INDIANAPOLIS, Ind. (Aug. 18, 2015) -- Federal agents searched six homes early Tuesday morning in connection with a heroin distribution operation.
The sweep ended with Lee Gray in custody.
Josh J. Minkler,The United States Attorney for the Southern District of Indiana said Gray, aka “Supremesmoke” was using a website on the deep web called Black Bank to move heroin and other narcotics.
“Heroin dealers cannot use the Internet to hide their illegal activity any longer,” said Minkler. “Our investigators have some of the most innovative technology available to make certain our cyber world remains safe from drug trafficking.”
Gray is accused of accepting bitcoins or virtual currency as payment in exchange for drugs.
Court documents say Gray used the United States Postal Service, priority express mail parcels and standardized mail envelopes to move his product. Gray would label the packaging with false addresses that he wasn’t associated with in an attempt to conceal the true origin of the package.
“The U.S. Postal Inspection Service takes very seriously its mission to deter the illegal use of the mails for any criminal activity,” said Postal Inspector in Charge, E.C. Woodson. “These crimes negatively impact each and every community and household, and we stand committed to working together to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail thereby violating the sanctity of the seal.
The charging documents against Gray reveal that he opened several bank accounts in his name, his wife’s name and several businesses, according to court documents.
Gray allegedly exchanged the bitcoins he earned through selling drugs and exchanged them with others for real U.S currency.
Tuesday, The Federal Drug Enforcement Administration led the search with assistance from local police and U.S postal authorities. Investigators served a search warrant at Gray’s home around 6 a.m. He lives in a subdivision located on the 8400 block of Burket Way in Camby, Ind.
Although Gray wasn’t home, agents spent hours looking through the home. He was found a short time later at a residence at Cloverleaf Apartments.
Investigators removed evidence from the apartment and conducted a thorough search on what appeared to be Gray’s car.
“When IRS Criminal Investigation gets involved, the drug dealer’s profits go up in smoke,” said IRS Criminal Investigation Special Agent Stephen Boyd. “IRS CI plays a unique role in targeting the profit and financial gains of narcotics traffickers on many levels. As a team, law enforcement will continue to pursue criminals operating in the cyber world and trace their illegal proceeds in the form of virtual currency.”
Eventually, Gray was brought out in handcuffs and placed into a car. He remained quiet as he exited the apartment building.
DEA agents could be seen going in and out of the apartment with boxes of evidence.
In a separate search, the home of a prominent Indianapolis club owner and businessman were searched.
Federal agents were inside the home for several hours removing evidence. He does not face charges at this time.
If convicted, Gray could face 20 years behind bars for each count.