Date: Oct. 23, 2024 Contact: newsroom@ci.irs.gov Kansas City, MO — A Mexican national who worked with a drug-trafficking organization tied to the Cárteles Unidos cartel in Michoacán, Mexico, was convicted by a federal trial jury today of his role in a $4.7 million conspiracy to distribute more than 335 kilograms of methamphetamine and 22 kilograms of heroin in the Kansas City, Mo., metropolitan area and throughout the United States. Luis Eduardo Pineda-Zarao, a citizen of Mexico residing in Lebanon, Tennessee, was found guilty of participating in a conspiracy to distribute methamphetamine and heroin from Feb. 28, 2020, to June 1, 2022. The indictment alleges the conspiracy involved the distribution of more than 335.5 kilograms of methamphetamine, with an average street price of $300 per ounce, and more than 22.1 kilograms of heroin, with an average street price of $1,500 per ounce. During the investigation, federal agents with Homeland Security Investigations conducted two undercover bulk cash pickups totaling $308,775 and seized $610,400 in bulk cash, over 56 kilograms of methamphetamine, 5.5 kilograms of heroin, 2.6 kilograms of marijuana, and at least eight firearms, two of which were stolen. Law enforcement officers also seized $277,863 during a vehicle stop and $114,863 while executing search warrants at four Kansas City, Mo., residences. Pineda-Zarao is among 44 defendants charged in this case. Nine co-defendants have been sentenced and 34 co-defendants have pleaded guilty and await sentencing. Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for less than an hour before returning guilty verdicts to U.S. District Judge Greg Kays, ending a trial that began Monday, Oct. 21. Under federal statutes, Pineda-Zarao is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Megan Baker. It was investigated by IRS-Criminal Investigation (IRS-CI), Homeland Security Investigations, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Jackson County Drug Task Force, the Kansas Bureau of Investigation, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Missouri State Highway Patrol, the Kansas Highway Patrol, the Independence, Mo., Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Olmsted County, Minn., Sheriff’s Office, the Texas Department of Public Safety, the FBI, the Clay County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service. IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
