Federal authorities have arrested a Texas man on drug trafficking charges after discovering what they describe as a significant cocaine distribution operation operating along the southern border.
Axl Omar Palacios, a 32-year-old American citizen and self-employed cosmetologist who hosted drag shows in Reynosa, Mexico, was taken into custody last month following an investigation by Homeland Security Investigations. The arrest came after federal agents observed suspicious activity at an apartment complex in Hidalgo, Texas.
According to court documents, HSI agents witnessed Palacios exiting an apartment and approaching a vehicle that had just arrived from Mexico. Agents observed him removing what appeared to be four to six medium-sized cardboard boxes from the vehicle’s trunk, loading them into a wagon, and transporting them into the apartment.
Special Agent Mark Cruz testified during a February 6 hearing that the vehicle in question had previous alerts connected to drug trafficking activity. Cruz noted that the wagon appeared to be heavily loaded, with Palacios seemingly struggling to pull it back into the apartment.
Shortly thereafter, agents observed Palacios emerging from the apartment once more, this time pulling the same wagon loaded with two cardboard boxes. These boxes were placed into a different vehicle, which then departed the complex.
A sheriff’s deputy subsequently stopped the vehicle and conducted a search. The search yielded two brown boxes containing 40 packages weighing more than 100 pounds. Field tests confirmed the white powdery substance inside tested positive for cocaine.
The driver of the vehicle, identified as Johan Eduardo Rivas Morales, told investigators he had picked up drugs from Palacios on multiple occasions. According to Agent Cruz’s testimony, Morales stated he received approximately $3,000 for each delivery.
Federal agents continued their surveillance and later observed Palacios moving additional boxes to his sister’s apartment within the same complex. Upon executing search warrants at both residences, authorities seized 77 kilograms of cocaine.
During questioning, Palacios allegedly acknowledged transferring narcotics to Morales in the past. He stated he received between $200 and $1,000 per transaction, with payment amounts varying based on the quantity of drugs transferred.
Palacios had worked as a cosmetologist for 12 years and maintained an active presence on social media, regularly posting photographs from his work and performances. He hosted drag shows at venues across the border in Reynosa, Mexico.
The defendant entered a plea of not guilty to federal drug trafficking charges on Wednesday. If convicted, he faces a sentence ranging from ten years to life in federal prison.
Defense attorney Uriel A. Guajardo stated that the case remains in its early stages. The defense team will review the evidence as it becomes available before determining their legal strategy moving forward.
The investigation represents another example of the ongoing challenges federal law enforcement faces in combating drug trafficking operations along the Texas-Mexico border. The case remains under active prosecution in federal court.
Related: Minnesota Woman Hospitalized After State of the Union Arrest
