U.S. and Mexico Strike Major Blow Against Transnational Crime Group in Gambling Sector
The U.S. Treasury Department and Mexican government have launched a coordinated assault on a transnational crime network that’s been hiding in plain sight across Mexico’s gambling establishments. In a sweeping action Tuesday, officials targeted the Hysa Organized Crime Group (HOCG) and numerous Mexico-based casinos for laundering cartel money through seemingly legitimate businesses.
“The United States and Mexico are working together to combat money laundering in Mexico’s gambling sector. Our message to those supporting the cartels is clear: You will be held accountable,” stated Treasury Under Secretary John K. Hurley, emphasizing the cross-border partnership at the heart of the operation.
The crackdown represents one of the most significant joint actions against financial crime in the region. Treasury’s Office of Foreign Assets Control (OFAC) designated 27 individuals and entities connected to the Hysa network, while the Financial Crimes Enforcement Network (FinCEN) proposed special measures to cut off 10 Mexican gambling establishments from the U.S. financial system.
Family Business: The Hysa Operation
At the center of this web of illegal activity? A family affair. The Hysa Organized Crime Group, led by family members Luftar, Arben, Ramiz, Fatos, and Fabjon Hysa, has been using investments in Mexican casinos and restaurants to wash narcotics proceeds clean. Intelligence indicates the group operates with the blessing of the Sinaloa Cartel, one of Mexico’s most powerful criminal organizations.
How did their operation work? The Hysa family members reportedly moved bulk cash from Mexico to the United States for laundering, using a U.S. person’s company as a cleaning service for their dirty money. Investigators discovered that Luftar and Arben Hysa also utilized European entities to process illicit funds belonging to suspected drug traffickers, creating a truly international money laundering pipeline.
Arben Hysa, who owns or directs several companies in Mexico, has been particularly active in smuggling cash across the border. The Treasury Department revealed that both he and his relative Ramiz used gambling establishments and luxury restaurants as fronts for their illicit financial activities.
Meanwhile, family members Fatos and Fabjon were also heavily involved in the cross-border cash smuggling operation and used a Europe-based entity to enrich themselves by laundering narcotraffickers’ money, according to Treasury documents.
A Complex Network of Shell Companies
The investigation uncovered a dizzying array of businesses used to facilitate the money laundering operation. The Treasury Department targeted Mexico-based Entretenimiento Palmero, S.A. de C.V., owned by Arben Hysa and described as central to the group’s operations. Eselda Baku (formerly Eselda Hysa), Ramiz’s daughter, sits on its board of directors.
But that’s just the tip of the iceberg. The sanctions also hit more than a dozen additional companies spanning Mexico, Canada, and Poland, including Bliri S.A. de C.V., Cucina Del Porto S.A. de C.V., Diversiones Los Mochis S.A. de C.V., and several others operating under variations of Rosetta Gaming and Entretenimiento names.
Taken together, these businesses formed a sophisticated laundering apparatus that allowed drug money to move through seemingly legitimate channels. Treasury officials confirmed the designations were made pursuant to Executive Order 13581, as amended, which targets significant transnational criminal organizations.
Cutting Off the Money Taps
What happens now? As a result of the Treasury’s action, all U.S.-based property and interests belonging to the designated individuals and entities have been frozen. Americans are prohibited from conducting business with them, and any entities owned 50 percent or more by the blocked persons are similarly restricted.
Violations of these sanctions aren’t taken lightly. Treasury officials warned that both U.S. and foreign persons could face civil or criminal penalties for infractions, with OFAC empowered to impose civil penalties on a strict liability basis — meaning intent doesn’t matter.
There’s an additional layer of deterrence at work here. Foreign financial institutions that knowingly facilitate transactions with these designated entities risk secondary sanctions that could severely restrict their access to the U.S. financial system, effectively cutting them off from dollar-based transactions.
Casinos in the Crosshairs
Alongside OFAC’s designations, FinCEN issued a notice of proposed rulemaking under section 311 of the USA PATRIOT Act, identifying transactions involving 10 Mexico-based gambling establishments as a “class of transactions of primary money laundering concern.”
The casinos in question span multiple Mexican states, including Sonora, Sinaloa, Baja California, and Tabasco. Among them are the Emine Casino in San Luis Rio Colorado, Casino Mirage in Culiacan, and multiple locations operating under the Midas Casino, Palermo Casino, and Skampa Casino brands.
“These gambling establishments have for years been used to facilitate money laundering that benefits the Sinaloa Cartel,” Treasury officials stated, highlighting how deeply embedded the Hysa group had become in Mexico’s casino industry.
The U.S.-Mexico partnership demonstrated in this operation represents a significant escalation in efforts to disrupt the financial infrastructure supporting drug cartels. By targeting not just the criminal organizations themselves but the seemingly legitimate businesses they use to launder their proceeds, authorities are attacking the problem at its roots.
For the Hysa family and their associates, the game appears to be up. Their casino chips have been cashed in – not for cash, but for a spot on the Treasury’s sanctions list.
