DRUG CARTELS STUNG; MILLIONS SEIZED IN `DIRTY' MONEY.Byline: Peter Hartlaub Daily News Staff Writer Federal prosecutors announced the end Monday of the largest drug-profits laundering investigation ever, an undercover probe that started in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , spanned six nations and led to 34 arrests - with more expected. Operation Casablanca became public when indictments of 97 people were unsealed in U.S. District Court in Los Angeles. The defendants, including 26 officials of Mexican banks, were accused of laundering money for Colombian and Mexican drug cartels. ``Today we have hurt the drug cartels where it hurts the most - in their pocketbooks,'' said U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Secretary Robert Rubin Robert Edward Rubin (born August 29, 1938) is an American banker who served as the 70th United States Secretary of the Treasury during both the first and second Clinton Administrations during a time of peak performance for the U.S. economy. in a written statement. The investigation started in 1995 and revolved around a warehouse in Santa Fe Springs Santa Fe Springs, city (1990 pop. 15,520), Los Angeles co., SW Calif., inc. 1957. The city lies in an oil and natural gas region and has diversified manufacturing. , where undercover agents said they received drug money for deposit in bank accounts they had opened. Investigators said more than $65 million, which they believe was drug money from the Mexico-based Juarez and Colombia-based Cali cartels, was processed by the banks. ``Some of that money made it back to the drug deals,'' said U.S. Attorney spokesman Thom Mrozek. Federal officials were not sure how much of that money was seized directly, but said $35 million in cash, more than two tons of cocaine and four tons of marijuana were confiscated con·fis·cate tr.v. con·fis·cat·ed, con·fis·cat·ing, con·fis·cates 1. To seize (private property) for the public treasury. 2. To seize by or as if by authority. See Synonyms at appropriate. adj. in spinoff investigations related to the money-laundering probe. During a Washington, D.C., news conference Monday, Attorney General Janet Reno Janet Reno (born July 21, 1938) was the first and to date only female Attorney General of the United States (1993–2001). She was nominated by President Bill Clinton on February 11, 1993, and confirmed on March 11. and Rubin also announced the arrests of more than 130 people resulting from the money-laundering and spinoff investigations. Officials said they expect to arrest a total of more than 180 individuals and confiscate To expropriate private property for public use without compensating the owner under the authority of the Police Power of the government. To seize property. When property is confiscated it is transferred from private to public use, usually for reasons such as an additional $122 million now sitting in U.S. and foreign bank accounts. In Los Angeles, U.S. Customs Service officials said 34 of the defendants already had been arrested when the indictments were unsealed Monday afternoon, including about 20 arrested in Las Vegas and the San Diego area. Three were arrested in Italy and Aruba. While none of the defendants was arrested in Los Angeles, a U.S. Customs Service official said several ``John Does'' named in the indictments probably live in the area, including couriers who met undercover agents at the Santa Fe Springs warehouse. Investigators said they believe bankers from as many as 12 of Mexico's 19 largest banking institutions were involved in money-laundering activities. Three Mexican banks were indicted INDICTED, practice. When a man is accused by a bill of indictment preferred by a grand jury, he is said to be indicted. : Bancomer, S.A., which is based in Mexico City but has an office in Los Angeles; Confia, S.A.; and Banca Serfin, S.A. Rubin said the case is the first in which Mexican banks and bank officials have been directly linked to laundering Cali and Juarez drug profits. Treasury Department officials estimated that nearly 100 U.S. bank accounts were involved in the scheme, but said no evidence has been found to indicate that officials from those banks knew where the money came from. The defendants face a variety of charges, including conspiracy to aid and abet To assist another in the commission of a crime by words or conduct. The person who aids and abets participates in the commission of a crime by performing some Overt Act or by giving advice or encouragement. the distribution of controlled substances and the laundering of money. Federal officials said most of the defendants face up to life in prison if convicted. During a news briefing in Los Angeles, prosecutors outlined a complicated path that the accused money launderers used over the 2-1/2 years. Operation Casablanca started after Customs Service agents learned drug money was being laundered in banks along the Mexican border, mostly in Tijuana. According to the indictments, a drug cartel middleman mid·dle·man n. 1. A trader who buys from producers and sells to retailers or consumers. 2. An intermediary; a go-between. solicited help from the bankers, asking them to launder Launder To move illegally acquired cash through financial systems so that it appears to be legally acquired. money that was ``represented to be the proceeds of the sale of illegal narcotics narcotics n. 1) techinically, drugs which dull the senses. 2) a popular generic term for drugs which cannot be legally possessed, sold, or transported except for medicinal uses for which a physician or dentist's prescription is required. .'' A cooperating witness, working with the U.S. Customs Service, met with the bankers and claimed to be the owner of a cartel front, based in Santa Fe Springs, to help launder drug money. Federal officials contend the money was ``cleaned'' with the help of the accused bankers, but Customs Service investigators were able to track it into accounts set up by undercover agents. As part of the fund transfers, large amounts of drug cash were delivered to the warehouse. The Associated Press contributed to this story. CAPTION(S): Photo PHOTO Treasury Secretary Robert Rubin, with Attorney General Janet Reno at his side in Washington, D.C., describes a huge drug money-laundering investigation that began in Los Angeles. Ron Edmonds/Associated Press |
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