Two executives of a textile company in the Los Angeles Fashion District are going to federal prison for conspiring to launder money for international drug cartels.
Brothers Morad and Hersel Neman pleaded guilty last year to conspiracy and filing false tax returns. On Tuesday, Morad was sentenced to two years in prison. Hersel got 18 months.
Prosecutors say in 2013 the brothers used their company, Pacific Eurotex Corp. to launder $370,000 supplied by an undercover agent posing as a courier for a drug cartel.
As part of a plea deal, they agreed to forfeit more than $3 million to the government.
According to the Los Angeles Times, the brothers hid a total of nearly $3.2 million that came from drug traffickers.
The case was part of a sweeping investigation into drug-money laundering in L.A.’s Fashion District, during which authorities seized more than $100 million.
Two other defendants await sentencing.
