Federal immigration agents shocked the city of Hibbing this week when they arrested eight people during coordinated raids at two Mexican restaurants. Officials confirmed that the arrests took place on Wednesday and were part of a year-long investigation linking drug sales to the businesses.
Federal Raids in Hibbing Uncover Hidden Drug Operations
The raids targeted La Tequila Taco Shop and El Charro Mexican Bar and Grill, both owned by Luis Antonio Garcia Lopez, a 49-year-old businessman who also uses the name Carlos Alonso Escobedo. According to federal investigators, Lopez’s restaurants were not just serving food but were also being used to support illegal activities in Hibbing.
Court filings revealed that local police had already been investigating possible cocaine sales at La Tequila before federal agents joined the case. When U.S. Immigration and Customs Enforcement (ICE) received information about some workers’ immigration statuses, they began a joint operation with the Lake Superior Violent Offender Task Force.
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An investigator involved in the case wrote in a search warrant that the drug money was believed to be “contributing to the proceeds of Lopez’s numerous businesses.” The document further claimed that Lopez had been “intentionally conducting and participating in a pattern of criminal activity” and was employing undocumented workers, offering them housing and vehicles as part of the operation in Hibbing.
Hibbing Employee Charged with Drug and Firearm Offenses
Among those detained was Aracadio (Arcadio) Carrera Flores, a 36-year-old restaurant employee. He is currently in local custody and faces charges of third-degree sale of cocaine and possession of a firearm by an undocumented person.
Investigators said Flores had been living in a makeshift area in the back of La Tequila. In September, he allegedly sold cocaine to an undercover officer who had been posing as a buyer. The sale reportedly took place inside the restaurant after hours, where officers later found divided living spaces created with large sheets of fabric.
According to court records, the undercover officer paid $100 for a small amount of cocaine, indicating that Flores might have been earning nearly $5,000 per ounce of the drug. During a search on Wednesday, officers discovered a Glock pistol in a desk drawer near the same spot where Flores had previously retrieved the drugs. Investigators also found mail with Flores’ name and fake identification documents.
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Flores denied owning the gun and claimed he had no cocaine in his room, though he admitted that he had previously bought some from a man named Larry. Judge Rachel Sullivan set his unconditional bail at $20,000 and placed him under intensive pretrial supervision. However, federal authorities issued a hold that prevents him from being released from custody.
Law enforcement officials in Hibbing said they carefully planned the operation over several months and coordinated efforts between local police, ICE, and Homeland Security Investigations. Officers positioned themselves across multiple sites, including restaurant properties and employee residences, to ensure no one escaped during the raids.
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The drug investigation began in late 2023 and widened in 2024 after police arrested Larry Connail Wilkins, a repeat drug offender found with a large amount of cocaine. His phone records led investigators to Aracadio (Arcadio) Carrera Flores, whose Mexican phone number raised suspicions that he was a supplier within Hibbing’s drug network.
Using a fake Facebook profile and a translation tool, an undercover investigator contacted Flores, who said he worked at La Tequila Taco Shop and later offered to sell cocaine. Throughout the summer, police received complaints about drug sales at bars and restaurants in Hibbing, and a June tip linked La Tequila to the activity.
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Investigators found that restaurant owner Luis Antonio Garcia Lopez owned about 20 vehicles and several restaurants across Minnesota and Wisconsin. Many employees lived in two houses in Hibbing and Chisholm or in makeshift rooms behind La Tequila. In August, a tipster reported after-hours cocaine sales, and officers learned Lopez had tried to buy other Hibbing bars with large cash payments.
Investigators found that Flores exchanged over 130 messages with Wilkins before police arrested Wilkins, and later, border agents detained Flores’ girlfriend, who confirmed his identity. During Wednesday’s raid, ICE and local police seized drugs, a firearm, and records showing several employees were undocumented. ICE confirmed all eight arrestees lacked legal status, saying its priority is removing those who threaten public safety.
