Three Previously Charged Defendants, Three Additional Defendants Indicted On Charges Involving In Drugs Linked To A Mexican Drug Cartel; One Defendant Includes Bank Of America Employee

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a 23 count superseding indictment charging six defendants allegedly involved in an illegal narcotics operation stretching from Sinaloa, Mexico to Western New York. Named in the superseding indictment are three defendants previous charged in the case, Jose Manuel Lua-Guizar, 25, Max Riestra, 40, both of Mexico, and Pethrod Dunnigan, 37, of Buffalo, NY. Also charged in the superseding indictment:

• Gerardo Ballardo, 23 of Stockton, California
• Bryant Hudson, 36, of Buffalo
• Presiliano Garcia, 31, of Los Angeles, California, a Bank of America employee who allegedly used his position to facilitate money laundering activities in the drug operation.

“As the scourge of heroin continues to take a deadly toll on our community, this case shows that law enforcement will go wherever necessary to stop these traffickers in their tracks,” said U.S. Attorney Hochul.  “Whether across the country or across the border, from street corners to bank offices, to we will stop the flow of these drugs into our community.”

Charges includes conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and one kilogram or more of heroin, money laundering conspiracy, international money laundering conspiracy, conspiracy to structure transactions, and structuring transactions. The charges carry a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.

Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the superseding indictment and previously filed court documents, law enforcement officers began investigating a sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of Los Angeles, California area in 2014. The organization shipped drug packages to various states including New York, New Jersey, Illinois, and Colorado. Defendant Max Riestra was identified as being responsible for managing multiple bank accounts that were used to launder proceeds from the drug sales. Defendant Presiliano Garcia was a Bank of America employee who is accused of facilitating the opening of multiple accounts used for laundering drug proceeds. Garcia also facilitated wire transfers of drug proceeds from the United States to bank accounts in Mexico.

During the course of the investigation, officers executed search warrants that resulted in the seizure of drugs including one seizure of 21 kilograms of cocaine and three kilograms of heroin. Officers also seized numerous boxes that members of the drug trafficking operation attempted to mail which included an additional kilograms of cocaine and kilograms of heroin.

The investigation further revealed that a FedEx account controlled by Max Riestra was used to send packages to Buffalo, NY, including some to co-defendants Jose Manuel Lua-Guizar and Gerardo Ballardo. Guizar and Ballardo would travel from California to Buffalo to receive the packages and distribute the cocaine to local Buffalo area drug dealers, including defendant Pethrod Dunnigan. Investigators believe approximately 200 packages containing cocaine and heroin were shipped to cities including Buffalo, Chicago, New York and Denver.

The proceeds from the cocaine sales were deposited in local Bank of America branches in amounts just under $10,000. Deposits of $10,000 or more require the bank to report the transaction. There were also deposits in bank branches across the country. The total amount of money deposited in this fashion had reached more than $10,000,000. Local deposits totaled over $1,000,000 and involved at least 120 transactions.

The superseding indictment is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.