Mexican Drag Queen Pleads Not Guilty in U.S. Federal Cocaine Trafficking Case

A drag queen show host from Reynosa, Tamaulipas, and a cosmetologist pleaded not guilty to their alleged roles in a cocaine smuggling scheme that took place in Hidalgo, Texas. Axl Omar Palacios, 27, who lives in the Mexican border city, entered a not guilty plea on Tuesday at the federal courthouse in McAllen, Texas.

According to court records, Palacios is suspected of operating a stash house used to facilitate receiving narcotics from smugglers after crossing the border and transferring them to others for transportation further into the United States. U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents first encountered Palacios after a vehicle suspected of transporting narcotics entered the United States from Mexico in late January.

According to a report at ValleyCentral.com, HSI Special Agent Mark Cruz testified in federal court that the vehicle followed by authorities had “alerts” for drug trafficking. The suspect vehicle was observed arriving at an apartment complex in Hidalgo, Texas, just south of McAllen, shortly after leaving the port of entry.

According to authorities, a male subject exited an apartment pulling a wagon. The individual, later identified as Palacios, was allegedly observed opening the vehicle’s trunk, retrieving approximately 4-6 medium-sized cardboard boxes, and loading them into the wagon. Agents then observed Palacios pulling the wagon back into the residence, according to the criminal complaint.

A short time later, agents observed a white Toyota Tacoma, allegedly driven by Johan Eduardo Rivas-Morales, also named as a defendant by HSI in the complaint. Agents performing surveillance at the residence where Palacios allegedly pulled the wagon into saw Palacios exit, pulling the wagon loaded with two cardboard boxes. The boxes were loaded into the Toyota before the vehicle left the suspected stash house.

Court records indicate a Hidalgo County Sheriff’s deputy conducted a traffic stop on the white Toyota and identified Johan Eduardo Rivas-Morales, a citizen of Mexico, was driving the vehicle. After a consensual search, authorities found two brown boxes containing 40 packages that contained a white powdery substance that tested positive for the properties of cocaine, weighing approximately 52.38 kilograms.

On the same day, special agents allegedly observed Palacios move the wagon from the location suspected of being a stash house to another unit in the same residential complex. Special agents executed a federal search warrant on both residences and located 22 additional packages, also found to contain a white powdery substance that tested positive for the properties of cocaine, weighing 25.5 kilograms.

According to authorities, both Palacios and Rivas-Morales admitted to participating in the transfer of the cardboard boxes and that they knew the transaction involved narcotics. Rivas-Morales told investigators he had retrieved narcotics from Palacios on other occasions. Palacios confirmed this to investigators and allegedly told investigators he is paid $200.00 to $1,000 U.S. dollars, depending on the quantity of narcotics transferred.

Palacios is charged with conspiracy to possess with the intent to distribute cocaine, a schedule II-controlled substance, and if convicted, faces a term of imprisonment that ranges from ten years to life in prison in addition to a hefty fine. Palacios remains in custody pending trial due to his strong ties to Mexico.

According to court documents, Palacios is a self-employed cosmetologist in Reynosa, Mexico, and for the last six months has also worked as a drag show host in the same border city in Mexico.

Randy Clark is a 32-year veteran of the United States Border Patrol.  Before his retirement, he served as the Division Chief for Law Enforcement Operations, directing operations for nine Border Patrol Stations within the Del Rio, Texas, Sector. Follow him on X (formerly Twitter) @RandyClarkBBTX.