09-21-04 -- Flores, Luis A. -- Guilty Verdict -- News Release

Lawyer Convicted of Conspiracy to Launder Drug Money

- Scheme Transferred over $12 Million to Ecuador and Colombia -

TRENTON - A federal jury today found a New York lawyer guilty of conspiring with others in a New Jersey/New York money laundering ring that wire transferred more than $12 million in drug proceeds to Colombian drug cartels, U.S. Attorney Christopher J. Christie announced.

After six hours of deliberations, which began at 4 p.m. yesterday, the jury convicted Luis A. Flores, 55, of Jackson Heights, N.Y., of two counts of conspiracy to launder drug proceeds, three counts of laundering drug proceeds, and one count of conspiracy to structure cash transactions.

The 34-count Indictment was returned in January 2004. The case was tried by Assistant U.S. Attorneys William E. Fitzpatrick and Eric M. Schweiker.

U.S. District Judge Anne E. Thompson, who presided over the two-week trial, scheduled sentencing for Dec. 17, 2004. Judge Thompson continued Flores' detention pending sentencing.

The Indictment, unsealed with the arrests of the five members of a money laundering ring on Jan.13, 2004, charges that from January 1998 through November 2000 the ring participated in a conspiracy with two citizens of Ecuador to launder drug proceeds, and to structure currency transactions at banks and Western Union branches located in Hoboken, Jersey City, Union City and West New York, N.J. and New York.

During the trial, the jury heard testimony from co-conspirators and reviewed evidence which showed that more than $11 million was deposited into 54 bank accounts that were opened in the name of various corporate entities and established for the purpose of laundering drug proceeds and that approximately $860,000 in cash was transmitted via Western Union wire transfers. Evidence presented at trial demonstrated that most of the bank deposits and wire transfers were eventually transmitted to the Colombian drug cartels.

Evidence and testimony also established that most of the cash deposits and Western Union wires were structured in amounts of less than $10,000 to avoid bank reporting requirements on large cash transactions and thus avoid detection by law enforcement.

Flores' four co-conspirators have all pleaded guilty to various charges and are awaiting sentencing. They are; Ramon Hernandez, a/k/a Ramon Arias, 63, of Glen Ridge, N.J.; Victoria Hernandez, 54, of Glen Ridge, N.J.; James Tsikinis, 47, of Hoboken; and, Luz Williams, a/k/a Luz Montalvo, 31, of Jersey City.

Flores faces a maximum penalty of 20 years in prison and a fine of $500,000 under federal statues for both of the conspiracy to launder drug proceeds counts. Each of the three counts of laundering drug proceeds carries a maximum penalty of 20 years in prison and a fine of $500,000. The one count of conspiracy to structure cash transactions carries a maximum penalty of 5 years in prison and a fine of $250,000.

Parole has been abolished in the federal sentencing system. Defendants who are sentenced to custodial terms must complete nearly all of the sentence before being released.

German Osvaldo Altamirano-Leon, alleged in the Indictment with being an organizer of this scheme, has plead guilty to conspiracy to launder more than $12,000,000 and is scheduled for sentencing on Nov. 1, 2004, before U.S. District Judge Garrett E. Brown, Jr., in Trenton.

Christie credited special agents of the Internal Revenue Service, Criminal Investigation section, under the direction of Special Agent in Charge Patricia J. Haynes; and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Joseph Billy, Jr., in Newark, with developing the case against the defendants.

The Government is represented by Assistant U.S. Attorneys William E. Fitzpatrick and Eric M. Schweiker of the U.S. Attorney's Criminal Division.

- end -

Defense Counsel: Larry Lustberg, Esq., Newark