Colombian man extradited to the United States for alleged role in extensive money laundering conspiracy

Date: Nov. 19, 2024

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BOSTON - A Colombian man has been extradited to the United States from the Republic of Colombia to face charges related to his alleged role in a sophisticated money laundering organization that laundered over $2 million in drug trafficking proceeds.

Jose Edison Montealegre-Fernandez was arrested in Cali, Colombia on Nov. 10, 2021 and extradited to the United States on Nov. 15, 2024. He appeared in federal court in Boston today and was ordered detained pending trial. On Nov. 4, 2021, Montealegre-Fernandez was indicted by a federal grand jury in Boston on charges of money laundering conspiracy, laundering of monetary instruments and engaging in monetary transactions in criminally derived property.

According to the charging documents, in or about November 2017, law enforcement began an investigation into a sophisticated money laundering organization located primarily in Cali, Colombia. During an extensive three-year investigation, the organization allegedly laundered over $2 million in drug proceeds through intermediary banks in the United States, including banks in Massachusetts.

Montealegre-Fernandez allegedly participated in the transfer of substantial amounts of bulk cash in the United States through schemes that involved picking up large amounts of drug proceeds at locations around the world and then subsequently laundering those funds through accounts in the United States to various individuals and entities in order to repay drug suppliers in Colombia. According to court documents, the investigation led to the seizure of over six kilograms of suspected heroin, over 2.8 kilograms of a substance that field-tested positive for heroin, fentanyl, cocaine, a hydraulic drug press, a Glock 10mm semi-automatic handgun, an SKS assault rifle with a loaded Beta C-mag containing 100 rounds of 7.62 caliber ammunition and $250,000 in cash.

The charges of money laundering conspiracy and laundering of monetary instruments each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The crime of engaging in monetary transactions in criminally derived property provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000, or twice the amount involved. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation (IRS-CI) in Boston and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Justice Department's Office of International Affairs and the Narcotic and Dangerous Drug Section's Office of the Judicial Attaché at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Montealegre-Fernandez. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.