Gabriel Vargas Laredo Cartel

8/18/2019 Gabriel Vargas Laredo Cartel

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AO 91,

Rev.

11/82

(LABRUM

Authorizing)

CRIMIN L COMPL INT

14-112

DISTRICT

United States District Court

Eastern District of Pennsylvania

UNITED STATES OF AMERICA

DOCKET NO.

v.

GABRIEL

VARGAS

MAGISTRATE'S CASE NO.

{

C/OM

Complaint for violation of Title 21 United States

Code§§

846, 841{A)(l),

b) l) A).

NAME OF JUDGE OR MAGISTRATE OFFICIAL TITLE LOCATION

Chief

United

States

Honorable

Carol

Sandra

Moore

Wells Magistrate Judge Philadelphia,

PA

DATE OF OFFENSE PLACE OF OFFENSE

ADDRESS

OF

ACCUSED

(if known)

Summer 2009 to November 21,

Philadelphia, PA

2014

COMPLAINANT S STATEMENT OFF

ACTS

CONSTITUTING THE OFFENSE OR VIOLATION:

From in or about the summer of2009, to on or about November 21, 2014, in Philadelphia, in the Eastern District of Pennsylvania,

and elsewhere, defendant GABRIEL VARGAS and others known and unknown conspired to distribute and possess with intent to

distribute 1 kilogram or more

ofa

mixture and substance containing a detectable amount of heroin, in violation of Title 21, United

States Code, Sections 846 and 841(a)(l), (b)(l)(A).

BASIS OF COMPLAINANT'S CHARGE AGAINST THE ACCUSED:

SEE AFFIDAVIT ATTACHED HERETO AND INCORPORATED HEREIN.

MATERIAL WITNESSES IN RELATION AGAINST THE ACCUSED:

S G N A T U R E ~ W N A N T

(offio;.i


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FFID VIT

Your affiant, Special Agent Patrick Moynihan, being duly sworn, deposes and states as

follows:

1. I Patrick Moynihan, m a Special Agent SA) of the Drug Enforcement

Administration DEA), Philadelphia Field Divisional Office, and have been employed by DEA

since September 2002. During my employment as a SA, I have received seventeen weeks of

full-time, formalized training at the DEA Basic Agent Training Academy in Quantico, Virginia.

That training involved comprehensive, formal instruction in areas including, but not limited to:

United States narcotics laws; drug identification; drug interdiction; drug detection; financial

investigations; money laundering techniques and schemes; identification and seizure of drug

related assets; and investigation of individuals and organizations involved in smuggling,

cultivation, manufacturing, and illicit trafficking

of

controlled substances, including cocaine,

methamphetamine, and heroin.

2. Prior to joining the DEA, I was a Police Officer with the Baltimore County, Maryland,

Police Department from July 1996 through September 2002. During my employment as a Police

Officer, I received twenty-six weeks of full-time, formalized training at the Baltimore County

Police Academy in Dundalk, Maryland. The training included topics such as interview and

interrogation, preservation

of

physical evidence, constitutional law, and drug identification.

3. I have specialized training and experience in narcotics smuggling and distribution

investigations, including but not limited to, the means and methods used by traffickers to import

and distribute narcotics, interdiction, smuggling methods, and the concealment and laundering of

proceeds from illicit drug trafficking activities. I have participated in numerous narcotics

Case 2:14-cr-00652-MAK Document 1 Filed 11/21/14 Page 2 of 15


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investigations, debriefed or participated in debriefings o numerous defendants, informants, and

witnesses who had personal knowledge regarding major narcotics trafficking organizations, and

have participated in all aspects

o

drug investigations including conducting surveillance,

analyzing information obtained from court-ordered pen register and trap and trace intercepts, and

analyzing telephone toll information obtained as a result

o

subpoenas issued by the DEA. I

have initiated Title III investigations and have also assisted in several other wiretap

investigations. I am aware that drug traffickers commonly use cellular telephones and pagers in

furtherance o their drug trafficking activities and frequently change cellular telephone numbers

and cellular telephones in an effort to thwart law enforcement s use o electronic surveillance. I

am also aware that drug traffickers often speak in vague, guarded, or coded language when

discussing their illegal business in an effort to further prevent detection. In addition, during my

career as an SA, I have participated in several drug investigations, including investigations

during which I conducted physical surveillance, executed search warrants, and reviewed taped

conversations and records

o

drug traffickers. I have made undercover purchases

o

narcotics

from drug traffickers. These investigations have resulted in the arrest

o

numerous individuals

and the seizure o illicit drugs and drug-related evidence and the forfeiture

o

drug-related assets.

During these investigations, I have had contact with drugs users and sellers, informants, other

agents, and experts in the field

o

narcotics enforcement. I have discussed with them various

aspects o drug use, sales, packaging, smuggling, and transporting and transferring drugs,

including cocaine, methamphetamine, and heroin

in

the United States.

4

I am an investigative or law enforcement officer

o

the United States within the

meaning o Title 18, United State Code, Section 2510(7), as I am empowered by law to conduct

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investigations of, and to make arrests for, offenses enumerated in Title

18

United States Code,

Section 2516.

5. This affidavit contains information provided by four (4) Cooperating Witnesses

(hereafter CW) and a Source

o

Information (hereafter SOI ), who have provided detailed

information pertaining to Gabriel VARGAS, who has been identified in an ongoing investigation

by DEA Philadelphia as a key member

o

a heroin trafficking organization operating in

Philadelphia which has been supplied with over 500 kilograms

o

heroin from an organization

based in Mexico since 2010. The CWs referenced in this affidavit are currently incarcerated.

CW-1, CW-2, CW-3 and CW-4 are motivated to cooperate with law enforcement in exchange

for court consideration regarding their respective cases. CW-1 is a former money launderer for

the organization based in Mexico. CW-2 is a former transporter and kilogram distributor o

heroin for this Mexican based organization. CW-3 is a former Philadelphia based heroin mill

operator who was supplied with heroin from the VARGAS DTO until his/her arrest in July,

2012. CW-4 is a former heroin courier for the Mexican based organization who was arrested

while transporting a car battery containing approximately three kilograms

o

heroin. CW-1, CW-

2

CW-3 and CW-4 were each interviewed separately and all have provided detailed,

corroborating statements regarding Gabriel VARGAS, as well as other members

o

this targeted

heroin trafficking organization. Information provided by CWs in this investigation has been

determined by law enforcement to be truthful and reliable information. Furthermore, this

information has been independently verified by physical surveillance, investigative reports,

banking records, Western Union records, utility records and commercial database inquiries.

a. CW-1 is currently incarcerated and is motivated to cooperate with law enforcement in

exchange for court consideration regarding his/her respective case. CW-1 is a former

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money launderer and heroin kilogram distributor for this organization, who has

coordinated the shipment ofheroin concealed in car batteries directly from Mexico

and Chicago, IL to heroin distributors based in Philadelphia, PA. CW-1 has worked

for this Mexican based heroin organization since 2009. CW-1 was arrested in 2013

for possession of heroin. Specifically, CW-1 advised he/she worked for a heroin

trafficking organization based in Mexico which processes raw opium, cultivated in

Mexico, into heroin which is equal in quality to heroin imported from South America

After the heroin is processed, it is further concealed into packages of heroin which are

placed into car batteries, each containing approximately three kilograms of heroin.

The car batteries are placed into couriers vehicles which are subsequently driven

from Mexico into the United States. CW-1 advised that the batteries containing

heroin are either driven from Mexico to Chicago, IL, Atlanta, GA or Texas, where

multi-kilogram shipments of heroin are stored for later distribution to organization

members based in Philadelphia, PA. CW-1 advised that between August

of

2009 to

September, 2012, CW-1 assisted in coordinating the importation

of

kilograms

of

heroin from Mexico to the VARGAS DTO in Philadelphia, PA, however CW-1

s

primary role with in the Mexican based organization was to launder proceeds

generated from the sale

of

kilogram quantities

of

heroin in Philadelphia. Therefore,

CW-1 routinely collected proceeds generated from the sale of kilograms of heroin in

Philadelphia by the VARGAS DTO. These proceeds were subsequently laundered

and transported back to the source of

supply based in Mexico. CW-1 has positively

identified a Pennsylvania Driver s License Photograph

of

Gabriel VARGAS, date

of

birth December 4, 1988, as a member of the VARGAS DTO from whom CW-1 had

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picked up proceeds from VARGAS on numerous occasions which were generated

from the sale

of

kilograms of heroin in Philadelphia, PA.

b. CW-2 is a former heroin transporter for the organization based in Mexico. CW-2 has

positively identified a Pennsylvania Driver s License photograph Gabriel

VAR

GAS,

date

of

birth December 4, 1988, as a member

of

the VARGAS DTO who distributed

kilogram quantities

of

heroin in Philadelphia, PA. CW-2 advised between 2009 and

2011, he/she maintained a stash location for the VARGAS DTO located at 7116

Lynford St., Philadelphia, PA.

c CW-3 was a former heroin distributor based in Philadelphia who operated a heroin

mill which was supplied by the

VAR

GAS DTO, prior to CW-3

s

arrest

by

Philadelphia Police Narcotics Officers in July, 2012. CW-3 has positively identified

a Pennsylvania Driver s License Photograph

of

Gabriel VARGAS, date

of

birth

December 4, 1988 as a member

of

the

VAR

GAS DTO who supplied samples

of

heroin to CW-3 prior to receiving large quantities

of

heroin from the VARGAS DTO.

d. CW-4 was a former courier for the organization based in Mexico which supplied the

VAR

GAS DTO in Philadelphia with kilograms

of

heroin until CW-4 s arrest in

September, 2011. CW-4 advised he/she maintained a stash location for heroin and

cocaine for the organization at 8719 Frankford A venue, Philadelphia, PA. CW-4 has

positively identified a Pennsylvania Driver s License Photograph

of

Gabriel

VARGAS, date of birth December 4, 1988 as a member of the VARGAS DTO who

received a kilogram and a

half of

cocaine from CW-4 at 8719 Frankford A venue

during the summer

of201

l CW-4 further advised he/she had witnessed Gabriel

VARGAS in possession of approximately three kilograms ofheroin during the

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summer of 2011.

C SE B CKGROUND

6 On November 18, 2014, at approximately 12:15 pm, DEA Newark High Intensity

Drug Trafficking Area (HIDTA) Group 3 was conducting surveillance pursuant to a narcotics

investigation near the intersection of North

9th

St. and Bristol St., Philadelphia, PA.

7 t approximately 1 30 pm, DEA Agents and Task Force Officers (TFO) from

HIDTA Group 3 observed a silver 2013 KIA sedan, bearing New Jersey registration plate

R24DES, registered to Hertz rental car corporation, conducting counter-surveillance in the area.

Members ofHIDT Group 3 further observed this vehicle make several U-tums on North

9th

St.

between Bristol St. and West Luzerne St. This same vehicle made several stops on North 9th St.,

then subsequently began moving again. Believing that this vehicle was engaged in counter

surveillance in connection with drug trafficking activity, agents approached the vehicle and

detained the driver. The driver of the vehicle was subsequently identified as Gabriel VARGAS,

who produced a valid Pennsylvania Driver's License, with a date of birth of December 4, 1988.

VARGAS told the agents he resided at 4052 North Franklin St., Philadelphia, PA with his

girlfriend and two small children. This was the same address displayed on V RGAS' s

Pennsylvania Driver 's License. Agents subsequently asked Gabriel VARGAS for consent to

search his vehicle for weapons or contraband. VARGAS agreed to a consent search of his

vehicle. Pursuant to the search, agents seized a shoebox with approximately 21,000 in bulk U.S.

Currency.

8 Special Agent Christopher Lyons, HIDTA Group 3, conducted a debrief of VARGAS

at the location

of

the stop. SA Lyons asked VARGAS how he obtained the money. VARGAS

told SA Lyons that he was approached by an older Dominican Male at his mother's restaurant in

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Philadelphia who asked VARGAS

if

he wanted to make some extra money. VARGAS further

advised that his brothers were in the game and VARGAS only recently got into picking up

money through a Dominican subject who used he used to go to school with in Philadelphia with

ut

has since been deported. SA Lyons asked VARGAS for the name of this Dominican subject;

however VARGAS replied that he did not know his name.

9 VARGAS told SA Lyons that the unknown Dominican subject directed VARGAS

earlier that day to go a Home Depot location in Philadelphia. VARGAS advised he drove to the

Home Depot store, where a second unknown Dominican subject placed a shoebox containing

U.S. Currency in the trunk of the rental vehicle operated by VARGAS. The unknown

Dominican subject contacted VARGAS and instructed him to go to North

th

St. and meet with

an additional unknown subject. SA Lyons asked VARGAS how much money was in the shoe

box. VARGAS initially replied that he did not know, and then advised the shoe box contained

approximately $20,000.

10. VARGAS told SA Lyons that the unknown Dominican directed VARGAS to pick up

the rental vehicle on the street on the day prior (Monday, November 1

h

however; agents were

able to find a Hertz rental receipt which showed that the vehicle had been rented by Gabriel

VARGAS. SA Lyons asked about the subject in the Dominican Republic directing VARGAS,

and how VARGAS could know a subject for a long time but not recall his name. VARGAS

replied that this subject used to frequent his family's restaurant and VARGAS's parents were

closer to this subject than he was. SA Lyons asked VARGAS how it was possible to obtain a

phone number to contact this unknown subject

if

he resides in the Dominican Republic?

VARGAS first replied that he did not know, then changed his answer and advised that the

unknown Dominican subject had mailed VARGAS his phone number. SA Lyons subsequently

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asked VARGAS to retrieve the telephone number o the unknown Dominican subject in his

cellular telephone. According to SA Lyons, VARGAS advised he could not recall the number,

then deliberately entered the wrong password into the phone, which subsequently locked the

phone. Agents subsequently seized the U.S. Currency and three mobile phones in Gabriel

VARGAS's possession. VARGAS was provided with a DEA Form

12 as a receipt. Shortly

thereafter, VARGAS was released.

11. Subsequent to the traffic stop, your affiant was contacted by TFO Charles Myers,

FBI Philadelphia Violent Crimes Task Force. TFO Myers reported that he had debriefed a

Source oflnformation (SOI) who had encountered Gabriel VARGAS after VARGAS's contact

with DEA HIDTA Group 3 on Tuesday, November 18, 2014. The SOI reported that VARGAS

told the SOI he had encountered the police, who had taken a large amount o money and phones

from VARGAS. The SOI told TFO Myers that VARGAS was paranoid o being placed under

arrest because police had seized money from VARGAS in the past.

12 On Wednesday, November 19, 2014, agents from DEA Philadelphia Group

23

established surveillance at known locations for Gabriel VARGAS, including his residence at

4052 North Franklin St. and Las Delicias Restaurant, located at 4200 North Reese St.,

Philadelphia, PA.

13. At approximately 3:50 pm, members o DEA Group 23 located the a silver 2013

KIA sedan, bearing New Jersey registration plate R24DES, registered to Hertz rental car

corporation, which was parked at the northeast corner o North Rees Street and Hunting Park

A venue. Surveillance was maintained on this vehicle.

14

At approximately 4:00 pm, SA Michael Beck attempted to verify the plate on the

silver 2013 Kia Sedan. While SA Beck was approaching the vehicle, members

o

DEA Group

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23 observed VARGAS on foot near the intersection of Hunting Park Ave and North Reese St.

At that time, VARGAS recognized SA Beck from a previous encounter on July 28, 2011, when

SA Beck interviewed Gabriel VARGAS pursuant to a money seizure. Moments later, Gabriel

VARGAS fled from the location

on

foot and was able to evade further detection from law

enforcement.

15

Previously,

on

July 28, 2011, the Philadelphia Police Department conducted a traffic

stop on a white 2009 white Chevrolet Impala, bearing P registration HFW-9518, registered to

Ronny ESPINAL. t the time of the stop, police identified Wilmer VARGAS as the driver and

Gabriel VARGAS as the passenger of the vehicle. A consensual search

of

the vehicle was

conducted which resulted in the seizure

of

314,820.00, which was recovered from the trunk of

the vehicle. This money was packaged in a manner consistent with drug proceeds. Both males

made statements denying knowledge or ownership of the U.S. Currency. Neither male was

arrested.

16. CW-1 has identified the July 28, 2014 seizure from Gabriel VARGAS and Wilmer

VARGAS

of

314,820 as cash proceeds which were generated from the distribution

of

approximately ten (10) kilograms of heroin by the V RGAS DTO in Philadelphia, PA. CW-1,

who was a money launderer for the organization based in Mexico, advised that the 10 kilograms

of heroin had been supplied on credit to the VARGAS DTO. CW-1 advised that following the

seizure, members of the VARGAS DTO had provided CW-1 with a copy of the receipt

documenting the seizure by police, however, the source of supply based in Mexico was angered

that Gabriel VARGAS and Wilmer VARGAS did not utilize a hidden compartment within the

Chevrolet Impala, which was identified by CW-1 as a vehicle supplied by the organization based

in Mexico. CW-1 advised as a result of the seizure, the sources of supply held the VARGAS

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DTO accountable for the loss of currency

by

Gabriel VARGAS and Wilmer VARGAS. CW-1

further advised that the Mexican based suppliers of the heroin directed the members of the

Vargas DTO that they would have to sell additional kilograms ofheroin without profit in order to

recoup the loss to the organization of the 314,820 representing the proceeds of sale of the 10

kilograms ofheroin previously supplied.

17 On September 19, 2012, Gabriel VARGAS's two brothers, John VARGAS and

Wilmer VARGAS were both arrested at 6634 Sylvester St., Philadelphia, PA, following the

controlled delivery

of

12 cans

of

Mexican processed food which further concealed heroin which

had been sealed inside. The total seizure was approximately seven (7) kilograms of heroin.

According to CW-1, the heroin seized from Wilmer VARGAS and John VARGAS at 6634

Sylvester St., Philadelphia, PA was provided by the same heroin trafficking organization based

in Mexico which had supplied the VARGAS DTO since 2009.

18 CW-1 further advised that he/she had coordinated the pickup of bulk proceeds from

the sale of kilogram quantities of heroin from the VARGAS DTO since 2009. CW-1 advised in

2010, he/she would travel to Philadelphia and stay in hotels. During CW-1

s

trips to

Philadelphia, CW-1 identified Gabriel VARGAS and Wilmer VARGAS as subjects who would

meet with CW-1 at his/her hotel room for the purpose of delivering bulk U.S. Currency which

was received as payment for kilograms

of

heroin received by the VARGAS DTO on credit.

CW-I advised that the VARGAS DTO would receive approximately eight kilograms of heroin

every three weeks, for which the VARGAS DTO paid approximately 56,000 per kilogram.

19 CW-1 advised in early 2011, CW-1 was directed by the source of supply based in

Mexico to meet with members

of the VARGAS DTO at a residence in the vicinity of i St. and

Cumberland Ave., Philadelphia, PA. While CW-1 was at the location, he/she observed John

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VARGAS, Wilmer VARGAS and Gabriel VARGAS break open a car battery, which contained

packets

of

heroin concealed inside. CW-I had identified car batteries as a method which was

utilized by the organization based in Mexico to smuggle heroin into the United States. All three

VARGAS brothers requested that CW-I witness them weigh the heroin packages to settle a

dispute between the VARGAS DTO and the source of supply in Mexico over the weight of the

packages. Because the packages were light, the source of supply in Mexico directed CW-I to

credit the VARGAS DTO for the loss and prorate their payment based on the actual weight of

the under-weight packages.

20. CW-I advised that during the summer of 20I (prior to the traffic stop) CW-I was

asked by the source of

supply in Mexico to assist in the transfer

of

approximately 500,000 in

bulk currency from Philadelphia,

P

to Mexico. CW-I advised the source of supply in Mexico

sent two couriers from Mexico to drive a vehicle from Philadelphia, PA to back to Mexico. CW

I advised that he/she was directed by the source

of

supply to a body shop located in the 2500

block ofNorth Reese St., Philadelphia, PA. CW-I advised when he got to the shop, he

witnessed Gabriel VARGAS, John VARGAS and Wilmer VARGAS packaging stacks

of

5,000

into heat sealer bags, which were further wrapped in duct tape. These packages were

subsequently concealed in a white Toyota Forerunner, which was provided to the courier by the

VARGAS DTO. This vehicle was subsequently driven to Mexico by one

of

the couriers sent by

the source of supply.

21. On March 13, 20I4, Virginia State Police, conducted a traffic stop on a 2006 Honda

Pilot, bearing Pennsylvania registration plate JGE8080, for a traffic infraction which occurred on

northbound Interstate

85

in close proximity to the Virginia - North Carolina border. Troopers

subsequently identified the driver of the Honda Pilot as Ronny ESPINAL, the same subject who



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was the registered owner the 2007 Chevrolet Impala operated by Wilmer VARGAS and Gabriel

VARGAS at the time o the seizure

o

$314, 820 from them on July 28, 2011. Troopers

conducted a consent search o the Honda Pilot, which yielded approximately 7 kilograms o

heroin contained in a trap compartment. Ronny ESPINAL was subsequently placed under arrest.

During a post arrest interview, ESPINAL advised he was directed to travel to Atlanta, GA by a

subject in Mexico named GORDO LNU. CW-1 has identified GORDO LNU as the subject

who had supplied kilograms

o

heroin to the VARGAS DTO.

22. CW-2 is a former transporter o kilogram quantities o heroin for the organization

based in Mexico, who was member o this organization from 2007 until his/her arrest in July

2013. CW-2's role in the organization was to coordinate the movement o

kilograms

o

heroin

from Mexico to Philadelphia, PA. CW-2 also maintained heroin stash locations in Philadelphia

on behalf o the organization based in Mexico. CW-2 has identified 7116 Lynford St.,

Philadelphia, PA as a former stash location for the Mexico based organization.

23. CW-2 has positively identified Gabriel VARGAS as a member o the VARGAS

DTO, a heroin distribution network based in Philadelphia, PA. CW-2 advised between 2009 and

2010, CW-2 received approximately ten (10) deliveries o eight kilograms

o

heroin at the stash

location at 7116 Lynford St., Philadelphia, PA. CW-2 advised at any given time, he/she had

approximately four to five kilograms o heroin available. CW-2 further advised that Gabriel

VARGAS and Wilmer VARGAS had access to the stash location. CW-2 advised that Gabriel

VARGAS and Wilmer VARGAS would pick up large, multi-kilogram amounts o heroin which

was subsequently distributed to their respective customers in Philadelphia, PA.

24. CW-3 was a subject who was arrested in July 2012 by Philadelphia Police for

possession with intent to distribute approximately 700 grams o heroin. CW-3, who operated a

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heroin mill at the time

of

his/her arrest, identified the VARGAS DTO as a heroin source

of

supply. CW-3 positively identified Gabriel VARGAS as a subject who would deliver CW-3

samples

of

heroin prior to delivery of bulk amounts received by CW-3 from the VARGAS DTO.

25. CW-4 was previously a heroin courier for the organization based in Mexico, who

maintained heroin kilogram stash locations in Philadelphia prior to his/her arrest in September,

2011. CW-4 was arrested while driving enroute from Mexico to Philadelphia while in possession

of a car battery containing approximately three kilograms

of

heroin. During the summer of

2011, while maintaining a stash location at 8719 Frankford A venue, Philadelphia, PA, CW-4

advised he/she had distributed one and a

half

kilograms

of

cocaine to two subjects, whom CW-4

positively identified as Wilmer VARGAS and Gabriel VARGAS. CW-4 advised the transaction

occurred in the basement

of

8719 Frankford Avenue, where the cocaine had been stashed

beneath the floor.

26. CW-4 had recalled a separate occasion prior to his/her arrest when he/she went to a

stash location operated by the VARGAS DTO. While CW-4 was at the location, he observed

Gabriel VARGAS, Wilmer VARGAS and John VARGAS inside the residence, where they were

drying out approximately three kilograms

of

heroin which had been damaged. CW-3 advised

that he/she observed five small tables in the dining room and living room

of

the residence where

the VARGAS brothers had set up heat lamps to dry the heroin out.

W

further advised that

he/she could breathe the heroin in the air inside

of

the residence.

27. Wherefore, based on the foregoing averments, it is your affiant's belief that there is

probable cause to believe that Gabriel VARGAS is a member

of

the VARGAS heroin trafficking

and money laundering conspiracy and has committed violations

of

Title 21, United State Code,

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Sections 846 Conspiracy to distribute and possess with intent to distribute 1 kilogram or more o

Sworn To and Subscribed Before Me This

~ ; o a y

o November, 2014.

onorable Carol andra Moore Wells

hiefUnited States Magistrate udge

Drug Enforcement Administration

4


Gabriel Vargas Laredo Cartel

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