PRESS RELEASE
U.S. Department of Justice
Office of the United States Attorney
Middle District of Tennessee February 28, 2006

FOR IMMEDIATE RELEASE

CONTACT: Jim Vines
United States Attorney

Paul M. O’Brien
Assistant U.S. Attorney
615-401-6586

NASHVILLE MAN PLEADS GUILTY TO SMUGGLING $200,000 IN DRUG PROCEEDS TO MEXICO

Nashville, TN - February 28, 2006- Nashville resident Luis Gonzales pled guilty to smuggling $200,00 in drug proceeds from Nashville to Mexico in June of 2005. The plea was announced by Jim Vines, United States Attorney for the Middle District of Tennessee.

According to facts presented at the plea hearing, Juan Chavez, a Nashville based drug trafficker was importing large quantities of marijuana and cocaine for distribution from individuals in Mexico in 2004. In August of 2004, Chavez was arrested on federal charges and ordered detained by a United States Magistrate Judge. At the time of his arrest, Chavez had approximately 1.4 million dollars in drug proceeds hidden in a house in the Nashville, Tennessee area. While incarcerated, Chavez arranged for family members and associates to smuggle the drug proceeds to Mexico.

Hector Gonzales admitted to an F.B.I agent that in June of 2005, he transported approximately $200,000 of Chavez’ drug proceeds to Mexico. The money was hidden in Gonzales’ automobile and smuggled across the border. Under federal law, individuals transporting more than $10,000 in currency are required to declare the currency at the border.

“Bulk cash smuggling continues to be a major method used by criminal organizations to move illicit funds” said Michael A. Holt, Special Agent-In-Charge, Immigration and Customs Enforcement in New Orleans. “This investigation sends a clear message to all cash smugglers that ICE, along with its federal, state and local law enforcement partners, is working hard to shut down smuggling operations like this throughout the U.S.” Gonzales is scheduled to be sentenced before United States District Judge Aleta Trauger on May 22, 2006. Juan Chavez is awaiting sentencing on drug and money laundering charges.

This was a joint investigation conducted by the Bureau of Immigration and Customs Enforcement and the Federal Bureau of Investigation. Assistant United States Attorney Paul M. O’Brien prosecuted the case on behalf of the United States.

District Court Case No. 3:05-00164; 3:04-000165