Drug Enforcement Administration

San Francisco

Christopher Nielsen, Special Agent in Charge

March 20, 2019

Contact: Casey Rettig

Phone Number: (415) 436-7994

Ringleader of Central Valley drug trafficking organization sentenced to 20 years prison

Law enforcement seized more than 40 pounds of methamphetamine, 65 pounds of cocaine, 11 pounds of heroin, and approximately $1,200,000 in cash

SAN FRANCISCO – Carlos Olivares Hernandez was sentenced today to 20 years in prison for his involvement in a methamphetamine and cocaine trafficking conspiracy, announced United States Drug Enforcement Administration Special Agent in Charge Chris Nielsen and U.S. Attorney David L. Anderson. The sentence was handed down by the Honorable James Donato, U.S. District Judge.

 

Olivares Hernandez, 52, a citizen of Mexico and formerly of Turlock, Calif., pleaded guilty on May 24, 2018, to participating in a conspiracy to traffic methamphetamine and cocaine. According to the plea agreement, Olivares Hernandez admitted he obtained bulk quantities of cocaine and methamphetamine; managed the storage and distribution of cocaine and methamphetamine; and managed the collection, storage, and transportation of bulk cash proceeds of drug sales. Olivares Hernandez also admitted that he was the organizer or leader of the conspiracy, which involved five or more participants.

 

At sentencing, Judge Donato characterized Olivarez Hernandez as a “merchant of death and destruction” who had committed “heinous crimes.” Judge Donato further described the “enormous” quantities of drugs distributed by Olivares Hernandez’s drug trafficking conspiracy and stated that Olivares Hernandez’s drug trafficking was responsible for “destroying communities.” 

 

Olivares Hernandez admitted that on numerous occasions in August, September, and October 2015, he spoke with his drug customers, drug and money stash house operators, and drug and money couriers to coordinate cocaine and methamphetamine sales, the arrival of cocaine and methamphetamine supplies, and the collection of cash proceeds of drug sales. On Sep. 5, 2015, for example, law enforcement intercepted a shipment of approximately 22 pounds of methamphetamine intended for Olivares Hernandez’s drug distribution network. On Oct. 11 and 12, 2015, Olivares Hernandez coordinated with his co-conspirators the collection and transportation of nearly $400,000 in cash.

 

On Oct. 13, 2015, law enforcement authorities executed search warrants at multiple locations in connection with this case. At one of Olivares Hernandez’s stash houses in Delhi, Calif., authorities seized approximately 25 pounds of cocaine, one-half pound of methamphetamine, and $157,230 in cash. The same day, authorities seized approximately $201,790 in drug proceeds from Olivares Hernandez’s home, as well as approximately 31 pounds of cocaine, 2.9 pounds of methamphetamine, and $367,040 in cash from another of Olivares Hernandez’s stash houses in Ballico, Calif. 

 

As part of this investigation, authorities also executed search warrants at the homes of Olivares Hernandez’s drug customers. From one customer, co-defendant Manuel Chavez, authorities seized approximately 3.5 pounds of methamphetamine, 9 pounds of cocaine, 11 pounds of heroin, $43,500 in cash, and multiple firearms. From another co-defendant, Ismael Mendoza Rodriguez, authorities seized more than 10 pounds of methamphetamine, $34,455 in cash, and multiple firearms.

 

On Nov. 19, 2015, a federal grand jury indicted Olivares Hernandez and 12 co-defendants for various crimes related to the drug trafficking scheme. The grand jury charged Olivares Hernandez with conspiracy to distribute and possess with intent to distribute controlled substances, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and with money laundering. Gonzalez Chavez pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine. 

 

In addition to the 20-year prison term, Judge Donato sentenced Olivares Hernandez to a 10-year term of supervised release. Olivares Hernandez has been in custody since his arrest on Oct. 13, 2015.

 

Olivares Hernandez is the 13th and final defendant sentenced as part of the conspiracy to distribute and possess with intent to distribute controlled substances in this case. All of Olivares Hernandez’s co-defendants have pleaded guilty. During the course of this investigation, law enforcement seized more than 40 pounds of methamphetamine, more than 65 pounds of cocaine, more than 11 pounds of heroin, more than $1,200,000 in cash drug proceeds, and approximately 12 firearms. 

 

The prosecution is the result of an investigation by the DEA, Concord Police Department, and IRS Criminal Investigations. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.

 

Defendant

Age/

Residence

Charges

Status

Jesus Guadalupe Rojas

32/

Turlock

Distribution of methamphetamine, 21 U.S.C. §§ 841(a)(1)

Sentenced on June 14, 2017, to 24 months in prison and 3 years supervised release.

 

Jose Armando Mendoza Linares

42/

Turlock

Conspiracy to distribute and possess with intent to distribute methamphetamine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Sentenced on Oct. 25, 2017, to 60 months in prison and 5 years supervised release.

Gabriel Estrada

41/

Compton

Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

Sentenced on Dec. 13, 2017, to 70 months in prison and 3 years supervised release

 

Vanessa Valdez

31/ Chula Vista

Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

Sentenced on Dec. 13, 2017, to 22 months in prison and 3 years supervised release.

 

Elias Dominguez

46/

Patterson

Conspiracy to distribute and possess with intent to distribute methamphetamine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Sentenced on Jan. 24, 2018, to 55 months in prison and 5 years supervised release.

 

Carlos Martinez

26/

Hayward

Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Sentenced on Feb.  21, 2018, to 30 months in prison and 3 years supervised release.

 

Ismael Mendoza Rodriguez

37/

Turlock

Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Possession of a firearm in furtherance of drug trafficking, 18 U.S.C. § 924(c)

Sentenced on Feb. 21, 2018, to 200 months in prison and 5 years supervised release.

Michael Sherman

48/

Lathrop

Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Sentenced on Feb.  28, 2018, to 32 months in prison and 3 years supervised release.

Ruben Franco Lopez

48/

Turlock

Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Sentenced on March 7, 2018, to 37 months in prison and 3 years supervised release.

Manuel Lara Andrade

64/

Delhi

Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Sentenced on March 14, 2018, to 140 months in prison and 5 years supervised release.

Daniel Jimenez

48/

Ballico

Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Sentenced on Nov. 7, 2018, to 128 months in prison and 5 years supervised release.

Manuel Gonzalez Chavez

42/

Stockton

Conspiracy to distribute and possess with intent to distribute methamphetamine, heroin, and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Possession of a firearm in furtherance of drug trafficking, 18 U.S.C. § 924(c)

 

Sentenced on Dec. 12, 2018, to 312 months in prison and 3 years of supervised release.

Carlos Olivares Hernandez

52/

Turlock

Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)

 

Sentenced on March 20, 2019, to 20 years in prison and 10 years of supervised release.

 

 

 

 

 

DEA US Badge
United States Drug Enforcement Administration DEA.gov is an official site of the U.S. Department of Justice