United States Attorney Richard B. Roper
Northern District of Texas

MAN EXTRADITED FROM MEXICO PLEADS GUILTY TO DRUG
AND MONEY LAUNDERING CHARGES

LUBBOCK, Texas — Juan Arturo Yu, Jr., pled guilty in federal court to his role in a drug trafficking conspiracy that illegally transported large quantities of Ritalin, anabolic steroids, Valium and Rohypnol into the U.S. for distribution, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Specifically, Yu, 46, of El Paso, Texas, and Juarez, Mexico, pled guilty before U.S. District Judge Sam R. Cummings to one count of conspiracy to distribute and possess with intent to distribute controlled substances and four counts of money laundering. While a sentencing date was not set, Yu faces a maximum statutory sentence of 100 years in prison and a $3 million fine. Yu had recently been extradited from Mexico to the U.S.

An investigation revealed that a drug trafficking organization, headquartered in Mexico, was illegally transporting large quantities of Ritalin (methylphenidate), anabolic steroids, Valium (diazepam), and Rohypnol (flunitrazepam), into the U.S. During the course of the conspiracy, Juan Yu operated a pharmacy in Mexico and through his pharmacy, he would obtain large quantities of these, and other drugs which he illegally imported, or caused to be illegally imported, into the U.S. through El Paso. Once these drugs were in the U.S., Yu would use the U.S. mail or various courier services, such as Federal Express, to send them to various parts of the country.

The investigation further revealed that during the course of the conspiracy, lead defendant, John Kingston, and others, arranged for the acquisition and distribution of controlled substances throughout the U.S. by placing orders for Kingston’s customers with Juan Yu. Kingston’s customers were instructed to send payments for the drugs to Yu or other co-conspirators in El Paso, Texas, by Western Union, Federal Express or some other courier service.

Yu facilitated the conspiracy by: (1) sending illegal controlled substances to customers in various parts of the country; (2) giving instructions on how much payment was expected for those controlled substances and the method of payment to be used; (3) accepting packages containing payments for illegal controlled substances at various locations in El Paso, Texas; and (4) disposing of those illegal drug proceeds through various financial transactions. For example, Kingston sold controlled substances to an undercover police officer in Hillsborough County, Florida. On February 24, 1998, the undercover officer ordered 20,000 units of Rohypnol fromKingston. Kingston, in turn, ordered this quantity from Yu. The undercover officer sent $20,000 in money orders to Yu at 1120 Del Rio, El Paso, Texas, for the drugs. In turn, the undercover officer received 12,500 units of Rohypnol from Yu (directly or at his direction).

During the course of the investigation, law enforcement obtained a court order to intercept telephone calls made by or received by Kingston. The 93 intercepted calls between Yu and Kingston in less than two months confirmed that Kingston received orders for illegal controlled substances from various customers throughout the U.S. Kingston, in turn, would order those controlled substances from Yu, who would ship the drugs directly to Kingston’s customers and those customers, in turn, would send the proceeds from the drug sales to Yu and Kingston.

In the course of the investigation, law enforcement officials determined that approximately 611 Federal Express packages had been delivered to two residences in El Paso, Texas, that were linked to Yu. Law enforcement obtained wire transfer records from Western Union that revealed a total of 50 wire transfers to a family member of Yu’s for a total of $25,952.

Financial institution records revealed that on or about March 20, 1996, a co-conspirator wired $2000 to Kingston, which was subsequently cashed at Security State Bank. Kingston subsequently wired $1025 to one of Yu’s family members, which was subsequently deposited into a bank account in Mexico. Financial institution records revealed that on or about March 28, 1996, a co-conspirator wired $1490 to Kingston and $777 to one of Yu’s family members. Financial institution records revealed that on or about April 3, 1996, a co-conspirator wired $1000 to Kingston and $2200 to one of Yu’s family members. Financial institution records revealed that on or about May 6, 1996, Kingston wired $1946 to one of Yu’s family members, which was subsequently deposited into a bank account in Mexico.

Yu admits that he aided and abetted a co-conspirator in knowingly conducting or attempting to conduct the above-mentioned financial transactions. Yu admits that the financial transactions and attempted financial transactions involved the proceeds of a specified unlawful activity, namely, narcotics trafficking. Yu admits that he knew that the property involved in the financial transaction represented the proceeds of some form of unlawful activity. Yu admits that he intended to promote the carrying on of the specified unlawful activity or knew that the transaction was designed in whole or in part to conceal or disguise the nature, the location, the source, the ownership, or the control of those proceeds, in that the proceeds were sent to one of Yu’s family members but were intended for Yu in payment for controlled substances.

Defendant John Drayton Kingston was sentenced on April 30, 2008 to 175 months in federal prison by Judge Cummings. Kingston pled guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substances and 12 counts of money laundering. Other defendants in the case have pled guilty to their roles and have been sentenced.

U.S. Attorney praised the investigative efforts of the Drug Enforcement Administration and the Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Jeffrey R. Haag of the Lubbock, Texas, U.S. Attorney’s Office.

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