Shipping company executive accused of running multi-billion-dollar smuggling scheme

The chief financial officer of a Los Angeles shipping company was arrested for allegedly conspiring with the company’s chief executive in a bribery, fraud and kickback scheme to smuggle billions of dollars’ worth of goods from the United States to Mexico and avoid customs duties, officials announced today.

Ralph Olarte, 55, of Glendale, the CFO of Sport LA Inc., was arrested late Tuesday at Los Angeles International Airport, according to the U.S. Attorney’s Office.

Also charged was Humberto Belmonte, 53, of Mexico City, who pleaded not guilty to federal charges and is awaiting trial.

Olarte and Lopez are charged with conspiracy to smuggle goods from the United States. Both defendants and their company, Sport LA Inc., are also charged with smuggling goods from the United States, knowingly submitting false and misleading export information, wire fraud and other charges.

According to an indictment unsealed Tuesday, Olarte and Lopez operated a lucrative international shipping enterprise they used to smuggle billions of dollars worth of goods from and through the United States into Mexico.

Federal prosecutors contend the defendants frequently concealed the nature of the shipped goods and submitted millions of false and misleading statements to U.S. customs officials. They also allegedly used shell companies in Mexico to shield their true customers, and created and presented false documents — including sham certificates for paid Mexican import taxes.

They also bribed Mexican customs officials, paid kickbacks to drug cartels — including the Jalisco New Generation Cartel — and smuggled large quantities of cash into the U.S. to avoid reporting requirements, the indictment alleges.

Olarte and Lopez allegedly laundered the money raised in the scheme through the shell companies and ultimately into the companies’ U.S. bank accounts, according to the U.S. Attorney’s Office.

As a result of the conspiracy, prosecutors contend, Olarte and Lopez personally received millions of dollars in illicit proceeds. If convicted as charged, Olarte and Lopez could face decades in federal prison, prosecutors noted.