Honduran Drug Dealer Indicted And Detained Pending Trial For Possessing More Than A Kilogram Of Fentanyl On Multiple Dates In 2023

SAN FRANCISCO — A federal magistrate judge has ordered that Defendant Milton Joel Varela Arteaga—a Honduran national who resides in Oakland, California, and was recently indicted by a federal grand jury for possessing large quantities of fentanyl on three separate occasions in 2023—be detained pending trial on fentanyl trafficking charges, announced United States Attorney Ismail J. Ramsey; Homeland Security Investigations (HSI) Special Agent in Charge Tatum King; and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark.

Arteaga, 27, was originally charged via a criminal complaint in November 2023. Among other things, the complaint alleges that:

•    On May 11, 2023, law enforcement officers searched Arteaga’s Oakland residence and seized more than 1.3 kilograms of fentanyl and more than $70,000 in cash. In a post-arrest interview, Arteaga told officers that he regularly sold drugs in the Tenderloin neighborhood of San Francisco;

•    On June 28, 2023, law enforcement officers stopped Arteaga in a car as it left the Oakland Airport and seized more than two kilograms of fentanyl and more than $12,000 in cash; and

•    On November 29, 2023, federal and state law enforcement officers searched Arteaga’s Oakland residence and found more than half a kilogram of fentanyl in a black Mercedes that belonged to Arteaga and his partner and over $13,000 in cash in their bedroom.

All of the fentanyl seizures described in the complaint occurred while Arteaga was on pretrial release for state narcotics charges filed against him in 2022. Arteaga has been in federal custody since his arrest in late November 2023, and he was ultimately indicted by a federal grand jury on December 13, 2023, on three counts of possession with intent to distribute fentanyl, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(vi). A second defendant was indicted at the same time on similar charges.

“Tackling the scourge of fentanyl is a top priority for my Office,” said U.S. Attorney Ramsey. “Our efforts to disrupt the fentanyl trade take many forms, from prosecuting the dealers who peddle this poison on the streets of the Tenderloin to identifying, arresting, and charging their suppliers. We and our law enforcement partners will hold accountable those who sell or facilitate the sale of this deadly drug at every level.”

“The indictment and subsequent detainment of Mr. Arteaga underscore HSI’s commitment to work with law enforcement agencies to stop the scourge of fentanyl trafficking from further ravaging the Bay Area,” said HSI Special Agent in Charge King. “HSI appreciates the joint investigative work with the DEA, Alameda County Narcotics Task Force, the U.S. Attorney’s Office, and the DOJ OCDETF Program, which resulted in this action. As Mr. Arteaga’s case demonstrates, we will not rest while fentanyl poisons our communities and will pursue its purveyors at every turn to disrupt and ultimately dismantle their operations.”

“Fentanyl is now the leading cause of death for Americans between the ages of 18 to 45 and is the greatest drug threat facing our nation,” said DEA Special Agent in Charge Clark. “DEA’s relentless enforcement efforts in the Tenderloin will continue in pursuit of those who distribute this deadly drug in our community.”

Arteaga was ordered detained by United States Magistrate Judge Peter H. Kang on January 12, 2024. His next scheduled appearance is a status conference before Senior United States District Judge Charles R. Breyer on January 31, 2024.

An indictment and a complaint merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Arteaga faces a minimum prison sentence of five years and a maximum prison sentence of 40 years on each of the three counts on which he is indicted. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Assistant U.S. Attorneys Daniel Pastor and Kevin Yeh are prosecuting this case with assistance from Paralegal Specialist Tina Rosenbaum. The prosecution is the result of a federal and state partnership between HSI, DEA, and the Alameda County Narcotics Task Force (ACNTF) to target the distribution of the deadly opioid fentanyl.