CONTACT: Barbara Burns

PHONE: (716) 843-5817

FAX #: (716) 551-3051

ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Thompson, 39, and his brother, Jonathan Thompson, 41, both of the Akwesasne Mohawk Indian Reservation, pleaded guilty before U.S. District Judge Charles J. Siragusa, to wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.

Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that the defendants worked with others to acquire “cut rag tobacco” which would be used to manufacture contraband cigarettes. Monies to purchase the cut rag tobacco were wired from Rochester, NY to CanStar International Inc., a tobacco broker, in the state of Florida. Once purchased, the cut rag tobacco was delivered to buildings and warehouses controlled by the defendants in Awkwasasne, NY. The defendants then used the cut rag tobacco to manufacture unlicensed cigarettes and distribute the cigarettes to various Indian Reservations in the United States.

Between June 2016 and December 2018, the defendants ordered approximately 72,500 pounds of cut rag tobacco from CanStar, which was used to manufacture approximately 27,923,077 unlicensed cigarettes. This resulted in a loss to the United States of approximately $1,405,368.46 in federal taxes.  

The pleas are the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge; Homeland Security Investigations - Border Enforcement Security Team, under the direction of Special Agent-in-Charge Kevin Kelly; Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher; the Alcohol and Tobacco Tax and Trade Bureau – Office of Field Operations, under the direction of Assistant Administrator Nicholas Colucci; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.

Sentencing is scheduled for August 27, 2020, before Judge Siragusa.

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CONTACT: Barbara Burns

PHONE: (716) 843-5817

FAX #: (716) 551-3051

BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Michael Mitchell, 38, of Niagara Falls, NY, who was convicted of conspiracy to possess with intent to distribute 100 grams or more of heroin, was sentenced to serve 78 months in prison by U.S. District Judge Lawrence J. Vilardo.

Assistant U.S. Attorney Meghan Tokash, who handled the case, stated that between June 2013 and September 2015, the defendant conspired with others sell heroin, fentanyl, and cocaine. Specifically, Mitchell received heroin, cocaine, and crack cocaine base from co-defendant Troy Gillon for distribution to other dealers in the Lockport and Niagara Falls area.

Mitchell was charged along with 16 others who were members of a transnational drug trafficking organization, led by Herman E. Aguirre, that utilized contacts and a source of supply whose territory included Mexico, Arizona, California, and elsewhere. The source of supply was the Sinaloa Cartel, led by Joaquín “El Chapo” Guzmán and Ismael “El Mayo” Zambada. was the leader of the organization. Other dispositions in the case include the following: 

• Martha Aguirre was convicted following a jury trial and is awaiting sentencing;

• Juan Alfaro was convicted following a jury trial and is awaiting sentencing;

• Herman E. Aguirre was convicted following a jury trial and is awaiting sentencing;

• Troy R. Gillon was convicted following a jury trial and is awaiting sentencing;

• Jose Ruben Gil, a/k/a Unc, a/k/a Ruben Gil Campos, a/k/a Mayor of Mexico, was convicted and is awaiting sentencing;

• Sonia Hernandez, was convicted and is awaiting sentencing;  

• Margaret Banuelos, a/k/a Lisa, was convicted and is awaiting sentencing;

• Darryl J. Williams, a/k/a D, was convicted and is awaiting sentencing;

• Trent Adair Hamilton, was convicted and is awaiting sentencing;

• Demetrius Yarborough, a/k/a Tu, was convicted and is awaiting sentencing;

• Rashawn Crule, a/k/a Black, a/k/a Shawn, was convicted and is awaiting sentencing;

• Maulana Lucas, a/k/a Big Daddy, a/k/a Shabazz, was convicted and is awaiting sentencing;

• Shirley Grigsby, was convicted and is awaiting sentencing;

• Ralik Hamilton; was convicted and is awaiting sentencing;

• Dion Cheatham, was convicted and is awaiting sentencing; and

• Joseph Thompson, a/k/a Jo-Jo, a/k/a Skools, a/k/a Skoolboy, convicted and sentenced.

During the course of the investigation, law enforcement officers seized over $5,000,000 worth of illegal narcotics, including 52.5 kilograms of cocaine; 17.5 kilograms of heroin; and 8.5 kilograms of fentanyl. Using standard dosage amounts, the seized drugs potentially represented over 1,500,000 “hits” of cocaine, and 2,700,000 “hits” of heroin and considering that two milligrams of fentanyl can be a lethal dose, enough fentanyl potentially to kill over four million people.

The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour.

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CONTACT: Barbara Burns

PHONE: (716) 843-5817

FAX #: (716) 551-3051

BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Martha Aguirre, 47, of Orange, California, and Juan Alfaro, 54, of Hacienda, California, of narcotics conspiracy and money laundering conspiracy. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life in prison.

Assistant U.S. Attorneys Patricia Astorga and Wei Xiang, who handled the trial, stated that the defendants were members of a transnational drug trafficking organization that utilized contacts and a source of supply whose territory included Mexico, Arizona, California, and elsewhere. The source of supply was the Sinaloa Cartel, led by Joaquín “El Chapo” Guzmán and Ismael “El Mayo” Zambada. Martha Aguirre’s brother Herman E. Aguirre was the leader of the organization. 

Martha Aguirre and Alfaro used “front” companies to launder over $12,000,000 in drug proceeds from Buffalo to Los Angeles, including Triton Foods, Inc. and Kamora Investment Enterprises, Inc., which were located in the State of California. Another fictitious company, Corral Seafoods, LLC, registered in the State of New York, was allegedly located in Cheektowaga, NY, but proved to be completely fake.

Using these companies, the defendants disguised kilogram quantities of heroin, fentanyl, and cocaine described on invoice and other documents as “Sea Cucumbers.”  The local organization trafficked thousands of kilograms of illegal narcotics throughout the United States, including Lockport, Niagara Falls, and Buffalo.

During the course of the investigation, law enforcement officers seized over $5,000,000 worth of illegal narcotics, including:

•           52.5 kilograms of cocaine;

•           17.5 kilograms of heroin; and

•           8.5 kilograms of fentanyl

 Using standard dosage amounts, the seized drugs potentially represented over 1,500,000 “hits” of cocaine, and 2,700,000 “hits” of heroin and considering that two milligrams of fentanyl can be a lethal dose, enough fentanyl potentially to kill over four million people.

Martha Aguirre and Alfaro were indicted along with 15 others including:

• Herman E. Aguirre was convicted following a jury trial and is awaiting sentencing;

• Troy R. Gillon was convicted following a jury trial and is awaiting sentencing;

• Jose Ruben Gil, a/k/a Unc, a/k/a Ruben Gil Campos, a/k/a Mayor of Mexico, was convicted and is awaiting sentencing;

• Sonia Hernandez, was convicted and is awaiting sentencing;  

• Margaret Banuelos, a/k/a Lisa, was convicted and is awaiting sentencing;

• Darryl J. Williams, a/k/a D, was convicted and is awaiting sentencing;

• Trent Adair Hamilton, was convicted and is awaiting sentencing;

• Michael Paul Mitchell, was convicted and is awaiting sentencing;

• Demetrius Yarborough, a/k/a Tu, was convicted and is awaiting sentencing;

• Rashawn Crule, a/k/a Black, a/k/a Shawn, was convicted and is awaiting sentencing;

• Maulana Lucas, a/k/a Big Daddy, a/k/a Shabazz, was convicted and is awaiting sentencing;

• Shirley Grigsby, was convicted and is awaiting sentencing;

• Ralik Hamilton; was convicted and is awaiting sentencing;

• Dion Cheatham, was convicted and is awaiting sentencing; and

• Joseph Thompson, a/k/a Jo-Jo, a/k/a Skools, a/k/a Skoolboy, convicted and sentenced.

“Today’s verdict represents the coup de grace in the demise of a once flourishing, multi-million dollar, international drug trafficking conspiracy,” noted U.S. Attorney Kennedy. “The volume of drugs moved by this organization endangered the health and welfare of countless Americans, including many here in Western New York. I commend the work of the federal, state, and local law enforcement officers from across our country who, together with the tremendous prosecutors in this Office, worked tirelessly to deliver justice to 17 individuals who sought to deliver poison throughout our Nation.”

The verdict is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special-Agent-in Charge Kevin Kelly; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; the Montebello, California Police Department, the Nebraska State Patrol, and the DEA, Los Angeles.

Both will be sentenced on a date to be determined before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case. 

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CONTACT:  Barbara Burns

PHONE:         (716) 843-5817

FAX #:            (716) 551-3051

BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that following an eight week trial, a federal jury has convicted Herman E. Aguirre, a/k/a 007, a/k/a Lucky, a/k/a Primo, a/k/a Freddy, of Brea, California, and Troy R. Gillon, of Lockport, NY, of narcotics conspiracy. Defendant Aguirre was also convicted of operating a continuing criminal enterprise and money laundering conspiracy. The charges carry a maximum penalty of life in prison.

Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who handled the prosecution of the case, stated that Aguirre was the leader, and Gillon a member, of a transnational drug trafficking organization that utilized contacts and a source of supply whose territory included Mexico, Arizona, California, and elsewhere. The source of supply was the Sinaloa Cartel, led by Joaquín “El Chapo” Guzmán and Ismael “El Mayo” Zambada. 

The local organization trafficked thousands of kilograms of illegal narcotics, including heroin, fentanyl, and cocaine throughout the United States, including Lockport, Niagara Falls, and Buffalo, via the mail, individual vehicles outfitted with “trap” compartments, and on pallets loaded on tractor trailers. Members of the organization created fictitious “front” companies to launder drug proceeds including Triton Foods, Inc., Kamora Investment Enterprises, Inc. and Fresh Choice Produce, all of which were incorporated in the State of California. Another fictitious company, Corral Seafoods, LLC, registered in the State of New York, was allegedly located in Cheektowaga, NY, but proved to be completely fake.

Using these companies, the defendants disguised kilogram quantities of heroin, fentanyl, and cocaine on pallets described on inventory and other documents as containing “Sea Cucumbers.” Evidence presented by the Government at trial showed that sea cucumbers are commonly found in Southeast Asia and Europe but rarely, if ever, in Western New York State. The pallets bearing the illegal narcotics were secreted in containers sealed with foam or spray insulation to avoid detection by law enforcement.

Members of the organization also utilized numerous bank accounts at local Bank of America branches to deposit illegal drug proceeds. Local members of the drug trafficking organization deposited over $19,000,000 of illegal drug proceeds into these fake seafood accounts, while California conspirators created false invoices to make it look like Western New Yorkers were buying sea cucumbers at astounding rates and quantities. The Western New York Asset Protection Manager of Wegman’s Food Markets, Inc. testified at the trial that none of its 13 Western New York stores have ever carried sea cucumbers because there is no demand for the product in Buffalo and the surrounding areas.

During the course of the investigation, law enforcement officers seized over $5,000,000 worth of illegal narcotics, including:

•           52.5 kilograms of cocaine;

•           17.5 kilograms of heroin; and

•           8.5 kilograms of fentanyl

Using standard dosage amounts, the seized drugs potentially represented over 1,500,000 “hits” of cocaine, and 2,700,000 “hits” of heroin and considering that two milligrams of fentanyl can be a lethal dose, enough fentanyl potentially to kill over four million people. Further evidence presented by the Government at trial revealed that after a December 2014 meeting in Buffalo, defendant Aguirre shipped 10 kilograms of fentanyl to Buffalo and defendant Gillon took possession of the 10 kilograms. Gillon sold two kilograms of the fentanyl before residents of the Lockport area started overdosing on the drug shortly after New Year’s Day, 2015. A DEA representative testified that Gillon told police that he returned the remaining eight kilograms to a co-conspirator in early March 2015 because, “People are dying off this (expletive).” The co-conspirator moved the remaining fentanyl, along with two kilograms of cocaine, and 22 kilograms of heroin, to a house on Folger Street in the City of Buffalo.  On March 23, 2015, Buffalo Police seized 32 kilograms of drugs from the Folger Street location—including Gillon’s eight kilograms of fentanyl.

The investigation further determined that between June 2013 and September 2015, members of the organization additionally distributed over 5,000 pounds of cocaine, heroin, fentanyl and marijuana in the Western New York area. Approximately $20,000,000 was sent from Western New York banks to California in a two year period of time.

“This transnational drug organization and these defendants were responsible for introducing the scourge of lethal fentanyl into our community, resulting in the loss of lives,” stated U.S. Attorney Kennedy. “However, as a result of this verdict and previous convictions of multiple co-defendants, the organization and the pipeline have been effectively shut down.”    

“Throughout this trial, it clearly demonstrates to the public that traffickers are reaping millions of dollars off overdoses, addiction and death,” stated DEA Special Agent in Charge Ray Donovan. “DEA’s seizures and enforcement efforts in Buffalo denied the Sinaloa Cartel revenue of $2.5 million but more importantly, put 17 members in jail and took nearly three million doses of heroin, fentanyl and cocaine off the streets.  I commend our law enforcement partners and the prosecutors at the U.S. Attorney’s Office Western District of New York for their diligent efforts in this investigation.”  

“IRS Criminal Investigation uses financial investigative expertise to pursue those individuals who engage in illegal activities as seen in the significant drug organization on trial in this case,” said James D. Robnett, IRS Special Agent-in-Charge of the New York Field Office. “Money laundering constitutes a serious threat to our communities and to the integrity of our financial system; today’s verdict is an example of how merging the unique skills of each agency makes a formidable team as we prosecute the offenders.” 

Aguirre and Gillon were indicted along with 15 others including:

•           Jose Ruben Gil, a/k/a Unc, a/k/a Ruben Gil Campos, a/k/a Mayor of Mexico, was convicted and is awaiting sentencing;

•           Sonia Hernandez, was convicted and is awaiting sentencing;  

•           Margaret Banuelos, a/k/a Lisa, was convicted and is awaiting sentencing;

•           Darryl J. Williams, a/k/a D, was convicted and is awaiting sentencing;

•           Trent Adair Hamilton, was convicted and is awaiting sentencing;

•           Michael Paul Mitchell, was convicted and is awaiting sentencing;

•           Demetrius Yarborough, a/k/a Tu, was convicted and is awaiting sentencing;

•           Rashawn Crule, a/k/a Black, a/k/a Shawn, was convicted and is awaiting sentencing;

•           Maulana Lucas, a/k/a Big Daddy, a/k/a Shabazz, was convicted and is awaiting sentencing;

•           Shirley Grigsby, was convicted and is awaiting sentencing;

•           Ralik Hamilton; was convicted and is awaiting sentencing;

•           Dion Cheatham, was convicted and is awaiting sentencing; and

•           Joseph Thompson, a/k/a Jo-Jo, a/k/a Skools, a/k/a Skoolboy, convicted and sentenced.

Charges are pending against defendants Martha Aguirre and Juan Alfaro. 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.

The trial verdict is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special-Agent-in Charge Kevin Kelly; the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; the Montebello, California Police Department, the Nebraska State Patrol, and the DEA, Los Angeles.

Defendant Aguirre is scheduled to be sentenced on June 12, 2019, Gillon on June 14, 2019, both before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case. 

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CONTACT: Barbara Burns

PHONE: (716) 843-5817

FAX #: (716) 551-3051

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Thompson, 61, of Lockport, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of a mixture or substance containing fentanyl, was sentenced to serve 72 months in prison by U.S. District Judge Lawrence J. Vilardo.

Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who handled the case, stated that between June 2013 and September 2015, the defendant conspired with others to distribute fentanyl, heroin, and cocaine.

On February 13, 2015, the Niagara County Drug Task Force conducted a controlled buy at Thompson’s residence on Elmwood Avenue. The drug sold by the defendant tested positive for fentanyl. On March 4, 2015, the task force conducted a second controlled buy at Thompson’s residence. The drug sold by the defendant during the second buy tested positive for heroin.

On March 10, 2015, a New York State search warrant was executed at Thompson’s residence. Law enforcement officers recovered approximately 88 grams of fentanyl, 60 grams of heroin, and 17 grams of crack cocaine. A digital scale, baggies, and $1,955.00 in cash were also seized.

During the course of the conspiracy, the defendant distributed various types of drugs to as many as 10 customers daily.

Thompson was one of 17 defendants indicted in August of 2016 for his role in a drug trafficking organization that utilized contacts and sources of supply from Mexico, California, and elsewhere. The organization trafficked thousands of kilograms of illegal narcotics, including heroin, fentanyl, and cocaine throughout the United States, including Lockport, Niagara Falls, and Buffalo. A total of seven defendants have been convicted. 

Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office.

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CONTACT:  Barbara Burns

PHONE:      (716) 843-5817

FAX #:         (716) 551-3051

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Thompson, 68, of Lockport, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of a mixture or substance containing fentanyl. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.

Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who are handling the case, stated that between June 2013 and September 2015, the defendant conspired with others to distribute fentanyl, heroin, and cocaine.

On February 13, 2015, the Niagara County Drug Task Force conducted a controlled buy at Thompson’s residence on Elmwood Avenue. The drug sold by the defendant tested positive for fentanyl. On March 4, 2015, the task force conducted a second controlled buy at Thompson’s residence. The drug sold by the defendant during the second buy tested positive for heroin.

On March 10, 2015, a New York State search warrant was executed at Thompson’s residence. Law enforcement officers recovered approximately 88 grams of fentanyl, 60 grams of heroin, and 17 grams of crack cocaine. A digital scale, baggies, and $1,955.00 in cash were also seized.

During the course of the conspiracy, the defendant distributed various types of drugs to as many as 10 customers daily.

Thompson was one of 17 defendants indicted in August of 2016 for his role in a drug trafficking organization that utilized contacts and sources of supply from Mexico, California, and elsewhere. The organization trafficked thousands of kilograms of illegal narcotics, including heroin, fentanyl, and cocaine throughout the United States, including Lockport, Niagara Falls, and Buffalo. He is the third defendant to be convicted. 

The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office.

Sentencing is scheduled for September 7, 2018, at 9:30 a.m. before Judge Vilardo.