Trevino Morales, leads racehorse Mr Politoafter his victory at the 2010 All
American Futurity race. Morales is accused of helping launder money from the
Los Zetas drug cartel through accounts at Bank of
money has a way of sprawling. And some of it may have reached Bank of
A federal probe into Los Zetas, a Mexican drug
cartel, claims that the group has been laundering money through accounts at
BofA, according to a recent report in The Wall Street Journal.
An FBI affidavit filed in Texas last month says
that the Mexican drug cartel has been reportedly funneling cash through a
Texas-based racehorse business with BofA accounts. The U.S. government has
described Los Zetas in the past as "the most technologically advanced,
sophisticated and dangerous cartel operating in Mexico." Tremor Enterprises LLC,
the horse business, was for its part allegedly run by Jose Trevino Morales, a
U.S. citizen with two brothers in Los Zetas.
In the past, Mexican drug syndicates have
allegedly used BofA accounts to buy planes to transport cocaine, according to
Bloomberg. Between 2004 and 2007, the bank was also the alleged destination for
almost $10 million in illicit funds from an influential political family in
BofA has admitted such errors in the past. In
2006, officials acknowledged they'd failed to catch South American clients
laundering $3 billion through one of its Manhattan branches, according to The
New York Times.
Just to be clear, BofA hasn't been accused of
any wrongdoing, and according to sources cited by the WSJ, the bank is
cooperating with the FBI investigation.
Still, if Los Zetas has indeed been shifting a
million dollars a month through accounts held at BofA, as the federal probe
claims, it suggests the bank might still have some kinks to work out in its
defenses against money laundering