Juan Demetrio Villalpando Dominguez, a 65-year-old resident of California, has been sentenced to 38 months in federal prison for conspiracy to commit money laundering. Villalpando Dominguez admitted guilt in facilitating financial transactions that supported drug trafficking operations.
The investigation into Villalpando Dominguez was extensive, involving the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and the U.S. Department of Homeland Security (DHS). It focused on Villalpando Dominguez's son, Juan Demetrio Villalpando Jr., also known as "Junior," and his associates. Two confidential sources participated in controlled narcotics purchases, working with suppliers linked to sources in Mexico. As part of the operation, money collected from drug sales was sent to a third party but was intended for Villalpando Dominguez, who arranged for it to reach his son in Mexico.
Acting U.S. Attorney J. Bishop Grewell remarked on the severity of money laundering, stating, "Money laundering is a serious offense that enables drug traffickers to peddle their deadly wares. We will hold offenders accountable." Similarly, IRS-CI Special Agent in Charge, Amanda Prestegard, emphasized the importance of tackling money laundering to combat drug trafficking, "Facilitating drug trafficking by funneling illegal proceeds back to Mexico perpetuates the scourge of the drug epidemic in our communities."
FBI Denver Special Agent in Charge, Mark Michalek, underscored the strategy of disrupting drug cartels by targeting financial operations, stating, "Dismantling cartels requires more than seizing drugs – it includes cutting off the flow of illicit money that fuels their operations."
The sentencing was overseen by United States District Judge Charlotte N. Sweeney. The prosecution team included Assistant United States Attorneys Alexander Duncan and Michael Houlihan, supported by former Assistant United States Attorney Cyrus Y. Chung. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, a federal initiative to combat high-level drug networks.
Villalpando Dominguez's case was registered as 23-cr-00106-CNS. Authorities continue their efforts to disrupt transnational criminal activities through multi-agency cooperation.