20 Indicted in Money-Laundering Probe

Federal agents seized guns, expensive coins, a gem-laden watch and about $300,000 in cash in raids at border currency exchanges that stemmed from the indictment of 20 people on charges that included laundering drug money, prosecutors announced Thursday.

The 20 people--from San Diego, Los Angeles and Tijuana--were indicted on charges detailed in nine indictments that alleged a laundering scheme by four large-scale groups of Southern California-based marijuana and cocaine traffickers, prosecutors said.

U.S. Atty. William Braniff called the charges the result of an “important, focused attack on the life-blood of narcotics trafficking--the money flow.”

But he and Assistant U.S. Atty. L.J. O’Neale, who headed a two-year undercover investigation that yielded the 20 indictments, said that 11 of the 20 suspects eluded arrest when agents raided six San Ysidro currency exchanges Wednesday. Those 11 remained at large Thursday, O’Neale said.

O’Neale also said he was hopeful that the investigation would disrupt the regular channels of money laundering--the transfer of cash among different people and accounts to make it appear that it was gained legitimately.

But O’Neale also suggested that the impact of any single probe into alleged money laundering, even one netting $300,000, is difficult to gauge because, he said, about $2 billion a year in drug money is laundered through San Diego businesses and banks.

Federal agents began the series of raids at San Ysidro currency exchanges Wednesday morning, O’Neale said. A grand jury had returned the nine indictments Tuesday, court records indicate.

Three of the nine indictments remain sealed, court clerks said.

Among the six businesses searched was C & M Money Exchange, O’Neale said. It, or operator Julio Fillad, 31, of Imperial Beach, were named in five of the six indictments that were unsealed Thursday at the downtown San Diego federal courthouse.

Fillad remained at large Thursday, O’Neale said. Among the other 10 suspects still being sought was Manuel Hector Roman-Angulo, identified in one of the indictments as the chief of one of the four drug-trafficking groups, O’Neale said.

According to one of the indictments, C & M was used to funnel money from the four organizations specializing in cocaine and marijuana trafficking to U.S. dollar accounts in Mexican banks. From those accounts, the cash was electronically sent overseas, the indictment said.

Two of the other indictments unsealed Thursday alleged conspiracies to evade filing the paper work that U.S. law requires for cash transactions of more than $10,000. Three indictments alleged conspiracies to distribute cocaine.

Seven of the 20 people named in the indictments were arrested Wednesday, one surrendered to authorities and another is due to surrender next week, O’Neale said. He added that the eight who were arrested or who surrendered were arraigned Thursday before U.S. Magistrate Roger McKee:

Fillad’s wife, Luz Maria Fillad, 30, of Imperial Beach, was being held at the federal Metropolitan Correctional Center pending a bail hearing next Monday.

Also being held at MCC pending a bail hearing next Monday were Rolando Orozco, 31, of San Ysidro; Jorge Reyna, 29, of San Ysidro and Jorge Martinez, 20, of Chula Vista.

Enrique Candelas, whose age and address were unknown, was in custody at MCC awaiting a bail hearing today.

Nora Fraire, 25, of Tijuana, and Cancio Soto, whose age and address were unknown, were released after arraignment on $25,000 bail. Soto turned himself in to authorities Thursday.

Jesus Raul Reyes, 41, of Chula Vista, was due to be released late Thursday on $100,000 bail.

Michael Scott Valencia, 23, of Chula Vista, is scheduled to surrender Tuesday to federal authorities, O’Neale said.