Mexican Mafia members at Pelican Bay State Prison have used their gang associates on the streets of Southern California and elsewhere to funnel money in and out of the prison, officials say, prompting a crackdown on prisoners' personal financial dealings.
Corrections officials have identified more than a dozen Pelican Bay prisoners who have used their state-issued prison accounts to launder money collected from gang activities and drug sales, prison spokesman Lt. Steve Perez said.
The rules allow inmates to receive checks and money orders of any amount, which they can use to pay attorney bills or mortgages, buy items from the prison canteen, or give to family members or friends. The state essentially acts as a bank, withdrawing money when a prisoner seeks it.
Officials say the rules require them to make sure the checks don't bounce, but not to investigate the money's sources. Moreover, the prison does not attempt to determine how prisoners spend the money, instead relying on them to tell officials how they're using it.
"The fallacy is a guy with $20,000 can tell us, 'I want to send $10,000 to my mother or sister to buy a car or pay doctor bills or for child care.' How can we deny that?" Perez said. "All they have to do is put down a reason. They certainly are not going to tell us, ' 'Cause I want to pay my dopers.' "
The case of Frank Madriaga illustrates the problem, officials said. According to court documents, he walked out of the prison as a "made" member of the Mexican Mafia.
Back on the streets of National City in San Diego County, authorities allege, he bullied methamphetamine dealers into providing drugs at below street prices, and had those who failed to pay "taxes" threatened or beaten.
Madriaga, in turn, paid tribute to Mexican Mafia members still in the prison near Crescent City, prosecutors charged. He was accused of persuading friends to buy money orders and send them to Pelican Bay to be placed in the accounts of mafia members. Prosecutors showed copies of money orders sent by Madriaga associates to the prison.
"What are you doing?" an associate asked Madriaga after seeing him make separate piles out of collected drug money, according to court records. Madriaga allegedly told him he was going to send money to his "brothers in the bay."
Madriaga was convicted of extortion and narcotics trafficking related to his activities after he left Pelican Bay. He has denied the accusations and is appealing the conviction.
