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NEWS RELEASE

OFFICE OF THE UNITED STATES ATTORNEY

WESTERN DISTRICT OF MISSOURI


JOHN F. WOOD



Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106

www.usdoj.gov/usao/mow/index.html



APRIL 13, 2007

FOR IMMEDIATE RELEASE


KC RESTAURANT OWNERS, OTHERS INDICTED

IN $2.3 MILLION COCAINE CONSPIRACY


            KANSAS CITY, Mo. – John F. Wood, United States Attorney for the Western District of Missouri, announced today that the owners of a Kansas City, Mo., restaurant are among 15 co-defendants indicted by a federal grand jury for participating in a $2.3 million dollar conspiracy to distribute large quantities of cocaine and a money laundering conspiracy to conceal drug-trafficking profits through the restaurant and through real estate transactions.


            Fernando Chavez, also known as Mr. Magoo, Old Boy and Nando, 34, address unknown, a citizen of Mexico, Jose Estrada, also known as Enrique, Jose Estrada-Romero, KiKi, and QueQue, 42, a citizen of Mexico residing in Merriam, Kan., Juan Delgado, also known as Cachetes and Marana, 32, a citizen of Mexico residing in Kansas City, Mo., Raymond Sparks, 34, Sylvia Delgado, 28, Cruz Santa-Anna, also known as Nene, 26, Carlos Hernandez, also known as Carlos Hernandez-Banuelos, 42, Luis Morgan, 39, Ricardo Ruiz, also known as The Rabbit and Conejo, 31, Omar Villareal, also known as Shaggy, 31, and Julian Araiza, 31, all of Kansas City, Mo., Jose Canales, 52, of Burleson, Texas, Jose Ortega-Gallegos, 37, of Juarez, Mexico, JUD, LLC, and Santadelg Properties, LLC, were charged in a 19-count indictment returned under seal on April 4, 2007. The indictment was unsealed and made public upon the arrest and initial court appearance of several co-defendants on Tuesday, April 10, 2007.


            Juan and Sylvia Delgado, who are married, and Ruiz, are co-owners of Super Pollo restaurant, 3253 Independence Ave., Kansas City. They, along with Estrada, Santa-Anna, Morgan, Villareal, Araiza and Canales have been arrested. Araiza pleaded not guilty and was released on a $10,000 unsecured bond. Detention hearings and arraignments for the other defendants is scheduled for today. JUD and Santadelg Propertiers are limited liability companies allegedly established by Sylvia Delgado to launder the proceeds of illegal drug trafficking.


            Count One of the federal indictment alleges that each of the 13 individual co-defendants participated in a conspiracy to distribute five kilograms or more of cocaine from June 11, 2002, through April 1, 2007.


            Counts Two through Four and Count Seven of the federal indictment allege four separate instances on Jan. 17, Feb. 13, April 24, and Sept. 14, 2006, in which Juan Delgado distributed an amount less than 500 grams of cocaine.


            Count Five of the federal indictment alleges that Chavez, Estrada, Santa-Anna and Hernandez, aiding and abetting each other, possessed with intent to distribute five kilograms or more of cocaine on July 5, 2006.


            Count Six of the federal indictment alleges that Chavez, Estrada and Ortega-Gallegos, aiding and abetting each other, possessed with intent to distribute five kilograms or more of cocaine on July 7, 2006.


            Count Eight of the federal indictment alleges that Sparks and Araiza, aiding and abetting each other, possessed with intent to distribute an amount less than 500 grams of cocaine on March 8, 2007.


            Count Nine of the federal indictment charges Chavez, Estrada, Juan Delgado, Sparks, Sylvia Delgado, Canales, Santa-Anna, JUD and Santadelg Properties with participating in a conspiracy to commit money laundering. According to the indictment, they conducted financial transactions involving the proceeds of the unlawful distribution of cocaine, with the intent to promote that unlawful activity and with the intent that the transactions would conceal the nature, location, source,ownership or control of the proceeds.


            Counts Ten through Twelve of the federal indictment allege three separate instances of money laundering by Sylvia Delgado. According to the indictment, Sylvia Delgado made a series of deposits, from June 11 to June 25, 2002, into the bank account of Super Pollo that involved the proceeds of the unlawful distribution of cocaine.


            Count Thirteen of the federal indictment charges Juan Delgado with money laundering. According to the indictment, Juan Delgado purchased real estate in Kansas City on Sept. 15, 2003, using the proceeds of the unlawful distribution of cocaine.


            Count Fourteen of the federal indictment charges Sylvia Delgado with money laundering. According to the indictment, Sylvia Delgado conducted a financial transaction onMay 24, 2004, that involved the proceeds of the distribution of cocaine when she withdrew $28,961 to pay off a mortgage on real estate she purchased in Kansas City.


            Count Fifteen of the federal indictment charges Juan Delgado, Canales and JUD with money laundering. According to the indictment, Juan Delgado purchased property in Benton County, Mo., from Canales for $109,783 using the proceeds of the unlawful distribution of cocaine.


            Count Sixteen of the federal indictment alleges that Juan Delgado and Jose Canales structured approximately $40,000 in an attempt to avoid federal reporting requirements by purchasing 11 cashier's checks and money orders for use at the Oct. 5, 2005, closing on the Benton County property.


            Count Seventeen of the federal indictment charges Juan Delgado and Canales with money laundering. According to the indictment, they aided and abetted each other between May 29 and 31, 2006, to deliver $18,650, which involved the proceeds of the unlawful distribution of cocaine.


            Count Eighteen of the federal indictment charges Chavez, Estrada, Juan Delgado and Sparks with money laundering. According to the indictment, they aided and abetted each other to transfer $484,340, which involved the proceeds of the unlawful distribution of cocaine.


            Count Nineteen of the federal indictment charges Chavez, Juan and Sylvia Delgado, Santa-Anna and Santadelg Properties with money laundering. According to the indictment, they aided and abetted each other in the transfer of real estate in Kansas City from Santa-Anna to Santadelg Properties, to reimburse Chavez for $71,895 in illegal drug proceeds seized from Santa-Anna on July 5, 2006.


            The federal indictment also includes a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged violations, including a total of $2,327,090 that was received in exchange for the distribution of cocaine -- including $35,000 from the bank account of Super Pollo restaurant and $684,200 seized during the course of the investigation. An additional $169,000 was seized at the time of the arrests of Sparks and Juan and Sylvia Delgado. Also subject to forfeiture are several real estate properties, including 120 acres and a manufactured home in Benton County owned by Juan and Sylvia Delgado and JUD, two lots and a cabin in Camden County owned by Juan Delgado, a residential property in Kansas City owned by Juan and Sylvia Delgado, a residential property in Kansas City owned by Juan Delgado, a residential property in Kansas City owned by Santadelg Properties, a residential property in Kansas City owned by Cruz and Santa-Anna, a residential property in Kansas City owned by Juan and Sylvia Delgado, Santa-Anna and Chavez, three residential properties in Kansas City owned by Sparks, and a residential property in Burleson, Texas, owned by Canales.


        Wood cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.


        This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Jackson County Drug Task Force and the Kansas City, Mo., Police Department.

            

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This news release, as well as additional information about the office of the United States Attorney for the Western District of Missouri, is available on-line at

www.usdoj.gov/usao/mow/index.html