Armed with search warrants, hundreds of federal officers raided at least 70 businesses in Los Angeles' fashion district and found about $90 million worth of money and drugs that were allegedly laundered for drug cartels.

The operation began early on Wednesday as FBI officers cracked glass windows of closed up stores and scoured the area for money which was reported to be laundered for drug traffickers and the notorious Sinaloa drug cartel.

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According to U.S. authorities, drug cartels have found new methods of distributing profits from drug trafficking following the strict implementation of financial regulations in Mexico in 2010.

"Because Los Angeles is at the forefront of this money laundering activity, law enforcement in Los Angeles is now at the forefront of combatting this issue," said Assistant United States Attorney Robert Dougdale, adding that the city has become the 'epicenter of narco-dollar money laundering.'

During the raid, nine people were arrested, all of whom pleaded not guilty in court, while the cash found sitting at a store was seized as evidence following three separate indictments in the country's biggest crackdown on Mexican drug cartels.

Allegedly, once the drugs are sold, traffickers go to the Los Angeles fashion district to ship the narcotics and consolidate income from the venture, making the clothing stores a perfect cover up for the crime.

In one of the indictments involving QT Maternity, about $140,000 was laundered as ransom for a cocaine dealer kidnapped and tortured by the Sinaloa drug cartel.

The maternity apparel company was accused of distributing cash from cartels to 17 other businesses, following orders from a Mexican cartel.

Several employees at Gayima Underwear are also accused of accepting cash from an undercover agent during a sting operation.

A third case involves an employee, finance officers, and the chief executive of the Pacific Eurotex Corporation, together with one of their kin, all of whom allegedly received $370,000 in cash and split up the money into several smaller deposits to evade detection.

TagsLos Angeles, fashion district, FBI, raid, Cash, Money-Laundering, Mexico drug cartel, Drugs, Money-Laundering, drug cartels, Sinaloa