Sophisticated Sinaloa Cartel/Chinese Money Laundering Organization Dismantled
Sophisticated Sinaloa Cartel/Chinese Money Laundering Organization Dismantled
The Justice Department recently announced a significant achievement in the fight against international drug trafficking and money laundering. A two-year joint investigation by the FBI and DEA culminated in the dismantling of a transnational criminal organization linked to the Sinaloa Cartel. This operation resulted in the indictment of twelve individuals, the seizure of substantial assets, and the rescue of extortion victims. It also uncovered the Cartel’s money laundering scheme with Chinese nationals.
Key Figures and Operations
The indictment highlights the central figures in this operation, notably Cristian Amaya Nava, who was sentenced to 60 months in prison for his role in extortion and money laundering. The network was allegedly led by Enrique Daan Esparragoza Rosas of Culiacan, Sinaloa, Mexico, and Luis Ramirez, a U.S. citizen. They utilized a network of shell companies and a sophisticated financial network to launder millions of dollars.
Nationwide Cash Pickups
The organization orchestrated the collection of bulk cash from drug traffickers across various U.S. cities. These funds were then laundered through the shell companies set up by Chinese nationals before being transferred to Mexican bank accounts.
Seizure of Drugs and Other Assets
In a significant operation in November 2020, 368 pounds of crystal methamphetamine and 10 kilograms of heroin were seized. The funds laundered by the organization were also used to purchase assets like a Volvo tractor-trailer and aircraft, which were subsequently seized by the FBI.
Arrests and Charges
The extensive investigation led to several arrests, including key players in the money laundering operation and individuals charged with narcotics trafficking. Notably, Enrique Daan Esparragoza Rosas and Ivan Correia are still at large and are considered fugitives.
The Chinese Connection
The cartel's innovative approach to money laundering extended to collaborations with Chinese nationals. By leveraging an underground banking system operated by these nationals in the United States, the cartel managed to effectively launder substantial sums of drug money. This intricate network saw large amounts of cartel cash being funneled through illegal Chinese money exchanges. One laughable instance of this laundering process was observed in Florence, California, where a cartel operative delivered $226,000 in a bag marked "Happy Birthday".
Analysis
The Sinaloa Cartel has been working with Chinese organizations for quite some time and it is now just hitting the press. We should be worried about the growing influence of Chinese nationals and Chinese companies (which are ultimately controlled by the CCP) in America’s drug problem. We know that Chinese nationals are involved in a growing number of indoor marijuana grows in America as well as chemical manufacturers sending fentanyl precursors to Mexico for fentanyl production.