Date: April 18, 2025
Contact: [email protected]
DENVER — The U.S. Attorney’s Office for the District of Colorado announces Juan Demetrio Villalpando Dominguez of California, was sentenced to 38 months in federal prison after pleading guilty to one count of conspiracy to commit money laundering.
According to the plea agreement, Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), and U.S. Department of Homeland Security (DHS) conducted long-term, overlapping investigations of Villalpando Dominguez’s son, Juan Demetrio Villalpando, Jr. a/k/a “Junior,” and others. Two confidential sources made controlled purchases of narcotics in furtherance of the investigations. These controlled purchases were often negotiated with Mexico-based sources of supply and carried out by the suppliers’ associates in the Denver metropolitan area.
Drug proceeds collected from Juan Demetrio Villalpando Jr.’s customers by one confidential informant were aggregated and then sent in packages addressed to an uncharged person. The true recipient of the money, however, was Villalpando Dominguez. Villalpando Dominguez would then arrange for his son, Juan Demetrio Villalpando Jr., to receive the money in Mexico.
“Money laundering is a serious offense that enables drug traffickers to peddle their deadly wares,” said Acting U.S. Attorney J. Bishop Grewell. “We will hold offenders accountable.”
“Facilitating drug trafficking by funneling illegal proceeds back to Mexico perpetuates the scourge of the drug epidemic in our communities,” said Amanda Prestegard, IRS-CI Special Agent in Charge, Denver Field Office. “Removing these money launderers from the streets and putting them in prison is a result of the hard work of IRS-CI special agents, who proudly provide financial expertise as we work alongside our law enforcement partners to bring criminals to justice and keep our communities safe.”
“Dismantling cartels requires more than seizing drugs – it includes cutting off the flow of illicit money that fuels their operations. That’s why targeting the money laundering component of these networks is a key priority,” said FBI Denver Special Agent in Charge Mark Michalek. “With our partners at IRS-CI and ICE, the FBI continues to take a strategic, coordinated approach to bring these complex criminal enterprises to justice and safeguard all Americans from the devastating impact of illegal drugs.”
United States District Judge Charlotte N. Sweeney presided over the sentencing.
The IRS-CI, FBI, and DHS conducted the investigation in this case. The prosecution was handled by Assistant United States Attorneys Alexander Duncan and Michael Houlihan, as well as by former Assistant United States Attorney Cyrus Y. Chung.
This prosecution is a result of an investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 14 attaché posts abroad.