As Mexico cracks down, drug money comes to US

For a company that booked $12 million in annual sales importing snacks like chile- and lime-flavored chips from Mexico, Baja Distributors Inc.'s offices were oddly quiet. There were no signs outside. Its small warehouse was almost empty. Phones went unanswered. Investigators say there was a reason for the anonymity: The business was laundering money from Mexican drug traffickers. Baja Distributors, whose executives denied laundering drug money, brought more than $17 million from Mexico in 18 months. U.S. front companies for cartels aren't new, but U.S. officials say they took a more prominent role after Mexico capped dollar deposits in cash at $7,000 a month for businesses in 2010, later raised to $14,000. As a result, they say, cartels sought companies to deposit money in American banks and wire it back in pesos under the guise of international trade...more