FBI busts OK horse farm for Mexican drug cartel money laundering

Source: the FBI

Agents at horse farm
FBI agents at the Oklahoma horse farm that served as a money-laundering front for Los Zetas.

Equine Crime A Horse Farm of a Different Color   06/28/13

By outward appearances, the owner of an Oklahoma farm bought American quarter horses to train, breed, and race. But Jose Trevino Morales, the brother of two leaders of the violent and powerful Mexican drug cartel Los Zetas, was not just in the horse business: He was using the farm as a front to launder millions of dollars of the cartel’s illicit profits.

A three-year investigation led by the FBI resulted in convictions recently in federal court against Trevino and three others for conspiracy to commit money laundering. The case was significant because it revealed the reach and influence of Los Zetas in the U.S.—and it also illustrated how effective our investigators have become at targeting the cartel’s leaders.

“Core family members of the cartel and key business partners were impacted by this case,” said Special Agent David Villarreal, who supervised the investigation from our Laredo, Texas Resident Agency. “The FBI is targeting the highest echelons of the cartel’s leadership, and that sends a strong message not only to the cartel but to the people who are laundering their money on the American side of the border.”

The investigation, conducted through the Department of Justice-run Organized Crime Drug Enforcement Task Force (OCDETF) program, showed that since 2008, Trevino and his associates bought and sold racehorses with Los Zetas drug money using shell companies and front men. Testimony at trial revealed that during a 30-month period, the defendants spent $16 million in New Mexico, Oklahoma, California, and Texas on the horse farm operation.

U.S. Attorney Robert Pitman, who prosecuted the case, said after the trial, “The government was able to show how the corrupting influence of drug cartels has extended into the United States with cartel bosses using an otherwise legitimate domestic industry to launder proceeds from drug trafficking and other crimes.”

Investigators traced “upwards of $22 million that was laundered and shipped back to Mexico,” Villarreal said. “And that was just a piece of the operation that we used as a snapshot to prove our case in court.”

Horses
The government seized 455 horses and will seek a judgment in an upcoming civil trial that will include forfeitures that could total more than $70 million.

Villarreal believes that dismantling the horse farm operation will hamper the cartel’s ability to launder money, and that, in turn, will help restrict its U.S. operations. As part of the case, the government seized 455 horses and will seek a judgment in an upcoming civil trial that will include forfeitures of cash, U.S real estate, and three jets that could total more than $70 million.

In Laredo, on the South Texas border, “the Zetas are the main criminal threat, responsible for most of the violence, kidnappings, human and drug smuggling, and related crime,” Villarreal explained. “Across the border in Mexico, they have bombed police stations and assassinated numerous public officials.” This cartel, he said, “has committed countless atrocities, and they are responsible for destabilizing the border.”

He added that everyone on the task force—including the Internal Revenue Service, the U.S. Attorney’s Office for the Western District of Texas, the Drug Enforcement Agency, and other federal, state, and local law enforcement agency partners—worked hard to make the case against Trevino and his associates.

“Personally,” said Villarreal, who grew up in the region, “it is very rewarding to be able to bring justice to these ruthless people and to help stop their U.S. operations.”

10 comments on “FBI busts OK horse farm for Mexican drug cartel money laundering

  1. Thank god, and yes WHAT will happen to all those horses??? Quarter horses go figure…. GOD maybe AQHA Organization can help, yeah right ………. Breed some more good legal business… FURIOUS……….

    Like

  2. Outrageous-close those crooks down & don’t let them hide in there again! Joe Mette

    ________________________________

    Like

  3. If I recall correctly, many of these horses were sold at auction, some for as high as $10,000. I believe one bidder stated that the bloodlines are exceptional.

    Like

  4. From what I understand and from photos I have seen the Zetas are some of the most dangerous and blood thirsty of the drug cartels. They would hang beheaded bodies from the overpasses in some of the cities in Mexico, hang signs along with bodies taking credit for the deaths. They are responsible for a large percentage of the deaths in that country. They don’t stop there, I’ll spare you the rest of it. The drug cartels are in every city in the country and are spreading to Europe.

    Like

Care to make a comment?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s