Comments on Current Events In Criminal Law from the Federal Criminal Courts in Texas

December 31, 2007

BUSINESSMAN INDICTED FOR ILLEGALLY EXPORTING GOODS TO MEXICO

New federal law at work targeting smugglers

(LAREDO, Texas) - A federal indictment charging a Laredo businessman with illegally exporting goods from the United States into Mexico has been unsealed following the arrest of Gerardo Cantu, United States Attorney Don DeGabrielle announced today.

Cantu, 45, of Laredo, is charged in a 46-count indictment that alleges from January until July 2007 he received 46 shipments of fabric rolls imported from China, but claimed they were made in the United States. According to the indictment, he obtained a North American Free Trade Agreement Certificate of Origin falsely certifying the merchandise was made in the U.S. knowing it would be exported into Mexico. He was arrested yesterday at the Immigration and Customs Enforcement (ICE) office and appeared today before United States Magistrate Judge Adriana Arce-Flores.

Cantu was charged under a new federal law passed by Congress pertaining to the smuggling of goods from the United States. This new federal law carries a maximum sentence of 10 years with each count carrying a fine of up to $250,000. This is the first indictment under the new law in the Southern District of Texas.

The investigation leading to this indictment was jointly conducted between ICE and Mexican Customs. In April 2007, Immigration and Customs Enforcement’s Attaché in Mexico City initiated a Joint Task Force (JTF) with Mexico Customs officers to prevent, detect and suppress customs and commercial fraud in Mexico and in the U.S. The investigations under this JTF are conducted in accordance with the Customs Mutual Assistance Agreement between the United States and Mexico signed in 2001.

“The arrest of Gerardo Cantu reflects the ongoing commitment of ICE in coordination with Mexican Customs to aggressively pursue those who illegally export goods and reap lucrative profits from their illegal sales,” said Jerry Robinette, special agent-in charge of ICE's Office of Investigations in San Antonio. “ICE, in cooperation with Customs and Border Protection, will continue to pursue these individuals in an effort to dissuade those who contemplate circumventing our import and export laws to engage in this lucrative and criminal enterprise.”

In June 2007, a Mexican Customs officer was officially appointed and assigned to the Laredo ICE office by the Mexican government. ICE agents and the Mexican Customs officer work jointly on commercial fraud investigations involving the smuggling of goods to and from the United States and Mexico.

“Textile transshipment fraud in Mexico continues to be a major concern since Mexico entered the new world economy of Global Commerce,” said Mexican Customs Official Jesus Fernandez. “High import duties and quotas for Chinese Textile imports are a big incentive not only for corrupt businessmen, but organized crime. Every year Mexican Customs authorities seize hundreds of truckloads of merchandise to include rolls of textiles.”

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.

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