ICE Los Angeles, Multiagency Taskforce Case Results in Freight Forwarding

LOS ANGELES-The chief financial officer at a downtown Los Angeles-based shipping company was arrested May 27 on a 22-count federal grand jury indictment charging him and the company’s CEO with using fraudulent documents, shell companies, bribes to public officials, and kickbacks to Mexican drug cartels to smuggle billions of dollars’ worth of goods from the United States into Mexico, repeatedly lying to U.S. customs officials and defrauding Mexico out of hundreds of millions of dollars’ worth of duties owed. U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), IRS Criminal Investigation, and the DEA are investigating this matter.Ralph Olarte, 55, of Glendale, the CFO of Sport LA Inc., was arrested May 27 at Los Angeles International Airport. He made his initial appearance and was arraigned May 28 in United States District Court in downtown Los Angeles. Also charged in the indictment is Humberto Lopez Belmonte, 53, of Mexico City, who was arrested and arraigned on May 27 in Los Angeles federal court. Lopez pleaded not guilty to the charges against him and a July 21 trial date was scheduled. A federal magistrate judge ordered Lopez released on $100,000 bond.Olarte and Lopez are charged with one count of conspiracy to smuggle goods from the United States. Both defendants and their company, Sport LA Inc., also are charged with one count of smuggling goods from the United States, three counts of knowingly submitting false and misleading export information, five counts of wire fraud for false information submitted to CBP, one count of conspiracy to commit wire fraud against Mexico, one count of conspiracy to commit money laundering, and seven counts of international promotional and concealment money laundering. Sport LA is charged with three counts of making false statements to a government agency. The other defendant companies — H&R Logistics Inc. and Olarte Transport Service Inc. — are charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.According to the indictment returned on April 30 and unsealed May 27, Olarte and Lopez, from at least 2013 to the present, operated a lucrative international shipping enterprise. Through shipping companies they controlled, Olarte and Lopez smuggled billions of dollars’ worth of goods from and through the United States into Mexico. Many times, they concealed the nature of the shipped goods, some of which contained contraband. They also bribed Mexican customs officials, paid kickbacks to drug cartels — including the Jalisco New Generation Cartel — to operate the scheme and smuggled bulk cash into the U.S. to avoid reporting requirements.An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Olarte and Lopez would face a statutory maximum sentence of 20 years in federal prison for each count of wire fraud- and money laundering-related count, up to five years in federal prison for each smuggling- and false statements-related count, and up to two years in federal prison for each count of knowingly submitting false and misleading export information U.S. Immigration and Customs Enforcement