Monmouth County Prosecutor Luis A. Valentin and U.S. Drug Enforcement Administration (DEA), New Jersey Division, Special Agent-in- Charge Gerard P. McAleer announced that on Jan. 26 a Monmouth County grand jury returned a 38-count indictment against 16 defendants following a more than yearlong investigation into a cocaine-trafficking and money-laundering network based in Manalapan.
According to a press release from the Monmouth County Prosecutor’s Office, the investigation was initiated in spring 2007. It revealed that Vicente Esteves, 36, of Manalapan, was the leader of a racketeering enterprise that was responsible for the distribution of significant quantities of cocaine to Monmouth County and the surrounding area. The cocaine came from sources across the United States and in other countries. The investigation additionally revealed that Esteves hid the proceeds of his criminal activity through a “money laundering” scheme orchestrated by Dennis Krousos, 45, of Monmouth Beach, a certified public accountant and mortgage banker with an office in Woodbridge.
The investigation, dubbed Operation Unbounded, commenced after the DEA received information that the organization was based in Manalapan and operating in neighboring Middlesex County. The investigation ultimately revealed that the organization’s method of operation was to import cocaine from the Dominican Republic and from Atlanta, Ga., and to use two corporations owned by Vicente Esteves, as well as other financial schemes used by Krousos and Vicente Esteves, to launder the financial proceeds of the criminal activities.
Vicente Esteves is accused of employing a number of schemes with various individuals in order to grow his drug-trafficking and “money-laundering” empire. He was an owner of Diamond Builders of New Jersey, LLC, and Bacardi Oil, LLC, both of which were legitimate companies that Esteves is suspected of using to launder money, according to the press release. Esteves was a primary trafficker of cocaine on the East Coast and he developed routes through Canada and Georgia. In addition, he used money couriers to deliver large amounts of money, generally in the amount of approximately $500,000, according to the allegations.
Rachel Marshall, 37, of Newark, also is suspected of “money laundering” by structuring bank deposits for Leonardo Hernandez in order to purchase real property with cash. She deliberately kept the amount of the bank deposits below $10,000 to avoid the necessity of filing Currency Transaction Reports and in an effort to prevent financial institutions from being obligated to file Suspicious Activity Reports, according to the press release. Marshall also committed “money laundering” by failing to file Internal Revenue Service Form 8300 when she received cash from Hernandez.
The 2009 edition of the New Jersey Lawyers Diary lists Marshall as an attorney in New Jersey with a law office in Jersey City.
Several vehicles, including a Mercedes- Benz used by Chantal Esteves, Vicente Esteves’ wife, were seized during the course of the investigation. Investigators also seized homes and real property owned by the Esteveses as well as U.S. currency and jewelry. The replacement value of the jewelry seized from the Esteves home in Manalapan — at the corner of Tennent and Taylors Mills roads — was appraised in excess of $2 million. The total cash expenditures by Vicente and Chantal Esteves alone were determined to be in excess of $5 million for the past seven years, according to the press release.
The indictment charges the defendants named therein with a variety of crimes, including, but not limited to, second degree racketeering conspiracy, first-degree possession of controlled dangerous substances with intent to distribute and first-, secondand third-degree financial facilitation of criminal activity (commonly referred to as “money laundering”).
The indictment charges Vicente Esteves, 36, of Manalapan, with second-degree racketeering conspiracy, first-degree leader of a narcotics trafficking network, third-degree possession of a controlled dangerous substance (CDS), first-degree possession of a CDS with intent to distribute, four counts of first-degree financial facilitation of criminal activity, three counts of second-degree financial facilitation of criminal activity, four counts of first-degree financial facilitation of criminal activity, two counts of third-degree financial facilitation of criminal activity, three counts of failure to file state income tax returns, three counts of failure to pay or turn over state income taxes, two counts of second-degree misconduct by a corporate official, and one count each of fourth-degree deceptive business practices, fourth-degree falsifying records and four counts of fourth-degree unlawful check cashing.
Esteves is being held at the Monmouth County jail, Freehold Township, in lieu of $2.5 million bail.
If convicted of the leader of a narcotics trafficking network charge, Esteves faces a maximum potential custodial sentence of up to life in prison with a mandatory 25-year period of parole ineligibility. In addition, the court may impose a fine up to $750,000. The additional first-degree crimes that Esteves is charged with have upon conviction a maximum potential custodial exposure of up to 20 years in state prison. The seconddegree crimes that Esteves is charged with have upon conviction a maximum potential custodial exposure of up to 10 years in state prison, the third-degree crimes carry a maximum potential custodial exposure of up to five years in state prison and the fourth-degree crimes carry a maximum potential custodial exposure of up to 18 months in state prison.
The indictment charges Dennis Krousos, 45, of Monmouth Beach, with second-degree racketeering conspiracy, first-degree financial facilitation of criminal activity, two counts of second-degree misconduct by a corporate official, fourth-degree deceptive business practices, third-degree falsifying records and four counts of fourth-degree unlawful check cashing.
Krousos surrendered to detectives from the Monmouth County Prosecutor’s Office following the return of the indictment. Krousos is free on $750,000 bail. Conditions of Krousos’ bail included a “source of funds” hearing, the execution of a formal waiver of extradition and that Krousos surrender his passport.
The indictment charges Vicente Esteves’ wife, Chantal Esteves, 36, of Manalapan, with second-degree racketeering conspiracy and first-degree financial facilitation of criminal activity. Chantal Esteves is free on $750,000 bail. Conditions of Chantal Esteves’ bail include a “source of funds” hearing, the execution of a formal waiver of extradition and that Chantal Esteves surrender her passport.
The indictment charges Hector Rodriguez, 41, of Old Bridge, with second degree racketeering conspiracy, third-degree possession of a controlled dangerous substance, first-degree possession of a CDS with intent to distribute, first-degree financial facilitation of criminal activity and second degree financial facilitation of criminal activity. Rodriguez is free on $750,000 bail.
The indictment charges Michael Lopez, 35, of Perth Amboy, with second-degree racketeering conspiracy and third-degree financial facilitation of criminal activity. Lopez is free on $100,000 bail.
The indictment charges Mark Edwards, 40, of Metuchen, with second-degree racketeering conspiracy and second-degree financial facilitation of criminal activity. Edwards is free on $150,000 bail.
The indictment charges Arsenio Alejo, 41, of Perth Amboy, with second-degree racketeering conspiracy and second-degree financial facilitation of criminal activity. Alejo is free on $120,000 bail.
The indictment charges Jose Tapia, 34, of Perth Amboy, with second-degree racketeering conspiracy and second-degree financial facilitation of criminal activity. Tapia is free on $120,000 bail.
The indictment charges Miguel Yvan Tineo Paulino, 34, of Hialeah, Fla., with second-degree racketeering conspiracy and second-degree financial facilitation of criminal activity. Paulino is free on $100,000 bail. The indictment charges Danilo Chenpui, 30, of Hackensack, with second-degree racketeering conspiracy and first-degree financial facilitation of criminal activity. Chenpui remains at large and authorities continue to search for him. Individuals with information regarding Chenpui’s current whereabouts are asked to contact Detective Sgt. Thomas Nuccio of the Monmouth County Prosecutor’s Office at 800-848- 0668.
The indictment charges Brijido Carlos Noyola with second-degree racketeering conspiracy, third-degree possession of a CDS and first-degree possession of a CDS with intent to distribute. Noyola remains at large and authorities continue to search for him. Individuals with information regarding Noyola’s current whereabouts are asked to contact Detective Nuccio at the number mentioned above.
The indictment charges Rene Sanchez with second-degree racketeering conspiracy, third-degree possession of a CDS and first-degree possession of a CDS with intent to distribute. Sanchez remains at large and authorities continue to search for him. Individuals with information regarding Sanchez’s current whereabouts are asked to contact Detective Nuccio.
The indictment charges Leonardo Hernandez, 37, of Hillsborough, with second degree racketeering conspiracy, third-degree financial facilitation of criminal activity, second-degree misconduct by a corporate official, fourth-degree deceptive business practices and third-degree falsifying records. Hernandez surrendered to detectives from the Monmouth County Prosecutor’s Office. He was lodged at the Monmouth County jail in lieu of $150,000 bail. The indictment charges RachelMarshall with second-degree racketeering conspiracy, third-degree financial facilitation of criminal activity, third-degree misconduct by a corporate official, and fourth-degree deceptive business practices. Marshall surrendered to detectives from the Monmouth County Prosecutor’s Office on Jan. 27. Marshall is free on $25,000 bail.
The indictment charges Cesar Cabrera Cepeda, 39, of Old Bridge, with second-degree racketeering conspiracy. Cepeda is free on $100,000 bail.
The indictment charges Alfurquan Barringer, also known as Alfurquan Maing, 35, of South River, with second-degree racketeering conspiracy. Barringer is free on $100,000 bail.
The next court proceeding for the defendants will be an arraignment, which is the formal presentation of the indictment to the defendants. The arraignment has been scheduled for March 3 before state Superior Court Judge Anthony J. Mellaci Jr., sitting in Freehold.
Valentin said, “This investigation dismantled a significant international narcotics trafficking network which operated out of Vicente Esteves’ Manalapan residence. The network relied upon sophisticated money laundering techniques designed to protect and hide the proceeds of criminal activity. The law enforcement agencies which investigated this matter are credited for their professional commitment to protecting Monmouth County and the state of New Jersey.”