Morad “Ben” Neman and Hersel Neman, the owners and top executives of Pacific Eurotex Corp., an import-export textile company, recently received federal prison sentences for their roles in a Black Market Peso Exchange scheme to launder money for international drug cartels.

Morad “Ben” Neman, 58, of Westwood, formerly chief executive officer of Pacific Eurotex, was sentenced to two years in federal prison, to be followed by six months of home confinement. He is jointly liable with the company to forfeit $3,178,230 million to the government.

The defendant pleaded guilty to conspiring to structure monetary transactions with a domestic financial institution, conspiring to defraud the United States by obstructing the lawful functions of the Internal Revenue Service, filing a false 2013 tax return that understated income he received from Pacific Eurotex, and aiding and assisting in the filing of another false 2013 tax return.

Hersel Neman, 59 of Beverly Hills, formerly chief financial officer of Pacific Eurotex, was sentenced to 18 months in federal prison, to be followed by six months of home confinement. He pleaded guilty to conspiring to launder money, conspiring to defraud the United States by obstructing the lawful functions of the IRS, and filing a false tax return. Hersel Neman is liable to forfeit approximately $370,000.

Pacific Eurotex was sentenced to three years of probation and ordered to pay $400,000 in relation to charges of conspiring to launder money.

The case was the result of an investigation into businesses using Black Market Peso Exchange schemes to launder narcotics proceeds for international drug cartels. The scheme allows drug traffickers with proceeds in U.S. currency to convert it to a different currency, such as Mexican pesos, via the sale of goods shipped across borders.

In September, Mehran Khalili, 50, of Beverly Hills, a brother-in-law of Hersel Neman, was found guilty of one count of conspiracy to structure financial transactions to avoid detection by law enforcement. He faces 10 years in federal prison during sentencing on Jan. 31.