A wiretap investigation that began in 2023 led federal agents to disrupt a Tacoma street gang running a large-scale drug trafficking operation, resulting in 14 arrests and the seizure of more than 100 devices that convert firearms into machine guns.
Federal indictments have been filed against 14 people related to manufacturing counterfeit narcotic pills, according to the U.S. Attorney’s Office. Authorities executed 16 search warrants Wednesday at locations in Washington and Oregon, seizing large quantities of drugs, firearms and financial assets. Court documents say drugs were stored and distributed from multiple residences.
Lead defendant Kevin Salgado, 27, of Puyallup, allegedly led the group distributing counterfeit oxycodone and Xanax pills, methamphetamine, fentanyl, and cocaine. Some members also conspired to possess firearms to further their drug distribution. Members were heard on wiretaps discussing exchanging drugs for firearms. Three overdose deaths have been connected to Salgado’s activity, prosecutors said.
“The defendants in this indictment allegedly engaged in a wide range of criminal conduct – pressing narcotic pills for distribution, trafficking firearms and switches to make them machine guns, using those guns to settle scores with rival gangsters,” said First Assistant U.S. Attorney Neil Floyd. “Ringleader Kevin Salgado allegedly distributed the pills he manufactured in western Washington and across the country through the mail.”
Law enforcement seized 38 firearms, with seven confirmed stolen, and more than 100 firearm conversion devices commonly known as machine gun switches. The weapons were found near distribution-level quantities of drugs and were intended to protect narcotics and drug proceeds. Investigators also uncovered approximately $1.5 million in cryptocurrency transfers allegedly used to launder profits from drug sales.
The investigation revealed additional layers of criminal activity, including fraudulent prescriptions to divert prescription drugs into the illegal market. Authorities also linked members of the organization to shootings and violent assaults. The investigation was conducted by an HSI-led task force including the FBI, DEA, ATF, IRS, and U.S. Postal Inspection Service. Federal prosecutors said additional defendants could be charged as the case moves forward.
