$20+ Million ‘Black Market Peso Exchange’ Scheme Sends Several To Prison
2013-06-26 · Press release
HOUSTON – One of the leaders and several members of an organization that laundered more than $20 million through “shell” business bank accounts has now been ordered to federal prison, United States Attorney Kenneth Magidson announced today along with Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Enrique Morales, 43, of Houston and Guadalajara, Mexico, pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business earlier this year as did Willie Whitehurst, 45, Fulton Smith, 41, and Anthony Foster, 47, all from Houston and money couriers for the organization. Sarah Combs, 49, of Dickinson, pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
Today, U.S. District Judge U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, sentenced Morales, determined to be a leader in the conspiracy, to 188 months in prison. Foster received a sentence of 121 months, while Smith and Combs received total prison terms of 30 and 24 months, respectively. Whitehurst is scheduled to be sentenced on August 26.
In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the name of the organization’s “shell” companies. The money then was transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients.
Smith, Combs and Foster were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Morales will remain in custody.
The case was investigated by the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case.
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- https://www.justice.gov/usao-sdtx/pr/20-million-black-market-peso-exchange-scheme-sends-several-prison
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| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 2884 | Kenneth Magidson | prosecutor | United States Attorney | U.S. Attorney's Office for the Southern District of Texas | Houston, Texas | |||
| 2885 | Mythili Raman | government official | Acting Assistant Attorney General | Justice Department’s Criminal Division | ||||
| 2886 | Enrique Morales | defendant | Houston, Texas and Guadalajara, Mexico | 43 | pleaded guilty | |||
| 2887 | Willie Whitehurst | defendant | Houston, Texas | 45 | pleaded guilty | |||
| 2888 | Fulton Smith | defendant | Houston, Texas | 41 | pleaded guilty | |||
| 2889 | Anthony Foster | defendant | Houston, Texas | 47 | pleaded guilty | |||
| 2890 | Sarah Combs | defendant | Dickinson, Texas | 49 | pleaded guilty | |||
| 2891 | Lee H. Rosenthal | judge | U.S. District Judge | U.S. District Court for the Southern District of Texas | Houston, Texas | |||
| 2892 | Ted Imperato | prosecutor | Assistant United States Attorney | U.S. Attorney's Office for the Southern District of Texas | Houston, Texas | |||
| 2893 | Keith Liddle | prosecutor | Trial Attorney | Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1890 | Drug Enforcement Administration | DEA | investigation | Investigated the case | ||
| 1891 | Internal Revenue Service – Criminal Investigation | IRS-CI | investigation | Investigated the case | ||
| 1892 | U.S. Attorney's Office for the Southern District of Texas | SDTX | prosecution | Southern District of Texas | Ted Imperato | Prosecuted the case |
| 1893 | Criminal Division’s Asset Forfeiture and Money Laundering Section | prosecution | Keith Liddle | Prosecuted the case via 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1487 | conspiracy to commit money laundering | Enrique Morales | pleaded guilty | 0 | enrichment | |||||||||
| 1489 | conspiracy to commit money laundering | Willie Whitehurst | pleaded guilty | 0 | enrichment | |||||||||
| 1491 | conspiracy to commit money laundering | Fulton Smith | pleaded guilty | 0 | enrichment | |||||||||
| 1493 | conspiracy to commit money laundering | Anthony Foster | pleaded guilty | 0 | enrichment | |||||||||
| 1488 | conspiracy to operate an unlicensed money transmitting business | Enrique Morales | pleaded guilty | 1 | enrichment | 2026-09-16T19:46:00+00:00 | ||||||||
| 1490 | conspiracy to operate an unlicensed money transmitting business | Willie Whitehurst | pleaded guilty | 1 | enrichment | 2026-09-16T19:46:00+00:00 | ||||||||
| 1492 | conspiracy to operate an unlicensed money transmitting business | Fulton Smith | pleaded guilty | 1 | enrichment | 2026-09-16T19:46:00+00:00 | ||||||||
| 1494 | conspiracy to operate an unlicensed money transmitting business | Anthony Foster | pleaded guilty | 1 | enrichment | 2026-09-16T19:46:00+00:00 | ||||||||
| 1495 | conspiracy to operate an unlicensed money transmitting business | Sarah Combs | pleaded guilty | 1 | enrichment | 2026-09-16T19:46:00+00:00 | ||||||||
| 3585 | operate an unlicensed money transmitting business earlier this year as did Willie Whitehurst, 45, Fulton Smith, 41, and | 1 | press | 2026-09-16T19:46:00+00:00 | ||||||||||
| 3586 | operate an unlicensed money transmitting business | 1 | press | 2026-09-16T19:46:00+00:00 | ||||||||||
| 3587 | unlicensed money transmitting business earlier this year as did Willie Whitehu | 1 | press | 2026-09-16T19:46:00+00:00 | ||||||||||
| 3588 | unlicensed money transmitting business | 1 | press | 2026-09-16T19:46:00+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 1563 | seizure | $20 million | USD | U.S. currency gained through the sale of drugs in U.S. cities | cash | Enrique Morales | ordered |
| 1564 | seizure | $20 million | USD | U.S. currency gained through the sale of drugs in U.S. cities | cash | Willie Whitehurst | ordered |
| 1565 | seizure | $20 million | USD | U.S. currency gained through the sale of drugs in U.S. cities | cash | Fulton Smith | ordered |
| 1566 | seizure | $20 million | USD | U.S. currency gained through the sale of drugs in U.S. cities | cash | Anthony Foster | ordered |
| 1567 | seizure | $20 million | USD | U.S. currency gained through the sale of drugs in U.S. cities | cash | Sarah Combs | ordered |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 854 | financial institution | bank accounts | $20 million | U.S. cities and Mexico | money laundering through shell business bank accounts |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 3135 | One of the leaders and several members of an organization that laundered more than $20 million through “shell” business bank accounts has now been ordered to federal prison | U.S. Department of Justice | statement | Announcement of prison sentences for members of a money laundering organization | Introduces the case and the severity of the crime | ||
| 3136 | Enrique Morales, 43, of Houston and Guadalajara, Mexico, pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business earlier this year as did Willie Whitehurst, 45, Fulton Smith, 41, and Anthony Foster, 47, all from Houston and money couriers for the organization. Sarah Combs, 49, of Dickinson, pleaded guilty to conspiracy to operate an unlicensed money transmitting business. | U.S. Department of Justice | statement | Details of the guilty pleas by the defendants | Provides information on the defendants and their charges | ||
| 3137 | Today, U.S. District Judge U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, sentenced Morales, determined to be a leader in the conspiracy, to 188 months in prison. Foster received a sentence of 121 months, while Smith and Combs received total prison terms of 30 and 24 months, respectively. Whitehurst is scheduled to be sentenced on August 26. | U.S. Department of Justice | statement | Sentencing details for the defendants | Outlines the prison sentences given to the defendants | ||
| 3138 | In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. | U.S. Department of Justice | statement | Indictment of the defendants | Describes the indictment and the nature of the scheme | ||
| 3139 | From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the name of the organization’s “shell” companies. The money then was transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients. | U.S. Department of Justice | statement | Description of the money laundering scheme | Details the mechanics of the money laundering operation | ||
| 3140 | The case was investigated by the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation. | U.S. Department of Justice | statement | Investigation details | Identifies the agencies involved in the investigation | ||
| 3141 | Assistant United States Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case. | U.S. Department of Justice | statement | Prosecution details | Names the prosecutors handling the case |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 2111 | Money Laundering | Laundered over $20 million through shell business bank accounts to conceal drug proceeds. | Central to the case as the primary criminal activity. | 18 U.S.C. § 1956, 18 U.S.C. § 1960 | International | Occurred between October 2009 and September 2011 | Law enforcement, Financial institutions, Defendants |
| 2112 | Black Market Peso Exchange (BMPE) | Scheme converting U.S. drug proceeds into pesos in Mexico via shell companies. | Key method enabling drug trafficking organizations to launder funds. | 21 U.S.C. § 846, 18 U.S.C. § 1956 | International | Historical trend (active 2009-2011) | Drug cartels, Money couriers, Law enforcement |
| 2113 | Shell Companies | Fictitious businesses used to create bank accounts for illicit fund transfers. | Critical tool for obscuring the origin of laundered funds. | 18 U.S.C. § 1960 | National | Used during the scheme's operational period | Organizational leaders, Financial institutions |
| 2114 | Unlicensed Money Transmitting | Operating money transmission services without proper licensing. | Core charge against all defendants. | 18 U.S.C. § 1960 | International | Ongoing during 2009-2011 | Defendants, Regulatory agencies |
| 2115 | International Cooperation | Collaboration between U.S. DEA and IRS-CI to investigate cross-border activity. | Essential for dismantling transnational financial networks. | International | During investigation period | U.S. law enforcement agencies, Mexican authorities | |
| 2116 | Drug Trafficking Proceeds | Illicit funds originated from drug sales in U.S. cities. | Predicate crime fueling the money laundering operation. | 21 U.S.C. § 841, 21 U.S.C. § 846 | National | Historical source of funds | Drug cartels, Law enforcement |
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