Posted: Friday, November 26, 2010 7:57 pm | Updated: 12:17 pm, Mon Nov 29, 2010.

http://www.hcnonline.com/champions/news/article_4356c0ee-f9cc-11df-9ef9-001cc4c002e0.html

According to the Office of National Drug Control Policy, U. S. citizens shell out nearly $65 billion annually toward the purchasing of illegal drugs.

Money laundering, a practice involving the use of transactions to mask the origin of funds, is oftentimes fueled and generated by the distribution of the unlawful substances.

"If a person transports large sums of money that comes from criminal or narcotics then it is considered money laundering," Brad Heart, the chief of narcotics with the Harris County District Attorney's Office, said. "We've found half a million dollars on a single person to a little over $20,000."

Houston is considered to be a major hub for drug trafficking and illicit finances due to the city's infrastructure and locality.

"I think it's because Houston is centrally located, the highway system and the fact that it's a big city. From here you can go up north," Sgt. Bart Bedingfield with the Harris County Sheriff's Office Narcotics Unit said.

Drug trafficking organizations (DTOs), with members stationed all over the world, appear to be bringing their money laundering tactics to American soil.

The Houston High Intensity Drug Trafficking Area Drug Market Analysis 2009 states that the Houston's proximity to its southern neighbors has made it "one of the most significant transshipment centers used by Mexican DTOs to facilitate drug distribution from the Southwest Border to major market areas throughout the United States."

"The drugs come from Mexico and then go to Houston and then, from there, are distributed to various other places," Heart said. "Then, the money comes back to Houston and then it's sent back to Mexico."

Cocaine, marijuana and even methamphetamine are drugs that are commonly abused and trafficked here in Houston.

In order to prevent getting caught, traffickers utilize a variety of tactics to disguise their illegal activities.

"They can send drugs on cloned H-E-B trucks and make it seem like they're bringing in groceries. It then comes through and goes up north," Heart said. "They'll give some money to an 18 or 21-year-old kid and give him 20 percent to take the money back to Mexico."

Launderers in Houston continue to play an instrumental role in the process and make a profit for their involvement, according to Bedingfield.

"They have a middle man here who makes money because he sets the deals up and sets the warehouses where they can store it," he said. "So the people in Houston are making a lot of money off of it."

However, the transferring of illegal substances for cash also generates funds for those selling drugs in Mexico.

"The further north you go, the more money you can get for a kilo of cocaine," Heart said. "A kilo can go for $12,000 in Mexico, here it can go for $25,000 and Chicago you can get it for $50,000."

It's drug money laundering's financial appeal that leaves some wondering if the practice can ever be eradicated.

"Realistically we can't keep up. Nobody has the man power to do so because there's just too much money to be made in it," Bedingfield said. "But we do try. We're just getting the very tip of the iceberg."