Chivis Martinez Borderland Beat
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The chief of the IRS’ criminal investigation unit Richard Weber said, “This case is a prime example of the ability of Mexican drug cartels to establish footholds in legitimate U.S. industries, and highlights the serious threat money laundering causes to our financial system.”![]()
Prosecutors report for at least four years the farm and racing setup accumulated transactions amounting to countless millions of dollars in Texas, California, New Mexico and Oklahoma.
Tomorrow, barring another postponement, the Jose Trevino Morales trial will commence in Austin Texas. Jose, the brother of Zetas leader Miguel Trevino Morales (Z-40) was arrested on June 12, 2012 and charged with money laundering conspiracy. Trial was set at that time for October 22, 2012 but was postponed when 7 of the defendants filed for and was granted a postponement.
The money laundering operation centered on horse racing. Jose is charged with using drug trafficking funds, provided by his brother Miguel, to operate a race horse setup of racing, siring and selling race horses. An estimated 400 stallions and mares were housed at a sprawling Oklahoma ranch.
It was reported that the Trevino brothers were not only racing enthusiasts but that Jose was a talented scout of horses that proved not only to be winners but breaking records in the industry with multi million dollar windfalls and resulted in commanding high stud fees. One horse, “Corona Cartel”, sired 3 champions in one year.
The majority of the horses were kept at Zule Farms, in Lexington Oklahoma.
Using drug money, and generally conceal the real names behind the funding. Horses and equipment were bought in cash with fictitious names. In the indictment the system used is detailed, financed entirely on drug money.
Prosecutors report for at least four years the farm and racing setup accumulated transactions amounting to countless millions of dollars in Texas, California, New Mexico and Oklahoma.
Tremor Enterprises LLC fronted the horse operation, starting small and working in plain sight. In time the horses became well known. In particular, Mr. Piloto won a million dollar prize at Ruidoso Downs on Labor Day 2010, going off at odds of 22-1.