Justice Department Announces Charges Against Sinaloa Cartel’s Global Operation

Source: United States Department of Justice News

The Justice Department today announced charges unsealed in the Southern District of New York, Northern District of Illinois, and District of Columbia, against several leaders of the Sinaloa Cartel, a transnational drug trafficking organization based in Sinaloa, Mexico, and its facilitators across the globe. 

“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”

“The fentanyl crisis in America – fueled in large part by the Sinaloa cartel – threatens our public health, our public safety, and our national security,” said Deputy Attorney General Lisa O. Monaco. “Today’s indictments target every element of the Sinaloa Cartel’s trafficking network and reflect the Justice Department’s commitment to attacking every aspect of this threat: from the chemical companies in China that spawn fentanyl precursors, to the illicit labs that produce the poison, to the networks and money launderers and murderers that facilitate its distribution. Just as we have gone on offense against terrorists and cyber criminals around the globe, the Department is now waging a relentless campaign to disrupt the production and trafficking of fentanyl – before it can reach its victims.”

“Today’s indictments send a clear message to the Chapitos, the Sinaloa Cartel, and criminal drug networks around the world that the DEA will stop at nothing to protect the national security of the United States and the safety and health of the American people,” said DEA Administrator Anne Milgram. “The Chapitos pioneered the manufacture and trafficking of fentanyl – the deadliest drug threat our country has ever faced – flooded it into the United States for the past eight years and killed hundreds of thousands of Americans. Over the last year and a half, the DEA proactively infiltrated the Sinaloa Cartel and the Chapitos network, obtained unprecedented access to the organization’s highest levels, and followed them across the world. I am grateful to the men and women of the DEA for their exceptional work on this case, which is the beginning of our work as ‘One DEA’ to dismantle every part of the criminal cartels that are killing Americans at record rates.”

“Far too many Americans have become victims in the national fentanyl crisis. These cartels have shown us they will stop at nothing to manufacture, traffic, and push these dangerous drugs to every corner of our country,” said FBI Director Christopher Wray. “Today’s indictments show that the FBI and our law enforcement partners will never tire in our pursuit not only to shut down their criminal enterprises, but also to go after individuals in their network. I want to thank the FBI team continuing to work on these cases everyday as we join with our law enforcement partners to tackle this national epidemic.”

“This indictment is another example of how this administration is taking on the cartels and their transnational criminal networks, and sending a clear message that we are going to hold them accountable,” said Secretary of Homeland Security Alejandro N. Mayorkas. “I commend our workforce at Homeland Security Investigations and our federal partners who are relentless in their efforts to stop the scourge of fentanyl. Today’s announcement exemplifies a whole-of-government approach to protecting our homeland that is yielding results.”

The Sinaloa Cartel is one of the most powerful drug cartels in the world and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin. Fentanyl is now the leading cause of death for Americans ages 18 to 49, and it has fueled the opioid epidemic that has been ravaging families and communities across the United States for approximately the past eight years. Between 2019 and 2021, fatal overdoses increased by approximately 94%, with an estimated 196 Americans dying each day from fentanyl.

The Sinaloa Cartel operated as an affiliation of drug traffickers and money launderers who obtain precursor chemicals – largely from China – for the manufacture of synthetic drugs, manufacture drugs in Mexico, move those drugs into the United States, and collect, launder, and transfer the proceeds of drug trafficking. Once led by Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the sons of Guzman Loera, collectively known as the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States. The Chapitos are Ivan Guzman Salazar, 40, Alfredo Guzman Salazar, 37, Joaquin Guzman Lopez, 36, and Ovidio Guzman Lopez, 33.

Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.

The indictments being unsealed today demonstrate that the Sinaloa Cartel has been engaged in drug trafficking activities into the United States, and violence, spanning over a decade and a half.  The Chapitos are alleged to have repeatedly and consistently transported lethal amounts of cocaine, heroin, methamphetamine, and fentanyl. 

The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States. 

Southern District of New York

Fentanyl trafficking, weapons, and money laundering charges were unsealed today in the Southern District of New York against 28 defendants, including three of the Chapitos; top lieutenants and leadership of the Sinaloa Cartel; alleged manufacturers and distributors of the Sinaloa Cartel’s fentanyl; the managers of the violent armed security apparatus that protects the Sinaloa Cartel’s drug trafficking operations; the sophisticated money launderers who repatriate the Sinaloa Cartel’s drug proceeds back to Mexico; and multiple chemical precursor suppliers in China that fuel the Sinaloa Cartel’s fentanyl distribution operation. 

According to court documents, Ivan Guzman Salazar, Alfredo Guzman Salazar, Ovidio Guzman Lopez, and their co-conspirators allegedly controlled extensive, multi-faceted, and international operations covering the fentanyl trade. Through these efforts, the Chapitos and the Sinaloa Cartel allegedly reaped hundreds of millions of dollars in profits by flooding the United States with fentanyl. 

Seven defendants are in custody pending extradition proceedings.

Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses.

The DEA investigated the case with assistance from the Department of Treasury’s Office of Foreign Assets Control and the Department of State’s Rewards for Justice Program.

Assistant U.S. Attorneys Kyle A. Wirshba, Nicholas S. Bradley, Sarah L. Kushner, David J. Robles, and Alexander Li for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs (OIA) provided substantial assistance.

Northern District of Illinois

Narcotics, money laundering, and firearms charges were unsealed today in the Northern District of Illinois against four of the Chapitos: Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez.

According to court documents, the charges stem from a decades-long, collaborative, multi-district effort between the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), the Northern District of Illinois, the Southern District of California, and their law enforcement partners. The indictment alleges that between May 2008 and April 5, 2023, the Chapitos operated a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges.

Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses, dating from May 2008 until October 2021, when Mexican authorities arrested him on Jan. 5 in Culiacan, Sinaloa, Mexico. Ovidio Guzman Lopez remains detained in Mexico pending extradition proceedings. 

The FBI Washington Field Office and San Diego Field Office, Homeland Security Investigations Nogales Office, DEA’s Chicago Division and San Diego Division, and IRS Criminal Investigations Chicago Office are investigating the case.

Acting Deputy Chief Katharine Wagner and Trial Attorney Kirk Handrich of NDDS, Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case. OIA provided substantial assistance.

This case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).

District of Columbia

Narcotics, firearms, and witness retaliation charges were unsealed today in the District of Columbia against Nestor Isidro Perez Salas, aka Nini, 31, allegedly one of the Chapitos’ lead sicarios, or assassins.

According to court documents, Perez Salas is allegedly a leader and commander of the “Ninis,” a violent group charged with providing security for the Chapitos. From at least 2012 until February 2021, Perez Salas allegedly conspired to distribute and manufacture cocaine and methamphetamine for unlawful importation into the United States, used a firearm in furtherance of the alleged drug-trafficking offense, and killed, attempted to kill, threatened, and caused bodily injury to another to intimidate a government witness and informant.   

The FBI Washington Field Office is investigating the case.

Trial Attorneys Kirk Handrich and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.

This case is supported by the OCDETF.

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The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez, and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.

Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, FBI Director Christopher A. Wray, DEA Administrator Anne Milgram, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, U.S. Attorney Randy Grossman of the Southern District for California, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, and HSI made the announcement.

Photos of the fugitives can be obtained at www.dea.gov/fugitives.

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

Nine Defendants Sentenced in $126M Compounding Fraud Scheme

Source: United States Department of Justice News

Nine defendants – including three compounding pharmacy owners, a physician, two pharmacists, and three patient recruiters – were sentenced yesterday for their respective roles in a years-long, multi-state scheme to defraud the Department of Labor’s Office of Workers’ Compensation Programs (OWCP) and TRICARE, the health care program for U.S. service members and their families.

The sentences include:

  • John Cruise, 52, of Houston, a former co-owner of Assurance Consolidated Pharmacy (ACP), a pharmacy located in Spring, Texas, as well as an owner of the Injured Federal Workers Advocate Association (IFWAA), an organization that purported to assist injured federal workers, was sentenced to 20 years in prison.
  • LaShonia Johnson, 50, of Houston, a former co-owner of ACP with her husband and co-defendant Cruise, and director at IFWAA, was sentenced to 15 years in prison.
  • Kenny Ozoude, 48, of Houston, former owner of Compounding Solutions LLC, a Houston-based pharmacy, was sentenced to 10 years in prison.
  • James Don Jackson, 63, of Tyler, Texas, a medical doctor licensed in Texas, was sentenced to five years in prison.
  • Nirvana Hightower, 56, of Houston, a pharmacist licensed in Texas and pharmacist-in-charge at Compounding Solutions LLC, was sentenced to five years in prison.
  • Keith Hudson, 55, of Humble, Texas, a pharmacist licensed in Texas and pharmacist-in-charge at ACP, was sentenced to 3 years in prison.
  • Audra Jones, 46, of Houston, was sentenced to two years and six months in prison.
  • Terrance Aice, 50, of Carrollton, Texas, a patient recruiter, was sentenced to one year and six months in prison.
  • Sherod Johnson, 44, of Las Vegas, a patient recruiter, was sentenced to one year and six months in prison.

The defendants submitted false and fraudulent claims to the OWCP and TRICARE for prescriptions for compounded and other drugs prescribed to injured federal workers and members of the armed forces. The defendants also paid kickbacks to patient recruiters and physicians to prescribe these drugs. The defendants chose the particular compounds and other drugs based not on the patients’ medical needs but in light of the amount of reimbursement for the drugs. The drugs were then mailed to patients, even though the patients often never requested, wanted, or needed them. 

Four additional defendants (Dr. Jay Bender, Dr. Deepak Chavda, Donathan Kemp, and Naresh Jivanji) are scheduled to be sentenced on May 25.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Special Agent in Charge Steve Grell of the Department of Labor Office of Inspector General (DOL-OIG), Special Agent in Charge Michael Mentavlos of the Department of Defense Office of Inspector General (DOD-OIG), and Special Agent in Charge Kris Raper of the Department of Veteran’s Affairs Office of Inspector General (DVAO-OIG) South Central Field Office made the announcement.

The USPS-OIG, DOD-OIG, and DOL-OIG investigated the case with assistance from the DVAO-OIG.

Trial Attorneys Catherine Wagner and Patrick J. Queenan of the Criminal Division’s Fraud Section prosecuted the case. Trial Attorneys Scott Armstrong, John “Fritz” Scanlon, and Michael McCarthy of the Fraud Section previously prosecuted the case.

Connecticut Man Sentenced for Felony and Misdemeanor Charges Related to Capitol Breach

Source: United States Department of Justice News

            WASHINGTON – A Connecticut man was sentenced today in the District of Columbia on felony and misdemeanor offenses for his actions during the Jan. 6, 2021, Capitol breach. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Patrick E. McCaughey III, 25, of Ridgefield, Connecticut, was sentenced to 90 months in prison for nine offenses. He was found guilty following a bench trial, on September 13, 2022, along with co-defendants Tristan Chandler Stevens, 26, of Pensacola, Florida, and David Mehaffie, 63, of Kettering, Ohio, who are awaiting sentencing. McCaughey was convicted of seven felony charges: three counts of aiding or abetting or assaulting, resisting, or impeding law enforcement officers, including one involving a dangerous weapon; one count of obstruction of an official proceeding; one count of interfering with a law enforcement officer during a civil disorder; one count of disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon, and one count of engaging in physical violence in a restricted building or grounds with a deadly or dangerous weapon. The two misdemeanor charges include: disorderly conduct in a Capitol Building and committing an act of violence in the Capitol Building or grounds.

            In addition to the prison term, U.S. District Judge Trevor N. McFadden ordered 36 months of supervised release and restitution of $2,000.

            According to the government’s evidence, on Jan. 6, 2021, McCaughey, Stevens, and Mehaffie all traveled to Washington, D.C. from their respective homes. Each illegally made his way on to the restricted grounds of the U.S. Capitol. McCaughey and Stevens taunted officers at the West Front, and Mehaffie yelled at nearby rioters who were hesitating to illegally cross the outer perimeter, “if we can’t fight over this wall, we can’t win this battle!”

            The three defendants ultimately broke through the police line after approximately 2:30 p.m., when the line on the West Front failed under the siege of the advancing mob. Each of the defendants scaled the Southwest scaffolding and staircase, to converge together at the tunnel created by the inaugural platform structure on the Lower West Terrace of the Capitol Building.

            At the Lower West Terrace, officers of the U.S. Capitol Police and Metropolitan Police Department guarded the entrance door to the Capitol from the mob — including McCaughey, Stevens and Mehaffie — for several hours. Between 2:41 p.m. and 3:19 p.m., the three defendants attempted to break into the building by directing other rioters, participating in heave-hos against the police line, using riot shields stolen from the Capitol Police, and assaulting three specific officers. Mehaffie hung from an archway and shouted direction from above, and McCaughey and Stevens were key players in the melee below. McCaughey grabbed a riot shield and used it as a weapon. Even after officers finally cleared the tunnel area, the three defendants illegally remained on Capitol grounds.

            McCaughey was arrested on Jan. 19, 2021, in South Salem, New York.

            The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by the Department of Justice National Security Division’s Counterterrorism Section and the U.S. Attorney’s Offices for the District of Connecticut. 

            The case is being investigated by the FBI’s New Haven, Albany, and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department. The FBI’s Washington Field Office identified McCaughey as #62, Stevens as #64, and Mehaffie as #86 on its seeking information photos.

            In the 27 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Massachusetts Man Sentenced for Assaulting Law Enforcement During January 6 Capitol Breach

Source: United States Department of Justice News

            WASHINGTON — A Massachusetts man was sentenced today on felony and misdemeanor charges for assaulting law enforcement during the January 6, 2021, Capitol breach. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Vincent J. Gillespie, 61, of Athol, Massachusetts, was sentenced to 68 months in prison for assaulting, resisting, or impeding officers; civil disorder; engaging in physical violence in a restricted building or grounds; and disorderly conduct in a Capitol building. Gillespie was found guilty on December 23, 2022, following a jury trial in the District of Columbia. In addition to the prison term, U.S. District Court Judge Beryl A. Howell ordered Gillespie to pay a fine of $25,000, restitution of $2,000, and to serve 36 months of supervised release.

            Gillespie was arrested on February 18, 2022, in Athol, Massachusetts.

            The evidence at trial showed that on January 6, 2021, from approximately 4:11 p.m. to 4:26 p.m., Gillespie was among rioters in the Lower West Terrace of the Capitol who engaged in pushing, shoving, yelling, and fighting with law enforcement officers. He struggled his way through the crowd, eventually maneuvering through the rioters to the line of police officers defending the Lower West Terrace’s exterior door. At one point, he gained control of a police shield and used it to ram the police. He then used two hands to grab a Metropolitan Police Department sergeant by the arm, yanking him toward the mob. He then screamed “traitor” and “treason” at the police.

            This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of Massachusetts.

            The case was investigated by the FBI Boston Division’s Springfield, Massachusetts Resident Agency Joint Terrorism Task Force, the FBI Boston Division’s Worcester Resident Agency, and the FBI’s Washington Field Office. Valuable assistance was provided by the Athol, Massachusetts Police Department and the Massachusetts State Police. Gillespie was identified as #141 on the FBI Washington Field Office’s seeking information photos.

            In the 27 months since January 6, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Butler County man charged with distributing child porn via encrypted instant message application

Source: United States Department of Justice News

CINCINNATI – A criminal complaint charging David John Frahm, 62, of Trenton, Ohio, with distribution of child pornography alleges that he used an encrypted instant message application to pursue adults with access to minor children for the purposes of engaging in sexual acts and shared sexually explicit images of children.

Court documents allege that Frahm used the app to gain access to chat rooms where people discussed child sexual abuse and shared photos and videos depicting child sexual abuse material. During one of those visits, Frahm allegedly shared three images with an undercover Homeland Security investigator who was in the chat room.

Agents arrested Frahm on April 7. Frahm had his initial appearance before U.S. Magistrate Judge Karen L. Litkovitz on April 10 and was ordered to remain in custody pending trial. Frahm’s case was unsealed today.

Distribution of child pornography is punishable by a range of five years up to 20 years in prison.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; and the Lebanon Police Department announced the charge and the arrest. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.

A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

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