18 December 1998
(AG Reno and Swiss Ambassador Defago sign MOU) (670) Washington -- The United States and Switzerland signed an agreement December 18 to split evenly more than $175 million in illegal drug proceeds, according to a press release issued by U.S. Attorney General Janet Reno. This is the largest amount of forfeited money to be shared between the U.S. and a foreign government, the press release stated. "In March 1994, a federal grand jury in Miami indicted Shiela Arana de Nasser and Julio Cesar Nasser David, charging the couple with conspiring to import and distribute cocaine and marijuana over a 20-year period," according to the release. Subsequently, Arana pleaded guilty, forfeited the money and is now serving a 12-year sentence; and her husband remains a fugitive. Attorney General Reno said "the forfeiture would not have been possible without the unwavering assistance of the Government of Switzerland, including the Federal Office for Police Matters and the investigating magistrates in the Cantons of Vaud and Zurich. She noted that their efforts helped to identify additional bank accounts held by Arana." Following is the text of the press release: (Begin text) FOR IMMEDIATE RELEASE AG RENO DECEMBER 18, 1998 WWW.USDOJ.GOV U.S. AND SWISS AUTHORITIES SIGN AGREEMENT TO SPLIT MORE THAN $175 MILLION IN ILLEGAL DRUG PROCEEDS Washington, D.C. -- Attorney General Janet Reno and Swiss Ambassador Alfred Defago today signed an agreement which will clear the way for both countries to share more than $175 million in forfeited drug proceeds, the largest amount of forfeited money to be shared between the U.S. and a foreign government. The agreement, known as a Memorandum of Understanding (MOU), concerns forfeited funds that were amassed by Shiela Arana de Nasser and her ex-husband, a reputed Columbian drug trafficker, Julio Cesar Nasser David. He remains a fugitive and is believed to be residing in Columbia. The U.S. share, which is estimated to be about $90 million will be deposited into the Justice Department's Assets Forfeiture Fund and will be funneled to law enforcement and crime fighting efforts. "These funds will help prevent the type of drug smuggling that reaped these profits in the first place," said Attorney General Reno. "This is proof that crime does not pay not in the United States and not in Switzerland," said Ambassador Defago. "The message is clear money [that] laundering is not tolerated in Switzerland." In March 1994, a federal grand jury in Miami indicted Shiela Arana de Nasser and Julio Cesar Nasser David, charging the couple with conspiring to import and distribute cocaine and marijuana over a 20-year period. Swiss authorities, who were investigating Arana for money laundering violations, arrested her in Switzerland in 1994. After unsuccessfully appealing her extradition, she was returned to the United States in 1995. In December of that year, Arana, 56, pleaded guilty and agreed to forfeit her share of the tainted wealth. She was later sentenced to a 12-year prison term which she is presently serving. At the request of the U.S., Swiss authorities froze the drug proceeds under a mutual legal assistance treaty (MLAT) that both nations signed. The Swiss government agreed to free the proceeds, which had been deposited in the Union Bank of Switzerland in Zurich and Lausanne, once U.S. authorities completed the forfeiture proceedings in the U.S. In accordance with U.S. international asset sharing laws, the Justice Department authorized the drug proceeds to be split evenly with Swiss government. Reno added that the forfeiture would not have been possible without the unwavering assistance of the Government of Switzerland, including the Federal Office for Police Matters and the investigating magistrates in the Cantons of Vaud and Zurich. She noted that their efforts helped to identify additional bank accounts held by Arana. Reno also praised the efforts of the U.S. Customs Service, the DEA, and prosecutors from the U.S. Attorneys Office in Miami. (End text)