Baltimore, MD – Two Maryland men are facing federal charges after allegedly building a lucrative drug trafficking operation on the dark web, raking in millions in Bitcoin and other illicit funds. Ryan Farace, 34, of Reisterstown, and Robert Swain, 34, of Freeland, are accused of manufacturing and distributing counterfeit Xanax pills, and then laundering the proceeds to hide their criminal activity. The bust yielded over $22 million in seized assets.
The indictment, unsealed June 22, 2018, details a scheme that allegedly ran from late 2013 through June 2017. Farace, according to authorities, wasn’t just a street-level dealer. He invested in professional-grade equipment – pill presses and molds designed to mimic legitimate Xanax tablets – and pressed loose alprazolam powder into convincing fakes. He then advertised and sold these pills on dark web marketplaces, accepting payment exclusively in Bitcoin.
The operation wasn’t limited to production and sales. Farace allegedly went to great lengths to conceal his tracks, communicating with customers through encrypted messages and shipping orders via the U.S. Postal Service. Crucially, he allegedly paid for postage using prepaid debit cards obtained using the stolen personal information of others, adding identity theft to the list of crimes. Between May 10, 2016 and January 31, 2017, authorities allege Farace distributed over 6,900 alprazolam pills.
Swain’s role, according to the indictment, was to assist in laundering the drug money. The pair allegedly conducted a series of financial transactions specifically designed to obscure the source, ownership, and control of the illegal profits. This wasn’t small change – law enforcement has already seized assets valued at over $22 million, including approximately $17 million in Bitcoin and other cryptocurrencies, $2.5 million in computer equipment, and more than $1.5 million in cash.
Federal prosecutors are seeking forfeiture of at least $5,665,000, along with the value of 4,000 Bitcoin, two residences, and two vehicles used in the operation. If convicted, Farace faces a maximum of five years in prison for conspiracy to manufacture, distribute, and possess alprazolam, five years for each of three counts of distributing and possessing the drug, and 20 years for maintaining drug-involved premises. Both Farace and Swain face a potential 20-year sentence for money laundering conspiracy.
An arraignment on the superseding indictment is scheduled for July 13, 2018, in U.S. District Court in Baltimore. The case was a joint effort by the U.S. Attorney’s Office for the District of Maryland, the Drug Enforcement Administration, Homeland Security Investigations, the U.S. Postal Inspection Service, the IRS Criminal Investigation, the U.S. Marshals Service, and the Baltimore County Police Department. This takedown serves as a stark reminder that even the most clandestine operations on the dark web are not beyond the reach of federal law enforcement.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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