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Friday, November 25, 2022
Bronx Chamber of Commerce - Bronx Business News You Can Use
H-2 Cartel Lieutenant Extradited from Mexico to Face Narcotics Trafficking and Firearms Charges
Carlos Silva Arellano Allegedly Oversaw the Distribution of Huge Quantities of Heroin
Carlos Silva Arellano, also known as “Bolas,” was arraigned today before United States Magistrate Judge Lois Bloom at the federal courthouse in Brooklyn on an indictment charging him with participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with narcotic offenses. The defendant, a Mexican citizen, was extradited from Mexico to the United States on November 23, 2022. Silva Arellano was ordered detained pending trial.
Breon Peace, United States Attorney for the Eastern District of New York, and Anne Milgram, Administrator, United States Drug Enforcement Administration (DEA), announced the extradition and arraignment.
Mr. Peace extended his appreciation to the DEA’s Los Angeles and Mexico City, Mexico offices, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs and the Government of Mexico.
“The H-2 Cartel and its associates have smuggled multi-ton quantities of heroin, cocaine, and methamphetamine into our country for years, using intimidation and violence to build and protect their criminal empire,” said DEA Administrator Milgram. “The continuous flood of addictive and dangerous drugs into the United States remains a threat to the safety and health of our communities. Today’s extradition highlights the important work of DEA, alongside our U.S. and global partners, to bring dangerous drug traffickers to justice.”
According to the indictment and court filings, the defendant was a member of the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico, that was previously led by Juan Francisco Patron Sanchez. The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine and methamphetamine, and thousands of kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds in return. In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence and is associated with numerous homicides.
Between June 2013 and December 2016, the defendant allegedly conspired with the H-2 Cartel to smuggle large quantities of cocaine, heroin, methamphetamine and marijuana from Mexico into the United States and distribute the drugs throughout the country, including in the Eastern District of New York. The defendant allegedly established heroin distribution networks on behalf of the H-2 Cartel, coordinating with and directing several individuals to receive and sell large amounts of heroin.
The extradition of Silva Arellano is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
INTERNATIONAL TRAVEL ADVISORY FOR MAYOR ERIC ADAMS
On Wednesday, November 30, New York City Mayor Eric Adams will travel to Athens, Greece, to participate in the 2022 Mayors Summit Against Antisemitism. The trip comes following a recent attack against the Jewish community thwarted by local, statewide, and federal law enforcement last weekend.
On Thursday, December 1, the mayor will travel to Doha, Qatar, where he will meet with a number of government officials, as well as security and economic development leaders. The trip is intended to learn more about the 2022 World Cup as New York City/New Jersey prepare to serve as a host city to the games in 2026.
The mayor will be back in New York City on Sunday, December 4.
VCJC News & Notes 11/25/22
Van Cortlandt Jewish Center
News and Notes
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Thursday, November 24, 2022
Real Estate Developer and Attorney Both Admit to Multimillion-Dollar Mortgage Fraud Scheme
A New Jersey real estate developer and attorney each admitted to conspiring to orchestrate a mortgage fraud scheme that led to over $3.5 million in losses, U.S. Attorney Philip R. Sellinger announced.
Victor Santos, aka Vitor Santos, 63, of Watchung, New Jersey, and Fausto Simoes, 69, of Millington, New Jersey, each pleaded guilty by videoconference to Count One of an indictment charging them with conspiracy to commit bank fraud before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and statements made in court:
From September 2007 through November 2008, Santos, a real estate developer, and Simoes, an attorney, conspired with each other and others to fraudulently obtain mortgage loans with a total value of more than $4 million. Santos orchestrated the scheme to recruit fake, or “straw” buyers to purchase 12 properties in Newark. Using the identity and credit of these straw buyers allowed Santos, Simoes, and their conspirators to conceal their identities from the lender as the actual purchasers of the properties. Santos and others induced people to be straw buyers by agreeing to pay each straw buyer at least $5,000, secure tenants to lease the purchased properties, and cover costs associated with the property, including fees associated with the real estate purchases and the mortgage payments on each of the fraudulently obtained mortgages. Santos, Simoes, and others also caused the submission of fraudulent and false loan applications and documents to the mortgage lender.
Simoes conducted the closings of 10 of the fraudulent transactions and helped perpetuate the fraud by falsely reporting that the straw buyers were providing the cash required at closing when, in fact, Simoes received those funds from a shell company controlled by Santos and another conspirator. For several transactions, Simoes also failed to disclose to the lender that the shell company controlled by Santos and another conspirator would receive a substantial payout from the loan proceeds.
Shortly after the properties were acquired, Santos and his conspirators broke their promises to pay the mortgages. The straw buyers, in whose names the mortgages were obtained and thus were responsible for the payments, did not have enough money to pay the fraudulently obtained mortgages and defaulted, which caused the lender, Fannie Mae, and insurers to lose more than $3.5 million.
Conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others whichever is greatest. Sentencing for Santos is scheduled for April 12, 2023, and for Simoes, April 13, 2023.
Two other conspirators previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty pleas.
NYC PUBLIC ADVOCATE RESPONDS TO NEW POLL SHOWING WIDESPREAD SUPPORT FOR BANNING SOLITARY CONFINEMENT
Public Advocate Jumaane D. Williams released the following statement in response to new polling that shows broad nationwide support for policies to restrict and end the use of solitary confinement. His bill with Committee on Criminal Justice Chair Carlina Rivera to create an enforceable ban on solitary in New York City has supermajority support in the City Council in spite of continued efforts to advance misconceptions and misinformation about the legislation.
"This new polling shows that there is nationwide bipartisan support for ending solitary confinement, a torture that is currently permitted and practiced within our city. Furthermore, this support falls in line with the framework our bill codifies – prohibiting the harm of isolation, while allowing for separation to ensure safety, de-escalation, and investigation of misconduct.
"Americans are united against continuing torture. Yet here in New York City, purported to be a progressive beacon, some still deny not just the need for an enforceable ban, but the existence of solitary confinement in our jails at all. If the city wants to ‘own’ the problems on Rikers, it has to admit that this problem still exists. Continuing to repeat falsehoods about solitary, and the bill to ban it, is harmful to people on both sides of the bars.
"Our bill has supermajority City Council support, and it’s time to pass it. As elected leaders, we need to stand up for our values and stand behind the facts and data, not the hysteria and misinformation. Rikers is in crisis, and changing that status quo will require coming together to address the reality of the harm, not ignoring it."
Read the full poll and methodology from Data For Progress here.