Federal Inmate Sentenced to 25 Years for Running Massive Drug and Gun Trafficking Operation
ATLANTA, Ga. — A Georgia state prison inmate has been sentenced to 25 years in federal prison after orchestrating a large-scale drug trafficking and firearms smuggling operation tied to a Mexican cartel, federal officials announced.
Servando Corona Penaloza, 38, was sentenced by a U.S. District Judge after pleading guilty to multiple charges, including conspiracy to traffic firearms, conspiracy to distribute fentanyl and methamphetamine, and money laundering. Officials said at least 15 years of the federal sentence will run consecutively to his existing state prison term, followed by 10 years of supervised release.
According to investigators, Corona Penaloza directed the trafficking of more than 1,000 kilograms of methamphetamine and large quantities of fentanyl, while also coordinating the purchase and smuggling of more than 200 firearms to Mexico for use by criminal organizations.
Authorities said the operation was run from inside prison using a contraband cellphone. Investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives first identified suspicious purchases of high-powered firearms in the Atlanta area, including belt-fed rifles similar to military weapons.
Further investigation revealed that Corona Penaloza used a network of associates to coordinate both drug distribution and firearm trafficking. Individuals were recruited to purchase weapons from licensed dealers and deliver them to coordinators, who then arranged for the firearms to be smuggled into Mexico using hidden compartments in vehicles.
At the same time, the Drug Enforcement Administration uncovered evidence linking Corona Penaloza to large-scale drug transactions, including a seizure of more than 1,000 kilograms of methamphetamine at a DeKalb County auto shop in October 2024.
Investigators determined the organization trafficked at least 223 firearms, valued at more than $700,000, with many purchased using proceeds from drug sales. Authorities seized more than 100 firearms in the United States, while additional weapons connected to the case were recovered in Mexico.
Officials said two individuals also helped launder drug proceeds through financial applications, funneling money to firearm purchasers and coordinators involved in the scheme.
In addition to Corona Penaloza, 14 other members of the organization have been convicted and sentenced, with two additional defendants awaiting sentencing in the coming months.
The case was investigated by federal agencies including the ATF, DEA and Homeland Security Investigations, with assistance from multiple state and local law enforcement partners.
