 months in prison, followed by four years of supervised release, and ordered to pay a $100 special assessment.  Pettigrew was indicted in October 2007 on drug and money laundering conspiracy charges. According to the indictment, between December 1, 1999, and August 29, 2007, Pettigrew and others conspired to distribute and to possess marijuana, which involved one thousand or more hydroponic marijuana plants and one thousand kilograms of marijuana; and conspired to launder the proceeds of the marijuana trafficking activities.  Pettigrew pleaded guilty to the drug charge in December 2010.

Miami Resident Sentenced On Mortgage Fraud Charges

On December 13, 2010, in Miami, Fla., Sergio Caro, of Miami-Dade, was sentenced to 37 months in prison on mail fraud and money laundering charges in connection with a mortgage fraud scheme.  The judge also ordered Caro to pay $671,166 in restitution to victim mortgage lenders.  This amount represents the total losses resulting from fraudulent mortgages obtained by Caro and other co-conspirators during 2005-2006 in Palm Beach and St. Lucie Counties. The mortgage fraud scheme was uncovered during an earlier investigation into marijuana grow houses in Port St. Lucie.  During that investigation, investigators found that many of the houses were linked to co-defendant Manuel Caro.  Manuel Caro was charged in 2006 for his participation in the marijuana grow house operation, but fled after being released on bond.  He remains a fugitive. More marijuana grow houses were eventually discovered in St. Lucie, Palm Beach, and Miami-Dade Counties.  According to the superseding indictment, most of these homes were purchased with funds obtained through mortgage fraud committed by defendant Hugo Oliva, a mortgage broker, through his company, MBA Mortgage Services, Inc., and his co-defendants, including Sergio Caro.  To execute the scheme, the defendants submitted loan applications to mortgage lenders that contained false information, including false bank statements, W2 forms, pay stubs, verifications of deposit and verifications of employment. The defendants in the mortgage fraud scheme were charged with various counts of conspiracy, mail fraud, drug charges, and laundering drug-related money through the purchase of the homes.  Two additional co-defendants have pleaded guilty and await sentencing.

Omaha Man Sentenced to Prison

On December 9, 2010, in Omaha, Neb., Lee A. Weinstein, of Omaha, was sentenced to serve 180 months in prison on each of one count of conspiracy to distribute more than 1,000 kilograms of marijuana and money laundering, to be served concurrently. Weinstein was the leader/organizer of a drug trafficking operation with ties to Nebraska, Arizona, California and Mexico.  At the time of his March 2010 arrest, agents were able to attribute over 13,000 pounds of marijuana and 2.9 million dollars to Weinstein’s drug operation. Agents in Nebraska and Arizona have seized over $400,000 and numerous vehicles, including a 1967 Cessna--U206B, as part of this investigation.   

Four Leaders of Major Cocaine Ring Sentenced on Drug and Money Laundering Charges

On December 2, 2010, in Wilmington, Del., Harold Fitzgerald, of Chester, Pennsylvania, was sentenced to 240 months in prison for his significant role in a major cocaine trafficking organization.  Three other major members of the organization were sentenced in May and June 2010:  Bradley Torrence, aka “Tuffy,” of Philadelphia, Pennsylvania, was sentenced to 72 months in prison; and Robert Shepherd, aka “Manny” or “Jig,” of Wilmington, Delaware, and Vanivan Fuller, aka “V” or “Van,” of Houston, Texas, were each sentenced to 78 months in prison.  According to court documents, the defendants and others shipped more than 250 kilograms of cocaine via Federal Express from Houston, Texas to locations in Delaware, Philadelphia and New Jersey between 2004 and 2007.  The cocaine was worth over $5 million wholesale at the time.  Shepherd and Torrence employed sophisticated money laundering techniques to conceal the substantial proceeds of their drug enterprise. The investigation revealed that each used their drug profits to purchase designer clothes, to drive high-end vehicles, including a Mercedes Maybach worth over $400,000, a Range Rover, and an Aston Martin, and to maintain multiple luxury apartments in Wilmington, Delaware; Camden, New Jersey; and Atlanta, Georgia.  Other members of the conspiracy had been previously been sentenced.  In October 2007, Eric Blackmon was sentenced to nearly 240 months in prison and Shawn Williams was sentenced to 96 months in prison. Two Federal Express couriers, who were paid to deliver cocaine to organization members, Tameka Andrews and Eric Blackson, were sentenced to 18 months and 15 months in prison, respectively.  Jeffrey Gray, who distributed cocaine for the organization, was sentenced to 480 months in prison on December 22, 2008, on cocaine conspiracy, firearms, and money laundering charges.
 

Two Sentenced in Dallas on Drug Charges

On December 1, 2010, in Dallas, Texas, Jade Kuhn was sentenced to 84 months in prison and five years supervised release, and Robert Salter was sentenced to 180 months in prison followed by three years of supervised release for their roles in a conspiracy to possess with intent to distribute at least 500 grams of Methamphetamine and money laundering.  According to court documents, beginning in at least July 2007, Kuhn and Salter began to acquire quantities of Methamphetamine for distribution. The controlled substances were transported through the Western District of Texas and elsewhere.  In order to facilitate this illegal enterprise, Kuhn and Salter, upon receipt of the controlled substances, would then “front” the controlled substances  to distributors. The controlled substances were delivered to other distributors. The controlled substances would eventually be sold and the currency collected. The currency would then be delivered to the distributors and forwarded on to the suppliers. The currency generated from the sale of controlled substances was used to purchase assets. Some of these assets were used to further the ongoing illegal activity. Other assets were placed in nominee names to conceal their true ownership and control.

Final Defendant Sentenced for Money Laundering and Drug Conspiracy

On November 29, 2010, in Houston, Texas, Pablo Gonzalez, aka Ramon Flores, was sentenced to 90 months in prison for drug trafficking and money laundering.  According to court documents, Gonzalez pleaded guilty July 14, 2008. Co-defendant Diego Fernando Arias, aka Carlos Maldonado, 36, pleaded guilty on June 9, 2008, to drug trafficking conspiracy and conspiracy to launder monetary instruments from March 2007 to July 2007.   Arias was sentenced to 210 months in federal prison on October18, 2010.   Hundreds of thousands of dollars in drug proceeds were laundered through bank accounts in several major cities..  The investigation revealed that Arias controlled a heroin trafficking and money laundering organization working throughout Colombia and the United States. Arias, Gonzalez and numerous co-defendants transported and sold kilogram quantities of heroin in New York City and Detroit, Mich., in 2007.  Arias directed the collection of drug sales proceeds in those cities which were subsequently laundered by Arias through New York City, Detroit, Miami and Houston bank accounts. The currency was divided into small amounts and deposited into several nominee bank accounts to move the proceeds across the U.S. The amount of profits laundered by the organization totaled approximately $750,000.

Chicago Woman Sentenced

On November 17, 2010, in Chicago, Ill., Vivian Hernandez was sentenced to 12 months and a day in prison followed by two years of supervised release for her involvement in a heroin drug trafficking organization known as the Valencia Organization.  The Valencia Organization arranged to have large quantities of heroin transported from New York, Florida and Texas, to the Chicago area for distribution to others.  Hernandez was indicted and plead guilty to conducting foreign wire transfers of cash narcotic proceeds to individuals associated with the Valencia Organization in Columbia and elsewhere.  

Defendant Sentenced for Structuring Cash Deposits and Drug Charges

On November 18, 2010, in Columbus, Ohio, Dae Won Lee was sentenced to 72 months in prison, to be followed by five years of supervised release, and ordered to pay a $200 special assessment.  In addition, Lee was ordered to forfeit over $670,000 in currency, various items of jewelry and seven vehicles.  Lee pleaded guilty in August 2008 to charges of structuring currency transactions to evade reporting requirements and conspiracy to distribute over 1000 Kilograms of marijuana.  According to an Indictment, Lee conspired with Rafael Hernandez-Carrillo and others to distribute marijuana in the Columbus, Ohio area and elsewhere.  Lee also deposited more than $100,000 in amounts under $10,000 in a effort to avoid the filing of currency transaction reports by banks.

Woman Who Shot Officer During Search Warrant Execution in Dallas Sentenced to Almost 59 Years in Prison

On November 22, 2010, in Waco Texas, Marisela Villa was sentenced to 705 months in prison on drug, firearms, and money laundering charges.  According to court documents, Villa pleaded guilty in September to one count of conspiracy to distribute more that 500 grams of methamphetamine and over five kilograms of cocaine; one count of conspiracy to commit money laundering; and one count of possession of a firearm during a drug trafficking crime.  Villa admitted that she conspired with Clayton Sharpless, a man she was living with, Miguel Camarena, Albert Ruiz and others from 2005 until October 2007 to distribute over 500 pounds of methamphetamine and 80 kilograms of cocaine in North and Central Texas, Oklahoma, Louisiana and elsewhere.  On October 17, 2007, authorities executed a search warrant at Sharpless and Villa’s residence.  During the execution, Villa discharged a .45 caliber handgun shooting a Dallas Police Department S.W.A.T. officer in the neck, causing serious bodily injury.  Previously, Camarena, Ruiz and Sharpless were sentenced to life, 20 years and 20 years, respectively, in federal prison for their roles in the drug distribution conspiracy.

Man Sentenced to Two Years in Federal Prison for Laundering Money from Ecstasy Sales

On November 5, 2010, in Las Vegas, Nev., Shawn Ignatious Nunes was sentenced to 24 months in prison, three years of supervised release, and ordered to pay a $3,000 fine and forfeit $2,200. Nunes was charged in June 2009 and pleaded guilty on August 6, 2010, to one count of money laundering.  According to the plea memorandum, Nunes received $2,000 in exchange for distributing approximately 500 ecstasy pills in September 2008.  In addition, Nunes previously received $200, which he knew were profits from illegal drug dealing. 

Woman Sentenced for Structuring Drug Proceeds to Purchase a House

On October 29, 2010, in Fort Worth, Texas, Brittany Krambeck was sentenced to 220 months in prison for structuring.  According to court documents, during 2008 Krambeck became a distributor of methamphetamine for her father and his drug trafficking organization.  From at least February 2009 through August 2009, Krambeck maintained and used a residence in North Richland Hills, Texas, as a place for the sale and distribution of methamphetamine.  In October 2008, Krambeck’s father decided to purchase a residence in Grand Prairie, Texas.  However, he wanted to purchase the residence in the name of Hammer Time Custom Remodeling, LLC (HTCR) and use the proceeds of his methamphetamine sales to purchase the property.  Krambeck was recruited by her father to help accomplish the purchase.  Krambeck obtained the drug profits from her father and distributed them to various persons involved in the drug trafficking organization and trusted relatives.  Krambeck instructed them to purchase cashier’s checks in amounts under $10,000 and then deposit the checks into the HTCR bank account to avoid the reporting requirements.  On the closing date, bank records show that Krambeck’s father made a withdrawal from the HTCR bank account of more than $69,000 to purchase the cashier’s check to the title company.  Krambeck executed all of the documents for HTCR at the closing. 
 

Head of Mexican Drug Trafficking Family Sentenced To 280 Months in Prison

On October 27, 2010, in Sacramento, Calif., Miguel Ruiz-Bravo, of Apatzingan, Mexico, was sentenced to 280 months in prison for conspiring to distribute methamphetamine. Ruiz-Bravo pleaded guilty on June 24, 2010. According to the defendant’s plea agreement, Miguel Ruiz-Bravo was controlling an active methamphetamine distribution business in Sacramento from his home in Mexico. On August 24, 2005, an indictment charged Miguel Ruiz-Bravo with directing the delivery of the 18 pounds of methamphetamine seized from his nephew. On December 15, 2006, Ruiz-Bravo was arrested by state authorities with five other individuals. The state charged Miguel Ruiz-Bravo with possessing approximately 80 pounds of methamphetamine, and he subsequently pleaded guilty and was sentenced to 17 years in prison by the Sacramento County Superior Court (case 06F10834). Following his sentencing, he was transferred to federal custody for prosecution.

Defendant Sentenced to 15 Years on Drug and Money Laundering Charges

On October 13, 2010, in Columbia, S.C., Reginald Christopher Mack, aka Reggie, was sentenced to 180 months in prison, to be followed by ten years of supervised release, and ordered to pay a $200 special assessment.  Mack pleaded guilty in May 2009 to conspiracy to possess with intent to distribute cocaine and conspiracy to launder drug proceeds. According to court documents, Mack conspired with others in the distribution of cocaine within South Carolina and other areas.  Around May 2007, Mack conspired with others to launder the proceeds from the sale of drugs.

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