Illicit Finance

Mexican DTOs consolidate the significant proceeds derived from drug sales in Lake County and surrounding market areas into bulk cash shipments that are smuggled into Mexico. These shipments are typically made using private and commercial vehicles, including tractor-trailers, many of which have been modified with hidden compartments. Money services businesses (MSBs) such as money remitters and check-cashing firms are plentiful in Lake County and are also utilized by Mexican DTOs to launder drug proceeds. These businesses enable traffickers to move proceeds outside the United States in amounts below the threshold set by the Bank Secrecy Act (BSA) with relative anonymity. Mexican DTOs also purchase small, cash-based businesses such as restaurants and used car lots to commingle illicit proceeds with legitimate funds.

Street gang members and independent dealers typically launder drug proceeds through the purchase of small, cash-based businesses, luxury items, and real estate. Law enforcement authorities report that members of Latin Kings have purchased government "project" homes that need renovations in Hammond and East Chicago. These homes were reportedly purchased and repaired using drug proceeds and then sold, creating the appearance of legitimate profit. In addition, Lake County has four riverboat casinos, in which local traffickers use drug proceeds to purchase gaming chips. The chips are then cashed out, or gambling winnings are legally reported, making the winnings appear to be legitimate.

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