Money Laundering at the Border: How Criminal Enterprises Exploit Niche Trade Channels

The US Department of Justice has sentenced three individuals for their roles in a long-running and violent criminal conspiracy that monopolised the transmigrante forwarding agency industry in the Los Indios border region of Texas. The scheme, which involved price-fixing, extortion, and money laundering, aimed to control access to a critical trade route into Mexico, threatening both market integrity and public safety.

Sentencing Details

Pedro Antonio Calvillo Hernandez, aged 50 of McAllen, Texas, received a 37-month prison sentence, three years of supervised release, and a $50,000 fine. Calvillo admitted to conspiring to fix prices, allocate markets, monopolise the transmigrante forwarding industry, and engage in extortion.

Jose de Jesus Tapia Fernandez, aged 47 of Brownsville, Texas, was sentenced to time served (31 months) and three years of supervised release for his role in laundering proceeds from the extortion schemes.

Mireya Miranda, aged 59 of San Antonio, Texas, was sentenced to 10 months of home detention and fined $75,000 after pleading guilty to charges of market allocation and price-fixing conspiracies.

All three defendants were also ordered to pay restitution to victims of the conspiracy, with the final amount to be determined at a hearing on 3 September.

Exploiting a Niche Industry through Violence & Fear

The case shines a spotlight on the transmigrante industry, a niche but vital cross-border service sector. Transmigrantes transport used vehicles and goods through Mexico to Central America, relying on forwarding agencies at limited border crossings such as the Los Indios Bridge in Texas. These US-based agencies assist in preparing the necessary customs paperwork for export.

According to court documents, the convicted individuals, along with co-conspirators, established a centralised entity known as the “Pool” to control pricing, limit competition, and divide revenues. Agencies were forced to pay fees to the Pool and additional extortion payments, including a transaction-based “piso” and fines for non-compliance with cartel-imposed rules. Coercion, violence, and intimidation were used to maintain this control.

A Multi-Agency Crackdown on Money Laundering & Organised Market Abuse

Assistant Attorney General Abigail Slater of the Antitrust Division condemned the use of violence and extortion in a market designed to support legitimate trade, noting that the sentences reflect a commitment to protecting free markets from both white-collar and violent criminals.

US Attorney Nicholas J. Ganjei for the Southern District of Texas emphasised the government's resolve to dismantle such criminal enterprises, stating:

Although such market manipulation is bad enough, it is even worse when brought about through threats and violence.

The FBI, Homeland Security Investigations (HSI), and the Department of Justice collaborated on the investigation, reflecting a whole-of-government approach to tackling economic crime at the border. Craig Larrabee, Special Agent in Charge of HSI San Antonio, remarked:

By dismantling an enterprise that thrived on extortion and price fixing, we are ensuring that honest businesses can compete on a level playing field.

Fugitives Still at Large

While seven defendants have now been sentenced and one awaits sentencing, three co-defendants — Rigoberto Brown, Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto — remain fugitives.

This case underscores the risks posed by criminal infiltration of niche cross-border services and the importance of sustained enforcement to preserve lawful trade and competition.

Read the press release here.