Cartel-Linked Money Laundering Scheme Uncovered in Texas Border Monopolisation Case

Carlos Martinez, 39, of Mission, Texas, has been sentenced to 11 years in prison and fined $2 million for leading a violent and long-running conspiracy that involved money laundering, extortion, and market monopolisation at the US-Mexico border. The case shines a spotlight on how criminal enterprises launder illicit proceeds through seemingly legitimate cross-border business operations.

Money Laundering Through Vehicle Export Industry

Martinez used his control over the transmigrante forwarding agency (TFA) industry to extort payments from legitimate businesses transporting used vehicles through the Los Indios Bridge into Mexico. According to the US Department of Justice, Martinez and his co-conspirators forced competitors to join a collusive pricing arrangement known as “The Pool”, charging inflated fees and funnelling the proceeds into personal bank accounts.

He laundered more than $9.5 million in extorted payments through accounts controlled by himself and his relatives. These deposits were carefully structured to disguise their source, nature, and ownership—hallmarks of classic money laundering techniques. The illicit profits were used to purchase high-value assets including a luxury home, vehicles, a boat, and designer watches, all now subject to forfeiture.

Cartel Influence Fuelling Cross-Border Financial Crime

Martinez is the son-in-law of a former leader of the Gulf Cartel, a notorious Mexican criminal syndicate. He leveraged cartel-style tactics, including intimidation, assaults, and arson, to enforce compliance among TFAs and suppress any competitors who refused to participate in the illegal scheme. In doing so, he embedded a transnational organised crime model into the cross-border trade infrastructure.

US prosecutors confirmed that “disciplinary actions” included kidnapping, beatings, and threats of death, all designed to maintain control over money laundering channels and illicit revenue streams.

Law Enforcement Targets Criminal Use of Financial Systems

The investigation was led by Homeland Security Investigations and the FBI, with multiple convictions secured. Assistant Attorney General Abigail Slater stressed that the DOJ’s Antitrust Division will continue to pursue criminals who exploit the US financial system for laundering dirty money.

FBI and HSI officials highlighted how financial crime undermines the integrity of commerce and facilitates broader transnational criminal activity. The court will determine the final amount of restitution owed to victims in a hearing scheduled for 3 September 2025.

Money Laundering Red Flags & Industry Impact

This case offers valuable lessons for financial institutions and compliance professionals, including:

• Structuring of deposits to avoid reporting thresholds

• Use of family and third-party accounts to conceal beneficial ownership

• Integration of criminal proceeds through high-value asset purchases

• Control of legitimate businesses to launder illicit income

• Cross-border movement of funds tied to violent enforcement mechanisms

The Martinez case illustrates the urgent need for enhanced anti-money laundering (AML) controls in border-related industries, including vehicle export services, freight forwarding, and logistics support.

Read the press release here.