Reported by Benjamin Weiser

(Summary featured below. To read full report, go to: https://www.nytimes.com/2025/12/05/nyregion/dea-agent-money-laundering-mexican-cartel.html)

A shocking federal indictment unsealed in Manhattan alleges that Paul Campo — a 25-year veteran of the Drug Enforcement Administration and former deputy chief of its financial operations office — agreed to launder up to $12 million for what he believed was the Jalisco New Generation Cartel (CJNG). Prosecutors say Campo and his associate, 75-year-old Robert Sensi, converted roughly $750,000 in cash into cryptocurrency as part of an undercover sting involving a confidential informant posing as a cartel operative.

According to the indictment, Campo retired from the DEA in 2016 and began consulting in financial matters, but he soon used that expertise for what he thought was cartel business. During meetings in Manhattan and Tampa earlier this year, he reportedly discussed multiple laundering techniques — including real estate investments, prepaid cards, bulk-cash smuggling, and crypto conversions — all while claiming he had been hired by cartel leaders before “to get their money back.” Prosecutors say the two men charged an 8% fee for their services.

The informant, known only as CS-1, supplied the cash used in the sting and repeatedly met with Campo and Sensi to build trust. At one point, CS-1 asked whether Campo would arrest him; Campo reportedly replied that he could not guarantee anything, though he emphasized he was long retired and now simply a consultant. There’s no indication the defendants interacted with real cartel members or that any funds reached CJNG.

Federal authorities also accuse Campo and Sensi of agreeing to help the supposed cartel acquire commercial drones, AR-15s, M16s, M4 carbines, grenade launchers, and even rocket-propelled grenades — an escalation prosecutors say underscores the severity of their intent. Both men were arrested, detained, and pleaded not guilty.

U.S. Attorney Jay Clayton said Campo “betrayed the mission he was entrusted with for 25 years,” calling CJNG a violent criminal organization New Yorkers want dismantled. DEA leadership expressed similar outrage, stating that wearing the badge does not shield anyone from accountability. The case marks one of the most startling insider-corruption allegations in DEA history, blending cartel intrigue, cryptocurrency laundering, and an undercover operation that exposed a dramatic reversal of allegiance by a once-trusted agent.