SAN ANTONIO – Two people were arrested and $4 million in assets were seized following raids at two homes and two businesses Thursday morning in a suspected drug money laundering operation, law enforcement officials said.
"It is a money laundering operation that is linked to the laundering of drug proceeds," said Dante Sorianello, assistant special agent in charge for the Drug Enforcement Administration in San Antonio.
According to federal court documents, Jose Luis Magallon Jr., was arrested on a charge of conspiracy to commit money laundering. He could face a maximum of 20 years in prison and up to a $250,000 fine if he's found guilty in a trial. Magallon is scheduled to make an appearance in federal court Feb. 5.
Magallon is the owner of Magallon Enterprises, an exotic and luxury used car business. He was introduced to an undercover agent, who worked with Magallon to launder hundreds of thousands of dollars, court documents said.
Magallon also asked the undercover agent how much it would cost to transport drugs from Laredo to Atlanta, court documents said.
The other person arrested is scheduled to make a court appearance Friday.
Among the locations raided was a home at The Estates At Champions Run, a gated community in the Stone Oak area on the city's North Side.
Another luxury car business, MGM Auto at 5711 Industry Park Dr., was also raided.
About 120 vehicles will be seized by the end of the day, Bexar County Sheriff Javier Salazar said.
"We're looking at Ferraris, Lamborghinis. They're going to be seized. These will be government assets at some point," Salazar said. "If all goes according to plan, we're looking at a total of $4 million in seized assets as we speak."
The Bexar County Sheriff's Office, DEA and the IRS teamed up for the investigation, which court documents said began in June 2017.
"The fruits of our labor have been very productive," Salazar said. "It's good to see the good guys win."
Authorities tell me around 120 vehicles are going to be seized between the two local businesses pic.twitter.com/f1yS1b8f1r
— KSAT Max Massey (@MaxMasseyTV) January 31, 2019
This business and another local car import business in #SanAntonio were raided this morning in connection to the investigation. DEA tells me It was a money laundering operation that may have used drug funds. The suspects are expected to be in federal court later this afternoon. pic.twitter.com/VPl0NwRsu4
— KSAT Max Massey (@MaxMasseyTV) January 31, 2019
#Breaking sources at @BexarCoSheriff and DEA confirm a joint operation executed in multiple locations this morning, one of them here at the Estates at Champions Run. pic.twitter.com/ggWjCVaiv2
— KSAT Max Massey (@MaxMasseyTV) January 31, 2019