Hector Alejandro Paez Garcia, an attorney based in Mexico City, has admitted guilt in a federal court for his involvement in a scheme to launder drug trafficking proceeds for the Sinaloa Cartel. This development is part of a broader FBI investigation into a Mexico-based money laundering organization (MLO) that allegedly funneled at least $52.7 million for the cartel.
The MLO reportedly used shell companies in San Diego to process large sums of cash from various U.S. locations, derived from the cartel’s drug operations. According to court documents, employees collected up to $200,000 per trip and transferred these funds through shell companies to accounts in Mexico managed by Paez. He acknowledged playing a managerial role within the MLO.
During their probe, FBI agents seized 66 bank accounts linked to money laundering across the United States. As authorities closed in on the MLO’s assets, Paez attempted to use cryptocurrency to conceal them; however, this effort was also thwarted by law enforcement.
The investigation has led to 11 arrests on money laundering charges and seizures exceeding $3.1 million in illicit assets. A related DEA operation resulted in 24 more arrests and asset seizures totaling $450,000.
In March 2025, sanctions were imposed by the Department of Treasury’s Office of Foreign Assets Control (OFAC) against six individuals and seven entities connected with Paez’s co-conspirators.
Paez’s sentencing is scheduled for August 15, 2025. Several others involved have been charged or have pleaded guilty:
– Miguel Angel Encinas Gomez admitted guilt for laundering $35 million.
– Hugo Andres Velasquez Pantza was arrested in Rome and extradited; he awaits trial.
– James Harmon Yarbrough pleaded guilty after converting illicit funds into cryptocurrency.
– Victoria Johanna Lopez and others served as cash couriers; some have pleaded guilty while one awaits trial.
– Jhonatan Suarez Florez admitted using business accounts for illegal transactions.
– Alberto David Benguait Jimenez remains at large.
Assistant U.S. Attorneys Paul Benjamin and Robert Miller are prosecuting this case with significant contributions from former Assistant U.S. Attorney Owen Roth. The FBI collaborated with several agencies including the Drug Enforcement Administration and international partners.
This case forms part of Operation Take Back America under the Organized Crime Drug Enforcement Task Force (OCDETF), aimed at dismantling high-level criminal organizations involved in drug trafficking and money laundering.
