BORDER BANKS PLAYED ROLE IN ZETA-GULF CARTEL-YARRINGTON CONNECTION

Various Sources

Following the disclosure earlier this month that a Mexican businessman was being held in U.S. custody accused of money laundering and serving as a liaison between drug cartels and powerful politicians, including a former governor who allegedly received millions of dollars in exchange for protecting the criminals, the role of banks on the U.S. side which played a role in the scheme has come to light.

According to a 14-page court filing from the United States District Court for the Western District, middlemen for the Zeta and Gulf Cartel drug-smuggling organizations moved millions easily in their purchase of real estate and other consumer goods.

Banks such as the Commerce Bank in California, Falcon Bank and the International Bank of Commerce provided millions without the required reporting to ere easily moved by Antonio Pena-Arguelles, who was paid millions by leaders of the Gulf cartel and the Zetas to help influence politicians, including Tomas Yarrington, the former governor of Tamaulipas state, which borders Texas.
At least four confidential informants told the Drug Enforcement Administration that Pena-Arguelles, arrested in San Antonio earlier this month, acted as the go-between the Zetas and Gulf Cartel along with his brother Alfonso, who was killed last November by the Zetas after Antonio failed to pay back $5 million that the criminal organization had given him to pay politicians, according to the complaint filed in San Antonio.

The money was meant for “politics,” but the process turned into “lies,” according to the document, citing a text message allegedly sent by Zetas leader Miguel Trevino Morales to Antonio Pena-Arguelles the day his brother’s body was discovered near a popular monument in Nuevo Laredo.

“There will not be a safe place for you, Mr. Tono, so good luck,” the DEA documetn treads.“Don’t be an idiot and pay attention to whom you rob.”

Another former employee of Pena-Arguelles, listed as one of the informants, allegedly witnessed Pena-Arguelles and Yarrington arguing over money at Pena-Arguelles’ home in San Antonio, one of several properties, along with vehicles, paid for in cash through illicit proceeds, according to the court filing.

Authorities said that they have discovered as much as $10 million in bank accounts linked to Pena-Arguelles in U.S. states, including Texas and California.

A fourth confidential informant stated that "Antonio Pena-Arguelles "utilized bank accounts at Falcon Bank, Internatuional Bank of Commerce, HSBC Mexico, and Commerce Bank in California. The man  now in custody allegedly showed the informant a bank satement for bank account(s) he had in California (California Commerce) which contained approximately $8-$9 million believed to be illegal drug proceeds.

Further investigation by the DEA revealed that the ledgers kept by Antonio and Alonso Pena-Arguelles for the years 2004-2006 revealed cash assets estimated at "over $10 million located in U.S. financial institutions, to include California Commerce Bank, Falcon Bank, and IBC."

The document filed in San Antonio further states that "large amounts believed to be narcotics-related proceeds were received by Alonso and Antonio Pena-Arguelles. These ledgers also included dates and name entries which document millions in pesos and U.S. dollar payment/disbursements to Tomas Yarrington's representatives and others. These ledgers revealed bank accounts at California Commerce Bank, Falcon, IBC, and other investment funds where Antonio Pena-Arguelles funneled his drug proceeds from Mexico."

The DEA complaint documents several multi-million dollar wire transfers believed to have been proceeds from narcotics-related activity and were used to purchase condominiums, expensive vehicles and make payments to politicians.
Within the indictment, Pena-Arguelles is reported to have picked up payments from Zeta and Cartel operatives in Laredo, McAllen and in Brownsville. Yarrington is said to have properties on South Padre Island (a condominium on the entire second floor of a  luxury hotel) and in Brownsville, while Arguelles is said to have invested millions in Rancho Viejo real estate through middlemen.    

Yarrington and two other former governors from Tamaulipas state — Eugenio Hernandez and Manuel Cavazos — are under investigation by Mexico’s attorney general in connection with unspecified federal crimes.

Now the question becomes: Will the DEA investigation of Pena-Arguelles and Yarrington also reach into the supporting roles played by the banks in question as well?