Illegal Alien Who Led Massive International Drug and Firearms Trafficking Ring from Behind Bars Sentenced to Federal Prison with 14 Others

ATLANTA – Servando Corona Penaloza, who is a Mexican illegal alien and Georgia state prison inmate, was sentenced to 25 years in federal prison for orchestrating the sale of more than 1,000 kilograms of methamphetamine and fentanyl and the purchase of over 200 military-style firearms that were transported to Mexico for use by Mexican cartels. Fourteen other members of Corona Penaloza’s organization have been convicted and sentenced, with two defendants awaiting sentencing in the coming months. “These defendants flooded our community with deadly drugs and used the proceeds of their drug deals to arm narco-terrorist Mexican cartels with high-powered weapons of war,” said U.S. Attorney Theodore S. Hertzberg. “As a result of the exceptional and dedicated work by our federal, state, and local law enforcement partners under the auspices of Atlanta’s Homeland Security Task Force, there are no more drugs coming in—or firearms going out—at Corona Penaloza’s direction.” “This investigation reflects strong coordination among agencies at every level. Through that collaboration, we disrupted a dangerous operation and enhanced the safety of our communities,” said ATF Assistant Special Agent in Charge Ryan Todd. “This operation not only prevented a massive quantity of methamphetamine from reaching our streets but also took firearms out of the hands of individuals who pose a serious threat to public safety,” said Jae W. Chung, Special Agent in Charge of the DEA Atlanta Field Division. “Every kilogram seized, and every weapon recovered, is a step toward safer communities.” “This case demonstrates Homeland Security Investigations’ determination to root out violent gangs and criminal cartels from our communities,” said Steven N. Schrank, Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama. “By working side-by-side with our federal, state, and local partners, we have stopped the flow of deadly drugs and weapons and delivered a clear message: We will relentlessly pursue those who threaten the safety of American families.” According to U.S. Attorney Hertzberg, the charges, and other information presented in court: In March 2024, federal agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) identified numerous cash purchases of M249S firearms from federally licensed firearms dealers in the Atlanta area. M249S firearms are belt-fed, single shot, civilian versions of the U.S. Army’s Squad Automatic Weapon, with a retail cost of $10,000 to $12,000 per unit. Throughout its investigation, the ATF determined that numerous individuals were purchasing, or coordinating the purchase of, M249S firearms and other military-style weapons in the Atlanta area on behalf of Corona Penaloza, who organized the smuggling of those firearms to Mexico for use by Mexican narcoterrorists. In March 2024, while ATF investigated Corona Penaloza for firearms trafficking, the Drug Enforcement Administration (“DEA”) began investigating him for large-scale drug trafficking. During its investigation, the DEA learned that Corona Penaloza had brokered several large-scale cocaine and methamphetamine transactions and coordinated the importation and distribution of hundreds of kilograms of fentanyl and thousands of kilograms of methamphetamine on behalf of a large Mexican drug cartel. For instance, on October 23, 2024, the DEA identified and seized a shipment of over 1,000 kilograms of methamphetamine delivered to an auto mechanic shop in DeKalb County, Georgia. The investigation revealed that Corona Penaloza coordinated the drug and firearm sales by using a contraband cell phone while serving a 30-year state prison sentence. To source firearms, he worked with certain individuals who acted as firearms purchase coordinators. Those coordinators then instructed numerous other individuals to buy the firearms at various FFLs in the Atlanta area and deliver them to the coordinators. Some of the purchasers facilitated smuggling the firearms t