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Unidentified law enforcement personnel take a horse away from the... (Mike Curran/Ruidoso News)
›› Archive photos: Alleged Zeta leader's horse wins 2010 All American Futurity
›› Read indictment of alleged Zetas leader Miguel Ángel Treviño Morales The notorious Los Zetas drug cartel of Mexico has infected American quarter-horse racing -- including at Ruidoso Downs Racetrack and Casino, federal officials charge in an indictment. On Tuesday morning, the FBI arrested seven people in connection with an alleged scheme to launder millions of dollars by purchasing and racing horses that have won some of the country's most prestigious quarter-horse races in recent years. Miguel Angel Trevino Morales, 38, a "co-leader" of the brutal Los Zetas cartel known as "40," and his brother, Oscar Omar Trevino Morales, 36, known as "42," were indicted in the case, but are are believed to be in Mexico, federal authorities said. Agents executed search warrants in three states, including one at the Ruidoso track. Also among the indicted, but not arrested, is Raul Ramirez, 20, of El Paso, according to a statement from U.S. Attorney Robert Pitman of San Antonio. Ramirez is accused of bidding on horses for the Trevino brothers. Fernando Solis Garcia, 29, was arrested in Ruidoso. He is accused of buying horses for the criminal organization through straw purchasers and helping to train animals. A federal grand jury on May 30 indicted 14 people in connection with the scheme, according to Pitman and other federal authorities. A third Trevino brother, Jose Trevino Morales, 45, and his wife, Zulema Trevino, 38, were arrested Tuesday in Lexington, Okla. They are accused of operating Zule Farms, where Jose Trevino was "actively involved in managing the activities of money-laundering operation in the United States while posing as a 'legitimate' quarter-horse owner," the indictment says. Carlos Miguel Nayen Borbolla, 26; Adan Farias, 32; and Felipe Alejandro Quintero, 28; were arrested in Los Angeles. Eusevio Maldonado Huitron, 48, was arrested in Austin. Also indicted but still at large are Francisco Antonio Colorado Cessa, 51, of Veracruz, Mexico; Victor Manuel Lopez, 31, of Nuevo Laredo, Mexico; Sergio Rogelio Guerrero Rincon, 40, of Mexico; and Luis Gerardo Aguirre, 35, of Mexico. The defendants are charged with one count each of conspiracy
FBI agents this morning served a federal search warrant at Ruidoso Downs Race Track & Casino, a horse racing track in southern New Mexico, according to an agency spokesman in Albuquerque. (Rudy Gutierrez / El Paso Times)
to launder monetary instruments. Federal authorities are demanding that the Trevino brothers forfeit five quarter horses, including Mr. Piloto, winner of the 2010 All American Futurity Race at Ruidoso Downs. The race is regarded as one of the most prestigious events in quarter-horse racing and paid $1 million to the winner. Authorities are also seeking to force the defendants to forfeit $20 million -- the amount federal prosecutors say was used in the horse-buying scheme. Millions of dollars were run through front companies to conduct transactions in Texas, New Mexico, Oklahoma and California, the indictment says. Among the purchases made, according to the indictment, were 13 horses in September 2009 for $546,000; 23 horses in September 2010 in Ruidoso for $2.2 million; five horses in California for $442,000; and 12 horses in January 2011 for $546, 200. The indictment says that organization bought the horses from itself at inflated prices using shell companies. Among the sales the group is alleged to have made were the sale of a horse named Blues Girls Choice for $102,000; Devil Ridge for $100,000; Number One Cartel for $280,000; and Forty Force for $40,000. "The allegations in this indictment, if proven, would document yet another example of the corrupting influence of Mexican drug cartels within the United States, facilitated by the enormous profits generated by the illicit drug trade," Pitman said in a statement. The target of the search in Ruidoso was Tremor Enterprises, a horse-breeding operation allegedly owned and operated by Jose and Zulema Trevino, according to the federal indictment. The New York Times broke the story of the arrests, indictments and searches on Tuesday morning. The indictment states that Miguel Angel Trevino became one of two leaders of the cartel through a brutal process of elimination. The defendants are accused of using "bulk currency, wire transfers, bulk currency deposits and structured payments from Mexico into the United States" to buy horses. Fred Burton, vice president of intelligence for global intelligence firm Stratfor, said horse racing is an excellent fit for an organized-crime group trying to launder illicit earnings. "If you have that kind of disposable income and start looking at industries where you can also make money, it makes perfect sense if you think about it," he said. "It's not unlike the Jewish and Italian mafias that moved to Las Vegas." Vince Mares, executive director of the New Mexico Racing Commission, said his agency has been assisting the FBI in its Zetas inquiry for approximately eight months. "We have been involved and helping the FBI, I want to say, since October of last year," he said. Mares said the racing commission supplied records relating to licensees and races to federal investigators. He said the commission had known for a few days that a break in the case was coming. Mares traveled from Albuquerque to Ruidoso on Tuesday because of the federal investigation. Bred to sprint short distances, quarter horses race primarily in the Southwest and California. The federal investigation of drug money in quarter-horse racing is the second black eye this year for horse racing in the United States. Earlier this year, the New York Times reported on doping of all types of race horses that resulted in deaths and injuries to jockeys and horses. New Mexico particularly was plagued by problems, the paper reported. Marty Schladen may be reached at mschladen@elpasotimes.com; 546-6127. Times reporters Felix Chavez, Alejandro Martinez Cabrera, Daniel Borunda and Adriana Chavez and Chuck Slothower of The Daily Times in Farmington contributed to this story.