Without Drug Evidence, 4 of 8 Cocaine Suspects Free

Prosecutors have decided against charging half of the eight suspects in what Burbank police call a major San Fernando Valley cocaine ring because a lengthy investigation did not result in the seizure of drugs, authorities said Wednesday.

A three-month Burbank police investigation ended last week with the arrests of six men and a woman and the seizure of $1.7 million, several luxury cars, jewelry and weapons. One suspect is still being sought.

Police think the arrests were made after the drug ring recently sold a 332-pound shipment of cocaine valued at $2 million.

Because that alleged shipment was not seized and detectives made no undercover drug purchases during the investigation, the Los Angeles County District Attorney’s Office is faced with an unusual case. The office will prosecute what is believed to be its first cocaine conspiracy case without any cocaine seen or seized.

Circumstantial Evidence

“The evidence is all circumstantial,” Deputy Dist. Atty. Carolyn L. McNary said. “Did the cops actually see any white powder? The answer is ‘no.’

“But, obviously, we feel we have the evidence against the suspects that we have filed charges on,” McNary said. “It is going to be a very interesting case.”

Prosecutors decided Tuesday not to charge four of the suspects because evidence obtained by Burbank police does not tie them directly to the alleged cocaine distribution system, McNary said.

The four could be rearrested and charged later, but a Burbank police spokesman said no further evidence is expected to be presented to prosecutors. However, an investigation is continuing, he said.

“We already went with the evidence that we have,” Sgt. Don Goldberg said. But he acknowledged: “With no dope, this type of case is extremely hard to prove in court.”

4 Released

Mukhtiar S. Sagoo, 55, and Igbal S. Sagoo, 26, a father and son from Granada Hills, along with Nelly P. Villegas, 36, of Tarzana, and Edward F. Pena, 19, of Granada Hills, were released from the Burbank Jail after the decision not to file charges against them, officials said.

However, charges of conspiring to distribute cocaine were filed against Arturo J. Aguilera, 33, of Tarzana, Filiberto Prieto, 32, of Houston, and Haripal H. Sagoo, 22, who is a son of Mukhtiar Sagoo, officials said. The three men have pleaded not guilty and remain jailed on $2 million bail each. Authorities said a conspiracy charge was also filed against Galo Pate Iturralde, 26, who is still at large.

Authorities declined to release complete details of the evidence against the suspects in custody. They said the charges against them are based largely on surveillance of their activities and on searches of their homes, businesses and two storage lockers in the Valley.

“The suspects used counter-surveillance measures on numerous occasions,” said Capt. David Newsham, who supervised the investigation. He said the suspects attempted to elude investigators who were following them.

Other evidence against those arrested, police said, includes the large sum of money seized, ledgers detailing drug payments and paraphernalia associated with high-level drug trafficking, including money-counting machines and drug-packaging material.

Cash seizures from police searches and from bank accounts of the suspects total $1,746,191.08, authorities said.

The only evidence of cocaine gathered during the investigation was a residue of the drug found in empty boxes in one of the homes searched, authorities said. Drug-sniffing dogs also reacted to $500,000 in cash found in a Tarzana storage locker traced to the suspects, they said.

“The dogs could tell,” McNary said. “That money had been near cocaine.”

Authorities said the three men remaining in custody were involved in legitimate businesses while involved in the drug network.

Aguilera, whom investigators described as leader of the drug ring, operated a North Hollywood concert-promotion business where Haripal Sagoo also worked, authorities said. Haripal Sagoo also is part-owner of a Granada Hills auto shop specializing in Mercedes-Benz repairs, and Prieto is believed to have worked as a disc jockey in Houston.

Aguilera’s company, G & A Promotions, legitimately promoted concerts featuring Latino entertainers in the Los Angeles area, but it is also believed to have been a front for much of the drug group’s operations, authorities said.

Police said documents found during a search of the G & A Promotions office, in the 4600 block of Lankershim Boulevard, show the concert-promotion company could not have financed Aguilera’s lavish life style. He lived in a home worth more than $1 million, drove a Ferrari and a Mercedes-Benz and had $30,000 on hand at his home and $220,000 in bank accounts, police said.