6 tied to drug activity

Murder, drugs and money laundering are at the heart of a trafficking case that could prompt federal prosecutors to seek the death penalty against the accused ring leader.

A nine-count grand jury indictment ties six people - including one man for murder and the mother of the victim - to a trafficking enterprise dating back to January 2002.

The case marks the first indictment in North Dakota history that allows consideration of the death penalty for drug activity, U.S. Attorney Drew Wrigley said Friday at a news conference inside his Fargo office.

Earlier in the day, three of six defendants appeared before U.S. Magistrate Karen Klein. All of the defendants face between 10 years to life in prison if convicted on conspiracy of possessing meth, cocaine and marijuana with the intent of selling the drugs.

Michael Allan Petzold, 23, Norfolk, Neb., Soledad Ybarra, 21, Moorhead, and Francisca Avila Vargas, 44, St. Paul, entered not guilty pleas Friday.

The indictment, which links two trafficking conspiracies filed last year, accuses Petzold of heading a ring that distributed at least 33 pounds of meth - with a street value topping $600,000 - in the Red River Valley.

Wrigley declined to say how the conspiracy compares to several others filed in North Dakota's federal court during the past four years.

The latest conspiracy - a sophisticated operation of money laundering, wire fraud and bartering drugs for guns and vehicles - likely will lead to more arrests and has reduced the quantity while increasing the price of meth in the region, said Wrigley, who credited several agencies for dedicating investigators and prosecutors to work on trafficking cases.

The previously filed indictment against Petzold said the trafficking ring sold drugs from homes and hotels in Fargo, Moorhead, Wahpeton, N.D., Sanborn, N.D., and the communities of Hawley, Cormorant and Breckenridge in Minnesota.

Petzold is the only one of the six defendants facing charges in the June 2005 death of Lee Avila, 28, in East Grand Forks, Minn. Grand jurors indicted Petzold, also known as Mike Jones, of murder to further the criminal enterprise and causing Avila's death by use of a firearm during a crime of violence.

Police in East Grand Forks said that as many as three people entered Avila's mobile home early June 30 before he was shot. Two young children inside the home at the time were uninjured.

Detective Rod Hajicek, a 17-year veteran of the city's Police Department, said the investigation into Avila's death continues.

Wrigley said he will review evidence in the case to determine whether he'll recommend Petzold face the death penalty. The process will slow down the progression of the case through the court by up to six months.

The decision to certify Petzold's case for the death penalty will be made by U.S. Attorney General Alberto Gonzalez.

Both Wrigley and Hajicek refused to answer questions related to Avila's death, including how many shots were fired, the type of gun used and whether suspects other than Petzold will face charges for the death.

Prosecutors also would not give more specifics about whether the suspects have a strong tie to gangs or how they transported drugs from California, Washington and Mexico.

Family members of Avila talked with police and voiced concerns last fall that his murder had been unsolved. Authorities said Avila has previous criminal convictions, including one for drugs, and labeled his death as drug-related.

Vargas, Avila's mother, faces a conspiracy charge in the same indictment as her son's accused killer. Vargas, St. Paul, goes by the nicknames "Poncha" and "Mama," but wasn't implicated in her son's death. She also faces charges from an earlier indictment.

The latest indictment replaces charges filed last fall against Petzold and Ybarra.

In addition to conspiracy to sell drugs, Ybarra and Petzold face charges of money laundering and conspiracy to unlawfully use telephones to sell drugs, launder money and aiding in Avila's murder.

Other defendants in the case are:

E Jonathan Olbay Meyer, 21, of 1541 10th St. S. in Fargo. In addition to conspiracy to sell drugs, he faces charges for possessing meth and marijuana with the intent to sell and possessing a firearm to further drug trafficking.

E Lacey Kathryn Johnson, 18, of 1541 10th St. S. in Fargo. In addition to conspiracy to sell drugs, she faces charges for possessing meth and marijuana with the intent to sell.

E Anthony Hector Valdez, 22, of Turlock, Calif. He faces the single count of conspiracy to sell meth, cocaine and marijuana.

A seventh defendant tied to the conspiracy, 22-year-old Troy Gene Lorsung of Moorhead, pleaded guilty in federal court last week to selling meth.

Because of previous drug convictions, Lorsung faces a mandatory life sentence unless he provides authorities with information that helps convict others involved in selling drugs.

Indictments like the one unsealed Friday won't stop drug trafficking in the region, because other people find ways to replace ones taken down by police.

But Wrigley said he remains optimistic that the war on meth can be won.

"At some point, you're going to run out of folks who are going to be participating at this level of activity," he said. "I believe you can run out of the folks who are predisposed this way and the folks that engage in this large scale trafficking. I'm na?ve enough to believe that."

"The problem is one of trafficking," Wrigley said. "We have to do everything we can to take out people who traffic."

Readers can reach Forum reporter Steven P. Wagner at (701) 241-5542