San Antonio man due in court Tuesday in money laundering case involving luxury cars
One of two defendants charged in a money laundering case involving more than 100 exotic and luxury cars that were seized is scheduled for hearings Tuesday to determine whether law officers had enough probable cause to arrest him, and whether he qualifies for bail.
Jose Luis Magallon Jr., 28, is accused of laundering more than $200,000 in a series of undercover law enforcement sting operations.
Magallon is the owner of Magallon Enterprises LLC, an exotic and luxury used auto dealership in San Antonio, but court records accuse him of being a launderer for a drug trafficking organization from Michoacán, Mexico.
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Magallon allegedly dealt with an undercover agent who posed as a transporter of large amounts of drug cash, and flashed several high-end cars that were part of Magallon’s money laundering operation, a criminal complaint affidavit said. The affidavit also alleges that other people helped Magallon disguise his money laundering under layers of fronts.
Agents did not raid Magallon’s business, but used him to get to a co-defendant, Karen Mgerian, who was willing to launder larger amounts, according to court records. Mgerian, 40, allegedly laundered $575,000 for undercover agents acting as drug cartel operatives, and was in negotiations to launder another $4.7 million, according to court records.
Agents last Thursday raided Mgerian’s car lot, MGM Auto, near Rittiman and Interstate 35, and an auto body location he allegedly controlled called Odadi Auto near Stahl Road. They also raided his home in Stone Oak and a home Magallon rented near Perrin-Beitel and Loop 410.
Mgerian initially had been scheduled to have his bail hearing Tuesday but it has been rescheduled to Feb. 13, records show.
Guillermo Contreras covers federal court and immigration news in the San Antonio and Bexar County area. Read him on our free site, mySA.com, and on our subscriber site, ExpressNews.com. | firstname.lastname@example.org | Twitter: @gmaninfedland