Saturday, October 31, 2020

In New Jersey’s Largest Ever Pill Bust, Three Men Accused of Laundering $2.3 Million Using Bitcoins

-

Three New Jersey men have been indicted in what the New York District Attorney claims is the largest seizure of illicit pills ever executed in New Jersey State.

The accused, Chester Anderson, 44, Jarrette Codd, 41, and Ronald McCarty, 51, allegedly ran drug “store fronts” on the Dark Net, where they took payment in cryptocurrencies.

The cryptocurrencies were subsequently deposited onto pre-loaded debit cards which were then used to withdraw more than $1 million from ATMs in Manhattan and New Jersey, New York claims.

All told, the accused allegedly laundered $2.3 million USD in drug proceeds using cryptocurrencies.

- Advertisement -

New York District Attorney Cyrus R. Vance says police were alerted to the three men’s conduct when “suspicious activity” was detected at ATMs in Manhattan and New Jersey:

“When our office received reports of suspicious activity at ATMs in New York and New Jersey, our talented investigators followed the money, using our state-of-the-art Cyber Lab to uncover a dark web counterfeit pill seller whose $2.3 million operation spanned the U.S.”

Police reportedly made numerous of undercover purchases of pills and, “identified more than 1,000 packages that were shipped by the defendants from New Jersey to locations across the country.”

Interception of these packages led to the seizure of 8,000 illicit tablets by in addition to the approximately 420,000 to 620,000 alprazolam tablets, 500 glassines of fentanyl-laced heroin and “quantities” of methamphetamine, ketamine, gamma-hydroxybutyric acid (GHB) seized when police executed raids on the men’s New Jersey properties and vehicles.

The men appear to have been involved in the counterfeit production of Xanax, an anti-anxiety medication and anti-depressant.

- Advertisement -

Police also seized four pill presses and two industrial mixers as well as “other drug manufacturing items,” and thousands of dollars of cryptocurrency at the scene.

In addition, police claim:

“Anderson and Maccarty created a shell company, Next Level Research and Development, to purchase more than 1,000 kilograms of microcrystalline cellulose, the primary ingredient used to manufacture pharmaceutical tablets. They also used Maccarty’s cellphone repair store, The Wireless Spot, to purchase a pill press, a powder mixer, and ‘punch dies’ used to imprint ‘Xanax’ labels on alprazolam pills.”

All three men are charged with Conspiracy in the Fourth and Fifth Degrees, as well as Money Laundering in the First Degree. Anderson is also charged with multiple counts of Criminal Sale of a Controlled Substance in the Fourth and Fifth Degrees, and Identity Theft in the First Degree.

Court documents claim that:

“Anderson operated two dark web storefronts, using the screenname “sinmed,” to sell alprazolam and other controlled substances. Code and Maccarty assisted with manufacturing and equipment procurement. Over the course of the conspiracy, undercover Manhattan D.A. investigators purchased approximately 10,000 alprazolam tablets, in addition to ketamine and GHB, from the sinmed storefronts.”

The investigation was conducted jointly by the New York District Attorney’s Office, New Jersey State Police, the Middlesex County Prosecutor’s Office, Lt. Jeff Russo of the South Brunswick Township Police, David Roesner of the U.S. Secret Service, and Michal Lawshe of the USPIS.

Regarding the bust, Edward Gallashaw, USPIS Assistant Inspector in Charge, stated:

“Dark web operators should know when you make the US Mail a party to your illicit deeds, you bring not only Postal Inspectors but the full weight of law enforcement to stop you in your tracks from victimizing the public.”

MUST READ

Actress Lori Loughlin begins 2-month prison sentence for role in college admissions scam

Actress Lori Loughlin reported to a federal prison in Northern California on Friday to start a two-month sentence for her role in a massive...

FirstEnergy fires CEO, other executives over Ohio bribery scandal

FirstEnergy Corp. has fired its CEO amid multiple federal investigations related to an Ohio nuclear bailout law passed year. The Akron-based utility company announced in a...

Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Former South Korean President Lee Myung-bak sent back to prison for 17 years in corruption case

Former South Korean president Lee Myung-bak was ordered back to prison on Thursday (Oct 29) as the country's Supreme Court upheld a 17-year jail...

Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Former Columbus mayor Eisenga charged with bank fraud

A former Columbus mayor and businessman who was once at the center of a controversial bill aimed at reducing child support payments for wealthy...

Actress Felicity Huffman complete full sentence for role in college admissions scam

Felicity Huffman has completed her full sentence for her involvement in the college admissions scandal. As of Sunday, she has finished her sentence, which included jail...

Former President of nuclear transportation company gets prison in scheme to bribe Russian official

A Maryland businessman convicted of plotting to pay a Russian official more than $1.5 million in bribes to get lucrative contracts for transporting uranium...

Former DEA spokesman sentenced to 7 years for posing as CIA agent to scam $4 million

A former spokesman for the Drug Enforcement Administration (DEA) was sentenced to 7 years in prison Wednesday for posing as a CIA agent on...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks