Federal agents seized around $90 million in 'cartel money' after a massive raid in Los Angeles' fashion district, the Associated Press reported.
Some 1,000 federal officers stormed the fashion district in downtown Los Angeles on Wednesday, searching at least 50 businesses suspected of channeling cash in a money laundering scheme ran by Mexican drug cartels.
Close to $90 million was found hidden inside duffel bags and cardboard boxes in the raid that ended with nine arrests.
"We are stepping up our efforts to go after their money, which is the lifeblood of these criminal organizations," Robert E Dugdale, chief of the U.S. attorney's office criminal division, told the AP.
Los Angeles' fashion district, which generates over $10 billion a year, is believed to be a major hub for Mexican cartels that take money from U.S. cocaine sales and hand it to businesses for clothing exports to Mexico. Investigators say the district's international trade link provides good camouflage for money laundering.
"They produce cheap wares that can be sold down in Mexico," Dugdale said. "The fashion district in particular seems to be where this is thriving at the moment."
The raid comes after federal authorities brought indictments against three cartels for illegal transactions involving trade.
One case saw $140,000 in ransom money connected to a hostage who was tortured in Mexico, which the Sinaloa Cartel laundered through the fashion district.
Fashion district officials were shocked to hear about the covert operations. Most of the district's 3,000 businesses are legitimate and most sell clothing in the U.S., Kevin Smith, LA Fashion District executive director, told the AP.
"All of us are very surprised by this," he said.
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