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SPRINGFIELD, Ore. — A Mexican national who authorities say was living unlawfully in Springfield is accused of using a clothing business to launder drug trafficking proceeds amounting to more than $34 million.
Esteban Peralta Fragozo, 50, is charged in a criminal complaint with laundering alleged drug proceeds to Mexico and Honduras, and unlawfully possessing a firearm.
More Than $93 Million Was Processed Through His Springfield Clothing Store
According to court documents, between January 2018 and July 2026, approximately 179,874 wire transfers totaling more than $93 million were processed at Fragozo’s Springfield clothing business, El Kaiman Western Wear, which also provided international money transfer services.
Investigators allege that Fragozo used the business to launder more than $34 million in suspected drug trafficking proceeds.
According to court documents, officers conducted several undercover operations using a confidential informant.
Investigators allege that Fragozo processed transfers after being told the funds came from drug trafficking, using false sender information and identification documents to complete the transactions.
Law Enforcement Seized 72 Pounds of Methamphetamine
During a traffic stop, law enforcement recovered wire transfer receipts from the clothing store. That stop resulted in the seizure of approximately 72 pounds of methamphetamine, according to the complaint.
On November 4, 2026, federal agents served warrants to search Fragozo’s business, home, vehicle, and his person.
The agents recovered a Ruger 9mm pistol, ammunition, and cash from his business premises.
According to court documents, investigators have observed a dramatic increase in drug trafficking activity involving Honduran nationals in Oregon.
The complaint alleges that Mexican drug trafficking organizations increasingly use Honduran nationals to distribute fentanyl and other dangerous narcotics in major metropolitan areas, including Portland.
After his initial federal court appearance on November 4, 2026, Fragozo was ordered detained pending further proceedings.
The case is under investigation by IRS Criminal Investigation, the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Julia Jarrett and Christopher Cardani are prosecuting.
A criminal complaint is an accusation. Fragozo is presumed innocent unless and until proven guilty.
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