Grand jury returns 13-count superseding indictment following Homeland Security Task Force investigation into Sinaloa Cartel‐linked weapons scheme

AMARILLO, Texas - United States Attorney for the Northern District of Texas Ryan Raybould announced that a federal grand jury returned a superseding indictment Sept. 24 charging Loyd Walter Hall, a/k/a "Jamie Hall" and "James William," and multiple co-defendants with conspiring to provide firearms to the Sinaloa Cartel, trafficking controlled substances and engaging in a series of illegal straw-purchase and firearms-trafficking schemes.

Hall and co-defendants Jesus Quezada Meza, Omar Velasquez and Catlynn Ann Townsend were indicted June 25. The superseding indictment adds a fifth defendant, Johnnie Wayne Corbett, 42, of Amarillo, who was arrested by Federal agents on Oct. 17.

"The defendants supplied powerful rifles and ammunition to the Sinaloa Cartel-one of the most violent criminal organizations in the world," said U.S. Attorney Ryan Raybould. "By pursuing material support of terrorism charges, we are making clear that arming cartels is a direct threat to U.S. national security. Under General Blanche's leadership, the Trump Administration has deployed an all of government strategy to destroy these terrorist networks. Our office will use every federal tool available to dismantle the cartels and aggressively prosecute anyone who enables their violence."

"Those who arm violent cartels are helping fuel a cycle of bloodshed, drug trafficking, and destruction that threatens communities on both sides of the border. ATF Dallas will not allow firearms traffickers to exploit our laws to strengthen the arsenal of criminal organizations like the Sinaloa Cartel, said ATF Dallas Field Division Special Agent in Charge Brian Garner. "Through the Homeland Security Task Force, we are relentlessly targeting these networks, cutting off their access to weapons, and pursuing those responsible until they are held accountable."

Overview of the Charges

The charges in the superseding indictment include:

Conspiracy to Provide Material Support to a Foreign Terrorist Organization: The indictment alleges that Hall coordinated to supply firearms, ammunition, and related equipment to the Sinaloa Cartel-an organization designated by the U.S. Secretary of State as a foreign terrorist organization. This conduct included facilitating access to weapons capable of supporting cartel operations, knowing the organization engages in violent activity, including attacks against law enforcement, rival groups, and civilians.

Conspiracy to Distribute Controlled Substances for Importation into the United States: According to the charges, defendants participated in a drug-trafficking conspiracy involving fentanyl, heroin and cocaine intended for illegal importation into the United States. The indictment describes a distribution network that coordinated with cartel-linked actors to manufacture and transport significant quantities of controlled substances across international borders, furthering the flow of dangerous drugs into American communities.

Using and Possessing a Firearm in Furtherance of Drug Trafficking Crimes: Hall allegedly possessed and transported firearms, including semiautomatic assault weapons, to facilitate narcotics trafficking activities. These weapons were allegedly used to protect drug shipments, enforce cartel directives, and enable violent confrontations.

Conspiracy to Traffic Firearms: The indictment details coordinated schemes to ship, transport and transfer firearms across state and international borders, knowing the weapons would be used in felony activity. According to the charges, the defendants' actions helped sustain a supply chain that moved U.S.-purchased firearms into the hands of criminal organizations, including cartel-linked actors operating in Mexico.

Conspiracy to Straw Purchase Firearms: The indictment alleges that defendants coordinated with one another to recruit and use straw purchasers to obtain weapons that the true recipients could not legally acquire. This included selecting targeted firearms dealers, choosing specific high-powered weapons and directing straw buyers to falsely claim they were the actual purchasers, enabling the covert movement of firearms to criminal associates.

Making False Statements to Firearms Dealers: According to the indictment, defendants knowingly submitted false ATF Form 4473s and other fraudulent statements to federally licensed firearms dealers, misrepresenting the identity of the actual firearm buyers and concealing the intended transfer of the weapons. These false statements were allegedly designed to evade federal safeguards and facilitate the acquisition of firearms later intended for movement across state lines and, in some cases, toward the U.S.-Mexico border.

Status of Defendants

• Defendants Hall, Quezada Meza, and Velasquez remain in federal custody.
• Townsend has been issued a summons.
• Corbett is in federal custody. He had his initial appearance before a U.S. magistrate judge today.

If convicted, Hall faces up to a maximum penalty of life in federal prison. Meza and Velasquez each face up to 15 years in federal prison. Townsend and Corbett each face up to five years in federal prison.

The Bureau of Alcohol, Tobacco, Firearms & Explosives Dallas Field Division conducted the investigation with significant assistance from Homeland Security Investigations Dallas, local law enforcement partners, and members of the High-Intensity Drug Trafficking Area (HIDTA) task forces. Assistant U.S. Attorneys Colleen Bloss and Marbel Munoz from the Narcotics/HSTF/Asset Forfeiture section are prosecuting the case.

This case is part of the Homeland Security Task Force initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting, the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.

HSTF Dallas comprises agents and officers from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Firearms, Tobacco, and Explosives, Department of Homeland Security Investigations, United States Marshals Service, Internal Revenue Service, United States Postal Inspection Service, and United States Secret Service in partnership with the Texas Department of Public Safety, City of Dallas Police Department, the Dallas County Sheriff's Office and other local law enforcement entities.

An indictment is merely an allegation of criminal conduct and defendants are presumed innocent until proven guilty in a court of law.