Ring involved guns, money, cars

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GRAND FORKS (AP) - Another arrest has been made in a cross-country drug ring linked to the killing of an area man last year, authorities say.

Names and details have not been released in a case that officials say involves a network of guns, drugs, money and cars moving from Mexico up the West Coast, then to North Dakota, Minnesota, Nebraska and other states. More than 40 people have been indicted, officials say.

The latest arrest came Monday night in Florida, Assistant U.S. Attorney Brett Shasky said. One person is still being sought in the death of Lee Avila, 28, of East Grand Forks, Minn., who was killed in his mobile home last year, Shasky said.

The names of all Avila's killers, as well as the person arrested Monday night, are not being revealed because the investigation is ongoing, Shasky said.

The case is known as Operation Speed Racer. From January 2002 to early this year, the drug conspiracy sent 30 pounds of meth as well as marijuana and cocaine from Mexico, the state of Washington, California and elsewhere into North Dakota and Minnesota, prosecutors allege.

Using cell phones, money wires and multiple bank accounts in various states, the group laundered the money to disguise its illegal origin, authorities say.

The alleged kingpin, Jorge Arandas, known as Sneaky, pleaded not guilty Monday to a drug conspiracy charge in Fargo. Arandas, who was arrested in California last spring, also faces charges for shooting a man, who survived, near Yakima, Wash., last year.

Michael Petzold, of Norfolk, Neb., pleaded guilty Monday in Avila's death. Authorities say he agreed to cooperate with prosecutors.

Authorities believe Petzold got the gun used to kill Avila, and on June 30, 2005, took three other people to East Grand Forks. The three entered Avila's home, and one of them shot Avila nine times court documents say.

The court documents also allege that Arandas directed the distribution of 5 pounds of methamphetamine in Wahpeton in December 2003, and that he oversaw the distribution of 3 pounds of meth and 93 pounds of marijuana the following May in Sanborn, a small town on Interstate 94 between Valley City and Jamestown, where some ring members had a home.

Arandas is charged with distributing 978 grams of coke and 20 pounds of marijuana in Minnesota and elsewhere in August 2004.

The drug ring members "engaged in the process of 'changing bills,' exchanging smaller denominations of U.S. currency for larger denominations in order to facilitate the transportation of currency to Washington state," prosecutors allege in court documents.

Drug ring members also exchanged guns and vehicles for drugs, authorities say.

One car was singled out by prosecutors in the indictments of Arandas.

In July 2003, Arandas and Demetrio Alvarado used drug money to buy a 2002 black Lincoln LS sedan for $8,000, prosecutors allege in court documents. In the next few months, they allegedly spent $17,000 on repairs to the vehicle, then used it to hold or conceal drugs.

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