Crime

‘Serious Threat’: Brother of Zetas ‘Enforcer’ Used Okla. Horse Ranch to Bankroll Cartel

Brother of Zetas Cartel Leader Used Horse Operation to Launder Cash

FBI agents overlook a horse ranch under investigation Tuesday, June 12, 2012 in Lexington, Okla. Federal agents raided the Oklahoma ranch and a prominent quarter horse track in New Mexico on Tuesday, alleging the brother of a high-ranking official in a Mexican drug cartel used a horse-breeding operation to launder money. (AP Photo/Brett Deering)

OKLAHOMA CITY (AP) – Federal agents raided a sprawling ranch in Oklahoma and a prominent quarter horse track in New Mexico on Tuesday, alleging the brother of a high-ranking official in a Mexican drug cartel used a horse-breeding operation to launder money.

An indictment unsealed Tuesday accused Miguel Angel Trevino Morales, a key figure in the Zetas drug operation, of setting up a horse operation that a younger brother operated from a ranch near Lexington, Okla., south of Oklahoma City. Millions of dollars went through the operation, which bought, trained, bred and raced quarter horses throughout the southwest United States, including the famed Ruidoso Downs track in New Mexico.

“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,” said Richard Weber, the chief of the IRS‘ criminal investigation unit.

Seven of the 14 people indicted were arrested, including Jose Trevino Morales and his wife, Zulema. Another Trevino brother was also charged.

Prosecutors asked that no bond be set for Trevino fearing he would either flee or intimidate witnesses. Neither Trevino nor his lawyer, Tony Lacy, commented, and a lawyer for Zulema Trevino said he knew little about the case.

“She’s got three kids and 400 horses at home,” lawyer Chris Eulberg said.

U.S. Magistrate Robert Bacharach said he would appoint lawyers for the pair after they said the government was trying to seize all their assets.

“I don’t have any assets as of today,” Trevino told the judge.

The indictment describes how the Trevino brothers and a network quietly arranged to purchase quarter horses with drug money at auction and disguise the source of the funds used to buy them so that the Zetas’ involvement would be masked. They would often pay in cash, or use fake names, which helped keep the owners and the money a secret.

Brother of Zetas Cartel Leader Used Horse Operation to Launder Cash

A man leaves a house on a ranch Tuesday, June 12, 2012, in Lexington, Okla. Federal agents raided the ranch. AP Photo/Brett Deering)

Since 2008, the operation racked up millions of dollars in transactions in California, New Mexico, Oklahoma and Texas, prosecutors said.

The operation, Tremor Enterprises LLC, started small, but worked in plain sight. Some horses carried names with drug references, like Coronita Cartel. Over time, the horses and the operation earned a place on some of the most elite stages in the industry. One horse named Mr. Piloto won a $1 million prize at Ruidoso Downs on Labor Day 2010, going off at odds of 22-1. Another named Tempting Dash won the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas.

The New York Times (http://nyti.ms/KqFFiY) first reported the raids and the alleged connection to the Zetas cartel on its website earlier Tuesday, citing a months-long investigation and several anonymous sources.

Brother of Zetas Cartel Leader Used Horse Operation to Launder Cash

A collage of the escaped Zeta drug cartel members. (LA Times via GOVERNMENT OF NUEVO LEON)

The Zetas are one of Mexico’s two most powerful drug cartels, with a reputation for being ruthless and willing to commit atrocities. The cartel was blamed for the 2010 massacre of 72 Central American migrants in the Texas border state of Tamaulipas, the dumping of 49 mutilated bodies on a Texas-bound highway in the state of Nuevo Leon, and a series of smaller group killings. The cartel is also accused of funneling millions of dollars to politicians and law-enforcement officials in Tamaulipas in a case currently under investigation by federal authorities in the U.S.

During the raids Tuesday, dozens of federal agents swarmed the New Mexico race track, wearing bulletproof vests and collecting evidence. At least two horses were taken away. Shaun Hubbard, general manager of the Ruidoso Downs Race Track and Casino, said the track officials know little about the raid but they are cooperating with federal authorities.

Seizure warrants were issued for 41 horses deemed the operations’ most valuable, in an effort to prevent their being taken to Mexico. Among those was Mr. Piloto. The government sought an order to ensure the care of 384 other horses at the ranch, which sits among rolling hills about 40 miles south of Oklahoma City.

At least a half-dozen agents wearing military-style fatigues and baseball caps emblazoned with FBI stood by at the ranch Tuesday afternoon as horses roamed on crisply manicured lawns, occasionally stopping to graze. Telephone messages left Tuesday at the ranch were not immediately returned.

Brother of Zetas Cartel Leader Used Horse Operation to Launder Cash

Federal agents stands near horses in pens at a ranch Tuesday, June 12, 2012, in Lexington, Okla. (AP Photo/Brett Deering)

Neighbors said the ranch changed hands about a year ago, but few knew the couple well.

“They sure threw a lot of money around. They put a lot of money into the property,” said K.D. Wilhite, the owner of the Old Dog Gun Shop where federal agents congregated Tuesday morning.

Chelsey Krueger, a student at Oklahoma City Community College who lives just south of the ranch, said she had never met the owners but knew when they were around.

“They were always in a Suburban, driving around with really loud music. They had a spotlight (at the ranch) that would be on late at night and light up the whole area,” she said.

The director of the Oklahoma Quarter Horse Racing Association said Jose Trevino showed up a few years ago and quickly earned a reputation for always paying his bills and shelling out handsome prices for some of the top horses in the country.

“They were also recognized for taking care of their business. They paid their bills and didn’t cause any trouble. You didn‘t have a food vendor or veterinarian calling to say they couldn’t get these guys to pay their bills. They were good citizens in the horse industry,” Debbie Schauf said.

She said it was common for buyers based out of the country to pay cash for horses, but that several transactions were noteworthy for their value.

“It didn’t raise a lot of eyebrows when these guys came to the sales and started paying cash. What raised eyebrows was the quality of the horses they were buying and the amount of money these mares cost,” Schauf said.

Associated Press writers Juan Carlos Llorca, Tim Talley, Sean Murphy and Rochelle Hines contributed to this report.

Comments (39)

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  • Inlandmar2
    Posted on June 13, 2012 at 9:36am

    Somehow, I can’t help but think that this action is purely a diversion tactic to take some of the heat off Holder. Could be much ado about nothing.

    Report Post » Inlandmar2  
  • Joyzee
    Posted on June 13, 2012 at 8:53am

    Running Guns again! Only by Horseback this time

    Report Post »  
  • NOTAMUSHROOM
    Posted on June 13, 2012 at 7:54am

    Dear Blaze
    Horse farms don’t “bankroll” anything. Horse farms consume money. This might be considered “economic stimulus”. This story is all messed up. Could you get your facts straight, please?

    Report Post »  
    • ApostolicIlx
      Posted on June 13, 2012 at 8:21am

      De[ends on the number of horse that go thru it. Clearly they’re using a large number of horses (i.e. transactions,) to cover the amount of money going thru the operation. Additionally, for every truly profitable horse, a well run farm can make enough to run for years. Just because you ran yours incompetently doesn’t mean everyone does. My sister-in-law makes a healthy income with their small east coast ranch. So tell it to the bartender, maybe he’ll listen.

      Report Post »  
    • ashestoashes
      Posted on June 13, 2012 at 9:11am

      What about the 700 billion in TARP which went to Sharia Compliant Banks whose boss is the Rothchild/Rockefeller un Federal Reserve? Sharia Compliant Banks mean that they give 2.5% to organizations which fund terrorism and 7% for breaking one Sharia Law..In my estimation..the terrorists are little more than mercenaries who work for the unFederal Reserve..Alexander Hamilton was a traitor who worked for them..George Washington kept them out..Lincoln tried..the Rothchild’s started the War of 1812 in which thousands were killed on both sides..to cause us so much debt that we would be forced to take them..In this video..you will see American heroes..and traitors..you will see the reason behind the assasinations of John F and Bobby Kennedy, Lincoln..Grant and the attempted assasination of Andrew Jackson. The Presidents do not run our country..The un Federal Reserve does..So you will not be voting for a President..It is only an illusion.
      http://www.youtube.com/watch?v=USGSOViaulc&feature=related
      I believe that they did this
      http://www.youtube.com/watch?v=28tE0fKpISM

      Report Post »  
    • loriann12
      Posted on June 13, 2012 at 9:11am

      I grew up in Missouri, near the Illinois border. Have you never heard of the Juke box wars? Back in the 70′s, the “English” mob would put juke boxes and pin ball machines out and it was very competitive on where they put them. The reason? You could claim you made twice as much money as you actually did, and put the money you made illegaly into the coffers. Or you could do the opposite, claim you made half of what you did and send the unclaimed portion to Mexico to support the drug cartel. Man, you are one stupid person.

      Report Post »  
    • ashestoashes
      Posted on June 13, 2012 at 9:24am

      @LORIANNE That would be called money laundering..would it not? BLAZERUNNER posted this yesterday..this might be considered money laundering..but on a much grander scale..and it is positively endless..no end to the amass of fortune..
      http://www.youtube.com/watch?v=VBRZYrblZ24

      Report Post »  
  • JUSTANOTHEROPINION
    Posted on June 13, 2012 at 7:41am

    I still don’t see a problem with imigration and our border, how about you Mr. President? This is great right Mr. Holder?

    Report Post »  
  • llotus
    Posted on June 13, 2012 at 7:41am

    In the 90s there was one south on 69 then west in the boonies in Muskogee Ok. Race track, large stable and bunker home. Lotus.

    Report Post »  
  • MrObvious
    Posted on June 13, 2012 at 7:27am

    At least they got caught.

    Drug gangs are flush with money because drugs are illegal.

    If the drugs were not illegal, the drug gangs would loose their primary source of income.

    Prohibition created Al Capone. The war on drugs created the drug cartels.

    As long as the unconstitutional criminalization of (what in many cases can be useful medicines) continues, the bad guys will have massive amounts of money and power.

    Report Post »  
  • adeleeeee
    Posted on June 13, 2012 at 1:45am

    We have to help and arm ourselves because our government is our enemy. I am buying more guns, ammunition to protect myself, my family.

    Report Post » adeleeeee  
  • scubascott
    Posted on June 13, 2012 at 12:16am

    It’s insane knowing American citizens are buying the drugs and funding most of their buisiness. People are drifting farther and farther away from God and this country‘s growth and future aned it’s clapsing the heart beat of this great nation. People poored out Blood, Sweat and Tears, theirs lives, Fortunes and their sacred honor for this Country. They died fighting for our freedom and we sit on these nice cushy chairs in the comfort of of our homes and Bitch about it and WE DON’T LIFT A FINGER TO DO ANYTHING ABOUT IT (that includes me) TO STOP THIS MADDNES!!!

    Report Post »  
  • Caballosinnombre
    Posted on June 13, 2012 at 12:15am

    Doesn’t surprise me a bit seeing how easy it is for them to illegally cross our borders. Since our government is not serious about protecting our borders expect more of the same.

    Report Post »  
    • Wolf
      Posted on June 13, 2012 at 8:54am

      Yup-and this pretend ‘war on drugs’ is nothing more than something to keep us sheep occupied while the DOJ arms an army of invaders.

      Report Post »  
  • WatchingAmericaDie
    Posted on June 13, 2012 at 12:05am

    This is just the beginning. The drug cartels have people in our govt at all levels: mayors, congressmen, judges, and so on. And of course the cartels have thousands of their people working in the private sector as accountants, lawyers, doctors, executives, etc. America is on the decline, but the cartels will continue to get rich because we are suckers. Heck, we’re even stupid enough to elect a president who was nothing more than a corrupt community organizer.

    Report Post »  
    • HorseCrazy
      Posted on June 13, 2012 at 12:09am

      yes I rolled my eyes when reading the story an you pretty much stated my comment. this is more of a “duh” moment for anyone who couldn’t figure out that drug dealers have so much money they actually buy legitimate businesses. I feel for these horses any government auction of these animals they end up getting sent to slaughter it makes me sick.

      Report Post »  
  • PROSECUTE_PUBLIC_SERVANTS__FOR_CONSTITUTIONAL_TREASON
    Posted on June 13, 2012 at 12:01am

    It’s all a mistake. Who needs greased? Obummer? Holder? The govenor?
    These people probably missed a payoff last month. Give them a break.

    Report Post »  
  • PROSECUTE_PUBLIC_SERVANTS__FOR_CONSTITUTIONAL_TREASON
    Posted on June 12, 2012 at 11:55pm

    I’m sure it all can be cleared up. Who needs paid off? Obummer? FBI? Holder?
    Someone missed getting a payment last month. Simple mistake.
    After all these people have earned a high credit score. Cut them some slack.

    Report Post »  
  • RickWS
    Posted on June 12, 2012 at 11:49pm

    The headline is backasswards. The cartel funded the horse farm.

    Report Post » RickWS  
  • KidCharlemagne
    Posted on June 12, 2012 at 11:15pm

    Isn’t this really old news though?

    A trade paper from 1996 written about NAFTA offers a foreshadowing of things to come:

    —————————————————————–
    “With the advent of NAFTA, the drug gangs expanded into many legitimate businesses which could be used for smuggling. U.S. officials have reported on their purchase of airlines, trucking companies, new and used car dealerships, petroleum transport corporations and others. However, the increasing use of intermediaries as owners have made it almost impossible to trace their activities in detail. Operations of this size could not be carried out without at least the passive cooperation of key government agencies. In fact,corruption of the Mexican authorities by the drug cartels is notorious. A former Baja California Mayor showed how hopeless enforcement is by stating that he could pay police $ 300 per month while the drug cartels were offering $1,000 per week.”
    http://www.siliconv.com/trade/tradepapers/drugs.html

    Like it or not, reinvestment of the profits of foreign organized crime groups back into the legitimate U.S. economy does have benefits and likely is responsible for many jobs here.

    That’s just the cold reality though and is a phenomenon that is unlikely to ever change.

    Report Post »  
  • CrawfishFestival2
    Posted on June 12, 2012 at 10:33pm

    …..it was common for buyers based out of the country to pay cash for horses, but that several transactions were noteworthy for their value.

    “It didn’t raise a lot of eyebrows when these guys came to the sales and started paying cash. What raised eyebrows was the quality of the horses they were buying and the amount of money these mares cost,” Schauf said.

    *******
    Didn’t Michelle Obama take a quick trip to Oklahoma? Or, was it Obama?

    Report Post »  
  • CrawfishFestival2
    Posted on June 12, 2012 at 10:28pm

    I wonder how many times these people = ILLEGAL ALIENS – VOTED in our elections in the USA!

    Report Post »  
    • SUNTZU
      Posted on June 12, 2012 at 11:37pm

      I was thinking the same thing about the horses.

      Report Post » SUNTZU  
  • 65Mustang
    Posted on June 12, 2012 at 10:15pm

    Does anyone think that Holder, Obama and his money-laundering agents are involved in this illegal operation also…I think so.

    Report Post »  
    • subic
      Posted on June 13, 2012 at 1:07am

      Me too. They’re letting it happen. Barry & Holder are the biggest drug kingpins of them all..lots of $$ to be laundered & passed around!

      BTW I like how the FBI is playing dress up GI Joe there.

      Report Post » subic  
  • Rayford
    Posted on June 12, 2012 at 10:01pm

    Well we let non-citizens buy property here in the good ol USA. So what do you expect? You can lease property in Mexico if a non citizen, but it is subject to seizure at any time for any reason.

    Other countries may or may not have similar rules.

    Report Post »  
    • Passerby
      Posted on June 12, 2012 at 10:09pm

      We let foreigners donate all the money they want to out politicians.

      End that and all out problems are solved.

      Report Post » Passerby  
  • Snowleopard {gallery of cat folks}
    Posted on June 12, 2012 at 10:00pm

    What else is new, the worlds criminal organizations have been doing so for ages; the main problem is the uttermost corruption in the DC area who allow them to do so. Its long past time to clean out the cartels in the states.

    Report Post » Snowleopard {gallery of cat folks}  
  • Brother Winston Smith
    Posted on June 12, 2012 at 9:49pm

    Hmmm… I noticed the “story” neither includes the word “illegal” or “alien.”

    Report Post » Brother Winston Smith  
    • Passerby
      Posted on June 12, 2012 at 10:01pm

      Good Point!

      Report Post » Passerby  
    • CrawfishFestival2
      Posted on June 12, 2012 at 10:27pm

      EVERY person ARRESTED in The USA – that is in this country – ILLEGALLY – should be referred to = “identified” – as an ILLEGAL ALIEN.

      NO EXCEPTIONS!

      Report Post »  
  • AxelPhantom
    Posted on June 12, 2012 at 9:49pm

    There is a reason The Mob was also involved in horse racing.

    Report Post »  
  • Brother Winston Smith
    Posted on June 12, 2012 at 9:44pm

    Gracias, demcorats y gracias republicans. Puedo tener otro?

    Report Post » Brother Winston Smith  
  • Passerby
    Posted on June 12, 2012 at 9:43pm

    There are a host of special interest groups that keep the illegal immigration. A real witches brew. Got the Hispanics, of course, and those businessmen that benefit from the cheap labor, and those, bless them, that worry about the poor and can’t say no, and of course, knee jerk leftists that see their marching orders and blindly follow, and other minorities that are glad to see the majority not a majority any more, and libertarians that think if the government goes away everything will be swell, on and on…

    But there’s also the Cartels. No one is more interested in keeping those borders open (and drugs illegal) than the Cartels.

    And they are here just as much as they are there.

    And money talks here too.

    As does fear.

    Report Post » Passerby  
  • lukerw
    Posted on June 12, 2012 at 9:40pm

    Some would sell their Soul… for Money!

    Report Post » lukerw  
  • Sirfoldallot
    Posted on June 12, 2012 at 9:39pm

    Yeaj , real easy here folks oklahoma is in the heart of our nation with a through route for trucking. Simple right, bet there r more there than u think.

    Report Post » Sirfoldallot  
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