San Jose, CA: Police Arrest 4 in Organized Crime Ring

Yaqui for Borderland Beat from: SJMercNews Thank you 'The Guy who knows nothing'

SAN JOSE CA :  Following a two-year investigation, police have arrested four San Jose men suspected in a “highly organized” transcontinental drug-trafficking operation posing as a phony South Bay electronics company to move marijuana to the East Coast, authorities said.

The suspects, Anthony Le, 42, Barry Phan, 42, Jose Garcia, 41, and Alejandro Garcia, 35, all of San Jose, are suspected of manufacturing and selling narcotics throughout San Jose and the Bay Area, and transporting drugs to the southern and eastern United States, according to San Jose police.

The four men were arrested Nov. 28 and booked into Santa Clara County Main Jail on a variety of charges, including manufacturing and transporting of narcotics and possession of illegal weapons, police said.

The Santa Clara County District Attorney’s Office charged each of the men with one felony count of “maintenance for a place for unlawful activities involving controlled substances,” according to a court document. The complaint alleges the four men maintained a location on Bering Avenue in San Jose for the purpose of “unlawfully selling, giving away and using” cannabis.

The four men were also charged with one misdemeanor count of “sale, transportation and distribution of cannabis” and one misdemeanor count of “possession for sale of cannabis.”

However, the court filing shows no charges related to manufacturing of narcotics, as police claimed.            Pallets of Pot Ready to Roll

Anthony Le was charged with one felony count of conspiracy to commit a crime, and three single misdemeanor counts, including possession of anabolic steroids, possession of cocaine and destroying or concealing evidence.

Phan was charged with single misdemeanor counts including possession for sale of cannabis, possession of cocaine, possession of alprazolam (Xanax) without a prescription.

Lopez Garcia was charged with one felony count of “possession of a destructive device.” Prosecutors allege an expended rocket launcher seized by police belonged to Lopez Garcia.

Acting on an anonymous tip, San Jose police launched an investigation and contend the suspects created a shell corporation masquerading as an electronics company to rent commercial space, which it converted into drug distribution centers. Lt. Paul Messier said the suspects also used the guise to convince freight companies to move the drugs and contraband without scrutiny.

Messier said the marijuana they recovered was the result of the suspects leveraging marijuana legalization in California to profit in the East Coast where pot laws are more stringent.

“Marijuana fetches 20 to 30 percent more in the East Coast,” Messier said. “They got a premium there and took advantage of the market. It was lucrative.”

The alleged drug operation was active for at least five years, Messier said. At its peak, he said, the group was netting over a $1 million in revenue and was spending tens of thousands of dollars in freight costs.

“They were very cautious, and used various techniques to avoid law enforcement detection,” Messier said.

On Nov. 28, the San Jose police department deployed several of its divisions, including special investigations, MERGE, covert response, the violent crimes enforcement team, Metro special operations, internet crimes, K-9 and patrol to serve six search warrants and four arrest warrants in homes and industrial spaces in San Jose and Sunnyvale. San Jose police were aided by the Sunnyvale Department of Public Safety, Santa Clara County District Attorney’s Office, U.S. Postal Inspectors and the U.S. Drug Enforcement Administration.

During the raids, police seized more than 800 pounds of marijuana, a large amount of illegal, anabolic steroids, five ounces of concentrated hash oil, powder cocaine, Xanax bars, Ecstasy pills, three handguns and an expended AT-4 rocket launcher, which is a one-time use weapon. Authorities also froze numerous bank accounts and seized $600,000.

“That’s not something anybody’s supposed to own,” Messier said of the rocket launcher.

San Jose police identified warehouses in four other states as being connected to the drug ring and local law enforcement agencies worked in collaboration with San Jose police. Messier identified Le as the reputed ringleader of the setup and said all of the suspects were longtime friends in San Jose.

Messier said the investigation continues and that more suspects are being sought.

“This was a large crime network,” he said. “We’re working with other law-enforcement partners to see what other charges can be brought.”

Update: December 7, 2018 This article has been updated to reflect the charges in the case, and to clarify that the AT-4 rocket launcher is a one-time use weapon.