Thread: Federal Grand Jury Indicts Los Zetas Leader in Money Laundering Scheme

Federal Grand Jury in Texas Indicts Los Zetas Leader in Money Laundering Scheme

U.S. Attorney’s Office
June 12, 2012 Western District of Texas
(210) 384-7100

AUSTIN, TX—A federal grand jury in the Western District of Texas has returned an indictment charging 14 defendants, including Los Zetas leader Miguel Angel Trevino Morales (aka “40”) and his brothers, Oscar Omar Trevino Morales (aka “42”) and Jose Trevino-Morales, in connection with a conspiracy to launder Los Zetas drug distribution proceeds by purchasing, training, breeding, and racing American quarter horses in the United States.

Earlier today, federal authorities arrested seven of the 14 indicted defendants, including 45-year-old Jose Trevino-Morales and his wife, 38-year-old Zulema Trevino, in Lexington, Oklahoma; 29-year-old Fernando Solis Garcia in Ruidoso, New Mexico; 26-year-old Carlos Miguel Nayen Borbolla, 32-year-old Adan Farias and 28-year-old Felipe Alejandro Quintero in Los Angeles; and 48-year-old Eusevio Maldonado Huitron in Austin, Texas. All seven remain in federal custody. Miguel Angel Trevino Morales, age 38, and Oscar Omar Trevino Morales, age 36, are believed to be in Mexico. Other individuals indicted, but not yet arrested, include: 20-year-old Raul Ramirez of El Paso, Texas; 51-year-old Francisco Antonio Colorado Cessa of Veracruz, Mexico; 31-year-old Victor Manuel Lopez of Nuevo Laredo, Mexico; 40-year-old Sergio Rogelio Guerrero Rincon of Mexico; and 35-year-old Luis Gerardo Aguirre of Mexico.

The announcement was made today by U.S. Attorney Robert Pitman, Richard Weber, Chief, Internal Revenue Service (IRS)-Criminal Investigation; FBI Special Agent in Charge Armando Fernandez; and Drug Enforcement Administration (DEA) Special Agent in Charge Javier Pena.

“The allegations in this indictment, if proven, would document yet another example of the corrupting influence of Mexican drug cartels within the United States, facilitated by the enormous profits generated by the illicit drug trade,” stated U.S. Attorney Pitman.

The indictment, returned May 30, 2012 and unsealed today, charges the defendants with one count of conspiracy to launder monetary instruments. According to the indictment, the Los Zetas are a powerful drug cartel in Mexico and generate multi-million-dollar revenues from drug sales. The indictment alleges that since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose and Zulema Trevino for purchasing, training, breeding, and racing American quarter horses in the United States. The indictment identifies millions of dollars worth of transactions in New Mexico, Oklahoma, California, and Texas involving a large number of quarter horses. Jose Trevino, Zulema Trevino, and others used “front” companies to conceal and disguise the true ownership of the quarter horses.

“This investigation reveals the varied attempts by Mexican drug cartels to further their criminal enterprises by any means necessary. As such, the FBI and its partners stand ready to combat all efforts by transnational criminal organizations to undermine our national security wherever and whenever they may be uncovered,” stated FBI Special Agent in Charge Fernandez.

The indictment also seeks the forfeiture of numerous quarter horses, to include: Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day 2010; Dashin Follies; Coronita Cartel; and Separate Fire. Furthermore, the indictment seeks the forfeiture of farm and ranch equipment; horse racing equipment; real property in Lexington, Oklahoma and in Bastrop County, Texas; and funds contained in three bank accounts allegedly used in the defendants’ scheme. The indictment also seeks a monetary judgment in the amount of $20 million, representing the amount of money derived from the defendants’ scheme.

“This case is a prime example of the ability of Mexican drug cartels to establish footholds in legitimate U.S. industries and highlights the serious threat money laundering causes to our financial system,” said IRS Criminal Investigation Chief Weber. “This attack on one of the Zeta’s most profitable money laundering schemes is an essential front in the war on drugs and will financially disrupt and help dismantle this violent international criminal organization.”

Upon conviction, the defendants face up to 20 years in federal prison. All of the defendants remain in federal custody at this time.

“Laundering drug proceeds through any financial institution to cover its origin is unlawful.” stated DEA Special Agent in Charge Peña. “DEA, along with its counterparts, will continue to investigate drug trafficking and money laundering cases with priority.”

In connection with the indictment, the Department of Treasury’s Office of Foreign Assets Control (OFAC) has today designated Francisco Antonio Colorado Cessa as a specially designated narcotics trafficker.

“We have found Francisco Colorado Cessa to be materially assisting the narcotics trafficking activities of Los Zetas and its leaders, Miguel and Omar Trevino Morales,” said OFAC Director Adam J. Szubin. “Our action cuts Colorado Cessa off from the U.S. financial system, and it is yet another signal to Miguel and Omar Trevino Morales and the Zetas that OFAC will target their financial and business network wherever it is found. I commend the work of the U.S. Attorney’s Office in its hard-hitting investigation.”

This continuing investigation is being conducted by agents with the FBI, IRS-Criminal Investigation, and the DEA, with assistance from the U.S. Marshals Service, Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), and U.S. Border Patrol. Other judicial districts involved in this matter include the Western District of Oklahoma, Central District of California, Southern District of Texas, District of New Mexico, and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).

An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.

FBI.gov is an official site of the U.S. Federal Government, U.S. Department of Justice

FBI — Federal Grand Jury in Texas Indicts Los Zetas Leader in Money Laundering Scheme

RELATED

http://www.alipac.us/f12/security-me...arrest-259229/

13 June 2012

Mexico drug gang 'used US horse racing as front'


Jose Trevino is said to have spent huge amounts of money on racehorses

US officials say they have dismantled a major money-laundering ring used by Mexico's Zetas drug gang to funnel drug proceeds through American horse racing.
Police raided a number of locations including a racetrack in New Mexico.

Among several people arrested was Jose Trevino, a brother of a suspected Zetas leader Miguel Angel Trevino, who has been indicted but remains at large.

US authorities say the case shows how Mexican gangs are able to infiltrate legitimate American businesses.

Jose Trevino and his wife, Zulema, were arrested at their stables near Lexington, south of Oklahoma City.

Federal agents also made arrests in California and Texas, as well as the Ruidoso Downs racetrack in New Mexico.

A total of 14 people have been indicted with money-laundering.
Prosecutors say Miguel Angel and Jose, along with another brother Oscar Omar, used drugs money to buy American quarter horses, which race over short distances.

Top jockeys

Some of the horses carried names with drug references, such as Corona Coronita Cartel and Number One Cartel.

The company that allegedly acted as a front, Tremor Enterprises, was quite successful with some of its horses winning important races in the US.


Some of the horses owned by the Trevinos won important races

And success on the track meant that Jose Trevino was able to hire top trainers and jockeys, the New York Times reported.

"This case highlights the capacity of Mexican drug gangs "to establish footholds in legitimate US industries," said Richard Weber, chief of the US Internal Revenue Service's criminal investigation division.

"This attack on the Zetas' most profitable money laundering schemes is an essential front in the war on drugs and will financially disrupt this violent international criminal organisation."

The Zetas are one of the most powerful and ruthless drug cartels in Mexico.
They were formed by deserters from the Mexican special forces and originally worked as hitmen for the Gulf Cartel.

Miguel Angel Trevino, known as "Z40", is believed to be a key figure in the organisation.

He and Oscar Omar Trevino are thought to be in Mexico.
BBC News - Mexico drug gang 'used US horse racing as front'

RELATED

http://www.alipac.us/f12/mexican-car...lleges-259207/