1.

The Indictment in this case stems from DEA’s Multiplicity investigation,

which dismantled the domestic cocaine distribution operations of Jesus Hector Flores and his employees and convicted several large-scale cocaine customers including Manuel Coronado-Espindola and others. The present Indictment focuses on the Mexico-based supervisors of the Flores organization and the sources of supply of the cocaine customers they serviced. The investigation traced the Multiplicity wiretaps to a Mexican cocaine trafficking organization led by Edgar Valdez-Villarreal, a.k.a. “La Barbie,” and established that Valdez-Villarreal’s organization was the source of more than 1,500 kilograms of cocaine sold to the Atlanta customers identified on the Multiplicity wiretaps. 2. In the early to mid-2000s, Valdez-Villarreal transitioned from being a local distributor of cocaine in his home town of Laredo, Texas, and Nuevo Laredo, Mexico, to become the distributor of larger loads of cocaine to regional distributors in the United States. Valdez-Villarreal ultimately connected with higher-level cartel operations led by Arturo Beltran-Leyva, while continuing to develop cocaine distribution in Mexico and to U.S. distributors.
3.

During this period, Valdez-Villarreal entered into an arrangement with Carlos Montemayor Gonzalez, a.k.a “El Director,” who developed a network to transport the organization’s cocaine across the border into Laredo and process cash proceeds that had been smuggled across the border into Mexico.
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Carlos Montemayor eventually formed a loose partnership with ValdezVillarreal, in which they pooled their resources to buy cocaine in Mexico. While they maintained their own customers, they began sharing cocaine sources of supply and networks to transport the coke into the United States. According to witness interviews and intercepted Title III conversations, Valdez-Villarreal’s primary lieutenant overseeing the day-to-day operations in Mexico City was Ruben Hernandez, a.k.a. “El Secre” or “Super,” and Carlos Montemayor’s primary lieutenant was Roberto Lopez, a.k.a. “Shrek.”
4. In 2004, Carlos Montemayor arranged with Jesus Hector Flores, a.k.a. “Cain,”

to oversee the domestic operations that related to Carlos Montemayor’s customers in the southeast: receiving cocaine loads, distributing the drugs to Carlos Montemayor’s customers, and collecting and processing the bulk cash payments for transportation back into Mexico. Carlos Montemayor began

sending truckloads of cocaine to Flores’s workers in Memphis, where the workers met the trucks at empty warehouses and stored the cocaine and drug proceeds in a rented stash house. Meanwhile, Valdez-Villarreal and

Hernandez continued to send truckloads of cocaine to Valdez-Villarreal’s customers through more traditional means, with the deliveries being made directly to the customers themselves.
5. In the spring of 2005, Carlos Montemayor asked Flores to expand his

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operations to include the organization’s customers in Atlanta.

Flores

dispatched Romero Roel Martinez, aka “Cachillos,” to Atlanta in March 2005, and Martinez rented a stash house located on Johnson Road in Southwest Atlanta. Martinez was later joined by Luis Trevino, Roberto Garcia, and Joe Lopez. Carlos Montemayor and other supervisors in Mexico called Martinez or Flores to advise when truckloads of cocaine were to arrive in Atlanta. The Atlanta workers met the trucks at empty warehouses and transported the cocaine to the stash houses, and distributed the cocaine upon the authorization of and according to the orders of the cartel supervisors. The workers also picked up, counted, and packaged the bulk currency paid by the cartel customers. They delivered the currency to the truck drivers on their way back to Texas to be smuggled to Mexico. Throughout this process, Martinez and

the other workers reported on a daily, and sometimes hourly, basis to Flores, who remained in Laredo.
6. From that time until their arrest in November 2005, the Atlanta workers

received, on average, 100 kilograms of cocaine two to three times a month, for a total of approximately 1,500 kilograms of cocaine. One witness recalled participating in approximately 15 shipments with several shipments sometimes occurring on the same day. According to the witness, the largest load was 300 kilograms with the smallest load being 55 kilograms.
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7. Sometime that summer, Valdez-Villarreal agreed to rely on the services of the

Flores organization as well.

While they endeavored to keep the cocaine

supplies and cash proceeds separate, both Valdez-Villarreal and Carlos Montemayor and their lieutenants paid Flores and his group to accept shipments of cocaine, make deliveries to customers as directed, and collect cash payments. 8. The defendant, JUAN MONTEMAYOR, is Carlos Montemayor’s brother. JUAN MONTEMAYOR served as the primary contact for one of the organization’s more significant customers located in Atlanta, Manuel Coronado-Espindola, who the Court may better remember under his alias of Edwar Valencia-Gonzalez. Title III wiretaps intercepted dozens of

conversations between JUAN MONTEMAYOR and Coronado-Espindola regarding orders of up to 100 kilograms of cocaine, and the collection of cash proceeds in payment for the cocaine. JUAN MONTEMAYOR also

communicated on an irregular basis with Flores and Martinez, and he provided them with instructions regarding the deliveries of cocaine to and the collection of payments from Coronado-Espindola. Finally, JUAN MONTEMAYOR

assisted with the processing of kilograms of cocaine after they arrived in Mexico for transportation to the United States border. 9. To establish these facts, the government would introduce at trial, among other
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evidence: (1) lawfully intercepted telephone conversation between JUAN MONTEMAYOR, Coronado-Espindola, Hector Flores, and workers in the Atlanta stash house, (2) testimony by other co-conspirators who would identify JUAN MONTEMAYOR’s voice on the intercepted calls and his role in the organization; (3) surveillance by special agents of the operations of the Atlanta workers at two different stash houses in the summer and fall of 2005, and (4) seized cocaine, money, and records that would corroborate the interceptions and cooperator testimony. 10. As specific examples, the government would establish that:  Coronado-Espindola accepted delivery of 60 kilos of cocaine from the Atlanta stash house workers on or about June 22, 2005, and 40 kilograms on or about July 2, 2005;  on July 18, 2005, the workers in Atlanta had 215 kilograms of cocaine in a stash house.  On August 14, 2005, the Atlanta workers delivered 50 kilograms to Coronado-Espindola and picked up $825,000 in cash proceeds to pay for a prior delivery;  On August 17-18, 2005, agents seized $2.5 million in bulk currency that was secretly delivered to a truck driver in a parking lot behind a closed warehouse, and was hidden inside the tractor cab, to be
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delivered to the organization in Mexico as payment for cocaine deliveries. The seized cash included the $825,000 that had been

delivered by Coronado-Espindola three days earlier, which is confirmed by handwritten notations designating the cash as payments by “84” which was a code number for Coronado-Espindola;  On November 15, 2005, agents executed a search warrant at the Atlanta stash house, located at 5040 in Erin Road, Atlanta, in the Northern District of Georgia, and seized 120 kilograms of cocaine and $1.5 million in U.S. currency.

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