She and colleague named in murder warrants in Los Angeles

A suspected major drug dealer with gang ties attempted to put a “hit” out on an individual that she believed was cooperating with Rutland City Police for the state charges she is facing, according to a federal prosecutor.

Guadalupe “M.J.” Vargas, 43, and another colleague in Rutland also have been linked through California arrest warrants to the fatal shooting of a Los Angeles area man in February 2024, according to court records.

Vargas appeared in U.S. District Court in Burlington on Wednesday afternoon to face two federal felony charges for possession with intent to distribute controlled substances and a third count for possessing a firearm in furtherance of her drug trafficking business.

Earlier Vargas had pleaded not guilty in state court in May to seven felony counts of methamphetamine sale or delivery, six felony counts of sale or dispense of fentanyl, two felony counts of cocaine sale or delivery, and one count each of cocaine trafficking and fentanyl trafficking,.

Now Vargas reportedly has threaten to have the life taken for a person that she theorizes may be a source of information for Rutland City Police in her state drug case, court papers note.

“The defendant told the individual she tried to hire that if the alleged cooperator did not exist, there would be no case against her,” Special Assistant U.S. Attorney Katherine H. Flynn said in a motion seeking to have Vargas detained pending her federal trial.

“The defendant described to that person how a scene could be staged to make the death of the purported cooperator appear accidental,” Flynn wrote.

“This is a clear indication of the danger this defendant would present to other individuals if released on bond,” Flynn said in asking for the detention of Vargas.

There was no indication from officials or in Vermont court paperwork on who might have been the target of the proposed “hit” in Rutland reportedly requested by Vargas.

During the initial federal court hearing for Vargas there was some discussion about an arrest warrant for her in California involving a murder charge, but the defense said it believed that charge was dismissed or withdrawn this week.

Federal Magistrate Kevin J. Doyle said he wants to know the actual status of the California warrant for Vargas by the time the detention hearing resumes on Monday.

After the federal court hearing Rutland County State’s Attorney Ian C. Sullivan said in a phone interview that there was some question if California was dropping the request to have Vargas returned to face the murder charge. 

The fugitive charge in Vermont was dropped, but Vargas, who has been living at 120 Maple Street in Rutland, was picked up on the federal criminal complaint, records show.

Sullivan confirmed Vargas was charged in state court this week as a fugitive from justice in California because of the arrest warrant issued there on Oct. 30 for her in the homicide case.  It charged her with murder and conspiracy to commit murder, court papers show.

Vargas was one of four persons named in arrest warrants signed by a California judge concerning the death of Luis Gaona, 24, in Panorama City on Feb. 8, 2024, records show.

Gaona was shot multiple times by two men that got out of a Mazda about 12:05 a.m. and died a half hour later at a hospital, police said.  He left a young daughter.

Los Angeles Police said they recovered 14 shell casings for a 9-mm gun and 14 casings for a .357-caliber firearm and said the shooting was a gang-related execution.  There also was one report that the shooters may have been after somebody else and misidentified the victim.

One of Vargas’ co-defendants from the Rutland drug raid in May, Anthony J. Coleman, 43, also is named in an arrest warrant for the murder case in California, Sullivan confirmed. 

Sullivan’s office also filed a fugitive from justice charge this week against Coleman, who was initially identified in May as Daryl Brown, records show.  He remains jailed in Vermont.

Coleman pleaded not guilty in Vermont Superior Court in Rutland in May to seven felony drug charges.  Deputy State’s Attorney Arthur Brown also charged him with misdemeanor counts for false information to police and possession of a large capacity ammo feeding device.

DNA evidence from the Gaona homicide showed at least five of the recovered bullet casings matched with Coleman, who has a criminal record that included assault with a firearm, LAPD said in court papers.  He received a 14-year prison term and while in prison he received 3 more years for assaulting a law enforcement officer, records show.

LAPD reported a woman unlawfully purchased more than 50 firearms in Lewiston, Maine during the summer of 2022 on behalf of Coleman, who transported them to Los Angeles and furnished them to his gang, court records show.

Vargas had her sister from Texas at the federal court hearing, along with the defendant’s young daughter. Doyle said Vargas will remain in federal custody until the detention hearing resumes at 10 a.m. Monday.  

When Vargas appeared in federal court for the three new charges, she claimed she was indigent and needed a defense lawyer at taxpayer expense.  The court appointed veteran Burlington attorney Mark Oettinger, but during the hearing he said Vargas indicated she was planning to hire Rutland lawyer Matthew Hart, who was defending her in the state drug trafficking charges from May.

Vargas was initially arrested on state charges following a Rutland Police investigation in cooperation with Homeland Security Investigations.  The investigation centered on individuals initially selling from a residence at 38 Williams Street between March and May, according to an affidavit by Rutland Detective Cpl. Adam Lucia, who is assigned to the HSI Task Force.

LAPD said they worked with Lucia in tracking the two suspects in the homicide case to Rutland.

During a May search of an apartment on Curtis Avenue, police seized almost 7 ounces of crack cocaine, about 2 ounces of fentanyl, $41,000 in cash, seven firearms, including a short-barreled rifle with a partially obliterated serial number, and assorted ammunition, court records show.

Vargas was one of five persons arrested by Rutland City Police that day on state charges.

Flynn, the federal prosecutor, said Vargas did admit to investigators here in Vermont “that she was involved in significant interstate drug trafficking activity.  Further investigation shows the Defendant is affiliated with individuals involved in significant gun trafficking, and that she is tied to gang activity.”

Other court papers shows she is linked to the Crypts in California.

Flynn said due to the nature of her criminal conduct and her associates, Vargas would present a clear danger to the community if released from custody.