People v. Palazuelos CA2/3

BACKGROUND

1. The Evidence at Trial Farhad Kangavari was a textile trader living in Los Angeles County with his wife and children. In 2011 he began working with Palazuelos to launder drug money. Palazuelos lived in Culiacan, Sinaloa, Mexico. Money was delivered to Kangavari’s office in California. Merchandise was bought with the money and then sent to Mexico, where it was sold for pesos. According to the Drug Enforcement Administration, Mexican drug cartels such as the Sinaloa drug trafficking organization use this trade-based method to launder proceeds from narcotics sales. In October 2011, merchandise Kangavari had bought with more than $300,000 obtained from Palazuelos was hijacked. Palazuelos held Kangavari responsible. In the spring and early summer of 2012, Kangavari paid Palazuelos $400,000 -- a third more than the loss -- but Palazuelos was not satisfied. He told Kangavari that there was a lot of pressure on him in Culiacan and that “people” there were asking for “interest.” On July 10, 2012, Palazuelos called Kangavari around 8:00 or 9:00 p.m. and told him to go pick up some money. Palazuelos told Kangavari that he would send someone to his office the next day to…