OFAC Goes After Juan Carlos Ramirez Abadia's Asset's

On October 10, The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) added to its list of Specially Designated Narcotics Traffickers seven individuals and 14 companies tied to Colombian narcotics trafficker Juan Carlos Ramirez Abadia.^[1] Among those designated are key financial associates of Ramirez Abadia, including Diego and Tulio Alzate Jimenez, and a Colombian currency exchange and money remittance company, Cambios y Capitales S.A.^[2]

Juan Carlos Ramirez Abadia, who was identified as a Specially Designated Narcotics Trafficker by OFAC in August 2000, was arrested in Brazil on August 7, 2007.^[3]

Diego Uriel Alzate Jimenez, Luis Holmes Alzate Jimenez, and Tulio Hernando Alzate Jimenez are among the primary shareholders of Cambios y Capitales S.A., which is headquartered in Bogota.^[4] One of the brothers, Tulio Hernando Alzate Jimenez, was indicted on federal narcotics trafficking and money laundering charges in the Southern District of Florida in 1994.^[5]

The announcement marks OFAC's third action targeting the assets of Ramirez Abadia since 2006; in August 2006, OFAC designated the Colombian pharmaceutical distribution company Disdrogas Ltda. along with Ramirez Abadia's parents, who were managing the company on his behalf.^[6] In August of 2007 OFAC designated several of Ramirez Abadia's key lieutenants as well as a theme park and a paso fino horse breeding farm located near Cali, Colombia.^[7]

Being a specially designated narcotics trafficker is a designation that is defined in 31 C.F.R. § 598.314, wherein it states that the term means: Significant foreign narcotics traffickers;^[8] and Foreign persons designated by the Secretary of the Treasury, in consultation with the Attorney General, the Director of Central Intelligence, the Director of the Federal Bureau of Investigation, the Administrator of the Drug Enforcement Administration, the Secretary of Defense, and the Secretary of State, because they are found to be:^[9]

1. Materially assisting in, or providing financial or technological support for or to, or providing goods or services in support of, the international narcotics trafficking activities of a specially designated narcotics trafficker;^[10]
2. Owned, controlled, or directed by, or acting for or on behalf of, a specially designated narcotics trafficker; or ^[11]
3. Playing a significant role in international narcotics trafficking.[12]

Federal criminal defense attorney Douglas McNabb has previously discussed the transnational crime of drug trafficking here.

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^[1] US Treasury Dep’t, Press Release, Treasury Targets Financial Empire of Colombian Trafficker, October 10, 2007, available at http://www.ustreas.gov/press/releases/hp600.htm (last visited October 11, 2007).
^[2] Id.
^[3] Id. He was previously indicted on federal drug trafficking charges in Colorado in 1994 and the Eastern District of New York in 1995 and 2004. In 2004, Colombia's North Valle drug cartel was indicted in the District of Columbia under the federal Racketeer Influenced and Corrupt Organizations Act.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] 31 C.F.R. § 598.314(a).
^[9] Id., at §598.314(b).
^[10] Id., at §598.314(b)(1).
^[11] Id., at §598.314(b)(2).
^[12] Id., at §598.314(b)(3); Note to §598.314: Please refer to the appendices at the end of this chapter V for listings of persons determined to fall within this definition who have been designated pursuant to this part. Section 501.807 of this chapter V sets forth the procedures to be followed by persons seeking administrative reconsideration of their designation or who wish to assert that the circumstances resulting in designation no longer apply.

Chiquita Fruit Co. Must Pay $25 Million Fine for Giving Money to Drug Cartels

The Justice Department said Tuesday it will not prosecute ten executives from Chiquita Brands International who were allegedly involved in the company's now-defunct payoff of Colombian terrorists protecting its most profitable banana-growing operation.^[1]

The government's long-awaited decision was part of a sentencing memo urging U.S. District Judge Royce C. Lamberth to fine Chiquita $25 million and have the company serve five years probation for its illegal deals.^[2] The sentencing hearing in front of Lamberth is set for Sept. 17 and if it is accepted, the fine would mark the largest criminal penalty ever imposed under U.S. global terrorism sanctions laws.^[3]

Prosecutors dropped potential charges against the executives, "based solely on the merits and the evidence [against them]…..The government gave serious consideration to bringing additional charges in this matter, but in the exercise of its prosecutorial discretion, has decided not to do so after an extensive investigation and after considering critical evidence and information that Chiquita provided," said Justice Department spokesman Dean Boyd.^[4]

Fernando Aguirre, Chiquita's chairman and chief executive officer, asserted in a statement from its Cincinnati headquarters that the company was pleased with the decision, saying "We believe this is the right decision and one that reflects the good faith efforts of the company — and its officers, directors and employees — to address a very difficult situation involving the lives and safety of our employees.”^[5]

Chiquita voluntarily alerted the Justice Department in April 2003 of the deals, which by that time had been ongoing for 15 years.[6] The banana company admitted to paying about $1.7 million between 1997 and 2004 to the United Self-Defense Forces of Colombia, known as AUC for its Spanish initials.^[7]

The AUC has been responsible for some of the worst massacres in Colombia's civil conflict and for a sizable percentage of the country's cocaine exports.^[8] The U.S. government designated the AUC a terrorist group in September 2001.^[9] However AUC are not the onlygroup to receive banana money; Chiquita made additional payments to the National Liberation Army, or ELN, and the leftist Revolutionary Armed Forces of Colombia, or FARC, as control of the company's banana-growing area shifted.^[10]

Court documents list 10 unidentified company employees initially suspected of participating in the illegal deals and helped conceal them on company books.^[11] Former Chiquita general counsel Bob Olson has been identified as one of the 10; his federal criminal defense lawyer, Robert Litt, said Olson helped in Chiquita's decision to report the deals to the Justice Department as well.^[12] "No reasonable person could consider this criminal conduct….[Chiquita] was extorted by paramilitary terrorists who threatened the lives of its employees." Litt said Tuesday.^[13]

Federal criminal defense attorney Douglas McNabb has previously written about the problem of U.S./Colombian narco-terror in his transnational crimes blog, these posts can be found here

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^[1] Lara Jakes Jordan, No Terror Charges for Chiquita Execs, Associated Press Newswire, September 12, 2007, available at available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id.
^[9] Id.
^[10] Id.
^[11] Id.
^[12] Id.
^[13] Id.

U.S. Authorities Want Jimenez Extradicted

Colombia's foreign minister on Monday said that he U.S. is requesting the extradition of an alleged paramilitary warlord who was kicked out of Colombia's peace process last week on suspicion of running a drug smuggling ring from jail.^[1]

Fernando Araujo asserted that U.S. authorities want to extradite Carlos Jimenez on federal charges of conspiracy to import more than 11 pounds of cocaine to the United States.^[2] Jimenez, better known by the alias Macaco, would be the first militia leader extradited for allegedly breaking his pledge to stay out of criminal activity and provide confessions to prosecutors investigating atrocities committed by the paramilitaries.^[3]

Before disarming in December 2006, Jimenez was blamed for mass murder and smuggling untold tons of cocaine into the United States as head of one of Colombia's largest right-wing militias, the Central Bolivar Bloc.^[4] On Friday, Jimenez became the first jailed militia boss to lose special benefits conceded under a 2003 peace accord that led paramilitary leaders to demobilize 31,000 of their men in exchange for reduced prison terms and protection from extradition.^[5]

Several leaders of the United Self-defense Forces of Colombia, a paramilitary umbrella group, have been indicted by U.S. courts on drug-trafficking charges, and the U.S. State Department considers the militias a foreign terrorist organization.^[6] Since taking office in 2002, President Alvaro Uribe's government has extradited more than 500 suspected drug traffickers to the United States.^[7]

Federal criminal defense attorney Douglas McNabb has also previously discussed the transnational crime of drug trafficking in his blog, here, and the specific occurrence of narco – terror, here.

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^[1] Joshua Goodman, U.S. wants Colombian warlord for drug trafficking, Associated Press Newswire, August 27, 2007, available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.

Colombian Stowaways Found on Ship Headed to Houston

U.S. Drug Enforcement Agency (DEA) agents found six stowaways and 182 pounds (83 kilograms) of cocaine in the rudder compartment of a ship heading from Colombia to Houston, Texas.^[1]

DEA Agents also found and arrested the stowaways shortly after the vessel unloaded cargo at an interim stop in Norco, LA; "They stayed down there, they ate from plastic bags, they lived in water up to their waist," DEA spokesman Michael Sanders said Monday.^[2]

Investigators arrested Joe Pabon Vallecilla, Javier Renteria, and Fortunato Albornoz, all of Colombia; and John Martinez, Carlos Enrique Santiago-Caparros, and Javier Colon, all of Puerto Rico.^[3] Each of the men were arrested and charged with Thursday with conspiracy to distribute 83 kilograms of cocaine. Conviction would mean at least 10 years in prison.^[4]

Conspiracy to Traffic in Narcotics
Under 21 U.S.C. § 846, any person who conspires to commit any offense in title 21 will be punished as if he had committed the offense. There is no overt act requirement in this statute. Narcotics trafficking is a crime under 21 U.S.C. § 841, which states that it is a crime for a person to intentionally distribute—or possess with intent to distribute—a controlled substance.^[5]The punishment for violating this statute with the amount of marijuana at issue in this case is imprisonment for at least 10 years, a fine of up to $4,000,000, or both.^[6]

We have previously discussed the Columbian drug trade, here.

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^[1] AP Staff, U.S. Drug Agents Find 6 Stowaways, Cocaine in Ship From Colombia, Associated Press Newswire, June 19, 2007, available at LEXIS, News Library, Wire News Services
^[2] Id.
^[3] Id.
^[4] Id.
^[5] 21 U.S.C. § 841(a)(1) (2007).
^[6] Id. § 841(b)(1)(vii).

Arms Dealer Arrested in Spain: Al-Kassar

Monzer al-Kassar, a Syrian arms dealer, has been arrested in Spain on charges he plotted to supply millions of dollars worth of weapons to Colombian rebels.^[1] Al-Kassar was arrested after undercover agents with the Drug Enforcement Administration(DEA) came to him looking to buy surface-to-air missile systems, rocket-propelled grenade launchers, thousands of machine guns and millions of rounds of ammunition for the Revolutionary Armed Forces of Colombia (FARC) and allegedly al-Kassar agreed to make the sale, however no weapons ever changed hands.^[2]

The indictment alleged that al-Kassar also provided weapons and military equipment to violent factions in Nicaragua, Brazil, Cyprus, Bosnia, Croatia, Somalia, Iran and Iraq; as well as to the revolutionary group FARC. FARC is one of the world's largest suppliers of cocaine; we have previously written about FARC in this blog, these posts can be accessed here.^[3]

Al-Kassar went before a Spanish judge in Madrid on Friday, and while there were no immediate details on extradition proceedings, Spain and the United States have an extradition treaty that applies in such cases.^[4] The U.S. indictment from a New York federal grand jury charges al-Kassar with conspiracy to provide aid and equipment to a terrorist organization, conspiracy to kill U.S. citizens and officials, conspiracy to acquire and use anti-aircraft missiles and money laundering.^[5]

Contributing or supplying services to designated terrorist groups (or conspiring to contribute or supply services to these entities), is a violation of regulations issued under the International Economic Emergency Powers Act,^[6] we have previously discussed IEEPA in this blog, here.

Missiles
The threat of surface-to-air missile(SAMs) being used against commercial aviation led Congress to pass the Commercial Aviation MANPADS Defense Act of 2004 [hereinafter MANPADS Act].^[7] Under the MANPADS Act, the United States sentencing guidelines were amended to enhance any sentence by 15 levels if the offense involved "a destructive device that is a portable rocket, a missile, or a device for use in launching a portable rocket or a missile."^[8] There are also sentencing enhancements for the number of SAMs that are involved.^[9] This act could possibly be applied in this al-Kassar's case if it is determined that al-Kassar did in fact, try to sell anti-aircraft missiles.


We have previously discussed money laundering here.

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^[1] Tom Hays, Syrian Arms Dealer Indicted in NYC, Associated Press Newswire,June 8, 2007, available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] 50 U.S.C. §§ 1701-07 (2007).
^[7] See P.L. 108-458, Title IV, Subtitle B, § 4026, 118 Stat. 3724. (MANPADS stands for man-portable air defense system, and it refers to any SAM system designed to be man-portable and carried and fired by a single individual. MANPADS Act, § 4026(e)(2)(A).)
^[8] See U.S. Sentencing Guidelines Manual § 2K2.1(b)(3)(A).
^[9] See id. at § 2K2.1(b)(1)(E).

Bush's Request for Colombian Aid to Face More Scrutiny from New Congress

During President George W. Bush’s visit to Columbia he renewed U.S. support to Colombia, the nation who receives more American aid than any country outside the Middle East and Afghanistan.^[1]

Bush arrived on Sunday, March 11, to meet with President Alvaro Uribe in a show of confidence for Uribe and Colombia’s battle against narco-terrorists.^[2] Bush indicated that he will ask Congress to maintain current aid levels to Colombia at roughly $700 million annually to support the Latin American country’s fight against terrorism and drug trafficking. ^[3]

However the Democrats who are now in control of the U.S. Congress have started asking tough questions about the Colombian aid money given the recent news pouring out of Colombia.^[4] In 2006, U.S. government officials were forced to announce that despite so much investment in drug eradication, its satellites had detected more coca in Colombia than they had in 2000, when the program started.^[5] On top of that, Colombia's U.S.-aided army was battered by a series of damaging revelations; young recruits were being violently tortured; an army patrol working at the service of drug lords murdered an entire elite police anti-drug unit; civilians were killed in dozens of incidents, their bodies dressed in camouflage and presented as guerrillas killed in combat; multiple car-bombs were planted in Bogotá by soldiers and blamed on guerrillas, the list goes on and on.^[6] Then, in late 2006, reports revealed the outrageous degree to which corruption and narco-terrorist insiders had infiltrated Colombia's government, at all levels. Those currently in custody or at large include 10 members of Colombia's congress and other officials close to the president, including the head of the presidential intelligence service.^[7]

The new Congress has two Colombia initiatives before it. The first is a free-trade agreement, reached by both governments in February 2006,^[8] the second is a consideration on what U.S. aid to Colombia will look like in 2008 and beyond. The Colombian government is proposing "Plan Colombia 2," a new framework to frame foreign aid until 2013, the proposal calls for more social investment and a somewhat less militarized approach, however despite that plan President Bush has requested the same $750 million aid package as in previous years.^[9] Bush may run into more resistance this time, the democrats want to see a less militaristic approach and with the current plan’s track record, it looks as though there will be a shift in priorities.^[10]

We have previously discussed Narco-Terrorism at length, here.

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^[1] Violence plagues Colombia on Bush visit, AP (via Edmonton Sun), March 11, 2007.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Adam Isacson, Plan Obsolescence In Colombia, TomPaine.com, March 13, 2007.
^[6] Id.
^[7] Id.
^[8] “In July 2005, a similar trade pact with Central America passed the Republican-run House of Representatives by the narrow margin of 217-215, with only 15 Democrats voting in favor. This year, the House has over 30 more Democrats than it did before, and many are concerned about Colmbia's human-rights violations, including the frequent killing with impunity of Colombian trade unionists.” Id.
^[9] 80% of which is military aid. Id.
^[10] Id.

Rojas Drug Trial: Update

A Colombian peasant who became the chief financial officer of a powerful squadron of the leftist FARC guerrillas was convicted Tuesday by a federal jury on charges of conspiring to send several tons of cocaine to the United States.^[1]

Nayibe Rojas is the first high-ranking member of the “narco-terrorism” group Revolutionary Armed Forces of Colombia, or FARC, convicted of drug running by a U.S. federal court.^[2] The jury heard hours of taped phone conversations, testimonies by U.S. and Colombian law enforcement agents, and alleged former drug traffickers; it issued the guilty verdict after deliberating for four days.^[3]

The Bush administration estimates that 80 to 90 percent of the cocaine on U.S. streets is Colombian. FARC controls 70 percent of the U.S. bound cocaine market; it is used to finance its insurgency.^[4] ''This case sends a message to major overseas drug trafficking organizations: We will investigate, prosecute and punish all those who manufacture and distribute illegal drugs for export to the United States,'' Deputy Attorney General Paul said in a statement.^[5] “There is no international safe haven for illegal narcotics traffickers.”^[6]
In that assertion he is correct, prescriptive jurisdiction of the U.S. is so extremely broad, that there literally may not be a safe haven for criminals if the U.S. decides to go after them. The district courts of the United States have original jurisdiction, exclusive of the courts of the States, of all offenses against the laws of the United States.^[7] Jurisdiction will be found only when the criminal act occurs within United States territory, although more frequently there are exceptions found to this rule.^[8]. However, the criminal jurisdiction of the United States may in some circumstances extend to its citizens everywhere.^[9] Generally, if the United States wants to punish its own citizens for any reason, Congress must clearly designate the extraterritorial nature of the act it is punishing.^[10]

Thus, the language that Congress uses to define the jurisdiction of the crime in the statute will determine the outcome. Sometimes it will say "in or affecting interstate or foreign commerce,"^[11] or "within the special maritime and territorial jurisdiction of the United States,”^[12] or sometimes it simply says both.^[13] In Rojas’ case she fell into the U.S. jurisdiction by trafficking drugs into the U.S. we have previously discussed this case here.

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^[1] Pablo Bachelet, Jury Convicts FARC Leader, Miami Herald, February 21, 2007.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] 18 U.S.C. § 3231 (2005)
^[8] Id., see also United States v. Luton, 486 F.2d 1021, 1022 (5th Cir. 1973)
^[9] Id, see also United States v. Smiley, 27 F. Cas. 1132, 1134 (C.C.N.D. Cal. 1864) (No. 16,317).
^[10] Id.
^[11] See, 18 U.S.C. §§ 922, 1962, 2251 (2006).
[12] See 18 U.S.C. §§ 81, 114 (2006)
[13] 18 U.S.C. § 1591.

U.S. - Colombia Team Up to Fight "Narco-Terror"

The National Guard is helping shut down illicit drug trafficking routes in South America through a unique linguistic program that has prevented the export of billions of dollars worth of cocaine.^[1]"

Since 2001, the Host Nation Rider Program has supported the Air Bridge Denial (ABD) Program which has basically closed down air trafficking of illicit narcotics," said LTC Roberto Vazquez, program manager, National Guard Host Nation Rider (HNR) Program.^[2]"We are forcing drug traffickers to find other means to export their drugs, costing them more time and resources."^[3]

The small team of airmen, based in Miami, act as liaisons and translators between the Colombian and United States Air Forces.^[4] By policy, a member of the host nation must be on board all aircraft that fly certain types of counter-drug missions. The Colombians and USAF share intelligence, making this a joint mission to end narco-terrorism.^[5]"Every year we see less and less aircraft transporting drugs," said LTC Vazquez.^[6] "We are a part of larger counter-narcotics effort that last year alone prevented $4 billion worth of cocaine from being distributed and abused around the world."^[7]

Colombia is known around the world for producing cocaine, and by preventing the use of aircraft for drug exportation, this program has made the business much less profitable.^[8] Closing down drug trafficking routes will also prevent weapons and human trafficking as well as any other transnational threats from leaving the country.^[9]

We have previously discussed “narco – terrorism” here.

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^[1] SSG Cheryl Hackley, Guard Members, Colombians Fight Together Against Drug Trafficking, GX Online, February 15, 2007.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id.
^[9] Id.

Colombian Drug Trafficker in Federal Court: Rojas

Nayibe Rojas is in a federal court in Washington, arguing to a jury that she's not a cocaine trafficker, but merely a peasant with a desire to bring justice to her country.^[1] However the contrary evidence points to a woman living in the jungles of southern Colombia, wearing combat fatigues and directing the finances of a powerful unit of the leftist FARC guerrillas.^[2]

On Thursday February 8, the jury began sifting through the evidence, which included the testimonies of five internal drug operatives, wiretaps and videos, to determine if Rojas is guilty of conspiracy to export drugs to the United States.^[3]

Prosecutors say Rojas served from 2000 to 2003 as finance chief of the 14th Front of the FARC (Revolutionary Armed Forces of Colombia), Latin America's oldest and largest leftist guerrilla force.^[4] While the United States considers the FARC a terrorist organization, the FARC says it's fighting for the rights of the rural poor against the interests of the wealthy ruling elites. The Front operated in the coca-rich Caguan River area of southern province of Caqueta.^[5]

When she was captured on Feb. 10, 2004, soldiers found weapons and 6.5 kilograms of cocaine, and in March 2005, she was extradited to the United States.^[6] A failure to convict Rojas would be an awkward defeat for the U.S. government, which has dubbed the FARC a "narco-terrorist guerrilla group" that controls 70 percent of the Colombian cocaine trade and uses the proceeds to finance its insurgency.^[7]

Rojas faces jail terms of up to 30 years for drug trafficking, which we have previously discussed here.

Drug Importation is defined as a crime if a person has imported into the United States any controlled substance in schedule I or II, or any narcotic drug in schedules III, IV, or V.^[8] Definitions on the drug schedules can be found here.

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^[1] Pablo Bachelet, Colombian Guerrilla Awaits a Decision in Drug-Trafficking Trial, McClatchy Newspapers ( via Kansas City Star), February 09, 2007.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] 21 U.S.C. § 952(a) (2005).