LOUISVILLE, Ky. (KY) – An illegal alien has been sentenced to 70 months in federal prison after being convicted of multiple money laundering offenses and possession of a firearm by a prohibited person.
Two other foreign nationals who are in the country illegally were also sentenced for their part in the money laundering offenses.
Jose Malagon Castro, 49, a citizen of Mexico unlawfully in the United States, was sentenced to 70 months in prison, followed by 3 years of supervised release, fined $30,000 and forfeited $516,800 for twenty-four counts related to money laundering and one count of possession of a firearm by a prohibited person. Castro was prohibited from possessing a firearm because he was in the United States illegally.
The two other illegal aliens, Kelin Hernandez Barahona, 31, a citizen of Honduras, and Suri Rosmeri Hernandez Del Cid, 28, a citizen of Guatemala, were each sentenced to just over 11 months in prison with 3 years’ supervised release, for their roles in assisting Castro’s money laundering operation.
According to the U.S. Attorney’s office, between at least January 2020 and continuing until at least December 2024, here in the Western District of Kentucky, Castro utilized his Money Service Business (MSB) operated at three grocery store locations, El Rey I, II and III, to launder drug trafficking proceeds.
Specifically, Castro transmitted himself or had his two co-defendants transmit drug proceeds through his MSB service to multiple beneficiaries and locations in Mexico. Forensic accounting conducted by the IRS determined Castro laundered to Mexico over $1.9 million dollars of drug proceeds for a single drug trafficking organization.
On December 4, 2024, law enforcement executed multiple search warrants on Castro’s businesses, residences, and vehicles and seized $516,800 in money laundering proceeds and several firearms, along with ammunition.
United States Attorney Kyle Bumgarner stated, “Castro laundered over $1.9 million in drug proceeds to Mexico on behalf of a drug trafficking organization. That $1.9 million of laundered drug money represents a significant amount of poison that was sold in our community. Castro will now spend 70 months in prison before being expelled from the United States.”
There is no parole in the federal system.
Two more of Castro’s co-defendants remain at large.