STRATEGIC PARTNERS
September 12, 2002
WATSONVILLE, Calif. -- An owner of markets in four California cities was arrested on Sept. 12 on suspicion of laundering more than $11 million in drug money through ATMs and a check-cashing scheme, according to a report in the Santa Cruz Sentinel.
Javier Vasquez, owner of the La Esperanza markets in Watsonville, Santa Cruz, Salinas and San Jose, was arrested after a two-year investigation by the FBI, Monterey Sheriff's Office, Santa Cruz County prosecutors and the U.S. Customs Service.
His wife, Emilia Vasquez, business manager for the chain of markets, and his adult daughter, Carina Vasquez, also were arrested, according to the report.
Vasquez and two other local men also were accused of conspiracy to deal cocaine and methamphetamine. Watsonville resident Antonio Garcia, alleged in a federal indictment to have attempted to distribute five kilograms of cocaine on March 29, 2000, was arrested in connection with the case. Another suspect, Carlos Alvarado, remained at large Sept. 12. He is alleged in the indictment to have committed conspiracy to distribute the cocaine with Garcia.
According to the indictment, between June 1998 and May 2000 the Vasquezes accepted $841,000 from a government agent who told them he earned the money selling drugs. In truth, all of the cash was government money, the U.S. Attorney's Office said. The Vasquezes allegedly used the money to cash checks and operate ATMs at their markets.
A financial analysis of the chain store's books from July 1, 1998, to June 30, 2000, showed that the Vasquezes laundered about $11.4 million of currency received from unknown persons, according to the indictment.
Between May and July 2000, Javier Vasquez allegedly accepted $50,000 in cash from a government agent who said it was drug money. He is alleged to have laundered $40,000 of it by wiring it to an account in Canada.
The maximum statutory penalty for each of the 11 counts of money laundering is 20 years in prison and a $500,000 fine. The conspiracy charge carries a 10-year minimum mandatory sentence and a fine of $4 million. The indictment also seeks forfeiture of the $11 million that was allegedly laundered.
