Thursday, August 31, 2017

CLEVER MONEY LAUNDERING AND DRUG DISTRIBUTION SCHEME BECOMES UNRAVLED

Feds in San Diego bust alleged drug-trafficking, money-laundering ring

By Kristina Davis

The San Diego Union-Tribune
August 24, 2017

Federal authorities have nabbed five people accused of running a ring that trafficked recently-smuggled drugs in San Diego County for wider distribution and helped funnel at least $5 million in suspected drug proceeds to Mexico, according to a complaint unsealed last week.

An Internal Revenue Service agent began investigating in 2015 when he got tipped to suspicious activity in bank accounts linked to a South Bay man, according to the affidavit attached to the complaint.

The agent conducted surveillance and further investigation revealed more than 50 bank accounts that appeared to be used as “funnel accounts.” The accounts received cash deposits from around the country in amounts up to $10,000 (amounts over that trigger mandatory reporting by the bank). The deposits were then quickly withdrawn, likely to be smuggled into Mexico, according to the complaint.

In March 2016, sheriff’s deputies conducted a traffic stop on the South Bay man, William Quintero, and found a white box with $21,000 inside, according to the complaint. A search of his house revealed more than $40,000 in cash and 2,300 pounds of marijuana. A self-storage facility in Chula Vista turned up another 3,600 pounds of marijuana.

Quintero and his wife pleaded guilty to drug charges in a separate case. A search of his cellphone revealed alleged associates.

The investigation found two men, Javier Felix Bayardo and Mario Noriega Osuna, controlled many of the bank accounts and would use fraudulent Mexican IDs to open the accounts, according to the complaint.

Another alleged associate who was interviewed by agents last summer admitted his role in the money-laundering scheme. He said for the past year he would receive cash deposits from unknown people on the East Coast, and then he would withdraw the cash and give it to another man believed to be Quintero. He said he was paid $50 for every $1,000 in deposits.

Shortly after the interview the associate fled to Mexico, authorities said.

The investigation expanded into drug operations.

Agents observed Felix and two other suspects several times load items to and from a self-storage center in National City. On a few occasions, items appeared to be moved to a detached bathhouse in Alpine, a place agents suspect was being used as a transshipment point for drugs.

On Aug. 9, a day after two suspects were seen delivering a black duffel bag to one of the storage units, agents searched the storage center. Agents seized 26 grams of cocaine, 938 grams of methamphetamine, 486 kilograms of marijuana and several guns, including a fully automatic rifle.

Agents arrested Felix, Felix’s girlfriend, Noriega, and the two other men the following week. They have pleaded not guilty.

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