Borderland Beat
Carlos Nayen Borbolla was one of 19 people indicted last year in a massive money laundering scheme that law enforcement officials say poured millions of dollars in drug proceeds into the American quarter horse industry, profiting leaders of one of the most ruthless criminal organizations in Mexico. As that case heads to trial in Austin the 15th of April, new records say Nayen also played part in a large operation running guns from Texas, Arizona, New Mexico and Oklahoma to an illegal firearms trafficking organization in the North Texas area.
Weapons and cash were smuggled south into Mexico, while the group moved drugs north across the border to the United States, using proceeds to buy automobiles, houses, jewelry and other valuable assets, according to an indictment transferred last month to a federal court in Austin under the Western District of Texas.
The case, the majority of which remains sealed, was filed last year in an Eastern District of Texas court, a month before another indictment, handed up by a Central Texas grand jury in May, listed Nayen among suspects who helped buy, train and race horses under companies used to launder money for members of the violent Zetas cartel.
Benefiting from the horse industry scheme, court records show, were Miguel Angel Treviño Morales, believed to be the highest and most feared leaders of the Mexican criminal organization, and his two brothers, Oscar Omar and Jose Treviño Morales.
Nayen and Jose Treviño were among more than a dozen people arrested last summer in a series of raids at homes and ranches across the Southwest. The two other Treviño brothers haven’t been caught.
The original indictment against Nayen shows he was responsible for making payments for the care and upkeep of the quarter horses using bulk currency, wire transfers and other forms of financing from Mexico. He also arranged for more than $500,000 in payments when Jose Treviño sold a variety of horses, including one named Number One Cartel and another named Forty Force.
Government officials said the extent of Nayen’s involvement became more apparent as the investigation continued. The case later filed against him was brought to the Austin division to be handled with the trial, said Special Agent Mike Lemoine, a spokesman for the Internal Revenue Service’s criminal investigation division.
“These are ongoing investigations,” Lemoine said. “They don’t stop after the first indictment. We continue to investigate the individuals and the organizations to make sure we are taking out the entire group of alleged criminals.”
But Lemoine and officials with the DEA, FBI and the U.S. Attorney’s office couldn’t provide comment on specifics as prosecution is pending. Nayen’s attorney, Frank Rubio, based in Miami, also declined to comment.
Nayen, known as “Carlito” or “Pilotos,” is listed as number 21 on the additional indictment, which appears to charge about 40 people, all whose names have been redacted.
The records show that from about January 2007 to April 2012, Nayen and others bought and transported guns, magazines, and ammunition to the North Texas trafficking organization, which would then smuggle the weapons into Mexico.
In one occasion on March 6, 2010, a member of the criminal group moved 37 firearms and ammunition that were purchased at a gun show, while a month later another suspect transported 28 firearms and ammunition in a truck and trailer, the records said.
In Maverick County, members of the group were found to have owned 47 rifles in June 2010 and about 23 rifles in August of that year, some of which had serial numbers that were destroyed, and the collection included AK-47s and AR-15s, the filings said. Law enforcement officials discovered one suspect who had on him five .223-caliber rifles, $5,900 in cash and a bulletproof vest, the records said.
The criminal group also moved drugs and more than $1 million from from January 2007 to April 2012, funneling the goods to and from Mexico across Dallas, Fort Worth, Rowlett, Hillsboro and other North Texas cities, according to the filings.
In October 2010 in Mesquite, law enforcement officials said two of the defendants had about 287 kilograms of cocaine, 14 pounds of methamphetamine, 95 pounds of marijuana, 5 pounds of crack and about $412,000 in cash. The cocaine was delivered to Plano, while the currency was prepared for transportation back to Mexico, the filings said.
Court records show federal agents found that one of the suspects kept more than $50,000 in cash and $370,000 worth of jewelry hidden in two safe-deposit boxes in February 2011, while another that year in Rowlett stuffed more than $1.7 million in four bags left in the back of a vehicle.
The U.S. government accuses that the purchase of quarter horses was part of the method launder millions of dollars in Zeta drug profits. Five Treviño family members along with a dozen others, were named in the criminal indictment unveiled last June. José Treviño Morales, a naturalized U.S. citizen, has been in custody near Austin since his arrest in June in Oklahoma.
Now, Finn has an "avalanche" of evidence ranging from documents to transcripts of recordings, supposedly translated from Spanish to English. A disc created only a stack of paper two meters high and there are more than 100 discs, Finn said."This is not a test of ambush. This is a trial by avalanche. "
The horse trial began Monday April 15 in Austin. Jose Treviño Morales , a brother of two top leaders of Los Zetas. As U.S. District Judge Sam Sparks appointed by former President George W. Bush, opened the proceedings, defense lawyers filed documents listing potential evidence.
Judge Sparks said Los Zetas have become the biggest cartel in Mexico, operating in many countries. The five defendants are accused of buying racehorses to hide the cartel's illegal drug profits. Prosecutors say Morales disguised the drug money profits through the purchase of racehorses at a ranch in Oklahoma. He has been charged with conspiracy in federal court in Texas.
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| Carlos Miguel Nayen Borbolla-Number 5 |
Weapons and cash were smuggled south into Mexico, while the group moved drugs north across the border to the United States, using proceeds to buy automobiles, houses, jewelry and other valuable assets, according to an indictment transferred last month to a federal court in Austin under the Western District of Texas.
The case, the majority of which remains sealed, was filed last year in an Eastern District of Texas court, a month before another indictment, handed up by a Central Texas grand jury in May, listed Nayen among suspects who helped buy, train and race horses under companies used to launder money for members of the violent Zetas cartel.
Benefiting from the horse industry scheme, court records show, were Miguel Angel Treviño Morales, believed to be the highest and most feared leaders of the Mexican criminal organization, and his two brothers, Oscar Omar and Jose Treviño Morales.
Nayen and Jose Treviño were among more than a dozen people arrested last summer in a series of raids at homes and ranches across the Southwest. The two other Treviño brothers haven’t been caught.
Government officials said the extent of Nayen’s involvement became more apparent as the investigation continued. The case later filed against him was brought to the Austin division to be handled with the trial, said Special Agent Mike Lemoine, a spokesman for the Internal Revenue Service’s criminal investigation division.
“These are ongoing investigations,” Lemoine said. “They don’t stop after the first indictment. We continue to investigate the individuals and the organizations to make sure we are taking out the entire group of alleged criminals.”
But Lemoine and officials with the DEA, FBI and the U.S. Attorney’s office couldn’t provide comment on specifics as prosecution is pending. Nayen’s attorney, Frank Rubio, based in Miami, also declined to comment.
Nayen, known as “Carlito” or “Pilotos,” is listed as number 21 on the additional indictment, which appears to charge about 40 people, all whose names have been redacted.
The records show that from about January 2007 to April 2012, Nayen and others bought and transported guns, magazines, and ammunition to the North Texas trafficking organization, which would then smuggle the weapons into Mexico.
In one occasion on March 6, 2010, a member of the criminal group moved 37 firearms and ammunition that were purchased at a gun show, while a month later another suspect transported 28 firearms and ammunition in a truck and trailer, the records said.
In Maverick County, members of the group were found to have owned 47 rifles in June 2010 and about 23 rifles in August of that year, some of which had serial numbers that were destroyed, and the collection included AK-47s and AR-15s, the filings said. Law enforcement officials discovered one suspect who had on him five .223-caliber rifles, $5,900 in cash and a bulletproof vest, the records said.
The criminal group also moved drugs and more than $1 million from from January 2007 to April 2012, funneling the goods to and from Mexico across Dallas, Fort Worth, Rowlett, Hillsboro and other North Texas cities, according to the filings.
In October 2010 in Mesquite, law enforcement officials said two of the defendants had about 287 kilograms of cocaine, 14 pounds of methamphetamine, 95 pounds of marijuana, 5 pounds of crack and about $412,000 in cash. The cocaine was delivered to Plano, while the currency was prepared for transportation back to Mexico, the filings said.
Court records show federal agents found that one of the suspects kept more than $50,000 in cash and $370,000 worth of jewelry hidden in two safe-deposit boxes in February 2011, while another that year in Rowlett stuffed more than $1.7 million in four bags left in the back of a vehicle.
Dallas criminal lawyer David Finn struggled to a delay the start of the high profile money laundering trial. U.S. District Judge Sam Sparks denied the motion, according to federal documents released in the U.S. District CourtWestern District of Texas.
Finn represents José Treviño Morales, brother of Zeta kingpin Miguel Angel Trevino Morales. The family moved to Lexington, Oklahoma, in January 2012 to operate a large ranch of more than 400 quarter horses, as reported in October. A little over a year, José Treviño Morales, his wife Zulema and her family lived on a street with potholes in Balch Springs.
The U.S. government accuses that the purchase of quarter horses was part of the method launder millions of dollars in Zeta drug profits. Five Treviño family members along with a dozen others, were named in the criminal indictment unveiled last June. José Treviño Morales, a naturalized U.S. citizen, has been in custody near Austin since his arrest in June in Oklahoma.
Finn said that U.S. government lawyers delayed the release favorable evidence to his client. U.S. Assistant Attorney Doug Gardner said in court papers that defendants have been provided materials "as soon as it is available."
Now, Finn has an "avalanche" of evidence ranging from documents to transcripts of recordings, supposedly translated from Spanish to English. A disc created only a stack of paper two meters high and there are more than 100 discs, Finn said."This is not a test of ambush. This is a trial by avalanche. "
On last Sunday, federal records show, Finn received a transcript of wiretaps, . Contains this conversation: "What does your brother have to do with it? Your brother has nothing ... he's clean, he's just a normal guy ... he has nothing to do with this and the other is pure ... "
The US transcripts used are sometimes unintelligible.It isn't clear who is talking to whom.
U.S. government lawyers, said one of the persons included in a taped call is now dead, according to documents.
U.S. government lawyers, said one of the persons included in a taped call is now dead, according to documents.
Finn refers to his client, Jose Treviño Morales, as "the common man." He argues that his client is innocent.
"If my client is guilty of anything, is to be the brother of two suspects," said Finn, a former criminal judge in Dallas County and former federal prosecutor in Dallas/Fort Worth. "If he is guilty of anything, is being a little naive."
"If my client is guilty of anything, is to be the brother of two suspects," said Finn, a former criminal judge in Dallas County and former federal prosecutor in Dallas/Fort Worth. "If he is guilty of anything, is being a little naive."
The horse trial began Monday April 15 in Austin. Jose Treviño Morales , a brother of two top leaders of Los Zetas. As U.S. District Judge Sam Sparks appointed by former President George W. Bush, opened the proceedings, defense lawyers filed documents listing potential evidence.Judge Sparks said Los Zetas have become the biggest cartel in Mexico, operating in many countries. The five defendants are accused of buying racehorses to hide the cartel's illegal drug profits. Prosecutors say Morales disguised the drug money profits through the purchase of racehorses at a ranch in Oklahoma. He has been charged with conspiracy in federal court in Texas.
