Alleged Southland drug traffickers charged in federal ‘Darknet’ case

LOS ANGELES (CNS) — Federal officials announced a crackdown today on an alleged Los Angeles-based drug trafficking ring that they said distributed methamphetamine and other narcotics to thousands of customers in at least 35 states and numerous countries around the world via hidden darknet websites.

Prosecutors said the organization used online names such as “Stealthgod” to sell meth and MDMA — known as ecstasy or molly — on multiple darknet marketplaces. Investigators alleged the crew has been linked to more than 18,000 illicit drug sales to buyers throughout the globe.

An alleged meth trafficker who was a key supplier to the organization is being sought after being charged last week in Los Angeles federal court.

Earlier this year, five other alleged members of the narcotics ring were arrested on federal charges, and authorities made substantial seizures of narcotics and cryptocurrency during the probe, according to the US Attorney’s Office.

“These online black market websites use a variety of technologies, including the Tor network and other encryption technologies, to ensure that communications and transactions are shielded from interception and monitoring,” according to court documents filed last week in Los Angeles. “A famous dark web marketplace, Wall Street Market, operated similar to legitimate commercial websites such as Amazon and eBay, but offered illicit goods and services in exchange for virtual currencies, such as bitcoin.”

During an operation earlier this year, members of Los Angeles Joint Criminal Opioid and Darknet Enforcement — JCODE — executed search warrants that led to the seizure of more than 60 parcels containing narcotics that were ready to be shipped across the country, prosecutors said.

Andres Bermudez of Palmdale, 37, who allegedly was the key supplier of meth to the crew, is currently a fugitive being sought by federal authorities, according to the US Attorney’s Office.

During takedowns in Los Angeles in February, members of JCODE arrested five defendants allegedly at the center of the “Stealthgod” organization and seized about 120 pounds of meth, seven kilograms of ecstasy, and five firearms.

The five defendants arrested on federal charges are:

— Teresa McGrath, 34, of Sunland-Tujunga, who allegedly delivered dozens of narcotics-laden packages to a post office in Sunland;

— Rane Melkom, 35, of Sunland-Tujunga, who shared a residence with McGrath where authorities allegedly seized more than 50 pounds of meth, nearly 15 pounds of ecstasy, about 30,000 Adderall pills, cash, and three loaded handguns;

— Mark Chavez, 41, of downtown Los Angeles, whose bedroom allegedly yielded nearly 40 pounds of methamphetamine and two handguns during a search in February;

— Matthew Ick, 51, of downtown Los Angeles, who is linked in court papers to a narcotics shipment to the organization; and

— Thomas Olayvar, 43, of downtown Los Angeles, who allegedly was involved in the shipment of narcotics through the United States Postal Service.

McGrath has pleaded guilty to conspiracy to distribute methamphetamine and MDMA, possession of a firearm in furtherance of drug trafficking, and cryptocurrency money laundering, admitting that over the course of about six months she received $161,916 in bitcoin and helped disburse this money to her co-conspirators, prosecutors said.

Chavez has pleaded guilty to conspiring to distribute meth and ecstasy, as well as possessing a firearm in furtherance of drug trafficking.

McGrath and Chavez are scheduled to be sentenced next year, when each will face up to 15 years in federal prison.

Melkom, Ick, and Olayvar face various narcotics charges and are scheduled to go on trial next year in downtown Los Angeles.

In addition to the Stealthgod cases, federal prosecutors in Los Angeles have filed cases against other alleged darknet narcotics traffickers and those who help them convert bitcoin into gold or similar currencies. For example:

— Kais Mohammad, 36, of Yorba Linda, is scheduled to plead guilty Thursday to federal charges stemming from the operation of 17 bitcoin kiosks across Southern California. In his plea agreement, Mohammad admitted that he knew that at least one of his clients was engaged in illicit activity on the dark web.