23 Arrested in Texas Money Laundering and Drug Operation

The Houston division of the Drug Enforcement Administration (DEA) was especially busy when, recently, nearly two dozen people in Texas were arrested and charged in a massive money laundering operation.

This crime ring involved not only money laundering, but also drug trafficking and a large firearms shipment.

Money Laundering Operation in Texas

23 people were arrested on charges including drug trafficking, firearms and money laundering from the Houston, Galveston, and Rio Grande Valley regions of Texas on the week of June 18.

Crimes for all 23 range from transporting 170 kg of cocaine, 2,000 kg of methamphetamine and over 100 firearms, to over $3 million in laundered cash.

If convicted, those charged with more extreme drug trafficking offenses could face life in prison and millions in fines.

Those charged with money laundering could face up to 20 years in prison.

All 23 arrests were a combined effort of investigations from Organized Crime Drug Enforcement Task Forces (OCDETF). The massive undertaking was also dubbed Operation Red Ranger, Borrowed Time, and Resurrection.

What is Money Laundering?

Those who have not seen the television show Breaking Bad may have only heard of money laundering thrown around in conversation, but don't actually know what it entails. 

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Essentially, money laundering does what it says. It turns illegally obtained currency into clean, lawful cash. How, you may ask, is this done? Well, at the risk of showing up on an FBI list, I'll try my best to explain. 

The basic building blocks of money laundering include placement, injecting the illegal money into a system of your choice; layering, keeping the dirty cash hidden through a series of transactions and a well-trusted bookkeeper; and integration, dispersing the "clean" money from the fully-legal account.

You see, there are six main types of money laundering, according to investopedia:

• Smurfing
  • Large amounts of money are divided into smaller deposits across many bank accounts
• Smuggling ("mules")
  • Cash is smuggled across border to be placed in foreign accounts
• Investing in Commodities
  • Investing in gold or precious gems which are easily moved
• Buying and Selling
  • Quick investments like cars, boats, or real estate
• Gambling
  • Using casino transactions to launder money
• Shell Companies
  • Fake companies that only exist on paper

I shouldn't have to say that this is highly illegal. Any hint from the IRS of any money you haven't claimed for tax purposes will immediately raise a flag. Even the smoothest of criminals get caught eventually.