Phoenix – Special Agents with the Arizona Attorney General’s Office executed 7 search warrants and served 5 indictments in connection with a $2.8 million money laundering, drug trafficking, and fraud of state benefits investigation. The AZ DES Office of the Inspector General, the Pinal County Sheriff’s Department, and the Pima County Sheriff’s Department assisted in the investigation and the execution of today’s search warrants.
The Attorney General’s Office believes the suspects were involved in an elaborate drug and money laundering criminal enterprise. Five of those suspects were served with indictments today and additional suspects are currently outstanding. The Defendants are alleged to have funneled more than $2.8 million through bank accounts across the United States. The Defendants allegedly mailed marijuana to locations mostly on the east coast, and money was then deposited into the Defendants bank accounts from those east coast locations.
The Defendants were allegedly receiving aid from Arizona DES and AHCCCS that they obtained by forging applications that misrepresented their income, bank accounts and assets. The investigation began when the AZ DES Office of the Inspector General noticed inconsistencies in one Defendant’s application for public benefits and forwarded the information to the Attorney General’s Office. Special Agents with the AG's Special Investigations Section discovered additional suspects and uncovered the alleged money laundering and drug trafficking syndicate.
Search warrants were served at the following locations:
- 18600 Block W. Shedd Rd., Casa Grande, AZ 85193
- 7000 Block of S. Prospector Peak Dr., Tucson, AZ 85756
- 5800 Block of E. Klafter Rd., Tucson, AZ 85756
- 400 Block of E. Wilcox Lane, Tucson, AZ 85705
- 100 Block of E. Corona St.,Tucson, AZ 85706
- 4500 Block of S. Liberty Ave.,Tucson, AZ 85714
- 6400 S. Camino De La Tierra, Tucson, AZ, 85746
5 suspects were served with Indictments:
- Carlos David Nogales, Sr. alleged ringleader
- Carlos David Nogales, Jr. alleged ringleader
- Jasmine Sandoval
- Peter Jackson
- Layza Sandoval
The Defendants are charged with:
- Fraudulent Schemes and Artifices, a Class 2 Felony
- Forgery, a Class 4 Felony
- Money Laundering, a Class 3 Felony
- Transportation of Marijuana for Sale, a Class 2 Felony
- Illegally Conducting/Control of an Enterprise, a Class 3 Felony
Marijuana was found in at least two of the search warrant locations. The investigation is ongoing.
Special Agent Kevin Spencer with the Attorney General's Special Investigations Unit is the lead investigator on this case.
This case is being prosecuted by Assistant Attorney General Jared Kreamer-Hope.
For additional information, members of the media may contact Mia Garcia, Spokesperson & Director of Media Relations at 602-339-5895 or Mia.Garcia@azag.gov.