DATE=6/11/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-250537
TITLE=MEXICAN BANKERS/DRUG MONEY (L-ONLY)
BYLINE=MIKE O'SULLIVAN
DATELINE=LOS ANGELES
CONTENT=
VOICED AT: 

INTRO:  A U-S JURY  IN LOS ANGELES (LATE THURSDAY) HAS CONVICTED 
THREE MEXICAN BANKERS OF CONCEALING MILLIONS OF DOLLARS IN 
PROFITS FROM LATIN AMERICAN DRUG CARTELS.  THE JURY ALSO 
ACQUITTED THREE OTHER MEXICAN NATIONALS OF THE MONEY-LAUNDERING 
CHARGES.  V-O-A'S MIKE O'SULLIVAN REPORTS THE CASE FOLLOWS A 
THREE-YEAR STING CALLED "OPERATION CASABLANCA," AND HAS STRAINED 
RELATIONS BETWEEN THE UNITED STATES AND MEXICO.

TEXT:   THE THREE CONVICTED IN THE CASE WERE JOSE REYES ORTEGA 
GONZALES, A BANK MANAGER FROM TEPATITLAN, MEXICO -- MANUEL 
BARRANZA LEON, A BANK MANAGER IN TIJUANA -- AND A TIJUANA LAWYER 
WHO REPRESENTED SEVERAL BANKS, ALFONSO LABRADA GURROLA.  THE 
THREE WERE FOUND GUILTY OF CONSIPIRACY AND MONEY LAUNDERING.

THE JURY FOUND THREE OTHERS, INCLUDING TWO MEXICO CITY STOCK 
BROKERS, NOT GUILTY.

AUTHORITIES HAD ACCUSED ALL SIX OF ACCEPTING MILLIONS OF DOLLARS 
IN FUNDS FROM THE CALI DRUG CARTEL OF COLOMBIA AND MEXICO'S 
JUAREZ CARTEL.  THEY SAID THE DEFENDANTS THEN REISSUED DRAFTS ON 
THE U-S ACCOUNTS OF SEVERAL MEXICAN BANKS TO DISGUISE THE SOURCE 
OF THE FUNDS.  U-S OFFICIALS SAY THE MEXICANS EARNED COMMISSIONS 
OF ONE TO TWO PERCENT ON EACH TRANSACTION.

IN MAY OF LAST YEAR, U-S AGENTS ARRESTED 167 PEOPLE.  
ONE-HUNDRED-TEN OF THEM WERE FINALLY INDICTED.  

OFFICIALS IN MEXICO WERE OUTRAGED WHEN THEY LEARNED THAT PART OF 
A THREE-YEAR OPERATION WHICH LED TO THE INDICTMENTS TOOK PLACE IN
MEXICO, WITHOUT NOTIFICATION OF THE MEXICAN GOVERNMENT.

U-S OFFICIALS WERE ALSO CRITICIZED FOR PAYING ONE INFORMANT TWO 
MILLION DOLLARS.  THE INFORMANT MAY RECEIVE SEVERAL MILLION MORE 
FOR HIS COOPERATION.

THE CASE WAS BASED ON MORE THAN 100 HOURS OF SECRETLY TAPED 
CONVERSATIONS BETWEEN UNDERCOVER AGENTS, WHO POSED AS DRUG 
TRAFFICKERS, AND THE DEFENDANTS.  A LAWYER FOR ONE DEFENDANT WHO 
WAS ACQUITTED IN THE CASE, MEXICO CITY STOCKBROKER KATY KISSEL 
BELFER, ARGUED HIS CLIENT AGREED TO LAUNDER THE FUNDS BECAUSE SHE
THOUGHT SHE MAY BE KILLED IF SHE REFUSED.  ANOTHER LAWYER SAID 
MUCH OF THE VIDEOTAPED EVIDENCE WAS INCONCLUSIVE.

THIS WAS THE FIRST OF FOUR TRIALS TO RESULT FROM OPERATION 
CASABLANCA.  ELEVEN OTHER DEFENDANTS CAUGHT IN THE STING 
OPERATION SUBMITTED GUILTY PLEAS BEFORE GOING TO TRIAL. 

                        /// REST OPT /// 

THOM MROZEK (MUH'ROH-ZEK) OF THE U-S ATTORNEY'S OFFICE SAYS A 
NUMBER OF OTHERS HAVE NOT BEEN APPREHENDED.

                                 /// MORZEK ACT ///

            THERE ARE APPROXIMATELY TWENTY FUGITIVES IN THIS CASE
            WHO ARE BELIEVED TO BE IN MEIXCO.  ABOUT FIVE OF 
            THOSE ARE IN CUSTODY IN MEXICO AND MEXICO HAS PLEDGED
            TO PROSECUTE THOSE PEOPLE UNDER MEXICAN LAW.

                                    /// END ACT ///

MEXICO, HOWEVER, WILL NOT EXTRADITE THE FIVE TO THE UNITED 
STATES.

OTHER SUSPECTS, INCLUDING SEVERAL BANKERS FROM VENEZUELA, WILL 
FACE TRIAL LATER THIS YEAR.

TWO OF MEXICO'S LARGEST BANKS (GRUPO FINANCIERO BANCOMER AND 
GRUPO FINANCIERO SERFIN) WILL FORFEIT FUNDS SEIZED BY OFFICIALS 
IN U-S BANKS, AND HAVE AGREED TO PAY CRIMINAL FINES.  A THIRD 
BANK (BANCA CONFIA) WILL FORFEIT TWELVE MILLION DOLLARS IN U-S 
HOLDINGS UNDER A SETTLEMENT AGREEMENT.  (SIGNED)


NEB/PT

11-Jun-99 3:46 PM EDT (1946 UTC)
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Source: Voice of America
.