Drug Enforcement Administration (DEA) head Anne Milgram stated that the "uncovered" partnership between the Sinaloa Cartel and Chinese money laundering operations has enabled the fentanyl crisis in the United States. Milgram made this statement in a press release on June 18.
"Relentless greed, the pursuit of money, is what drives the Mexican drug cartels that are responsible for the worst drug crisis in American history,” said DEA Administrator Anne Milgram. “This DEA investigation uncovered a partnership between Sinaloa Cartel associates and a Chinese criminal syndicate operating in Los Angeles and China to launder drug money. Laundering drug money gives the Sinaloa Cartel the means to produce and import their deadly poison into the United States. DEA's top operational priority is to save American lives by defeating the cartels and those that support their operations. This investigation is the latest example, and there is more to come," said Milgram, DEA Administrator.
According to the DEA press release, the partnership between the Sinaloa cartel and Chinese money-laundering organizations produced $50 million in drug proceeds. Five million dollars worth of drugs and firearms were seized by law enforcement during an investigation following the indictment of 24 individuals involved in the conspiracy.
The Associated Press reported that money generated from selling trafficked drugs in the United States was being sent back to China to purchase precursor chemicals to manufacture more drugs, which would then be trafficked back into the United States.
According to U.S. Customs and Border Protection (CBP), 549,000 pounds of drugs were seized at the border in Fiscal Year 2023 (FY23). Thus far in Fiscal Year 2024 (FY24), 321,000 pounds have been seized.
Dismantling cartel trafficking operations begins with taking down money-launderers partnered with them, according to the DEA. "Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand in hand with drug traffickers to try to legitimize profits generated by drug activities," said Chief Guy Ficco of IRS Criminal Investigation in the press release.
The DEA was founded in 1973 to ensure proper implementation of U.S. laws regarding controlled substances and to bring entities involved in production, distribution, or trafficking of such substances to either criminal or civil justice, according to its website. The current DEA Administrator is Anne Milgram, serving since 2021.
