Two executives from a Los Angeles-based freight forwarding company have been charged for running a massive smuggling scheme moving goods from the U.S. into Mexico.

What happened: Ralph Olarte, the chief financial officer of Sport LA Inc., was arrested on May 27 at Los Angeles International Airport. Humberto Lopez Belmonte, the company’s CEO, was also arrested in Los Angeles.

• Prosecutors say since 2013, the pair used shell companies and fake paperwork to send billions of dollars' worth of goods across the border.
• The goods were often mislabeled, and in some cases included contraband.
• The scheme allegedly involved bribing Mexican customs officials, sending kickbacks to drug cartels, and submitting fake certificates showing Mexican import taxes were paid.
• Money from the sales was laundered back into U.S. accounts through sham companies.

The charges: The list of federal counts includes conspiracy, wire fraud, money laundering, smuggling, and submitting false export information. Olarte and Lopez, along with Sport LA and two other companies, could face decades behind bars if convicted.

By the numbers: Prosecutors say the group helped dodge hundreds of millions of dollars in duties owed to Mexico, according to the Justice Department.

Lopez has been released on $100,000 bond while awaiting his trial, which is set for July 21 in Los Angeles federal court.