Federal prosecutors indicted a brother and sister for laundering more than $42 million of drug trafficking proceeds using approximately 85 bank accounts belonging to at least 22 California-based ‘shell’ corporations.
Jesus Vazquez Padilla, 50, a resident of Tijuana, Mexico, and his sister Monica Vazquez, 48, a Chula Vista resident, used the shell corporations to deposit cash proceeds of drug sales into U.S.-based bank accounts.
The duo layered those deposits across multiple corporate accounts before finally transferring the funds to accounts in Mexican-based financial institutions.
According to the indictment, they worked together as corporate officers for two San Diego-based corporations, OSVA Incorporated and Jeva International, Inc. to open corporate bank accounts to deposit large cash amounts. The duo laundered $42,276,668, transferred approximately 95 percent of those funds to Mexico, and retained the remainder as payment for their services.
“Today’s indictment shows that the United States will prosecute not only those who traffic in drugs but also those who enable drug traffickers through sophisticated shell corporations, false tax returns, and multiple bank accounts,” U.S. Attorney Randy S. Grossman said.
According to the U.S. Attorney’s Office, Jesus and Monica could face up to twenty years imprisonment and a $500,000 fine or twice the value of the funds involved in the transportation, transmission, or transfer.
