A family business can be quite lucrative – provided you get along with your family. And also provided you pick a trade that rakes in the cash.
Drug trafficking is such a trade, and the cash – as well as jewelry, guns, snazzy vehicles another other amenities – were reportedly flowing in freely for an alleged Tucson family-run drug organization, according to a news release from the District of Arizona’s Office of the U.S. Attorney.
Then they got busted.
Eight family members were arrested Tuesday on federal charges they ran a conspiracy that set up false front businesses – like “Wedoito’s Hotdogs” – to hide their drug-trafficking ring which shipped multi-hundred pound loads of marijuana from Arizona to Ohio.
Feds believe Tucson’s own Jonathan Ortiz Troncoza, 39, headed the organization, and was assisted by various family members.
All told, the organization allegedly smuggled at least 6,000 pounds of marijuana while raking in, and laundering, up to $5 million in marijuana sales. This cash was reportedly used to run their business as well as buy or rent properties, jewelry, vehicles and “other items in furtherance of the drug trafficking conspiracy.”
“Federal agents seized marijuana, over $700,000 cash, numerous vehicles (including a semi-tractor-trailer), guns, jewelry, and a house in the course of the investigation,” the release said.
The master plan
The first step in setting up a family-run drug ring is yoking family members to help run it. Then you pick out some catchy aliases and set up several fictitious businesses to make it seem like you’re really selling fish and Frankfurters instead of marijuana and cocaine.
Business names allegedly used by the arrested Tucson clan include “Sea of Cortez Seafood & Produce Distribution, LLC,” “AB Trucking,” the sweet and snappy “Wedoito’s Hotdogs, LLC,” and a few others.
Once money starts flowing in from the drug sales, you use that cash to rent warehouses and homes, as our conspirators allegedly did in Arizona and Ohio.
“Conspirators also purchased semi-tractor trailers which were used to transport thousands of pounds of marijuana (and multiple pounds of cocaine) from stash houses in Tucson and Phoenix areas to properties in Ohio,” the release noted.
Once your ring is all set up, you need to get a little crafty and creative with transportation and deposits.
Money earned from the organization’s lucrative marijuana sales was allegedly hidden and moved around the country on commercial airlines, tractor-trailers and other vehicles. The cash was also reportedly used to buy airline tickets, cell phones, put them up in hotels and pay for other things needed to “further the conspiracy.”
“The defendants also conspired to conduct financial transactions, including depositing thousands of dollars in drug proceeds into bank accounts controlled by the drug trafficking organization.”
How they got busted
Pay attention here. Getting busted is not part of a successful drug-trafficking business plan. Don’t get cocky. Don’t get sloppy. And don’t smuggle money through Phoenix.
Federal agents got wind of the conspiracy in 2005 when Jonathan Ortiz Troncoza and a “female companion” trekked through Phoenix Sky Harbor Airport with $181,790 cash hidden in two suitcases.
This prompted the U.S. Drug Enforcement Administration and IRS Criminal Investigations to kick off a five-year-plus investigation that lasted from March 2005 to June of this year.
“Operation Frozen Freight” was the catchy moniker for the investigation, which eventually froze the family business.
The charged:
The 15-count indictment was unsealed Tuesday when the eight arrested defendants made their initial appearance at the U.S. District Courthouse in Phoenix.
Arrested:
Jonathan Ortiz Troncoza, 39, Tucson
Violations: Conspiracy to Possess with Intent to Distribute Marijuana, Possession With Intent to Distribute Marijuana, Conspiracy to Commit Money Laundering, Promotional Money Laundering and Concealment Money Laundering
David Ortiz Troncoza, 41, Tucson
Violations: Conspiracy to possess with Intent to Distribute Marijuana, Possession With Intent to Distribute Marijuana, Conspiracy to Commit Money Laundering and Promotional Money Laundering
Yvonne Teresa Troncoza-Martinez, 38, Tucson
Violations: Conspiracy to Possess with Intent to Distribute Marijuana, Conspiracy to Commit Money Laundering and Promotional Money Laundering
Kathy Ann Troncoza-Valenzuela, 41, Tucson
Violations: Conspiracy to Possess with Intent to Distribute Marijuana, Conspiracy to Commit Money Laundering and Promotional Money Laundering
Nina Francine Troncoza-Celaya, 32, Tucson
Violations: Conspiracy to Possess with Intent to Distribute Marijuana and Conspiracy to Commit Money Laundering
Manuel Martin Garcia, 34, Tucson
Violations: Conspiracy to Possess with Intent to Distribute Marijuana, Possession With Intent to Distribute Marijuana and Conspiracy to Commit Money Laundering
Manuel Alejandro Alvarez, 35, Tucson
Violations: Conspiracy to Possess with Intent to Distribute Marijuana, Possession With Intent to Distribute Marijuana and Conspiracy to Commit Money Laundering
Juan Fonseca-Cantallops, 41, Buckeye
Violations: Conspiracy to Possess with Intent to Distribute Marijuana, Conspiracy to Commit Concealment Money Laundering and Concealment Money Laundering
Not arrested, will be summoned to court:
Drusilla Ortiz Troncoza, 61, Tucson
Violations: Conspiracy to Possess with Intent to Distribute Marijuana, Conspiracy to Commit Money Laundering and Concealment Money Laundering.
Not arrested since she was reported dead:
Anna Graciela Goncalvez-Mendez, 41, Naco
Violations: Conspiracy to Possess with Intent to Distribute Marijuana, Concealment Money Laundering, Concealment Money Laundering and Engaging in Monetary Transactions
Possible penalties, if convicted
Charge: maximum penalty
Conspiracy to Possess with Intent to Distribute Marijuana: 10 years to life, a $4,000,000 fine or both
Possession With Intent to Distribute Marijuana: 40 years, a $2,000,000 fine or both
Conspiracy to Commit Money Laundering, Conspiracy to Commit Concealment Money Laundering, Promotional Money Laundering, Concealment Money Laundering (each separate charge has same possible penalty): 20 years, a $500,000 fine or two times the value
Engaging in Monetary Transactions: 10 years or a $250,000 fine or two times the value.
In determining an actual sentence, Judge G. Murray Snow will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.
An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
[tnipoll]
The credits
The investigation preceding the indictment was conducted by the U.S. Drug Enforcement Administration and the IRS-Criminal Investigations Division, and included the participation of the U.S. Postal Inspection Service, U.S. Marshal’s Service, U.S. Immigration and Customs Enforcement, U.S. Border Patrol. The FBI, U.S. Alcohol, Tobacco, Firearms & Explosives, Arizona Department of Public Safety. Local police agencies that assisted include the Mesa, Phoenix, Glendale, Tempe and Tucson Police Departments; the Pinal County Sheriff’s Office and the Arizona Attorney General’s Office. The investigation was also made possible by the assistance of the Las Vegas Metropolitan Police Department, Imperial Police Department, U.S. Attorney’s Offices in Arizona, Nevada and Ohio and various DEA offices throughout the U.S. and in Mexico. The National Drug Intelligence Center (NDIC) provided extensive analysis of documents seized during the investigation.
The prosecution is being handled by Karen S. McDonald, Assistant U.S. Attorney, District of Arizona, Phoenix.
What do you think?
Would you ever go into business, legal or otherwise, with your own family?
Will you forever remember Wedoito’s Hotdogs?
