Thu, Feb 20, 2014

http://www.indystar.com/story/news/crime/2014/02/19/el-rodeo-restaurant-empire-accused-of-money-laundering/5622863/

Civil forfeiture lawsuits filed in Marion and Tippecanoe counties against El Rodeo and dozens of interconnected restaurants and business entities raided across the state last fall accuse the Mexican eatery empire of being a money laundering operation.

The lawsuits do not detail the nature of the alleged money laundering and other illegal activity by the businesses and people affiliated with them. The documents, filed in the past week, mention millions of dollars seized in bank accounts, as well as foreign currencies, gold coins, vehicles and homes. The November raids are believed to be part of a grand jury probe. Prosecutors have not elaborated.

The forfeitures total more than $5 million.

Court documents released Wednesday by the Marion County prosecutor’s office reveal that in November investigators seized more than $2.7 million in U.S. currency after freezing bank accounts of dozens of individuals, restaurants and other businesses listed as defendants in the case. Police also seized two vehicles, the equivalent of $1.1 million in foreign currency, 15 Mexican gold coins and one unknown foreign coin from the Indianapolis home of El Rodeo principal Francisco Salgado.

A third vehicle was seized from Enrique Melendez and Rafael Gonzalez, two of the nearly 30 other listed defendants.

Two complaints filed in Marion County on Jan. 2 call for the forfeiture of Salgado’s property in the 8400 block of Skipjack Drive and the property of El Rodeo secretary Jose Melendez in the 10000 block of Geist Ridge Court in Fishers. According to the Marion County assessor’s office, Salgado’s property has a 2013 gross assessed value of $460,300. The Hamilton County assessor’s office shows that Melendez’s property has a 2013 appraised value of $634,200.

A total of six civil forfeiture complaints were filed in Marion County from Dec. 2 to Tuesday.

A criminal forfeiture occurs after a defendant is convicted of a crime. In a civil forfeiture, such as the El Rodeo case, no one has been convicted.

“No criminal charges have been filed in this matter, and no further information regarding the ongoing investigation is available at this time,” Marion County prosecutor’s office spokeswoman Peg McLeish said in an email.

J. Richard Kiefer and Jillian C. Keating are listed as attorneys involved in the case, but it is unclear whom they represent. Calls placed to Kiefer and Keating for comment Wednesday were not returned.

On Friday, the Tippecanoe County prosecutor’s office filed a civil forfeiture lawsuit cataloging the seizure of $3.4 million from businesses and individuals with ties to El Rodeo in at least 11 Indiana counties.

Calls placed to that prosecutor’s office were not returned Wednesday.

The suits claim that all of the seized money, vehicles and property were obtained illegally. Therefore, the defendants should forfeit the money to the criminal justice system.

Police across the state served search warrants the week of Nov. 18 during raids at restaurants and homes. El Rodeo establishments in Indianapolis and Avon, Fortville, Lafayette, Mooresville, Richmond and West Lafayette were searched.

Other Mexican-themed restaurants also were raided, including El Jaripeo eateries in Indianapolis and Frankfort, Lebanon and Zionsville; Los Toros restaurants in Indianapolis; and three La Carreta Restaurant & Bars, in Merrillville, Schererville and Vincennes.

The single largest cash seizure mentioned in the civil forfeiture complaints came from a business with no address that was listed as “El Rodeo #11, LLC.” Court documents state that $967,840.81 was taken from a PNC bank account associated with that entity.

The Marion County complaints accuse the defendants of running a corrupt business enterprise through a pattern of racketeering activity.

Court documents state that the suspected money laundering took the form of receiving, concealing, possessing, transferring or transporting the proceeds of criminal activity. The suit goes on to state that the money laundering involves at least two such incidents of the criminal conduct. There is no mention of what kind of criminal conduct took place.

Theft accusations relate to extorting unauthorized control over state property by illicitly retaining and failing to report money owed to the state as sales taxes, use taxes or other taxes on several occasions.

The Tippecanoe County lawsuit includes accusations of forgery and perjury related to tax documents, business formation documents, employment records, tax returns and other documents containing false or misleading information.

In addition to the request for forfeiture of the cash, vehicle and property, both county complaints ask the court to:

• Grant a permanent injunction against further operation of alleged “racketeering activity.”

• Require the defendants to divest themselves of any interests in the named restaurants and deliver the funds to the county governments and state.

• Prevent the owners from reorganizing their businesses.

• Revoke any professional licenses the defendants might have from the state of Indiana.