Six Colorado Springs Men Arrested in Gang Related Criminal Enterprise Investigation

DENVER—Six Colorado Springs men were arrested yesterday, three based on a Criminal Complaint for crack cocaine trafficking, and three based on state drug charges, Acting United States Attorney David Gaouette, FBI Denver Division Special Agent in Charge James Davis, 4th Judicial District Attorney Dan May, and Colorado Springs Police Chief Richard Myers announced.  The three men arrested based on a federal Criminal Complaint are Nathaniel Augustus Smith, III, age 41, Troy Sago, age 37, and David Fitzgerald Price, age 40, all from Colorado Springs.  The three men arrested based on state charges are Kevin Brantly Morton, age 51, Joel Louis Reyes, age 46, and Perry Joseph Montoya, age 46, all of Colorado Springs. 

The six men were arrested without incident by officers and agents with the FBI’s Southern Colorado Violent Gang Safe Streets Task Force and the Colorado Springs Police Department.  The federal defendants are scheduled to make their initial appearances before a federal Magistrate Judge in U.S. District Court in Denver today, where they will be advised of the charges pending against them.  A preliminary hearing and detention hearing will likely be scheduled for Tuesday, August 11th, 2009.  The federal defendants will be held without bond pending a resolution of that hearing.

According to the affidavit attached to the Criminal Complaint, from January 1, 2009 through June 15, 2009, Smith, Sago and Price unlawfully conspired with each other and others to possess with intent to distribute 50 grams or more of crack cocaine.  The leader of the drug trafficking organization is believed to be David Price, who was allegedly possessing, manufacturing, distributing, and selling crack cocaine and powder cocaine.  During the course of the investigation it was revealed that Price purchased the illegal drugs personally from Smith.  Further, the affidavit alleges that Sago also purchased drugs from Smith.

Officers and agents conducted searches of Smith’s residence, Price’s residence, storage locker, and vehicle, and Sago’s business.  Items seized at Smith’s residence in Colorado Springs were: 32.6 grams of crack, 50.1 grams of marijuana, $4,310 in U.S. Currency, a Tech 9 semi-auto handgun, a Ruger 9mm semi-auto handgun, a Davis .32 semi-auto handgun, a Ranger .22 short rifle, and a ballistic vest.  The investigation uncovered that Price typically purchased approximately 42 grams of crack from Smith every week, paying $850 to $900.  Price would then sell the crack for $1,600.  A search of Price’s residence, storage locker, and vehicle resulted in the seizure of 3.00 grams of crack, drug paraphernalia, $9,000 in U.S. Currency, a Ruger .357 handgun, and a Glock .40 handgun.

During the investigation, Troy Sago, a suspected member of the Gangster Disciples criminal street gang, was found to have been purchasing crack from Smith and then illegally selling it from his Colorado Springs business, known as the “Chicken Shack.”  Sago allegedly purchased nine ounces of cocaine each day, and then sold it in the form of crack in 1/4 ounce quantities.  Sago also allegedly sold marijuana and illegal firearms from his business.  A search of the Chicken Shack uncovered drug paraphernalia, and a Ruger .357 pistol. 

As a result of the investigation, in addition to the three federal arrests, three additional people were arrested and charged in state court.  They are Kevin Brantly Morton, age 51 of Colorado Springs, Joel Louis Reyes, age 46, of Colorado Springs, and Perry Joseph Montoya, age 46, of Colorado Springs.  All three men face the charge of possession of schedule II drugs.

“My thanks to the Southern Colorado Violent Gang Safe Streets Task Force for developing this case,” said Acting U.S. Attorney David Gaouette.  “This task force is a perfect example of the great work that can be accomplished when local, state and federal law enforcement agencies partner together to tackle a drug dealing problem.”

“The FBI is committed to working with our law enforcement partners to disrupt and dismantle existing and emerging violent criminal enterprises operating in Southern Colorado,” said FBI Special Agent in Charge James H. Davis.  “We are pleased to be a part of this Task Force and to work with the El Paso County District Attorney’s Office and United States Attorney’s Office, who are all committed to keeping Colorado Springs and Southern Colorado safe.”

“The Colorado Springs Police Department is proud of its alliance with the Southern Colorado Violent Gang Safe Streets Task Force, and our close relationship with our local, state, and federal law enforcement partners,” said Colorado Springs Police Chief Richard Myers.  “This is a fine example of the proactive gang related enforcement measures the task force embraces to get dangerous drugs, guns and criminals off the streets of our community.”

Fourth Judicial District Attorney Dan May said that he is pleased to be a part of this coalition that has committed to keep the Colorado Springs community safe.  “The newly formed relationship between the FBI Safe Streets Task Force and the DA’s office has been outstanding resource to accomplish the goal of safety for this community and battling gang activity,” District Attorney May said.  “These recent arrests have been a joint effort between both local and federal law enforcement.”

All three federal defendants are charged with Conspiracy to possess with intent to distribute and distribution of 50 grams or more of crack cocaine.  If convicted, they each face not less than 10 years, and up to life in federal prison, as well as up to a $4,000,000 fine.

This case was investigated by the Southern Colorado Violent Gang Safe Streets Task Force, a part of the Colorado Springs Resident Agency of the Denver Division of the FBI.  Task force members include the ATF, Colorado Springs Police Department, the El Paso County Sheriff’s Office, the State of Colorado Department of Corrections, the Federal Bureau of Prisons, and the FBI.

This case is being prosecuted by Assistant U.S. Attorney James Boma and 4th Judicial Deputy District Attorney Terry Sample.

A Criminal Complaint is a probable cause charging document.  Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury.

The charges contained in the Complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.