Feds Raid L.A. Fashion District Over Cartel Ties–With 1,000 Agents

You can buy your wife or girlfriend a beautiful dress, drugs and launder crooked money—all in the same office in downtown Los Angeles. Truly, a one stop shop—meth, money laundering and the latest fashions. The drugs cartels are not only in Mexico, Texas border towns like El Paso, they are in downtown Los Angeles in the shadow of LA City Hall. While the fashion houses were invaded, by 1,000 Federal agents at one time (not a typo), the bigger question is when will the banks that took the laundered money be raided, closed down and bankers arrested. This could not happen without the active support of the banking community. Not when on one day $65 million was seized.

Maybe if the Obama Administration had enforced the immigration laws this would not happen. Now that Obama raided the cartels—I wonder how many terrorists came in shoulder to shoulder with the drug dealers?

“Los Angeles has become the epicenter of narco-dollar money laundering with couriers regularly bringing duffel bags and suitcases full of cash to many businesses,” said Assistant U.S. Attorney Robert E. Dugdale, who oversees the Criminal Division of the U.S. Attorney’s Office in Los Angeles.

The raids coincided with the unsealing of three indictments, one of which alleged that the Sinaloa drug cartel used Q.T. Fashion Inc., a maternity clothing wholesaler in the Fashion District, to launder ransom payments.”

Healthcare costs

Feds Raid L.A. Fashion District Over Cartel Ties

By San Fernando Valley Business Journal, 9/10/14

Thousands of federal agents raided businesses in downtown L.A.’s Fashion District on Wednesday and seized an estimated $65 million as part of a crackdown on alleged sophisticated money-laundering operations by Mexican drug cartels.

Nine people were arrested in the raids and stacks of cash were seized from Fashion District businesses, as part of the ongoing investigation called “Operation Fashion Police.” The businesses searched were suspected of using so-called “Black Market Peso Exchange” schemes to launder narcotics profits.

“Los Angeles has become the epicenter of narco-dollar money laundering with couriers regularly bringing duffel bags and suitcases full of cash to many businesses,” said Assistant U.S. Attorney Robert E. Dugdale, who oversees the Criminal Division of the U.S. Attorney’s Office in Los Angeles.

The raids coincided with the unsealing of three indictments, one of which alleged that the Sinaloa drug cartel used Q.T. Fashion Inc., a maternity clothing wholesaler in the Fashion District, to launder ransom payments.

The cartel kidnapped and tortured a U.S. citizen after federal agents seized more than 100 kilograms of cocaine that he was responsible for distributing, according to the indictment. The victim was held at a ranch in Mexico where he was beaten, shot, electrocuted and waterboarded – while his relatives hustled to pay $140,000 in ransom for his release, a sum the indictment said was delivered to Q.T. Fashion.

“Today’s arrests and searches should send a message to international drug cartels that the FBI and our partners won’t tolerate the exploitation of American business for the purposes of illicit financial transactions and that fund hostage-taking and the distribution of narcotics,” said FBI Special Agent Bill L. Lewis, assistant director of the bureau’s Los Angeles office, in a statement.

The indictments also accuse three other Fashion District businesses – Gayima Underwear, Yili Underwear, and Pacific Eurotex Corp. – of laundering drug cartel money.

 

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. Obama doesn’t have the backbone to do what is right for this country.. he is going to destroy it and transform it into an extension of Mexico.. I do NOT understand his ignoring the breaking of our laws. He cares NOTHING about securing our borders… his job is to protect this country and its citizens and he is failing his job. The government sends millions of dollars to other countries to secure their borders but ours, he cares nothing about. it is pathetic.

  2. 1000 agents to arrest NINE people? Seriously? I wonder how much each arrest cost, if salaries, loss of business, and misc. resources are all factored in? There has got to be a better way to use our tax money.

    And the author’s question about whether or not the banks will be held liable is an excellent one. These are the kinds of questions everyone in the media should be asking.

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