Category: Arizona

MEDFORD, Ore.—A federal grand jury in Medford has returned an indictment charging a Phoenix, Arizona man with mailing large quantities of fentanyl to Southern Oregon.

Luke Austin Montgomery, 24, has been charged with three counts of attempting to distribute fentanyl.

According to court documents, in late 2022, law enforcement learned Montgomery had been shipping counterfeit oxycodone pills suspected to contain fentanyl from Phoenix to Southern Oregon. Soon after, investigators arranged the purchase of 1,000 counterfeit pills from Montgomery. The same day Montgomery fulfilled the order, he shipped an additional 10,000 pills to a second Southern Oregon address. Montgomery concealed the counterfeit pills in over-the-counter pill bottles packaged among various toiletries. Investigators later obtained videos Montgomery had allegedly created and used to sell the counterfeit pills on social media.

On May 9, 2023, Montgomery was arrested in Arizona. Today, he was ordered detained pending transfer to the District of Oregon.

Attempting to distribute more than 40 grams of fentanyl is punishable by up to 40 years in federal prison with a five-year mandatory minimum sentence, five years’ supervised release, and a $250,000 fine.

This case was investigated by the U.S. Drug Enforcement Administration and U.S. Postal Inspection Service. It is being prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.

An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

PHOENIX, Ariz. – Keivin Crosswell-Cervantes, 28, of Mexico, Carlos Alberto Castro-Ruiz, 27, of Avondale, Arizona, and Alexander Ortega-Islas, 22, of Phoenix, Arizona, were indicted on October 4, 2022, on Conspiracy to Distribute Fentanyl and Methamphetamine along with Use or Carry a Firearm during a Drug Trafficking Offense. The three defendants had their initial appearance on September 23, 2022, before United States Magistrate Judge Eileen S. Willett.

On Sept. 21, 2022, HSI special agents arrested Crosswell-Cervantes, Castro-Ruiz, and Ortega-Islas and seized approximately 410,000 blue fentanyl pills, approximately 20,000 multi-colored fentanyl pills, also known as “skittles”, and approximately 25 pounds of methamphetamine in Avondale, Arizona. During the enforcement action, special agents also seized an AK-47 style pistol, a Kimber 1911 45 caliber pistol with two magazines, and an FN 45 caliber pistol.

A conviction for Conspiracy to Distribute Fentanyl and Methamphetamine carries a mandatory minimum sentence of 10 years in prison with a maximum penalty of life in prison, a fine of up to $10,000,000, or both.

A conviction for Use or Carry a Firearms during a Drug Trafficking Offense carries a mandatory minimum sentence of 5 years in prison, consecutive to any other sentence, with a maximum penalty of 20 years in prison, a fine of up to $250,000, or both.

An indictment is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

Special Agents from Homeland Security Investigations, Nogales, conducted the investigation in this case. Assistant U.S. Attorney Matthew G. Eltringham, District of Arizona, Tucson, OCDETF Section, is handling the prosecution.

CASE NUMBER:            MJ-22-9370-ESW
RELEASE NUMBER:    2022-171_Crosswell-Cervantes et al.

U.S. Border Patrol agents arrested two U.S. citizens and seized 340 packages of fentanyl pills near Gila Bend, Arizona, early Wednesday evening.

 Tucson Sector agents discovered the narcotics around 6 p.m. while conducting a vehicle stop on a white Chevy Equinox heading eastbound that had exited Interstate 8 at mile marker 115. During the stop, agents observed several black duffel bags in the vehicle’s rear cargo area and that the female driver was noticeably nervous as she was questioned.

After receiving her consent to search the vehicle, agents found three bags containing packages wrapped in black tape and cellophane as well as coated in axle grease, a technique often used to mask the scent of drugs. Further investigation revealed 340 packages of fentanyl pills weighing a grand total of 187 pounds and worth an estimated $4.3 million.

The case was turned over to the Maricopa County Sheriff’s Office. Both the driver and her female passenger face prosecution for drug charges. “I am grateful for the incredible work by Border Patrol agents to keep drugs off our streets,” said Sheriff Paul Penzone. “Their efforts will save lives and promote safety.”

Fentanyl seizures are a top priority, given the drug’s extreme danger to communities. During a recent suspected smuggling event, Tucson Sector agents administered naloxone to a man displaying signs of an overdose. Fentanyl is generally considered lethal at just 2 milligrams.

PHOENIX – A central California man was sentenced July 14, to 120 months in federal prison for sex trafficking of a minor following an investigation by special agents with Homeland Security Investigations (HSI) assisted by the Mesa Police Department, the Los Angeles Sheriff’s Department, and the Los Angeles Police Department (LAPD).

Jahque Dijion Williams, 21, of Los Angeles, previously pleaded guilty to sex trafficking of a minor.

“This lengthy sentence is a testament to the repugnant nature of child sex trafficking which only perpetuates the trauma endured by young victims,” said Scott Brown, special agent in charge of HSI Phoenix. “HSI agents make it a top priority to protect minors from victimization by working with law enforcement partners to investigate traffickers to ensure they are held accountable for their heinous actions.”

On July 23, 2020, the Human Trafficking Unit of the LAPD found the 17-year-old minor, who appeared to have been physically assaulted, at a Los Angeles hospital. The victim indicated that she first met Williams on July 19, 2020, through her social media account and he invited her to a party in Phoenix. At the party, she realized it was a “recruiting party” for commercial sex workers. Williams then transported the minor and another adult female to Los Angeles where he told the minor she would work for him. Williams gave the minor details about the amount of money she would bring back each night. On the trip to Los Angeles, Williams prevented the minor from leaving the car by activating the child lock on his vehicle.

HSI also encourages the public to report suspected sex trafficking or any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE, or by completing its online tip form. Both are staffed around the clock by investigators. From outside the United States and Canada, callers should dial 802-872-6199. Hearing impaired users may call TTY 802-872-6196.

HSI takes a victim-centered approach to child exploitation investigations by working to identify, rescue and stabilize victims. HSI works in partnership with National Center for Missing & Exploited Children (NCMEC), Internet Crimes Against Children (ICAC) partners, and other federal, state, and local agencies to help solve cases and rescue sexually exploited children. Suspected child sexual exploitation or missing children may be reported to NCMEC’s toll-free 24-hour hotline, 1-800-THE-LOST. HSI is a founding member of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission set. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify, and apprehend offenders, prevent transnational child sexual abuse, and help make the internet a safer place for children.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the DOJ Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.

The United States Attorney’s Office, District of Arizona, Tucson, and Phoenix, handled the prosecution.

Learn more about HSI Arizona’s commitment to combatting child exploitation at @HSIPhoenix.

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 6,800 special agents assigned to 225 cities throughout the United States, and 86 overseas locations in 55 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

NOGALES, Ariz. – The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated an individual engaged in the trafficking of high-caliber firearms from the United States to one of Mexico’s most powerful drug organizations as a result of a Homeland Security Investigation (HSI) and multiagency probe. This action would not have been possible without the cooperation and support of the Government of Mexico (GoM) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Today’s action is the result of ongoing efforts by U.S. agencies and the GoM to disrupt Mexican drug trafficking organizations’ procurement of weapons, including those sourced in the United States.

OFAC designated Obed Christian Sepulveda Portillo (Obed Sepulveda), pursuant to Executive Order (E.O.) 14059 for acting for or on behalf of the Cartel de Jalisco Nueva Generacion (CJNG), a violent drug trafficking organization based in Mexico responsible for a significant proportion of fentanyl and other deadly drugs trafficked into the United States.

“Cartels exist for one reason and one reason only – to generate a profit. The CJNG is no exception and has demonstrated they will go through great lengths, costing lives, in efforts to further their control,” said Scott Brown, special agent in charge, for HSI Phoenix. “As a border state, we see first-hand how these criminal organizations continue their attempts to smuggling narcotics and contraband through our shared border. With the coordination of our partnered agencies, HSI is committed to end the plague that is CJNG.”

Portillo, a Mexican national, was designated for, being directed by, or acting or purporting to act for or on behalf of, directly or indirectly, CJNG. Portillo coordinated the daily procurement of firearms and bulk ammunition from the U.S. southwest border into Mexico through a network of individuals working directly with CJNG.

“CJNG’s power and violence are only possible because of its ability to obtain high-powered weapons, which are used to protect drug trafficking routes, territory, and other illicit assets,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Treasury is actively targeting those who support and supply drug trafficking and criminal organizations, especially those engaged in the production and distribution of synthetic opioids that claim the lives of tens of thousands of Americans each year.”

Previous Actions Against CJNG

On April 8, 2015, OFAC designated CJNG and its leader, Oseguera Cervantes, pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for playing a significant role in international narcotics trafficking. On Dec. 15, 2021, OFAC also designated CJNG and Oseguera Cervantes pursuant to E.O. 14059. OFAC has also designated a wide range of businesses and individuals that play critical roles in CJNG’s drug trafficking activities.

Sanctions Implications

As a result of today’s action, all property, and interests in property of this designated individual that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all transactions by U.S. persons or persons within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. As with any provision of goods or services, including firearms, unlicensed transactions, or dealings by U.S. persons for the direct or indirect benefit of any designated drug trafficking organization are prohibited. U.S. persons may face civil or criminal penalties for violations of these sanctions.

These actions are part of a whole-of-government effort to counter the global threat posed by the trafficking of illicit drugs into the United States that is causing the deaths of tens of thousands of Americans annually, as well as countless more non-fatal overdoses. OFAC, in coordination with its U.S. government partners and foreign counterparts, will continue to target and pursue accountability for foreign illicit drug actors.

U.S. sanctions need not be permanent; sanctions are intended to bring about a positive change of behavior. Consistent with the findings of Treasury’s 2021 Sanctions Review, the removal of sanctions is available for persons designated under counter narcotics authorities who demonstrate a change in behavior and no longer engage in activities linked to international illicit drug trafficking or other sanctionable activity.

For information concerning the process for seeking removal from any OFAC list, including the Specially Designated Nationals and Blocked Persons List (SDN List), please refer to OFAC’s Frequently Asked Question 897.

Tips concerning the individual designated today can be submitted to HSI by phone 1-866-347-2423. Learn more about Arizona’s commitment of investigating cartel activity at @HSIPhoenix.

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

YUMA, Ariz. – A female Mexican national was charged by criminal complaint July 1 for her alleged involvement in narcotics smuggling following an investigation by Homeland Security Investigations (HSI) Yuma assisted by U.S. Customs and Border Protection (CBP).

Maria Arredondo De Sanchez, 56, was arrested June 30 upon attempting to enter the U.S. through the San Luis Port of Entry where CBP officers discovered 105 packages hidden in Arredondo De Sanchez’s car.

The complaint alleges the packages contained a white crystal-like substance that tested positive for methamphetamine. The combined weight of the packages was over 108 pounds.

A conviction for each charged offense carries a maximum penalty of life in prison and a $10,000,000 fine.

A criminal complaint is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.

Learn more about HSI’s commitment to combatting narcotics in Arizona at @HSIPhoenix.

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

TUCSON, Ariz. – On Friday, brothers Osmar Martinez-Ochoa, 30, and Hector Martinez-Ochoa, 28, of Tucson, were sentenced by U.S. District Judge John C. Hinderaker to each serve 11 years in prison, followed by three years of supervised release. The Martinez-Ochoa brothers previously pleaded guilty to conspiracy to distribute heroin, fentanyl, and methamphetamine.

The investigation in this case revealed that the Martinez-Ochoa brothers ran a drug trafficking organization that supplied street dealers in Tucson. Over the course of the investigation, the brothers and their organization were responsible for the distribution or possession with intent to distribute at least 10 kilograms of “ice” methamphetamine, 1.44 kilograms of heroin, and 180 grams of fentanyl. As part of a series of search warrants executed in this case, agents seized five firearms, including an AK-47 style assault rifle, and more than $50,000.00 in cash from the Martinez-Ochoa brothers.

The Drug Enforcement Administration conducted the investigation in this case, with assistance from the Tucson Counter Narcotics Alliance, the Pima County Sheriff’s Department, the Tucson Police Department, and the Oro Valley Police Department. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.

CASE NUMBER:            CR-20-1864-01 and -02-TUC-JCH (LCK)
RELEASE NUMBER:    2022-087_Martinez-Ochoa

SCOTTSDALE, Ariz. – On Tuesday, results from an undercover operation dubbed “Spring Fling” aimed at targeting alleged sexual predators was announced by local law enforcement in partnership with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

HSI joined the Scottsdale Police Department Human Exploitation and Trafficking (HEaT) Unit along with Phoenix, Mesa, Tempe, Gilbert, Surprise Police Departments along with Arizona State University Police Department for Operation Spring Fling.

This was an undercover operation targeting the demand for commercial sex, sex buyers, and human trafficking, which led to 43 arrests for crimes including child sex trafficking, prostitution, drug charges, and misconduct involving weapons. The focus was on hotel prostitution and street prostitution enforcement. The suspects allegedly solicited and/or brokered deals for various sex acts and were subsequently arrested.

The following suspects solicited various sex acts and were arrested:

All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HSI also encourages the public to report suspected sex trafficking or any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE, or by completing its online tip form. Both are staffed around the clock by investigators. From outside the United States and Canada, callers should dial (802) 872-6199. Hearing impaired users may call TTY (802) 872-6196.

HSI takes a victim-centered approach to child exploitation investigations by working to identify, rescue and stabilize victims. HSI works in partnership with NCMEC, ICAC partners, and other federal, state and local agencies to help solve cases and rescue sexually exploited children. Suspected child sexual exploitation or missing children may be reported to NCMEC’s toll-free 24-hour hotline, 1-800-THE-LOST. HSI is a founding member of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission set. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse, and help make the internet a safer place for children.

Illegal trade, which includes counterfeiting, smuggling, organized retail theft, human trafficking, and the drug trade, affects every state, including Arizona, whose proximity to an international border makes the state an even more likely target for these criminal enterprises, experts told an audience at a recent Arizona Chamber of Commerce & Industry event.

United to Safeguard America from Illegal Trade, USA-IT, is working to shine a light on the illegal activity and educate the business community on how crime can undermine the business environment.

USA-IT is a large coalition made up of law enforcement agencies, leading business organizations, brand enforcement experts and academics, that is leading the discussion on collaborative and innovative approaches to thwart the increase in illegal trade in Arizona.

The event featured a panel moderated by Matt Albence, the former acting director of U.S. Immigration and Customs Enforcement. Panelists were:

David Lake, CEO of the Center on Shadow Economics

Luis Ramirez, President of Ramirez International

Buna George, Executive Director of the Greater Yuma Port Authority

“When criminal activity becomes a business it becomes a competing economic interest, so when talking about illicit trade, we talk about keeping the criminal out of the economy,” said Lake, a retired law enforcement officer with more than 30 years of experience working as an undercover agent buying and selling counterfeit goods and studying what he calls the shadow economy. “But when that criminal gets into the economy, we are able to find that every time a counterfeit good is sold, the money that would have been brought to the community for a legitimate good is gone.”

The shadow economy has an unfair advantage in competing with legitimate commerce, but Lake said he’s concerned not enough law enforcement resources are being devoted to the problem.

He said more effort should be devoted toward “building law enforcement’s capacity to detect and dismantle the criminal networks profiting from illicit trade.”

Lake said that law enforcement leaders often understand how this kind of economic activity adversely affects businesses, but that the message hasn’t gotten out yet to other groups with more political power and enough influence to redirect resources and task forces to the issue.

“No agency has enough resources. The more that we can provide from the private sector to help law enforcement to do what they need to do, the better we can combat this,” he said.

Luis Ramirez, an adviser to clients involved in cross-border trade, explained how manufacturers and supply chain managers bear the burden of illegal trade, as checkpoints and security at ports of entry tighten, slowing down legitimate trade and increasing costs.

Ramirez said the increased costs of trade get passed onto consumers in the form of higher prices.

“From our perspective, we believe that our border cannot be protected by our agencies doing the best with what they’ve got; we need to give them what they need,” Ramirez said. “We are imposing on them this mission that they must make happen. Getting out there talking to members of Congress, getting additional resources, revising your staffing model, getting more technology to make the process faster and better for these kinds of port of entry projects.”

Attendees also heard from Major Damon Cecil, chief of staff for the Arizona Department of Public Safety, who spoke on how important it is for industry and community leaders to contribute to the fight against criminal networks.

Cecil, like the panelists who spoke before him, touched on why “spreading knowledge” is the first major step in dealing with the crisis before us.

“You have to know what is going on, and you have to recognize what is going on and how these decisions at the highest level impact our community,” Cecil said. “This is a crisis, and we are in it, folks, we are absolutely in it. And I think the partnership and collaboration between the private and public sector must involve a synergistic harmony between knowledge and truth in Washington, D.C., in Phoenix, and even in Mexico City.”

Cecil said organizations like USA-IT and the expert insight it assembles are essential to the kind of information sharing that will lead to the collaborative approach that he’s calling for.

PHOENIX, Ariz. — Last week, results from an undercover operation dubbed “April Fools” aimed at targeting alleged sexual predators was announced by local law enforcement in partnership with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

HSI joined the Phoenix Police Department Human Exploitation and Trafficking (HEaT) along with the Mesa, Chandler, Scottsdale, Glendale and Surprise Police Departments, Arizona Department of Public Safety, FBI, and the Arizona Attorney General’s Office for Operation April Fools. The undercover operation targeting the demand for child sex crimes and human trafficking netted 29 male arrests. Throughout the operational period, undercover detectives placed ads on websites commonly sought out by suspects seeking illegal sex acts with minors. The suspects allegedly solicited and/or brokered deals for various sex acts and were subsequently arrested.

The following 29 suspects solicited various sex acts include:

All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HSI also encourages the public to report suspected sex trafficking or any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE, or by completing its online tip form. Both are staffed around the clock by investigators. From outside the United States and Canada, callers should dial (802) 872-6199. Hearing impaired users may call TTY (802) 872-6196.

HSI takes a victim-centered approach to child exploitation investigations by working to identify, rescue and stabilize victims. HSI works in partnership with NCMEC, ICAC partners, and other federal, state and local agencies to help solve cases and rescue sexually exploited children. Suspected child sexual exploitation or missing children may be reported to NCMEC’s toll-free 24-hour hotline, 1-800-THE-LOST. HSI is a founding member of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission set. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse, and help make the internet a safer place for children.

HSI is a directorate of ICE and the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

Learn more about HSI Arizona’s commitment to combatting child exploitation at @HSIPhoenix.

TUCSON, Ariz. – Last week, a southern Arizona man pleaded guilty to one count of distribution of fentanyl which eventually was linked to a death. The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) and the Tucson Police Department.

Oscar S. Acuna, Jr., 35, of Tucson, Arizona, is scheduled to be sentenced July 12, before a United States District Judge.

Acuna admitted that he sold fentanyl pills and black tar heroin to a young woman and her boyfriend in May 2020 at a hotel in Tucson. Shortly after ingesting part of one of the pills, the young woman began experiencing respiratory distress. Medical personnel were unable to save her. An autopsy confirmed that the cause of her death was fentanyl and heroin toxicity.

A conviction for distribution of fentanyl carries a maximum penalty of 20 years imprisonment, a fine of $1,000,000.00, or both.

Assistant U.S. Attorney Stefani Hepford, District of Arizona, Tucson, is handling the prosecution.

HSI is a directorate of ICE and the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

Learn more about HSI’s mission to combat narcotics @HSIPhoenix.

Today, United to Safeguard America from Illegal Trade (USA-IT)—a coalition of more than 70 national and state brand enforcement experts, law enforcement agencies, academics, and leading business organizations—hosted an interactive summit in partnership with the Arizona Chamber of Commerce & Industry to find cooperative, innovative solutions to the rise of illegal trade in Arizona, including counterfeiting, smuggling, organized retail theft, and drug and human trafficking.

Illegal trade has been a growing threat to Arizona communities. Arizona has the 13th highest human trafficking cases in the United States. From 2014 to 2019, Arizona accounted for 17,514 occurrences of restricted prescription medications lost in transit – more than any other state. In 2017, federal law enforcement in Arizona confiscated more than $13 million in smuggled money, ranking third in the country.

Launched in 2021, USA-IT is working across 15 states including Arizona to empower local officials, law enforcement, and other leaders with new information and training programs and raise public awareness of the depth and severity of this crime.

“Building rapport with Arizona’s leading public and private sector leaders on this issue isn’t just timely, it is imperative for the protection of Arizona’s citizens and economy,” said USA-IT Spokesman and former Acting Director of U.S. Immigration and Customs Enforcement (ICE), Matt Albence. “Drug cartels and terror networks continue to adopt new forms of illegal trade to profit and expand their operations. Unfortunately, Arizona’s vast terrain and border with Mexico makes the state an attractive target for these criminals.”

Held in Phoenix, Arizona, summit attendees heard from keynote speaker, Major Damon Cecil, Chief of Staff for the Arizona Department of Public Safety, on the critical role industry and community leaders play in building successful cases against criminal networks.

“The Arizona Department of Public Safety is committed to providing the public and our officers with the information and resources they need to curb illegal trade. By working alongside the private sector and community organizations, we can enhance the toolkit of our law enforcement and protect Arizona businesses and families,” said Major Cecil.

During the summit, prominent state- and nationally-recognized business and security specialists convened for a panel discussion to explore the detriments of illegal trade on the Arizona economy. They also discussed legislative proposals that could undermine organized retail crime, and the importance of information-sharing between public and private sectors.

Moderated by Matt Albence, panelists and speakers included:

• Buna George, Executive Director for The Greater Yuma Port Authority
• David Lake, CEO for the Center on Shadow Economics
• Kristin Reif, Director of Illicit Trade Prevention for Philip Morris International
• Luis Ramirez, President of Ramirez Advisors Inter-National
• Mike Bailey, General Counsel & Director of Legal Reform Programs for the Arizona Chamber of Commerce & Industry

Luis Ramirez emphasized during the panel discussion that, “Illegal trade adds tremendous costs to manufacturers, impacts supply chains and ends up in higher prices for consumers. It is hard to overstate the importance of efforts to prevent illegal trade and its devastating impacts.” David Lake added, “Building law enforcement’s capacity to detect and dismantle the criminal networks profiting from illicit trade is critical to disrupting the Shadow Economy. The Shadow Economy unfairly competes with legitimate commerce, destabilizing the economic engines that create opportunity and prosperity in our communities.”

For more information about USA-IT’s efforts to combat illegal trade and to get involved, visit USAIT.org or email us at [email protected].

For media requests, please email [email protected]

About USA-IT United to Safeguard America from Illegal Trade (USA-IT) is a public- and private-sector partnership designed to help protect American security and prosperity from black-market criminals.

Hernan Albamonte, head of illicit trade prevention for Philip Morris International and USA-IT partner, discusses Mexican drug cartels’ role in illicit markets and how their activities span well beyond street drugs:

Watch here.

Hernan Albamonte, head of illicit trade prevention for Philip Morris International and USA-IT partner, and Juan Ciscomani with the Arizona-Mexico Commission discuss how cooperation is helping protect Arizona from illegal trade:

“From smuggling tobacco — an illegal practice that costs Arizona taxpayers $175 million each year — to counterfeiting luxury items and trafficking in deadly drugs, the havoc wreaked by illegal trade on our communities and economy is tremendous. The peddling of these illicit goods produces revenue used to fund even more sinister activities, such as human trafficking and terrorism. This problem has plagued Arizona for far too long. From 2014 to 2019, the state ranked first in the nation for the nearly 18,000 incidents of prescription substances lost in transit. In 2017, federal law enforcement seized more than $13 million in smuggled currency, the third most among U.S. states. Sadly, Arizona has had more than 1,200 cases of human trafficking since 2007, a stat that places it at 14th-highest in the nation. And these are only the ones that have been reported.”

“Now, more than ever, we need public and private partnerships that are connecting local officials, law enforcement and the private sector with the critical information and training needed to combat illegal trade. Business and community leaders must work together to educate and take action against the shocking prevalence of black-market profiteering, as well as the consequences it wreaks on their economy and the safety of their citizens. Adequate enforcement will not only protect consumers from unsafe and counterfeit goods, it will promote Arizona businesses and strengthen our economy.”

Read more here.

Arizona business leaders are joining forces with their colleagues across the nation to raise awareness about the dangers of illegal trade and counterfeit goods. While illicit trade may not typically be the topic of headlines, illegal smuggling of counterfeit goods hurts local business owners, saddles law-abiding citizens with higher taxes, and presents national security and public safety concerns.

Annually, $464 billion of counterfeit and pirated goods are brought into the U.S., and we’ve seen an increase of 40% of online counterfeited goods since January of 2020. Cigarette smuggling alone leads to an annual billion-dollar loss in unpaid state and local taxes. It all adds up to billions of dollars in the pockets of transnational criminal organizations. Additional losses are taking place in the retail sector, as organized retail crime has surged due to looters this holiday season. Just last week, Arizona Attorney General Mark Brnovich issued an explicit warning to criminals and cited the vigilant work of the Organized Retail Crime Task Force in his office.

Why does this matter for Arizona? Trade crimes, like counterfeiting and retail crime, are not victimless; the same criminal organizations that smuggle illegal and counterfeit goods are also often responsible for trafficking drugs and people. These criminals sneak across our 370-mile border with Mexico and bring a wide range of illegal contraband with them. These illegal products, whether it be counterfeit cigarettes and merchandise or more nefarious items such as weapons and drugs, are incredibly harmful to our communities. Recently, federal agents seized 1.7 million fentanyl pills in Scottsdale—enough of the lethal opioid to kill countless Arizonans.

While law enforcement is doing everything it can, the problem is too complex to handle alone. Only through strategic and dynamic partnerships can we protect consumers from dangerous products and help our small businesses and communities thrive. United to Safeguard America from Illegal Trade (USA-IT) is a public-and-private-sector partnership protecting Americans’ security and prosperity from black market criminals. USA-IT is working closely with Arizona coalition members to provide training for law enforcement officials and education materials for the general public.

Recently, I had the opportunity to join national members of the USA-IT coalition in Washington, D.C., for a summit that brought together business leaders, law enforcement, and policy experts to highlight the urgent need to tackle illegal trade—including counterfeiting, smuggling, organized retail theft, and drug and human trafficking. Arizona’s own Senator Kyrsten Sinema and Louisianna’s Senator Bill Cassidy spoke about the direct, urgent risks to local communities that accompany illegal trade.

Subject matter experts from large and small companies, law enforcement agents, and policy experts discussed how illegal trade funds terrorism, the new challenges confronting law enforcement, and the imperative role that public-private partnerships play in minimizing illegal trade.

Following the summit, USA-IT presented policy recommendations to members of Congress with the goal of fighting back against illegal trade and bolstering support for local law enforcement. The Arizona Chamber of Commerce & Industry is a proud partner of USA-IT and will do everything it can to join USA-IT in these efforts. To create obstacles for these criminals is to defend Arizona’s small businesses, protect our border, minimize American overdoses, and bolster the American economy. Let us stand together in partnership and make an impactful difference in the new year.

Michael Bailey is General Counsel of the Arizona Chamber of Commerce & Industry

A record total of 1.7 million fentanyl pills, with a street value of $9 million, was taken off the streets of Arizona as part of a crackdown on drug traffickers by state and federal law enforcement agencies.

The Scottsdale Police Department held a press conference on Thursday to update the public on the record narcotics seizure.

“It’s that partnership at all levels in the state of Arizona — the state partners, our municipal partners, and federal partners — that really brings us to the success that we have today,” said Scottsdale police Chief Jeff Walther, who said the seize was achieved in partnership with the Drug Enforcement Agency.

The bust took place on Tuesday, and aside from the roughly 360 pounds of fentanyl pills, authorities also confiscated 10 kilos of powdered fentanyl and 1 pound of methamphetamine.

Walther explained that over the past several months, the Scottsdale Police Department in tandem with the Phoenix Field Division of the DEA had opened an investigation related to the Sinaloa Cartel and their drug-trafficking activity in the state — metro Phoenix, specifically.

“The Sinaloa Cartel primarily uses trafficking routes that go through Arizona,” said Cheri Oz, Special Agent in Charge of the DEA’s Phoenix Field Division during the press conference. “We are confident this is Sinaloa Cartel narcotics.”

The investigation uncovered an individual who they suspected of transporting drugs for the organization. Through tracking that suspect, authorities uncovered the drugs, which, according to Walther, were found stashed in several residences and storage lockers in the Valley.

The suspect was not identified and Walther did not clarify if any arrests were made.

Attorney General Mark Brnovich thanked the work of Scottsdale police and the DEA during the news conference and alerted the public of the dangers of this drug.

The pills and the powdered fentanyl totaled almost 6 million fentanyl pills, according to Brnovich. “That is enough to kill half the population in the state of Arizona. Two milligrams can be fatal in some instances,” he said. “This may be in Arizona’s backyard today but it’s coming to the rest of the country.”

“This is not a recreational drug, this is what is driving our opioid crisis in the United States,” Walther said.

Using a multi-agency approach, the DEA launched the “One Pill Can Kill” campaign, urging the public to become more aware of the dangers of fentanyl-laced pills. Campaign enforcement includes increasing public awareness, as well as seizing drugs, money, firearms and arresting traffickers.

Since January, the DEA has seized over 9.5 million pills right in Arizona; 20,000,000 across the U.S., Oz said.

Unlike soft-on-crime California, we take retail theft seriously.

Most Americans remember the riots and the looting of summer 2020. While media attention has dwindled on these crimes, looting in major cities has continued—and is escalating this Christmas season. The center of organized retail theft is the San Francisco Bay Area.

KINGMAN – Arizona Department of Transportation Enforcement and Compliance Division officers, aided by one of the agency’s K-9 units, seized more than 100 pounds of cocaine Tuesday, Nov. 30, from a commercial vehicle that came through the Topock Port of Entry on I-40 near the California state line.

The vehicle came through the port of entry from California and was directed by officers to an area for a routine inspection. As part of the inspection, a drug-sniffing dog handled by one of the ADOT officers detected illegal substances. In searching the vehicle, officers found boxes containing several bundles of cocaine, which weighed approximately 112 pounds combined.

The driver, 40-year-old Gurvinder Singh of India, was arrested on suspicion of felony possession of narcotic drugs, possession of narcotic drugs for sale and transportation of narcotic drugs for sale. He was booked into the Mohave County Jail in Kingman.

ADOT officers enlisted the aid of the Mohave Area General Narcotics Enforcement Team, a task force composed of officers from multiple local law enforcement agencies, to take possession of the cocaine and conduct the ongoing investigation.

ADOT officers enforce laws involving commercial vehicle safety and permits, registration and driver license fraud, and unlicensed auto dealers, among other areas related to the agency’s transportation responsibilities. In 2018, ADOT’s Enforcement and Compliance Division began using K-9 units based out of commercial ports of entry next to California, New Mexico and Utah to help reduce smuggling of drugs and people.

Drogas, seres humanos y cualquier otro objeto ilícito cruzan ilegalmente la frontera de Arizona

NOGALES, Ariz. — In a joint effort, Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) on Aug. 6, seized nearly $10.5 million in counterfeit apparel.

HSI Nogales Task Force officers seized 6,628 pieces of attire, with an MSRP value of $10,483,082.

In April, the Nogales Trade Enforcement Coordination Center (TECC) initiated an operation targeting trade exports from China, Panama and Vietnam. Three months later, an in-bond shipment from China was referred for inspection at the Mariposa Port of Entry in Nogales, Arizona. The inspection resulted in the discovery of apparel bearing protected trademarks from Chanel, Gucci, Louis Vuitton, Burberry, Dior and Disney. Many of the products appeared to be poor quality with inconsistencies and stitching irregularities, so the merchandise was detained pending authentication and valuation from the trademark holders.

“This significant seizure is attributable to the dedicated work of our law enforcement professionals who worked together and interdicted a large quantity of counterfeit goods at the border,” said Scott Brown, special agent in charge, for HSI Phoenix. “Together with our Nogales Trade Enforcement Coordination Center law enforcement partners, HSI will continue to engage in an unrelenting pursuit of individuals who attempt to profit from the illegal trafficking of counterfeit products.”

Nogales TECC seized the following articles of apparel following confirmation by the trademark holders that the merchandise bearing their trademark is counterfeit:

• Chanel – 1,496 dresses and 1,152 blouses (MSRP $8,484,032)
• Gucci – 1,080 blouses (MSRP $702,000)
• Louis Vuitton – 634 blouses (MSRP $507,200)
• Burberry – 1,080 shirts (MSRP $421,200)
• Dior – 600 shirts (MSRP $354,000)
• Disney – 586 shirts (MSRP $14,650)

The items have been placed into evidence in furtherance of a continued investigation.

HSI is a directorate of U.S. Immigration and Customs Enforcement (ICE) and the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel and finance move.

HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

MESA, Ariz. — Special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) joined the East Valley Human Trafficking Taskforce (EVHTTF) on a two-day “Buyer Reduction” or sting operation, which resulted in 18 arrests.

The operation was led by the Mesa Police Department. The Arizona Attorney General’s Office and the Scottsdale and Tempe Police departments also participated in the investigation.

On Aug. 5 and Aug. 6, law enforcement staged in the area of South Country Club Drive and US 60 in Mesa, Arizona, to conduct online chats that offered prostitution services in an effort to identify and apprehend customers of sex trafficking victims. All 18 men arrested over the two days solicitated adult prostitution, and one was also charged of attempted sex conduct with a minor, child prostitution with a minor under the age of 15, money laundering and prostitution.

HSI and local law enforcement routinely partner to conduct operations of this type in a continuous effort to reduce the demand that fuels trafficking and exploitation of children in our community. The following suspects solicited various sex acts and were arrested.

All defendants are presumed innocent until convicted in a court of law.

HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.

HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

HSI is a directorate of ICE and the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel and finance move.

Former I.C.E. Director Matt Albence is a spokesperson for USA-IT and discusses how illicit and illegal trade as well as human trafficking is increasing in America.

TUCSON, Ariz. – Oscar Alberto Martinez, 27, of Tucson, Arizona was sentenced yesterday by U.S. District Judge John C. Hinderaker to five years in prison, followed by three years of supervised release. Martinez previously pleaded guilty to conspiracy to distribute methamphetamine, heroin, and fentanyl.

Martinez operated as a drug courier for a Tucson-based drug trafficking organization that trafficked methamphetamine, heroin, and fentanyl. Martinez made daily deliveries of drugs to buyers in Tucson for approximately three months. On February 20, 2020, Martinez was arrested while attempting to deliver three pounds of methamphetamine and ten ounces of heroin. Martinez fled from law enforcement, leading them on a high-speed vehicle chase through Tucson before abandoning his vehicle and continuing his flight on foot. Officers finally apprehended Martinez as he was trying to run into a home.

The Drug Enforcement Administration conducted the investigation in this case, with assistance from the Pima County Sheriff’s Office, the Tucson Police Department, and the Oro Valley Police Department. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.

CASE NUMBER: CR 20-1864-03-TUC-JCH (LCK)
RELEASE NUMBER: 2021-027_Martinez

Tony Bradley, president and CEO of the Arizona Trucking Association and USA-IT partner, discusses illegal trade’s impact on Arizona and why cooperation is needed to combat this crime:

“Unfortunately, Arizonans are already and heavily subjected to illegal trade. We share a 370-mile border with Mexico, with a large portion of the border being open, sparsely populated and unable to be continuously monitored by border enforcement agencies. With the border being used extensively by drug trafficking organizations, significant quantities of methamphetamine, cocaine, heroin, and marijuana are smuggled from Mexico into Arizona.”

“The same criminals who traffic humans or drugs will smuggle anything that earns a profit, such as counterfeit apparel, prescription medication and even service parts for household appliances. In fact, criminal organizations often traffic in commodities that are low-risk of consequences but still earn high-profits, like these, to bolster their more nefarious activities. Taking enforcement actions against these seemingly petty crimes will help to destabilize these criminal operations. Additionally, our state will recoup the hundreds of millions of dollars in revenues – lost every year to these criminals – that would have supported Arizonan businesses and neighborhoods.”

“Public actors, the private sector and civil society alike all have a role to play, which is why the Arizona Trucking Association has joined United to Safeguard America from Illegal Trade (USA-IT), a coalition of brand enforcement leaders, law enforcement, and other thought leaders to combat illegal trade through information and resources, training programs, and raising public awareness of illegal trade’s harmful impacts.”

Read more here.