KANSAS CITY, Mo. – An El Paso, Texas, man from whom officers seized nearly $500,000 in illegal drug proceeds pleaded guilty in federal court today to his role in a conspiracy that distributed more than 720 kilograms of cocaine in the metropolitan area.

Otilio Zaragoza-Navarrette, 63, pleaded guilty before U.S. Chief District Judge Beth Phillips to participating in the drug-trafficking conspiracy from October 2013 to Nov. 15, 2018. Zaragoza-Navarrette admitted that he was a drug courier for the drug-trafficking organization, transporting cocaine to the Kansas City metropolitan area and transporting illicit drug proceeds from the drug-trafficking organization back to Texas and/or to Mexico.

Co-defendant Jose Luis Armendariz-Rascon, also known as “Uncle” or “Rambo,” 39, of Kansas City, Kansas, pleaded guilty on Jan. 22, 2020, to his role in the drug-trafficking conspiracy and to money laundering. Armendariz-Rascon admitted that he distributed 360 kilograms of cocaine per year in 2015 and 2016, for a total of 720 kilograms of powder cocaine.

Armendariz-Rascon was in charge of coordinating the transportation of loads of cocaine from the El Paso area to the Kansas City metropolitan area for distribution. Armendariz-Rascon would then coordinate the collection of bulk cash that was sent back to El Paso as payment for the cocaine. Armendariz-Rascon admitted that he coordinated the distribution of 10 to 15 kilograms of cocaine per week.

Zaragoza-Navarrette delivered cocaine to Jose Armendariz-Rascon as well as to co-defendants Miguel Armendariz-Rascon, 31, a citizen of Mexico residing in Olathe, Kansas, and Jesus Salvador Campoy-Estrada, also known as “Chava” and “Chavita,” 25, who each have pleaded guilty. Zaragoza-Navarrette hid the cocaine and/or the cash proceeds inside of five-gallon gas cans and anti-freeze jugs on his commercial semi-tractor trailer.

In one instance, law enforcement officers seized nearly $500,000 from Zaragoza-Navarrette. On May 21, 2017, investigators were conducting surveillance at a residence in the 4700 block of North Mulberry Court in Kansas City as Campoy-Estrada was driving a white Chevrolet van with Miguel Armendariz-Rascon in the passenger’s seat. Investigators followed the van as it proceeded to the area of Candlewood Suites, 4450 Randolph Road, Kansas City, and pulled onto Corrington Road on the west side of Candlewood Suites. The van parked in front of a diesel tractor-trailer. Campoy-Estrada carried a white plastic jug from the van to the passenger side of the tractor-trailer. Campoy-Estrada then returned to the van with a red plastic gas can and placed the gas can into the rear of the van. Campoy-Estrada and Miguel Armendariz-Rascon then left the area.

Law enforcement officers continued to surveil the tractor-trailer, being driven by Zaragoza-Navarrette, as it left the Candlewood Suites and began to drive northbound on I-35. The Missouri State Highway Patrol conducted a traffic stop of the tractor-trailer at mile marker 68. Troopers searched the vehicle and found a red five-gallon plastic gas can and two white plastic jugs that contained a total of $491,211.

Zaragoza-Navarrette admitted that he personally transported in excess of 50 kilograms of cocaine during his involvement in the conspiracy. Zaragoza-Navarrette admitted that he transported at least five kilograms of cocaine each time he made a delivery to the drug-trafficking organization. A confidential witness met with Zaragoza-Navarette approximately 18 times. During every meeting with Zaragoza-Navarrette, the confidential witness reported that at least $40,000 to $50,000 would be given to Zaragoza-Navarrette to ship back to Mexico. On a few occasions, approximately $500,000 was provided to Zaragoza-Navarrette.

A confidential source has indicated the drug-trafficking organization purchased cocaine for approximately $27,000 to $27,500 per kilogram. Accordingly, $491,211 in illicit drug proceeds would convert to between 15 and 19 kilograms of powder cocaine.

Zaragoza-Navarrette and Jose Luis Armendariz-Rascon are among nine defendants who have pleaded guilty in this case.

 

Under federal statutes, Zaragoza-Navarrette is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. Jose Armendariz-Rascon is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Trey Alford and Special Assistant U.S. Attorney Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.

KANSAS CITY, Mo. – A Kansas City, Kansas, man pleaded guilty in federal court today to his role in a conspiracy to distribute more than 450 kilograms of cocaine in the metropolitan area.

Jesus Salvador Campoy-Estrada, also known as “Chava” and “Chavita,” 25, pleaded guilty before U.S. Chief District Judge Beth Phillips to participating in the drug-trafficking conspiracy that lasted from October 2013 to Nov. 15, 2018. Campoy-Estrada also pleaded guilty to money laundering.

Campoy-Estrada was a large cocaine supplier in the Kansas City metropolitan area who received cocaine, smuggled from Mexico, from the leader of the drug-trafficking organization. He then made multi-kilogram sales to other cocaine dealers involved in the conspiracy. Campoy-Estrada admitted that he distributed well in excess of 450 kilograms of cocaine during his involvement in the conspiracy.

A confidential witness started distributing cocaine with Campoy-Estrada in 2015. Initially, they distributed approximately eight to 10 kilograms of cocaine per week. By 2016, they were distributing 10 to 20 kilograms of cocaine per week.

When Campoy-Estrada was arrested, officers searched his mother’s residence and found $111,995 in cash, which he admitted was illicit drug proceeds from the sale of 3.5 to 4 kilograms of powder cocaine. Officers also found a loaded XD 9mm semi-automatic handgun and a drug ledger.

Co-defendants Miguel Armendariz-Rascon, 31, a citizen of Mexico residing in Olathe, Kansas, and Armando Rosales Jr., 30, of San Elizario, Texas, have also pleaded guilty to their roles in the conspiracy.

Campoy-Estrada and Armendariz-Rascon admitted they gave $491,211 in drug-trafficking proceeds to another co-conspirator, and received an unknown amount of powder cocaine. The money, which was seized by law enforcement, represented the proceeds of the distribution of more than 17 kilograms of cocaine.

Rosales admitted that he was a courier for the drug-trafficking organization. Investigators had received information that a shipment of cocaine was being delivered to the Kansas City, Missouri, metropolitan area. On Dec. 18, 2017, a DEA investigator stopped the Ford F-150 pickup Rosales was driving near Sweetwater, Texas. The investigator searched Rosales’s vehicle and found eight packages completely wrapped in electrical tape in the rear seat back of the truck. The packages contained a total of approximately eight kilograms of powder cocaine. Rosales admitted he was transporting the cocaine to the Kansas City metropolitan area.

According to the plea agreement, the drug-trafficking organization was purchasing cocaine for approximately $27,000 to $27,500 per kilogram. Accordingly, the value of the eight kilograms that Rosales transported was at least $216,000.

Under federal statutes, Campoy-Estrada is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Trey Alford and Special Assistant U.S. Attorney Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.

KANSAS CITY, Mo. – A Lee’s Summit, Mo., couple are among 13 defendants who have been indicted by a federal grand jury for their roles in a $62 million conspiracy to distribute more than 2,000 kilograms of cocaine, and a money laundering conspiracy.

Howard Christian Walters, also known as “Chris,” 41, and his wife, Nina Walter, 37, both of Lee’s Summit; Louis Walker, 47, of Richmond, Mo.; Jose Luis Armendariz-Rascon, also known as “Uncle” or “Rambo,” 38, and Jesus Salvador Campoy-Estrada, also known as “Chava” or “Chavita,” 24, both citizens of Mexico residing in Kansas City, Kan.; Franciso Gastelum-Valdez, 51, of Overland Park, Kan.; Miguel Armendariz-Rascon, 30, a citizen of Mexico residing in Olathe, Kan.; Mark High, 52, and Antonio Starks-Fewell, 33, both of Springfield, Mo.; Otilio Zaragoza-Navarrette, 62, a Mexican national and lawful permanent resident, and Pamela Salais, 30, and her sister, Luisa Maria Salais, 28, all of El Paso, Texas; Armando Rosales, Jr., 29, of San Elizario, Texas; were charged in a 20-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Nov. 15, 2018. That indictment was unsealed and made public today upon the arrests and initial court appearances of most of the defendants.

Howard Walters is the owner of L & H Auto Sales in Kansas City, Mo.

The federal indictment alleges that Howard Walters, Jose Armendariz-Rascon, Campoy-Estrada, High, Starks-Fewell, Miguel Armendariz-Rascon, Zaragoza-Navarrett, Rosales, Pamela Salais and Luisa Salais participated in a conspiracy to distribute cocaine from October 2013 to Nov. 15, 2018.

In addition to the conspiracy, Howard Walters is charged with seven counts of distributing cocaine. Howard Walters also is charged with Campoy-Estrada, High and Starks-Fewell in one count of aiding and abetting the possession of cocaine with the intent to distribute and in one count of aiding and abetting the possession of marijuana with the intent to distribute.

The federal indictment alleges that Howard and Nina Walters, Campoy-Estrada, Gastelum-Valdez and Walker participated in a money-laundering conspiracy during the same timeframe, from October 2013 to Nov. 15, 2018.

In addition to the money-laundering conspiracy, Howard Walters is charged with three counts of money laundering for allegedly purchasing a 2017 Dodge Ram pickup truck and a 2013 Suzuki motorcycle, and the lease of a 2017 Mercedes-Benz GLS550, with the proceeds of drug trafficking. Howard Walters and Walker also are charged together in one count of money laundering for allegedly purchasing a 2011 Porsche Panamera with the proceeds of drug trafficking.

Campoy-Estrada is also charged with two counts of money laundering for the alleged purchase of a residence and of a 2011 Cadillac Escalade with the proceeds of drug trafficking.

Howard and Nina Walters also are charged together in one count of money laundering. Nina Walters is also charged with one count of money laundering.

Gastelum-Valdez is also charged with two counts of money laundering related to the alleged purchase of a residential property with the proceeds of drug trafficking.

The indictment also contains forfeiture allegations, which would require Jose Armendariz-Rascon to forfeit at least $62.4 million, which was received in exchange for the unlawful distribution of cocaine (based on a sale price of $30,000 per kilogram of cocaine and distribution of no less than 10 kilograms of cocaine per week for a period of at least four years). 

Several defendants would also be required to forfeit to the government four residential properties, including Howard and Nina Walters’s residence in Lee’s Summit and Campoy-Estrada’s residence in Kansas City. Howard Walters, Campoy-Estrada, High, Starks-Fewell, Miguel Armendariz-Rascon, Zaragoza-Navarrett, Rosales, Pamela Salais and Luisa Salais would be required to forfeit to the government a money judgment in the amount of the proceeds received in exchange for the unlawful distribution of cocaine.

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 Trey Alford and Special Assistant U.S. Attorney Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.