California

CONCORD, NEW HAMPSHIRE – Jon Hagstrom, 34, of North Hollywood, California, was sentenced in United States District Court for the District of New Hampshire 126  months in prison after pleading guilty to conspiracy to distribute more than 5 kilograms of cocaine and more than 1000 kilograms of marijuana, conspiracy to commit money laundering and aiding and abetting the possession of more than 5 kilograms of cocaine with the intent to distribute, announced United States Attorney John P. Kacavas.

             Between the summer of 2007 and August of 2009, members of the conspiracy, who had ties to a Canadian criminal organization, imported more than 1000 kilograms of exotic/high grade marijuana into the United States for distribution in the New England area, including New Hampshire, and New York.  The organization used the proceeds received from the distribution of the marijuana to purchase more than 150 kilograms of cocaine from California which was then exported to Canada.  Hagstrom was the source of the cocaine.

            The defendant worked with other co-conspirators to coordinate the transport of the cocaine from California to New Hampshire and elsewhere in New England.  On each occasion, the defendant directed couriers to transport approximately 25 to 50 kilograms of cocaine from California to New Hampshire and elsewhere in New England.  The defendant also directed the couriers to pick up millions of dollars in marijuana drug proceeds and transport those drug proceeds back to him in California.  The defendant also used private jets to travel from California to the Boston, Massachusetts area to pick up illegal marijuana drug proceeds.

During its investigation and prosecution of the 23 individuals involved in the drug conspiracy, the United States seized over three million dollars, over 1000 kilograms of marijuana and over 50 kilograms of cocaine. Hagstrom forfeited $90,000.00 in property to the United States and was the last defendant sentenced in the investigation.

The investigation was conducted by the Drug Enforcement Administration, Internal Revenue Service, Department of Homeland Security, Customs and Border Protection and Massachusetts State Police.  The case was prosecuted by Assistant U.S. Attorneys Debra M. Walsh, Robert Kinsella and Robert Rabuck.