Dallas, Texas, Man Sentenced to Over 10 Years in Federal Prison Following Conviction for Conspiracy to Distribute a Controlled Substance and Money Laundering

RAPID CITY - United States Attorney Ron Parsons announced today that District Judge Karen E. Schreier has sentenced a Dallas, Texas, man convicted of Conspiracy to Distribute a Controlled Substance and Money Laundering. The sentencing took place on August 14, 2026.

Gerardo Escobar Balderas, 38, was sentenced to concurrent federal prison sentences of 10 years and one month on the conspiracy and money laundering charges, followed by four years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.

Escobar Balderas was indicted for Conspiracy to Distribute a Controlled Substance and Money Laundering by a federal grand jury in April 2025. He pleaded guilty on June 1, 2026.

Escobar Balderas was involved in a cocaine conspiracy that spanned from Texas to Rapid City. He was based in Texas and sent cocaine through the mail to an individual in Rapid City. The cocaine was then distributed by multiple people in Rapid City and money was sent to Escobar through electronic cash transfers. Investigators believe Escobar distributed approximately 12 kilograms of cocaine to individuals in Rapid City while he was involved in the conspiracy.

Escobar Balderas was the last of eight defendants sentenced in the conspiracy. Omar Ornelas received 15 years; Larissa Ross received 20 months; Tyler Eagle Elk received 30 months; Jeffrey Cooley received 30 months; Kiana Pilcher received 35 months; A'Aliyah Leclaire received 12 months and one day; and Sesalie Red Owl received 24 months.

This case was investigated by the Unified Narcotics Enforcement Team (UNET), the U.S. Postal Inspection Service (USPIS), and South Dakota Division of Criminal Investigation. UNET is comprised of law enforcement from the Pennington County Sheriff's Office, the Rapid City Police Department, the South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Mark Hodges prosecuted the case.

Escobar Balderas was immediately remanded to the custody of the U.S. Marshals Service.