LOS ANGELES, May 6: A Mexican national has been arrested in California on charges of helping drug traffickers launder more than USD 60 million in proceeds through an elaborate scheme.
Gustavo Barba, 59, of Guadalajara, was detained on Tuesday as he sought to enter the United States through San Diego, authorities said yesterday.
Three of his associates were also jailed and charged in the 32-count indictment that details how the group laundered millions of dollars in drug proceeds through legitimate businesses in Mexico and South America.
Barba’s organisation allegedly laundered the money by using a “Black Market Peso Exchange” (BMPE) scheme to convert millions of dollars in drug money generated in the United States into pesos that were then delivered to drug cartels in Mexico.
“The BMPE involves both illegal drug trafficking and legitimate businesses operating throughout the Americas, and the scheme solves problems faced by both groups,” prosecutors said in a statement.
“Drug cartels have massive amounts of US currency – often in small denominations – that is difficult to transport in bulk or to deposit into financial institutions,” it added.
“At the same time, some legitimate businesses in Mexico want US dollars in the United States to pay domestic suppliers and manufacturers so they can avoid incurring fees and taxes that would result if they wired the money to the United States through legitimate channels.”
The BMEP brings the two groups together through a broker, according to the indictment, which was handed down last July but remained sealed until Thursday.
Once the peso broker facilitates the transactions for both sides — the cartels and the legitimate businesses — the proceeds are turned over to drug dealers or intermediaries, completing the cycle, authorities said.
Three other suspects are being sought in the case, including Barba’s 77-year-old father-in-law, Roberto Castaneda, who allegedly coordinated the delivery of the drug profits.
The other two suspects allegedly acted as couriers. (AGENCIES)
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