Beyond The Horizon
China Syndrome: The Indictment Of The Sinaloa Cartel And Their Chinese Money Bundlers (Part 4) (6/22/24)
A recent federal indictment unsealed in June 2024 details a sophisticated scheme involving the Sinaloa Cartel and Chinese money launderers in Los Angeles. The indictment charges 24 individuals, including key figures such as Edgar Joel Martinez-Reyes, with conspiracy to distribute drugs, launder money, and operate an unlicensed money-transmitting business.
This investigation, dubbed "Operation Fortune Runner," revealed that over $50 million in drug proceeds were laundered through an underground banking system linked to Chinese nationals. The money laundering network, based in the San Gabriel Valley of California, processed and concealed large amounts of drug trafficking proceeds, making them accessible to cartel members in Mexico and elsewhere. Methods used included trade-based money laundering, asset structuring, and the purchase of cryptocurrency.
The collaboration between U.S., Chinese, and Mexican law enforcement led to the arrest of several fugitives involved in this scheme. This case underscores the growing partnership between Mexican drug cartels and Chinese organized crime groups to launder drug money, which funds the production and distribution of dangerous drugs like fentanyl and methamphetamine in the United States.
In this episode we take a look at that indictment.
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- Duration:
- 19m
- Broadcast on:
- 22 Jun 2024
- Audio Format:
- mp3
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Sponsored by Chumba Casino, no purchase necessary, VGW Group, void were prohibited by law 18-plus terms and conditions apply. What's up everyone, and welcome back to the program. In this episode, we're getting right back to the indictment of the Sinaloa cartel members and their Chinese money-bundlers. Count 2, US Code 18, Section 1956, H. All defendants, A. Objects of the conspiracy. Beginning in or about October 2019 and continuing until about October 26, 2023, in Los Angeles, Ventura, and San Bernardino counties, within the Central District of California and elsewhere, the defendants and others knowingly conspired and agreed with each other to commit offenses against the United States, namely one to knowingly and intentionally conduct an attempt to conduct financial transactions affecting interstate and foreign commerce, knowing that the property involved in the financial transactions represented the proceeds of some form of unlawful activity, and which property was, in fact, the proceeds of a specified unlawful activity, that is, the unlawful distribution of controlled substances. In violation of Title 21, US Code section 841, A and 1, with the intent to promote the carrying on of said specified unlawful activity, in violation of Title 18, United States Code section 1956, A, 1, A and I, and 2, to knowingly and intentionally conduct an attempt to conduct financial transactions, affecting interstate and foreign commerce, knowing that the property involved in the financial transactions represented the proceeds of some form of unlawful activity, and which property was, in fact, the proceeds of a specified unlawful activity, that is, the unlawful distribution of controlled substances. In violation of Title 21, US Code section 841, A and 1, and knowing that the transaction was designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of said specified unlawful activity, in violation of Title 18, US Code section 1956, A, 1, B and I, B, means by which the objects of the conspiracy were to be accomplished. The objects of the conspiracy were to be accomplished in substance by the means alleged in count 1, section B, of the first superseding indictment, which are re-alleged and incorporated by reference herein, C, overt acts, honor about the following dates in furtherance of the conspiracy, and to accomplish its objects, defendants committed the following overt acts, among others, within the Central District of California and elsewhere. The overt acts 1 through 42 alleged in count 1, section C of this first superseding indictment are re-alleged and incorporated by reference herein. Count 3, US Code 21, section 841, A, 1, B, 1, B, 2, and 2, defendant Bernal, honor about March 25, 2021, in San Bernardino County, within the Central District of California, defendantly appalled Bernal, knowingly and intentionally, possessed with intent to distribute at least 500 grams, that is approximately 4,000 grams, of a mixture and substance containing a detectable amount of cocaine, a schedule to narcotic, drug-controlled substance pictured below. Count 4, US Code 21, section 841, A, 1, B, 1, A, 2, and 2, defendant Lacon Robles. Honor about July 9, 2022, in Los Angeles County, within the Central District of California, defendant Vidal, Emilio Lecon Robles, knowingly and intentionally, possessed with intent to distribute at least 5 kilograms, that is approximately 30.1 kilograms, of a mixture and substance containing detectable amounts of cocaine, a schedule to narcotic drug-controlled substance pictured below. Count 5, US Code 21, section 841, A, and 1, B, 1, A, 8, defendant's L, honor about July 26, 2022, in Los Angeles County, within the Central District of California, defendant Jean Desau, knowingly and intentionally, possessed with intent to distribute at least 50 grams, that is approximately 7.18 kilos of methamphetamine, a schedule to control substance pictured below. Count 6, US Code 21, section 841, A, 1, B, 1, A, 2, and 2, US Code 18, section 2A, defendant's Cabrera, and Pardo. Honor about October 18, 2022, in Los Angeles County, within the Central District of California, defendant Julio Alexander Cabrera, and Jose Antonio Pardo, each aiding and abetting the other, knowingly and intentionally, possessed with intent to distribute at least 5 kilograms, that is approximately 50.6 kilos, of mixture and substance containing a detectable amount of cocaine, schedule to narcotic drug-controlled substance pictured below. Count 7, US Code 18, section 371, 1960, all defendants, A, object of the conspiracy, beginning on a date unknown but no later than January 2021, and continuing to end, or about October 2023 in Los Angeles, Ventura, and San Bernardino counties, within the Central District of California, and elsewhere, defendant Edgar Joel Martinez Reyes, Peje Tong, AKA PJ, and the rest of the defendants and others known, and unknown to the grand jury, conspired and agreed with each other to knowingly and intentionally conduct control, manage, supervise, direct, and own and unlicensed money transmitting business, affecting interstate and foreign commerce, which failed to comply with the money transmitting business registration requirements, under section 53330, in Title 31, United States Code, and the regulations there under, all in violation of Title 18, US Code, section 1960A, and 1960B, 1B, and C, B, means by which the object of the conspiracy was to be accomplished, the object of the conspiracy was to be accomplished and substance as follows, the object of the conspiracy was to be accomplished, in substance by the means alleged in Count 1, section B, of the first superseding indictment, which are re-alleged and incorporated by reference herein, C, overt acts, honor about the following dates, in furtherance of the conspiracy, and to accomplish its objects, defendant Martinez Reyes, Tong, Sae Zong, Cheng Wang Yi, Marbras Zhao, Contreras Zambrano, Balondria Contreras, Mu, Yu, Yi, Su, Yang, Meorga, Ovalle, Rodriguez Trujillo, Juoxin, He, Lekon Robles, Bernal, Gonzales, Cabrera, Parto, and Zhao, and others known to the grand jury, committed the following overt acts, among others, within the Central District of California and elsewhere. The overt acts, 1 through 42, alleged in Count 1, section C of the first superseding indictment, are re-alleged and incorporated in reference herein. Count 8, 31 U.S. Code, section 5324A3D2, U.S. Code 18, section 2B, defendant Balondria Contreras. Honor about January 27, 2021, in Los Angeles County, within the Central District of California, and elsewhere, defendant Luis Balondria Contreras knowingly, and for the purpose of evading the reporting requirements of section 5313A of Title 31, United States Code, and the regulations promulgated their under, structured assisted in structuring, and willfully caused to be structured, the following ATM deposits to a Citibank account ending in 1658, the Citibank account, with a domestic financial institution, namely Citibank, and did so while violating another law of the United States, namely Title 18, United States Code, section 1956, and as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Count 9, U.S. Code 31, section 5324A3D2, U.S. Code 18, section 2B, defendant Zombrano. Honor about January 29, 2021, in Los Angeles County, within the Central District of California and elsewhere, defendant Guillermo Zombrano knowingly, and for the purpose of evading the reporting requirements of section 5313A of Title 31, U.S. Code, and the regulations promulgated their under, structured assisted in structuring, and willfully caused to be structured the following ATM deposits to a Citibank account ending in 0057, with a domestic financial institution, namely Citibank, and did so while violating another law of the United States, namely Title 18, U.S. Code, section 1956, and as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Count 10, U.S. Code 18, section 111A1 and B, defendant Gonzalez. Honor about May 27, 2021, in Los Angeles County, within the Central District of California, defendant Daniel Gonzalez, also known as Rafael Aracho, intentionally enforceably assaulted, resisted, opposed, impeded, intimidated, and interfered with United States Drug Enforcement Administration Task Force Officer S.G., while S.G. was engaged in, and on the account of the performance of his official federal duties, and in doing so, used a deadly and dangerous weapon, namely a 2013 Lexus ES350 car, pictured below. Okay, round two. Name something that's not boring. Laundry? Ooh, a book club. Computer Solitaire, huh? Ah, sorry, we were looking for Chumba Casino. Chumba! Chumba! Chumba Casino.com has over 100 casino-style games. Join today and play for free for your chance to redeem some serious prizes. Chumba Casino.com. Nobody says it, but we believe that by law, 18 plus turns a condition to apply C-web site for details. Forfiture allegation number one. US Code, 21-853. 1. Pursuant a Rule, 32-2a, of the Federal Rules of Criminal Procedure. Notice is hereby given that the United States of America will seek forfeiture as part of any sentence, pursuant to Title 21, US Code, Section 853, in the event of any defendant's conviction, of the offense set forth, in any of the counts 1 and 3 through 6, of this first superseding indictment. 2. Any defendant, so convicted, shall forfeit to the United States of America the following. A. All right, title and interest, in any and all property, real or personal, constituting or derive from any proceeds which said defendant obtained directly or indirectly from any such offense. B. All right, title and interest in any and all property, real or personal, used or intended to be used, in any manner, part or to commit or to facilitate the commission of any such offense. N. C. To the extent such property is not available for forfeiture. Some of money equal to the total value of the property described in sub-paragraphs A and B. 3. Pursuant a Title 21, US Code, Section 853P. Any defendant, so convicted, shall forfeit, substitute property, if, by any act or omission, of said defendant, the property described in the preceding paragraph, or any portion thereof, A. cannot be located. Upon the exercise of due diligence, B. has been transferred sold to or deposited with a third party, C. has been placed beyond the jurisdiction of the court, D. has been substantially diminished in value or E. has been commingled with other property that cannot be divided without difficulty. 4-Fture Allegation #2, US Code 18, Section 982. 1. Pursuant a Rule 32.2A of the Federal Rules of Criminal Procedure, notice is hereby given that the U.S. will seek forfeiture as part of any sentence pursuant to Title 18, US Code, Section 982A1 in the event of any defendant's conviction of the offense set forth and count two of the first superseding indictment. 2. Any defendant, so convicted, shall forfeit, to the U.S. the following. A. Any property, real or personal, involved in such offense, and any property traceable to such property, and B. To the extent such property is not available for forfeiture, a sum of money equal to the total value of the property described in paragraph A. 3. Pursuant a Title 21 U.S. Code, Section 853P, as incorporated by Title 18 U.S. Code, Section 982B1, and Title 18 U.S. Code, Section 982B2, any defendant, so convicted, shall forfeit, substitute property if by any act or omission of said defendant, the property described in the preceding paragraph, or any portion thereof, cannot be located upon the exercise of due diligence, B. has been transferred, sold to, or deposited with the third party, C. has been placed beyond the jurisdiction of the court, D. has been substantially diminished in value, or E. has been commingled with the other property that cannot be divided without difficulty. Substitution of assets shall not be ordered, however, where the convicted defendant acted merely as an intermediary, who handled but did not retain the property in the course of the money laundering offenses, unless the defendant, in committing the offense or offenses, giving rise to the forfeiture, conducted three or more separate transactions, involving a total of $100,000 or more, in any 12-month period. Forfiture allegation number three, U.S. Code 18, Section 981A1C, and U.S. Code 28, Section 2461C1. Pursuant to Rule 32(2) of the Federal Rule or Criminal Procedure, notice is hereby given that the United States of America will seek forfeiture as part of any sentence pursuant to Title 18, U.S. Code, Section 981A1C, and Title 28, U.S. Code, Section 2461C, in the event of any defendant's conviction of the offenses set forth in Count 7 of this indictment. 2. Any defendant so convicted shall forfeit to the United States of America the following. A. All right, title and interest in any and all property, real or personal, constituting or derived from any proceeds traceable to the offense, and B. To the extent such property is not available for forfeiture, a sum of money equal to the total value of the property described in sub paragraph A. 3. Pursuant to Title 21, U.S. Code, Section 853P, as incorporated by Title 28, U.S. Code, Section 2461C, any defendant so convicted shall forfeit substitute property up to the value of the property described in the preceding paragraph if, as a result of any act or omission of said defendant, the property described in the preceding paragraph or any portion thereof cannot be located upon the exercise of due diligence, B. Has been transferred slow to or deposited with a third party, C. Has been placed beyond the jurisdiction of the court, D. Has been substantially diminished in value, or E. Has been co-mingled with other property that cannot be divided without difficulty. Forfiture allegation number 4, U.S. Code 31, Section 5317. 1. Pursuant to Rule 32.2A of the Federal Rules of Criminal Procedure, notice is hereby given that the United States of America will seek forfeiture as part of any sentence pursuant to Title 31, U.S. Code Section 5317, in the event of any defendant's conviction of the offense is set forth in either of counts 8 or 9 of this superseding indictment. 2. Any defendant so convicted shall forfeit to the United States of America the following, A. All property, real or personal, involved in the offense, and any property traceable there are two, and B. To the extent that such property is not available for forfeiture, and some of money equal to the total value of the property described in paragraph A. 3. Pursuant to Title 21, U.S. Code Section 853P, as incorporated by Title 31, U.S. Code Section 5317, C. 1, and B. Any defendant so convicted shall forfeit substitute property if by any act or omission of said defendant, the property described in the proceeding, or any portion thereof, A cannot be located upon the exercise of due diligence, B. has been transferred, stole to, or deposited with a third party, C. has been placed beyond the jurisdiction of the court, D. has been substantially diminished in value, or E. has been co-mingled with other property that cannot be divided without difficulty. This document was signed by E. Martin Astrada, the U.S. Attorney, and also the four person for the grand jury. All right, folks, that's gonna do it for this one, and for the indictment altogether, and obviously we'll have some more follow up on this as the story continues to evolve. All of the information that goes with this episode can be found in the description box. Hey, guys, it is Ryan. I'm not sure if you know this about me, but I'm a bit of a fun fanatic when I can. 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