Case 3:13-cr-00380-JAG Document 227 Filed 10/16/14 Page 1 of 9

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

UNITED STATES OF AMERICA,

Plaintiff,
CRIMINAL NO. 13-380(JAG)
v.

MACIAS-NIETO, ET. AL,

Defendants.

UNITED STATES' MOTION TO CONSOLIDATE

CRIMINAL CASES 13-380(JAG) and 13-412(CCC)

COMES NOW, the United States of America, and files this Motion, and respectfully

advises this Honorable Court as follows:

1. On July 3, 2013, a Federal Grand Jury returned an indictment in the

above-captioned matter charging defendants [1] Luis Macias-Nieto, [2] Alexis Antonio

Rodriguez-Rodriguez, [3] Guoquan Mei, [4] Ricardo Yu, and [5] Diane Caroline Masters for

narcotics importation in violation of 21 USC 952, 929 and 963.

2. On July 17, 2013, defendant [1] Ricardo Yu was indicted in Criminal Case No.

13-412(CCC) with defendants [2] Chun Pan Chiu, [3] Dennis Tosado-Nunez, [4] Hannibal

Sierra-Llanos, and [5] Christian Masa-Tosado for conspiring to possess more than five (5)

kilograms of cocaine and conspiring to possess firearms in furtherance of drug trafficking crimes

in violation of 21 USC 846 and 18 USC 924(o). (See Criminal Case No. 13-412(CCC) at ECF No.

18).

3. On February 24, 2014, the United States filed a motion in Criminal Case No.

13-380(JAG) to consolidate both cases. (ECF No. 81). However, the motion for consolidation

was denied. (ECF No. 83).

4. On June 5, 2014, a Federal Grand Jury returned Superseding Indictments in

Criminal Case No. 13-380(JAG) and Criminal Case No. 13-412(CCC). (See 13-380(JAG) at
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ECF No. 132 and 13-412(CCC) at ECF No. 120). Defendants Ricardo Yu, Chun Pan Chiu and

Denis Tosado-Nunez are now co-defendants in both cases. In addition, Criminal Case No.

13-412(CCC) has now been added an importation charge.

5. The United States respectfully moves to consolidate both cases pursuant Federal

Rules of Criminal Procedure 8 1 and 13 2. The witnesses that will testify against these defendants

are the same witnesses for each case. As a result, the United States respectfully understands that

the cases are now ripe for consolidation.

6. Factors that the court may consider in determining whether consolidation is

warranted: (a) avoidance of unnecessary delay and expense; (b) the consolidation is in the interest

of both parties, of course, with the proviso that consolidation will not result in prejudice to the

accused or embarrassment in the presentation of his defense; (c) defendants are charged with a

number of similar offenses growing out of the same relationship of the parties and their dealings

with each other; (d) witnesses would be the same if separate trials were had; (e) the proofs or

evidence offered in support of one would to a great extent support the other; (f) the facts are the

same; (g) the issues are the same; (h) that the offenses involved indicated a common scheme or a

continuing course of conduct under a single plan; (i) that the offenses grew out of the same chain of

circumstances or the same transaction; (j) or that the indictments or informations were for closely

related offenses. Morris v. United States, 12 F.2d 727 (9th Cir. 1926); United States v. Stocker,

1 RULE 8. JOINDER OF OFFENSES OR DEFENDANTS:

(a) JOINDER OF OFFENSES. The indictment or information may charge a defendant in separate counts with 2 or more
offenses if the offenses chargedwhether felonies or misdemeanors or bothare of the same or similar character, or
are based on the same act or transaction, or are connected with or constitute parts of a common scheme or plan.
(b) JOINDER OF DEFENDANTS. The indictment or information may charge 2 or more defendants if they are alleged to
have participated in the same act or transaction, or in the same series of acts or transactions, constituting an offense or
offenses. The defendants may be charged in one or more counts together or separately. All defendants need not be
charged in each count.
2 RULE 13. JOINT TRIAL OF SEPARATE CASES:

The court may order that separate cases be tried together as though brought in a single indictment or information if all
offenses and all defendants could have been joined in a single indictment or information
 Case 3:13-cr-00380-JAG Document 227 Filed 10/16/14 Page 3 of 9

273 F.2d 754 (7th Cir. 1960); Brown v. United States, 143 F. 60 (8th Cir. 1906); Jarvis v. United

States, 90 F.2d 243 (1st Cir. 1937); United States v. Anderson, 101 F.2d 325 (7th Cir. 1939). Not

all factors are all inclusive.

7. Here, to have separate trials would unnecessarily occupy the time of the Court and

add enormously to the costs of the cases. It is in the best interests of the parties to have the cases

heard together. The defendant(s) that have retained counsel would not have to invest in additional

court costs, and the government would not have to present the cases twice and subject their

witnesses to testifying twice about the same related facts.

8. Also, the defendants are charged with substantially similar offenses; that is:

conspiracy to import and conspiracy to possess with the intent to distribute cocaine. In both

cases, the same witnesses will be testifying as to the criminal and personal relationships with their

co-conspirators and co-defendants, the proofs of evidence offered in both cases are substantially

the same: testimonial evidence plus documentary evidence.

9. Moreover, the facts are very similar in both cases and overlap. The offenses

indicate a common scheme with a continuing course of conduct under a single plan and

defendants offenses grow out of the same chain of circumstances and transactions. We explain

further.

10. For instance, the narcotics transactions placed in both indictments include the St.

Maarten, the District of Puerto Rico, and other places. More specifically, defendants in Criminal

Case No. 13-380(JAG) are responsible for the distribution and importation of large quantities of

cocaine coming from Dominican Republic, Colombia, Venezuela and and/or elsewhere to St.

Marteen with a final destination of Puerto Rico. This is substantially similar for Criminal Case

No. 13-412(CCC).

11. Both cases were furthered by the same confidential source (CS) who assisted the

DEA by way of making cocaine purchases, providing information, and/or making recordings of
 Case 3:13-cr-00380-JAG Document 227 Filed 10/16/14 Page 4 of 9

the above-captioned defendants. Among the individuals identified as a cocaine suppliers and/or

importers were defendants [1] Luis Macias-Nieto, [2] Mario Moreno, [3] Guaquon Mei, and [4]

Ricardo Yu. The CS was able to meet personally or personally speak with Macias, Moreno, Mei,

Yu and/or Masters to either negotiate or discuss drug trafficking issues or activities.

12. Per the investigation and information provided by this CS, Luis Macias-Nieto was a

drug trafficker operating in St. Maarten. He usually brokered cocaine through connections he had

from Colombia and Venezuela with customers in Puerto Rico and Dominican Republic, among

several places. As the Court is aware, St. Maarten is one of the transshipment countries for

cocaine destined to Puerto Rico and the U.S. Virgin Islands.

13. The CS purported to not only have personal knowledge of Macias-Nietos drug

trafficking activities but to have also worked directly with him. It was through the CS that a DEA

undercover officer (UC) was introduced to Macias-Nieto. An agreement was reached wherein

Macias-Nieto would supply 150 kilograms of cocaine to Puerto Rico if the UC utilized sailing

vessels to transport multi-hundred kilogram cocaine loads to Portugal. This eventually led to the

arrest of Macias-Nieto in Portugal.

14. On July 31, 2012, law enforcement authorities executed search warrant at

Macias-Nietos residence in St. Maarten. Among the evidence found there, was a Venezuelan

Cedula in the name Alexis Antonio Rodriguez-Rodriguez aka Juan Carlos and whose true name

is Mario Moreno.

15. Because Macias-Nieto had been arrested in Portugal, the CS began working with

Mario Moreno. On August 15, 2012, the CS indicated that he communicated with Mario Moreno

who asked for the CS assistance in smuggling cocaine, and who also asked if the CS knew where

the payment for the cocaine that he (Moreno) had supplied to El Chino (Ricardo Yu) was.

According to the CS, Moreno indicated that Ricardo Yu and Guoquan Mei owed him

$1,080,000.00.
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16. On October 19, 2012, at approximately 3:39 p.m., the CS met with defendant Mei

in North Carolina. The CS explained that he worked with the Old Man (Macias-Nieto) and aka

Juan Carlos (Moreno) in St. Maarten. This meeting was recorded and produced in discovery.

In the recording, defendant Mei admitted to being supplied 120 kilograms of cocaine that came

from Moreno and Macias-Nieto. In such recording, defendant Mei told the CS that defendant Yu

was responsible for half of the cocaine load. Defendant Mei also told the CS that in or about July

or August 2011, he used a transportation crew to move 169 kilograms of cocaine from Dominican

Republic to Puerto Rico. The transportation crew was defendants Pelaggi and Masters who were

referred to as the white couple. During the course of this cocaine trafficking operation,

defendants Yu, Masters and Pelaggi stole the cocaine from defendant Mei and subsequently sold

the cocaine to other persons. Furthermore, defendants Masters and Pelaggi were essential to the

transportation of the narcotics throughout the conspiracy charged because Masters was a boat

captain who was greatly assisted by Pelaggi in carrying out the transportation of the loads of

cocaine and in moving the loads of cocaine from/to the land and vessels.

17. On December 12, 2012, the CS met with defendant Yu. This meeting was also

recorded and produced in discovery. During the meeting, defendant Yu explained that he wanted

to take care of the debt owed to Moreno. Defendant Yu is also recorded indicating that he used

defendant Masters for at least seventeen (17) drug smuggling ventures wherein defendants

Masters and Pelaggi charged $4,000.00 per kilogram of cocaine when transported from St.

Maarten to Puerto Rico.

18. In approximately June 2013, defendants Masters, Yu and Chun Pan Chiu met in St.

Maarten. The meeting was to arrange a new load to occur in August to July 2013. The load was

arranged by defendant Yu. Defendants Pan Chiu and Masters signed a loan agreement for

$15,000.00 on June 29, 2013. According to the document, signed in blue ink by defendants Pan

Chiu and Masters the purpose of the loan: well known to parties and requires no further
 Case 3:13-cr-00380-JAG Document 227 Filed 10/16/14 Page 6 of 9

explanation. Defendant Masters placed her 1999 Replica Blue Cobra Mustang as collateral for

the money Pan Chiu gave her. This vehicle is subject to criminal forfeiture. The Defendant

Masters then flew to Puerto Rico and met with defendant Dennis Tosado-Nunez, who frequently

facilitated defendant Yu in the moving of kilograms of cocaine. For this particular venture,

defendant Tosado-Nunez was to assist in the sailing of one of her vessels. Fifty (50) kilograms of

cocaine were to be smuggled into Puerto Rico.

19. On July 9, 2013, the same CS spoke with defendant Yu in order to sell him 50

kilograms of cocaine that CS purportedly had in Puerto Rico. During the negotiations, defendant

Yu manifested that he had associates in Puerto Rico that were interested in purchasing the 50

kilograms of cocaine and that he would travel to Puerto Rico to buy them.

20. On July 11, 2013, Customs and Border Protection officials confirmed to DEA

agents that defendant Yu was scheduled to board Jet Blue Flight 1938 at the Jose Francisco Pea

Gomez International Airport in Santo Domingo, Dominican Republic, and fly into the Luis Muoz

Marn International Airport in Carolina, Puerto Rico. Based on this information, established

surveillance at the airport and observed that already there was an Infiniti QX SUV taxi with tinted

windows. The taxi stood out to the agents because on two previous occasions, defendant Yu had

used luxury taxis as means of transportation to arrive to drug transactions.

21. The surveillance team inside the airport observed defendant Yu go directly to the

taxi and board it. The taxi left the airport and proceeded via the Baldorioty De Castro expressway

to a cell phone concessionary located in the vicinity of Vistamar in Carolina, PR. While driving to

the cell phone concessionary, surveillance team followed the taxi, who was purposefully evading

any kind of surveillance. Specifically, the taxi departed the airport accelerating erratically,

making last minute maneuvers to take exits, changing lanes erratically, using the emergency lane

and ran a red light to their destination in an effort to evade surveillance. At their destination,
 Case 3:13-cr-00380-JAG Document 227 Filed 10/16/14 Page 7 of 9

defendants Yu, Pan Chiu 3 and Christian Masa-Tosado exited the taxi and went into the cell phone

store.

22. On July 12, 2013, the CS met with defendant Yu to further discuss the details of the

50 kilograms of cocaine transaction. The final negotiation was to be for defendant Yu to purchase

five kilograms of cocaine up front at a price of $25,000.00 per kilogram and then purchase the rest

of the forty-five kilograms of cocaine. Armed with defendant Yus arrest warrant from Criminal

Case No. 13-380(CCC), on July 13, 2013, agents from DEA conducted an operation wherein

defendant Yu was to purchase the purported 50 kilograms from the CS.

23. While the purchase/sell of the cocaine was to take place, on July 13, 2013,

defendants Yu, Pan Chiu, Tosado-Nunez, and Masa-Tosado were arrested in the above-captioned

matter. 4

24. On July 12, 2013, at approximately 3:00 pm, DEA agents positioned in the vicinity

of the Starbucks coffee shop in Condado for the transaction. The transaction was to take place at a

parking lot located behind the Starbucks.

25. At approximately 4:50 pm, agents spotted another taxi with tinted windows driving

in the vicinity of the Condado Starbucks. This taxi passed the Starbucks, then went around the

block, returned and went into the parking lot. Defendant Hannibal Sierra-Llanos was driving the

taxi with Tosado-Nunez as front seat passenger and Pan Chiu in the back seat. They parked inside

the parking lot on the opposite lane of where the CS was located.

26. When Sierra-Llanos, Tosado-Nunez and Pan Chiu arrived, defendant Yu asked the

CS to accompany him to the parking lot behind. Defendant Yu went to the taxi wherein the latter

three were located and retrieved the bag with the money for the purchase of the cocaine. After

3 Defendant Pan Chiu had arrived the day before from St. Maarten.
4 On July 17, 2013, defendant Yu along with [2] Chun Pan Chiu, [3] Dennis Tosado-Nuez, [4] Hanibal Sierra-Llanos
and [5] Christian Alberto Masa-Tosado were indicted for conspiring to possess more than five (5) kilograms of
cocaine and conspiring to possess firearms in furtherance of drug trafficking crimes in violation of 21 USC 846 and 18
USC 924(o). (ECF No. 1). (See Criminal Case No. 13-412(CCC)).
 Case 3:13-cr-00380-JAG Document 227 Filed 10/16/14 Page 8 of 9

retrieving the bag with the money, defendant Yu and the CS went toward the CS car and that is

when the arrests were executed. 5

27. While clearing the arrest scene, TFO Angel Fontanez noticed that an Infiniti taxi

was driving by the parking lot slowly and almost came to a stop at the exit of the parking lot where

the arrests were taking place. After confirming that it was the same Infiniti taxi from the day

before, TFO Fontanez relayed the information, and asked for the PRPD unit to conduct a traffic

stop on the Infiniti taxi. The PRPD unit located the Infiniti taxi that was being driven by Christian

Masa-Tosado. As the PRPD unit approached the taxi, Masa-Tosado accelerated and tried to

escape, running into a traffic jam which obligated Masa-Tosado to enter the Puma gas station

where he was placed under arrest. While agents were processing Masa-Tosado, he told the agents

that he was the cousin of defendant Tosado-Nunez and that he was the one who picked up

defendants Yu and Pan Chiu the day before from the airport.

28. It is clear that the events, facts and evidence between both indictments are

inextricably intertwined and cannot be explained separately but must be presented together.

Because the matters at issue in both criminal cases are substantially related and involve

substantially the same defendants, similar transactions, and events, the two referenced cases were

the product of a single investigation, and the government intends to rely upon the same witnesses

and evidence in order to prove both the criminal offenses charged in both indictments, the United

States respectfully requests that Criminal Case No. 13-412(CCC) be transferred to the Honorable

Judge Jay A. Garcia and that it be consolidated into Criminal Case No. 13-380(JAG) for that only

one jury hears the evidence.

5 While PRPD agent Alexander Soto was retrieving SIERRA-LLANOS from the drivers seat, SA Ruben Rivera,
who was providing cover to Soto, noticed that SIERRA-LLANOS had inside the waist a gun holster and advised Soto.
When SIERRA-LLANOS heard this, he told SA Rivera that he had a gun, that he had taken it out when he saw the van
from the arrest team blocking his vehicle, but that he then threw it down when he realized it was the police but that he
had a valid license for it. A fully loaded .40 caliber, Glock 22 pistol, bearing serial no. NHT157, was found in the
drivers seat. A .40 caliber, Ruger pistol, bearing serial no. 343-13025, was found on the floor board of the front
passengers seat. TOSADO-Nunez claimed ownership of the Ruger pistol.
 Case 3:13-cr-00380-JAG Document 227 Filed 10/16/14 Page 9 of 9

WHEREFORE it is very respectfully requested that this Honorable Court GRANT the

instant motion.

RESPECTFULLY SUBMITTED.

In San Juan, Puerto Rico, this 16th day of October, 2014.

ROSA EMILIA RODRIGUEZ-VELEZ

UNITED STATES ATTORNEY

/S/DINA AVILA-JIMENEZ-USDC#224202
Dina Avila-Jimnez
Assistant United States Attorney
U.S. Attorney's Office
Torre Chardn, Suite 1201
# 350 Carlos Chardn Ave.
Hato Rey, PR 00918
Tel.: (787) 766-5656
Fax: (787) 772-4012

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on October 16, 2014, I electronically filed the foregoing with
the Clerk of the Court using the CM/ECF system.

S/DINA AVILA-JIMENEZ-USDC #224202

Dina Avila-Jimenez
Assistant United States Attorney