A federal grand jury has indicted seven illegal aliens for running a sweeping criminal conspiracy tied to cartel money laundering, drug trafficking, and illegal firearms possession, the U.S. Attorney’s Office for the Western District of Kentucky announced.
At the center of the scheme is Jose Malagon Castro, a Mexican national who shamelessly operated three grocery stores in Kentucky as cartel cash fronts. His employees—Yeimi, Kenia, and Kelin Hernandez Barahona (Honduran nationals) and Suri Rosmeri Hernandez Del Cid (from Guatemala)—allegedly helped funnel millions in drug profits back to Mexico, fueling the very cartels empowered by America’s broken border policies.
The indictment details a conspiracy running from January 2020 to December 2024, during which the defendants allegedly laundered millions through illicit financial transactions designed to conceal the source and location of cartel proceeds.
Authorities say Malagon Castro’s criminal activities didn’t stop at money laundering. In December 2024, he was caught illegally stockpiling an arsenal of firearms — including a .357 magnum, multiple shotguns, and rifles — despite being prohibited from possessing any weapons under federal law.
Five of the seven suspects are already in custody. Two — Kenia Hernandez Barahona and Vanessa Avila Galaviz — remain fugitives, with active warrants issued for their arrests.
If convicted, the defendants face staggering sentences: Malagon Castro could receive up to 475 years in prison, while his co-conspirators face up to 460 years each. Authorities have also seized over half a million dollars in cash tied to the operation.
This case underscores the national security and public safety threats posed by unchecked illegal immigration and cartel infiltration inside American communities.
