Feds: Horse operation was a front for cartel cash

OKLAHOMA CITY (AP) ? Federal agents raided a sprawling ranch in Oklahoma and a prominent quarter horse track in New Mexico on Tuesday, alleging the brother of a high-ranking official in a Mexican drug cartel used a horse-breeding operation to launder money.

An indictment unsealed Tuesday accused Miguel Angel Trevino Morales, a key figure in the Zetas drug operation, of setting up a horse operation that a younger brother operated from a ranch near Lexington, Okla., south of Oklahoma City. Millions of dollars went through the operation, which bought, trained, bred and raced quarter horses throughout the southwest United States, including the famed Ruidoso Downs track in New Mexico.

"This case is a prime example of the ability of Mexican drug cartels to establish footholds in legitimate U.S. industries and highlights the serious threat money laundering causes to our financial system," said Richard Weber, the chief of the IRS' criminal investigation unit.

Seven of the 14 people indicted were arrested, including Jose Trevino-Morales, who operated the horse breeding company Tremor Enterprises, and his wife, Zulema. Another Trevino brother was also charged.

Prosecutors asked that no bond be set for Trevino-Morales fearing he would either flee or intimidate witnesses. He declined to comment at the courthouse.

Dozens of federal agents swarmed the New Mexico race track, wearing bulletproof vests and collecting evidence. At least two horses were taken away.

The federal government seeks the seizure of several horses, claiming they were used to further a crime. Among those sought was Mr. Piloto, the winner of the 2010 All-American Futurity.

A raid was also conducted at the ranch about 40 miles south of Oklahoma City. At least a half-dozen agents wearing fatigues and baseball caps emblazoned with FBI were still at the ranch early in the afternoon, but they declined to comment.

The New York Times (http://nyti.ms/KqFFiY) first reported the raids and the alleged connection to the Zetas cartel on its website earlier Tuesday. The newspaper, citing a months-long investigation and several anonymous sources, described how the horse breeding operation hid in plain sight, even naming one horse "Number One Cartel," and quietly rose to win some of the industry's biggest races.

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Associated Press writers Juan Carlos Llorca in Ruidoso Downs, N.M., Sean Murphy in Oklahoma City and Rochelle Hines in Lexington, Okla., contributed to this report.

Associated Press

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