Pubdate: Mon, 1 Feb 1999 Source: Associated Press Copyright: 1999 Associated Press
FEDS PAY DRUG CASE WITNESS $2 MILLI0N
Worked Undercover For Two Years
LOS ANGELES (AP) -- The key undercover witness in the nation's biggest drug money laundering case was paid more than $2 million to help prosecutors, according to testimony.
The informant, identified in court papers only as CW-1, was involved in Operation Casablanca. About 40 Mexican and Venezuelan businessmen, bankers and alleged drug cartel members were arrested in May following the two-year U.S. Customs undercover operation that spanned several countries.
During a pretrial hearing Friday before U.S. District Judge Lourdes Baird, defense attorneys argued that the payments amounted to government misconduct. The payments provided "perverse incentive for the informant to manufacture crime," Michael Pancer, representing defendant Katy Kissel Belfer, argued in a brief filed with the court.
Payment defended as reasonable
Federal prosecutors said the payments were reasonable given the size of the investigation and the risks taken by the informant.
"He worked full time -- he had to be available 24 hours a day -- for the entire length of the investigation," Joseph A. Brandolino said.
"For the rest of his life, he has to look over his shoulder," Julie Shemitz said.
40 arrests; 70 more on the run
In addition to the 40 arrests, 70 people are fugitives in the case, which alleges tens of millions of dollars in illegal drug profits for the Cali drug cartel of Colombia and Mexico's Juarez cartel were shipped through phony transactions to Mexican-owned banks to conceal their origin.
The indicted banks, including prominent Mexican financial institutions Bancomer, Banca Serfin and Confia, have denied any wrongdoing.
The first of four trials in the case is scheduled to begin March 29. Four Mexican nationals pleaded guilty to charges last month.
According to court documents, CW-1, believed to be a naturalized U.S. citizen born in Colombia, helped undercover customs agents pose as money launderers.