Investigators seized nearly $3 million in drugs during one month before dismantling an interstate network supplying Seattle’s International District and homeless encampments. (Photo: United States Attorney's Office, Western District)
SEATTLE — The leader of a drug trafficking organization that supplied fentanyl, cocaine, methamphetamine and heroin to Seattle’s International District and nearby homeless encampments will spend 10 years in federal prison.
U.S. District Judge Tana Lin sentenced 34-year-old Federal Way resident Octavio Salazar Palma on Wednesday, Aug. 5. Investigators arrested him in May 2025 after a lengthy wiretap investigation uncovered an interstate drug distribution and money laundering operation.
“You were a leader in the drug conspiracy, you were the source of an extraordinary amount of drugs in our community,” Lin said during sentencing. “Despite multiple seizures by law enforcement you did not stop, only the arrest made you stop.”
Street-Level Investigation Uncovered Drug Supply Network
The case began with Seattle officers investigating drug sales in the International District and nearby encampments. According to the U.S. Attorney’s Office, investigators followed the organization’s supply chain until prosecutors secured authorization for a wiretap.
“This case began with officers on the street working their way up the supply chain until prosecutors had enough evidence to get a court approved wiretap,” First Assistant U.S. Attorney Neil Floyd said. “The wiretap allowed us to identify the leaders, and more importantly, interdict drug shipments before they hit our streets.”
Floyd said the U.S. Attorney’s Office remains focused on the public safety and law enforcement challenges affecting the International District.
Investigators Seized Nearly $3 Million in Drugs
During March 2025, investigators seized approximately 100 pounds of methamphetamine, 111 kilograms of cocaine, 19 kilograms of fentanyl powder, 250,000 fentanyl pills and four kilograms of heroin.
Federal prosecutors estimated the combined street value at nearly $3 million.
Investigators said the organization transported large quantities of cocaine from Southern California into Washington. In one month, authorities intercepted more than $1 million worth of cocaine connected to the operation.
“Led by his own greed, Mr. Salazar Palma piloted an interstate conspiracy to distribute obscene and lethal amounts of dangerous drugs through the International District and homeless encampments in Seattle,” FBI Seattle Special Agent in Charge W. Mike Herrington said. “No amount of profit can justify the cost of putting members of our own community at such a risk.”
Officers Served 16 Search Warrants
Law enforcement moved to dismantle the organization on May 29, 2025. Officers served 16 search warrants at locations in Federal Way, Vancouver, Everett, Pacific, Tukwila, Kent, Issaquah and Seattle.
The operation also reached properties in Woodlake, California, and Beaverton, Oregon.
During those searches, investigators seized:
- More than seven kilograms of cocaine
- Approximately 18 kilograms of methamphetamine
- More than 57,000 fentanyl pills
- Seventeen firearms
- More than $353,000 in cash
Palma pleaded guilty on April 15, 2026, to conspiracy to distribute controlled substances and conspiracy to engage in money laundering.
Prosecutors Say Palma Profited From Vulnerable People
Prosecutors requested a sentence of 140 months, or 11 years and eight months. They argued that Palma trafficked drugs for personal profit rather than to support his own substance use.
Agents found nearly $20,000 in drug proceeds while searching his home. Palma also agreed to forfeit a 2024 BMW M3 Competition xDrive, a 2021 Chevrolet Tahoe LT and jewelry purchased with proceeds from the operation.
“Mr. Salazar Palma led the drug trafficking organization that targeted some of Seattle’s most vulnerable, living in encampments in ‘The Jungle,’ while he bought expensive cars and jewelry with the profits,” DEA Seattle Special Agent in Charge Robert A. Saccone said.
Saccone said the sentence and drug seizures demonstrate the agency’s effort to disrupt the fentanyl supply chain and dismantle criminal distribution networks.
Multiple Agencies Participated in Investigation
The FBI, Seattle Police Department and Drug Enforcement Administration led the investigation. The IRS Criminal Investigation division, Homeland Security Investigations, the High Intensity Drug Trafficking Areas program and Washington National Guard Counterdrug Program provided additional assistance.
Investigators also worked with Oregon State Police and the Clark County Sheriff’s Office.
Assistant U.S. Attorneys Casey Conzatti and Brian Wynne prosecuted the case as part of the federal Homeland Security Task Force initiative.
Palma is a U.S. citizen. After completing his prison sentence, he must serve four years under federal supervision.
Frequently Asked Questions
Octavio Salazar Palma is a 34-year-old Federal Way resident whom federal prosecutors identified as the leader of an interstate drug trafficking and money laundering organization.
U.S. District Judge Tana Lin sentenced Palma to 10 years in federal prison. He will also serve four years of supervised release.

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