Eight Defendants Plead Guilty in Money Laundering & Transmigrante Industry Conspiracy

The US Department of Justice has announced that eight individuals have pleaded guilty for their roles in a violent conspiracy aimed at monopolising the transmigrante forwarding agency industry in Los Indios, Texas. The long-running scheme involved money laundering, price-fixing, and extortion, significantly impacting the border region near Harlingen and Brownsville, Texas. Three additional defendants remain fugitives.

Criminal Organisations & Money Laundering in Trade and Competition

Transmigrantes are individuals who transport used vehicles and goods from the US through Mexico for resale in Central America. US-based transmigrante forwarding agencies facilitate these transactions, assisting with customs paperwork. However, a criminal organisation conspired to monopolise the industry, using money laundering and extortion to control financial transactions and eliminate competition.

“The Criminal Division is committed to holding violent criminal organisations accountable in whatever markets they operate,” said Matthew R Galeotti, head of the Justice Department’s Criminal Division. “Transnational criminal organisations that use money laundering and violence to dominate industries will be prosecuted to the fullest extent of the law.”

The Criminal Conspiracy & Money Laundering Scheme

Defendants Carlos Martinez (also known as “Cuate”), Pedro Antonio Calvillo Hernandez, Roberto Garcia Villareal, Sandra Guerra Medina, and Mireya Miranda pleaded guilty to conspiring to fix prices and monopolise the transmigrante forwarding agency industry. This scheme violated Sections 1 and 2 of the Sherman Act. The defendants established a centralised entity known as the “Pool” to collect and distribute revenues among conspirators, ensuring non-members were forced to join and contribute financially. They monitored compliance via social media and other surveillance methods.

Martinez, Calvillo, Villareal, and Carlos Yzaguirre also pleaded guilty to conspiracy to interfere with commerce by extortion, with Martinez facing an additional charge for direct interference. The conspirators demanded payments from forwarding agencies in the form of a “piso” per transaction and “fines” for non-compliance. Those who resisted were subjected to threats and violence. Martinez alone was responsible for at least $9.5 million in extortion payments, much of which was funneled through a complex money laundering network.

Money Laundering & Financial Crime

Martinez and Jose de Jesus Tapia Fernandez pleaded guilty to a money laundering conspiracy. The proceeds from extortion were laundered through bank accounts controlled by Martinez and his family to obscure their origins. This money laundering operation was designed to conceal the nature, source, ownership, and control of the illicit funds. Additionally, Juan Hector Ramirez Avila admitted to structuring financial transactions to evade reporting requirements, further facilitating the money laundering scheme.

Martinez has agreed to forfeit four real properties, $375,000 in seized US currency, and additional financial penalties linked to the money laundering operation. Other conspirators, including Guerra, Miranda, Calvillo, and Villareal, have also agreed to pay fines.

Fugitives & Legal Consequences

Rigoberto Brown, Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto remain fugitives.

Money laundering conspiracy carries a maximum penalty of 20 years in prison and a $500,000 fine. Violations of the Sherman Act carry a maximum penalty of 10 years’ imprisonment and a $1 million fine for individuals. Conspiracy to interfere with commerce by extortion under the Hobbs Act can result in up to 20 years in prison and a $250,000 fine. Structuring financial transactions to evade reporting requirements can lead to up to five years in prison and a $250,000 fine. Sentences will be determined based on the US Sentencing Guidelines and statutory factors.

Government’s Commitment to Combating Money Laundering

The Justice Department’s Antitrust Division, the Criminal Division’s Violent Crime and Racketeering Section, the US Attorney’s Office for the Southern District of Texas, Homeland Security Investigations (HSI), and the FBI conducted the investigation. Trial Attorneys Brittany E McClure, Anne Veldhuis, and Michael G Lepage of the Antitrust Division, along with Christina Taylor of the Violent Crime and Racketeering Section and Assistant US Attorney Alexander L Alum, are leading the prosecution.

This case underscores the federal government’s determination to dismantle transnational criminal organisations that engage in money laundering, extortion, and other illicit activities that threaten economic security and fair competition within the US market.

Read the press release here.