According to officials on Friday, a lawyer from Mexico City who prosecutors claim played a key part in laundering millions of dollars through shell corporations situated in San Diego entered a guilty plea to federal charges.
According to the prosecution, at least $52.7 million made nationwide from the drug trafficking operations of the Sinaloa Cartel made its way into Mexican bank accounts under the control of 43-year-old Hector Alejandro Paez Garcia.
Workers allegedly traveled to dozens of American cities to retrieve up to $200,000 in cash, which was subsequently laundered through the shell corporations.
After a protracted FBI investigation that led to 11 arrests and the seizure of over $3.1 million in illicit assets, the U.S. Attorney’s Office identified Paez as “serving a managerial role” in the money laundering enterprise.
A DEA operation resulted in 24 further arrests and $450,000 worth of asset seizures.
Another 43-year-old suspected group head, Alberto David Benguait Jimenez, is still being sought by federal investigators. The U.S. Treasury Department sanctioned Benguait earlier this year, claiming that he laundered millions of dollars for the cartel and a suspected fentanyl trafficker.
According to prosecutors, Paez oversaw attempts to convert narcotics revenues into cryptocurrency in order to elude law enforcement after 66 of the organization’s bank accounts were taken by federal authorities.
Authorities stated in a news release that the FBI had successfully penetrated and dismantled the bitcoin laundering network of the group.
Earlier this month, Paez entered a guilty plea in federal court in San Diego. His sentencing is scheduled for August 15. He might be fined up to $500,000 and imprisoned for up to 20 years.
Several other alleged co-conspirators have been charged with aiding in the laundering of narcotics proceeds or serving as cash couriers.
