The activity in Adams-Morgan has been reported several times over the last couple years to my recollection. It looks like the feds finally got their act together.
You're right though. According to what I've heard and read previously, the selling was by and for illegal Mexicans/Central Americans, and it was brazen, right out there on the streetcorners of Columbia Road.
The other brand of DC Metro document fraud has been in Falls Church, home to yet another huge illegal Mexican/Central American population. That's where the the 9/11 terrorist went to get their phoney Virginia IDs.
The address used on the phoney IDs cards of Hani Hanjour, Khalid al- Midhar, Majed Moqed and Salem Alhamzi (the four who hijacked the plane that hit the Pentagon) is less than one mile down Leesburg Pike from Dar Al Hijrah Islamic Center in Falls Church.
At least two of the attackers made some sort of contact at that mosque. So in addition to a material witness being held by the feds (an Arab who purportedly met Hanjour and another guy at that mosque), an illegal Guatemalan and several others are being prosecuted for assisting in the fraudulent IDs used by the terrorists.
This clearly illustrates that the both the illegal alien and Muslim undergrounds are cooperative vehicles for terrorism.