Date: 08-23-2017

Case Style:

Case Number: 1:15-cr-00080-JMS-DML

Judge: Jane Magnus-Stinson

Court: United States District Court for the Southern District of Indiana (Marion County)

Plaintiff's Attorney: Michelle P. Brady

Defendant's Attorney: Charles Hayes and Jane Ruemmele

Description: Indianapolis, IN - “Family ties” ring leader sentenced in federal court

Sold hundreds of kilograms of heroin and cocaine in Indianapolis area

An Indianapolis man was sentenced to 360 months (30 years) imprisonment for his role in selling large quantities of narcotics in Indianapolis neighborhoods. Geraldo Colon, 48, was sentenced by U.S. District Judge Jane Magnus-Stinson after being convicted at a jury trial in April 2017, of drug distribution, money laundering and bankruptcy fraud charges.

“The goal of this office is to make the Southern District of Indiana the worst place in America to sell drugs,” said United States Attorney Josh J. Minkler. “That is accomplished by investigations like this in which drug dealers are detained without bond, convicted at trial and sent to federal prison for a very long time.”

In May 2014, law enforcement officials learned that large quantities of narcotics were being shipped to the Indianapolis area from Phoenix, Arizona. The drugs were being shipped to a location on Bomar Lane in Greenwood, Indiana. From there, the drugs were being moved to the Muebleria Luz Furniture Store on the Northwest side of Indianapolis, where Colon then distributed them to various Indianapolis-based drug traffickers.

Law enforcement soon learned that Colon was the ringleader of this drug trafficking organization, which brought hundreds of pounds of heroin, cocaine and methamphetamine to the Indianapolis area. Various search warrants were served during the investigation netting: 24 firearms, over $4.5 million in cash proceeds, along with 9.5 kilograms of heroin, over 21 kilograms of cocaine and 22 kilograms of methamphetamine.

Colon was one of 20 federal defendants charged as part of Operation Family Ties that targeted a well-armed and heavily funded drug trafficking organization. A large portion of the drugs were being distributed in the Northwest side of Indianapolis as well as the Butler-Tarkington Neighborhood. Two other primary distributors in the “Family Ties” investigation have been sentenced. Daniel Stewart was sentenced to life without parole in November 2016 and Wade Havvard was sentenced to 31 years in May 2016.

“The negative impact this organization had on the lives and families of Indianapolis is unmeasurable, yet devastating,” said IMPD Chief Bryan Roach. “I am thankful for the good work and passion all the detectives working in collaboration with our federal partners who continue to pursue these types of crimes and criminals to change lives and make Indianapolis a safer place.”

"The investigation of Colon not only shut down a major source of narcotics to the Indianapolis area, but disrupted the flow of drug proceeds through financial systems,” said Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge. “As shown in this investigation, criminals can expect that IRS special agents will expose illicit financial activity that is concealed within legitimate and fictitious businesses. I am proud of the efforts of this investigation as it demonstrates the tremendous work achieved when law enforcement agencies partner together to protect our communities‎.”

“Concealing income and assets in a bankruptcy proceeding is a crime,” stated Nancy J. Gargula, United States Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). “We are grateful to all of our law enforcement partners in this case, and in particular to U.S. Attorney Minkler for his commitment to pursuing those who commit bankruptcy fraud and abuse the bankruptcy process for their own personal gain.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill

This case was investigated by the Indianapolis Metropolitan Police Department, Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, Department of Homeland Security Investigations, and the U.S. Trustee’s Office.

Outcome: Defendant was sentenced to 360 months in prison. Colon must serve five years of supervised release following his lengthy sentence and pay a $5,000 fine.

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