The owners of Pacific Eurotex Corp., a textile company in Los Angeles were sentenced to federal prison after pleading guilty to federal money-laundering and tax evasion charges. In 2014, Pacific Eurotex along with around 75 other companies were caught up in a raid by more than 1000 federal and state agents who fanned out across the Los Angeles Fashion District to crack down on money-laundering schemes. These schemes were reportedly benefitting drug cartels in Mexico. Over $140 million of cash and property was seized during the raid. There were also instances of vast amounts of money being stashed in hideouts connected to the textile and fashion companies.
The CEO of Eurotex, Morad Neman, was sentenced to two years in prison and was fined $200,000. His brother, Hersel Neman, who was acting as Pacific Eurotec’s chief financial officer was sentenced to 18 months in jail and fined $60,000. In total, the company and the Neman brothers will forfeit #.18 million to the United States. Along with the Neman brothers, two other individuals connected to the family and the company were sentenced to terms in prison and fined.
According to government documents, Eurotex had been laundering since 2012 and had continued right up until the 2014 raid. The investigation has started based on tip-offs from confidential informants. This is not the first time this kind of scheme has taken place. Similar operations were popular among toy companies in 2010 and 2012 in which money was passing over the Mexican border and ending up in the hands of the cartels.