United States Drug Enforcement Administration

SAN DIEGO – Claudia Patricia Alvarez Hernandez, the wife of incarcerated Sinaloa Cartel kingpin Jorge Alberto Valenzuela Valenzuela, was sentenced in federal court today to 14 years in prison for her role in a massive drug trafficking and money laundering conspiracy.

U.S. District Judge Andrew G. Schopler also ordered Alvarez Hernandez to forfeit more than $5 million dollars’ worth of luxury watches, jewelry, vehicles and bulk cash seized during this case. During the hearing, Judge Schopler characterized Alvarez Hernandez’s conduct as “assisting a dangerous and violent cartel.”

This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization (TCO), which was a significant component of the Sinaloa Cartel. The Valenzuela TCO was one of the largest importers of cocaine into the United States. The TCO sourced cocaine and other controlled substances (including fentanyl, heroin, methamphetamine, and marijuana) from South America and Mexico, transported the drugs to multiple locations along the U.S.-Mexico border using commercial trucking companies, smuggled the narcotics into the country, and distributed them throughout the U.S. The TCO then smuggled the bulk cash proceeds from its drug trafficking activities back to the TCO’s leadership in Mexico.

According to court records, throughout 2020, the Valenzuela TCO, including one of its leaders, Jorge Alberto Valenzuela Valenzuela (“Jorge”), was engaged in violent conflict with another component of the Sinaloa Cartel led by Ivan Archivaldo Guzman-Salazar. During this conflict, Jorge’s brother and previous TCO leader, Gabriel Valenzuela-Valenzuela, was killed. This led the Valenzuela TCO to procure large quantities of firearms, ammunition, tactical gear, armored vehicles, and ballistic vests. A considerable number of these items were sourced from within the United States and clandestinely smuggled into Mexico, using numerous arms trafficking networks.

As the investigation progressed in 2020, agents began to target private jet aircrafts operated by the TCO. In October 2020, while tracking the movement of one of the aircrafts and conducting surveillance at every stop across the county, agents learned that Jorge was onboard. Agents then coordinated with HSI Boston to arrest Jorge.

On November 5, 2020, a federal grand jury sitting in the Southern District of California returned an indictment charging Jorge with drug trafficking and money laundering offenses (in case number 20-cr-3515-AGS). Jorge subsequently pleaded guilty to all counts and is currently in custody in the Southern District of California pending sentencing.

Following Jorge’s arrest, on November 20, 2020, DEA and HSI agents initiated surveillance at a commercial truck yard being operated by the Valenzuela TCO in the Otay Mesa area of San Diego. Agents ultimately obtained a search warrant for this truck yard and during the search, seized approximately $3,078,880 in bulk U.S. currency, approximately 685 kilograms of cocaine, 24 kilograms of fentanyl, and a pickup truck with a trap gas tank the size of half the truck bed were discovered. The truck yard contained numerous tractors and trailers, along with numerous other vehicles. Inside one of the trailers, agents seized approximately 20,000 rounds of .50 caliber ammunition, along with approximately 427 ballistic plate carriers, approximately 1,000 rounds of .40 caliber ammunition, and approximately 104 magazines for .50 caliber ammunition.

During this multi-year investigation, agents identified Claudia Patricia Alvarez Hernandez as the wife of Jorge and a trusted high-ranking member of the TCO. During the last 20 years, Jorge rose from a low-level drug trafficker to a top Sinaloa Cartel drug kingpin. As part of her relationship with Jorge, Alvarez Hernandez was able to live in luxury (purchasing and enjoying luxury watches, jewelry, high-end residences, dozens of real properties, automobiles, and other items) based on the massive amount of cocaine that Jorge and his organization trafficked.

Following Jorge’s arrest in October 2020, Alvarez Hernandez and other family members became intimately involved in the operation of Jorge’s organization by exercising supervisory authorities over its remaining members and trying to locate and preserve its many illegal assets both in Mexico and the United States. And on November 3, 2020, HSI San Diego executed a search warrant at the residence of Alvarez Hernandez in San Diego County and seized approximately $5 million in the form of high-end luxury watches, jewelry, $220,000 in cash, 17 cellular phones, and an RF Detector, among other items.

To date, this investigation has resulted in the charging of 109 defendants and the seizure of approximately 2,000 kilograms of cocaine and fentanyl, over $16 million in cash, and 21,000 rounds of ammunition.

“For years Alvarez Hernandez lived in comfort while turning a blind eye to the violence, addiction, and devastation her husband’s cartel inflicted on our communities,” said DEA Special Agent in Charge James Nunnallee. “Today’s 14-year sentence makes clear that those who profit from drug trafficking will be held accountable, whether they are on the front lines or living in luxury. The DEA remains committed to pursuing every individual who enables cartel operations and fuels the suffering of innocent families.”

“Cartel WAGs are in for a rude awakening,” said U.S. Attorney Adam Gordon. “There is a lie behind their luxury: that they didn’t know. This sentence reflects the reality.”

“Today’s sentencing marks a major step in our efforts to dismantle all factions of the Sinaloa Cartel,” said HSI Acting Special Agent in Charge Kevin Murphy. “The defendant played a key role in a violent drug trafficking and money laundering conspiracy that brought dangerous narcotics into our communities and fueled cartel violence. The forfeiture of millions in luxury assets and the lengthy prison sentence send a clear message: those who assist and profit from cartel operations will be held accountable. HSI and our partners remain committed to disrupting transnational criminal organizations and protecting public safety.”

“Today’s sentencing confirms the extensive and damaging role the defendant played within the Sinaloa Cartel, a dangerous Transnational Criminal Organization infiltrating our communities,” said Mark Dargis, Special Agent in Charge of the FBI San Diego Field Office. “Alvarez Hernandez took ownership of her incarcerated husband’s illegal dealings to preserve her way of life, no matter who it hurt. The FBI and our law enforcement partners will not stop until all these dangerous cartel leaders behind the drugs and violence in our neighborhoods are held accountable.”

“Following the money is one of the most effective ways to bring down criminal organizations’” said Tyler Hatcher, Special Agent in Charge of the IRS Criminal Division for Los Angeles. “Our special agents will continue to work tirelessly to trace and seize millions in illicit proceeds, ensuring that crime does not pay.”
This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela Weber.
 

INVESTIGATING AGENCIES
United States Attorney's Office; Homeland Security Investigations; Federal Bureau of Investigation; Internal Revenue Service - Criminal Investigation; United States Marshals Service; Customs and Border Protection, Office of Field Operations; Customs and Border Protection, Office of Border Patrol; Department of Justice, Office of Enforcement Operations; Department of Justice, Office of International Affairs; San Diego County Sheriff’s Department; San Diego Police Department; Border Crime Suppression Team; San Diego County District Attorney’s Office

This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and Interpol, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.