Hibbing, MN – Federal immigration authorities have arrested eight individuals following coordinated raids at two Mexican restaurants in Hibbing as part of a year-long drug trafficking investigation. Officials say the businesses, owned by the same man, were allegedly funded by cocaine sales and employed undocumented workers provided with housing and vehicles.
The Incident: Federal Raids Target Two Restaurants
According to court filings, U.S. Immigration and Customs Enforcement (ICE) agents carried out simultaneous raids on Wednesday morning at La Tequila Taco Shop and El Charro Mexican Bar and Grill, both located in Hibbing.
The establishments are owned by Luis Antonio Garcia Lopez, 49, who also goes by Carlos Alonso Escobedo, investigators said. The operation followed intelligence gathered by the Lake Superior Violent Offender Task Force and Homeland Security Investigations (HSI) linking the restaurants to drug sales and immigration violations.
“Your affiant believes Lopez has been intentionally conducting and participating in a pattern of criminal activity and investing criminal proceeds back into his businesses,” an investigator wrote in a search warrant affidavit.
Authorities allege that Lopez employed illegal immigrants, many of whom lived in restaurant-owned housing and worked for him under false documents.
Investigation and Evidence: Drug Sales Linked to Business Profits
The raids were the culmination of a 12-month joint investigation into cocaine trafficking in northern Minnesota. Investigators first began monitoring activity at La Tequila Taco Shop after reports surfaced of drug sales occurring inside the restaurant.
Court documents reveal that one of Lopez’s employees, Aracadio Carrera Flores, 36, became a key target. Flores allegedly sold cocaine to an undercover investigator inside La Tequila in September 2024 and was later charged with third-degree sale of cocaine and possession of a firearm by an illegal alien.
When officers executed search warrants, they found a Glock pistol and identification documents bearing Flores’ name in a back room used as living quarters. Investigators also discovered evidence of makeshift living spaces divided by fabric sheets, confirming that employees were being housed inside the restaurant.
Further investigation revealed that Lopez owned around 20 vehicles, several residential properties, and other restaurants in Minnesota and Wisconsin, all allegedly tied to the flow of drug proceeds.
Court Proceedings and Federal Response
Flores remains in custody at the St. Louis County Jail and is subject to a federal immigration hold preventing his release. Judge Rachel Sullivan set bail at $20,000, though Flores will remain detained pending coordination between state and federal agencies.
Meanwhile, ICE has not released the names of the other seven individuals arrested but confirmed they were in the country illegally.
In a statement, ICE said:
“Our top priority remains the identification, arrest, and removal of criminal aliens who pose a threat to public safety and national security … including convicted felons, gang members, human traffickers, and repeat immigration violators.”
The agency added that anyone who overstays visas or ignores court orders is “in violation of federal law and subject to enforcement action.”
Statements and Reactions from Local Authorities
St. Louis County Sheriff Gordon Ramsay stated earlier this year that while his office typically does not participate in routine immigration enforcement, it cooperates with ICE in cases involving public safety threats or criminal activity.
“We are willing to work with federal agencies when there’s a clear risk to the community,” Ramsay said.
The sheriff’s office, along with federal task forces, had reportedly received multiple citizen complaints throughout the year about drug activity tied to restaurants and bars in Hibbing.
Local residents had also tipped off investigators about cash-only business practices and suspicious late-night activity at Lopez’s establishments.
Background Context: Organized Crime and Immigration Enforcement
The Lake Superior Violent Offender Task Force and Homeland Security Investigations jointly managed the probe, highlighting growing collaboration between local law enforcement and federal immigration authorities in combating drug-fueled organized crime.
Investigators allege that profits from drug trafficking were being funneled through restaurant operations — a model increasingly used by small business owners to launder illicit proceeds.
Under federal law, employing undocumented workers while engaging in criminal activity can result in asset forfeiture, tax evasion charges, and enhanced penalties under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Ongoing Developments and Next Steps
As of Friday, ICE had not released further details regarding the immigration status or country of origin of the eight arrestees. Federal prosecutors are expected to file additional charges following the review of financial and digital evidence seized during the raids.
Both La Tequila Taco Shop and El Charro Mexican Bar and Grill remained closed as of Friday, with phone calls going unanswered. Officials say the businesses could face forfeiture proceedings if prosecutors confirm they were used to facilitate drug distribution or employ unauthorized workers.
Conclusion
The Hibbing restaurant raids mark a significant escalation in the fight against drug trafficking and labor exploitation in northern Minnesota. As the investigation continues, authorities say they aim to dismantle the criminal network funding local businesses with drug money — and hold those involved accountable under federal law.
What are your thoughts on this case and the role of ICE in local investigations? Share your opinions in the comments below.
