Illegal alien arrested for using his Oregon business to launder over $34 MILLION in illicit drug money to Mexican, Honduran cartels

Peralta Fragozo owns and operates El Kaiman Western Wear, a clothing store located in Springfield, Oregon. He processed approximately 179,874 wire transfers totaling more than $93 million between January 2018 and July 2026. Federal authorities traced at least $34 million of the wire transfers to areas in Honduras and Mexico with major drug trafficking networks, including Mexico’s Sinaloa Cartel and Cartel Jalisco New Generation (CJNG), according to the complaint.

Law enforcement conducted a series of undercover operations using a confidential informant. During the operations, Peralta Fragozo processed numerous wire transfers after informants told him the funds were derived from drug trafficking and used false sender information and identification documents to complete the transactions, according to court documents.

Furthermore, the complaint alleges that drug traffickers used El Kaiman to transmit proceeds derived from narcotics trafficking. Investigators recovered wire transfer receipts from El Kaiman during a traffic stop that resulted in the seizure of 72 pounds of methamphetamine, as detailed in court records.

Federal authorities executed a search warrant at his home, business, and vehicle. During a search of El Kaiman, agents recovered bulk currency, a Ruger 9mm pistol, and ammunition. Peralta Fragozo admitted in an interview that he is unlawfully residing in the United States, according to court records.

“As alleged, the defendant was illegally present in the United States while using his business to launder millions of dollars in drug trafficking proceeds and unlawfully possessing a firearm,” said Scott Bradford, US Attorney for the District of Oregon, in a press release. “Drug trafficking organizations depend on financial facilitators to move and hide their criminal profits. We will continue working with our law enforcement partners to identify, dismantle, and prosecute the financial infrastructure that supports transnational drug trafficking organizations and fuels the flow of fentanyl and other dangerous drugs into our communities.”

The complaint alleges that investigators have observed a significant increase in drug trafficking activity involving Honduran nationals in Oregon. Court documents allege that Mexican drug trafficking organizations are increasingly employing Honduran nationals to distribute fentanyl and other hazardous narcotics in major metropolitan areas, such as the Portland metropolitan area.

US Attorney Bradford previously announced that more than 90 percent of the 130-plus defendants arrested in recent drug trafficking busts in the Portland area are illegal aliens, many of whom are from Honduras.

The investigation into El Kaiman was initiated following multiple DEA investigations that identified individuals involved in drug trafficking using El Kaiman to wire drug proceeds, officials said.

Peralta Fragozo has been charged with laundering purported drug proceeds and being an alien in possession of a firearm. He made his initial court appearance on November 4 and was ordered detained until further court proceedings.