Horse trainer with cartel ties in court

AUSTIN, Texas (KXAN/AP) - The Austin horse trainer charged with laundering money for a Mexican drug cartel is expected in court Monday morning.

An investigator testified during a Friday hearing that Eusevio Huitron was getting paid around $40,000 a month for training horses.

By 3 p.m. Friday, they rested for the day -- set to pick up Monday at 10 a.m.

And while Huitron's family did not want to talk on Friday, his older brother said that he's being falsely accused.

Jesus told The Associated Press on Wednesday that Huitron has been a horse trainer since 1994 and has nothing to do with "drugs, or cartels, or any of this foolishness."

He also said he was hiring an attorney for his brother.

Authorities arrested Huitron on Tuesday as part of a federal indictment into alleged quarter-horse racing operations with links to the notorious Zetas drug cartel.

The indictment alleges Huitron trained horses for the cartel and used a real estate business to launder drug profits.

The indictment said the organization generated millions of dollars and that proceeds were used to buy, train, breed and race American quarter-horses.

KXAN News went by Huitron's house in East Austin and talked to his wife Tuesday evening. She claims that her husband trained horses but she didn't know why he was arrested. Huitron's wife said she hasn't heard from him since officials whisked him away Tuesday morning.

According to federal records, authorities also confiscated property in Bastrop County. This property was used by Huitron as a horse training facility. When KXAN News visited the location in Dale, Texas, there were several horses still on the property, as well as horse equipment.

Authorities were also working on confiscating numerous quarter horses, one of which was "Tempting Dash." 
Huitron trained this particular horse and the horse ended up winning the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, in October 2009.

Defendants in federal custody

A total of eight defendants are now in federal custody in connection with this case.

• Jose Trevino Morales: Arrested last week in Oklahoma. In federal custody awaiting transfer to the U.S. Courts Western District of Texas.
• Zulema Trevino: Arrested last week in Oklahoma. In federal custody awaiting transfer to the U.S. Courts Western District of Texas.
• Carlos Miguel Nayen Borbolla: Arrested last week in California. In federal custody awaiting transfer to the U.S. Courts Western District of Texas.
• Francisco Antonio Colorado Cessa: Arrested last week in Houston and had his initial appearance Friday afternoon in the Southern District of Texas before U. S. Magistrate Judge Stephen Smith. He remains in federal custody. A detention hearing is scheduled for Thursday at 10 a.m. before U.S. Magistrate Hanks in Houston.
• Fernando Garcia: Arrested last week in New Mexico. Appeared in federal court Friday morning in Las Cruces, N.M., and waived his detention. He remains in federal custody awaiting transfer to U.S. Courts Western District of Texas.
• Adan Farias: Arrested last week in California. He remains in federal custody awaiting transfer to U.S. Courts Western District of Texas.
• Eusevio Huitron: Arrested last week in the Austin area. Appeared Friday afternoon before U.S. Magistrate Judge Andrew Austin in Austin for his detention hearing. The hearing has recessed and will reconvene on Monday.
• Felipe Alejandro Quintero: Arrested last week in California. He remains in federal custody awaiting transfer to U.S. Courts Western District of Texas.

Meanwhile, six people remain fugitives.

• Miguel Angel Trevino Morales
• Oscar Omar Trevino Morales
• Victor Manuel Lopez
• Sergio Rogelio Guerrero Rincon
• Raul Ramirez
• Luis Gerardo Aguirre

Federal investigation

An indictment unsealed Tuesday accused Miguel Angel Trevino Morales, a key figure in the Zetas drug operation, of setting up a horse operation that a younger brother operated from a ranch near Lexington, Okla., south of Oklahoma City. Millions of dollars went through the operation, which bought, trained, bred and raced quarter horses throughout the southwest United States, including the famed Ruidoso Downs track in New Mexico.

"This case is a prime example of the ability of Mexican drug cartels to establish footholds in legitimate U.S. industries and highlights the serious threat money laundering causes to our financial system," said Richard Weber, the chief of the IRS' criminal investigation unit.

Seven of the 14 people indicted were arrested, including Jose Trevino Morales and his wife, Zulema. Another Trevino brother was also charged.

Prosecutors asked that no bond be set for Trevino fearing he would either flee or intimidate witnesses. He declined to comment at the courthouse.

The indictment describes how the Trevino brothers and a network quietly arranged to purchase quarter horses with drug money at auction and disguise the source of the funds used to buy them so that the Zetas' involvement