A Mexican national pleaded guilty Wednesday to taking part in a two-year, multimillion-dollar trade-based money laundering scheme that funneled drug trafficking proceeds from the United States to Mexico, federal authorities said.
Quick facts:
- Defendant: Gabriel Arturo Castillo, 52, of Monterrey, Nuevo León, Mexico
- Charge: Conspiracy to commit trade-based money laundering
- Scheme duration: Approximately two years
- Method: Black-market peso exchange using cross-border goods purchases
- Locations: Multiple U.S. cities; Laredo, Texas; Mexico
- Purpose: Move cartel drug proceeds without physically transporting cash
Castillo pleaded guilty to conspiracy to commit money laundering and is scheduled to be sentenced July 7. He faces up to 20 years in federal prison.
According to court documents, Castillo participated in a sophisticated international conspiracy designed to transfer proceeds from illegal drug sales in the United States to cartels in Mexico without moving bulk cash across the border.
The operation relied on a black-market peso exchange system. Conspirators collected large amounts of U.S. currency from drug sales in cities across the country. The cash was either deposited into bank accounts or transported to Laredo, Texas.
From there, the funds were sold to business owners in Mexico, who used the U.S. dollars to purchase goods from American retailers, including perfume suppliers. The merchandise was then shipped from Laredo into Mexico.
Mexican business operators repaid the value of the U.S. currency by transferring pesos to drug trafficking organizations in Mexico, allowing cartel members to receive profits in local currency while concealing the illicit origin of the funds, authorities said.