Springfield Man Charged with Laundering Millions in Drug Money and Illegal Gun Possession



A 50-year-old Springfield man has been charged with using his business to launder millions of dollars in suspected drug trafficking money and with illegally possessing a firearm while living in the U.S. without legal status.

Esteban Peralta Fragozo, a Mexican national, owned and operated El Kaiman Western Wear, a store that sold clothing and also offered international money transfer services. Federal investigators from the IRS Criminal Investigation division, the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) say he used the business to move drug proceeds to Mexico and Honduras.

Court documents allege that between January 2018 and July 2026, the business handled nearly 180,000 wire transfers totaling more than $93 million. Of that amount, more than $34 million is suspected to have been drug money sent to known trafficking areas in Mexico and Honduras.

Investigators say undercover agents and a confidential informant worked with Fragozo. According to the complaint, he processed multiple transfers even after being told the money came from drug trafficking, and he used fake sender names and identification to complete the transactions. In one related case, police found El Kaiman wire transfer receipts during a traffic stop that also yielded about 72 pounds of methamphetamine.

On November 4, 2026, federal agents searched Fragozo’s home, business, vehicle, and person. At the store they recovered a Ruger 9mm pistol, ammunition, and a large amount of cash. Fragozo admitted he owned the gun and that he did not have legal immigration status in the United States.

U.S. Attorney Scott E. Bradford said the case shows how drug organizations rely on people who help move and hide their profits. “We will continue working with our law enforcement partners to identify, dismantle, and prosecute the financial infrastructure that supports transnational drug trafficking organizations and fuels the flow of fentanyl and other dangerous drugs into our communities,” he said.

Investigators have also noted a sharp rise in drug trafficking activity in Oregon involving Honduran nationals, whom Mexican cartels allegedly use to distribute fentanyl and other drugs in areas including the Portland metro region.

Fragozo appeared in federal court the same day agents arrested him and was ordered held without bond. A criminal complaint is only an accusation; defendants are presumed innocent unless proven guilty in court.

The investigation is being handled jointly by IRS Criminal Investigation, the DEA, and the ATF.

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© Written by: M. Weber

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