Mexico City, Mexico - Mexican authorities said they have dismantled a criminal gang based in the western state of Jalisco that printed counterfeit bills on a large scale and put them in circulation.

"The Bank of Mexico (central bank) so far has identified more than 125,000 fake 500 peso bills whose creation is attributed to this gang," said Tomas Zeron, director of the Attorney General's Office's Criminal Investigations Agency.

He showed photographs of six people arrested in the course of an investigation conducted by units of the AG's office in coordination with the navy and the Bank of Mexico.

Authorities impounded properties, 10 vehicles, and two military-issue weapons, as well as paper, ink, and tools and machinery for making counterfeit bills.

"There's a line of investigation that points to the participation of some elements of the municipal police of Guadalajara, who may have provided protection so the ring could operate in that city more freely and safely," Zeron said.

He added that authorities are trying to determine how the ring obtained the counterfeiting machinery and investigating the possible existence of similar operations in other states.