By Steve Neavling
Federal law enforcement has discovered an alarming link between the Sinaloa drug cartel and underground Chinese banking groups in the U.S. that laundered cash from drug trafficking proceeds, the DEA and prosecutors announced Tuesday.
A five-year investigation found that the notorious cartel worked with the Chinese groups to conceal more than $50 million in drug profits, predominantly in the Los Angeles area.
Two dozen people have been charged, and Mexican and Chinese law enforcement assisted in detaining fugitives who fled the U.S. after they were charged last year.
The drugs included fentanyl and cocaine.
“Dangerous drugs like fentanyl and methamphetamine are destroying people’s lives but drug traffickers only care about their profits,” U.S. Attorney Martin Estrada for the Central District of California said. “To protect our community, therefore, it is essential that we go after the sophisticated, international criminal syndicates that launder the drug money. As this indictment and our international actions show, we will be dogged in our pursuit of all those who facilitate destruction in our country and make sure they are held accountable for their actions.”
The investigation led to a 10-count superseding indictment, and law enforcement seized about $5 million in narcotics proceeds, 302 points of cocaine, 92 pounds of methamphetamine, 3,000 ecstasy pills, 44 pounds of psilocybin, numerous ounces of ketamine, three semi-automatic rifles with high-capacity magazines and eight semi-automatic handguns.
“Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand in hand with drug traffickers to try to legitimize profits generated by drug activities,” Chief Guy Ficco of IRS Criminal Investigation said. “We have made it a priority to identify, disrupt, and dismantle any money launderers working with drug cartels and we are committed to our partnerships with federal, state, and local law enforcement agencies to combat drug cartels and those who assist them in laundering drug proceeds.”
