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Leader of Professional Money Laundering Ring Pleads Guilty in Texas

2013-02-12 · Press release

Mentions 1960 Verified 1960

Summary: One of the leaders of an organization that laundered more than $20 million through “shell” business bank accounts pleaded guilty today in federal court in Houston.

One of the leaders of an organization that laundered more than $20 million through “shell” business bank accounts pleaded guilty today in federal court in Houston, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Enrique Morales, 42, of Houston and Guadalajara, Mexico, pleaded guilty today before U.S. District Judge Lee H. Rosenthal in the Southern District of Texas to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.
  
In August 2012, a federal grand jury in Houston indicted Morales and four of his co-defendants for their roles in operating a money transmitting business that provided professional money laundering services to narcotics traffickers as part of a scheme commonly referred to as “the Black Market Peso Exchange.”  According to the indictment, from October 2009 to September 2011, the defendants placed U.S. currency obtained through the sale of drugs in the U.S. into bank accounts held in the name of shell companies, which were owned and operated by the defendants.  The money was then transferred to different accounts in the U.S. and Mexico.  In exchange, pesos were transferred to bank accounts owned by the defendants’ clients.   
 
A total of five people arrested as part of this scheme have now been convicted.  Willie Whitehurst, Fulton Smith and Anthony Foster, all from Houston and money couriers for the organization, previously pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.  Smith, 40, pleaded guilty yesterday, while Whitehurst, 44, and Foster, 47, pleaded guilty in January 2013.  An office manager for the organization, Sarah Combs, 48, of Dickinson, Texas, previously pleaded guilty to conspiracy to operate an unlicensed money transmitting business.

Foster, Whitehurst and Combs are scheduled for sentencing on May 9, 2013, while the sentencings of Smith and Morales are set for May 29, 2013.  For the money laundering conspiracy, Morales, Whitehurst, Foster and Smith face up to 20 years in federal prison and a $500,000 fine, or twice the value of the property involved in the offense, whichever is greater.  All five defendants face up to five years in federal prison and a fine of $250,000 for conspiracy to operate an unlicensed money transmitting business.
 
The case was investigated by the special agents with the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney Ted Imperato of the Southern District of Texas and Keith Liddle, trial attorney in the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section.

The Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act and other related statutes.  The unit’s prosecutions generally focus on three types of violators: financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system; professional money launderers and gatekeepers who provide their services to serious criminal organizations; and individuals and entities engaged in using the latest and most sophisticated money laundering techniques and tools.

district_office
Southern District of Texas
usa_name
Kenneth Magidson
event_type
plea
judge_name
Lee H. Rosenthal
judge_title
U.S. District Judge
case_number
max_penalty_text
up to 20 years in federal prison
sentence_summary
money_amounts
$20 million, $500,000, $250,000
crypto_assets
statutes_json
timeline_json
press_release_url
https://www.justice.gov/archives/opa/pr/leader-professional-money-laundering-ring-pleads-guilty-texas
extras_json
participant_id name role title organization location age nationality status
3023 Lanny A. Breuer prosecutor Assistant Attorney General Justice Department’s Criminal Division
3024 Kenneth Magidson prosecutor U.S. Attorney Southern District of Texas Texas
3025 Enrique Morales defendant Houston and Guadalajara, Mexico 42 Mexican pleaded guilty
3026 Willie Whitehurst defendant Houston, Texas 44 pleaded guilty
3027 Fulton Smith defendant Houston, Texas 40 pleaded guilty
3028 Anthony Foster defendant Houston, Texas 47 pleaded guilty
3029 Sarah Combs defendant Dickinson, Texas 48 pleaded guilty
3030 Lee H. Rosenthal judge U.S. District Judge Southern District of Texas Texas
3031 Ted Imperato prosecutor Assistant U.S. Attorney Southern District of Texas Texas
3032 Keith Liddle prosecutor trial attorney Criminal Division’s Asset Forfeiture and Money Laundering Section
agency_id agency_name abbreviation role office_location agents_mentioned contribution
1984 Drug Enforcement Administration DEA investigation Investigated the case as part of the money laundering ring operation
1985 Internal Revenue Service – Criminal Investigation IRS-CI investigation Investigated the case as part of the money laundering ring operation
1986 U.S. Attorney's Office for the Southern District of Texas prosecution Southern District of Texas Ted Imperato Prosecuting the case with the Criminal Division’s Asset Forfeiture and Money Laundering Section
1987 Criminal Division’s Asset Forfeiture and Money Laundering Section prosecution Keith Liddle Prosecuting the case through the Money Laundering and Bank Integrity Unit
charge_id charge_description statute severity max_penalty fine_amount defendant status participant_id cl_docket_id count_num is_1960 verified_1960 source updated_at
1587 conspiracy to commit money laundering 20 years in prison $500,000 Enrique Morales pleaded guilty 0 enrichment
1589 conspiracy to commit money laundering 20 years in prison $500,000 Willie Whitehurst pleaded guilty 0 enrichment
1591 conspiracy to commit money laundering 20 years in prison $500,000 Fulton Smith pleaded guilty 0 enrichment
1593 conspiracy to commit money laundering 20 years in prison $500,000 Anthony Foster pleaded guilty 0 enrichment
1588 conspiracy to operate an unlicensed money transmitting business 5 years in prison $250,000 Enrique Morales pleaded guilty 1 enrichment 2026-09-16T19:46:00+00:00
1590 conspiracy to operate an unlicensed money transmitting business 5 years in prison $250,000 Willie Whitehurst pleaded guilty 1 enrichment 2026-09-16T19:46:00+00:00
1592 conspiracy to operate an unlicensed money transmitting business 5 years in prison $250,000 Fulton Smith pleaded guilty 1 enrichment 2026-09-16T19:46:00+00:00
1594 conspiracy to operate an unlicensed money transmitting business 5 years in prison $250,000 Anthony Foster pleaded guilty 1 enrichment 2026-09-16T19:46:00+00:00
1595 conspiracy to operate an unlicensed money transmitting business 5 years in prison $250,000 Sarah Combs pleaded guilty 1 enrichment 2026-09-16T19:46:00+00:00
3607 operate an unlicensed money transmitting business 1 press 2026-09-16T19:46:00+00:00
3608 unlicensed money transmitting business 1 press 2026-09-16T19:46:00+00:00
fin_id action_type amount currency description asset_type defendant status
1734 fine $500,000 USD Maximum fine for money laundering conspiracy cash Enrique Morales pending
1735 fine $500,000 USD Maximum fine for money laundering conspiracy cash Willie Whitehurst pending
1736 fine $500,000 USD Maximum fine for money laundering conspiracy cash Fulton Smith pending
1737 fine $500,000 USD Maximum fine for money laundering conspiracy cash Anthony Foster pending
1738 fine $250,000 USD Maximum fine for conspiracy to operate an unlicensed money transmitting business cash Enrique Morales pending
1739 fine $250,000 USD Maximum fine for conspiracy to operate an unlicensed money transmitting business cash Willie Whitehurst pending
1740 fine $250,000 USD Maximum fine for conspiracy to operate an unlicensed money transmitting business cash Fulton Smith pending
1741 fine $250,000 USD Maximum fine for conspiracy to operate an unlicensed money transmitting business cash Anthony Foster pending
1742 fine $250,000 USD Maximum fine for conspiracy to operate an unlicensed money transmitting business cash Sarah Combs pending
victim_id victim_type description number_affected loss_amount geographic_scope vulnerability_factors impact_description
1027 financial institution bank accounts held in the name of shell companies $20,000,000 United States and Mexico money laundering through shell business bank accounts
quote_id quote_text speaker_name speaker_title speaker_organization quote_type context significance
3460 One of the leaders of an organization that laundered more than $20 million through “shell” business bank accounts pleaded guilty today in federal court in Houston U.S. Department of Justice statement Announcement of guilty plea Introduces the case and the main defendant
3461 Enrique Morales, 42, of Houston and Guadalajara, Mexico, pleaded guilty today before U.S. District Judge Lee H. Rosenthal in the Southern District of Texas to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business U.S. Department of Justice statement Details of the guilty plea Specifies the charges and the defendant's actions
3462 In August 2012, a federal grand jury in Houston indicted Morales and four of his co-defendants for their roles in operating a money transmitting business that provided professional money laundering services to narcotics traffickers as part of a scheme commonly referred to as “the Black Market Peso Exchange” U.S. Department of Justice statement Background of the indictment Explains the broader scheme and the involvement of multiple defendants
3463 A total of five people arrested as part of this scheme have now been convicted U.S. Department of Justice statement Summary of convictions Highlights the extent of the operation and the number of convictions
3464 For the money laundering conspiracy, Morales, Whitehurst, Foster and Smith face up to 20 years in federal prison and a $500,000 fine, or twice the value of the property involved in the offense, whichever is greater U.S. Department of Justice statement Potential sentencing details Outlines the severity of the penalties for the defendants
3465 The Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act and other related statutes U.S. Department of Justice statement Description of the unit's role Provides context on the unit handling the case
theme_id theme_name description significance related_statutes geographic_scope temporal_aspects stakeholders
2229 Law Enforcement Agencies DEA and IRS-CI conducted the investigation, while prosecutors from DOJ's units handled prosecution. Key in uncovering and prosecuting the criminal activities. National During the investigation and prosecution phases DEA, IRS-CI, DOJ prosecutors

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