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USA-IT partners discuss the dangers for online shoppers and the widespread, dangerous impacts it has
society.

Jennifer Hanks, director of brand protection for the American Apparel and Footwear Association:

“Hanks, director of brand protection with the American Apparel and Footwear Association (AAFA), said thousands of consumers are falling for these counterfeit product pitches. She spoke to us during a national conference on counterfeiting and the sale of illicit goods in Washington, D.C., hosted by United to Safeguard America from Illegal Trade (USA-IT), a private-public partnership to fight the problem. There is a ‘destructive value chain across commerce,’ she said. ‘It’s the fraudulent advertising that is posted on social media. The dupe social influencers are adding hidden links that take consumers offline to fake websites.’”

Alysa Erichs, USA-IT Spokesperson:

“And many times, money from counterfeit goods is not just going to a bogus manufacturer. According to USA-IT spokesperson Alysa Erichs, formerly acting assistant director with Homeland Security, money from fake goods may be funding human traffickers, drug smugglers, and even terrorists.

“‘The internet is obviously the vehicle to shop for legitimate products, and it’s being flooded with illegitimate products,’ she said. ‘While people may think, ‘What’s the harm?’ that they’re getting a bargain, they don’t understand what is happening down the road.’”

“‘So, if you multiply that one click by how many people are purchasing and the money made from the
product and where that money is going, it’s not your onesie, twosies. It’s going to an organization, an organization that is, in some cases, sophisticated enough to manufacture a product and have it shipped into this country. This is not your next-door neighbor who is putting a bag together in his basement. This is full production.’”

Read more here.

More than 200 victims of sex trafficking were rescued during a nationwide enforcement campaign last month that also included the identification or arrest of more than five dozen suspected human traffickers and 126 individuals accused of child sexual exploitation and trafficking offenses.

The FBI-led “Operation Cross Country,” which involved nearly every FBI field office and their respective state and local partners, also located 59 minor victims of child sex trafficking and sexual exploitation, and another 59 children who had been reported missing.

The two-week law enforcement initiative—now in its 13th year—is a coordinated operation among the FBI, other federal agencies, state and local police, and social services agencies across the country to find and assist victims of human trafficking, particularly child victims. Law enforcement agencies conduct targeted operations to identify traffickers, their networks, and their victims. FBI victim specialists, working alongside local agencies, then provide immediate support and access to the extensive resources that are available to all federal crime victims. The National Center for Missing and Exploited Children (NCMEC) is a significant partner in the initiative. The private non-profit is a clearinghouse of information and has assisted in more than 400,000 cases of missing kids who were recovered since its founding in 1984.

“Human trafficking is a grave violation of human rights that preys on the most vulnerable members of our society,” FBI Director Christopher Wray said in an August 1 announcement of the arrests and recoveries. “The FBI’s actions against this threat never waver as we continue to send our message that these atrocities will not be tolerated.”

FBI Child Exploitation and Human Trafficking Task Forces across the country work throughout the year to locate victims and their traffickers. Often, victim specialists are embedded in operations. They serve as a liaison between the victims and FBI agents. They also help victims find services to rebuild their lives. The FBI’s Victim Services Division has a team of child and adolescent forensic interviewers, or CAFIs, who are specially trained interviewers skilled at gathering evidence without further traumatizing children and others with mental or emotional disabilities. These multi-disciplinary teams work with state and local partners to make resources available for victims, which might include counseling, medical services, housing, or job placement.

“Our victim specialists, victim service coordinators, child and adolescent forensic interviewers, and other victim service professionals work collaboratively with special agents to ensure a trauma-informed, victim-centered approach is taken when engaging with victims,” said Regina Thompson, assistant director of the Victim Services Division. “This is especially important when engaging with victims of human trafficking as it is a very complex, traumatic crime.”

Operation Cross Country grew out of a 2003 FBI initiative to identify and recover minors who have been sexually exploited. While the national sweeps draw attention to the issue of trafficking, the FBI and its partners work to investigate and stop trafficking every day.

“Behind every statistic, there is a person with dreams, aspirations, and the right to live a life free from child sex trafficking and exploitation,” said NCMEC President and CEO Michelle DeLaune. “We applaud the FBI and their partner law enforcement agencies for their unwavering dedication to protecting children.”

The American Apparel & Footwear Association — a champion of safe workplaces, consumer protection, and brand protection — thanked Senator Chris Coons and Senator Charles E. Grassley for recognizing August as ‘‘National Anti-Counterfeiting and Consumer Education and Awareness Month.” This calls crucial attention to the importance of trademarks in the economy and the role of trademarks in protecting consumer safety.

“Through better education and more effective public policy, we must all work to combat counterfeiting. The seemingly insatiable appetite for fake goods, combined with the relative ease through which these knockoffs are found on third party marketplaces, means more Americans than ever before are exposed to dangerous and irresponsibly produced goods. AAFA and our brands continue to work alongside Congress, the U.S. Trade Representative, U.S. Customs and Border Protection (CBP), and other partner agencies as we aim to stem the growing problems from such illicit products. AAFA appreciates the constructive dialogue and tireless contributions of our Brand Protection Council members as we champion American innovation and brand protection, consumer safety, worker safety, and responsible product manufacturing,” said AAFA President and CEO Steve Lamar.

On July 27, Congress posted S.Res.325 — a resolution designating the month of August as “National Anti-Counterfeiting and Consumer Education and Awareness Month.” In particular, this resolution emphasizes:

– The importance of public awareness.
– The need to “safeguard consumers and businesses from unsafe and unreliable products that, through illicit activity, threaten intellectual property rights, the economic market, and even the health and well-being of consumers.”
– The growth of both global commerce and electronic commerce and ever-evolving deceptive tactics, as a means to accelerate the problem.

AAFA also applauds Senator Chris Coons for remarks on July 26 – during the Senate Judiciary Subcommittee on Intellectual Property (transcript, video) – where he stated, “… I’m planning to soon reintroduce, along with Senator Tillis, the SHOP SAFE Act to protect consumers from harmful counterfeit goods sold online…”

AAFA member products – apparel, footwear, and related goods – continually remain at the top of the counterfeit items seized by CBP year after year. The sale of counterfeit clothes, shoes, and travel goods not only hurts U.S. companies, but the millions of American workers they employ.

AAFA is an outspoken advocate for the proposed SHOP SAFE legislation; in addition to the recently enacted INFORM Consumers Act, as the association strives to stem the influx of illicit products and educate about the alarming dangers of counterfeits that extend across industries.

BEAUMONT, Texas – A Florida-based pharmaceutical president has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Adam P. Runsdorf, 58, of Boca Raton, Florida, pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy and was sentenced to 72 months in federal prison today by U.S. District Judge Marcia A. Crone.  Runsdorf was also ordered to forfeit $5 million and a McLaren sportscar.

According to the indictment, from April 2014 until August 2021, Runsdorf, the owner and president of Woodfield Pharmaceutical LLC based in Boca Raton, Florida, conspired with drug traffickers in Houston, Texas, to distribute misbranded and counterfeit cough syrup.  Runsdorf’s company pleaded guilty to the same charges and was ordered to forfeit $1 million and fined $50,000.

According to information presented in court, Byron A. Marshall, 43, of Houston, utilized Woodfield Pharmaceutical’s manufacturing facility and employees in Houston to produce more than 500,000 pints of counterfeit cough syrup. Marshall’s drug trafficking organization sold the counterfeit drugs across Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas, and Ohio. Prices generally ranged from $100 to more than $1,000 per one-pint bottle. Depending on the market and brand of cough syrup, prices went as high as $3,800 to $4,000 per pint.

During the conspiracy, Marshall communicated directly with Runsdorf regarding production of the counterfeit cough syrup.  At Runsdorf’s request, Marshall paid Woodfield Pharmaceutical in cash only, and Woodfield employees mailed the cash directly to Runsdorf in Boca Raton.

All eleven defendants charged in the indictment, including Runsdorf and Marshall, pleaded guilty.  Six have been sentenced in addition to Runsdorf. Tunji Campbell pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy and was sentenced to 135 months imprisonment. Chauntell D. Brown pleaded guilty to conspiracy and trafficking in counterfeit drugs and was sentenced to 72 months imprisonment. Cheryl A. Anderson, Ashley A. Rhea, and Maria Anzures-Camarena, each pleaded guilty to conspiracy and were sentenced to 60 months imprisonment. Five others, including Marshall, are awaiting sentencing.

“In his role as owner and president of Woodfield Pharmaceutical LLC, Adam Runsdorf knew his company was producing thousands of gallons of counterfeit cough syrup—labeled to be nearly identical to a discontinued product—to be distributed to drug traffickers in Texas and other states,” said U.S. Attorney Damien M. Diggs.  “Runsdorf knew that drug traffickers were selling the counterfeit cough syrup to street-level users and he profited greatly from the sale of the counterfeit cough syrup.  Runsdorf’s greed earned him a significant prison sentence.  Food and drug products, particularly pharmaceuticals such as cough syrups, undergo rigorous testing and inspection by federal authorities to ensure their safety.  When companies evade inspection and certification requirements, innocent consumers are put at risk.  EDTX is committed to ensuring public safety and upholding public trust through the vigorous prosecution of those that skirt these safety requirements.”

“This sentence sends a strong message to anyone misusing their trusted role and privilege granted by DEA to handle controlled substance,” said DEA Special Agent in Charge of the Houston Division Daniel C. Comeaux.” “This case shows how collaborative efforts between state, local and federal partners on multiple fronts are capable of holding large pharmaceutical distribution companies like Woodfield Distribution accountable by immediately suspending its dangerous operations and bringing its CEO behind bars.”

“Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Special Agent in Charge Christopher J. Altemus, Jr. of IRS Criminal Investigation (CI), Dallas Field Office. “Adam Runsdorf abused his role as CEO of Woodfield Distributors to participate in the laundering of hundreds of thousands of dollars derived from illegally manufactured and distributed controlled substances. Mr. Runsdorf’s sentence is a direct result of the excellent partnership between law enforcement and the U.S. Attorney’s office in combating drug trafficking and money laundering.  I am extremely proud of the CI special agents who used their unique financial expertise to help unravel this complex fraud and money laundering scheme. IRS-CI will continue to work with our law enforcement partners to stop criminals like Mr. Runsdorf from endangering the American public.”

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by the Drug Enforcement Administration; U.S. Food and Drug Administration Office of Criminal Investigations; Internal Revenue Service-Criminal Investigation; Federal Bureau of Investigation; U.S. Marshals Service; Houston Police Department; Galveston Police Department; Galveston County Sheriff’s Office; Dickinson Police Department; League City Police Department; Pearland Police Department; Pasadena Police Department; Texas City Police Department; Harris County Precent #2; Brazoria County Sheriff’s Office; Fort Bend County Sheriff’s Office; Liberty County Sheriff’s Office; and the Texas National Guard.  This case was prosecuted by Assistant U.S. Attorneys John B. Ross and Jonathan C. Lee.

Three Cuban nationals were sentenced for sex trafficking and related crimes in strip clubs in the Houston area.

Rasiel Gutierrez Moreno, 38, Hendry Jimenez Milanes, 39, and Rafael Mendoza Labrada, 29, were each sentenced to 210 months in prison and to pay $451,298 in restitution, 120 months and $359,108 in restitution, and time served of 34 months, respectively.

Gutierrez Moreno pleaded guilty to sex trafficking and interstate travel in aid of racketeering Oct. 28, 2021. As part of his plea agreement, Gutierrez Moreno admitted to bringing women from Cuba to the United States and imposing on them inflated smuggling debts as high as $30,000. Gutierrez Moreno forced the women to work in Houston-area strip clubs, such as Michaels’ International, where they danced and engaged in commercial sex acts with club patrons, providing all the proceeds to Gutierrez Moreno to pay down their debt. The defendant further acknowledged smuggling and imposing debts to coerce approximately 20 other women in this manner.

Gutierrez Moreno admitted that, to keep Victim 1 under his control while she worked for him, he bragged about his acts of violence against other women and their families. On one occasion, Gutierrez Moreno beat another woman shortly before Victim 1 arrived at his home and ensured that Victim 1 observed that woman’s injuries. When Victim 1 escaped Gutierrez Moreno, the defendant contacted her family in both Miami and Cuba to demand that she return to work and finish paying her debt to him.

Jimenez Milanes pleaded guilty on Jan. 10, 2022, to coercion and enticement, and Mendoza Labrada pleaded guilty on April 30, 2021, to interstate travel in aid of racketeering.

“These defendants cruelly used violence, threats of violence, and false debts to force vulnerable victims to engage in commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This kind of sex trafficking scheme is unlawful, dehumanizing and terrorizing to the women unable to break free. The Justice Department is committed to the vigorous prosecution of those who prey upon, abuse and exploit others for their own financial benefit.”

“These human smugglers terrorized female migrants, using Houston’s strip clubs combined with psychological threats and sexual violence for their personal financial gain,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “The victims came to the United States in search of a new life, were especially vulnerable, and the defendants took advantage of that. The sentences imposed today send a strong message that the Southern District of Texas will not tolerate those who smuggle, threaten and abuse the vulnerable.”

“The court’s sentence today sends a strong message: The Diplomatic Security Service is committed to making sure that those who commit sex trafficking face consequences for their criminal actions,” said Special Agent in Charge John Keith of the Department of State’s Diplomatic Security Service (DSS) Houston Field Office. “DSS’ strong relationship with the Department of Justice and other law enforcement agencies around the world continues to be essential in the pursuit of justice.”

“Homeland Security Investigations (HSI) will always remain dedicated and focused on the identification and recovery of the victims of human trafficking. We prioritize not only the safe rescue of these victims, but work with our partners to provide them with resources necessary to help them deal and cope with their experience,” said Special Agent in Charge Anthony Salisbury of HSI Miami. “We are committed to working with our local, state and federal law enforcement partners to put any human trafficker who soullessly preys on victims of this crime to put them behind bars.”

The DSS investigated the case as part of the Human Trafficking Rescue Alliance (HTRA), with the assistance of HSI Miami and the Department of Labor Wage and Hour Division.

Established in 2004, the U.S. Attorney’s Office in Houston formed HTRA to combine resources with federal, state and local law enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those survivors who the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

Assistant U.S. Attorney Sherri Zack for the Southern District of Texas and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.

DALLAS – U.S. Customs and Border Protection (CBP) officers at Dallas/Fort Worth International Airport seized five counterfeit Richard Mille watches originating from Hong Kong.

Officers seized the shipment of luxury watches destined to an individual in Oklahoma.  With items such as these, officers work with import specialists from CBP’s Centers of Excellence and Expertise (CEE) to determine if the watches are counterfeit. Had the watches been genuine they would have been valued at over $3 million.

Counterfeit watches are made with inferior materials that lack the quality of genuine products and do not adhere to safety requirements.  Consumers should be aware that purchasing counterfeit watches online could expose them to internet security risks, such as malware or ransomware, and could compromise their personal data and financial information shared during the purchase.

“CBP officers have experience and expertise in detecting counterfeit products,” said Dallas Area Port Director Jayson Ahern.  “Their focus on intercepting fake goods protects consumers from purchasing items that may ultimately fund criminal organizations and activities such as forced labor and human and drug trafficking.”

On a typical day in fiscal year 2022, CBP seized $8 million worth of products with Intellectual Property Rights violations.

CBP has established an educational initiative at U.S. airports and online to raise consumer awareness and conscientiousness about the consequences and dangers that are often associated with the purchase of counterfeit and pirated goods.  Information about the Truth Behind Counterfeits public awareness campaign is available at www.cbp.gov/fakegoodsrealdangers.

If you have any suspicion of or information regarding suspected fraud or illegal trade activity, please report the trade violation to e-Allegations Online Trade Violation Reporting. System or by calling 1-800-BE-ALERT.

Report Intellectual Property Rights (IPR) violations to the National Intellectual Property Rights Coordination Center at https://www.iprcenter.gov/referral/ or by telephone at 1-866-IPR-2060.

CBP conducts operations at ports of entry throughout the United States, and regularly screens arriving international passengers and cargo for narcotics, weapons, and other restricted or prohibited products. CBP strives to serve as the premier law enforcement agency enhancing the Nation’s safety, security, and prosperity through collaboration, innovation, and integration.

Photo cutline:  CBP officers in Dallas seized these counterfeit luxury watches with a MSRP of over $3 million.

CHICAGO– On June 4, at Chicago O’Hare’s International Mail Facility, U.S. Customs and Border Protection (CBP) officers inspected a shipment manifested as ‘Fashion Sunglasses’ and found a lot more than pairs of glasses. The shipment instead contained sunglasses as well as designer socks and luxury brand watches, all deemed to be inauthentic and bearing counterfeit marks, by CBP’s Centers of Excellence and Expertise, the agency’s trade experts.

CBP officers examined the shipment to determine the admissibility of the goods and found 36 pairs of designer sunglasses bearing counterfeit trademarks of designers like Louis Vuitton, Versace, Chanel, and others. Officers also found 25 pairs of socks bearing counterfeit Gucci, Hermes, Louis Vuitton, and Dior trademarks.

Sunglasses and socks were not the only thing officers seized. Officers intercepted 22 watches bearing the counterfeit trademarks of Franck Muller, Patek Phillipe, Adidas, and Rolex. The shipment was arriving from Thailand and was heading to a residence in Bedford, Indiana. The merchandise would have been worth a total of almost $638,000, Manufacturer’s Suggested Retail Price, had the goods been genuine.

“CBP protects honest trade and hardworking businesses,” said LaFonda D. Sutton-Burke, Director, Field Operations, Chicago Field Office. “Counterfeit goods defraud consumers and businesses. Our officers are dedicated to the CBP mission and work diligently for American consumers by stopping the flow of illegitimate and pirated merchandise.”

The rapid growth of e-commerce enables consumers to search for and easily purchase millions of products through online vendors, but this easy access gives counterfeit and pirated goods more ways to enter the U.S. economy. U.S. consumers spend more than $100 billion every year on intellectual property rights infringing goods, falling victim to approximately 20% of the counterfeits illegally sold worldwide. Counterfeit costume jewelry bearing famous brands such as Chanel, have been found to contain lead and other toxic materials which are dangerous to human health.

“Counterfeiters easily hide in plain sight on online marketplaces. They dupe shoppers into buying low quality and dangerous counterfeits online,” said Michael Pfeiffer, Chicago’s Acting Area Port Director. “CBP employees work tirelessly to protect our economy and consumers every day.”

CBP has established an educational initiative to raise consumer awareness about the consequences and dangers associated with purchasing counterfeit and pirated goods online or in stores. More information about this initiative is available at www.cbp.gov/fakegoodsrealdangers. To report suspected counterfeits, visit CBP’s online e-Allegations portal or call 1-800-BE-ALERT.

Brand owners wishing to partner with CBP to prevent the importation of counterfeit and substandard goods should visit https://iprr.cbp.gov/s/ for information about the e-Recordation program.

For more ways to protect yourself from counterfeit and pirated goods, visit https://www.stopfakes.gov/.

Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Brandon Albanito (37, Cape Coral) has pleaded guilty to a six-count information charging him with possession of a controlled substance (fentanyl) with the intent to distribute it, two counts of possessing counterfeit drugs for sale, possessing parts used to manufacture counterfeit drugs, possessing a firearm as a convicted felon, and bank fraud. Albanito faces a maximum penalty of 30 years in federal prison for the bank fraud, up to 20 years’ imprisonment for the controlled substance offenses, up to 15 years on the firearms offense, and lesser penalties for the counterfeit drug charges.  Albanito has agreed to forfeit $97,146.95, traceable to the fraud offense, and the other items he possessed illegally, including a pill press and firearms. Albanito is also required to make full restitution to the financial institution which was the victim of his fraud scheme.

According to court documents, in March 2021, Albanito defrauded his federally insured bank with a scheme involving falsely disputed cash transfers which he had authorized. Albanito illegally obtained $97,146.95 through the scheme. In furtherance of its investigation into his fraud, the U.S. Secret Service executed a search warrant at Albanito’s Cape Coral residence in January 2023. Upon entry into the residence, law enforcement observed a large, commercial-grade pill press in the garage and hundreds of counterfeit oxycodone pills on a nearby shelf. The counterfeit pills, which appeared identical to prescription oxycodone pills, were found to contain fentanyl.

Law enforcement obtained a second warrant permitting them to search for and seize evidence related to drug manufacturing and distribution. During this search, they seized a five-gallon bucket containing approximately 30 pounds of counterfeit alprazolam pills (which actually contained the designer drug clonazolam), a five-gallon bucket containing approximately 20 pounds of pill binding agent, pill dies (i.e. tooling used by a pill press to create pills), and two firearms within the residence. DNA testing conducted on both firearms determined that Albanito had possessed them. Albanito was previously convicted in two federal cases (2011) involving money laundering, drug distribution, creating false identification documents, and possessing a firearm as a felon. As such, he is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the United States Secret Service, the United States Food and Drug Administration, the Cape Coral Police Department, with assistance from the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.

USA-IT partner Philip Morris International and County Attorney for Maricopa County Rachel Mitchell pen a joint op-ed on the important role public-private partnerships play in combating illegal trade.

“Working with United to Safeguard America from Illegal Trade, also known as USA-IT, has allowed Arizona and Maricopa County to better understand national trends and provide critical information to business owners, policy makers, and community leaders about how to best protect our community.”

“We are proud to partner with USA-IT and their efforts to create national partnerships between public and private sectors to address this critical issue. Combining the expertise of more than 85 organizations, they are leading the way to protect retail business across the country.”

“Counterfeiting, organized retail crime, and illicit trade are a real and growing threat to Arizona businesses, Arizona taxpayers and Arizona families. Solid relationships between community partners – business leaders, trade alliances, law enforcement, and prosecutors – are our best bet for creating strong policies and taking strong action to crack down on and punish the perpetrators of these crimes.”

Read more here.

ATLANTA – Two Georgia Department of Corrections inmates, Carmelo Reyes-Lozano and Bautista Toledo-Ramirez, have been sentenced to federal prison for their roles in trafficking large quantities of methamphetamine.

“Keeping our citizens safe by combatting illegal distribution of dangerous drugs within and outside prisons is a top priority of this office,” said U.S. Attorney Ryan K. Buchanan. “These defendants and their 12 conspirators trafficked a staggering amount of illegal narcotics. Their prison sentences reflect the seriousness of their conduct and the grave danger posed to communities impacted by their drug trafficking.”

“Regardless of how sophisticated these criminal organizations think they are, they’re no match for the professionalism and dedication of the DEA,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division. “This case brought 14 people to justice and cut off a significant supply chain for methamphetamine.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: During a federal wiretap investigation in the summer of 2019, the Drug Enforcement Administration (DEA) intercepted several inmates in Dooley State Prison and Washington State Prison using contraband cell phones to discuss narcotics deals. In response, the DEA in February through April 2020, extended the investigation and discovered that Carmelo Reyes-Lozano and Bautista Toledo-Ramirez served as leaders of a drug trafficking organization and were directing a series of drug transactions in the Atlanta area from their prison cells.

On February 15, 2020, agents intercepted communications between Reyes-Lozano and co-defendant Luis Carlos Vite-Garcia discussing a large drug shipment that arrived in the Atlanta area. Federal agents were then able to identify an address in Rex, Georgia being used as a “stash house” for narcotics. Agents searched the stash house pursuant to a warrant and discovered approximately 588 kilograms of methamphetamine (crystal and powder form), approximately 100 gallons of liquid methamphetamine in the process of being converted to a crystal form, a drug ledger, and a Mossberg 500 shotgun. Investigators saw siblings Hector Hugo Miranda-Fernandez (“Miranda”) and Jessie Miranda-Fernandez (“Fernandez”), who conspired with Reyes-Lozano and Toledo-Ramirez, at the residence and arrested Fernandez later that evening.

The next day, agents intercepted a conversation between Reyes-Lozano and Miranda, during which Miranda stated that he was fleeing to Mexico due to the DEA’s discovery of the stash house and his brother’s arrest. On February 20, 2020, agents learned that Miranda was in Texas and traveling to the border. That afternoon, officers with the Encinal Police Department in Texas located and arrested Miranda.

On February 28, 2020, the DEA intercepted another set of communications, this time between Toledo-Ramirez and co-defendant Delshawn Morrow. During the calls, the men discussed plans to smuggle methamphetamine into Washington State Prison. Utilizing intel from these intercepts, investigators arrested co-defendant Bertha Daniels the following day as she entered the prison with approximately 180 grams of methamphetamine hidden on her person. The investigation revealed a video recording of co-defendant Jhojana Pujol delivering the drugs to Daniels in a motel parking lot near the prison on behalf of Toledo-Ramirez.

On March 23, 2020, the DEA intercepted additional communications indicating that Toledo-Ramirez and Reyes-Lozano were coordinating a multi-kilogram methamphetamine deal with co-defendant Jason Lloyd Barnum using co-defendant Jean Pierre as an intermediary. Investigators learned that Pierre was a prolific marijuana trafficker who had supplied several of Toledo-Ramirez’s customers in the past. The following day, co-defendants Vite-Garcia, Carlos Andres-Vite, and Ramon Mora-Montalvo delivered approximately four kilograms of methamphetamine to Barnum. The drugs had been stored at Vite-Garcia’s stash house in Lawrenceville, Georgia. Barnum was arrested with those drugs after he traveled from Florida to the Atlanta area in a vehicle that Pierre owned.

On March 30, 2020, DEA agents intercepted more telephonic communications in which co-defendant Lourdes Ayala-Cruz called Reyes-Lozano to coordinate the purchase of a kilogram of methamphetamine for co-defendant Jose Paralta-Sanchez. Ayala-Cruz and Paralta-Sanchez drove from North Carolina to the Atlanta area to complete the deal. The transaction occurred on April 1, 2020, in the parking lot of a hardware store in Atlanta, and the drugs were delivered to Paralta-Sanchez by Mora-Montalvo. The Gaston County, North Carolina, Police Department arrested Ayala-Cruz with the drugs as she drove back to her home in North Carolina.

On April 6, 2020, investigators arrested Vite-Garcia, Andres-Vite, and Mora-Montalvo en route from Decatur, Georgia to the stash house in Lawrenceville with approximately 10 kilograms of methamphetamine. The DEA searched the Lawrenceville residence that day pursuant to a warrant. During the search, federal agents seized more methamphetamine, approximately two kilograms of heroin, a digital scale, two firearms, and over $22,000 in U.S. currency.

For his role in the conspiracy, Reyes-Lozano, 34, of Jalisco, Mexico, received a sentence imposed by U.S. District Judge Steven D. Grimberg of 17 years, six months in prison, followed by 10 years of supervised release. Reyes-Lozano was convicted on October 19, 2021, after he pleaded guilty.

Bautista-Toledo, 42, of Michoacán, Mexico, received a sentence of 23 years in prison, followed by 12 years of supervised release. Bautista-Toledo was convicted on August 10, 2022, after pleading guilty just days before his trial was set to begin. Reyes-Lozano’s and Bautista-Toledo’s federal sentences will run consecutive to the state prison sentences the men are already serving.

The defendants’ 12 conspirators previously entered guilty pleas for their roles in the drug trafficking conspiracy and received the following sentences imposed by Judge Grimberg:

• Hector Hugo Miranda-Fernandez, 36, of Jalisco, Mexico, was sentenced to eleven years and one month in prison, followed by five years of supervised release.

• Jessie Miranda-Fernandez, 23, of Atlanta, Georgia, was sentenced to four years and nine months in prison, followed by five years of supervised release.

• Luis Carlos Vite-Garcia, 39, of Reynoso, Mexico, was sentenced to 15 years and eight months in prison, followed by 10 years of supervised release.

• Ramon Mora-Montalvo, 29, of Reynoso, Mexico, was sentenced to three years and five months in prison, followed by five years of supervised release.

• Carlos Andres-Vite, 23, of Reynoso, Mexico, was sentenced to three years and 10 months in prison, followed by five years of supervised release.

• Jhojana Pujol, 26, of Boston, Massachusetts, was sentenced to time served in prison, followed by five years of supervised release.

• Delshawn Morrow, 45, of Thomasville, Georgia, was sentenced to 14 years in prison to run consecutive to any sentence he is currently serving, followed by four years of supervised release.

• Bertha Mae-Daniels, 47, of Thomasville, Georgia, was sentenced to 12 months and one day in prison, followed by five years of supervised release.

• Jason Lloyd Barnum, 42, of Irvington, New Jersey, was sentenced to 10 years and one month in prison, followed by five years of supervised release.

• Jose Paralta-Sanchez, 53, of Michoacán, Mexico, was sentenced to five years and 10 months in prison, followed by five years of supervised release.

• Lourdes Suyapa Ayala-Cruz, 44, of Choloma Cortez, Honduras, was sentenced to three years and one month in prison, followed by five years of supervised release.

• Jean Pierre, 46, of Irvington, New Jersey, was sentenced to three years and one month in prison, followed by five years of supervised release.

This case was investigated by the Drug Enforcement Administration, with assistance from the Georgia State Patrol, Gaston County, North Carolina, Police Department and Encinal, Texas, Police Department.

Assistant U.S. Attorneys Rebeca M. Ojeda and C. Brock Brockington, and former Assistant U.S. Attorneys Miguel R. Acosta and Scott McAfee, prosecuted the case.

This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

A Florida resident and dual citizen of the United States and Turkey pleaded guilty yesterday in the District of New Jersey to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment.

According to documents filed in this case and statements made in court, Onur Aksoy, 39, of Miami, ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (collectively, the “Pro Network Entities”), that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. Moreover, the Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.

Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.

Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier.

Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

Aksoy pleaded guilty to (1) conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud and (2) mail fraud. He is scheduled to be sentenced on Nov. 6, and under the plea agreement that the court conditionally accepted yesterday pending sentencing, faces a sentence of four to six and a half years in prison. Also pursuant to the plea agreement, Aksoy must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. The court will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna for the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Ricky J. Patel of the HSI Newark Field Office made the announcement today.

HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward for the District of New Jersey are prosecuting the case.

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.

LOS ANGELES – An Inland Empire resident is expected to be arraigned this afternoon on federal charges alleging the use of counterfeit postage to ship millions of parcels as part of a fraudulent scheme that caused the United States Postal Service (USPS) to suffer losses over the past six months estimated to be more than $60 million.

Lijuan “Angela” Chen, 50, of Walnut, was taken into custody Tuesday afternoon by inspectors with the United States Postal Inspection Service (USPIS) and IRS Criminal Investigation.

The criminal complaint filed May 22 charges Chen with two counts: conspiracy to defraud the United States, and possession and use of counterfeit postage.

“The evidence obtained in the investigation shows that Chen is operating a business which provides shipping and postage services to businesses, including e-commerce vendors operating out of China, that seek discounted USPS rates for mailing their products within the United States,” according to the affidavit in support of the complaint. “Multiple examinations conducted by USPS and USPIS staff have revealed that the vast majority of the postage used by Chen and her business to ship goods within the United States is counterfeit.”

Chen’s business, which is based in City of Industry, received parcels from the vendors and others, applied shipping labels showing postage purportedly paid, and then arranged for the parcels to be transferred to USPS facilities to be shipped across the nation. The investigation in this case has revealed that the shipping labels were fraudulent and that they included, among other red flags, “intelligent barcode data” from previously mailed items. Investigators also determined that the meter numbers on many of the shipping labels, all of which indicated that they had been purchased and printed in 2023, related to postage meters known to have been discontinued in 2020, according to the complaint. On yet other postage labels used by Chen’s business, information contained in the tracking barcode was inconsistent with other items of information on the label.

A USPS analyst estimates that between November 1, 2022, and April 30, 2023, Chen and her employees shipped over 9 million mail parcels containing counterfeit postage, resulting in estimated revenue losses to the USPS of over $60 million, the complaint states.

Chen’s shipping business was previously operated by her husband, who left for China two days after being interviewed by Postal inspectors in November 2019, according to the complaint.

A complaint contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The two charges in the complaint each carry a statutory maximum sentence of five years in federal prison.

The United States Postal Inspection Service and IRS Criminal Investigation are conducting the investigation in this matter.

Assistant United States Attorney James C. Hughes of the Major Frauds Section is prosecuting this case.

Memphis, TN – Mohammed Al-Abadi, 51, of Memphis, has been indicted and arrested for one count of trafficking in counterfeit goods and one count of causing the criminal transportation of hazardous materials by air carrier. United States Attorney Kevin Ritz announced the charges today.

According to United States Attorney Ritz and the information presented in court, from about October 1, 2019, to January 14, 2021, Al-Abadi imported counterfeit motor vehicle airbag parts from China, assembled them and then sold them on eBay to unsuspecting automobile repair shops and individual customers. Federal agents recovered more than 2,000 counterfeit airbags and parts from the defendant’s residence and place of business.

“The alleged actions of the defendant have placed unsuspecting motorists and the general public in harm’s way,” said United States Attorney Kevin Ritz. “Vehicle airbags are subject to strict quality standards which must be followed to ensure passenger safety. The defendant’s alleged actions undermined the efforts of the automobile industry and regulatory bodies to keep the public safe.”

“The diligent and extensive investigative work by our special agents led to the discovery of the sale of fraudulent, counterfeit airbags, sold by bypassing regulatory oversight meant to keep dangerous and ineffective products out of the U.S. market,” said Special Agent in Charge Rana Saoud, HSI Nashville. “The defendant will now have to answer for his alleged criminal actions that put consumers lives at risk.”

“Counterfeit air bags are not regulated or tested to ensure they meet federal safety standards, and when transported and used by unsuspecting consumers, they can be unsafe and lead to potentially grave consequences,” said Todd Damiani, Special Agent in Charge, Department of Transportation Office of Inspector General, Southern Region. “The indictment and arrest handed down demonstrates the continuous coordination with our federal and prosecutorial partners to curtail the flow of these dangerous and illegal automobile products into the United States.”

If convicted, Al-Abadi faces up to ten years imprisonment and a fine of two million dollars for trafficking in the counterfeit airbags and up to five years’ imprisonment and a fine of $250,000 for causing the transportation of hazardous materials by air carrier. Both charges also carry a period of up to three years supervision following release from imprisonment. There is no parole in the federal system.

Members of the public are reminded that an indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt.

This case is being investigated by Homeland Security Investigations and the United States Department of Transportation-Office of Inspector General.

Assistant United States Attorney Raney Irwin is prosecuting this case.

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.

LOUISVILLE, KY— May 8 was a busy night for U.S. Customs and Border Protection (CBP) officers in Louisville. CBP officers in Louisville seized three shipments containing various luxury items. From handbags, to jewelry, to Rolex watches, all were deemed to be inauthentic and bearing counterfeit marks, by CBP’s Centers of Excellence and Expertise, the agency’s trade experts.

CBP officers examined all three shipments to determine the admissibility of the goods and discovered they all contained inauthentic luxury items. The first shipment contained 1,438 necklaces bearing counterfeit Van Cleef & Arpels trademarks. The necklaces, arriving from Hong Kong and heading to a residence in Miami, would have been worth a total of $2.18 million, Manufacturer’s Suggested Retail Price (MSRP), had they been genuine.

CBP officers inspected a second parcel originating from Hong Kong and found 10 fake Rolex watches. This shipment was heading to a residence in Ontario, Canada. Had the watches been real, the MSRP would have been worth a total of $102,500.

The final package was also from Hong Kong and was headed to a P.O. Box in Laredo, Texas. Inside, officers found 14 fake Louis Vuitton handbags, and over 1,400 pairs of earrings bearing inauthentic logos representing Chanel, Gucci, Louis Vuitton, Tiffany & Co., Versace, Tous, Tory Burch, and Disney brands. Officers also found over 200 necklaces bearing inauthentic logos representing Chanel, Gucci, and Louis Vuitton brands. The MSRP for this shipment would have been $812,510, had the goods been authentic.

“These types of seizures happen every night. Our officers are very well trained and vigilant in stopping these illegal shipments from reaching their destinations,” said LaFonda Sutton-Burke, Director, Field Operations-Chicago Field Office. “Whether it is Intellectual Property Right violations, narcotics, unapproved items or counterfeit products our officers will continue to protect our local communities and our ports of entry.”

The rapid growth of e-commerce enables consumers to search for and easily purchase millions of products through online vendors, but this easy access gives counterfeit and pirated goods more ways to enter the U.S. economy. U.S. consumers spend more than $100 billion every year on intellectual property rights (IPR) infringing goods, falling victim to approximately 20% of the counterfeits illegally sold worldwide. Counterfeit costume jewelry bearing famous brands such as Chanel, have been found to contain lead and other toxic materials which are dangerous to human health.

“This is just another example of the work our officers do to protect consumers and the U.S. economy,” said Thomas Mahn, Port Director, Louisville. “As consumers increasingly purchase from online or third-party vendors, our officers are at the frontline to guard against defrauders expecting to make money selling fake merchandise.”

CBP has established an educational initiative to raise consumer awareness about the consequences and dangers associated with purchasing counterfeit and pirated goods online or in stores. More information about this initiative is available at www.cbp.gov/fakegoodsrealdangers. To report suspected counterfeits, visit CBP’s online e-Allegations portal or call 1-800-BE-ALERT.

Brand owners wishing to partner with CBP to prevent the importation of counterfeit and substandard goods should visit https://iprr.cbp.gov/s/ for information about the e-Recordation program.

For more ways to protect yourself from counterfeit and pirated goods, visit https://www.stopfakes.gov/.

Follow CBP on Twitter @CBPChicago and @DFOChicago.

ATLANTA – Esteban Niere has been sentenced for conspiring to distribute cocaine and methamphetamine.  Niere was a member of a drug trafficking organization operating in southwest Atlanta that was successfully disrupted following a federal, state, and local law enforcement investigation.

“This group of drug traffickers targeted vulnerable communities in our district for distributing illegal narcotics,” said U.S. Attorney Ryan K. Buchanan.  “Through the diligent efforts of our federal, state, and local law enforcement partners, we dismantled the organization’s distribution chain and prosecuted the suppliers.  This case demonstrates our commitment to removing dangerous drugs from our streets as well as the dealers who peddle them.”

“The DEA is committed to deploying resources to combat and interrupt the dangerous drug trafficking organizations that have set up business in the Atlanta area,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “We will continue to work aggressively to hold accountable those who are trafficking dangerous drugs.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2019, DEA special agents identified a prolific drug trafficker, Kevin Clark, who coordinated multiple narcotics transactions in and around his residence in southwest Atlanta. Through an investigation that followed, law enforcement was able to disrupt and eventually dismantle a drug trafficking organization comprising Clark’s sources-of-supply, including Esteban Niere, Alejandro Elias-Miranda, and Eduardo Gutierrez, and mid-level traffickers, including Christopher Jones, Christopher Allen, and Tierre Freeman.  Law enforcement also seized multiple vehicles, firearms, cash, and jewelry, which were used in the commission, or purchased with the proceeds, of the offenses.

Each of the following defendants in the case pleaded guilty to the charge of drug trafficking conspiracy and received the following sentences imposed by U.S. District Judge Michael L. Brown:

• Kevin Clark, 46, of Atlanta, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of seven years, three months in prison, to be followed by five years of supervised release.

• Esteban Niere, a/k/a “Perfecto Neri-Diaz,” 50, of San Luis Potosi, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of ten years in prison, to be followed by five years of supervised release.

• Eduardo Gutierrez, a/k/a “Santos Campos-Rios,” 43, of Morelia, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of sentence of six years, eight months in prison, to be followed by five years of supervised release.

• Christopher Jones, 42, of Norcross, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 15 years in prison, to be followed by 10 years of supervised release.

• Tierre Freeman, a/k/a “Tierre Ford,” 46, of Stockbridge, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 10 years in prison, to be followed by four years of supervised release.

• Christopher Allen, 48, of Austell, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years in prison, to be followed by four years of supervised release.

• Lamon Brown, 50, of Jonesboro, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years, seven months in prison, to be followed by three years of supervised release.

• Alejandro Elias-Miranda, 37, of Toluca, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of six years, eight months in prison, to be followed by eight years of supervised release.

This case was investigated by the Drug Enforcement Administration, the U.S. Marshals Service, and the Georgia Bureau of Investigation, with valuable assistance provided by the Georgia State Patrol, Atlanta Police Department, Gwinnett County Police Department, Henry County Police Department, Douglasville Police Department, Rockdale County Sheriff’s Office, Cartersville Police Department, Forsyth County Sheriff’s Office, Covington Police Department, Troup County Sheriff’s Office, and the Lee County Sheriff’s Office.

Assistant U.S. Attorney C. Brock Brockington prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

A little over two weeks ago, I announced that the Justice Department had taken significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world: the Sinaloa Cartel.

I said then that the Justice Department is doing everything in our power, and using every authority we have, to bring those responsible for the fentanyl epidemic to justice.

That includes holding accountable the drug traffickers who use the dark web to commit their crimes.

Drug traffickers are increasingly turning to the dark web to sell illegal drugs in exchange for cryptocurrency. They may advertise their drugs on darknet marketplaces as brand name pharmaceuticals. But in reality, the pills are often counterfeit and laced with fentanyl.

The drug traffickers are confident that, by operating anonymously on the dark web, they can operate outside the bounds of the law.

They are wrong.

I am joined today by FBI Deputy Director Paul Abbate, DEA Principal Deputy Administrator Lou Milione, Chief Postal Inspector Gary Barksdale, IRS-CI Chief Jim Lee, and FDA Investigative Services Division Chief Daniel Burke.

We are here today to announce the results of an unprecedented international enforcement operation led by the FBI – known as Operation SpecTor – against traffickers of fentanyl and other drugs who operate on the dark web.

Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web.

It involved agencies across the federal government, along with our partners at Europol and Eurojust, and law enforcement agencies in eight foreign countries. It was led by the Department’s Joint Criminal Opioid and Darknet Enforcement – or JCODE – team.

Across the U.S. and eight other countries, Operation SpecTor resulted in a total of 288 arrests and the seizure of 117 illegal firearms, 850 kilograms of drugs, and $53.4 million dollars in cash and cryptocurrency.

This represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web.

Here in the United States, our Operation SpecTor investigations involved the FBI, DEA, ATF, and more than 30 U.S. Attorneys’ offices – as well as our partners at other federal agencies.

In the United States, we arrested 153 defendants, seized 104 illegal guns, and seized over 200,000 pills, including those containing fentanyl.

To give just three examples of the cases that made up this massive operation since it began in October 2021:

In the Central District of California, a defendant was charged with drug and weapons offenses for his role in leading an organization that obtained bulk fentanyl; operated labs that used high-speed pill presses to create pills containing fentanyl and methamphetamine; and sold millions of pills to thousands of customers on the darknet.

In the Southern District of Florida, we secured the conviction of an individual who distributed narcotics, including fentanyl, on various dark web marketplaces. That defendant possessed a list of over 6,000 customers across the United States.

And in the Eastern District of California, two individuals were charged with drug and money laundering offenses for their role in selling tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency on the dark web.

I am extremely grateful to the agents, prosecutors, analysts, and staff across the Department who participated in this operation –including the FBI and its JCODE team, the DEA and ATF, our U.S. Attorneys’ Offices and OCDETF, and multiple sections of the Criminal Division – including the Computer Crime and Intellectual Property Section,  the Money Laundering and Asset Recovery Section, the Narcotic and Dangerous Drug Section, the Fraud Section, and the Office of International Affairs.

I also want to thank our partners across the federal government for their assistance in this operation – including the U.S. Postal Inspection Service, IRS Criminal Investigation, Homeland Security Investigations, U.S. Customs and Border Protection, the Naval Criminal Investigative Service, the FDA Office of Investigations, and the Treasury Department’s Financial Crimes Enforcement Network.

I am likewise grateful to our partners at Europol and Eurojust, and to our law enforcement partners in Austria, France, Germany, the Netherlands, Poland, Brazil, the United Kingdom, and Switzerland – without whom this operation would not have been possible.

The Justice Department is cracking down on criminal cryptocurrency transactions and the online criminal marketplaces that enable them.

In 2021, Deputy Attorney General Lisa Monaco announced the results of another international operation, Operation DarkHunTor, which involved the arrests of 150 Darknet drug traffickers and the seizure of $32 [million] in cash and cryptocurrencies.

Last year, together with our German law enforcement partners, we seized Hydra Market, the world’s largest and longest-running illegal marketplace on the dark web.

Earlier this year, we led a coordinated international operation against Genesis Market, a major criminal marketplace that enabled cybercriminals to victimize individuals, businesses, and governments around the world.

And today, we have announced an unprecedented international enforcement action against drug traffickers on the dark web.

This work will continue.

Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but  the Justice Department will find you and hold you accountable for your crimes.

The Justice Department, together with our American and international partners, will continue to disrupt and dismantle darknet markets.

We will continue to illuminate the dark web.  And we will bring to justice those who try to hide their crimes there. I am now pleased to turn the podium over to FBI Deputy Director Abbate.

ANCHORAGE, ALASKA – On April 11, 2023, Judge Ralph Beistline of the U.S. District Court for the District of Alaska sentenced a Mexican national to 14 years imprisonment followed by five years of supervised release for his role as the head of a drug trafficking organization that spanned multiple states. Judge Beistline also sentenced a lower-level coconspirator based in Alaska to a term of seven years of imprisonment on April 12, 2023.

According to court documents, Rene Alejandro Pompa-Villa pleaded guilty to continuing criminal enterprise and money laundering conspiracy for his role in a drug trafficking and distribution enterprise that stretched from Alaska to Arizona, California, Massachusetts, Michigan, Nevada, New Mexico, New York, Ohio and Pennsylvania. From 2016 through October 2020, Pompa-Villa, the leader of the organization, regularly mailed large amounts of drugs to distributors throughout the country, including mailing parcels to drug dealers in Anchorage, and deposited hundreds of thousands of dollars of drug proceeds into various bank accounts. During the nearly three-year investigation, law enforcement officers seized about six kilograms of heroin, four kilograms of methamphetamine and four kilograms of fentanyl sent through the mail. The Alaska drug distributor, Kyle Redpath, pleaded guilty to conspiracy to distribute controlled substances for receiving drugs through the mail from the drug trafficking organization. Redpath also deposited thousands of dollars into bank accounts owned by the organization.

The continuing criminal enterprise statute that Pompa-Villa was convicted of violating applies to high-level leaders of large and organized criminal organizations.

Pompa-Villa and Redpath were indicted in April 2021 along with 8 other members of the enterprise located in Anchorage, San Diego, and Tucson. Dustin Noonan was sentenced to 21 years imprisonment on March 23, 2023. Tyler Landroche was sentenced to 70 months imprisonment on February 23, 2023.  Kimberly Renee Mackey was sentenced to 48 months imprisonment on February 22, 2023. Jessica Twigg was sentenced to time served on May 16, 2022. Carlos Camacho, Christopher Pompa-Villa, and Heydimar Marrero are awaiting sentencing. Victor Pompa-Villa remains at large.

“Today’s sentence disrupts a continuing criminal enterprise that spanned coast-to-coast and border-to-border,” said U.S. Attorney S. Lane Tucker. “The United States Attorney’s Office, in concert with our law enforcement partners, will continue to aggressively prosecute and seek justice against traffickers of fentanyl and other illegal drugs that are poisoning our communities.”

“The sentence imposed today underscores the commitment of the DEA to tirelessly pursue, and go wherever an investigation leads, to ensure those who traffic poison into our communities are held accountable,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.

“The US Postal Inspection Service will continue to aggressively investigate individuals like Pompa-Villa who use the US Mail in support of their criminal activities.” said Inspector in Charge Anthony Galetti, “This should also serve as a reminder to those who abuse our community by peddling dangerous narcotics; law enforcement will find you and bring you to justice. Cases like these don’t come together without teamwork and we thank all agencies involved.”

“A rockstar once said ‘I’ve never had a problem with drugs. I’ve had problems with the police.’ Though not a rock star, Mr. Pompa-Villa, because of his drug trafficking, also has problems with the police,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Illegal drugs are a tremendous plague on our communities. Because of that, IRS:CI will continue to work with our partners in the community and in law enforcement to stop the flow of drugs and cause as many problems for drug traffickers as possible, rockstar or not.”

U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

The U.S. Postal Inspection Service (USPIS); U.S. Department of Drug Enforcement Administration (DEA); the Internal Revenue Service (IRS); Alaska State Troopers and the Anchorage Police Department are investigating the case. The U.S. Marshals had a significant role in making the arrests and the U.S. Attorney’s Offices in Tucson and San Diego played a critical role in the indictment of this case.

Assistant U.S. Attorneys Christopher D. Schroeder and Karen Vandergaw prosecuted the case.

This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, the counterfeit pills involved in this case, known as M30s, mimic Oxycodone, but when sold on the street they routinely contain fentanyl. These tablets are round and often light blue in color, though they may be made in many colors, and have “M” and “30” imprinted on opposite sides of the pill.

USA-IT and allies discuss ORC, how it threatens our communities, and what we can do to fight back.

Alysa Erichs, USA-IT spokesperson:

“Retail crime and shoplifting are not ‘victimless crimes’,” says Alysa Erichs with United to Safeguard America from Illegal Trade (USA-IT), an organization that fights illicit commerce. “Criminals do not care who or what lies in their wake as long as they’re making money, and it affects all of us (because) organized crime groups use their profits to bolster operations, bringing more crime to our neighborhoods.”

Cara Convery, Georgia’s Gang Prosecution Unit:

“Young people are at the foundation of the organized retail piece because, if they can avoid it, older people in the gang are not going to go into the store themselves, and they’re not going to the gas station to break in the car,” Convery said. “They also, unfortunately, learn that the juvenile exposure in our criminal justice system is significantly less, so if they get somebody arrested — especially for something like shoplifting where somebody’s not looking in the bigger scheme — they’re going to be out the next morning, they may not even go to juvenile court, and that’s another worker back on the street for them to make more money the next day.”

Former FBI special agent Jonathan Gilliam:

“If you tell a 5-year-old not to put his hand in the cookie jar and then he does it and he doesn’t get in trouble or he just gets a little bit in trouble, he’s probably going do that again,” says Gilliam. “It’s a learned behavior, where you learn when you get away with it and then when you get away with it you exploit that and so if you don’t have a penalty that is adequate to lock them up or and or deter them, they’re just going to keep doing it.”

Read more here.

Amy Drumm, senior vice president of government affairs with the Michigan Retailers Association, spoke with Loss Prevention Magazine on the work that went on behind the scenes to get ORC legislation enacted in Michigan.

“MRA took the lead in coordinating the legislative efforts of having the three legislative pieces drafted, introduced, and moved through the legislative process. Our role is to speak for the retail industry at large. After talking with our members, we provided testimony before the House and Senate committees in support of the INFORM Act and real penalties for ORC crimes.”

“We built a coalition with likeminded associations to highlight the impact ORC has on not just retailers but also manufacturers in perpetuating other crimes. We worked in partnership with some of our more engaged members to educate lawmakers on the INFORM Act and the need for a statewide ORC unit within the Attorney General’s office. MRA was able to connect the dots on the three efforts and convey the message that all three pieces were needed to crack down on ORC in the state.”

“Taking a single legislative solution approach to ORC likely won’t achieve the needed results. We were successful because we pitched the three pieces together and built a strong coalition in support of the legislative changes. Gaining USA-IT’s support on our legislative changes was also extremely helpful to leverage the additional coalition and network of support focused on stopping illicit trade. [EDITOR’S NOTE: United to Safeguard America from Illegal Trade (USA-IT) is a public private sector partnership protecting Americans’ security and prosperity from black market criminals.]”

Read more here.

Mike Bailey, general counsel and director of legal reform programs for the Arizona Chamber of Commerce & Industry, discusses the dangers of illegal trade and how Arizona businesses are working together to fight back.

“Arizona business leaders have been rallying against the dangers of illegal trade, creating partnerships with national institutions and between the private and public sector to respond to this crisis. Illegal trade presents a continuing threat to Arizona’s economic prosperity and public safety, and leaders with diverse backgrounds have come together to find common solutions.”

“It’s not just money. Illegal trade puts lives at risk. Massive fentanyl seizures are commonplace. In recent weeks, a cache of fentanyl precursor chemicals was seized from a Tucson warehouse. Because of the scale and complexity of illegal trade, business leaders must create partnerships that mobilize community resources.”

“The Arizona Chamber of Commerce & Industry has been proud to support United to Safeguard America from Illegal Trade (USA-IT), a private-public partnership that protects Americans from black market criminals. Last December, the Chamber was recognized with the 2022 Award for Most Committed USA-IT Partner for its dedicated work on the frontlines of the illegal trade issue. These partnerships build upon the work of business leaders, law enforcement, and policy experts to understand the many facets of illegal trade and to develop strategies to combat them.”

Read more here.

USA-IT partners discuss the convergence of illegal trade and human trafficking.

Awaken:

“As a co-founder of the non-profit Awaken — an organization dedicated to assisting women and children victimized by sexual exploitation in Reno, Nev., Melissa Holland said legal prostitution enables the problem of the illicit trade. ‘We’re a sex tourism state,’ Holland told the USA-IT roundtable. ‘Traffickers actually love that there’s legalized prostitution in Nevada, and they find out that the laws have already done half the work of grooming for them.’”

Arizona Lodging and Tourism Association:

“There was an uptick in sex trafficking activity during the last time Phoenix hosted the Superbowl in 2015, said Kim Grace Sabow, president and CEO of the Arizona Lodging and Tourism Association. ‘These bad actors are attracted to great destinations, mega-events, and these bad actors are just following the money,’ Sabow said.”

Read more here.

USA-IT partner and president and CEO of the Pennsylvania Food Merchants Association Alex Baloga featured on why retailers are being forced to hire private security.

“According to United to Safeguard America from Illegal Trade (USA-IT), in 2021 alone retail thefts in Pennsylvania totaled nearly $5.6 billion and cost more than $510 million in state and local taxes. In a recent DVJournal podcast, Alex Baloga with the Pennsylvania Food Merchants Association talked about how “sophisticated” retail crimes like shoplifting and smash-and-grab robberies have become.”

“And, Baloga said, criminals take advantage when communities decline to enforce laws against these property crimes, moving from place to place. ‘We have seen where laws have been relaxed, there have been more brazen acts. These are organized, sophisticated criminals, not an average person who’s just down on his luck.’”

Read more here.

USA-IT spokesperson Alysa Erichs comments on the dangers of Organized Retail Crime.

“‘The tragic death of an 83-year-old store employee in North Carolina is yet another reminder that retail crime and shoplifting are not ‘victimless crimes,’ said Alysa Erichs, former acting executive associate director for Homeland Security Investigations. ‘Sadly, this is another example that criminals do not care who or what lies in their wake as long as they’re making money. It’s sick, and it affects all of us. These crimes have very real, dangerous consequences — it’s why we must work together to protect our communities.’”

“Erichs is a spokesperson for United to Safeguard America from Illegal Trade (USA-IT), a private-public partnership to fight the sale of counterfeit, illicit and stolen goods. In the past, its focus was more on cross- border contraband and fake products like fraudulent vaccines and personal protection equipment. But at a recent summit in Washington, it dedicated an entire roundtable to the growing problem of organized retail crime.”

Read more here.

USA-IT partners discuss how Organized Retail Crime and counterfeit goods impact consumers and put them at risk.

Rob Karr, president and CEO of the Illinois Retail Merchants Association:

“I think people have fallen into the habit of thinking of shoplifting as a victimless crime and it is not. It’s a high-profit center for these crimes … Somebody says, ‘Well, we should not worry that much about shoplifting.’ No, we should. Because it’s your friend and neighbor who is working at the store or managing the store, but it’s also your roads that are not getting repaired, your schools that are not getting funded properly, and when police cannot afford an extra officer on the day shift or the night shift, it impacts them.”

Jennifer Hanks, director of brand protection for the American Apparel and Footwear Association:

“Counterfeiters do not necessarily care to make the safest products possible. It’s about the money and the money laundering, the things they’re doing with those funds.”

Read more here.

USA-IT Calls on Congress to Tackle Illegal Trade

Coalition of public and private sector security experts join with Members of Congress to call for help in combating rising tide of black-market trade

WASHINGTON, DC — Today, United to Safeguard America from Illegal Trade (USA-IT)—a coalition of more than 85 national and state brand enforcement experts, law enforcement agencies, academics, and leading business organizations—hosted its second annual National Summit in Washington, D.C. At the summit, leading advocates called on Congress to embrace new policies urgently needed to combat the growing threats posed by illegal trade, including counterfeiting, smuggling, organized retail theft, and drug and human trafficking.

Representative Bennie Thompson (D, MS-02) opened the summit delivering keynote remarks. “Illicit trade not only damages our businesses and economy but can also pose health and safety risks for consumers and even undermines our security. When the government and private sector work together, hand in hand, we’re more efficient and effective at combating this threat. This is about protecting all of America.”

Senator Bill Cassidy, M.D. (R, LA)stated in his keynote remarks, “When advocates and experts bring their expertise to their congresswoman, congressman, or senator, we can make real change happen. Since speaking to this conference last year, we have made progress on countering trade-based money laundering because of experts like you pushing solutions forward.”

Additionally, coalition members held five panel discussions featuring subject matter experts from large and small companies, law enforcement, academia, and policy experts to examine the impacts of illegal trade and counterfeits. These discussion topics included:

• Overcoming challenges for protecting American innovation and competitiveness.
• Confronting the growth of organized retail crime.
• The connections between human trafficking and other forms of illegal trade.
• What more can be done to ensure gender diversity in positions of national security decision-making.

Launched in June 2021, USA-IT is working across 15 states facing critical illegal trade issues to empower local officials, law enforcement, and other leaders with new information and training programs and raising public awareness of the depth and severity of these crimes. To date, USA-IT has trained more than 33,000 law enforcement officials, hosted and attended more than 60 events, and delivered 190 briefings.

“Criminals will seize upon the opportunity to exploit any vulnerabilities in our trade and financial systems for their personal gain, with no regard for public safety. Law enforcement is doing everything they can to combat the threat that illegal trade poses to our national security, economy and public safety,” said USA-IT spokesperson and former acting executive associate director for Homeland Security Investigations, Alysa Erichs. “However, no agency can do it alone. Cooperation between the public and private sector is absolutely essential in order to successfully tackle the many aspects of illegal trade. That is why I’m so excited to be part of USA-IT. Together we can share information, expand expertise, identify trends and vulnerabilities as well as innovative solutions to prevent these criminals from getting rich and damaging the American economy.”

“Fighting these organizations for more than a decade, I’ve seen firsthand how the seemingly innocuous trafficking of illicit tobacco and nicotine products, like cigarettes and e-vapor products, has very serious consequences,” said Kristin Reif, director of government relations for Philip Morris International. “But criminals don’t just traffic in one commodity, they will traffic in anything that earns them a dollar, whether that’s luxury purses or drugs or even human beings. That’s why USA-IT is so crucial—by bringing together such a diverse group of stakeholders, we can bring this pervasive problem into lawmakers’ focus and can more effectively counter the threat of illegal trade.”

The black market is a $2.2 trillion-per-year business, and is growing. In the U.S., counterfeit goods alone rob the economy of $131 billion and 325,500 jobs, but its impacts reach much further into our society’s roots and put America’s security and prosperity in jeopardy. Revenues meant to provide essential services to Americans are robbed from taxpayers to fuel some of the world’s most dangerous criminal enterprises. Illegal trade produces counterfeit and potentially harmful consumer goods, floods our streets with deadly drugs, and encourages violence—all of which create instability in our communities, generating even more of these nefarious activities. It’s a vicious circle.

Public actors, the private sector, and civil society alike all have a role to play. Only through cooperative efforts like USA-IT can we effectively ensure a safer, more secure, and more prosperous future.

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.

Contacts

Sam Dashiell

U.S. Communications, Philip Morris International
T. +1 (202) 480 1617
E.  [email protected]

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.

The COVID-19 pandemic has revealed a pervasive issue here in Michigan that operates in the shadows at great cost to residents illegal trade. Whether it involves drugs, people, weapons, cigarettes or a knock-off pair of Adidas shoes, illegal trade is a growing problem exacerbated by COVID-19.

When the pandemic hit, criminals quickly maneuvered to flood the market with fake and inferior personal protective equipment and other COVID-related products. Since the beginning of the pandemic, online counterfeited goods have jumped nearly 40%. The roughly $1 trillion industry of transnational crime facilitated by illegal trade harms everyone and requires a united and collaborative effort to reduce the damage it inflicts on our society.

Here in Michigan, we know that our common border with Canada offers traffickers numerous opportunities. Border access points are frequently misused by drug smugglers. Prime locations like this become major conduits for illegal trade, and more hands need to be working toward stopping the influx of contraband.

Illegal trade and black market goods cause a lot of harm to our state, stealing millions of dollars from tax revenues that could be spent on improving Michigan services like infrastructure and education. For example, data from the Mackinac Center for Public Policy last year showed that Michigan loses more than $207 million in tax revenues each year due to illegal smuggling of tobacco products alone.

This is why we joined United to Safeguard America from Illegal Trade (USA-IT), a partnership of national and state brand enforcement experts, law enforcement agencies and leading business organizations dedicated to educating the public about the dangers of illegal trade.

The coalition is raising awareness in Michigan and other states across the country while leveraging our collective, vast expertise to share resources and provide training programs with local officials, law enforcement and other thought leaders to help combat these insidious acts and the criminals who commit them.

To many, buying smuggled cigarettes or knock-off sneakers may seem like victimless crimes, but they are far from it. The funds these organizations earn by selling black market goods are used to bolster their other nefarious activities. These criminals are the same criminals who traffic in weapons, drugs and even people. We cannot let this criminal activity continue to harm our communities.

As criminal enterprises continue to devise new strategies and practices to evade law enforcement, we must bring more tools to the table to keep pace with black market ingenuity.

This involves sharing knowledge of illegal trade with the public so they are aware of what happens in the shadows, while also working with law enforcement and local governments to target these operations, and empowering lawmakers, organizations and our communities with the tools needed to act.

It is clear there will not be an immediate or easy fix, and no one government or single industry can address this complex problem on its own. When facing such dynamic adversaries, it is important that we always stay prepared for the next challenge.

Through the work of partnerships like USA-IT, we can work toward holding the perpetrators of illegal trade accountable and ensure a more secure and prosperous Michigan.

Dan Papineau is the director of tax policy and regulatory affairs for the Michigan Chamber Of Commerce.

AUSTIN, October 11, 2022 – United to Safeguard America from Illegal Trade (USA-IT), in partnership with the Texas Association of Business (TAB), today hosted a statewide summit examining the challenges posed by organized retail crime and myriad other interconnected crimes undermining Texas’ security, including counterfeiting, brand integrity, and the trafficking of drugs, illicit tobacco, and other contraband.

Former Acting Secretary of the U.S. Department of Homeland Security Chad Wolf headlined today’s summit, delivering a powerful and timely keynote on the complexities of illegal trade and the many consequences this growing threat poses to our society. “No one individual, agency, or government can tackle this problem alone. Public and private sectors must work together and leverage one another’s assets and knowledge to root out illegal trade and prevent it from entering our communities, no matter its form,” stated Wolf.

The summit also featured two panels with participants who offered best practices and innovative solutions to further enhance cross-sector information-sharing and cooperation. Panelists and speakers included:

• Alysa Erichs, USA-IT Spokesperson and former Acting Executive Associate Director for
  Homeland Security Investigations (HSI) (Moderator)
• Glenn Hamer, President and CEO, Texas Association of Business
• John McCord, Executive Director, Texas Retailers Association
• Jeni Zuercher, Director, Global Brand Protection, Yeti
• Craig Westemeier, Senior Associate Athletics Director for Business Development, The
  University of Texas at Austin
• Steve Hunter, Director of Global Investigations, Walmart
• Kevin Lawrence, Executive Director, Texas Municipal Police Association
• Agent Stan Seto, Assistant Special Agent in Charge, Homeland Security Investigations
• Rania Mankarious, CEO, Crime Stoppers of Houston

As one of the largest states in the nation, Texas shares 11 land ports of entry with Mexico, which are used to move vast amounts of illegal goods to the United States. Traffickers and other criminal organizations have a long history of smuggling everything from human beings to drugs to weapons.

In 2019, Texas experienced one of the greatest increases of the number of controlled substances lost-in-transit incidents. Texas also ranks second in the U.S. in human trafficking cases, totaling 6,877 cases since 2007. In 2019 alone, federal law enforcement in Texas seized over $23 million in smuggled currency, the third most in the nation. Last year, retail thefts in Texas totaled $3.8 billion and cost more than $300 million in state and local taxes.

Crime Stoppers of Houston CEO Rania Mankarious highlighted that organized retail crime remains a top priority for their organization. “As a leading non-profit dedicated to public safety and crime prevention, we believe that crime rings are not only a major threat to our communities and law enforcement, but also have a crippling effect on society. We remain committed to working on serious issues like these to help find solutions where needed.”

“Our members are increasingly encountering challenges related to organized retail crime. Coming together with retailers, law enforcement, and other partners combating complex retail crime issues demonstrates the urgency of this crisis for the retail sector in Texas, and we feel energized to double down on our efforts to enact change this upcoming legislative session,” said John McCord, Executive Director of Texas Retailers Association and a panelist at the event.

Kristin Reif, Director of Government Affairs for Philip Morris International (PMI), who provided closing remarks said, “Illicit tobacco costs Texas more than $300 million every year in lost tax revenues. That’s money that should be going to public services but instead is lost to criminals. These criminal organizations are not only dangerous, they’re smart—evolving their operations from street corners and back alleys to e-commerce, social media, and more. Whether it’s tobacco products, sneakers, purses, or toothpaste, criminals will traffic anything that earns them a dollar, no matter who it hurts.”

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
Launched in 2021, USA-IT is a coalition of more than 85 national and state brand enforcement experts, law enforcement agencies, academics, and leading business organizations working across 15 states including Texas 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.

Contact:
Sam Dashiell
U.S. Communications, Philip Morris International
T. +1 (202) 480 1617
E. [email protected]

TYLER, Texas – A San Francisco, CA man has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

John Khuu, 27, was named in an indictment returned by a federal grand jury charging him with money laundering conspiracy.  Khuu was arraigned in federal court by U.S. Magistrate Judge John D. Love on Oct. 6, 2022.

According to the indictment, Khuu is alleged to have conspired with others to launder the proceeds of his drug trafficking organization through cryptocurrency.  The defendant allegedly distributed counterfeit pharmaceutical pills and other controlled substances on dark web markets to customers across the United States.  Customers paid for their purchases by transferring cryptocurrency, usually Bitcoin, from their dark web market customer accounts to one of Khuu’s vendor accounts.  Khuu and his co-conspirators traded the Bitcoin for U.S. currency and laundered the proceeds through hundreds of transactions and dozens of financial accounts.

During the course of the conspiracy, Khuu and his co-conspirators allegedly laundered more than $5,350,000.00.

On May 18, 2022, a federal grand jury in the Eastern District of Texas returned an indictment charging Khuu with conspiracy to commit money laundering.  On August 17, 2022, a federal grand jury in the Northern District of California returned a two-count indictment charging Khuu with unlawful importation of a controlled substance.

On August 19, 2022, agents arrested Khuu pursuant to both warrants at a residence in Garden Grove, CA.

If convicted, Khuu faces up to 20 years in federal prison on each charge.  A grand jury indictment is not evidence of guilt.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case is being investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

The COVID-19 pandemic has revealed a pervasive issue here in Michigan that operates in the shadows at great cost to residents illegal trade. Whether it involves drugs, people, weapons, cigarettes or a knock-off pair of Adidas shoes, illegal trade is a growing problem exacerbated by COVID-19.

When the pandemic hit, criminals quickly maneuvered to flood the market with fake and inferior personal protective equipment and other COVID-related products. Since the beginning of the pandemic, online counterfeited goods have jumped nearly 40%. The roughly $1 trillion industry of transnational crime facilitated by illegal trade harms everyone and requires a united and collaborative effort to reduce the damage it inflicts on our society.

Here in Michigan, we know that our common border with Canada offers traffickers numerous opportunities. Border access points are frequently misused by drug smugglers. Prime locations like this become major conduits for illegal trade, and more hands need to be working toward stopping the influx of contraband.

Illegal trade and black market goods cause a lot of harm to our state, stealing millions of dollars from tax revenues that could be spent on improving Michigan services like infrastructure and education. For example, data from the Mackinac Center for Public Policy last year showed that Michigan loses more than $207 million in tax revenues each year due to illegal smuggling of tobacco products alone.

This is why we joined United to Safeguard America from Illegal Trade (USA-IT), a partnership of national and state brand enforcement experts, law enforcement agencies and leading business organizations dedicated to educating the public about the dangers of illegal trade.

The coalition is raising awareness in Michigan and other states across the country while leveraging our collective, vast expertise to share resources and provide training programs with local officials, law enforcement and other thought leaders to help combat these insidious acts and the criminals who commit them.

To many, buying smuggled cigarettes or knock-off sneakers may seem like victimless crimes, but they are far from it. The funds these organizations earn by selling black market goods are used to bolster their other nefarious activities. These criminals are the same criminals who traffic in weapons, drugs and even people. We cannot let this criminal activity continue to harm our communities.

As criminal enterprises continue to devise new strategies and practices to evade law enforcement, we must bring more tools to the table to keep pace with black market ingenuity.

This involves sharing knowledge of illegal trade with the public so they are aware of what happens in the shadows, while also working with law enforcement and local governments to target these operations, and empowering lawmakers, organizations and our communities with the tools needed to act.

It is clear there will not be an immediate or easy fix, and no one government or single industry can address this complex problem on its own. When facing such dynamic adversaries, it is important that we always stay prepared for the next challenge.

Through the work of partnerships like USA-IT, we can work toward holding the perpetrators of illegal trade accountable and ensure a more secure and prosperous Michigan.

Dan Papineau is the director of tax policy and regulatory affairs for the Michigan Chamber Of Commerce.

ERIE, Pa. – A resident of Erie, Pennsylvania, has been sentenced in federal court to 36 months in jail on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.

Senior United States District Judge David S. Cercone imposed the sentence on David Aranda, 24.

According to information presented to the court, on or about August 25, 2021, Aranda attempted to possess with intent to distribute 368 grams, an estimated 3,000 to 3,500 counterfeit blue pills, comprised of a mixture and substance containing a detectable amount of fentanyl.

Prior to imposing sentence, Judge Cercone stated that fentanyl “is a scourge of this country” and noted the dramatically increased potency of the fentanyl pills in comparison to the prescription pills they are designed to mimic. “People are dying everyday by what you’re doing,” Judge Cercone stated to Aranda.

Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.

United States Attorney Chung commended the United States Postal Inspection Service, Drug Enforcement Administration, and Pennsylvania State Police Northwest Strike Force for the investigation leading to the successful prosecution of Aranda.

ALBANY, Ga. – A Florida resident with multiple prior state felony convictions for distributing methamphetamine pleaded guilty to a federal controlled substance charge after being caught with approximately eight kilograms of the illegal drug during a routine traffic stop when his co-defendant attempted to escape from authorities with the bag of drugs.

James E. Freitas, 48, of Winter Haven, Florida, pleaded guilty to possession with intent to distribute methamphetamine before U.S. District Judge Louis Sands today. Codefendant, Miguel L. Mora, 43, of Hanes City, Florida, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 12. Both defendants face a mandatory minimum of ten years up to a maximum of life imprisonment to be followed by at least five years of supervised release and a maximum $10,000,000 fine. Their sentencings will occur within 90 days as determined by the Court.

There is no parole in the federal system.

“The guilty plea of this reoffender is the result of the collaborative efforts between DEA and its law enforcement partners who work tirelessly to eliminate the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This defendant will now face serious time in prison.”

“I-75 is a known corridor for drug traffickers moving fentanyl, methamphetamine and other deadly drugs into communities across the southeast and beyond,” said U.S. Attorney Peter D. Leary. “Individuals caught distributing large quantities of these types of controlled substances will face federal prosecution for their crimes, which are contributing to the death and addiction of many Americans.”

According to court documents, a Lowndes County Sheriff’s Office deputy attempted to conduct a routine traffic stop for a driving violation as Freitas was traveling on I-75 on July 11, 2019. Freitas was unable to provide identification and gave conflicting information. As Frietas was standing outside the vehicle talking with the deputy, Mora climbed into the front seat and drove away in the car. Mora drove the vehicle into a field and then fled on foot into adjacent woods carrying a large bag. Mora was quickly apprehended; the bag that he carried from the car was searched and found to contain 8,099 grams of 97% pure methamphetamine with an estimated street value of $748,000. Officers found a loaded .40 caliber semi-automatic pistol with an obliterated serial number on the floorboard of the car belonging to Freitas. A search warrant executed on Freitas’ cell phone found photos of the gun, plus text and instant messages detailing both defendants travel to and from Tennessee to purchase and transport methamphetamine to a third party in Florida.

Freitas has three prior serious felony drug convictions for trafficking methamphetamine in Polk County, Florida, Circuit Court.

DEA and Lowndes County Sheriff’s Office investigated the case.

Assistant U.S. Attorney Mike Morrison is prosecuting this case.

The DEA encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com, www.CampusDrugPrevention.gov, and www.dea.gov . Also follow DEA Atlanta via Twitter at @DEAATLANTADiv

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID CINTRON, 26, of Manchester, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 78 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl.

In July 2019, the DEA’s Hartford Task Force began investigating a Mexican-based drug trafficking organization that was distributing fentanyl and heroin in Connecticut.  The investigation revealed that Cintron, Armando Gonzalez and other members of the organization received kilogram-quantities of narcotics, primarily fentanyl, from a source in Mexico, and then distributed the drug to street-level distributors.  Members of the organization delivered cash generated from the sale of narcotics to a money broker in Brooklyn, New York, who assisted in laundering the narcotics proceeds before they were transferred to leaders of the drug trafficking organization.  Between August and October 2019, investigators seized more than $200,000 in cash from members of the drug trafficking organization.

Cintron and Gonzalez used several locations to store, process and package fentanyl for street stale, including office space on Pratt Street in Hartford, an apartment in the Asylum Hill neighborhood in Hartford, and an apartment in New Britain.

Cintron, Gonzalez and three associates were arrested on federal charges on April 28, 2020.  On that date, investigators searched the New Britain apartment and seized numerous bags of suspected fentanyl, items used to process and package narcotics, a 9mm firearm, 9mm ammunition, and cash.  Cintron was located in the bathroom of his Manchester residence, flushing suspected fentanyl in the toilet.

On June 3, 2020, a grand jury returned an indictment charging Cintron, Gonzalez and eight others with narcotics distribution and money laundering offenses.  On May 11, 2022, Cintron pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl.  He has been detained since his arrest on April 28, 2020.

Gonzalez, of New Britain, pleaded guilty to related charges and, on June 27, 2022, was sentenced to 120 months of imprisonment.

The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.  Agencies assisting the investigation include the DEA New York Organized Crime Drug Enforcement Task Force Strike Force and the New York Police Department.

This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program.  OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Earlier today, at the federal courthouse in Central Islip, Patrick Polidore was arraigned by United States Magistrate Judge Steven I. Locke on charges that he and co-defendant Dennis Wolfolk conspired to purchase and illegally transport into New York more than two dozen handguns.  Wolfolk is in federal custody at the Robert A. Deyton Detention Facility located in Lovejoy, Georgia, and will be removed to the Eastern District of New York for arraignment on the charges at a later date.

Breon Peace, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Anne T. Donnelly, Nassau District Attorney announced the charges.

“As alleged, these defendants illegally trafficked over two dozen guns across state lines, distributing them to street-level buyers in New York where at least 11 were then used in numerous violent crimes, including multiple shootings across Long Island,” stated United States Attorney Peace.  “This office and our law enforcement partners will continue to vigorously investigate and prosecute those who exploit state and federal gun laws directly leading to deadly gun violence in our communities.”

Mr. Peace thanked the United States Attorney’s Office for the Northern District of Georgia, the ATF’s Atlanta Field Division, the Nassau County District Attorney’s Office, the Nassau County Police Department, and the Hempstead Police Department for their assistance in the investigation.

“Straw purchasers undermine federal laws and enable violent criminals to obtain firearms that destroy lives and devastate communities,” said ATF Special Agent in Charge DeVito. “This investigation was initiated by the ATF Long Island Firearms Task Force after a 2020 murder in Hempstead, NY. Evidence recovered by ATF led to Polidore. As alleged, further investigation revealed he conspired to illegally traffic approximately 27 firearms from Georgia to Long Island. ATF is on the frontline in the fight against firearms trafficking alongside our partners. We will use every resource to save lives and stop the flow of illegal guns into our communities. Thank you to our law enforcement partners, including: Nassau County Police Department’s Gang Investigation Squad, Nassau County District Attorney and Hempstead Police Department for all their work and effort.”

“The arraignment of defendant Patrick Polidore and continued investigation into defendant Dennis Wolfolk is a clear example how law enforcement working together continues to arrest and prosecute these criminals to ensure the safety of our neighborhoods.  The defendants illegally transported dozens of handguns to Long Island and surrounding areas.  Some of these weapons were used in the commission of multiple shootings and other violent crimes.  We will continue to investigate all who break the law in order to reduce gun violence in all communities.  Lastly, I would like to thank all of the investigators who assisted with this investigation for their commitment and dedication to suppressing crime,” stated NCPD Commissioner Ryder.

Nassau District Attorney Donnelly said: “Illegal firearms are flooding into Long Island every day and causing untold destruction. To date, our county law enforcement partners have seized 272 weapons in 2022. As of this date last year, that number was 193. Patrick Polidore and Dennis Wolfolk are part of that problem. These defendants allegedly conspired to purchase firearms in Georgia and trafficked those weapons to Long Island, where at least 11 of them have already been recovered at crime scenes. Stemming the flow of illegal weapons into Long Island requires great partners and I thank U.S. Attorney Breon Peace; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Nassau County Police Department for their work in bringing these alleged gun runners to justice.”

As alleged in an 11-count Indictment and detailed at Polidore’s arraignment, between October 2020 and January 2021, Polidore visited numerous federally licensed retailers and acted as the straw purchaser for approximately 27 handguns, many of which were purchased in rapid succession on the same date.  For example, as alleged, on November 4, 2020, Polidore purchased six handguns at multiple locations in Georgia; on November 18, 2020, and November 23, 2020, he purchased a total of ten handguns.  On federal records that document firearms transactions, Polidore falsely affirmed that he was the actual purchaser of the weapons when, in actuality, he had conspired with Wolfolk, who, as a convicted felon, was legally prohibited from possessing a firearm, to traffic the handguns to New York, where they were distributed to street-level buyers.

At least 11 of the handguns Wolfolk transported to New York have been recovered by law enforcement at crime scenes in and around Long Island.  For example, shortly after Polidore’s November 4, 2020 purchase of six handguns from different retailers in Georgia, Wolfolk traveled to Long Island with the weapons. Within months, three of the firearms purchased by Polidore were recovered by police on Long Island:

• On January 13, 2021, during a traffic stop in Hempstead, New York—where Wolfolk had previously resided—three individuals, including a juvenile, were found in possession of a 9mm Ruger handgun purchased by Polidore. This gun was linked to an earlier shooting in Uniondale on November 25, 2020, in which unknown individuals fired shots at a vehicle.  The shell casings from that shooting incident matched the firearm purchased by Polidore just two days earlier.
• On May 28, 2021, during a traffic stop in Patchogue, New York, police arrested an individual in possession of a .22-caliber Walther handgun purchased by Polidore.
• On October 3, 2021, police arrested an individual fleeing the scene of an armed robbery in Bethpage, New York, who was in possession of a .40-caliber Smith & Wessen handgun purchased by Polidore. This same firearm was subsequently linked to a shooting incident in Hempstead on December 16, 2020

Additionally, on December 22, 2020, police investigating the scene of a homicide in Hempstead, New York, located a gun box that had been purchased along with a .40-caliber Glock handgun by Polidore.

To date, the whereabouts of at least 16 firearms purchased by Polidore are still unknown.

The government’s case is being prosecuted by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Anthony Bagnuola and Mark E. Misorek are in charge of the prosecution.

The Defendants:

PATRICK POLIDORE
Age: 32
Powder Springs, Georgia

DENNIS WOLFOLK
Age: 29
Lovejoy, Georgia

E.D.N.Y. Docket No. 22-CR-347 (JMA)

MIAMI – A South Florida federal district judge has sentenced William D. Foster, 50, to 60 years in prison for running a sex trafficking organization for more than 20 years that exploited dozens of vulnerable women and girls. The judge also entered a $3.4 million forfeiture money judgment against Foster and ordered him to pay over $14 million in restitution to his victims.

At any given time, up to 15 women and girls lived with, and worked for, Foster.  Through manipulation, lies, and threats, Foster forced his victims to work at South Florida exotic dance clubs and engage in commercial sex. Foster told the victims that he would invest their earnings so that they could retire in their 20s, which was not true. Foster coerced victims into working eight-hour shifts, six days a week, every week of the year and kept all their money.

He used psychological coercion and violence to keep victims in line. If a victim wanted to buy things like food, clothes, or personal hygiene products, she first had to get permission from Foster. He required many of the victims to go on liquid diets, get unsafe weight loss surgeries, and take anti-anxiety and anti-psychotic medications without proper diagnoses. Foster often had sex with victims, some of whom were minors.

If a victim attempted to leave, Foster would threaten financial ruin and other harm.  If a victim left, she left with nothing.

Foster expanded his operation beyond South Florida. He transported victims to other states including New York, New Jersey, Michigan, and Nevada, for the purpose of engaging in prostitution.

Law enforcement officers recovered one of Foster’s victims out of a Detroit hotel room after she called the National Human Trafficking Hotline.

Foster tried to grow his business by starting a website (Foster’s Care) that promised to help human trafficking victims. His plan, however, was not to save anyone, but to lure them into his commercial sex business.

Foster pled guilty in March to conspiracy to commit sex trafficking; sex trafficking of a minor; sex trafficking of a minor by force, fraud, and coercion; five counts of sex trafficking by force, fraud, and coercion; two counts of sex trafficking by fraud and coercion; conspiracy to transport individuals for purposes of prostitution; two counts of transporting individuals for prostitution and a money laundering conspiracy.

Two of Foster’s co-conspirators — Ashleigh Holloway, 37, and Hanah Chan, 32 – pled guilty in the Southern District of Florida to bank fraud charges in connection with the operation. They are scheduled to be sentenced on October 11.

Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami; and Anthony Salisbury, Homeland Security Investigations (HSI), Miami Field Office announced the sentence imposed yesterday by U.S. District Judge Raag Singhal.

FBI Miami and HSI Miami investigated this case. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and Brooke Elise Latta. Assistant U.S. Attorney Emily Stone is handling the asset forfeiture aspects of the case.

To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org.  The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year.  Help is available in English, Spanish, Creole, or in more than 200 additional languages.  The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously. To learn more about the hotline, visit www.humantraffickinghotline.org.

To learn more about the U.S. Department of Justic’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at https://pacer.flsd.uscourts.gov, under case number 19-cr-20804.

The COVID-19 pandemic has revealed a pervasive issue here in Michigan that operates in the shadows at great cost to residents illegal trade. Whether it involves drugs, people, weapons, cigarettes or a knock-off pair of Adidas shoes, illegal trade is a growing problem exacerbated by COVID-19.

When the pandemic hit, criminals quickly maneuvered to flood the market with fake and inferior personal protective equipment and other COVID-related products. Since the beginning of the pandemic, online counterfeited goods have jumped nearly 40%. The roughly $1 trillion industry of transnational crime facilitated by illegal trade harms everyone and requires a united and collaborative effort to reduce the damage it inflicts on our society.

Here in Michigan, we know that our common border with Canada offers traffickers numerous opportunities. Border access points are frequently misused by drug smugglers. Prime locations like this become major conduits for illegal trade, and more hands need to be working toward stopping the influx of contraband.

Illegal trade and black market goods cause a lot of harm to our state, stealing millions of dollars from tax revenues that could be spent on improving Michigan services like infrastructure and education. For example, data from the Mackinac Center for Public Policy last year showed that Michigan loses more than $207 million in tax revenues each year due to illegal smuggling of tobacco products alone.

This is why we joined United to Safeguard America from Illegal Trade (USA-IT), a partnership of national and state brand enforcement experts, law enforcement agencies and leading business organizations dedicated to educating the public about the dangers of illegal trade.

The coalition is raising awareness in Michigan and other states across the country while leveraging our collective, vast expertise to share resources and provide training programs with local officials, law enforcement and other thought leaders to help combat these insidious acts and the criminals who commit them.

To many, buying smuggled cigarettes or knock-off sneakers may seem like victimless crimes, but they are far from it. The funds these organizations earn by selling black market goods are used to bolster their other nefarious activities. These criminals are the same criminals who traffic in weapons, drugs and even people. We cannot let this criminal activity continue to harm our communities.

As criminal enterprises continue to devise new strategies and practices to evade law enforcement, we must bring more tools to the table to keep pace with black market ingenuity.

This involves sharing knowledge of illegal trade with the public so they are aware of what happens in the shadows, while also working with law enforcement and local governments to target these operations, and empowering lawmakers, organizations and our communities with the tools needed to act.

It is clear there will not be an immediate or easy fix, and no one government or single industry can address this complex problem on its own. When facing such dynamic adversaries, it is important that we always stay prepared for the next challenge.

Through the work of partnerships like USA-IT, we can work toward holding the perpetrators of illegal trade accountable and ensure a more secure and prosperous Michigan.

Dan Papineau is the director of tax policy and regulatory affairs for the Michigan Chamber Of Commerce.

LOS ANGELES – A Riverside man who previously served a lengthy prison sentence in two aircraft-related cases was sentenced today to nearly four years in federal prison for selling bogus aircraft parts and for falsifying related documents.

Aman Khan, who is also known as Amanullah Khan, 73, of Riverside, was ordered to serve 46 months in prison by United States District Judge R. Gary Klausner. In addition to the prison term, Judge Klausner ordered Khan to pay $1,538,054 in restitution and further ordered the forfeiture of all aircraft components seized from Khan’s former business.

Khan pleaded guilty on June 6 to two counts of fraud involving aircraft parts in interstate and foreign commerce, admitting that he sold fraudulent, counterfeit and unapproved aircraft parts from his Riverside-based company, California Aircraft and Avionics Corporation.

Court documents outline how Khan manufactured various parts – including wheel assemblies and aircraft turbine gas nozzles that had been ordered for NATO jets – and submitted documents that falsely certified the provenance of the equipment and conformity to approved design data.

“By selling fraudulent and unapproved parts to companies in the aircraft industry, [Khan] caused the risk that his parts would be installed on commercial and military aircraft instead of genuine aircraft parts,” Khan admitted in his plea agreement. “In so doing, [Khan] consciously and recklessly caused a risk of death or serious bodily injury to aircraft passengers and to the general public.”

Khan previously was convicted in this district of aircraft parts fraud and export violations. In 2005, Khan was sentenced to 188 months in federal prison for both falsely certifying flight-critical aircraft parts sold by his company and, in a separate case brought in the District of Columbia, for selling parts for military jet fighters to China.

The United States Department of Transportation, Office of Inspector General; the United States Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Defense Criminal Investigative Service; the FBI, and NASA’s Office of Inspector General conducted the investigation that resulted in today’s sentencing.

Assistant United States Attorney Benjamin D. Lichtman of the Santa Ana Branch Office prosecuted this case.

NASHVILLE – Rodd Griffin, 42, of  Cunningham, Tennessee, pleaded guilty today in U.S. District Court to possession with intent to distribute methamphetamine and heroin, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.

According to the plea agreement, law enforcement began investigating Griffin in January 2020, after receiving a tip that he was selling heroin from his home in Cunningham, Tenn.  Law enforcement officers then made a series of controlled buys of heroin and methamphetamine from Griffin and also received information that Griffin travelled to Atlanta on a regular basis to pick up large amounts of heroin and methamphetamine.

On January 16, 2020, law enforcement officers executed a search warrant at Griffin’s home and recovered three handguns and two rifles, one of which was a FN M16A2 with a “burst” selector and a suppressor, and embossed with “Property of the U.S. Government.”  Officers also seized $40,000 in $5,000 bundles; a total of 1300g of methamphetamine; 232.4g of heroin; and 400g of marijuana.

While officers were conducting the search, Griffin arrived home, and a search of his person and vehicle yielded digital scales and other paraphernalia associated with illegal substances, and more than $6,000 cash, which included some of the buy money from a previous controlled buy.

Griffin was also found to have been previously convicted of a felony and was prohibited from possessing firearms.

The plea agreement, if accepted by the Court, calls for Griffin to be sentenced to 23 years in prison.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the 19^th Judicial District Drug Task Force; and the Montgomery County Sheriff’s Office.  Special Assistant U.S. Attorney Steven T. Brantley is prosecuting the case.

RENO, Nev. – A Sparks resident was convicted by a jury on Friday, September 16, for distribution of fentanyl — a deadly synthetic opioid.

After a five-day trial, Jaime Collazo Munoz, aka “Chivo,” (36) was found guilty of two counts of distribution of a fentanyl. Chief U.S. District Judge Miranda M. Du presided over the jury trial and scheduled sentencing for December 16, 2022. Munoz faces a maximum statutory penalty of 40 years in prison. Each count of conviction carries a mandatory minimum sentence of five years in prison.

According to evidence presented at trial and court documents, from July to November 2020, Munoz distributed at least 80 grams of fentanyl in exchange for over $10,000. Munoz distributed the fentanyl pills out of Stay Faded Barbershop in Sparks, Nevada.

U.S. Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) made the announcement.

The case was investigated by the DEA, Washoe County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service (USMS), Lyon County Sheriff’s Office, and Regional Narcotics Unit. Assistant U.S. Attorneys Andolyn Johnson and Andrew Keenan are prosecuting the case.

Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine: only a few milligrams of this chemical compound, equivalent to a few grains of table salt, are enough to cause a fatal overdose.

If you have information of a potential violation of controlled substances laws and regulations, including the growing, manufacture, distribution or trafficking of controlled substances, please contact the DEA at https://www.dea.gov/submit-tip.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

LAS VEGAS – A Las Vegas woman made her initial court appearance yesterday before U.S. Magistrate Judge Brenda Weksler for allegedly trafficking in more than 3,000 counterfeit designer handbags, clothes, and other merchandise which she offered for sale at her beauty supply store.

Amie Kamara (31) is charged with two counts of trafficking in counterfeit goods. A jury trial has been scheduled for November 14, 2022 before U.S. District Judge Cristina D. Silva.

According to allegations made in the indictment, Kamara owned and operated Aminic Beauty Supply in Las Vegas. At the store, she possessed and intended to sell items bearing counterfeit marks that were identical to the genuine trademarks from Louis Vuitton, Chanel, Gucci, and other designer brands.

If convicted, the statutory maximum penalty is 20 years in prison, a term of supervised release, and a monetary fine.

U.S. Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Chris Watkins for Homeland Security Investigations (HSI) Las Vegas made the announcement.

The case was investigated by HSI. Assistant U.S. Attorney Jim Fang is prosecuting the case.

The charges contained in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty.

To report possible violations of intellectual property rights, including counterfeiting, IP Theft and piracy, contact the National IPR Coordination Center, at www.iprcenter.gov/referral/report-ip-theft-form.

BROWNSVILLE, Texas – A 51-year-old Mexican national who was head of Cartel del Golfo (CDG) from 2003 to 2012 has been ordered to prison and to pay millions for his role in conspiring to distribute cocaine and marijuana from Mexico into the United States, announced U.S. Attorney Jennifer B. Lowery.

Jorge Costilla-Sanchez pleaded guilty Sept. 26, 2017.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered Costilla-Sanchez to serve the rest of his life in federal prison. At the hearing, the court heard additional information detailing how Costilla-Sanchez profited $5 million from drug trafficking. He was ordered to pay a money judgment in that amount. In handing down the sentence, Judge Rodriguez noted Costilla-Sanchez’s extensive involvement in trafficking illegal drugs into the country. The court commented that during the 10 years Costilla-Sanchez was the head of the CDG, he lead a violent criminal organization, using guns and intimidation to maintain control of their illegal drug trafficking enterprise and resorting to violence and killing to maintain power.

“This was a long, but very important case to the district and especially our partners in Brownsville,” said Lowery. “The life sentence speaks for itself. Justice has now been served.”

“Today’s sentencing is the culmination of years of relentless work by Homeland Security Investigations (HSI) and its partners targeting the Cartel del Gulfo,” said Acting Special Agent in Charge Craig Larrabee of HSI – San Antonio. “This investigation highlights HSI’s dedication to go after cartel members importing dangerous drugs into our communities. This sentence will send a resounding message that transnational criminal organizations are being continuously investigated and their leaders will be brought to justice.”

“High-ranking drug trafficking leaders like Costilla-Sanchez are not immune from facing stiff punishments,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA) – Houston Division. “Costilla-Sanchez brought poison to our communities, and our collaborative efforts with our local and federal partners brought him to prison. We will continue to aggressively go after any drug trafficking organization wanting to profit from our communities.”

“This sentencing sends a clear message that organized drug trafficking organizations and threats against law enforcement will not be tolerated,” said FBI Special Agent in Charge Oliver E. Rich Jr. “The FBI continues to work alongside our partners to pursue and prosecute the leadership of drug trafficking cartels and dismantle their organizations. We thank the Organized Crime Drug Enforcement Task Force (OCDETF) for their collective efforts to bring this high-level criminal to justice.”

Costilla-Sanchez aka El Cos, Doble X and Dos Equis became head of CDG after the arrest of former CDG leader Osiel Cardenas in 2003. Prior to joining the cartel, Costilla-Sanchez was a municipal police officer in Matamoros, Tamaulipas, Mexico.

He was arrested in 2012 in Mexico at the request of the United States and in 2015. Costilla-Sanchez also previously pleaded guilty to threatening two federal agents from the FBI and while he was being investigated for drug trafficking in 1999.

CDG is a Mexican transnational criminal organization operating in Tamaulipas, Mexico. During the time Costilla-Sanchez was the leader, he was responsible for importing over 10,000 kilograms of cocaine and 140,000 kilograms of marijuana to the United States.

Costilla-Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

HSI, DEA and FBI conducted the OCDETF operation with the assistance of the U.S. Marshals Service and IRS-Criminal Investigation.

OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

Assistant U.S. Attorneys Jody Young and Karen Betancourt prosecuted the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Costilla-Sanchez to the United States.

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dwayne Sherman, age 48, of Lancaster, Pennsylvania, was convicted yesterday by a federal jury on money laundering and drug trafficking conspiracy charges after a six-day trial before U.S. District Court Judge Jennifer P. Wilson.

According to United States Attorney Gerard M. Karam, the evidence introduced at trial showed that on three occasions between October 2015 and January 2016, Sherman delivered over $555,000 in cash to an informant working with the FBI. Each of the deliveries happened in Harrisburg, Pennsylvania. The money was transported to San Diego, California and then smuggled across the border into Tijuana, Mexico. During the years of the conspiracy, Sherman made numerous trips across the border into Mexico, including in late March 2016.  In April 2016, police in Los Angeles, California, stopped Sherman’s vehicle and found him in possession of two kilograms of cocaine and 15,000 pills, some of which contained methamphetamine.

The case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, San Diego County Sheriff’s Office, the Hawthorne (California) Police Department, and U.S. Drug Enforcement Administration. Assistant U.S. Attorneys Michael A. Consiglio and Carl Marchioli prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

NASHVILLE – Three Santa Rosa, California men were arrested in California yesterday and charged with conspiring to distribute and possess with the intent to distribute controlled substances in middle Tennessee, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.

Matthew Cox, 26, Marcus Johnson, 24, and Ricardo Molinero-Alcarez, 27, were arraigned before a U.S. Magistrate Judge in the Northern District of California today and will be transported to the Middle District of Tennessee at a later date.

According to the criminal complaint, agents with the Drug Enforcement Administration and Homeland Security Investigations were investigating the distribution of counterfeit fentanyl-laced Oxycodone tablets with the inscription “M30,” being shipped from the Santa Rosa area to Virginia, and to more than a dozen other states, including Tennessee.  Subsequent investigation, including surveillance and the review of social media sites and mobile payment records, identified the trio charged today.

During the investigation, agents determined that the drug distribution network was tied to other individuals in Columbia, Tennessee, and that fentanyl laced tablets were being shipped to middle Tennessee.   During a recent search in Columbia, law enforcement recovered a loaded firearm and blue tablets inscribed “M30.”

On July 25, 2022, HSI agents seized a package from a UPS Store in Sebastopol, California, which was destined for Nashville.  This package contained thousands of counterfeit fentanyl-laced Oxycodone “M30” tablets weighing approximately 2.4 kilograms.  The package also contained more than eight pounds of methamphetamine.

On August 9, 2022, agents intercepted two packages from the Santa Rosa area which were destined for residences in Nashville.  One package contained 472 grams of the Oxycodone “M30” tablets and the other package contained approximately four pounds of methamphetamine.

If convicted, each defendant faces up to 20 years in prison.

This case is being investigated by the DEA; Homeland Security Investigations; the U.S. Postal Inspection Service; the FBI; and the Columbia Police Department.  Assistant U.S. Attorney Ahmed Safeeullah is prosecuting the case.

A criminal complaint is merely an accusation.  The defendants are presumed innocent until proven guilty in a court of law.

AUGUSTA, GA:  A member of a violent white supremacist street gang has been sentenced to more than a decade in federal prison after pleading guilty to trafficking methamphetamine.

Donnie Lee Curtis Jr., 37, of Tunnel Hill, Ga., was sentenced to 144 months in prison after previously pleading guilty to Conspiracy to Possess with Intent to Distribute, and To Distribute, 50 Grams or More of Methamphetamine, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also fined Curtis $1,500 and ordered him to serve five years of supervised release after completion of his prison term.

There is no parole in the federal system.

“Drug-trafficking felons are a malignant source of a significant amount of the violent crime in our communities,” said U.S. Attorney Estes. “With our law enforcement partners, we will make our streets safer by identifying and removing these criminals from our neighborhoods.”

Curtis’ co-defendant, Robert Lewis Coney Jr., 50, of North Augusta, S.C., faces a mandatory minimum sentence of 10 years in prison, up to life, after also previously pleading guilty to Conspiracy to Possess with Intent to Distribute, and To Distribute, 50 Grams or More of Methamphetamine.

As described in court documents and testimony, Curtis and Coney were identified as methamphetamine traffickers during an investigation in 2021 initiated by the U.S. Drug Enforcement Administration. With assistance from the Columbia County Sheriff’s Office, the two were arrested during a drug deal in the parking lot of a motel in Grovetown, Ga., on May 19, 2021.

In subsequent searches of their vehicle and hotel rooms in Grovetown and in Trenton, S.C., authorities seized large amounts of high-grade methamphetamine and multiple firearms. Curtis, a member of the Aryan Brotherhood criminal street gang who was on felony probation on state drug charges at the time of his arrest, was identified as Coney’s source of supply for the illegal drugs.

“Residents in Augusta and elsewhere can sleep better tonight knowing that this violent ‘meth’ distributor can no longer peddle insidious drugs on the streets,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The DEA and its law enforcement partners presented a united front to protect our communities by bringing these dangerous drug traffickers to justice.”

The case was investigated by the U.S. Drug Enforcement Administration and the Columbia County Sheriff’s Office, with assistance from the Bureau of Alcohol, Firearms, Tobacco, and Explosives, and prosecuted for the United States by Assistant U.S. Attorney Jeremiah L. Johnson.

LAREDO, Texas—U.S. Customs and Border Protection (CBP), Office of Field Operations (OFO) officers seized cocaine in one enforcement action over the weekend that totaled over $11,800,000 in street value.

“Officers assigned to CBP cargo facilities ensure effective border security by preventing and countering the flow of suspected narcotics entering the country,” said Port Director Alberto Flores, Laredo Port of Entry. “This seizure is a prime example of border security management and how it helps prevent dangerous narcotics from reaching our communities.”

The seizure occurred on Friday, August 26, 2022, at the Colombia-Solidarity Bridge when a CBP officer referred a 2016 Stoughton trailer manifesting a shipment of baby wipes for a secondary inspection. The truck was referred for a canine and non-intrusive inspection system examination, resulting in the discovery of 1,935 packages containing 1,532.65 pounds of alleged cocaine within the shipment.

The narcotics had an estimated street value of $11,818,400.

CBP seized the narcotics. U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) special agents are investigating the seizure.

Follow the Director of CBP’s Laredo Field Office on Twitter at @DFOLaredo and on Instagram at @dfolaredo and also U.S. Customs and Border Protection at @CBPSouthTexas for breaking news, current events, human interest stories and photos.

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.

Air and Marine Operations (AMO) worked with their federal and international partners to seize 121,667 pounds of cocaine and 33,226 pounds of marijuana in international waters through the third quarter of Fiscal Year 2022, denying transnational criminal organizations an estimated $2.4 billion.

Overall, narcotic seizures involving AMO’s P-3 crew operations have increased through the third quarter of Fiscal Year 2022 when compared to the previous fiscal year. To date, cocaine seizures comprise 86 percent of cocaine seizures throughout Fiscal Year 2021, and marijuana seizures through the end of June totaled 81 percent of the previous fiscal years’ seizures.

AMO has two P-3 National Air Security Operations Centers located in Jacksonville, FL and Corpus Christi, TX. These P-3 aircraft operate throughout North, Central and South America in defense of the borders of the United States to prevent attempts to smuggle persons or contraband.

National Air Security Operations Center P-3 capabilities are vital in partnership with U.S. Command operations. This partnership bolsters support to U.S. and international law enforcement by sharing information and intelligence to help detect and disrupt targets.

AMO crews detect smuggling activity through long-range radar capabilities in maritime smuggling source and transit zones and have the ability to coordinate with a vast multi-agency network of federal and international partners to stop illicit trafficking attempts. International partnerships are crucial to counternarcotics operational success.

On March 31, for example, a Corpus Christi-based National Air Security Operations Center (NASOC) P-3 Long Range Tracker crew detected a suspect vessel near Panama City. The aircrew notified and guided partner nation teams to interdict. The international team then seized 4,998 pounds of cocaine.

AMO safeguards our nation by anticipating and confronting security threats through our tion and maritime law enforcement expertise, innovative capabilities, and partnerships at the border and beyond. With approximately 1,800 federal agents and mission support personnel, 240 aircraft and 300 marine vessels operating throughout the United States, Puerto Rico, and U.S. Virgin Islands, AMO serves as the nation’s experts in airborne and maritime law enforcement.

In Fiscal Year 2021, AMO enforcement actions resulted in 1,119 arrests and 122,035 apprehensions of undocumented individuals as well as the seizure or disruption of 324,772 pounds of cocaine, 779,725 pounds of marijuana, 18,548 pounds of methamphetamine, 900 weapons and $73.3 million.

PROGRESO, Texas—U.S. Customs and Border Protection, Office of Field Operations (OFO) at the Progreso Port of Entry seized $2.4 million in methamphetamine hidden within a passenger vehicle.

“Our frontline CBP officers continue to remain dedicated to carrying out CBP’s border security mission and this significant seizure of liquid methamphetamine perfectly exemplifies that commitment,” said Port Director Albert Flores, Laredo Port of Entry.

On Aug. 17, 2022, a CBP officer assigned to the Progreso International Bridge encountered a 1998 Ford Expedition driven by a 37-year-old male U.S. citizen and referred them for secondary examination. After conducting a thorough secondary examination, which included utilization of non-intrusive inspection (NII) equipment, CBP officers discovered a total of nearly 175 pounds (79.38 kg) of alleged liquid methamphetamine within the gas tank. The methamphetamine had an estimated street value of $2.4 million.

CBP OFO seized the narcotics, vehicle, arrested the driver and an investigation by Homeland Security Investigations special agents remains ongoing.

For more information about CBP, please click on the attached link.

Follow the Director of CBP’s Laredo Field Office on Twitter at @DFOLaredo and also U.S. Customs and Border Protection at @CBPSouthTexas for breaking news, current events, human interest stories and photos.

MACON, Ga. –Ten Milledgeville, Georgia, and two Atlanta residents are facing federal drug and firearms charges alleging their participation in the armed distribution of large quantities of methamphetamine, fentanyl and other controlled substances.

Arrest operations which occurred this week were the result of April 2021 and Feb. 2022 search warrants where agents seized approximately 92 kilograms of methamphetamine, 2.5 kilograms of fentanyl, two kilograms of heroin, two kilograms of cocaine, 15 pounds of marijuana and 15 firearms.

The federal indictment was unsealed today charging the following defendants:

Lagary Williams aka Frog, of Atlanta, is charged with conspiracy to distribute controlled substances, possession of methamphetamine with intent to distribute, two counts of possession of cocaine with intent to distribute, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime;

Brandon Ector aka Big, of Atlanta, is charged with conspiracy to distribute controlled substances, possession of methamphetamine with intent to distribute, two counts of possession of cocaine with intent to distribute, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime;

Damon Hayes aka D-5, of Milledgeville, is charged with conspiracy to distribute controlled substances, four counts of distribution of cocaine base, possession of cocaine with intent to distribute, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime;

Quintavious Horton aka Bloody Bae, of Milledgeville, is charged with conspiracy to distribute controlled substances, possession of cocaine with intent to distribute, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime;

Earnest Hamilton, of Milledgeville, is charged with conspiracy to distribute controlled substances, possession of cocaine with intent to distribute, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime;

Antonio Mason, of Milledgeville, is charged with conspiracy to distribute controlled substances and possession of methamphetamine with intent to distribute;

Travarious Davis aka D Red, of Milledgeville, is charged with conspiracy to distribute controlled substances;

Alonzo Vasser aka Tie, of Milledgeville, is charged with conspiracy to distribute controlled substances;

Derrick Ingram, of Milledgeville, is charged with conspiracy to distribute controlled substances;

Kimdra Wilkerson, of Milledgeville, is charged with conspiracy to distribute controlled substances;

Johnnie Halligan, of Milledgeville, is charged with conspiracy to distribute controlled substances; and,

Billy Harper, of Milledgeville, is charged with conspiracy to distribute controlled substances.

If convicted, each defendant is facing a maximum term of life imprisonment and a $10,000,000 fine.

According to court documents, Hayes, Davis and Vasser are convicted felons who have prior felony convictions for a serious drug felony in the Superior Court of Baldwin County, Georgia.

Williams and Ector remain at-large; initial appearances for the remaining defendants began today before U.S. Magistrate Judge Charles Weigle in the Macon, Georgia, U.S. Courthouse.

This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The case is being investigated by the Drug Enforcement Administration (DEA), FBI, Georgia Bureau of Investigation (GBI), Ocmulgee Drug Task Force, Baldwin County Sheriff’s Office, Wilkinson County Sheriff’s Office, Jones County Sheriff’s Office, Morgan County Sheriff’s Office and Atlanta-Carolina’s HIDTA Office.

Assistant U.S. Attorney Alex Kalim is prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.