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News
Release
FOR IMMEDIATE RELEASE
December 22, 1999
STATEMENT
BY ACTING DEA ADMINISTRATOR
DONNIE R. MARSHALL ON OPERATION JUNO
According to Donnie
R. Marshall, Acting DEA Administrator, "It is the enormous profits to
be gained from drug trafficking which fuels the drug trade. DEA has had
great success over the years in setting up 'front' money laundering operations
to take down drug traffickers. The quantities of cash that traffickers
take in on a daily, weekly, and monthly basis is staggering. Each $20
bill must be transported or 'laundered' so the drug cartels can enjoy
their profits. Through the offer of complex financial services, we successfully
struck where it hurts, in their pockets."
"OPERATION JUNO represents
a new level of U.S./Colombian cooperation. This is the first time Colombian
authorities have seized this volume of trafficker accounts based on information
derived from a joint investigation by U.S. law enforcement agencies. The
narco dollars were sold on the black market in exchange for Colombian
pesos. We will also go after the dollar accounts in the U.S., and other
foreign countries that have received laundered monies," Marshall added.
"This is a significant step in striking out against the black market peso
system that launders billions of drug dollars every year. U.S. businesses
should be cautious and diligent about accepting third party payments for
goods shipped or purchased by drug producing countries."
"OPERATION
JUNO" INDICTMENT TARGETS FIVE MAJOR TRAFFICKERS AND $26 MILLION WORTH
OF LAUNDERED DRUG PROCEEDS
Richard H. Deane,
Jr., United States Attorney for the Northern District of Georgia; John
Andrejko, Special Agent in Charge, Drug Enforcement Administration, Andre
Martin, Chief, Criminal Investigation Division, Internal Revenue Service;
Beverly Harvard, Chief, Atlanta Police Department; Bobby Moody, Chief,
Marietta Police Department-, and Ron Davis, Chief, Doraville Police Department,
announce that a federal grand jury in Atlanta has returned separate indictments
against 5 defendants from Colombia, and other charges are now pending
in other states in the United States and several countries around the
world, relating to a multi-million dollar scheme involving money laundering
and drug distribution. According to Deane:
The indictments name
ARMANDO MOGOLLON, 36, a/k/a "Nicolas," HECTOR FABIO BOTERO, 35, a/k/a
"Rigoberto," JUAN MONTOYA, 51, JUAN CARLOS ARIAS, 39, and SAMUEL VALLEJO,
39, all of Colombia, and who are currently believed to be in Colombia,
and charge the defendants with conspiracy to launder money, conspiracy
to traffic in drugs, and multiple money laundering counts, The indictments
charge that from October 1996, to August 1999, the defendants conspired
to launder drug money and traffic in narcotics in the Northern District
of Georgia and elsewhere.
Besides the five
named defendants above, 40 arrests have been made in the United States
during the course of the investigation. 15 additional defendants are in
the process of being arrested today in New York and Chicago during the
takedown process of "Operation Juno," and they face charges in those respective
federal jurisdictions. Civil seizure warrants are also being brought against
59 domestic bank accounts worldwide. Approximately $26 million in drug
proceeds were targeted for seizure. $10 million was seized during the
investigation, and the balance is being seized in 59 accounts at 34 U.S
banks, and 282 accounts at 52 foreign banks.
During the course
of the investigation 59 pickups of U.S. dollars were affected. Subsequent
enforcement activity resulting from these pickups led to the seizure of
3,601 kilograms of cocaine, 106 grams of hashish oil.
The Drug Enforcement
Administration and the Internal Revenue Service Criminal Investigation
Division began a pro-active undercover money laundering "sting" investigation
in September 1996, and called it "Operation Juno," based out of a rented
office building in suburban Atlanta, with a company called "Airmark."
DEA and IRS-CID Special Agents gained permission from the Attorney General
to open a legitimate stockbrokerage firm in that office which served to
validate the undercover money laundering operation. (NOTE No stock trades
were executed through the undercover stockbrokerage firm.)
Operation Juno was
initiated after the seizure of approximately 386 kilograms of liquid cocaine,
which had been found concealed and shipped in frozen fish from Cartagena,
Colombia, in July 1995, and shipped under the name of the Colombian company
"COLAPIA S.A," whose U.S. distribution center was in the Atlanta area.
Investigation of
"COLAPIA S A," revealed that company indicated that the Atlanta owner
was a partner with Arfranio ("Phanor") Arizabaleta Arzayur, a prominent
Cali, Colombia, narcotics trafficker. Members of his organization referred
Operation Juno to other drug trafficking organizations in need of financial
and money laundering services. Operation Juno then targeted those drug
trafficking organizations, their associates and activities, by offering
financial services to launder their drug proceeds.
At the request of
one of the five indicted defendants, Operation Juno would pick up drug
proceeds usually ranging between $100,000 and $500,000 in U.S. currency.
The pickup of drug proceeds was conducted in public areas such as restaurants,
parking lots, shopping centers and city streets. The narcotic proceeds
that were provided to Operation Juno personnel in cash were often delivered
in gym bags, duffle bags, luggage, and boxes. Drug money pickups were
made in Dallas, Houston, New York, Newark, Providence, Miami, Chicago,
Madrid, Spain, and Rome, Italy. Operation Juno later wire transferred
the monies from the collection city to an undercover bank account in Atlanta.
The monies were then distributed to various accounts in the U.S. and around
the world at the direction of the targeted individuals.
Operation Juno then
contracted a third-party money exchanger in Colombia, who typically would
sell the U.S. dollars for pesos on the Colombian Black Market peso Exchange.
Colombian businessmen, who needed U.S. dollars for purchases of computers,
electronic equipment, and other goods and services from companies in the
United States, and were attempting to evade Colombia's restrictions, tariffs,
and taxes, contracted the third-party money exchanger to pay their bills
in the U.S. with those same dollars, which technically never left the
United States. The Colombian businessmen would tell the third party money
exchanger where Operation Juno should wire transfer the dollars. The Colombian
businessmen would then release an equal amount of pesos to the dollars
they received, and the third-party exchanger, at the direction of Operation
Juno, then deposited the pesos into the drug traffickers' designated accounts
in Colombia. Once the Colombian pesos were deposited into the designated
bank accounts, the money laundering contract with the narcotics traffickers
was fulfilled.
Richard H, Deane,
Jr., United States Attorney for the Northern District of Georgia said
of the case. "The many agents involved in this case have demonstrated
outstanding cooperation and many, many long-term contributions that have
set this case apart. I commend all of them for their efforts." Lawrence
0. Anderson, of the Drug Division of the United States Attorney's Office
told a morning news conference held at the DeKalb County office site of
the undercover operation, "This was an extremely complex case where, in
essence, the defendants took millions of dollars in drug money in the
U.S., and millions in pesos in Colombia, and laundered them both without
the money physically leaving either country. It was only because of the
tireless work of the investigators that these drug kingpins and runners
around the U.S. and the world are now debilitated."
DEA Special Agent
In Charge John Andrejko said of the case, "For the first time in drug
enforcement history, the U.S. government has set up an undercover stockbrokerage
firm to aid in intercepting drug dollars destined for the Colombian black
market. U.S. businesses must be diligent about accepting third party payments
from countries where there is a known drug trafficking problem. We hope
this is a significant first step in striking out against the black market
peso system that launders billions of drug dollars every year."
IRS Criminal Investigation
Chief Andre Martin said of the case, "The black market peso exchange is
another example of the evolutionary nature of sophisticated money laundering,
and the increasing nonfactor of geographical boundaries as an impediment
to the facilitation of financial crimes. Along with the internet, this
type of financial transaction exchange represents the new frontier of
money laundering."
In connection with
the Operation Juno investigation, the Asset Forfeiture and Money Laundering
Section of the Department of Justice filed a civil forfeiture complaint
on November 23, 1999, in U. S. District Court in the District of Columbia
seeking forfeiture of laundered narcotics proceeds traced to approximately
300 foreign bank accounts, including over 250 accounts in Colombia.
(News Media Note-
background material including graphics and additional details concerning
Operation Juno are available in a separate booklet at the news conference.)
Members of the public
are reminded that the indictment contains only charges. A defendant is
presumed innocent of the charges and it will be the government's burden
to prove a defendant's guilt beyond a reasonable doubt at trial.
This case is being
investigated by Special Agents of the Drug Enforcement Administration
and the Internal Revenue Service-Criminal Investigation Division, with
assistance from the Atlanta Police Department, the City of Marietta Police
Department, and the Doraville Police Department. The United States Attorney's
Office and investigators also wish to acknowledge the assistance of the
United States Department of Justice Criminal Division's Asset Forfeiture
and Money Laundering Section, Washington, D.C.; FinCEN, the U.S. Department
of Treasury's Financial Crimes Enforcement Network, and NDIC, the United
States Department of Justice National Drug Intelligence Center, in this
case.
Assistant United
States Attorney Lawrence O. Anderson is prosecuting the case in Atlanta.
For further information
please contact Richard H. Deane, Jr., United States Attorney, or James
T. Martin, Chief, Drug Division, through Patrick Crosby, Public Affairs
Officer, U. S. Attorney's Office, at (404) 581-6016. The Internet address
for the HomePage for the U.S. Attorney's Office for the Northern District
of Georgia is http://www.Iaw.emory.edu/USAO
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