A three-count federal indictment has been partially unsealed following the arrests of three people charged in a multimillion dollar money laundering conspiracy, United States Attorney Kenneth Magidson announced today along with Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Investigators say the “black market peso exchange” benefits criminal organizations by giving them a means to launder illicit proceeds using international trade. The system also gives foreign retailers access to discounted U.S. currency, which enables the foreign retailers to avoid steep exchange rates and other fees. For the U.S.-based company, the scheme is a way to substantially increase sales volume.
“We put a high priority of going after the financial infrastructure of criminal organizations including the manner and means by which they launder their illicit proceeds, said Magidson.”
“According to the indictment, the defendants enabled dangerous narcotics traffickers to access their ill-gotten gains and evade law enforcement,” said Breuer. “Professional money launderers are integral to criminal organizations and vigorously prosecuting them is a critical part of the department’s comprehensive approach to dismantling those criminal organizations for good.”
The indictment alleges that beginning as early as October 2009 until at least September 2011, the defendants operated a money transmitting business, based primarily out of Houston and Mexico, through which they provided professional money laundering services to narcotics traffickers in a type of scheme commonly referred to as “the Black Market Peso Exchange.” Specifically, the defendants allegedly picked up bulk U.S. cash that had been derived from the sale of illegal narcotics in several U.S. cities, including Dallas, Texas, and Charlotte, N.C., and received bulk cash at their headquarters in Houston. They then deposited the money into various bank accounts in the names of “shell companies” owned and controlled by the defendants, according to the indictment. The money was then allegedly transferred to bank accounts owned by retailers in the U.S. and in Mexico. The indictment further alleges that in exchange, pesos were transferred to bank accounts owned and controlled by their clients. During the time of the charged conspiracy, the defendants allegedly laundered more than $27 million.
DOJ press release link: click here