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September 28, 2006
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Treasury Exposes Fronts for the Arellano Felix Drug Kingpin Organization
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today identified five companies and six individuals that have acted as fronts for Manuel Aguirre Galindo, a key leader of the Arellano Felix Organization (AFO). On June 1, 2004, the President named the AFO as a drug kingpin pursuant to the Foreign Narcotics Kingpin Designation Act ("Kingpin Act").
"Manuel Aguirre Galindo, a fugitive from U.S. justice, has used a network of financial associates and real estate companies to hide and launder his drug monies," said Adam J. Szubin, Director of OFAC. "Today's action exposes his accomplices and front companies and cuts them off from the United States and its financial institutions."
This action targets long-term financial associates of Aguirre Galindo, including Alberto Alfredo Valencia Martinez, Urbano Hernandez Somero, and Aguirre Galindo's son, Manuel Francisco Aguirre Ramos. Aguirre Galindo advanced his criminal enterprise with the help of these individuals, who were used to incorporate, administer, and hold front companies on his behalf. Notable among these companies are the Tijuana real estate firms being named today – Playa Mar S.A. de C.V., Inmobiliaria Esparta S.A. de C.V., Inmobiliaria La Provincia S.A. de C.V., Inmobiliaria Estado 29 S.A. de C.V., and Inmobiliaria Tijuana Costa S.A. de C.V.. A number of the Aguirre Galindo associates named in today's designation participated in all facets of Manuel Aguirre Galindo's illicit business dealings.
Manuel Aguirre Galindo is a fugitive wanted by the Drug Enforcement Administration (DEA) and the U.S. State Department has issued a $2 million dollar reward for information leading to his arrest. Aguirre Galindo has a long criminal history as a major Mexican drug trafficker and has been associated with the Arellano Felix Organization for over 15 years. In January 2002, Aguirre Galindo was designated by OFAC pursuant to the Kingpin Act. In July 2003, he and other senior members of the AFO were indicted for narcotics trafficking, money laundering and conducting the affairs of an illegal enterprise through a pattern of racketeering activity (RICO).
Today's action is part of an ongoing U.S. Government effort under the Kingpin Act to apply financial measures against foreign narcotics trafficking kingpins worldwide. This effort involves close inter-agency coordination. In particular, this OFAC action would not have been possible without key support from the DEA. A total of 284 organizations, individuals and businesses in 16 foreign countries have been designated under the Kingpin Act.
Today's designation blocks any assets of the 11 designees found within U.S. jurisdiction and prohibits U.S. persons from doing business with these individuals and entities. Penalties for violations of the Kingpin Act range from civil penalties of up to $1,075,000 per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines of up to $5,000,000. Criminal fines for corporations may reach $10,000,000. Other individuals face up to 10 years in prison for criminal violations of the Kingpin Act.
For a complete list of the individuals and entities designated today, please visit:
http://www.treasury.gov/offices/enforcement/ofac/actions/index.shtml.
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