{"id":56743,"date":"2024-06-18T19:37:50","date_gmt":"2024-06-19T02:37:50","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=56743"},"modified":"2024-06-18T19:37:50","modified_gmt":"2024-06-19T02:37:50","slug":"federal-indictment-alleges-alliance-between-sinaloa-cartel-and-money-launders-linked-to-chinese-underground-banking","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=56743","title":{"rendered":"Federal Indictment Alleges Alliance Between Sinaloa Cartel and Money Launders Linked to Chinese Underground Banking"},"content":{"rendered":"<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/span><\/p>\n<figure id=\"attachment_51585\" aria-describedby=\"caption-attachment-51585\" style=\"width: 225px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-51585\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/billy-ujpmmc5z1pg-unsplash-225x300.jpeg\" alt=\"tufted black chairs inside building with no people\" width=\"225\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/billy-ujpmmc5z1pg-unsplash-225x300.jpeg 225w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/billy-ujpmmc5z1pg-unsplash-768x1024.jpeg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/billy-ujpmmc5z1pg-unsplash-1152x1536.jpeg 1152w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/billy-ujpmmc5z1pg-unsplash-1536x2048.jpeg 1536w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/billy-ujpmmc5z1pg-unsplash-scaled.jpeg 1920w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\" \/><figcaption id=\"caption-attachment-51585\" class=\"wp-caption-text\">Photo by <a href=\"https:\/\/unsplash.com\/@billly\" rel=\"nofollow\">Billy<\/a> on <a href=\"https:\/\/unsplash.com\/?utm_source=american-justice-notebook&amp;utm_medium=referral\" rel=\"nofollow\">Unsplash<\/a><\/figcaption><\/figure>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-56688\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/department_of_1718317154.png\" alt=\"\" width=\"1\" height=\"1\" \/><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-56688\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/department_of_1718317154.png\" alt=\"\" width=\"1\" height=\"1\" \/>The Justice Department announced on Tuesday a 10-count superseding indictment against Los Angeles-based associates of Mexico\u2019s Sinaloa drug cartel. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">They are charged with conspiring with money-laundering groups connected to Chinese underground banking to launder drug trafficking proceeds, according to officials.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">During the conspiracy, more than $50 million in drug proceeds flowed between the Sinaloa Cartel associates and Chinese underground money exchanges.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Chinese and Mexican law enforcement informed the Justice Department that, following close coordination with the Drug Enforcement Administration (DEA), those countries recently arrested fugitives named in the superseding indictment who fled the United States after they were initially charged last year.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The multi-year investigation into this conspiracy\u2014dubbed \u201cOperation Fortune Runner\u201d\u2014resulted in a superseding indictment returned on April 4 and unsealed on Monday, <\/span><\/p>\n<figure id=\"attachment_56733\" aria-describedby=\"caption-attachment-56733\" style=\"width: 200px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-56733\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-200x300.jpg\" alt=\"white and black printer paper\" width=\"200\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-200x300.jpg 200w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-683x1024.jpg 683w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-768x1152.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-1024x1536.jpg 1024w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-1365x2048.jpg 1365w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-300x450.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-850x1275.jpg 850w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/06\/white-and-black-printer-paper-stockpack-unsplash-scaled.jpg 1707w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-56733\" class=\"wp-caption-text\">Photo by <a class=\"stockpack-author\" href=\"https:\/\/unsplash.com\/@giorgiotrovato?utm_source=Stockpack&amp;utm_medium=referral&amp;utm_campaign=api-credit\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Giorgio Trovato<\/a> on <a class=\"stockpack-provider\" href=\"https:\/\/unsplash.com\/photos\/WyxqQpyFNk8?utm_source=Stockpack&amp;utm_medium=referral\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Unsplash<\/a><\/figcaption><\/figure>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The indictment charged a total of 24 defendants with one count of conspiracy to aid and abet the distribution of cocaine and methamphetamine, one count of conspiracy to launder monetary instruments, and one count of conspiracy to operate an unlicensed money-transmitting business.\u00a0<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The superseding indictment alleges that a Sinaloa Cartel-linked money laundering network collected and, with help from a San Gabriel Valley-based money transmitting group with links to Chinese underground banking, processed large amounts of drug proceeds in U.S. currency in the Los Angeles area. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">They then allegedly concealed their drug trafficking proceeds and made the proceeds generated in the United States accessible to cartel members in Mexico and elsewhere.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"Two Men Arrested for Allegedly Operating One of the Largest Synthetic Drug Smuggling Rings\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Lead defendant Edgar Joel Martinez-Reyes, 45, of East Los Angeles, and others allegedly used a variety of methods to hide the money\u2019s source, including trade-based money laundering, \u201cstructuring\u201d assets to avoid federal financial reporting requirements, and the purchase of cryptocurrency.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Twenty of the individuals charged in the superseding indictment are expected to be arraigned in the U.S. District Court in downtown Los Angeles in the coming weeks, including one who was arraigned on Monday, according to officials.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u201cRelentless greed, the pursuit of money, is what drives the Mexican drug cartels that are responsible for the worst drug crisis in American history,\u201d said DEA Administrator Anne Milgram. \u201cThis DEA investigation uncovered a partnership between Sinaloa Cartel associates and a Chinese criminal syndicate operating in Los Angeles and China to launder drug money.&#8221;<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-26743 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/09\/FentanylTabletsDEA04222016-300x169.png\" alt=\"\" width=\"300\" height=\"169\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/09\/FentanylTabletsDEA04222016-300x169.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/09\/FentanylTabletsDEA04222016.png 652w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Adding, &#8220;Laundering drug money gives the Sinaloa Cartel the means to produce and import their deadly poison into the United States.\u00a0 DEA\u2019s top operational priority is to save American lives by defeating the cartels and those that support their operations. This investigation is the latest example, and there is more to come.\u201d<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">As part of this investigation, law enforcement has seized approximately $5 million in narcotics proceeds, 302 pounds of cocaine, 92 pounds of methamphetamine, 3,000 Ecstasy pills, 44 pounds of psilocybin (magic mushrooms), numerous ounces of ketamine, three semi-automatic rifles with high-capacity magazines, and eight semi-automatic handguns.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><b><i><u>Background<\/u><\/i><\/b><\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-36165 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/cropped-Courtroom-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/cropped-Courtroom-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/cropped-Courtroom-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/cropped-Courtroom-270x270.png 270w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/cropped-Courtroom-192x192.png 192w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/cropped-Courtroom-180x180.png 180w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/cropped-Courtroom-32x32.png 32w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/cropped-Courtroom.png 512w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>The Sinaloa Cartel is largely responsible for the massive influx of fentanyl into the United States over the past approximately eight years and for the accompanying violence and deaths that have afflicted communities on both sides of the border. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The cartel\u2019s activities generate enormous sums of U.S. currency in the United States that belong to the cartel in Mexico. Profits from the drug trade must be repatriated to Mexico for use by the cartel.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Chinese underground money exchanges in the United States assist the Sinaloa and other cartels to move their profits from the United States to Mexico by providing a ready market for U.S. currency in the United States.\u00a0<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Many wealthy Chinese nationals who live, work, or invest in China wish to transfer assets to the United States for various reasons but are barred by the Chinese government\u2019s capital flight restrictions from transferring the equivalent of more than $50,000 per year out of China. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">These individuals seek informal alternatives to the conventional banking system to move their funds.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-39979 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/judge-gavel-300x160.jpg\" alt=\"West Virginia Woman Took Top Secrets, Committed Kidnapping\" width=\"300\" height=\"160\" \/>To transfer money to the United States, the China-based investor contacts an individual who has U.S. dollars available to sell in the United States. The seller of U.S. dollars provides identifying information for a bank account in China with instructions for the investor to deposit Chinese currency (renminbi) in that account. Once the owner of the account sees the deposit, an equivalent amount of U.S. dollars is released to the buyer in the United States.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The sellers of U.S. currency in the United States obtain dollars in a variety of ways. Some of them accept cash from individuals engaged in criminal activity that generates large amounts of bulk currency, including drug trafficking. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">These U.S. currency brokers charge a percentage commission as a fee to the owner of the criminal proceeds to conceal the nature and source of the funds\u2014typically far less for their services than their competitors. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Drug traffickers increasingly have partnered with Chinese underground money exchanges to take advantage of the large demand for U.S. dollars from Chinese nationals.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The funds that are transferred in China are then used to pay for goods purchased by businesses and organizations in Mexico or elsewhere such as consumer goods or items needed to aid the drug trafficking organization to manufacture illegal drugs, such as precursor chemicals, including fentanyl.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><b><i><u>The Superseding Indictment<\/u><\/i><\/b><\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">According to the superseding indictment, from October 2019 to October 2023, members and operatives of the Sinaloa Cartel imported large quantities of narcotics, including fentanyl, cocaine, and methamphetamine, into the United States, generating huge sums of drug cash proceeds in U.S. dollars.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In January 2021, Martinez-Reyes allegedly traveled to Mexico to meet with Sinaloa Cartel members to strike a deal with money remitters with links to Chinse underground banking to launder drug trafficking proceeds in the United States. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">After the deal was struck, the Sinaloa Cartel\u2014through their connections and associates\u2014distributed cocaine, methamphetamine, and other narcotics, generating U.S. dollars as drug proceeds.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Martinez-Reyes and other conspirators allegedly then delivered the currency\u2014frequently in amounts of hundreds of thousands of U.S. dollars in cash\u2014to other members of the Chinese underground money exchange and remitting organizations to be laundered for a fee. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The remitting organizations possessed large amounts of U.S. currency and could help wealthy Chinese nationals evade China\u2019s currency controls.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The money remitters allegedly disposed of the drug proceeds by either delivering United States currency directly to their money exchange customers or by purchasing real or personal property, including luxury goods and cars to be shipped to China. <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Additionally, the remitters also moved illicit drug proceeds through cryptocurrency transactions.\u00a0 <\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">They also allegedly used a variety of traditional methods to place the funds into the traditional banking system such as purchasing cashier\u2019s checks, or \u201cstructuring,\u201d that is, depositing small amounts at a time into bank accounts opened for this purpose to avoid banks from reporting large cash deposits to the U.S. government.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The remaining seven counts charge individual defendants with crimes such as possession of pound quantities of cocaine and methamphetamine, structuring funds to avoid federal reporting requirements placed on banks, and one count of assault with a deadly weapon on a federal officer.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">All defendants are presumed innocent unless proven guilty.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">If convicted of all charges, each defendant faces up to life in prison.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The DEA, IRS Criminal Investigation, South Gate Police Department, Downey Police Department, Glendora Police Department, Fullerton Police Department, and El Monte Police Department are investigating the case, with valuable assistance from the FBI and the United States Marshals Service.<\/span><\/p>\n<p class=\"yiv5676397477MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Assistant U.S. Attorney Julie J. Shemitz for the Central District of California is prosecuting the case. .<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 The Justice Department announced on Tuesday a 10-count superseding indictment against Los Angeles-based associates of Mexico\u2019s Sinaloa drug cartel. They are charged with conspiring with money-laundering groups connected to Chinese&#8230;<\/p>\n","protected":false},"author":1,"featured_media":56745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-56743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Federal Indictment Alleges Alliance Between Sinaloa Cartel and Money Launders Linked to Chinese Underground Banking<\/title>\n<meta name=\"description\" content=\"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 The Justice Department announced on Tuesday a 10-count superseding indictment against Los Angeles-based associates of Mexico\u2019s\" \/>\n<meta name=\"robots\" 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