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Government's Opening Statements

Doug Gardner opening

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0% found this document useful (0 votes)

217 views249 pages

Government's Opening Statements

Doug Gardner opening

Uploaded by

Joe Tone

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 1 of 249

UNITED STATES DISTRICT COURT

WESTERN DISTRICT OF TEXAS
AUSTIN DIVISION

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UNITED STATES OF AMERICA

) Docket No. A 12-CR-210 SS

)
vs.
) Austin, Texas
)
JOSE TREVINO-MORALES (3)
)
FRANCISCO ANTONIO
)
COLORADO-CESSA (6)
)
FERNANDO SOLIS-GARCIA (7)
)
EUSEVIO MALDONADO-HUITRON(11) )
JESUS MALDONADO-HUITRON (18) ) April 16, 2013

TRANSCRIPT OF TRIAL ON THE MERITS

BEFORE THE HONORABLE SAM SPARKS
Volume 2 of 15

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APPEARANCES:

For the United States:

Ms. Michelle E. Fernald

Mr. Douglas W. Gardner
Assistant U.S. Attorneys
816 Congress Avenue, Suite 1000
Austin, Texas 78701

For Defendant TrevinoMorales:

Mr. David M. Finn

Milner & Finn
2828 North Harwood Street
Suite 1950, LB9
Dallas, Texas 75201

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Ms. Christie Williams

Mills & Williams
1112 South Rock Street
Georgetown, Texas 78626

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For Defendant ColoradoCessa:

Mr. Mike DeGeurin

Mr. M. Andres Sanchez-Ross
Foreman, DeGeurin & DeGeurin
300 Main Street
Houston, Texas 77002
Mr. John Parras
Republic Bank Building
1018 Preston, Floor 2
Houston, Texas 77002

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 2 of 249

(Appearances Continued:)

For Defendant Solis-Garcia: Mr. Guy L. Womack

Guy L. Womack & Associates
402 Main Street, Suite 6 North
Houston, Texas 77002

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For Defendant Eusevio

Maldonado-Huitron:

Mr. Richard D. Esper

Esper Law Office
801 North El Paso Street, 2nd Floor
El Paso, Texas 79902

For Defendant Jesus

Maldonado-Huitron:

Mr. Thomas Brent Mayr

Law Office of Brent Mayr
4101 Washington Avenue, 2nd Floor
Houston, Texas 77007

Interpreters:

Mr. Peter Heide

Ms. Cristina Helmerichs
Mr. Steve Mines

Court Reporter:

Ms. Lily Iva Reznik, CRR, RMR

501 West 5th Street, Suite 4153
Austin, Texas 78701
(512)391-8792

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Proceedings reported by computerized stenography, transcript

produced by computer.
LILY I. REZNIK, OFFICIAL COURT REPORTER
U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 3 of 249

I N D E X

Page

2
3

Government's Opening Statements

Defendant Trevino-Morales' Opening Statements

Defendant Colorado-Cessa's Opening Statements

Defendant Solis-Garcia's Opening Statements

Defendant Eusevio Huitron's Opening Statements

8
9

Witnesses:

Direct

Jose M. Garza

Mario A. Cuellar

103

Cross

Redirect

Recross

159

168

173

174

175

12
13

Tammy Canida

176

189

Russell Stooks

196

211,212

15
16

217,221
Jose L. Vasquez, Jr.

225

193

222

241

17
18

Proceedings Adjourned

249

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25

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 4 of 249

1
2
3

E X H I B I T S
Government's

Offered

Admitted

#226

186

187

#226A through 226C

179

#226D

194

195

#226E

188

#241

201

#304

#320

#335A through 335B

107

12
13

Defendant's

(None.)

[Link]

of a unsealed motion.

[Link]

attorneys.

[Link]

the members of our press, for indicating or alleging that they

[Link]

did anything incorrect.

[Link]

recent announcement, Joe Garza is the government's first witness.

[Link]

That was disclosed to the defendants last night.

Your motion deadline passed

The

I will

But

They're waived with the exception of

I've entered orders on all of the other

Mr. Gardner has a statement he wishes to make for the

record.
MR. GARDNER:

Your Honor, yesterday, I made a statement

I realize now that that was part

So I apologize to each one of the defense

And I'd like to apologize to the Court, as well as

THE COURT:

[Link]

MR. GARDNER:

[Link]

experience.

[Link]

factual basis?

[Link]

the last 34 years, Judge.

And we'd like to exclude from

[Link]

that rule our two case agents.

This is a two-year investigation

[Link]

involving the FBI and IRS --

[Link]

MR. GARDNER:

[Link]

THE COURT:

That would be his opinion today.

Based on what?
Based on his 34 years of law enforcement

and -THE COURT:

No.

I'm not concerned about his

I assume he's experienced.

MR. GARDNER:

THE COURT:

His study of the cartel organizations for

And that the source of all the

I can't make a determination -- I

MR. GARDNER:

THE COURT:

But based on what

One last thing, Judge.

The government

I always inquire if anybody wishes to

invoke the rule.

Yes, sir.

In my opening remarks to the jury.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 7 of 249

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

that at least one of the attorneys filed an objection to the

[Link]

government's slideshow that you're about to see in opening

[Link]

statement.

[Link]

kids, women.

[Link]

this, your Honor, but it's --

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

came in to look at the discovery.

[Link]

have had in this presentation?

[Link]

May I approach, Judge?

Yes.
Your Honor, on behalf of my client, we have

no objection to one case agent, but two case agents is -THE COURT:

The objection is overruled.

You may have

your record.
MR. FINN:

Okay.

Judge, the last matter is I think

It's extremely prejudicial.

It's got guns, little

I don't know if you've had a chance to look at

THE COURT:

When did you get a chance to look at it,

counsel?
Just now.
Just right now?
Yes, sir.
No before?
I'm sure they sent it to me at some point,

Judge, but -Disclosed on Friday, your Honor.

Yes.

MR. GARDNER:

I've got affidavits you never even

How long have defense counsel

It was delivered Friday afternoon, Judge.

THE COURT:

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

the jury.

[Link]

the objection.

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

And, Judge, I was driving down here to get

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

other than a motion this morning?

[Link]

MR. DEGEURIN:

[Link]

year, Mr. DeGeurin.

[Link]

until the last minute to get ready, obviously, because of the

[Link]

motions that I'm seeing.

[Link]

months.

If you look at this, you'll

It's unbelievably prejudicial

Well, I will have to look at it, I guess.

Can I hand it to you?
Oh, good, you've got a printout?
Yes, sir.
Just hand it to Mrs. Sims, please.

The objection is sustained.

morning.

This will not be shown to

Mark that as Government's Exhibit 1 on the basis of

Your Honor, may I be heard?

Counsel, I'm not going to hear you every

I've got a jury out there that's ready.

crunched.

We all feel the pressure.

Well, all right.

Judge --

What do you have now,

Yes, because, you know, we are being

We're giving -THE COURT:

This case has been pending for almost a

Y'all are crunched because you didn't wait

You've had the discovery months and

You didn't look at the raw discovery, which is your

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

don't want the concept to be -- to escape us that an opinion that

[Link]

we've now been told about that the -- what was it?

I understand.
Okay.

You got it as soon as he received it from

the Southern District, if that's what you're talking about.

That and --

That motion has been presented.

motion's been overruled.

MR. DEGEURIN:

That

You have your record on it.

All right.

Next point is, your Honor, I

The Zetas

Is that -- that the Zetas do

Today, at this moment, was the

That's a violation of the notice rule, in

But, in addition to that, now we have that that's going

We have a confrontational clause, also.

You cannot have someone

THE COURT:

Mr. DeGeurin, I don't know what he's going

If he doesn't have sufficient firsthand

But I don't know.

We're

Make your objection at the appropriate time.

I have no idea what he's going to

And then, the Court -- and then, the government will

You can object, at that point in time, if

MR. DEGEURIN:

THE COURT:

But I'll be glad to

So long as it doesn't come in and harm

I don't think Mr. Gardner is going to

prejudice his case in an opening statement in this courtroom.

MR. DEGEURIN:

All right.

So please -- what I'm trying

We have a right to confront those people that he's read

THE COURT:

That's an objection that you -- write it

Members of the jury, I've told you now on

LILY I. REZNIK, OFFICIAL COURT REPORTER

[Link]

JURORS:

[Link]

THE COURT:

[Link]

affirm that in the case of United States of America vs. Jose

[Link]

Trevino-Morales, Francisco Antonio Colorado-Cessa, Fernando

[Link]

Solis-Garcia, Eusevio Maldonado-Huitron and Jesus

[Link]

Maldonado-Huitron, that you will a true verdict render according

I need for you to answer orally.

I will be looking

So let's go into it.

Since you have left this courtroom yesterday, learned

JURORS:

No.

THE COURT:

Have you talked to anyone about the

lawsuit?
No.
And have you learned anything at all about

No.
All right.

Show negative responses to all

questions by all jurors under oath.

If you'll stand and be sworn as the jury in this case,
please.
THE CLERK:

Do you, and each of you, solemnly swear or

It is the assistant United States

the old days, we give the physical property of the first juror,

[Link]

and he or she would look and pass it down, and then, you forget

the case.

[Link]

defendant.

[Link]

evidence.

They have a

If I sustain the objection, you don't hear the

Don't try to guess what the evidence was.

It's not

If I overrule the objection, don't think it's any more

Your job is to determine the innocence or guilt of the

My job is to make sure that you do it on admissible
But don't look up here for any help.

Nothing I say,

That is exclusively yours.

Now, I have this new computer sitting right here and I

I'm the oldest and the most scarred-up in
However, this

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 15 of 249

[Link]

is the first time that I have seen that computer.

I don't even

[Link]

lawyers will show you certain facts from which you can draw a

[Link]

conclusion on them.

[Link]

and if somebody says, it's not going to rain today, it's going to

[Link]

jurors who deliberate before you decide what you believe the

[Link]

The jury will retain 90 percent of all

If you'll remember back -- well, like when you were in

I want you sit

And so, I'm going to allow you to

[Link]

MR. FINN:

sequestration.

THE COURT:

Yes, your Honor.

Yes.
All right.

The rule is invoked.

That

They have the right to speak to the

They have the right not to speak to the lawyers.

So if there are any witnesses in the courtroom, I'll

ask them at this point to leave.
MR. DEGEURIN:

Your Honor, it's my understanding that

They will be

I do have some in the courtroom.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 18 of 249

[Link]

THE COURT:

They're excused before opening statements.

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

responsible for your own witnesses.

[Link]

swear them and we'll have to put them --

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

I understand that the Court is waiving the

[Link]

sequestration rule with regard to the agents, but when there are

[Link]

multiple agents and both are testifying, the limited waiver will

[Link]

be while one's testifying, the other should not be hearing his

[Link]

testimony.

[Link]

Could I be heard on that, Judge?

You can be heard on it, Mr. DeGeurin, but

the ruling will not change.

MR. DEGEURIN:

Okay.

Yes.

We have some in the

courtroom.
THE COURT:

If the government has any witnesses, I'm

going to ask them to be excused, also.

MR. DEGEURIN:
THE COURT:

Your Honor, could we identify them?

You don't need to identify them.

MR. DEGEURIN:

You're

If you do, I'll have to

Wait a minute.

I think he has to swear

the -No.
Oh, okay.

We'll swear them individually as you call

them.
Your Honor, may I ask one other thing?

And I would ask that you do that.

THE COURT:

All right.

When one is called, if you'll

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 19 of 249

[Link]

make that motion, I'll rule on it, sir.

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

Okay.

I so move.

I don't know if they're going to be called

on or not.
Oh, okay.

I was presented this a long time ago, Mr.

So I don't know who's going to be

certainly will consider.

As you could see, members of the jury, you're going to

You're fortunate.

You've got very good lawyers.

They

So there's no need to try to find any other

THE COURT:

[Link]

MR. GARDNER:

GOVERNMENT'S OPENING STATEMENTS

May it please the Court.

Yes, sir.
Counsel.

This case is really pretty simple.

Again,

One person I

Los Zetas are a

loan.

[Link]

dry-cleaning business --

It's that simple.

The two

They're
In 30

Drug money coming forth to

That's money laundering.

Here's my example.

If you were to have a dry-cleaning

That's a legitimate business.

MR. DEGEURIN:

You want to start a

Excuse me, Mr. Gardner.

Your Honor, I

have to object to argument, as opposed to opening.

THE COURT:

It is a form of argument, but I will allow

But let me tell you,

And it's my definition

Thank you, your Honor.

Could I get the first

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 22 of 249

[Link]

So the Judge said this is a conspiracy case.

This is a

[Link]

works for Wal-Mart.

She doesn't like this example.

[Link]

a conspiracy, okay?

You have a number of people and they're

Conspiracy is an agreement

So really, in this case, we have two

We have conspiracy and we have the money laundering.

So you can money launder and I'll
But if you're not money

Here's my best example on a conspiracy.

How do they make money?

My sister
Wal-Mart is

They sell goods.

You have the chief

You have the store managers,

Wal-Mart is a conspiracy.

You can say the federal

Anything that you do, any business that you have is a

The reason you're here

Next slide, please.

So we've

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 23 of 249

[Link]

alleged money laundering in two ways.

So this is the
So the

Now, that's a legal

Any one of

That's the unlawful activity.

So if they knew the unlawful activity and the money

All right.

Simply

And then, there's two ways at the end.

Now,

There are two reporting requirements and you're going

to see in the next slide.

First one is what they called a CTR, a

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 24 of 249

[Link]

Cash Transaction Report.

standard.

When you attempt to

You're structuring your

So when you're structuring, you'll see a lot of $9,900,

$9,900 -- or, I'm sorry, yes, $9,000 to avoid this transaction
Next slide, please.

This is the other way.

Two

So this one involves pretty much the same thing except

I'm sorry.

Thank you.

The

The same requirement that the

There's no monetary

So, again, a wire coming across the border, cash coming

And, again, there is a reporting requirement

This one's called a CMIR.

It's the same thing as a

Again, all structuring.

Now, what is the government going to present to you

Next slide, please.

This is reasonable doubt.

This is your

This is the instruction I

common sense.

[Link]

time.

And I'd like to highlight

Reasonable doubt is based on reason and common

Reason and common sense.

The twelve of you who deliberate are allowed to use

You're allowed to use your

The juries across the country do this all the

So this is your standard in which you view everything

Reasonable doubt.

Next slide, please.

This is Miguel Angel Trevino, "40."

He is the leader

He initially started his

When Villarreal purchased a number of

Ramiro Villarreal owned that horse.

That

That race was fixed and you'll hear

And from that point, "40" and his brother, next slide,

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 26 of 249

[Link]

into the horse-racing business.

Tempting Dash wins a race in

[Link]

Dallas.

You're going to
You're

They're

Next slide, please.

Zulema Trevino, Jose Trevino's wife.

Again, after the

Twenty years prior, they were masonries making a

In 30 months, they're able to expand from a ranch

Next slide, please.

You're going to hear about Carlos Nayen, also known as

He's the money man.

In Spanish, they

After Ramiro Villarreal

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 27 of 249

[Link]

over and he starts finding the horses.

Petro Servicios.

[Link]

built on a lie.

Next slide, please.

[Link]

This is Victor Manuel Lopez.

You're going to see

[Link]

testimony about him crossing the border with bulk cash that he's

[Link]

delivering for payments of quarter horses.

[Link]

money across the border in less than $10,000 increments, again,

He's the man

He's the one

Defendant Francisco Antonio

You're going to hear

You're going to hear testimony that company is

All of the money he received for that company
He's funneling money based on his

Next slide, please.

Defendant Fernando Garcia.

He was "Carlitos," Carlos

When I talk about structured payments,

He's bringing the

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 28 of 249

bidding on $2.2 million worth of horses at Ruidoso, New Mexico

Sergio Rincon, also known as "Saltillo," also known as

He's another money man responsible for security of

Adan Farias.

You're

Next slide, please.

He's a horse trainer.

You're going to

He'll be testifying here in court

Next slide, please.

Gerardo Quintero pays Jose Trevino $700,000 for two horses, based

[Link]

on the structured funds that went into his account from Mexico.

[Link]

defendants as it relates to them.

Luis Aguirre, he's a veterinarian from Mexico.

Also

A number of horses

You'll hear the testimony about his

Next slide, please.

Gerardo Quintero.

You're going to hear testimony that

Next slide, please.

Jesus Maldonado-Huitron.

He and his brother controlled

He is

He is listed along with his brother as the

You're going to hear

I define

This slide is to help you get familiar with some of

Some point over here on my easel,

So these are some of the names

the results they took when they made the arrests and executed the

[Link]

search warrants in this case.

Jose Trevino, responsible for three companies, Tremor

He's used these entities to conceal the nature and the

Carlos Nayen uses Carmina, LLC.

And Alejandro Barradas

Fernando Garcia was
Garcia Bloodstock,

And

So you're going to hear

And I'll have that chart up for you so you can

Next slide, please.

So, ladies and gentlemen, you're going to hear, again,

Members of the organization as I stated

You're also going to hear from a significant number of

And finally, what you're going to hear

You're going to hear about

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 31 of 249

[Link]

So this is going to be about a three-week trial, maybe

[Link]

a little longer.

[Link]

understand the evidence, and then, we'll make sure at the end,

[Link]

we'll wrap it all up and try to fill in any of the gaps that we

So, again, when I come back here at the end of this

I'm going to ask you to

Thank you.

THE COURT:

Mr. Finn.

DEFENDANT TREVINO-MORALES' OPENING STATEMENTS

May it please the Court, the government.

How badly do they want them?

My name is David

In the

You're going to

Two brothers that

Well, the U.S. government

The Mexican government

There's 8 million reasons why my client

His brothers are not

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 32 of 249

His brothers are not on trial.

[Link]

here.

My client is on trial.

[Link]

You're going to hear evidence that my client was born in the

[Link]

middle of 13 children in Mexico in a little town outside of Nuevo

[Link]

Laredo.

[Link]

weren't wealthy, but they could put food on the table for all

[Link]

those kids.

[Link]

background checks.

His dad was in the farming and ranching business.

Remember Jose's right in the middle.

They

Jose was tight

His dad knew horses, his dad knew cattle, and

His dad basically managed two large farms

down there.
Jose works hard.

He is not a slacker.

You're going to hear, over and over,

He works seven days a week, all the

You're going to hear he's not some drug-dealing,

He lived in a little

Drive

You're not going to hear about

Jose comes to the United States many years ago,

And as y'all probably

They do

If you're assaulting your wife, if you're

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 33 of 249

[Link]

committing mayhem, you're not going to get naturalized.

Jose was

[Link]

naturalized.

[Link]

bricklayer, and he busted his tail and made about 35 to $40,000

[Link]

for a number of years.

But Jose's passion other than his family,

[Link]

his passion is horses.

And you are going to hear from all sorts

[Link]

of horse people that Jose knew his stuff.

[Link]

veterinary doctors and Texas A & M, at U.T. Dallas, at TCU, at

[Link]

SMU, all over the place, everything from what you feed a horse,

[Link]

how do you take care of a horse, how do you breed a horse, all of

[Link]

that stuff.

[Link]

do?

[Link]

a lot of horses.

[Link]

horses were bought for, like, 400 bucks, 500 bucks, 800 bucks.

[Link]

And a whole bunch of these horses, especially the ones up in

He was a mason, which is a fancy way of saying a

This isn't some front.

He was consulting with

This is a legitimate, real

That's what you're going to hear.

The big break that Jose got, he and his wife saved up

He invested it.

Good horse.

He saved it.

They buy another horse.

Jose got a good deal on it.

Quite a

Did Jose go out and just

No.

What did he

He saved it.
And you're going to hear about

Let me tell you something, a bunch of these

is this just some front, some fake deal to, quote, launder money?

[Link]

They're going to say, oh, no, Jose cared for his horses, he loved

[Link]

Dash, this stud, if you will, got what's call a tickborne

[Link]

disease.

[Link]

even remember what it is.

[Link]

the horse because basically, they had to quarantine it.

[Link]

couldn't race it anymore because it had this disease.

[Link]

anybody's got any horse sense, you'll probably know what I'm

[Link]

talking about.

[Link]

and working.

[Link]

you know, he's a U.S. citizen, right?

[Link]

got a passport.

[Link]

got a lot of family down there.

[Link]

sisters, or 12.

[Link]

back into los Estados Unidos, what would happen?

He was trying to breed them.

He was taking care of

He did not own them.

And

You're going to hear from people that are in horse, you

his horses, he knew how to train, how to breed horses.

And you're going to hear that, at some point, Tempting

It's got a fancy name that you'll hear about.

I can't

But it really diminished the value of

You

Nevertheless, Jose kept working and working and working

During this time, occasionally, Jose would go -Just like you and me, he's

He could go to Mexico to visit his family.

He's

Good grief, 13 brothers and

Every single time he crossed the border coming

Oh, we know who

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 35 of 249

Come with me.

[Link]

your brothers are.

going to get?

[Link]

the brother, who's busting his tail raising his family, paying

[Link]

his taxes, no criminal history, ever.

[Link]

and gangs.

[Link]

see in a drug-dealing, money laundering, violent crime cartel

[Link]

case?

[Link]

evidence maybe?

[Link]

going to hear about that because it helps Jose.

[Link]

him.

Come on over here

They couldn't get the

Let's get the low-hanging fruit.

So who are we
Let's get Jose,

And you hear about money laundering and drug dealing

What sort of evidence would you expect to hear and

Bunch of cash maybe?

Drugs maybe?

Guns maybe?

Wiretap

Oh, wait, there is wiretap evidence, and you're

Doesn't hurt

And in a wiretap, folks, here's how that works.

The

They swear out an affidavit in front of

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 36 of 249

[Link]

They can tap your phone so that if I call you and there's a

[Link]

wiretap, you don't know it's being recorded and I don't know it's

[Link]

being recorded.

[Link]

recordings.

[Link]

horses, real horses, the price of feed, the price of a stud fee,

[Link]

talking horses.

Are you going to hear anything

(Moves head side to side.)

Title III wiretaps help us.

No guns, no
Consensual

You're going to hear about Jose talking about

And I'm going to use -- ask you, as Mr. Gardner said,

Ask yourself, what
You

They're going to ask you to guess

Every single time the Feds came to Jose, hey, Jose,

want to have a little chat?

Whatever you say, come on in.

Hey,

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 37 of 249

[Link]

we searched your car, your pickup truck, your house, your ranch,

[Link]

your farm.

Come on in, guys.

Come on in.

Don't even need to get a search

Boy, that sure sounds like a guilty

Somebody who's not talking crime on the

Somebody that says come on

Somebody that gets harassed at the border every time he

Somebody who's a

Somebody with no criminal history.

So you're asking yourself, then, why the heck are we

Two words:

The brothers.

I don't know.

No.

And these brothers may be bad

They may be just despicable gangsters,

I don't know.

I've never met them.

That may

But I'm a

You don't get an $8

And that is why we're here.

What other kind of evidence would you expect to see?
Right?

Maybe some kind of DNA?

Maybe

You know, they

cleaners.

[Link]

didn't go back.

[Link]

Zetas.

[Link]

then, just leave it.

[Link]

cleaning.

Bologna.
Mr. Gardner also referenced, I think, a dry clean.
Let me tell you something.

I don't know

I don't just leave them at the dry

The money didn't go back.

It's clean money.

That would be like me going to Mexico to the

It's like a one-way dry cleaners, you drop it off and

Don't ever come back.

It's not very good

It's a one-way street, allegedly.

And I'm going to ask y'all to keep your eye on the ball

That ain't why

Don't be prejudiced by the shock and, ah, Zeta,

And unlike the Judge's

And you are going to

I just don't know.

They didn't prove

rephrase.

[Link]

and I'm driving down here, and I don't know who the heck I'm

[Link]

going to be cross-examining.

[Link]

this -- you're going to love this.

[Link]

Why?

It's

They want something.

They want a reduced sentence.

They want their case

They want to

They're getting paid and they're not telling

They're not

They're liars.

And the

Yesterday.

So if you think that we knew or that I knew -- I can't

MR. GARDNER:

MR. FINN:

Excuse me, your Honor, I'm going to

We disclosed all those names to all

Okay.

That's a misstatement of facts.

Excuse me, your Honor, let me

Friday before a Monday trial.

Graham kind of took Jose under his wing and kind of mentored him

[Link]

and helped him build his business.

[Link]

good at his business that he became a threat to Dr. Graham, and

[Link]

Dr. Graham more or less ran him out of town.

[Link]

you'll hear about this, why he went to Oklahoma to get away from

[Link]

Dr. Graham because Dr. Graham was getting P-O-ed at him, okay?

[Link]

business.

[Link]

evidently, you can.

[Link]

team sport or something like that.

[Link]

one of the government's witnesses.

[Link]

Graham, hey, Mr. Graham, what do you know about Jose

[Link]

Trevino-Morales?

[Link]

say.

[Link]

structuring is?

But Jose got to be so dad-gum

That's why Jose,

Because, you know, you can make money in the horse

I didn't know that till I started this case, but
You know, it's, what do they call it, the

So, anyway, Dr. Graham has a grandson, Tyler Graham,

They're going to call Tyler

And he's going to say whatever he's going to

And I'm going to ask him, hey, buddy, you know what
What do you mean?

THE COURT:

I got your records that show

Remember Mr. Gardner just told

Their own witness is guilty of

Okay.

But you don't

Tyler Graham?

That's enough.

Tyler?

Him.

There are no

objections, but let's stay with opening statement.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 41 of 249

[Link]

MR. FINN:

[Link]

MR. GARDNER:

[Link]

That is uncalled for.

[Link]

in limine.

[Link]

limine.

[Link]

All people in this courtroom, including the defendants, have

[Link]

equal rights, no matter what their race or background is.

[Link]

strike those remarks.

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

you, what proof beyond a reasonable doubt is.

[Link]

that have previous jury service -- and I know some of you did --

[Link]

if it was a state case, there's no definition for what a

[Link]

reasonable doubt is.

[Link]

you think it is.

[Link]

the state proved the case, you convict, if not, you vote not

[Link]

guilty.

[Link]

definition.

[Link]

the evidence, after a careful and impartial consideration of the

[Link]

evidence that will cause a reasonable person to hesitate to act

THE COURT:

He's a white guy.

Your Honor, I'm going to object to that.
That is a violation of the Court's motion

You've violated the Court's motion in

I sustain the objection.

Make your opening statement.

And I

Now, proceed.
Thank you, your Honor.
You're welcome.
When Tyler Graham comes to court, you can

size him up.

The Judge will give you, and the government just told
If those of you

The Judge will basically say, it's whatever

If you think the government proved the case,

Fortunately, in the federal system, there is a

Proof beyond a reasonable doubt is a doubt based on all

LILY I. REZNIK, OFFICIAL COURT REPORTER

[Link]

definition.

[Link]

MR. FINN:

[Link]

important of your own affairs?

[Link]

interesting trial.

[Link]

MR. DEGEURIN:

[Link]

I didn't realize we had this up here.

Yeah.

Sounds like it's

Probably was.

Here's what it

Identify something that's dad-gum, top-of-the-list

And when this case is over, ask yourself, would you put

important -Your Honor, I'm

The Court will give them a reasonable

He's exceeding the bounds of that legal

MR. FINN:
board, Judge.

Excuse me, Mr. Finn.

It's just the definition they put on the

That is the definition.

THE COURT:

I will give the jury the definition of

reasonable doubt.
Okay.

Would you hesitate to act in the most

No way.

It's going to be an

Thank you.

THE COURT:

Mr. DeGeurin.

DEFENDANT COLORADO-CESSA'S OPENING STATEMENTS

Thank you, your Honor.
Is there buttons

LILY I. REZNIK, OFFICIAL COURT REPORTER

[Link]

fact that Mr. Colorado has five lawyers here is not a negative

[Link]

thing.

[Link]

know myself.

[Link]

told you and what I want to remind you of as we begin this trial

[Link]

is that we have many in the United States, we have many different

[Link]

not roadblocks but protections to ensure that no possibly

[Link]

innocent person is convicted and loses his liberty.

[Link]

several along the way.

Mike DeGeurin.

I represent Defendant Francisco

Remember I introduced you to Andres Sanchez.

He and I

Andres is my partner in Houston.

John

By the way, I was born in

I transplanted to Houston.

Mr. Andy Parker.

He is

The four of us are representing Mr. Colorado.

Mexico City

He's Mr. Colorado's Mexican lawyer.

I don't want you to -- and I'm sure you won't.

But the

If you were accused of a crime and you're innocent, you

You

He gave you the

A lot of history I had even forgotten or didn't even

I did know the importance of a jury.

And what he

And there's

I won't go through each one.

trial, the Judge will come and narrow it down again, and he'll

[Link]

tell you at the and, they're not charged with this, they're

Fernald.
Oh, Fernald.

It's French.

And that's very important.

Ms. Fernald,

And at the end of the

These specific things.

And before you would

So here's where the

After we've gone through the entire system -- and one

Not only do

Something to just either

And the Judge is going to run

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 45 of 249

[Link]

referee over that.

As he said, if there's a possibility that

[Link]

something should not come into evidence so that you have a clear

[Link]

head and a clear basis to make your decision, he'll rule on it,

[Link]

yes or no.

[Link]

make an objection, as you have seen me do, and the Judge

[Link]

overrules me, the Judge has already told you, don't hold that

[Link]

against me.

[Link]

number two, I'm going to ask you if you get upset with me, if you

[Link]

think I'm asking too many questions, if you think I'm out of

[Link]

statements, please.

[Link]

citizen.

[Link]

called upon to do at the end of the trial.

[Link]

And I'm going to take just a moment and ask you, if I

I have an obligation to make that objection.

But,

So in the end, the last protection that an accused has

The jury is not burdened with prosecution.

You

Your duty is just

Your duty is to be skeptical of a witness'

Say so, don't

You'll be --

THE COURT:

Mr. DeGeurin, I'll give them instructions

MR. DEGEURIN:

If you'll just make your opening

So in the end, your last protection to a

caused by the oil company.

He's been in

He is married.
He has four

He was raised -- his father was a very respected

They had, relatively speaking, a comfortable,

And he was raised around and felt a great love for

The reasons that you'll

And that love for horses

This picture, for example, that you see, you saw up

This is

They were called out on

That river,

Very, very growing

And so, back in the early 2000s and before, he was

ADT.

It's not a, quote, front

many horses.

[Link]

notice last night that just even in his office, you'll see

There's Mr. Colorado out on the -- these are some of

You're going to find out --

His office is -- you can actually look

He's gone a long way.

And I just happened to

Can we look at

This is an example and I just took a picture

In 2003, he obtained a contract of 58,000 -- 58,888,

Unlike the United States, all

Won't tell you the full name

You'll hear a lot about that.

Pemex being a public

hasn't forgotten.

[Link]

been fortunate, whether you want to say blessed.

The bidding process is open, public.

There's a committee

Now, I'm giving you this example because these are

He makes bids on many contracts.

2006, 49 million.

These

In 2004, $7,820,000 contract.

2007, 35 million.

2010, 15 million.

2008, 15.

2009,

2011, 81 million.

Now, this type of tremendous wealth, of course, it cost

Now, what does Mr. Colorado do with his money?

I won't say that.

He believes that he has

He's a hard,

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 49 of 249

You'll see in the photographs.

[Link]

hard, hard worker.

You've seen

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

And one of the things he's done is he started a little

It's free to all mothers that have autistic children.

MR. GARDNER:

this.

We have a picture of that, Andres?

When he learned this, he's known

He started a ranch and

Comes to

Mr. DeGeurin, your Honor, I'm going to

We're getting a little far afield

I sustain the objection.

Oh, no.

I have witnesses to testify to

I expect them to see -THE COURT:

We're not going to need to testify if you

keep going.
MR. DEGEURIN:

[Link]

some good character, again, far afield what he's going to present

[Link]

as evidence.

[Link]

talk about what was going to be said -- what I expect to be said,

[Link]

not my impression.

[Link]

schools he started.

[Link]

It's free.

[Link]

the issues in this case.

MR. DEGEURIN:

This year was the first anniversary of

And what you're going to see from this is you're

You're going to find out Mr. Colorado is

He is a

You're going to have testimony --

an engineering school for employees free.

MR. GARDNER:

Your Honor, again, this is getting into

We object.

MR. DEGEURIN:

There is going to be a character

witness, Judge.
THE COURT:

Well, then, let's tell the jury generally

what your contentions are and let them hear the evidence.
MR. DEGEURIN:

I thought I was supposed to

But I'll do it either way.

All right.

You will hear testimony about one of the

It's called -- it's an engineering school.

MR. GARDNER:
interrupting.

All right.

Mr. DeGeurin, again, I apologize for

Your Honor, again, same objection.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 51 of 249

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

lawyers are not witnesses and that what you tell them is not

[Link]

evidence.

[Link]

testify and what they're going to testify on so that when you

[Link]

call that person, they will expect to know what type of testimony

[Link]

he's going to give or she's going to give.

[Link]

third.

[Link]

giving -- giving me a little leeway.

[Link]

specifically.

So what you should do is to tell them who is going to

MR. DEGEURIN:

Well, that's the problem with going

A lot of people had more leeway, I suppose, and you're

But I'll try to do it more

Okay.

Albert Gomez will testify and he is a person in Mexico.

places.

[Link]

ADT and legitimacy of not only the health of that company and the

[Link]

legitimacy of its contracts and its completed business and the

[Link]

money expected in the future, payments for the work that ADT

[Link]

does.

It's for the

You're going to find out from Mr. Dennis Colon that I

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 53 of 249

[Link]

introduced yesterday to you.

13 or 14 years old.

[Link]

tracks and he acted like he knew a lot about horses, so and so,

[Link]

and knew Mr. Colorado because Mr. Colorado also raised horses in

The people that are subject to bad people wanting to

You know, once you get a public

You see them on trucks.

Anyway,

So you're going to find out from Dennis Colon that he's

And

You're also going to hear about personal interest

A person who's from

And you're

And he was a boy that hung out at the race

MR. DEGEURIN:

Eventually, after a period of time, Mr. Colorado

They will be good horses for children.

either selling, transferring, or using for some other situation.

So Carlos Nayen in one race in Saltillo, Mexico, I

MR. GARDNER:

And so, Mr. Nayen

These are horses that he helped manage

Excuse me, Mr. DeGeurin.

Your Honor,

This is a conspiracy to launder money.

MR. DEGEURIN:

That's what I think I'm doing, Judge.

Be gentle with me.

I'm just going to let you go on.
That's being gentle.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 55 of 249

THE COURT:

[Link]

Do whatever you want, but what you're

[Link]

telling us is not helping the trial proceed because the jury

[Link]

hadn't heard one word of evidence.

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

helpful that when you begin the trial, we're going to take one

[Link]

witness at a time, and they're going to say, I'm so and so, I'm

[Link]

an agent such and such.

[Link]

helpful to you that you see that there is something else going

[Link]

on.

[Link]

is his right, he has us defending him.

[Link]

exactly what it's going to be yet -- from people that are, as

[Link]

you've been told, paid informants or paid witnesses.

[Link]

that, I'm not saying Mr. Gardner pays them money to come to

[Link]

testify.

[Link]

you'll find.

Well, no.

We can't give evidence.

You're doing a good job.

Well, I hope that this is going to be

And so, I think it's -- I hope that it's

And there's a good person over there that's been accused, as

You also will hear some testimony -- I don't know

And by

It's a little more complicated and complex than that,

It is with the hope the witnesses will testify that

So what it amounts to, you'll see, is that they're

LILY I. REZNIK, OFFICIAL COURT REPORTER

argument about the necessity.

[Link]

not talking about a drug case, we're not talking about those

[Link]

sorts of things.

[Link]

said and the key is that when Mr. Colorado sends money to an

[Link]

auction, either by wire or by check, that he knows the money is

[Link]

dirty.

[Link]

he's sending to buy these horses came from an illegal source.

[Link]

the time to talk about ADT, this wonderful company?

[Link]

successful and so respected in Mexico.

[Link]

that Mr. Colorado is sending for these horses comes from ADT.

[Link]

for the attention, and I hope that you pay close attention during

[Link]

the trial.

You're going to hear testimony that Mr. Colorado wrote

Several checks over 3 or $100,000 for horses.

You're

accounts to auction houses to pay for horses.

And Mr. Gardner pointed out in his opening statement or
He says it's very simple.

We're talking about money laundering.

We're

And he

Another way Mr. Gardner said, he must know that the money

So now, do you see why it might be important to spend

It's so

When all of the funds

I don't want to wear out my welcome.

Thank you so much

Thank you.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 57 of 249

[Link]

THE COURT:

Mr. Womack.

[Link]

MR. WOMACK:

[Link]

Womack.

I represent Fernando Garcia.

I'm a Lieutenant Colonel

My young adversary here with the

One or both may slip up and use Marine Corps

If we do, we're not talking

Most of you will understand the terms.

But we will

I want to tell you about Fernando Garcia and the

Fernando

He was born and raised by his parents on a

He worked hard.

He learned
And he

Some of you are familiar with that.

When he was

Many of you

Quarter horse racing is 100-yard dash of racing.

The

It is

The horses are built differently.

They

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 58 of 249

[Link]

have short muscles.

They are sprinters, like 100-yard dash.

[Link]

course, thoroughbreds are skinny.

[Link]

they're distance runners.

[Link]

quarter horses, but they would never run the quarter horse on a

[Link]

quarter mile.

[Link]

racing and being around them all the way through high school,

They run longer distances,

They run faster for long distance than

Seeing these horses and the excitement of quarter-horse

That

He wanted to identify, buy, or be

When he graduated from high school in 2001, he went to

Fernando went to junior college

In 2007, still about a semester short of his degree, he

He still wanted his degree, but he left it

You'll have his school records.

[Link]

him and you'll see his records.

But he bought a horse, he trained it, had some success,

He developed a name because

That was to be his profession.

By the way, unlike the government, this Marine doesn't

use PowerPoint.

I would -- it's too sophisticated.

I use basic

So excuse me for not being high-tech,

Now, when he got into the horse-racing industry and

Mr. Gardner showed you a slide with four

You'll

He owned, he is Garcia Bloodstock.

That

That is his horse-racing company.

Bonanza Stables is a company that he worked for and it

So he has had a connection to them.

Desiree Princess, LLC and Poker Ranch, LLC,

They had paid

They had paid him to train

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 60 of 249

He doesn't own or control those companies.

[Link]

horses.

But he does,

If you have the money and you can

They have two or three

You're going to hear about some of that.

You're going to hear that people, these gentlemen and

About a month, a little over a month before

You look at these names.

A horse born from a

At least

But Fernando, you'll learn, studied these horses for

And one of the first things he does when he sees the name
Where did

Now, keep in mind, these are little

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 61 of 249

These are young horses.

These are ponies.

[Link]

properly.

[Link]

also see how muscled it is and does it look like it could carry

[Link]

more weight?

[Link]

best auctions, and you could pay them to X-ray the horse so you

[Link]

could look inside the animal and look at the -- are there any

[Link]

hidden fractures you don't know about, are the knees constructed

[Link]

properly.

[Link]

if you're Fernando Garcia -- you look at all this stuff, you look

[Link]

at this data, because either you're buying a horse with your

Those that are born are really young.

Some of them
They may be

Months old.

That's pretty old to start

You buy them really young.

As soon as you can

So Fernando looks at the bloodlines, then collects all

the data.

Then about a week before the actual auction, the

You can then go and kind of kick the

You can't touch the horses, you can't ride the horses,
You could have the horses walk and you see

Just from walking, you could tell something.

You can

They had veterinarians onsite at the big auctions, the

If you really know what you're doing -- and you would

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 62 of 249

[Link]

hard-earned money or, most of the time, you're buying it with

[Link]

someone else's money, and they demand that you advise them on

[Link]

what horse to buy and how much to pay and when to stop bid.

[Link]

you've got that young horse you've got to raise.

[Link]

that Fernando would oversee for many of these, especially the

[Link]

ones that could afford him, people like Jose Trevino when he got

[Link]

into horses big time, Mr. Colorado and others.

They expect

[Link]

Fernando to make sure the horse is maintained.

It has to be

[Link]

trained.

[Link]

is a veterinarian.

[Link]

This is not just your average saddle horse that we may have grown

[Link]

up with.

[Link]

very good thoroughness.

[Link]

and constantly and it costs a lot.

[Link]

So Fernando Garcia will be trusted to arrange for great

[Link]

veterinarians to take care of great horses that are being trained

After you buy a horse, you're not done with it.

You'll hear

Sometimes he would train the horses himself.

But he can't train every horse.

Now

You're

Some of these stables

He couldn't adequately focus on all these

So he'll hire people like Mr.
People that he would

They also have to have

The pediatrician for a horse

These horses have to have all kinds of care.

And keep in mind, these are professional athletes.

These are professional athletes.

They have to have

best one we've got, but genetically, maybe the other guy is

[Link]

better.

[Link]

that horse that we should?

[Link]

constantly.

You have to evaluate.

He's the

Are we doing everything for

You'll hear that Fernando Garcia evaluated the horses

We're going to show y'all great example of where he

And Mr. Piloto.

Sometime before

Pilot Point is an extremely fast

A fast mare may beat a fast gelding or a stallion.

You
Very

Pilot Point was a really fast mare.

Mr. Perry was no slouch.

He was a champ.

These were

I don't know where Maverick came from, but Perry

You'll see that often, horses are named after the
Maverick Perry was bought at auction.

It's two horses, one-on-one racing.

Mr.

He was bought in
And he

In the U.S., we
We do

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 64 of 249

[Link]

eight or ten horses at a time, 100-yard dash.

But in Mexico,

[Link]

match racing is simply a real popular support.

[Link]

ran him, you know, training races because he's only a year old

[Link]

will gamble $25,000 of my money to buy that horse, and the man

[Link]

sold it to him.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 65 of 249

MR. GARDNER:

[Link]

going to object.

[Link]

this case --

[Link]

your Honor, from the witnesses.

[Link]

THE COURT:

[Link]

MR. WOMACK:

The horse came in fourth.

Excuse me, Mr. Womack.

Your Honor, I'm

It's more testimony than an outline of what

MR. WOMACK:

This is the evidence we're going to hear,

Well, yes, but let's give them a little

idea about it, instead of the minutiae.

Thank you, sir.

I want you

Mr. Piloto won the

Mr. Piloto won the qualifier to go to that race.

He didn't even know Fernando Garcia

But, again, he came up to Fernando and said, hey, son,

I'll pay you

You'll hear obviously that

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 66 of 249

[Link]

would win any big money at the All-American Futurity.

The best

[Link]

American horses in the country.

[Link]

Trevino.

[Link]

don't know that the bank is loaning you drug money, you're not

[Link]

money laundering.

[Link]

you, is that drug money you're using to pay for those clothes to

[Link]

be cleaned?

So he quadrupled his money and sold the horse to Jose

Mr. Trevino didn't make that big a gamble because the
If you're dead

So Mr. Trevino, having the resources,

But both are happy.

Fernando

trust him, they hired him to do all this work for them.
The government talked about money laundering and they
Well, if

If you only receive money and don't know that

But this isn't really about investing.

We're not

He had people, Mr.

They were

Help us buy the right horse, train it,

Of course not.

As if someone came into the dry

Does the dry cleaner ask

They would never know.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 67 of 249

Fernando Garcia is that dry cleaner.

[Link]

He wouldn't know

[Link]

think the most he ever made was like 80,000, 90,000 a year, and

[Link]

this is one of the top trainers and horse guys in the country,

[Link]

millions or hundreds of thousands, and the government will have

[Link]

to admit that.

[Link]

He would spend the money on the horses, he would keep what he was

[Link]

entitled to, and it was not a lot, because he's an honest horse

[Link]

guy.

You'll hear no evidence from the

The government has all of his

They're going to tell you,
I

despite his young age.

He wasn't making bit make money.

He wasn't making

And you won't see any evidence at all of Fernando

kid, walks in an auction, raises his hand, buys a horse and it's

[Link]

expensive.

[Link]

buy horses and the government makes that sound sinister.

[Link]

going to hear that straw purchasers is extremely common in buying

[Link]

horses at auction.

[Link]

and you see me bid on a horse, what is it telling you?

[Link]

good horse.

[Link]

have someone else not known to be a big horse buyer bid for me

[Link]

and put the horse in his name so no one will know that that's my

[Link]

horse that bid against me and raise the price or try to take the

[Link]

horse that I want.

[Link]

about Disney World.

[Link]

to buy this land in Florida, he didn't go to Florida and say, I'm

[Link]

Walt Disney here to buy a land.

But if you're

Look

The government mentioned straw

A straw purchaser, like the

I forgot how much it was he bought.

About 18-year-old

But these people

You're

If I'm a big-time horse racer and I buy the best horses

Maybe you should bid on that horse, too.

That's a
So I'll

Just for your own common knowledge, you probable know

The fact that Walt Disney, when he started

He sent people that no one knew.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 69 of 249

[Link]

I need some land to put a trailer on.

I need some land to farm.

[Link]

They both bought all this land in Central Florida, nondescript,

[Link]

nobody knew anybody.

[Link]

this is going to be Disney World.

[Link]

it.

[Link]

straw purchaser.

[Link]

financing it.

[Link]

a 15-minute break.

[Link]

about 15 minutes.

[Link]

(Jury not present.)

[Link]

THE COURT:

[Link]

disclosure pursuant to the rules that Mr. DeGeurin has referred

[Link]

to.

[Link]

document.

[Link]

expert notices.

After they bought it, Walt Disney said,

He had never himself bought

How much that land had cost if it was Walt Disney.

should be.

He had straw purchasers for him.

There was nothing illegal.

He was a

He was

It, in fact, is very

There

You would be suspicious if there weren't.

I won't now and I won't later tell you what you should
The Judge is going to tell you what to do,
All we ask for Mr. Garcia is you take the

THE COURT:

Thank you very

Members of the jury, I'm going to give you

Use the facilities, be ready to come back in

I want to see the copy of the expert

MR. GARDNER:

Yes, sir, your Honor.

I pulled the

But it's been filed with the Court, the disclosure for
So if I could ask the Court --

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 70 of 249

[Link]

THE COURT:

Was it filed?

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

(Recess.)

[Link]

MR. FINN:

[Link]

I'm juggling quite a few witnesses, many are friendly, some are

[Link]

hostile, and I'm trying to go out there occasionally and I saw

[Link]

you kind of look at me once when I left during trial.

[Link]

okay with me going outside the courtroom as long as Ms. Williams

[Link]

is here?

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

MR. GARDNER:

[Link]

matter.

[Link]

of the government's opening PowerPoint for the appellate record.

[Link]

Yes, sir.

If it was filed, I'll get it

electronically.
Yeah.

record, who is your first witness that's going to be called?

MR. GARDNER:

Joe Garza, your Honor, should be the

first.
THE COURT:

I've looked at your disclosure.

opinions by Mr. Garza listed or described.

I see no

He's a qualified

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 71 of 249

Esper.

[Link]

children.

Okay.

All right.

[Link]

They hoped

They have because they

They

They came here and took whatever jobs they could take.
They worked many hours.

Mr. Huitron developed a propensity to build homes.

They

One home
"Chevo"

And those

Now, Mr. Huitron, "Chevo" Huitron started training

"Chevo" Huitron
That's all he

And I don't say that demeaningly, but his

He doesn't know how to do anything

And, again, I don't say this demeaningly, he has a

Texas, and that's where "Chevo" Huitron was able to establish his

[Link]

stables.

He literally is illiterate.

He cannot read.

He cannot

So consequently, as a

"Chevo" trained the horse, but "Chevo" didn't have a

The reason he didn't have a license, he couldn't pass
Now, he eventually

He eventually had enough passion to be able to

But they first bought a horse in

Legitimate income.

Hard

Humility, honesty.
Now, in 1996, they -- the Huitron Homes, which was the

They bought -- three brothers bought a

This is their home.

This

A year later, they bought a home, they bought property,

Now, when I say stables, ladies and gentlemen of the

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 74 of 249

[Link]

jury, I'm not talking about Lexington Farms.

horses.

[Link]

fee.

[Link]

million or $10.

[Link]

he trains, that he boards.

This is a crude, elementary racing

It's nothing elaborate.

But that is

It shows that he's out there working in a tough, crude,

And you'll hear evidence and you'll hear testimony, I

In 1998, Huitron

They now buy some

They live very modestly.

But by 19 -- but by the early 2000s, "Chevo" Huitron's

It's starting to

He trains horses for a lot of

Some of them live in the United States, some of them are

And these are people that come to him or their

The evidence is going to show that he charges the same

It doesn't make any difference if the owner is worth 10
He charges $1,100 per month for each horse that
That includes training fees, feed.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 75 of 249

[Link]

Does not include veterinary bills.

Does not include shoeing.

[Link]

does not include saddles.

[Link]

horse is going to be raced at certain racing facilities.

[Link]

doesn't include entry fees into a horse being entered at certain

[Link]

race tracks.

[Link]

trial.

[Link]

very successful.

[Link]

Thru Traffic.

[Link]

Huitron.

[Link]

Huitron hasn't passed the test yet because he can't read and he

It does not include expenses if the

And you'll hear evidence about that during this

In 2005, Mr. Huitron has two horses that prove to be

One is Kathys Star Quest and the other is 60

Both of these horses win a number of races at some

I think there's one in San Antonio,

And these two horses

You're going to hear

She's a young lady who knows Mr. Huitron very

Now, the reason she's trained the horses is because Mr.

This is evidence, again, of the Hs:

Hard

Now, sometime in 2006, an individual named Ramiro

Now, you're going to hear some

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 76 of 249

[Link]

conversations involving Ramiro Villarreal.

Mr. Gardner's already

[Link]

referenced him that allegedly he's buying horses for "40" and

[Link]

"42," these Zetas.

[Link]

does not know when Joe Smith comes and asks him to train his

[Link]

owners that are paying you to train your horses, they're going to

[Link]

go somewhere else.

[Link]

number of people in the -- well, you will hear throughout this

[Link]

case who gravitate to "Chevo" Huitron because they hear that he's

[Link]

a good trainer.

This is what I charge.

The evidence is going to show, ladies and gentlemen,

All he knows is these

And if you're a trainer and you're not making money, the

Now, the evidence is going to show that there are a

He produces good results for his horses.

One of

In fact, the government's

He was the trainer.

Now, the evidence is going to also show that an

knowing participant.

[Link]

an unlawful agreement.

[Link]

you have to show.

[Link]

funds come from illegal sources, not maybe they came from it, not

You have to know that those funds are

You have to know that

People that paid Mr. Huitron, you're going to hear

The evidence is also going to show, ladies and

He had already hit the apex.

But one thing -- the

At that, he was a total failure simply because he

He didn't have the education.

He didn't

I anticipate you're going to hear

But at no

At no time, I submit to

At no time are you going to ever hear any evidence that

You're going to hear a lot about

Drug dealers talk about things in codes so

You're not going to hear him on one

You're going to hear him referenced, I submit to

Not in laundering money.

The evidence is going to further show, ladies and

deposit it.

[Link]

Homes was paid -- was taxed, was declared as income, they paid

[Link]

their taxes on it.

[Link]

show that Mr. Huitron and Huitron Homes, the racing business,

[Link]

There's going to be
The

Didn't have a chance to

He left it there in his home.

Every penny you're going to hear, ladies and gentlemen,

that "Chevo" Huitron made, every penny that went into Huitron

I also anticipate the evidence is going to

He had a number of horses

And so, he asked him, hey, can you put my brother on

He knows a lot about horses.

I want

I know you're a good trainer,

You'll hear from

These are individuals who were paid a

But the money came to Mr. Huitron through either wire

Now, I anticipate, ladies and gentlemen, and again,

this is the use of the K word "knowledge."

That is one of the

knowledge that anyone ever told him or even inferred that the

[Link]

money that he was being paid for his hard-earned services came

[Link]

from some sort of illegal activity.

[Link]

referred to Wal-Mart.

[Link]

conspiracy.

[Link]

Wal-Mart buys products from a lot of people.

[Link]

to sell and Wal-Mart wants to buy them, they buy them from you.

[Link]

Now, when you present your services, your goods and services,

And what I anticipate the evidence will not show

The evidence is not

The evidence is not going to show that he

The evidence is not going to show that he was ever

knowingly told by anyone that these funds are drug money.

They

You're not going to hear any

You will not

Now, finally, ladies and gentlemen, Mr. Gardner

It's a conspiracy.

Wal-Mart is a

There's a lot of people who do work for Wal-Mart.

If you have tires

THE COURT:

[Link]

MR. MAYR:

[Link]

hear the evidence.

[Link]

would respectfully waive my right to open at this time and

[Link]

reserve the right to give an opening statement after the

[Link]

government has made the case-in-chief and prior to presenting any

[Link]

evidence.

[Link]

THE COURT:

[Link]

MR. MAYR:

[Link]

time to make an opening statement.

[Link]

give a statement at a later time.

[Link]

Now, if Wal-Mart is engaging in illegal activity at the

Only if you

That's how you're guilty.

You're not guilty, I submit, and the evidence will show

I hope at the end of

Thank you, your Honor.

Mr. Mayr.
Your Honor, I believe this jury's ready to

I know I'm ready to hear the evidence.

If the Court would permit.

THE COURT:

Well, you've both waived your right?

I guess I did.

All right.

I'm waiving my right at this

I would reserve the right to

You may call your first

witness.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 83 of 249

MR. GARDNER:

Thank you, your Honor.

[Link]

The government

[Link]

(Witness sworn.)

[Link]

THE COURT:

[Link]

BY MR. GARDNER:

[Link]

That is correct, sir.

[Link]

If you will, could you turn to the jury and tell them a

[Link]

little bit about yourself, your background, your career, what you

[Link]

at now.

calls Joe Garza.

Tell us your full name and spell your last

please.
THE WITNESS:

Jose M. Garza.

Last name spelling,

G-A-R-Z-A.
JOSE M. GARZA, called by the Government, duly sworn.
DIRECT EXAMINATION

Thank you, your Honor.

Mr. Garza, you and I met before; is that correct?

I was a state trooper for about approximately seven years,

After

I took a job with the FBI as a senior

I was offered a job as director of Homeland Security for

And that's where I'm currently

I was

The FBI

And when you say McAllen, Texas, for those jurors who aren't

McAllen, Texas is approximately 60 miles from South Padre

Approximately 148 miles from south

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 85 of 249

[Link]

of Laredo.

[Link]

Mexico?

[Link]

Yes, sir.

[Link]

When you say organized crime cases for the FBI, what were

[Link]

the organizations you were most involved with investigating?

[Link]

other countries.

[Link]

affected the integrity of our borders and within the United

[Link]

States.

[Link]

second.

All cartels, cartels in Mexico, Mexico, South America and

Anything to do with the cartels, how they

And, if you will, sir, I'll get back to the cartels in a

What is your current responsibilities as the director

It's -- be hard to give you a number exactly, sir, but

I've been involved with a case on Juan

MR. FINN:

Osiel Cardenas-Escillon case as a witness

Those were two of the major

Judge, excuse me, your Honor, I'm going to

object to the relevance.

MR. GARDNER:

THE COURT:

Just laying the foundation, your Honor,

Okay.

We won't get into the investigation

other than who he was and what he did.

MR. GARDNER:

Yes, sir.

(BY MR. GARDNER) I guess my point is, Mr. Garza, did you

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 87 of 249

[Link]

Yes, sir.

I did.

[Link]

information?

[Link]

of everything.

[Link]

cartels in Mexico.

[Link]

definition of what a cartel is?

[Link]

areas within Mexico.

[Link]

to as a plaza, which is an area controlled.

And in addition to your interviews of known cartel members,

Yes, sir.

That's part of my job assigned to the FBI.

It's a daily operation to maintain and keep track

It's a constant movement and change within the

If you will, sir, could you please give the jury a

MR. FINN:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:
A.

Excuse me.

-- while -MR. DEGEURIN:

Excuse me.

I'm going to have to object.

He's basically given us what he's been told by other

THE COURT:

Well, the objection is overruled.

(BY MR. GARDNER) Sir, if you will, could you look at your
The monitors, are they off for the jurors?

THE JUROR:
Q.

They're on.

(BY MR. GARDNER) -- on?

Okay.

Sir, you recognize this, don't you?

No objection, your Honor.

All right.

For demonstrative only, we'll

call it Demonstrative 1.
MR. GARDNER:

Demonstrative 1 will be fine, your Honor.

or influence.

[Link]

important with relation to the border security?

And the lawyers -- all of the lawyers can

It doesn't go into the

(BY MR. GARDNER) Mr. Garza, I'm sorry, can you see that map

That is correct.

And when you say

Right on the tip of your pen on the

I guess why I want to show you this picture, Mr. Garza, is

You talked about them being sort of
Is that your

It's to explain what a plaza definition more or less would

And

So that's the simplest

A cartel could cover anywhere from one to

And with respect to the plazas themselves, why is that

cartels.

[Link]

fine.

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

linked in some historical manner?

So you say there's a plaza boss.

Could you define for the

"Comandante" is a term used for a person of influence more

He doesn't necessarily have to be a

He has the influence; therefore, as a form of respect,

Sir, you earlier mentioned about the Gulf cartel and the

MR. FINN:

THE COURT:

Judge, excuse me, I'm going to object.

Don't keep me in suspense.

Make it for the

record.
MR. FINN:

He's trying to get into other cartels, Gulf

Specifically says Zetas.

If he wants to focus on that,

I could rearrange my question, Judge.

All right.

(BY MR. GARDNER) Are the Zeta cartels and the Gulf cartels

LILY I. REZNIK, OFFICIAL COURT REPORTER

are they made of, I guess, personnel?

[Link]

than a radio call sign given to them when they first were

[Link]

THE COURT:

[Link]

question-and-answer.

[Link]

government.

[Link]

Aeromovil de Fuerzas Especiales, or Special Air Mobile Forces.

[Link]

Berets in the United States?

[Link]

Correct, sir.

[Link]

Okay.

And what are the Zetas -- at least the original Zetas, what

The original group known as the Zetas, which is nothing more

A group of approximately 30 out of the 350 that started,

Let's stop there and do

MR. GARDNER:

Thank you, your Honor.

(BY MR. GARDNER) So you say they were part of the Mexican
Were they part of the Mexican military?

They were part of the what is known as the GAFES, Grupo

Is that similar to what most people would refer to as Green

So when the GAFES or the Zetas joined the Gulf

THE COURT:

[Link]

MR. GARDNER:

[Link]

the Zetas and how they evolved to the point where they're going

[Link]

to get to today, and that's where I'm heading, your Honor, to the

[Link]

point where they're at today in the Zeta activities.

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

They were the enforcement unit when they first started out

And what type of enforcement would they conduct for the Gulf

Anything the cartel needed to be done, whether it's

Also, the protection of the cartel, the

When you say area, could you just describe the map?

And

Your Honor, excuse me, I'm going to object

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

testified to and his years of experience, and your objection is

[Link]

overruled.

[Link]

Zetas.

[Link]

Okay.

[Link]

Right there.

[Link]

All right.

Tamaulipas?

And you could go down

They control all those particular areas and the area

Yes, sir.

And based on your experience, where do the Zetas

Now, that it comes from various countries.

There are

There are your marihuana

You get cocaine

And earlier, we talked a little bit about the Gulf and

When did that split

That split occurred approximately in about 2007, 2008.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 95 of 249

[Link]

And are you familiar with the cause behind the split?

[Link]

The cause behind the split was --

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

controlling more territory?

[Link]

Yes.

The same points we described as currently the state of

Okay.

And, I'm sorry, sir.

Maybe my question wasn't clear.

I guess what I'm asking is, what are the major Mexican

Okay.

You've got Laredo, which is Nuevo Laredo across from

You've got

And you've got close to the

He also goes by

He also goes by the A/K/A of "L-40,"

He also goes by "Comandante Cuarenta."

And who is Oscar Omar Trevino-Morales?

MR. GARDNER:

[Link]

THE COURT:

Judge, excuse me.

Objection.

Nonresponsive.
I can move on, your Honor.

All right.

(BY MR. GARDNER) Now, do the Zetas identify themselves with

Yes, they do.

They have either the Z sign, alphabetical

They are also using the Ferrari symbol, which is one

MR. FINN:

Judge, excuse me, earlier, I think you

sustained an objection as to any opinion testimony.

THE COURT:
counsel.

At this point, I have a good memory,

What is the problem?

MR. FINN:

I think we're getting into opinion.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 97 of 249

[Link]

THE COURT:

He withdrew the question.

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

symbol that the Ferrari automobile company uses?

[Link]

That is correct.

[Link]

A horse; is that correct?

[Link]

Yes.

[Link]

And, sir, are you familiar with the methods of communication

[Link]

that the Zeta cartel uses?

[Link]

Yes, sir.

[Link]

And if you could, can you please explain the use of Nextel

Oh, thank you.

Yes, sir.

(BY MR. GARDNER) When you say Ferrari symbol, is that the

The yellow and black.

The Nextel phones is one of their widely used communication

They use Nextel phones to

They're also using certain

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 98 of 249

Yes.

May I have one moment, your Honor?

THE COURT:

You may.

(BY MR. GARDNER) And, Mr. Garza, I'm sorry, a couple of more
Are you familiar with the symbol

It says on the top

THE WITNESS:

[Link]

THE COURT:

[Link]

Zetas use the "Echo en Mexico" symbol?

[Link]

Yes, sir, they do.

[Link]

So you're going to have a lot of questions.

So let's

just handle it one at a time.

THE WITNESS:

Yes, sir.

(BY MR. GARDNER) Are you familiar with whether or not the

And finally, sir, what are the methods that the Zetas

MR. FINN:
earlier rulings.

Judge, I'm going to object based on your

It's opinion testimony.

THE COURT:

Counsel, if you remind me again about that,

I'm going to recess the jury and talk to you.

You do not have to state to the jury what I have ruled

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

MR. DEGEURIN:

[Link]

MR. WOMACK:

[Link]

MR. ESPER:

[Link]

MR. MAYR:

[Link]

THE COURT:

[Link]

MR. FINN:

No objection, your Honor.

[Link]

THE COURT:

You may be excused, sir.

[Link]

THE WITNESS:

Thank you, your Honor.

[Link]

MR. GARDNER:

Call my next witness, your Honor?

[Link]

THE COURT:

100

need you not to do it.

I'll do my best.
All right.

I sustain the objection to the

(BY MR. GARDNER) Do the Zetas make money through the sale

That is just one form of -THE COURT:

The answer is "Yes" or "No."

I appreciate it.

I'm going to turn you over to these gentlemen right here.

jury.

Mr. Finn.
May it please the Court, members of the

No questions.
No questions, your Honor.
We have no questions.
Got nothing, your Honor.
Nothing, Judge.
Okay.

May this witness be excused?

How long will your next witness be?

you go in and out because they don't know you're jurors, and

[Link]

there are other possible jurors in other cases that are here.

[Link]

just kind of smile and don't be surprised if somebody doesn't

[Link]

talk to you.

[Link]

(Jury not present.)

[Link]

THE COURT:

[Link]

Okay.

Members of the jury, I'm going to

It's a quarter of 12:00.

I'd like to

That will give you enough time to

It's

We have a lot of people in the

Some are interested in this trial.

Some are

here.

That's routine for us.

Anytime

Don't pay any -- whole lot of attention to it.

But

Don't talk with anybody else as

And we will remember the instructions.

And we'll start

promptly at 1:20.

Counsel, we're going to get along more

efficiently and better if when you want to make an objection, you

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 102 of 249

just make an objection and state your ground.

[Link]

(Lunch recess.)

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

THE COURT:

[Link]

(Jury present.)

[Link]

THE COURT:

[Link]

JURORS:

[Link]

THE COURT:

[Link]

during the break?

[Link]

JURORS:

[Link]

THE COURT:

[Link]

about this case, outside the presence of one another in this

[Link]

courtroom?

[Link]

JURORS:

[Link]

THE COURT:

[Link]

And if you'll swear the witness, please.

[Link]

(Witness sworn.)

All right.

102

1:20.

Anything before we bring in the

jury?
Nothing from the government, your Honor.

Bring the jury in.

You may call your

witness.
MR. GARDNER:

The government calls Mario Alfonso

BY MR. GARDNER:

[Link]

correct?

[Link]

Yes, sir.

[Link]

If you will, could you introduce yourself for the jury?

[Link]

Tell them how old you are, how much education you have, and where

[Link]

you're from.

[Link]

been 11 years -- I have 11 years of study, grade level, and I'm

[Link]

from Mexico.

[Link]

United States?

[Link]

I'm a U.S. citizen.

[Link]

And, sir, you're in a jail uniform; is that correct?

[Link]

Yes, sir.

[Link]

Okay.

[Link]

Yes, sir.

[Link]

Could you please tell the jury what that crime was?

name, please.
Mario Alfonso Cuellar, C-U-E-L-L-A-R.

You may proceed.

MARIO A. CUELLAR, called by the Government, duly sworn.

DIRECT EXAMINATION

Thank you, your Honor.

Mr. Cuellar, you and I have met before; is that

My name is Mario Alfonso Cuellar.

I'm 46 years old.

It's

And, sir, what is your immigration status right now in the

Were you charged with a crime in the United States?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 104 of 249

104

[Link]

And is that because your wife has said that she's going to

[Link]

leave you?

[Link]

Yes, sir.

[Link]

And so, now, also, did you receive -- strike that.

[Link]

program?

[Link]

Yes, sir.

[Link]

And are you being considered for entry into that Wit Sec

[Link]

program?

[Link]

Yes, sir.

[Link]

And, if you will, could you please tell the jury how you

[Link]

became to be involved with narcotics?

Twenty years.

First, before anything, to tell the truth.

Second, that my

And then, just move

Are you familiar with what is called the Wit Sec

A bit.

But yes.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 105 of 249

105

[Link]

distribution of cocaine?

[Link]

Yes, sir.

[Link]

And was there a time when you moved from the United States

[Link]

to Mexico?

[Link]

drugs.

[Link]

to which you pled guilty to?

[Link]

Yes, sir.

[Link]

Now, you've testified before in federal court, have you not?

And -- I'm sorry.

Yes, sir.

Then, later -- and as

Were you distributing drugs in the United

I just transported it.

Due to an arrest warrant from the FBI from moving

And is that one of the arrest warrants for the indictments

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 106 of 249

106

[Link]

Yes, sir.

[Link]

And where was that?

[Link]

In Dallas, Texas.

[Link]

Was that in federal court or in state court?

[Link]

Federal.

[Link]

And is it your understanding that it is that judge that will

[Link]

make the decision on your sentencing or Judge Sparks here?

[Link]

I know it's the one in Dallas.

[Link]

And so, you stated that you moved to Mexico to avoid federal

[Link]

charges here.

[Link]

Mexico?

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

into Mexico?

[Link]

2005.

[Link]

And were you engaged in the drug trafficking in 2005 from

[Link]

Mexico?

[Link]

Zeta cartel showed up.

[Link]

And what drug activities were you engaged in in

MS. WILLIAMS:

Excuse me, Judge.

Could we get a

timeframe?
I can rephrase.

All right.

(BY MR. GARDNER) When did you move from the United States

I stopped until 2007.

I didn't move any drugs until the

And you moved -THE INTERPRETER:

To Piedras Negras.

Interpreter's

correction.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 107 of 249

107

[Link]

(BY MR. GARDNER) So in 2007, could you please tell the jury

[Link]

how you got involved with the Los Zetas drug cartel?

[Link]

started picking up people to get them to work with them or they

[Link]

were murdered, and they started lining us up so we would work

[Link]

with them.

[Link]

Exhibit 335A.

[Link]

Yes, sir.

[Link]

335B.

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

admitted, 335A and B.

[Link]

Zetas.

[Link]

In 2007, the Zetas showed up in Piedras Negras and they

I'm going to show you what's been marked as Government's

Do you recognize that picture, sir?

Does he have a

Do you

No objection.

Counsel.

Hearing no objection, they are

(BY MR. GARDNER) So in 2007, you were approached by the

Who approached you initially?

Omar and "Mamito."

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 108 of 249

Now, on the screen here is Government's Exhibit 335B.

108

And who were you distributing -- strike that.

Let me ask a

Who was your supplier or your boss for the drugs before

Raul del Fierro and the marihuana we bought from anyone who

And Mr. del Fierro, what happened to him?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 109 of 249

109

[Link]

I don't know where he is, but I know he's in Chihuahua.

[Link]

And so, when you were picked up by "42," what did he tell

[Link]

you with respect to your drug distribution?

[Link]

MS. WILLIAMS:

[Link]

MR. GARDNER:

[Link]

Omar Trevino -- I'm sorry, Omar Trevino, "42"?

[Link]

MS. WILLIAMS:

[Link]

"Yes" or "No" question.

[Link]

THE COURT:

[Link]

(Last question read back.)

[Link]

THE COURT:

[Link]

"Yes" or "No."

[Link]

Yes.

[Link]

(BY MR. GARDNER) In what manner did you distribute drugs for

[Link]

Omar Trevino?

[Link]

to me, and then, I would cross him over in sums of 150 to 200.

[Link]

We would cross them over in 18-wheelers, bringing them into the

[Link]

United States.

[Link]

the jury what amounts was Omar Trevino providing you in cocaine

Objection.

Hearsay.

Coconspirator hearsay statement, your

Honor.
THE COURT:

This is 2007.

The objection is sustained.

(BY MR. GARDNER) Did you begin distributing drugs for Miguel

After I met him about -Objection.

Nonresponsive.

That was a

Read me the question back.

That is a "Yes" or "No" question.

Answer

I would cross him over the river and he would deliver them

And when you say the amounts, could you, again, explain to

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 110 of 249

110

[Link]

to send into the United States?

[Link]

200 kilos each time.

[Link]

were moving these kilos across the border?

[Link]

Eagle Pass, Texas.

[Link]

you smuggle?

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

(BY MR. GARDNER) You may answer that question.

[Link]

We would cross it over the river and then, crossing the Rio

[Link]

Grande, and then, we would put it in the house in Eagle Pass, and

[Link]

then, the truck, the 18-wheeler would show up and it would either

He would deliver 500 kilos, and I would move it at 150 to

And where were you?

What city were you in Mexico when you

Piedras Negras, Coahuila, which is across the border in

And you mentioned a little bit but, just again, how would
Or what method of concealment would you use to get

the cocaine into the United States?

Objection.

Repetitive.

Objection is overruled.

And would you receive the money from the sales of drugs in

I'd be told about a week or two weeks later, there's

And so, then, I would go get it and it would be

It would

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 111 of 249

[Link]

your verdict.

[Link]

at this courthouse.

[Link]

go back and I'll have Mr. Gardner restate his.

[Link]

point in time?

We have two things going.

112

There was a question and then, there was

Okay.

Well, I can't really rule until I

So that gives me the opportunity to

These are certified federal interpreters that work

And let me ask a question, and then, we'll

We're talking about kilos but kilos of what at this

So restate your question, and then, you can
I just don't

(BY MR. GARDNER) When I say the word "kilos," does that

Cocaine.

LILY I. REZNIK, OFFICIAL COURT REPORTER

[Link]

Yes, sir.

[Link]

(BY MR. GARDNER) And what would happen if you lost a load of

Objection.

Relevance.

Your Honor, it's relevant to his

relationship in the conspiracy, in the Zeta conspiracy.

THE COURT:

Well, he's not being charged by being in a

conspiracy, and this is a money-laundering case.

MR. GARDNER:

I asked about loads of money and cocaine.

I can just ask about loads of money.

THE COURT:

With the loads of money and cocaine, I'll

Well, as long as it can be shown that this was due to the

But

You've identified this man as

When did you meet him?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 114 of 249

He was the second boss.

114

[Link]

From Columbia.

[Link]

Columbia.

[Link]

Jose Vasquez, Jr.?

[Link]

Yes, sir.

[Link]

And what was his role in the organization?

[Link]

He was the one that bought all the cocaine and all the

It was another one in Chicago, but I don't know him.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 115 of 249

115

[Link]

Are you familiar with an individual by the name of Hector

[Link]

Moreno?

[Link]

Yes, sir.

[Link]

we would then gather them and put them into higher -- get higher

[Link]

denominations.

[Link]

other expenses involved?

[Link]

He was the one that was in charge of handling both the money
He was the one that took all the phone

He was the one that Jose Vasquez was his client, so he

He would gather up the money, send the

And then, when the money was together, he'd call me and

If there are any ones, fives, or tens, because in

And would all the money go back to Columbia?

No.

Or were there

There were expenses that remained in Mexico, like

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 116 of 249

116

[Link]

paying for the plazas, the horses, the workers, the ones who

[Link]

crossed.

[Link]

Guadalajara?

[Link]

Yes, sir.

[Link]

"Cuno"?

[Link]

"Cuno."

[Link]

"Cuno"?

[Link]

Yes, sir.

[Link]

Miguel and Omar, "40" and "42," would use to keep track of their

[Link]

money.

So you're familiar with an individual by the name of Raul

He is a friend, but he was a

He would package it up and he

Hector Moreno.

He was the

He's one of the Zetas' accountants.

Miguel and Omar Trevino.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 117 of 249

Well, then, I would -- okay.

117

[Link]

So I would get the money, be

[Link]

it two or three, four million, and it would then be split up and

[Link]

along with denominations as I told you.

[Link]

"Cuno."

[Link]

says, okay --

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

objection.

[Link]

expenses?

[Link]

paying for the houses, for the storage and --

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

would ask me if I needed more.

[Link]

reported then are not to be considered offered for the truth of

[Link]

the matter but as to the reasons why this gentleman says what

[Link]

Do you have any

Yes, we have expenses of transporting, of crossing, of

I object to hearsay.

Okay.

The objection is still overruled.

And then, he would prepare a report for Omar, and then, Omar

(BY MR. GARDNER) More money or more cocaine?

THE COURT:

Members of the jury, the conversations he

In other words, the method.

So that's why the

Thank you, your Honor.

(BY MR. GARDNER) Do you know why "40" and "42" have never

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 118 of 249

118

[Link]

Yes.

[Link]

All right.

[Link]

Because if they had bought off all the police in Mexico, the

[Link]

In 2011.

[Link]

MR. ESPER:

Excuse me, your Honor.

[Link]

THE COURT:

All right.

[Link]

MR. ESPER:

May we approach the bench, please?

[Link]

THE COURT:

Sure.

[Link]

(At the bench, on the record.)

[Link]

MR. ESPER:

Nonresponsive to the rest of

whatever is about to come.

was arrested 2011.

That's a good objection.

Ask your next question.

Your Honor, I would request that the Rule

This is a

I think an instruction under Rule

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 119 of 249

119

[Link]

do with any cocaine is my request.

[Link]

disagree.

Yes, he was arrested for cocaine that is a charged

One of the charged items.

MR. ESPER:

That's fine.

I don't think there

This is all to determine

But there's a lot of

Some of that money was used to launder.

MR. GARDNER:

I think

But what

I think a limiting

I just ask if the Court is giving an

instruction -THE COURT:

At this time, I'll overrule that objection.

(BY MR. GARDNER) Mr. Cuellar, we established that you were

Why did you reenter the United States?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 120 of 249

120

[Link]

organization started cooperating with ICE and DEA about where

[Link]

things were and because there were people that -- because the

[Link]

trust I had in them had the information and they were starting to

[Link]

cooperate.

[Link]

people they consider traitors?

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

THE COURT:

I couldn't understand.

[Link]

MR. ESPER:

Your Honor, with respect to that question,

[Link]

I would renew the same 105 objection I previously raised.

[Link]

we're talking about a different subject.

[Link]

the question -- the witness may answer.

[Link]

everybody --

[Link]

MS. WILLIAMS:

[Link]

MR. GARDNER:

[Link]

And what does -- or what does Miguel and/or Omar do with

Objection.

Relevance.

What was the last part of your question?

What does -- the people they considered

traitors.

THE COURT:

Traders.
Traitors.

Anybody else?

Now

Objections are overruled and

In 2011, I had brought -- bought BlackBerrys for

Objection, your Honor.

Nonresponsive.

Your Honor, I believe if the Court hears

the rest of the answer, we will find that it is responsive.

THE COURT:
A.

Okay.

We'll hear the rest of the answer.

Because everything was done through messaging.

I had bought

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 121 of 249

121

[Link]

ten, one for Miguel, one for Omar, for other people, and one was

[Link]

for me.

[Link]

DEA and ICE about that.

[Link]

Mexican authorities told them that someone within my organization

[Link]

was betraying them.

[Link]

what the Zetas did, was that the reason you came across into the

[Link]

United States?

[Link]

Yes, sir.

[Link]

And prior to coming across, did you let anyone else know you

[Link]

were crossing into the United States?

[Link]

Yes, sir.

At the time, Hector Moreno and Jose Vasquez were telling

They told the Mexican authorities.

The

(BY MR. GARDNER) And, again, based on your understanding of

Oh, my

Sorry.

So you mentioned horses.

They stole my horses.

And they killed a

Why don't I talk about horses for

Are you familiar with the breed known as the

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 122 of 249

122

[Link]

Yes, sir.

[Link]

Could you please let the jury know how you became involved

[Link]

money's from.

[Link]

$10,000.

Couldn't do that, so we never spent more than

And when you became involved in the Zetas, did "40" and "42"

When I met Omar and "Mamito" when they picked me up,

He was talking about Frequently Dash,

And since I knew something about

And so, he started talking to

And when you talk about the lines, are you referring to the

Yes, sir.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 123 of 249

123

[Link]

And I believe you said two bloodlines, Mr. Jess Perry and

[Link]

Corona Cartel.

Am I correct in that?

[Link]

Yes, sir.

Those are two horses.

[Link]

And why are they, the bloodlines for those two horses so

[Link]

valuable?

[Link]

offspring tend -- they ran fast, they broke records.

[Link]

every 100 offspring that they have, five to ten would be really

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 124 of 249

124

[Link]

Yes, sir.

[Link]

And how do you know him?

[Link]

He's the one that bought Tempting Dash and Mr. Piloto, lots

They were bought through people that didn't -- weren't being

I'm going to come back to Mr. Colorado in just a second.

I did see him, but no.

Do you

I don't

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 125 of 249

125

[Link]

That's fine.

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

(Last question read back.)

[Link]

THE COURT:

[Link]

What was the question?

[Link]

(BY MR. GARDNER) How would the businessmen, after they first

[Link]

took the horses, get reimbursed by the cartel?

[Link]

They were paid in Mexico.

[Link]

By who?

[Link]

For who?

[Link]

By who?

[Link]

Miguel, or through "Cuno," or "Metro," or whoever was in

[Link]

charge in Veracruz.

[Link]

Do you know what happened to Ramiro Villarreal?

[Link]

Yes, sir.

[Link]

And what was that?

[Link]

He was killed.

[Link]

And who killed him?

[Link]

Omar.

[Link]

And do you know why Ramiro Villarreal was killed?

[Link]

Yes, because they realized that he was cooperating with the

[Link]

U.S. authorities.

Now, the businessmen, how would they get reimbursed for

payment of the horses?
Your Honor, objection to foundation.

Read me back the question.

Objection's overruled.

Who would pay the businessmen?

Sorry, Miguel.

He was either arrested or detained in Houston.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 126 of 249

126

[Link]

Yes.

[Link]

much.

[Link]

bit more.

[Link]

Carlos Nayen?

[Link]

Yes, sir.

He bought a mare from Miguel.

I don't remember how

It was somewhere between 100 to 300,000, maybe a little

And are you familiar with an individual by the name of

Carlos was told

Alejandro did not want the mare in his

So if you know, why would "40" kill someone for wanting a

MR. DEGEURIN:

Excuse me, your Honor, I'm going to have

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 127 of 249

127

[Link]

to object to speculation.

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

foundation.

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

in any way, shape or form.

[Link]

objection.

[Link]

I sustain the objection.

And could I approach the bench?

Could

Make myself more clear about the

Judge, I cannot tell from the question

And to wait

So that's why I was asking

He wasn't present during any of these things

At least it hasn't been established.

What happened to so and so?

THE COURT:

And

What happened to

It's either calling for,

That's why I was objecting to

Well, I understand what foundation is.

just have to put the objection to the right question.

That's my fault.

Yeah.

MR. DEGEURIN:

You're not inhibited from objecting

But I understand the reason for the

All right.

Okay.

Well, I'll do it

again if he starts.
THE COURT:

That's your right.

THE COURT:

[Link]

answer.

[Link]

horses.

[Link]

fees and the inscriptions and maintenance of the horses, was that

MR. ESPER:

Okay.

Excuse me, your Honor, I'm going to object

If he knows from

I don't know if he's getting this information from

It's not

Read me back the last question.

That objection is overruled.

You may

And I know this because I was the one that paid the money to

I gave him the money in -- all the

Because I was still owed a million-and-a-half

(BY MR. GARDNER) And was this payment for the registration

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 129 of 249

129

[Link]

dollars?

[Link]

Correct.

[Link]

And would you ever sit with "40" while one of these auctions

[Link]

were ongoing?

[Link]

No, sir.

[Link]

Do you know how "40" communicated with Carlos on which

[Link]

horses to buy?

I would hand the money to Carlos in Nuevo Laredo, and he

In cash?

Miguel had ordered me that

When you say 100, 200, 250, is that hundreds of thousands of

Yes.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 130 of 249

Through the BlackBerrys.

130

[Link]

"40" would show me on his BB,

[Link]

after he bought them, saying, look I bought this one, this one,

[Link]

Sorry.

[Link]

When you say Mr. Jess Perry, Corona Cartel, those are the

[Link]

valuable bloodlines that "40" liked?

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

next question.

[Link]

horses that they purchased?

[Link]

all of the cars.

[Link]

they would name the horses.

[Link]

And when you say he would show you, what would he

Through messages that he would send, Carlos.

And then, he

Thank you.

Yes.
Objection, your Honor.

It is.

Nonresponsive.

Sustain the objection.

Ask your

It wasn't a question before.

(BY MR. GARDNER) Do you remember the names of any specific

The Tempting Dash, Mr. Piloto, and Rolls Royce, Corvette,

I don't remember all the cars, but that's what

Would they name the horses after car names?

of that race?

[Link]

Yes, sir.

[Link]

And who gave you those instructions?

[Link]

Miguel instructed me to pay $110,000.

[Link]

when Carlos was calling, saying he could make an arrangement.

[Link]

So --

[Link]

MS. WILLIAMS:

[Link]

MR. GARDNER:

THE COURT:

Objection.

Are you familiar

Carlos -- I was there

Hearsay.

That is a coconspirator hearsay

The objection is sustained -- is overruled.

When you say held back, do you know how the effect of

Yeah, a lot, because they were the ones who were in charge

And how long does it take for a quarter horse to run a

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 132 of 249

132

[Link]

quarter mile?

[Link]

Seventeen some, 19, it's not very long.

[Link]

And so, does the holding of the head by the other gate

[Link]

starters of the other horses, is that what affects the race?

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

the internet through the AQHA, the AQHA association, you would be

[Link]

able to see that the faster horses, their heads were held for a

[Link]

millisecond.

[Link]

corruption so that Mr. Piloto would win.

[Link]

known as the American Quarter Horse Association?

[Link]

Yes.

[Link]

Now, going back to conversation you had, who came up with

[Link]

the amount, the $100,000 that you said was sent to the gate

[Link]

starters?

[Link]

I don't know what they call the people here that hold the horses.

[Link]

And they had said it would be 3,000 and Miguel said, no.

[Link]

not going to give them 3,000, you're going to give them 10,000.

[Link]

Yeah.

Lack of foundation.

Objection is overruled.

If you were to watch the video that's available on

I was present in all the dealings for the

(BY MR. GARDNER) When you say AQHA, is that the A-Q-H-A, or

Yes.

MS. WILLIAMS:

Objection.

Nonresponsive.

It was $110,000 and Carlos had had a dinner with them.

THE COURT:
A.

Objection.

Those are seconds.

You're

The objection --

Per horse.
THE COURT:

And

-- is overruled.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 133 of 249

133

[Link]

(BY MR. GARDNER) Was that 10,000 per horse per -- strike

[Link]

that.

[Link]

Yes, sir.

[Link]

And how many horses ran in the All American Futurity finals?

[Link]

Eleven.

[Link]

And do you recall by how much Mr. Piloto won?

[Link]

Are you talking about what the race difference was, the body

[Link]

length?

[Link]

Si.

[Link]

It was by a milli -- nothing.

[Link]

How did you get the money, the $100,000 from Mexico over to

[Link]

the track?

[Link]

order it.

[Link]

And the money was taken from Dallas to Ruidoso and delivered

[Link]

there.

[Link]

that Hector Moreno?

[Link]

Yes, sir.

[Link]

And when you say the buyer in Dallas, is that Jose Vasquez?

[Link]

Yes, sir.

[Link]

And do you know the name of the individual who actually went

[Link]

and got the money and delivered it to Ruidoso?

[Link]

Was that $10,000 per gate starter?

Between -- yes.

It wasn't from Mexico.

It was barely by the nose.

It was from Dallas and I didn't

It was Hector and it was through the buyer in Dallas.

And just for some clarifications, when you say Hector, is

Yes.

Yes, sir.

Gerardo Mata.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 134 of 249

[Link]

And was Mr. Mata a worker of yours?

[Link]

Yes, sir.

[Link]

When Mr. Piloto won that race, who owned that horse?

[Link]

Miguel.

[Link]

"Cuarenta"?

[Link]

Yes, sir.

Repeat the question.

What was the question?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 135 of 249

135

[Link]

(BY MR. GARDNER) Did "Cuarenta" tell you that was his horse?

[Link]

Yes, sir.

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

(Last question read back.)

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

of his brother Jose Trevino in the horse business?

[Link]

Yes, sir.

[Link]

And what did he tell you?

[Link]

asked.

[Link]

involved his brother Jose Trevino in the horse business?

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

It was Omar, not Miguel.

[Link]

(BY MR. GARDNER) So what did Omar tell you about Jose

[Link]

Trevino's involvement with the horse racing?

THE COURT:

[Link]

knowledge?

[Link]

Tempting Dash?

[Link]

Sold it to Jose.

[Link]

How do you know that?

[Link]

he's gotten testimony from his wife.

[Link]

his wife told him.

[Link]

present during the actual transfer, your Honor.

[Link]

Court to listen to the answer first.

Well, that Miguel -- that Jose was going to become involved

Omar had always talked a lot about Jose

It wasn't until Ramiro bought that horse for

(BY MR. GARDNER) And did you know whether Tempting Dash ever

Objection.

Ask that.

Foundation.

What's the basis of his

(BY MR. GARDNER) Are you aware that Ramiro had to give up

MR. ESPER:

Your Honor, this is really getting -- now

THE GARDNER:

That's clearly hearsay what

I believe he's going to testify he was

I would ask the

Or I could rephrase the

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 137 of 249

137

[Link]

THE WITNESS:

[Link]

take my wife because Ramiro was going to sell Jose the horse in

[Link]

Mexico.

[Link]

she there did off-the-cuff translation about the sale.

[Link]

told them to come meet her at her office in Eagle Pass where she

[Link]

would have the agreement typed up and ready to go.

[Link]

remember if it was in English or Spanish, but that she would have

[Link]

it there.

[Link]

agreeing to the sale of this horse.

[Link]

think I can agree with Mr. Esper, it's probably hearsay based on

[Link]

the wife.

[Link]

THE COURT:

Well, the problem is that the objection

On the other hand, it may not be admissible

So I'll put you in the jury room for a minute, members

of the jury.

You may.
One day, Omar called me and told me to

I talked to her about it.

She went very unwillingly and

Then she

I don't

They would sign it and seal it, that they were both

MR. GARDNER:

THE COURT:

Based on that response, your Honor, I

All right.

Okay.

Well, I'll tell you

what, since the jury's out, let's take a ten-minute break, and

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 138 of 249

138

[Link]

tell the jury they'll have time to use the facilities if they

[Link]

wish.

I don't know how many people are on

And so, if I sustain the

But I think we're going to have to let the answer come,

then make your objection, and then, if I think it's not

Now, a lot of people don't think that's a good remedy,

MR. WOMACK:

And I'm

But that's a very unscientific

Your Honor, now that we know the answer

Your Honor will give the proper instruction to

THE COURT:

Oh, I'll do that now.

But I'm talking

about the next question and the one after that.

Oh, yes, sir.
I don't want the jury having to lead on

each question and hearing the answer.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 139 of 249

MR. ESPER:

Your Honor, I concur with the Court.

139

[Link]

believe the jury's followed the Court's instructions to

[Link]

disregard.

[Link]

the answer.

[Link]

traditional way is for everybody to hear the answer, and then, I

[Link]

give an instruction that they're not to consider it for any

[Link]

purpose.

[Link]

renew your instruction to the jury about the Spanish and the

[Link]

English.

MS. WILLIAMS:

There's no
But the

Your Honor, I would just ask you to

You did give them an instruction that covers that.

THE COURT:

All right.

I'm going to sustain the objection and tell

And then, I will tell

Take a little break.

(Recess.)

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 140 of 249

140

[Link]

(Jury present.)

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

Jose Trevino?

[Link]

Yes, sir.

[Link]

And where was that?

[Link]

In Mexico.

[Link]

And about how many times do you recall meeting Jose Trevino?

[Link]

Three, four times.

[Link]

And do you recall the timeframe in which this occurred?

[Link]

Exact dates, no, but it was more or less 2009, 2010 when I

[Link]

saw him those three or four times.

[Link]

Jose Trevino?

[Link]

Omar.

[Link]

And could you describe at least the first occasion you

Members of the jury, I sustained the

So those of you who are

And let me reemphasize the

Not your own understanding of

You must rely on the official interpreter.

Thank you, your Honor.

(BY MR. GARDNER) Mr. Cuellar, have you ever met personally

And who else was with you when you met Jose Trevino, you saw

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

[Link]

And was Omar present during this conversation?

[Link]

No.

[Link]

"42" making a statement about putting his brother into the horse

[Link]

business.

[Link]

Yes.

[Link]

(BY MR. GARDNER) Now the question is, what was that

[Link]

statement?

[Link]

There was a day, I don't remember it was Mother's Day or

Omar stepped back.

He was outside in one of the la

It was just Jose and I.

Jose wasn't into horses yet.

Talked about his work,

That he wasn't.

I don't know if it was a

I don't remember.

Now, when we talked last, you made a comment meaning about

Do you recall that?

THE COURT:

Just the question is, do you remember that?

That it's going back to the same thing.

That Jose really

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 142 of 249

142

[Link]

likes country life, working with cattle and horses.

He wanted

[Link]

nothing to do with the drugs.

[Link]

them.

[Link]

living.

[Link]

horse business?

[Link]

Yes.

[Link]

involved in that?

[Link]

Yes, sir.

[Link]

Could you tell the jury how you would arrange for the

[Link]

THE COURT:

[Link]

THE WITNESS:

He didn't want anything to do with

That he lived a pretty humble life.

He made his own

And did he make any comment about putting Jose into the

That Jose, yes.

Jose Nayen would give me a list about all the expenses that

Who was it that gave him the list?

Carlos Nayen.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 143 of 249

(BY MR. GARDNER) I believe you said Jose Nayen.

143

[Link]

interpreter --

[Link]

expenses?

[Link]

Yes, sir.

[Link]

And do you know for how many horses these expenses were?

[Link]

Forty, 60 horses.

[Link]

United States?

[Link]

And how would you get the money for the horses across the

No, sir.

[Link]

How much money would you estimate that the Los Zetas made in

[Link]

one year from selling cocaine in the United States that came

[Link]

through your plaza?

Objection.

Sustain the objection.

I don't know.
But no.

Speculation.

I don't know.

I know HCBC was being

I don't know.

Do you know if it was a bank in Mexico or banks in the

MS. WILLIAMS:

Objection.

Speculation.

I think he

just said he didn't know.

I think he said --

We'll find out.

According to Carlos Nayen, through a bank, it was being sent

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

[Link]

were not the plaza boss; is that correct?

[Link]

Of course not.

[Link]

That was an individual by the name of "Metro"?

[Link]

"Metro."

[Link]

And so, were there others that had sort of the same or

[Link]

similar organization that you did that also worked for "Metro" in

[Link]

that plaza?

[Link]

Yes, sir.

[Link]

So about 60 million a year came back through your

[Link]

organization.

[Link]

United States?

[Link]

Yes, sir.

[Link]

And how much would you estimate you paid over the two years

[Link]

you were involved in horse expenses back into the United States?

[Link]

Out of my pocket, a million-and-a-half dollars.

[Link]

And what about the expenses paid to horses that you knew

[Link]

about by the owners?

[Link]

were named after cars, Mr. Piloto.

There were others that worked there, but I was

But through my work.

And I believe I misspoke.

And what is yours?

I believe your testimony was out of your pocket, a

Well, in Mexico, because it was in Mexico that I handed that

I guess my question is, do you know how much overall "40" or

The total for 2010 was the million and a half I paid.

And when you say you paid a million and a half, what was the

Have you ever

"Pancho" Colorado.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 147 of 249

147

[Link]

"Poncho."

[Link]

Is there a difference between your nickname and "Pancho"

[Link]

Colorado's?

[Link]

Yes.

"Pancho" is Francisco and "Poncho" is for Alfonso.

He has oil.

He has some concessions with Pemex.

That's

He has a lot of money that way.

Don't remember it, the exact.

Was "Pancho" Colorado involved in quarter horse racing?

Let's talk about Mexico first.

He had

Were you ever present when

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

[Link]

throughout the entire event, and he was there with Miguel and

[Link]

Omar.

[Link]

Any other Zeta members present during that occasion?

[Link]

It was a private event and there were all the escorts were

[Link]

there.

[Link]

the other names.

[Link]

of their people.

[Link]

When you say escorts, what do you mean by that?

[Link]

The bodyguards for "40" and "42."

[Link]

Was there any confusion whether as to who Miguel and/or Omar

[Link]

Trevino was by anyone there present?

[Link]

MR. ESPER:

Your Honor, that calls for speculation.

[Link]

THE COURT:

He doesn't.

He said, come over so you could meet "Pancho" Colorado.

No.

It was

They were the new ones that would be

Met him, greeted him, hi, how are

He talked about two or three things.

"Metro" was there, Celso was there.

He was there

Don't remember all

There were a lot of people there.

All of them

I sustain the objection.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 149 of 249

149

[Link]

then, the money would come back through Carlitos for the purchase

[Link]

of the horse.

[Link]

All of us know who "40" and "42" are.

Is that your testimony?

He was the one that raised him.

He said
He

He told all kinds of things about him, about

Talked about

When you say he talked about buying horses, were you aware

There was a real expensive horse that was for sale.

And when you say dad, is that "Pancho" Colorado?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 150 of 249

150

[Link]

Yes, sir.

[Link]

And do you know if the Defendant "Pancho" Colorado would pay

[Link]

"Fair-ias."

[Link]

Adan Farias.

[Link]

Do you know him, sir?

[Link]

Yes, sir.

I couldn't tell you, sir.

When you say threatening him, is "him" Carlitos or is "him"

Are you familiar with an

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 151 of 249

151

[Link]

Yes.

[Link]

And were you present for the conversation that was occurring

[Link]

between "40" and Adan Farias?

[Link]

Parts of it.

[Link]

And what were the discussions that you overheard?

[Link]

Just that they should train them really well, that they were

[Link]

really good horses, and truthfully, they really were good horses.

[Link]

They were some of the best bred horses.

[Link]

dreamed to be able to have those horses and train them because

[Link]

they were going to be good winners.

[Link]

Yeah.

I got an order from Omar to go pick up -- pick them

So I had one of my workers go pick

And he was the

Just so I understand your testimony, you drove Adan Farias

Not all of it but yes.

Parts of it.

Any trainer would have

Are you familiar with the trainer by the name of Paul Jones?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 152 of 249

152

[Link]

Just heard him mentioned.

[Link]

Okay.

[Link]

A lot.

[Link]

Carlos Nayen?

[Link]

Yes, sir.

[Link]

Do you know a person by the name of "Chevo" Huitron?

[Link]

Yes, sir.

[Link]

And how many times have you met "Chevo" Huitron in the past?

By who?

There where he is.

I heard of him through Carlitos that they were going to

I don't know if they ever

And when you say Carlitos, is that the person you know as

He is one of the best horse

He's the one that really makes all the other

He's a good trainer.

He's got a lot of prizes,

And when Miguel asked me who

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 153 of 249

153

[Link]

was one of the better trainers in Texas, I told him that the one

[Link]

I was hearing about most was Jones.

[Link]

Did he train any of "40's" horses?

[Link]

Yes, sir.

[Link]

And did you give him money for training any of "40's"

[Link]

horses?

[Link]

Yes, sir.

[Link]

How much?

And during that entire two-year span, was he training "40's"

Yeah.

There was an occasion when "Chevo" had a mare that

When you say, "Chevo"

When you say "they,"

I mentioned it to Omar but not the way "Chevo" had said it,
And the one that was

Now, all the money that you and "40" and "42" sent to the

THE COURT:
Q.

It's

You may.

(BY MR. GARDNER) Now, you said you mentioned or saw --

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 155 of 249

155

[Link]

strike that.

[Link]

testimony?

[Link]

I saw him.

[Link]

MR. GARDNER:

[Link]

saying --

[Link]

You met "Chevo" 30 or 40 times.

MR. ESPER:

Is that your

When you say "the man," who were

Objection, your Honor.

Calls for

speculation on the part of this witness.

MR. GARDNER:
Honor.

I think he can answer if he knows, your

I could rephrase the question.

Ask him.

Rephrase the question.

Yes, sir.

(BY MR. GARDNER) Mr. Cuellar, do you recall "Chevo" Huitron

MR. ESPER:

Objection, your Honor.

He's leading him

now.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 156 of 249

THE COURT:

He was going to.

156

answered a few minutes ago.

THE COURT:

Well, that's why I was wondering why you

But since
You

That he was owed for the race, the ten percent, and for the

MR. ESPER:

Objection, your Honor.

There's no question

here that's calling for the witness to answer.

MR. GARDNER:

He had to finish the entire answer to the

last question, your Honor.

THE COURT:

Well, I think that's probably right.

But

He's not used to being on the stand, I

(BY MR. GARDNER) Did "Chevo" Huitron ask you to ask to get

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 157 of 249

157

[Link]

his $40,000?

[Link]

MR. ESPER:

[Link]

Leading the witness.

[Link]

THE COURT:

[Link]

Carlitos had been paid and that he was delaying on paying him.

[Link]

MR. ESPER:

Nonresponsive, your Honor.

[Link]

[Link]

Yes, sir.

[Link]

Did you ever pay any expenses for the training of "40's"

[Link]

horses to Mr. Jesus Huitron?

Objection, your Honor.

It's leading.

That could I help him by telling Carlos -- by telling "40"

"Chevo" has a kind of harsh way of saying

He says things harshly, so I wasn't going to put it that

So I just said that

It's the

Is it a city?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 158 of 249

158

[Link]

No, sir.

[Link]

And has he given you his best advice on what you should do?

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

what he knows the lawyer's best advice might be.

[Link]

rephrase.

[Link]

case?

[Link]

THE COURT:

Is that an objection?

[Link]

MR. ESPER:

Yes, your Honor.

[Link]

THE COURT:

It's overruled.

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

These

Have you been represented by a lawyer during there

MR. ESPER:
relevancy.

Moment?

I'd object, your Honor.

I object to

That's hearsay, number two.

I didn't ask what he said.

It's actually speculation.

I don't know
So we'll

(BY MR. GARDNER) You followed your lawyer's advice in this

MR. ESPER:

I don't think -- that's irrelevant.

That

has no bearing on any issue in this case, your Honor.

question.

And it calls for --

It's overruled.

He may answer the

It's simple.

MS. WILLIAMS:

[Link]

MR. DEGEURIN:

[Link]

MR. WOMACK:

[Link]

MR. ESPER:

I have some, your Honor.

[Link]

THE COURT:

All right, sir.

[Link]

BY MR. ESPER:

[Link]

Yes, sir.

[Link]

Okay.

159

Let me ask that question again.

Have you followed your attorney's advice in your legal

Ms. Williams.
Your Honor, ladies and gentlemen of the

jury, I don't have any questions for this witness.

No questions.
No questions, your Honor.

CROSS-EXAMINATION

Mr. Cuellar, when you were dealing in cocaine, you were

Eagle Pass.

And you traveled back and forth between the two

LILY I. REZNIK, OFFICIAL COURT REPORTER

Like all drug dealers, yes, sir.

[Link]

Absolutely.

[Link]

were dealing drugs were the people you were dealing drugs with,

[Link]

correct?

[Link]

No, sir.

[Link]

You told lots of other people that you were dealing drugs?

[Link]

It's a small community.

[Link]

it.

Word spreads.

[Link]

automobiles at?

When you were living in Piedras Negras, did you

You basically tried to camouflage yourself into

In other words, the only people that knew you

Lots of other people, also.

People knew me.

People knew about

It's hard to hide the flow of money, the

[Link]

Okay.

[Link]

"Yes" or "No"?

[Link]

Never.

[Link]

Okay.

[Link]

told Mr. Huitron they're drug dealers?

[Link]

No.

[Link]

Okay.

[Link]

in order for him to distribute to trainers, veterinarians,

[Link]

jockeys, any horse-related expenses, correct?

No.

Well, that's when I was

From 2005 to 2011, I did not come in.

I had other people cross over to buy them.

They were

So you tried to hide the fact that you were a drug dealer

Did you ever tell Mr. Huitron you were a drug dealer?

Were you in the presence of "40" or "42" where they

"Yes" or "No"?

Now, Carlitos was the one you gave all the money to

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 162 of 249

162

[Link]

Correct.

[Link]

Okay.

[Link]

don't know exactly how, correct?

[Link]

Of course.

[Link]

Okay.

[Link]

question.

[Link]

wife owned; isn't that right?

[Link]

mine.

[Link]

Okay.

[Link]

Okay.

[Link]

told you how much the fees would be for each horse, didn't he?

[Link]

Yes, sir.

[Link]

And do you know -- and if you don't, simply say so.

[Link]

1,100?

[Link]

He charged me a thousand.

[Link]

Okay.

And you know that he distributed the money, but you

Now, whenever you saw -- let me withdraw that

Mr. Huitron actually trained a horse that you and your

Not one.

He trained eight horses, nine horses that were

And what period of time did he train those horses?

And then,

So one horse for about six or eight months and another one
Would that be fair?

Yes.

And when he -- when you took him these horses, he

Was it

And that thousand dollars -- and if you know, simply

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 163 of 249

Okay.

[Link]

No, sir.

[Link]

Did the person who you sent the money with, did he ever come

[Link]

back and say, "I paid him"?

Not for any of the breeding or insemination.

It was just

Now, veterinary bills were extra, correct?

Now, we've already established that you never told

And was there a invoice or receipt given to you for

Did you ever ask for an invoice or a receipt?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 164 of 249

164

[Link]

Yes.

[Link]

And who did you send with the money?

[Link]

A kid that here in Austin, called -- named Rufino who

[Link]

delivered the $20,000 I gave him.

[Link]

bunch of horses, was it not?

[Link]

Yes, sir.

[Link]

For this six or seven horses that he was training for you,

[Link]

correct?

[Link]

No.

[Link]

The $20,000 that you sent was some guy from Austin.

[Link]

horses were those for?

[Link]

$20,000.

[Link]

that kid.

[Link]

correct?

[Link]

Yes, sir.

[Link]

That's Carlos Nayen, correct?

[Link]

Carlos Nayen.

[Link]

Okay.

[Link]

Nayen brought you money for or told you to give money for

[Link]

trainers, jockeys, veterinarians, he was the one that told you --

[Link]

gave you the instructions on how much to give everybody, correct?

[Link]

Okay.

Now, this $20,000 that you gave him, this was for a

That was for others that he had for Omar, theirs.

I don't remember.

What

All I know was that "Chevo" was owed

I was told to make the $20,000 get to him and I sent

Okay.

And Carlitos or Carlos is the one that told you that,

Yes, sir.

And as a matter of fact, all the horses that Carlos

Yes, sir.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 165 of 249

Okay.

165

[Link]

So up here, you have "40" and "42" who you claim buy

[Link]

all these horses, correct?

[Link]

Yes, sir.

[Link]

And they use -- they don't use their names to buy the

[Link]

horses.

[Link]

Not them nor I when we buy.

[Link]

Okay.

[Link]

correct?

And then, you got another buffer, who is Carlos, and

He came to Mexico to get the 16,000 I owed him from my

That's money he had earned.

You're saying he came to Mexico to get $16,000 from you for

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

[Link]

Yes, sir.

[Link]

Okay.

[Link]

20 or 30 times.

[Link]

we would see each other in Monclova, San Buena, and some of the

[Link]

tracks in Coahuila.

[Link]

This is ten, twelve years ago; isn't that right?

[Link]

Yes, sir.

[Link]

That's when you first came to know them, back in the early

[Link]

2000s, correct?

[Link]

Yes, sir.

[Link]

Okay.

[Link]

It was in 2010.

[Link]

2010.

Now, did you see -- you said you saw them in Mexico
Was these at match races?

This was before the Zetas were in control of Coahuila, and

And he trained some of your horses in 2011, before

Or 2010?

When did this statements -- when was the statement

I'm owed

And where was it made?

Okay.

[Link]

Yes, sir.

[Link]

And you never said, "I made this money dealing drugs, Mr.

[Link]

Huitron"?

[Link]

Of course not, sir.

[Link]

Thank you.

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

MR. MAYR:

[Link]

THE COURT:

[Link]

167

Where is the Maria Isabel restaurant?

That's what I

I legally owed him because he was training my

So he called you, said, can you pay me for the work I've

I talked to him.

We talk to each other pretty regularly,

And the money you paid him, cash money, correct?

That's all I have.

Wait a minute.

Mr. Mayr.

I'm sorry, I skipped one.

Judge, I don't have any questions.

All right.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 168 of 249

168

[Link]

REDIRECT EXAMINATION

So let's have another question.

(BY MR. GARDNER) Is there any doubt in your mind that

MR. ESPER:

Excuse me, your Honor.

That calls for speculation.

THE COURT:

I'm going to

I believe the question was

You opened that up wider than the Grand

You may answer the question.

None.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 169 of 249

169

[Link]

(BY MR. GARDNER) Is there any doubt in your mind that

[Link]

"Chevo" Huitron knew "40" and "42" were drug dealers?

[Link]

The associates and the people that you were with when

[Link]

you were around "40" and "42," was there conversation such that

[Link]

they were aware that "40" and "42" were the leaders of the Los

[Link]

speculation again.

[Link]

Doesn't even identify them.

[Link]

trouble understanding a lot of this, but that is a speculative

[Link]

question.

[Link]

65A.

[Link]

ever received any invoices from the Defendant "Chevo" Huitron.

[Link]

MR. ESPER:

Objection, your Honor.

Calls for

speculation.
THE COURT:
Q.

It does.

I'll sustain that objection.

(BY MR. GARDNER) Did everyone -- strike that.

Zetas drug cartel?

MR. ESPER:

I'm going to object, your Honor.

That's

He's talking about all kinds of people.

MR. GARDNER:

It's conversations with coconspirators

involved in the conspiracy, your Honor.

MR. ESPER:

That wasn't the question, your Honor.

Asking about other people that are around.

THE COURT:

Okay.

I don't think the jury's having any

(BY MR. GARDNER) Now, I'm showing you Government's Exhibit

And Mr. Esper asked you a question of whether or not you

Did you ever receive any invoices in this format that

I'm showing you right now from Government's Exhibit 65A?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 170 of 249

I didn't receive them.

170

[Link]

is Hector Moreno.

MR. ESPER:

The one who could have received them

Objection, your Honor.

If he said he

(BY MR. GARDNER) Mr. Esper asked you about the cash that you
Again, what was the name of the young

Was that $20,000 from the

When you referred to a small

Again, for the jury, what community or what city was

It's a city.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 171 of 249

171

[Link]

everyone knew you were a drug dealer, do you believe that was

[Link]

your reputation in that community?

[Link]

Yes.

[Link]

Do you

Did he submit expenses to the

He would say, I'm owed so much.

And we knew already that if

So I guess my question was, did he submit his expenses for

MR. ESPER:

THE COURT:

Objection, your Honor.

Objection is overruled.

I think he needs to

The witness may

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 172 of 249

172

[Link]

answer.

[Link]

Carlitos.

[Link]

was handling the payment, Carlitos would show me the expenses, I

[Link]

would show them to "42" and say, this is what's being -- these

[Link]

are the expenses and it was hundreds of thousands of dollars.

[Link]

in cocaine?

[Link]

No, sir.

[Link]

Any other

questions?

No, your Honor.

Now.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 173 of 249

173

[Link]

RE-CROSS EXAMINATION

[Link]

BY MR. ESPER:

[Link]

I want you to tell me --

[Link]

reread.

[Link]

dealer, including Mr. Huitron.

[Link]

Yes, sir.

[Link]

You tried to keep the fact that you were a drug dealer

[Link]

hidden from people, did you not?

[Link]

people knew, people would come to me if they had a debt that they

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 174 of 249

174

[Link]

"Yes" or "No"?

[Link]

MR. GARDNER:

[Link]

THE COURT:

[Link]

told this man, "I make my money dealing drugs"?

[Link]

it could be said that they were people we trusted.

[Link]

make my money dealing drugs"?

[Link]

MR. ESPER:

[Link]

MR. MAYR:

[Link]

MR. GARDNER:

[Link]

BY MR. GARDNER:

[Link]

say that you trusted "Chevo" Huitron?

[Link]

MR. ESPER:

That goes beyond re-cross, your Honor.

[Link]

THE COURT:

Well, that's where it loomed.

[Link]

objection's overruled.

[Link]

A lot.

[Link]

(BY MR. GARDNER) To your knowledge, did "40" and "42" trust

[Link]

"Chevo" Huitron?

[Link]

Your Honor, that is asked and answered.

It is.

I sustain the objection.

(BY MR. ESPER) Did you not tell me earlier that you never

Not exactly "Chevo."

I did hide it from other people, but

Did "40" and "42" say in your presence to this gentleman, "I

Didn't say it to him.

That's all I have.
I have no questions, your Honor.
Sorry, I just want to follow up based on

translation.
RE-DIRECT EXAMINATION

Correct me if I'm wrong, Mr. Cuellar.

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

175

All I have, your Honor.

RE-CROSS EXAMINATION

THE COURT:

All right.

Anybody have any objections to

this witness being excused?

MR. GARDNER:

No, your Honor.

All right.

Members of the jury, I'll give

Use the facilities.

Let's try to be

We'll have a ten-minute recess, but first,

who's going to be your next witness?

MR. GARDNER:

THE COURT:

Your Honor, I need to converse with Ms.

I'll let the Court know.

It's either going

We'll have an hour and 15 minute before we

recess.
MR. FINN:

Judge, did you say 50 or 15?

How long are

you going tonight is my question?

THE COURT:

6:00.

It will be an hour and 50 minutes

after the ten-minute recess.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 176 of 249

176

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

(Recess.)

[Link]

(Jury present.)

[Link]

THE COURT:

[Link]

MS. FERNALD:

[Link]

(Witness sworn.)

[Link]

THE COURT:

[Link]

THE WITNESS:

[Link]

TAMMY CANIDA, called by the Government, duly sworn.

[Link]

DIRECT EXAMINATION

[Link]

BY MS. FERNALD:

[Link]

Can you tell the ladies and gentlemen of the jury what you

[Link]

do at AQHA?

[Link]

I'm the director of registration operations.

[Link]

What is the purpose of AQHA or American Quarter Horse

[Link]

Association?

[Link]

THE COURT:

All right.
All right.

The government may call its next witness.

Government would call Tammy Canida.

Tell us your full name and spell your last.

Tammy Canida, C-A-N-I-D-A.

You may proceed.

AQHA's mission is to record and preserve the pedigrees of

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 177 of 249

177

[Link]

Okay.

And when you say to preserve the pedigrees, will you explain

Owners can apply for registration and based on those

We also offer DNA testing as an extra

Can you explain to the jury what I mean by that

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 178 of 249

178

[Link]

question?

[Link]

information, such as its name and its registration number, its

[Link]

color and gender, as well as its sire and its dam and extended

[Link]

pedigree.

[Link]

show who their current owner is according to AQHA records.

[Link]

that who the parent of the horse is and all of that information,

The certificate of registration will show the horse's

It also shows any identifying markings, and it will

Information on the certificate of registration, the fact

Who certifies that?

As far as certifying, we base that on what an owner presents

Did I ask you to draw up some dummy documents so that we

Do you recognize these

The first document is a dummy document, is it not?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 179 of 249

179

[Link]

It is a certificate of registration.

[Link]

And then, B and C are actually what kind of documents?

[Link]

One of them is a lease authorization form and the other is a

[Link]

transfer report form.

[Link]

And they're blank documents, correct?

[Link]

Yes.

[Link]

MS. WILLIAMS:

[Link]

MR. ESPER:

[Link]

MS. FERNALD:

[Link]

marked or admitted as 226A.

[Link]

registration that you previously spoke about.

[Link]

title?

[Link]

Basically, yes.

[Link]

says, start name search and two million, what would that

[Link]

represent?

[Link]

No objection.

I don't have any objection.

Your Honor, the government moves to

introduce 226A, B and C for demonstrative purposes only.

THE COURT:

They're received.

(BY MS. FERNALD) I'm showing you right now what's been
This is the certificate of
Is this the car

You've got

I'm pointing to five million.

The start name search would normally be the sire's name.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 180 of 249

180

[Link]

And the two million would normally be the dam's name.

[Link]

like a date.

[Link]

Yes, it is.

[Link]

Okay.

[Link]

Yes, it is.

[Link]

And this particular horse, five million, you got two million

[Link]

and name -- start name search.

[Link]

registration numbers?

[Link]

Yes.

[Link]

If you look and then, does it go down the lineage, also?

[Link]

Yes.

[Link]

You also look down here on the bottom left-hand corner and

[Link]

you have the breeder; is that correct?

[Link]

Yes.

[Link]

Where do you get this information from?

[Link]

The breeder is based on AQHA's record as to who owned the

Okay.

I see some information underneath the horse's name

What does that date mean?

Five million.

What does that

Is a registration number unique to each horse?

Is a name unique to each horse?

Is that unique, also, with the

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 181 of 249

181

[Link]

mother at the time she was bred, and it's based on information

[Link]

provided to AQHA.

[Link]

the horse, is that based upon only information given by the

[Link]

previous owners?

[Link]

required to report the breeding to us after it occurs and before

[Link]

the baby is registered in most cases.

[Link]

application, the owner of the dam applies for registration, and

[Link]

they list and provide that information on their application.

[Link]

done sometimes?

[Link]

Yes, it is.

[Link]

Can you tell the jury about that in order to assure the

[Link]

This information right here, the mother and the father of

There are several steps involved.

A stallion owner is

And then, at the time of

And then, you also talked about the DNA testing.

Is that

We have several rules in the AQHA rule book that require

The

Then the foals from those matings must be

And to

We also hear about hip numbers, every once in a while, when

Can you tell me what hip numbers mean?

We at AQHA do not deal with hip numbers.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 182 of 249

182

[Link]

right-hand side.

[Link]

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 183 of 249

183

[Link]

AQHA events.

It may or may not be the owner.

And then, the markings are described on the horse, and

How important is this certificate of registration to a owner

Well, it shows who their horse is and shows who can conduct
It also allows them to compete at

AQHA events, we should say there's different disciplines

Can you name some different types of disciplines so

Within our competition area, we have racing and shows.

And

And are you aware of whether or not these documents,

Can you tell us a little bit about

Not just in general, I should

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 184 of 249

184

[Link]

say.

[Link]

track, which -- and that's all state-regulated.

[Link]

AQHA-regulated.

[Link]

required to be parentage-verified.

[Link]

United States with AQHA?

[Link]

the majority?

[Link]

providing the lease dates, and both the owner and the lessee must

[Link]

sign the document, and if that occurs, then we'll record it.

Horses are required to be tattooed before they can run at a

It's not

Before a horse can be tattooed, they're also

Where is the majority of the members located throughout the

Is there a region in the United States

Do you

Again, the information that's contained on this document,

Can you explain to the ladies

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 185 of 249

185

[Link]

A transfer report is if an ownership has changed for a

[Link]

horse, then the buyer or the seller will report that to AQHA, and

[Link]

Yes.

[Link]

Okay.

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 186 of 249

The owner requests that a name be changed.

186

[Link]

change?

[Link]

That's correct.

[Link]

226.

But does this number, this five million number under

Only if it starts as an appendix registered horse and then,

But to change a name or

So just if you change the name, the number is not going to

Have you had a chance to come into

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 187 of 249

[Link]

THE COURT:

[Link]

MS. FERNALD:

[Link]

THE COURT:

[Link]

MS. WILLIAMS:

[Link]

exhibit list.

[Link]

future reference.

[Link]

MS. FERNALD:

[Link]

THE COURT:

[Link]

MS. FERNALD:

[Link]

it follows in order.

[Link]

THE COURT:

[Link]

MS. FERNALD:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

MR. WOMACK:

[Link]

MS. WILLIAMS:

[Link]

MR. ESPER:

[Link]

MR. MAYR:

None, Judge.

[Link]

THE COURT:

226 is in.

[Link]

Government's Exhibit 226E.

[Link]

187

226 is business records with the affidavit?

That is correct.

Any objection?
Can you give me the Bates range of those

or not?
MS. FERNALD:

I can do so.

They'll be also on your

It will have the B number right beside it for

MS. WILLIAMS:

It doesn't have the Bates range.

Bates stamp on these are 61.

To what?
Sixty-one is the Bates stamp number and

Sixty-one on all of them?

Yes, sir.

All right.

Now, any objections?

I don't believe so.

No, your Honor.
No, your Honor.

[Link]

And I just pulled out this one and made a copy, correct?

[Link]

Yes.

[Link]

All right.

[Link]

Yes.

[Link]

Your Honor, for demonstrative purposes, the government will

[Link]

go ahead and move to admit 226E.

[Link]

MS. WILLIAMS:

[Link]

No objection.

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

(BY MS. FERNALD) Can you tell me what Exhibit 226E is?

[Link]

It is a log sheet when we have visitors at the AQHA office

[Link]

that they go inside the building, they sign in before they can go

[Link]

through the door.

[Link]

30th of this particular log date.

[Link]

The records that you submitted to the government in

And you've had a chance to review 226E, correct?

This is not on my list so.

226E is admitted as a demonstrative

exhibit.
No objection, your Honor.

Okay.

It's still admitted.

Must have been something I said.

I want to direct your attention to the date of January the

Okay.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 189 of 249

189

[Link]

The line that I'm pointing to right here.

[Link]

Uh-huh.

[Link]

All right.

[Link]

BY MS. WILLIAMS:

[Link]

transfer report.

[Link]

Yes.

[Link]

Now, the prosecutor asked you about this and asked you about

[Link]

someone sending or bringing a transfer report in to AQHA.

[Link]

Yes.

[Link]

Sometimes, though, isn't the transfer report sent to you

[Link]

from a race track?

[Link]

Yes.

[Link]

All right.

Pass the witness, your Honor.

CROSS-EXAMINATION

I'm showing you, again, this Demonstrative Exhibit No. 226C,

Describe that situation to the jury, if you

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 190 of 249

190

[Link]

will.

[Link]

transfers that they collected in their office for us to process

[Link]

and send back to them.

[Link]

qualifying and the actual race or, for whatever reason, a horse

[Link]

will get transferred from one owner to another owner at the race

[Link]

track.

[Link]

The transfer is not recorded at the race track, no.

[Link]

I understand that.

Occasionally, the race track will send us groups of

And so, sometimes a horse owner in between maybe a

But the --

The horse may have been sold and they may have allowed

That's a bad question.

Sometimes a horse is sold close to

Yes.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 191 of 249

191

[Link]

the horse can't then bring it to AQHA.

It has to get sent to you

[Link]

from the race track.

[Link]

owner, then the owner can bring it to us.

[Link]

transfer without the original certificate of registration and the

[Link]

transfer report.

[Link]

be --

[Link]

shows its basic course information and the summary of its race

[Link]

record.

[Link]

All right.

[Link]

Yes.

[Link]

-- described.

[Link]

Yes.

[Link]

All right.

[Link]

Yes.

[Link]

Official race record according to AQHA?

You don't know?

Not necessarily.

The race track gives it back to that

We're not going to

And as far as who brings that to us, it could

Give me just a second, your Honor.

I'm showing you out of that -- the documents that were

Yes.

One of them shows

And the other one

So 349 is the first thing you --

A history of the horse owner?

And the second one is its race record?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 192 of 249

192

[Link]

Yes.

[Link]

Yes.

[Link]

And this is the same information that's on the registration

[Link]

certificate?

[Link]

That's correct.

So this part where my finger is?

That means that DNA was

That means he has a DNA type on file.

All right.

And the fact that

And parentage-verified is the same as saying

It means we compared its DNA type to its parents.

Having
It

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 193 of 249

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

MR. WOMACK:

[Link]

MR. ESPER:

[Link]

MR. MAYR:

[Link]

THE COURT:

[Link]

BY MS. FERNALD:

[Link]

registration.

And at the bottom, this lists the various owners that this

It shows what races the horse has raced in, what his

Mr. DeGeurin, any questions?

No.

I have none.

No, your Honor.

I have none, your Honor.
Neither do I.
Any redirect?
REDIRECT EXAMINATION

On the transfer form report that we just showed you and on

LILY I. REZNIK, OFFICIAL COURT REPORTER

[Link]

Now, you also report on these types of forms the date in

[Link]

which the form was actually completed versus the day which you

[Link]

Yes.

[Link]

I'm going to show you what has come out of the box as 226D.

[Link]

Do you recognize that?

[Link]

Yes.

[Link]

Okay.

[Link]

Yes.

[Link]

For demonstrative purposes, move for the admission of 226D.

On this document you're showing me now, that is the date

Did we go over this form prior to your testimony?

Yes.

[Link]

Okay.

[Link]

on there in reference to the question.

[Link]

purchase date, the CMO date, and the complete date that's at the

[Link]

That's correct.

THE COURT:

Okay.

I don't really have an objection, but

So she doesn't have to go to that big box

Perfectly not confusing.

That's what

226D is admitted for demonstrative purposes.

(BY MS. FERNALD) Ms. Canida, have you seen this document
I'm sorry.

Yes.

I was asking you about the dates that are contained

Can you tell me about the

The purchase date is the date that was listed as the

The CMO

And then, completion date is the date we actually

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 196 of 249

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

MR. DEGEURIN:

[Link]

MR. ESPER:

All right.

[Link]

THE COURT:

You may be excused, ma'am.

[Link]

(Witness sworn.)

[Link]

THE COURT:

[Link]

THE WITNESS:

[Link]

THE COURT:

[Link]

BY MR. GARDNER:

[Link]

Yes.

[Link]

If you will, could you please introduce yourself to the

[Link]

jury?

[Link]

what you do for a living.

196

Pass the witness.

Nothing further.

May this witness be excused, counsel?

Yes, sir.

Call your next

witness.
MR. GARDNER:

Your Honor, the government would call Mr.

Russell Stooks.
THE COURT:

Come forward, please.

This is Mrs. Sims.

She's going to administer an oath to you.

Tell us your full name and spell your last,

please.
Russell Stooks, S-T-O-O-K-S.

You may proceed.

[Link]

Lucky 7 Ranch.

[Link]

And how long have you been involved with quarter horses?

[Link]

Approximately 20 years.

[Link]

And when I say involved with quarter horses, could you

[Link]

explain that a little bit more to the jury, the length or, I'm

LILY I. REZNIK, OFFICIAL COURT REPORTER

[Link]

what are the major auction houses here in the United States?

[Link]

three major ones are for quarter horses are the Ruidoso horse

And there are even a couple of other smaller ones.

Are the most valuable horses, the most sought-after horses,

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 199 of 249

199

[Link]

are they generally sold at the three bigger sales?

[Link]

of the three big ones, has the most expensive horses and then,

[Link]

Heritage Place probably second and then, the Pacific Coast sale

[Link]

third.

[Link]

yearly sale and they all go in the same order every year?

[Link]

Yes.

[Link]

So with respect to Mr. Villarreal, what interaction did you

[Link]

have with him at these horse auctions?

[Link]

and he was always there buying horses.

[Link]

for?

[Link]

would buy horses and then, take them to Mexico and sell them,

[Link]

what they would call in the industry maybe pen-hook them, buy

[Link]

them and resell them to people.

[Link]

Mexico?

[Link]

No.

[Link]

And was there an occasion when Mr. Villarreal approached you

[Link]

about buying some horses from you?

[Link]

remember if it was the Ruidoso sale or the Heritage sale, he

Yeah.

I would say that probably Ruidoso, which is the first

So is there -- every year, these same auction houses have a

Uh-huh.

Oh, just, you know, just to talk to him for a few minutes,

And were you aware of his clients who he was buying horses

No.

He was just -- he was kind of known as a broker that

And were you aware of any of the people he was selling to in

Huh-uh.

Probably a number of occasions but in 2008 -- and I don't

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 200 of 249

200

[Link]

asked me what we had for sale.

We had some that were actually in

[Link]

Oklahoma.

[Link]

15,000.

[Link]

THE COURT:

[Link]

THE WITNESS:

[Link]

Villarreal paid you that horse?

[Link]

Yeah.

Cash.

[Link]

[Link]

September 2009.

So we told him that what we had and told him to go

He looked at them and he actually bought two of them.

The name was what, sir?

Blues Man Can.

(BY MR. GARDNER) And do you recall the manner in which Mr.

Does that reflect the receipt of payment for

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 201 of 249

201

[Link]

another horse purchased by Mr. Villarreal?

[Link]

Yes.

[Link]

Your Honor, I would offer Government's Exhibit 241.

[Link]

MS. WILLIAMS:

[Link]

MR. ESPER:

No objection, your Honor.

[Link]

THE COURT:

241 is admitted.

[Link]

first.

[Link]

purchase of Blues Man Can; is that correct?

[Link]

Yes.

[Link]

And what's this number right here, sir?

[Link]

That would be the horse's registration number on -- it's

[Link]

AQHA, American Quarter Horse Association's registration number

[Link]

that's assigned to the horse.

[Link]

just generally?

[Link]

Yeah.

[Link]

And did you ever come to know that Blues Man Can's name was

[Link]

ever changed?

[Link]

Yeah.

[Link]

And do you recall the name of the horse as it is now?

[Link]

Blues Ferrari.

[Link]

was changed after I sold the horse.

[Link]

Man Can?

No objection.

(BY MR. GARDNER) Mr. Stooks, I want to talk about this

A receipt that's a receipt for $15,000 cash for the

And, sir, do you remember the bloodlines for Blues Man Can,
Were they good bloodlines in your opinion?

They were excellent.

It was brought to my attention that it was changed.

I didn't -- I didn't change the name.

That

So when you sold it to Mr. Villarreal, you sold it as Blues

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 202 of 249

202

[Link]

Yes.

Correct.

[Link]

Do you know whether Mr. Villarreal changed the name or

[Link]

someone else?

[Link]

know.

[Link]

Yes.

[Link]

And do you recall what the amount of winnings this horse had

[Link]

over the course of its racing career?

[Link]

No.

[Link]

When you say it wasn't much, $100,000 or --

[Link]

Oh, no.

[Link]

Less than 10,000?

[Link]

Maybe around 20, I think --

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

I don't know who he sold the horse to, so, you know, I don't

Sir, do you generally keep track of the horses that either

Yeah, we pay pretty close attention.

We keep them in what's

So most of our babies that we

Uh-huh.

Wasn't much.

I don't think so.

Object to speculation.

What now?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 203 of 249

203

[Link]

MS. WILLIAMS:

Speculation.

[Link]

THE COURT:

[Link]

THE WITNESS:

[Link]

horse industry, if you were to buy that horse for $15,000, it

[Link]

were to win $20,000 over its racing lifespan, what would you

[Link]

estimate the value of that horse?

[Link]

MS. WILLIAMS:

[Link]

answer.

[Link]

but you recall, after you and I talked, that this was another

He's answered around 12,000.

No.

(BY MR. GARDNER) 20,000.

Around 20,000 I think.

Based on your experience in the

Object to speculation and lack of

foundation.
THE COURT:

Okay.

That objection's overruled.

You may

That particular horse was sold -- he actually bought

So based on what I

Now, I want to turn your attention to the other horse that

And you don't put the horse's names on here,

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 204 of 249

204

[Link]

horse that Ramiro Villarreal purchased?

[Link]

Yes.

That's correct.

He actually picked it up, the horse up at the breeding farm

Could you explain the circumstances around the sale of that

Yeah.

That horse, we had it paid into sale in the fall.

They have the sale in Pacific

That horse was paid into that sale.

And

But prior to going into sale, the fellow that was

So we went ahead and had the horse X-rayed, and the

So what we did is if a horse X-rays that

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 205 of 249

205

[Link]

So what we did is we scratched it out of the sale.

[Link]

into a sale, is that horse then put in the sales booklet, the

[Link]

publication?

[Link]

that Pacific Coast sale, the sale is early October but probably

[Link]

by June 1st, prior to June.

[Link]

you have to have the horse entered, pay the entry fee into the

[Link]

sale, and then, they go ahead and you send the papers in, the

[Link]

registration papers, the transfer papers for the horse.

[Link]

then, they do a background check on, you know, the breeding

[Link]

lines, and whatever.

[Link]

and that horse is assigned a sale number, and it's listed in the

[Link]

sale catalog.

[Link]

hip number?

[Link]

Yes.

[Link]

Is this horse Blues Girls Choice entered into that Pacific

[Link]

Coast sale?

[Link]

Yes.

[Link]

And then, you told the ladies and gentlemen of the jury that

[Link]

you had withdrawn because of the juvenile arthritis?

[Link]

the sale, anyway, so we took it out of the sale.

[Link]

taking it to the sale and paying the expense to get it from Texas

So just so the jury understands, when a horse is entered

Yeah.

That's correct.

In other words, as an example for

So four or five months before that,

And

And then, they come up with a sale book,

You say sale number.

Is that also commonly referred to as

It's a hip number.

Uh-huh.

That's correct.

When we found out that we knew we couldn't sell it so we -Instead of

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 206 of 249

206

[Link]

to California, paying consignment fees at the sale, and so on, it

[Link]

was better off just to take it out of the sale.

[Link]

little bit.

[Link]

prepping that horse for auction?

[Link]

Lazy E Ranch has a service where they will -- you can consign

[Link]

your horse with them, they will take it to the sale for you.

[Link]

they may have, you know, 50, 60 horses consigned with them, so as

[Link]

buyers come up to want to see the horses, then, you know, they'll

[Link]

And so, knowing what you knew about this particular horse,

[Link]

Blues Girls Choice, was that the reason you withdrew it from that

[Link]

sale?

[Link]

so we go in all the expense of getting it out there and probably

[Link]

end up bringing it right back.

You mentioned two fees.

No.

So I'd like to break that down a

You said the Lazy E Ranch was responsible for

Actually, it was being prepped in College Station, but

And

If they keep him groomed up, then they take him

Usually I

So, for example, if you had a $100,000 horse that went to

The reason we withdrew it was because we knew it was X-rayed

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 207 of 249

207

[Link]

And did Mr. Villarreal approach you after you withdrew from

[Link]

that sale?

[Link]

farm where the horse was at and because I think he had horses

[Link]

there and he asked them about the horse and he -- they asked what

[Link]

we wanted and he told them and they bought the horse.

[Link]

And did you attend that Pacific Coast sale that year?

[Link]

Yes.

[Link]

Okay.

[Link]

Yes.

[Link]

All right.

[Link]

at that sale?

[Link]

Yes.

[Link]

And whose name was it being auctioned under?

[Link]

I think it was still consignment in my name because we were

[Link]

shocked.

[Link]

said, you know, we're taking the horse out of the sale.

[Link]

Ramiro bought the horse from us, he ended up picking it up and

He didn't approach me.

He actually went by the breeding

And was this horse --

And both horses we sold, they got the X-ray

My next question, did you eventually attend that particular

Did you see Blues Girls Choice being auctioned

I mean, we called the sale when we scratched it out and

After

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 208 of 249

208

[Link]

having it vanned all the way direct to the sale, and it was kind

[Link]

of a shock to everybody.

[Link]

consignment because we told them we were taking the horse out of

[Link]

sale.

[Link]

sale.

[Link]

in?

[Link]

Poor condition.

[Link]

And what --

[Link]

The horse was -- actually, when he picked it up from the

[Link]

breeding farm, the horse had actually had a temperature and was

[Link]

sick.

[Link]

Yeah.

Especially like Lazy who had a

We had no idea that he was going to take the horse to the

And when the horse got to sale, what condition was the horse

And you said earlier that a consignment service will take

What do you mean by taking the horse out

Well, you could pitch your sales.

So there's hundreds of

So buyers will go by

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

MR. GARDNER:

[Link]

correct?

[Link]

That's correct.

So I don't know who him and some other -- other

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 210 of 249

210

[Link]

individuals.

And I think that after the sale was complete, the

[Link]

Pacific Coast yearling sale -- the lady there called me and asked

[Link]

me -- she said --

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

[Link]

Objection.

Hearsay.

Sustained.

(BY MR. GARDNER) What she's talking about there, Mr. Stooks,

Okay.

Just what

Well, the lady at Pacific Coast yearling sale -THE COURT:

Just wait for the question.

The lawyers

They'll make it easier for you.

(BY MR. GARDNER) In your opinion, the price he paid for that

MS. WILLIAMS:

I'm going to object to this witness

I object to opinion testimony from this

MR. GARDNER:

He's a lay witness, your Honor.

That's

the opinion we're eliciting from him is his experience.

Not as

[Link]

an expert.

[Link]

objection.

[Link]

(BY MR. GARDNER) Would you like me to repeat the question?

[Link]

No.

THE COURT:

He's in the business.

I'll overrule the

You may answer.

The horse was not worth $135,000.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

[Link]

sell a horse, you don't always go to sell it yourself; is that

[Link]

correct?

[Link]

That's correct.

[Link]

Sometimes you consign it to somebody else?

[Link]

Yes.

[Link]

When you want to buy a horse at an auction, do you always go

[Link]

and bid yourself?

[Link]

If I want to buy one, yes.

[Link]

Okay.

[Link]

No.

[Link]

Why not?

[Link]

I don't know.

[Link]

Okay.

[Link]

Is that your experience?

[Link]

Yes.

[Link]

Okay.

[Link]

too busy, they don't want anybody to know who's bidding on the

CROSS-EXAMINATION

That's correct.

Does everybody do that?

You'd have to ask them.

I don't know.

Some people send an agent to bid for them at auction.

I think so.
And that could be for variety of reasons.

They're

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 212 of 249

212

[Link]

horse, right?

[Link]

That's correct.

[Link]

All right.

[Link]

Villarreal bought that horse for himself or for somebody else at

[Link]

Pacific Coast?

[Link]

No.

[Link]

I don't have anything further.

[Link]

MR. DEGEURIN:

[Link]

MR. WOMACK:

[Link]

BY MR. WOMACK:

[Link]

Exhibit 241.

[Link]

Okay.

[Link]

If you'll look at each of these receipts, does the name

[Link]

Ramiro Villarreal appear anywhere where it says, received from?

[Link]

No.

[Link]

What it says is Mexico agent?

[Link]

That's correct.

[Link]

And when you said Mexico agent, are you referring to Mr.

[Link]

Villarreal?

[Link]

That's correct.

[Link]

So you believe he was an agent for someone and not buying it

[Link]

for himself?

[Link]

And you don't know, do you, whether or not Mr.

I don't know that.

No, your Honor.

Your Honor, very briefly.

CROSS-EXAMINATION

I want to talk to you a little bit about Government's

Yeah.

That's the same exhibit you have on your screen.

I think that he -- that's kind of how we knew he

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 213 of 249

213

[Link]

would buy horses at the sale and then, come back to Mexico and

[Link]

sell them.

[Link]

ranch, right?

[Link]

No.

[Link]

Where did it happen at, these sales?

[Link]

The first one would have been in Oklahoma -- or, excuse me,

[Link]

northern Oklahoma and the second one was in College Station.

[Link]

Station?

[Link]

Yeah.

It's a horse breeding and boarding.

[Link]

Okay.

And so, what would happen at, for example, the one in

Okay.

So if someone comes -- this was at your farm, your

That's not right.

Okay.

And what facility were these horses at in College

Was it just a stable?

You would meet the buyer or someone at the

And you told us in one of these, Blues Man Can.

I maybe know where I'm looking.

That was Ramiro.

But that

In other words, when he looked at the

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 214 of 249

214

[Link]

Okay.

[Link]

fall of 2008 and paid for it in February of 2009, you mean there

[Link]

was a meeting of the minds between you and Mr. Villarreal in the

[Link]

fall of 2008 that told you he was buying the horse?

[Link]

Yeah.

[Link]

And you told all of us that that's when you sold the horse

[Link]

was fall of 2008?

[Link]

But I

So from fall of 2008 until February of 2009 when you got the

Yeah.

And so, who was paying for that horse while it was

So when you're telling us that you actually sold the

I didn't transfer any papers, any -- in other words,

I gotcha.

But that didn't happen until

So when you told the jury that he bought it in

He told me he was buying the horse.

Uh-huh.

Well, I guess if you want to say the sale was not complete

LILY I. REZNIK, OFFICIAL COURT REPORTER

[Link]

And that's when you actually gave him the paperwork where he

[Link]

could register the horse in his name?

[Link]

That's correct.

[Link]

And, in fact, when you did this, did you fill out a transfer

[Link]

report form?

[Link]

you give the buyer the registration papers and the transfer.

[Link]

at a blank transfer report form?

[Link]

Yes.

[Link]

When you sell the horse as the seller, do you fill out any

I understand.

And, believe me, I'm not trying to trick you.

In your mind, when you met with Mr. Villarreal in

Yeah.

In other words, when you sell a horse, you have --

And as the seller of the horse, we've had a chance to look

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 216 of 249

216

[Link]

paperwork -- excuse me.

Do you fill out any of the blanks on the

[Link]

transfer report form?

[Link]

As the seller, you fill out the seller section.

[Link]

Okay.

[Link]

Correct.

[Link]

And in the case of this particular horse, Blues Man Can, you

And so, you would fill out the seller portion of the

Yes.

And we take the transfer and the horse registration

And you're telling us that's how one would do it?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 217 of 249

217

[Link]

Correct.

[Link]

In this case, you don't know what was done yourself, do you,

[Link]

after you hand over the paperwork to the buyer?

[Link]

No.

[Link]

Okay.

[Link]

him on the receipt a Mexico agent, do you know if he was going to

[Link]

register the horse in his name or possibly a buyer's name?

[Link]

No.

[Link]

No further questions.

[Link]

BY MR. ESPER:

[Link]

of years prior to 2009?

[Link]

him.

[Link]

word you used, for buying horses for other people?

[Link]

Yes.

[Link]

Okay.

This is the first time that he directly bought a

I think he may have bought horses -- some of my

And I believe you knew that at least when you put on the

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 218 of 249

218

[Link]

receipt he was a Mexican agent, was that at your doing or at his

[Link]

request?

[Link]

No.

[Link]

Okay.

[Link]

did you not?

[Link]

Yes.

[Link]

Okay.

[Link]

himself or someone else who was from the Republic of Mexico,

[Link]

correct?

[Link]

No.

[Link]

Okay.

[Link]

Villarreal $15,000 cash, you just made it to cash $15,000 and you

[Link]

omit his name, correct?

[Link]

Correct.

[Link]

Okay.

[Link]

there, Mr. Stooks?

[Link]

It was my doing.
So you knew that he was from the Republic of Mexico,

And that you knew that he was representing either

Well, I knew he was representing himself and/or, you know,

Okay.

No.

Whose decision was it to make the receipt out to cash

Did you do that at your own volition or did he

Those are my records.

So instead of making the receipt out to Ramiro

There wasn't any sinister purpose for that, was

Before just a month or so ago, I didn't even realize

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 219 of 249

[Link]

that his last name is Villarreal.

[Link]

Okay.

[Link]

Yes.

[Link]

Okay.

[Link]

That's correct.

[Link]

Not a cashier's check?

[Link]

No.

[Link]

No.

[Link]

Okay.

[Link]

cash, correct?

[Link]

In small amounts.

[Link]

Yeah.

[Link]

amounts, 15,000 to some people is a big amount.

219

You just knew him as Ramiro?

And he paid you with $15,000 in cash, correct?

He -- cash.

I don't.

And if you don't know,

You know, cash.

Do you remember if it was banded

Oh, I think it was in the -- on the one horse it was just in

Okay.

And did you find that -- did you draw any suspicion

It's not unusual in the horse business.

It's not unusual in the horse business to deal in

And it's not -- and we're talking when we say small

But for a horse,

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 220 of 249

220

[Link]

it's probably not a big amount, is it?

[Link]

No.

[Link]

Okay.

[Link]

horse and someone buys it from you and pays you in cash 15,000.

[Link]

Correct.

[Link]

Not unusual at all?

So maybe since I've been doing this for the last 20

Yeah.

Of course.

And did Mr. Villarreal -- again,

I didn't give him a receipt.

LILY I. REZNIK, OFFICIAL COURT REPORTER

[Link]

No.

[Link]

Okay.

[Link]

MR. MAYR:

[Link]

THE COURT:

[Link]

BY MR. MAYR:

[Link]

want to ask a few questions about these records.

[Link]

Is this some kind of duplicate form that you have

Yes, exactly, and then, I just put the compilation together

Okay.

And so, this is actually your carbon, the bottom part

Okay.

So, in other words, you made out the receipt

Sure.

And he wasn't there to want it, was he?

That's all I have, your Honor.

Briefly, your Honor.
Yes, sir.
CROSS-EXAMINATION

Good afternoon, Mr. Stooks.

My name is Brent Mayr.

I just

You testified you actually made out these receipts; is

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 222 of 249

222

[Link]

that correct?

[Link]

Yes.

[Link]

No.

Do you have other employees or

I do all that myself.

Okay.

And, of course, these aren't --

Or do you use some sort of software, like

We just -- it's not that big of a business, so it's

All hands records.

Nothing further, your Honor.

Thank you.

RE-DIRECT EXAMINATION

Mr. Stooks, when you say small amounts, what would be a

Large amount to be paid in cash?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 223 of 249

223

[Link]

Yes, sir.

I don't know who sold it.

[Link]

Were you aware that Blues Girls Choice was sold at the

[Link]

November 2011 Heritage Place auction by Jose Trevino?

[Link]

about $20,000?

[Link]

Same answer.

I mean, the most that I've ever been paid

I don't know who consigned

I was aware it was sold, but I don't know who

And with respect to Blues Ferrari, were you aware the sale

No.

I know it was a substantial amount, but I don't know

When you say substantial amount, you testified earlier that

Well, that's all I would pay for it.

I mean, in fact, I

But I mean.

And if I recall your testimony, you said the winnings were

Yeah.

In that range.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 224 of 249

224

[Link]

And when you say that you were aware that Blues Ferrari went

[Link]

to the January 2011 Heritage Sale for substantially more, can you

[Link]

give us a range of what you mean when you say substantially more?

[Link]

MS. WILLIAMS:

[Link]

THE COURT:

May this witness be excused, counsel?

[Link]

MR. ESPER:

No objection.

[Link]

MR. MAYR:

[Link]

MR. WOMACK:

[Link]

THE COURT:

MS. WILLIAMS:

Object to speculation.

Said he didn't

know.
MR. GARDNER:

He said substantially more.

I'm just

It was in the hundred-thousand -MS. WILLIAMS:

THE COURT:

I'm sorry, Judge.

I'll overrule the objection.

What was the answer again?
I'm not sure what it was.

No more questions.

No objection.
No objection.
You may be excused, sir.

Call your next

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 225 of 249

[Link]

THE COURT:

[Link]

administer an oath to you, sir.

[Link]

(Witness sworn.)

[Link]

THE COURT:

[Link]

BY MR. GARDNER:

[Link]

correct?

[Link]

Yes, sir.

[Link]

Yes, sir.

225

witness.
MR. GARDNER:

Your Honor, we would call Jose Vasquez,

Jr.
This is Mrs. Sims and she's going to

Tell us your full name, please, sir, and

spell your last.

THE WITNESS:
THE COURT:

Jose Luis Vasquez, Jr., V-A-S-Q-U-E-Z.

You may proceed.

JOSE L. VASQUEZ, JR., called by the Government, duly sworn.

DIRECT EXAMINATION

Thank you, your Honor.

Now, Mr. Vasquez, you and I have met before; is that

My name is Jose Luis Vasquez, Jr.

Tell them

I'm from Dallas, Texas

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 226 of 249

All right.

226

[Link]

Have you pled guilty to a federal narcotics

[Link]

offense?

[Link]

Yes, sir.

[Link]

Can you tell the ladies and gentlemen of the jury what that

[Link]

offense was?

[Link]

All right.

[Link]

judge?

[Link]

I don't remember.

[Link]

And have you received any type of credit for any previous

[Link]

testimony?

[Link]

Yeah.

[Link]

And that's the motion that the government files to reduce

[Link]

your sentence?

[Link]

Yes.

[Link]

And where is your case, your case out of?

[Link]

Dallas.

[Link]

Dallas.

What was the sentence you received from the

It was 156 or 160 months.

I got a 5K1 departure, I believe it's called.

Is that the Eastern District of Texas?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 227 of 249

227

[Link]

Yes.

[Link]

Again, is that federal court?

[Link]

Yes.

[Link]

And have you testified in other trials before today?

[Link]

Yes, sir.

[Link]

Can you tell the jury what kind of trial that was?

[Link]

It was also in a conspiracy to distribute cocaine.

[Link]

And did that involve individuals that you had dealt with in

[Link]

the past on dealing cocaine?

[Link]

Yes.

[Link]

And what is your hope here today that your testimony will do

[Link]

for you?

[Link]

though.

[Link]

Judge Sparks.

[Link]

Yes, sir.

[Link]

And do you know that judge's name?

[Link]

Judge Crone.

[Link]

And could you let the jury know when you first started

Out of St. Louis.

I would hope that

I don't know if I will get one or not,

And you know that decision isn't based on either myself or

It's up to the judge in Plano.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 228 of 249

228

[Link]

Yes, sir.

[Link]

And if we get to recent past, how much cocaine was the most

[Link]

A thousand grams.

I don't think the jury's probably ever heard of a nickle

Can you explain that to them?

Towards the end.

Thank you.

Is that 2.2 pounds?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 229 of 249

229

[Link]

Yes.

[Link]

And just so the jury has some reference, how much does a

[Link]

single kilogram of cocaine cost on the streets of Dallas, Texas?

[Link]

When I was there, it was about 23,000.

[Link]

$23,000?

[Link]

Uh-huh.

[Link]

And so, how much would you have to pay for a thousand

[Link]

kilograms of cocaine?

[Link]

For the total amount?

[Link]

Total amount.

[Link]

I was paying about 21.5 million.

[Link]

And sorry.

[Link]

which you received a thousand kilograms and then, get rid of it?

[Link]

I was doing it monthly.

[Link]

Monthly.

[Link]

cocaine, that 21.5, was that what was owed to your supplier?

[Link]

Yes, 21.5.

[Link]

And how much would you make in profit from that thousand

[Link]

kilos?

[Link]

I would profit anywhere between 800 to 1.2 million.

[Link]

Per month?

[Link]

Yes, sir.

230

[Link]

Yes.

[Link]

And who is he, sir?

So when you say it was more than a thousand keys, who else

They had other clients that they would send me more extra

And so, when you say extra work, when you say the term

More cocaine.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 231 of 249

231

[Link]

Now, were you responsible for paying for the full amount or

[Link]

just your portion?

[Link]

Just my portion.

[Link]

Kaufman, Texas?

[Link]

Yes, sir.

[Link]

And were you responsible for collecting the money that went

[Link]

to these other customers of Hector Moreno?

[Link]

Sometimes.

[Link]

Then when you selected that money, were you responsible for

[Link]

bundling it up, counting it?

[Link]

what it was and prepare it and send it back down to them -- back

[Link]

to Mexico.

Once I had it in my possession, I was like a -- like a

Well, we were working everywhere in Dallas, Fort Worth,

Sometimes I would, sometimes I wouldn't.

Whenever I collect it from them, I would count it, make sure

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 232 of 249

232

[Link]

And do you know who the leader of the Los Zetas is?

[Link]

Yeah.

How would you rig it so it

We would put three vacuum-sealed bags -- put three

And did you ever lose any deliveries of cash going to Mexico

Who is responsible for that?

Once it was out of my hands, it was their responsibility.

At the time it was Lazcano and "40" was his

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 233 of 249

233

[Link]

second-in-command.

[Link]

When you say BB, that's a term that you and I understand.

So I left to Mexico to try to avoid custody.

And what prompted you to return to the United States to turn

I was tired of being on the run.

And the DEA law

And did you cooperate with the DEA in assisting them finding

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 234 of 249

234

Their messenger number, ID PIN

You say BB number, then you say PIN.

What specifically does

We send instant messaging, like a text message, but it's

And who's responsible for -- let me start over.

Would you do what they call dropping phones?

I had

And what type of phones would you guys use to conduct your

In Dallas, we would use all phones from Metro PCS to AT & T.

It was always different.

And how would you get the phones?

Just go to a regular

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 235 of 249

235

[Link]

store and buy them?

[Link]

Yes, sir.

[Link]

Would you put them in your name for subscriber information?

[Link]

No.

[Link]

And so, when you were conducting your business on the BBs,

[Link]

as you call them, the BlackBerrys, did you conduct your business

[Link]

on the BlackBerrys with Hector Moreno?

[Link]

Yes, sir.

[Link]

And so, how would you exchange your PIN numbers if you're

[Link]

dropping the phones every two weeks?

[Link]

would switch up, I would send my BB PIN number back to one of his

[Link]

brothers when they would take the money back down to Mexico.

[Link]

Mexican tel-cells?

I had different people go buy them for me.

We would be sending money back every week, so every time we

Did you ever receive any phones from Mexico, they call

No.

I had them when I was down there, but I never got them

I'd like to turn your attention to horses.

Do you know

Not really.

Hector would send it through a BB.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 236 of 249

236

[Link]

And, again, Hector Moreno is "Poncho" Cuellar's assistant?

[Link]

Yes, sir.

[Link]

Yes, sir.

[Link]

Balch Springs?

[Link]

Uh-huh.

[Link]

Could you please tell the ladies and gentlemen of the jury

[Link]

what funds you delivered or amount of funds you delivered on that

[Link]

occasion?

I don't recall, but it was 100 or 200,000.

I don't recall

I learned his name was Jose Trevino, but I didn't

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 237 of 249

237

[Link]

And then, 100, $200,000, or that range, did you know what

[Link]

specific expenses were going to be paid with that money?

[Link]

No, sir.

How many deliveries do you

I mean, we took him one time, I think, like 60

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 238 of 249

238

And were you told what these specific cash drops were being

to make out to New Mexico.

[Link]

Yes, sir.

[Link]

Can you tell the jury about a delivery of cash for horse

[Link]

expenses to Mexico?

[Link]

"Poncho" Cuellar?

[Link]

Uh-huh.

[Link]

And did you ever meet this gentleman or did someone -- one

[Link]

of your runners give him the money?

[Link]

Mexico.

[Link]

him.

[Link]

My cousin made the delivery.

I'm

Now, I want to talk about a delivery that you were directed

Do you recall that?

Hector told me that he needed $110,000 to give to -- we used

I think they had a horse that was

You used a term here.

Is what, "Pariente"?

I think they said it was family

I met him myself before because he also took money back to

So on one occasion, he took money back to Mexico, I met

So you knew him as a runner before from Hector to Mexico?

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 240 of 249

240

[Link]

Uh-huh.

Yes, sir.

Were you ever directed to send cash for the

I was instructed to send money to buy, I think it was, two

I know it was about the first

And do you recall the name of the individual who was going

No.

My father took it to him, so I don't know.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 241 of 249

241

[Link]

money?

[Link]

we've ever met, have we?

I wasn't aware of none of that.

That was the only money I had for them.

pose, and if I'm confusing or you don't understand, you let me

[Link]

know, okay?

[Link]

Yes, sir.

[Link]

Great.

[Link]

your first rodeo, is it?

[Link]

No, sir.

[Link]

Tell the members of the jury about the other sentence that

[Link]

you have, the TDC state prison sentence.

[Link]

cocaine.

[Link]

And you got a 15-year sentence, right?

[Link]

Yes, sir.

[Link]

But you paroled out early, didn't you?

[Link]

Yes, sir.

[Link]

But you understand in the federal system, unlike the state

[Link]

system, there's no such thing as parole.

[Link]

right?

[Link]

Yes, sir.

[Link]

And you've had some good lawyers over the years, Frank

[Link]

Perez, Rafael De la Garza, good attorneys that gave you good

[Link]

advice, right?

[Link]

And if we could have a

This federal sentence that you're serving is not

I was arrested in 2002 for possession of one kilo of

You understand that,

Yes, sir.

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 243 of 249

243

[Link]

cooperating, correct?

[Link]

I believe so.

[Link]

You believe so?

[Link]

I believe so.

[Link]

get.

[Link]

was on that federal case.

[Link]

cooperating.

MR. GARDNER:

I object.

(BY MR. FINN) I'll move on.

He's answered that question

And you were looking at

I'm not aware how much months I was going to

You're telling this jury you don't know what your exposure
Is that your testimony?

You're asking me how much did I know before I started

I didn't know when I started cooperating, I didn't

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 244 of 249

244

[Link]

Yes, sir.

[Link]

And you're really hoping big time that this gentleman right

[Link]

here, Doug Gardner, the prosecutor in this case, at the end of

[Link]

this trial will pick up the phone and call the AUSA in Plano,

[Link]

Ernest Gonzalez, and say, hey, Ernest, this guy really came

[Link]

through for us, let's cut his sentence even more or at least ask

[Link]

the Judge to cut it even more.

[Link]

happen, correct?

[Link]

and it's up to the Judge to decide on it.

[Link]

you're hoping will happen, "Yes" or "No"?

[Link]

Well, when I started --

[Link]

I'm sorry --

And you got your sentence cut basically in half because the

Do you recognize

That's what you want to have

I know that they're going to ask -- they can ask the Judge

Okay.

Yes, sir.

Maybe you didn't understand my question.

That's what

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 245 of 249

THE COURT:

[Link]

I told authorities.

[Link]

Yeah.

[Link]

should, quote, do what they had to do.

[Link]

Yes, sir.

is that correct?

[Link]

MR. FINN:
THE COURT:

Your Honor, we object to that with

Your Honor, I've got a good -Well, no.

Just wait.

Please remember the instructions.

Got five minutes.

Don't talk or let

Go home and relax.

Don't go

And I'll see you at 8:30 in the

Mr. Finn, you may continue.

Judge, can I ask you a question first?

MR. GARDNER:

I'm

But I think it's

Judge, I can't talk to that witness, so

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 247 of 249

247

[Link]

there's no cross-examination.

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

can't make a ruling.

[Link]

MR. FINN:

[Link]

THE COURT:

[Link]

admissible or not.

[Link]

conspiracy to find out what you're going to ask, I don't know who

[Link]

the conspirators are, but I am not included.

[Link]

just sustain the objection and then, you would be happy and he

[Link]

would be happy.

[Link]

rules are in cross-examination.

[Link]

cross-examination.

[Link]

me to proceed, I will.

[Link]

gun-running.

[Link]

About my gun-running?

[Link]

Gun-running.

THE COURT:

I know that and he knows that, too.

Now,

you asked a question and he objected.

Right.
And until I know what the answer is, I

Fair enough.
That's why I sent the jury home so that you

could educate me and I could tell you whether it's going to be

And if you think that there's an overall

MR. FINN:

I guess I could

Judge, with all due respect, I know what the

I know how to do a

I'll do it any way you want.

THE COURT:

So if you want

Make the bill and then, I'll make the

ruling, and we can all go home, Mr. Finn.

MR. FINN:

Thank you, Judge.

(BY MR. FINN) Mr. Vasquez, tell the Court about your

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 248 of 249

248

[Link]

What about the gun-running?

[Link]

Tell me and the Court about your gun-running experience.

[Link]

In the past, we send guns back to Mexico.

[Link]

A whole bunch of guns, correct?

[Link]

Yes, sir.

[Link]

I'll warn you, I've got the transcript of your earlier trial

[Link]

testimony, okay?

[Link]

anything bigger and we send them to Mexico with dirty drug money

[Link]

and they were delivered.

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

came out in a trial.

[Link]

THE COURT:

[Link]

MR. FINN:

[Link]

going to ask, he just sort of laid an open question about other

[Link]

criminal activity.

[Link]

I'll give him that in Jencks.

[Link]

ask him in the morning.

[Link]

us.

[Link]

MR. FINN:

[Link]

THE COURT:

AK-15s, AR-15s, AK-47s, .308s and, quote,

Does that ring a bell?

Yes, sir.
Is this the Dallas case or the -Eastern District case, Judge.

The Plano case.

I think so.

Yes.

Or this

It's Judge Crone's case.

The testimony I'm referring to

is May 17, 2012 in the case involving Frederick Wayne Anderson.

MR. GARDNER:

Your Honor, if that's the question he's

If he's going to ask about that, that's fine.

THE COURT:

Okay.

I don't have a problem with that.

Let him know what that is, he can

And then, it will all be a surprise to

Thank you.
All right.

Yeah, thanks, Judge.

Recess till 8:30 in the

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

Case 1:12-cr-00210-SS Document 739 Filed 11/16/13 Page 249 of 249

[Link]

morning.
(Proceedings adjourned.)

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

LILY I. REZNIK, OFFICIAL COURT REPORTER

U.S. DISTRICT COURT, WESTERN DISTRICT OF TEXAS (AUSTIN)

249

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