A man who lived in Raleigh oversaw a sophisticated and violent organization that made and sold counterfeit ID cards in 11 states, including in three cities in North Carolina, according to a federal indictment made public Thursday in Richmond, Va.
According to the federal grand jury indictment, Israel Cruz Millan, 28, an illegal immigrant nicknamed "El Muerto," managed the U.S. operation of a Mexican-based organization that sold thousands of fake documents to illegal immigrants in this country. "El Muerto" means "the dead" in Spanish.
The organization operated in 19 cities in 11 states, federal officials said, making high-quality counterfeit green cards and Social Security cards. In North Carolina, the organization operated three cells - in Raleigh, Greensboro and Wilmington. Federal officials say a manager in each city oversaw a network of "runners," who distributed business cards (called "18s") advertising the counterfeit papers.
Federal officials and prosecutors said the fake document ring used violence to eliminate rivals. Group members are accused of kidnapping, beating and in one case last year, killing a competitor in Little Rock, Ark., to protect sales turf.
"This was not a mom-and-pop organization but rather organized crime on a grand scale," U.S. Immigration and Customs Enforcement Director John Morton said according to the Associated Press.
28 arrested
Twenty-eight members of the organization were arrested Nov. 18 and charged with conspiracy to produce and transfer false identification and conspiracy to commit money laundering. On Wednesday, 22 of the 28 were also indicted by a federal grand jury on charges of racketeering conspiracy, which carries a maximum penalty of 20 years to life. Some had additional charges, including murder, assault, firearms possession and kidnapping.
According to the indictment, Cruz Millan oversaw all the U.S. cells in the organization, which wired more than $1 million to Mexico from January 2008 to November.
The organization sought to drive competitors away from its sales territories by posing as customers and attacking competitors when they arrived to make a sale. The attacks, according to federal authorities, included binding victims' hands, feet and mouth and beating them, resulting in at least one death.
The lengthy indictment detailed an organized network that processed and sold ID cards typically for $150 to $200 each. Cells maintained biweekly sales records that were sent to Cruz Millan, who also handled orders of printing supplies such as paper and ink, the indictment said.
The Raleigh cell operated out of an apartment at 4739 Whitehall Ave., not far from the intersection of Millbrook Road and Atlantic Avenue. The manager of the cell was identified as Dorian Sanchez-Acosta, also known as "Pancho."
The indictment detailed interactions between Cruz Millan and his Raleigh manager. At one point last year, the indictment said, Cruz Millan asked Sanchez-Acosta whether he had enough paper for the business cards used as advertisements. "'Pancho' advised that he had enough paper," the indictment said. "Cruz Millan instructed 'Pancho' to make the cards big and nice."
But apparently Cruz Millan became frustrated with the productivity of the Raleigh operation. In October, Cruz Millan told Pancho "that he needed to be working more or that he will have to move."
The indictment said organization members who violated rules were disciplined. Some were beaten, had their eyebrows shaved or were forced to wear weights, the indictment said.
Started in Virginia
Investigators uncovered the ring in Norfolk, Va., and traced it to three other Virginia locations, the AP reported. Besides Virginia and North Carolina, federal officials say, the ring operated in Arkansas, Connecticut, Kentucky, Indiana, Massachusetts, Rhode Island, Ohio, Missouri and Tennessee.
The investigation, dubbed "Operation Phalanx," was conducted by U.S. Immigration and Customs Enforcement. .
One suspect was arrested in Wilmington and another in Winston-Salem, said Barbara Gonzalez, a spokeswoman for the agency.
Authorities searched one unidentified location in Raleigh, where six illegal immigrants were arrested, she said. None of the counterfeiting suspects were arrested in Raleigh, but documents indicate that Cruz Millan is in federal custody.
Researcher Brooke Cain contributed to this report.
