Illicit Finance

Traffickers operating in the North Florida HIDTA region, particularly Mexican DTOs, typically transport illicit drug proceeds in bulk to Atlanta or Southwest Border states for further laundering. Additionally, many members of Mexican DTOs and criminal groups transport large portions of their drug proceeds to friends and family in Mexico, using either private or commercial vehicles. Mexican DTOs in the region sometimes structure deposits into numerous bank accounts and electronically transfer the funds to accounts in Mexico or Southwest Border states. Mexican DTOs also launder illicit funds through money remitters--most of whom are unlicensed--and, more recently, by converting drug proceeds to stored value cards and then mailing the cards to locations around the world.

DTOs and criminal groups in the region also use front companies and cash-intensive businesses to launder drug proceeds. Restaurants, clothing stores, used car dealerships, and offices related to the construction industry are commonly used by traffickers in the region as fronts for drug enterprises. Some unscrupulous construction companies hire illegal immigrants and offer to pay their wages in drugs instead of currency. The employees gain the benefit of receiving hidden, nontaxable income but subsequently must either sell or trade the drugs to acquire cash. Additionally, most retail and low-level wholesale cocaine and marijuana distributors operating in the HIDTA launder drug proceeds by purchasing tangible assets such as high-value vehicles, vehicle accessories, or jewelry.

A significant and growing money laundering trend developing among traffickers in Jacksonville involves investing drug proceeds in real estate ventures. In doing so, traffickers attempt to conceal the true origin of their funds by purchasing real estate through multiple, layered transactions; they make additional money through real estate sales.

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