Laredo, TX — A 52-year-old Mexican national has been sentenced to four years in federal prison for his role in a two-year, multimillion-dollar money laundering conspiracy that moved drug trafficking proceeds through Texas to Mexico, according to the U.S. Attorney’s Office for the Southern District of Texas.
Gabriel Arturo Castillo of Monterrey, Nuevo León, Mexico, pleaded guilty April 8. U.S. District Judge Marina Garcia Marmolejo sentenced Castillo to 48 months in federal prison.
Federal prosecutors said Castillo participated in an international black-market peso exchange scheme designed to transfer proceeds from illegal drug sales in the United States to drug trafficking organizations in Mexico without physically carrying the money across the border.
According to prosecutors, drug proceeds collected in various U.S. cities were deposited into bank accounts or transported to Laredo. The money was then sold to business owners in Mexico, who used the U.S. currency to purchase merchandise from American businesses, including perfume sellers.
The merchandise was transported from Laredo into Mexico, while Mexican business operators transferred pesos to the drug trafficking organizations. Prosecutors said the process was designed to conceal the source of the drug proceeds while allowing Mexico-based drug dealers to receive their profits in pesos.
Castillo was arrested in Mexico and extradited to the United States in August 2025. Federal authorities said he is unlawfully present in the United States and is expected to face removal proceedings after completing his prison sentence.
The DEA and IRS Criminal Investigation conducted the investigation with assistance from U.S. and Mexican authorities.