Cali Cartel
Encyclopedia
The Cali Cartel was a drug cartel
based in southern Colombia
, around the city of Cali
and the Valle del Cauca Department
. The Cali Cartel was founded by the Rodríguez Orejuela brothers, Gilberto
and Miguel
, as well as associate José Santacruz Londoño. Later Cali cartel principals included Hélmer Herrera
, Jairo Ivan Urdinola Grajales, Julio Fabio Urdinola Grajales, Henry Loaiza Ceballos
, Victor Patiño Fomeque, Phanor Arizabaleta Arzayus, Raul Grajales Lemos, Luis Grajales Posso, Bernardo Saenz, Juan Carlos Ortiz Escobar
, Jose Quervo, Javier Marlin Rojas, and James Andrae.
The Cali Cartel was formed by the Rodriguez brothers and Santacruz, all coming from what is described as a higher social background than most other traffickers of all time. The recognition of this social background was displayed in the group's nickname as "Cali's Gentlemen."
The group originally assembled as a ring of kidnappers
known as Las Chemas, which was led by Luis Fernando Tamayo Garcia. Las Chemas were implicated in numerous kidnappings including that of two Swiss
citizens, a diplomat Herman Buff and a student, Zack Jazz Milis Martin. They reportedly received $700,000 dollars in ransom
, which is believed to have gone on to fund their drug trafficking empire.
The assembled group first involved itself in trafficking marijuana
. Due to the products low profit rate, and larger amount required to traffic to cover resources, the fledgling group decided to shift their focus to the more lucrative drug, cocaine
.
In the early 1970s the cartel sent Helmer "Pacho" Herrera to New York City
to establish a distribution center. This action came during a time when the United States Drug Enforcement Administration
(DEA) was not fully pursuing cocaine, and viewed the drug as less critical than heroin, at one point releasing a report stating of cocaine "it is not physically addictive ... and does not usually result in serious consequences, such as crime, hospital emergency room admissions or both."
The lax attitude of the DEA on cocaine is believed to be what allowed the group to prosper, but also to develop and organize itself into multiple "cells" that appeared to operate independently, yet reported to a "celeno" or manager, who then reported back to Cali. The independent cell structure is what set the Cali Cartel apart from the Medellín Cartel
. The Cali Cartel operated as a tight group of independent criminal organizations, as opposed to the Medellíns' structure of a central leader, Pablo Escobar
.
It was believed each cell would report to a larger group, who would then report to the leaders of the cartel. The groups as cited by former Cali accountant Guillermo Pallomari are:
The Cali Cartel would eventually go on to be known by then DEA chief Thomas Constantine as "The biggest, most powerful crime syndicate we've ever known."
and Bolivia
, as well as for pioneering new trafficking routes through Panama
. The Cartel also diversified into opium
and was reported to have brought in a Japanese chemist to help its refining operation.
According to reports and testimony of Thomas Constantine to the United States Congress
, "Cali would be the dominant group in trafficking South American heroin due to their access to the opium growing areas of Colombia." Debate over the cartels participation in heroin trafficking remains. It is believed the cartels leaders were not involved in heroin trading, however close associates to them were, such as Ivan Urdinola-Grajales. Their relationships it is believed, lead to cooperation with heroin distribution centers.
At the height of the Cali Cartel's reign, they were cited as having control over 90% of the worlds cocaine market and, for being directly responsible for the growth of the cocaine market in Europe
, controlling 90% of the market. By the mid-1990s the trafficking empire of the Cali Cartel was a multi-billion dollar enterprise.
In order to launder
the incoming money of the trafficking operations, the Cali cartel heavily invested its funds into legitimate business ventures as well as front companies to mask the money through. In 1996 it was believed the Cartel was grossing $7 billion in annual revenue from the US alone.
With the influx of cash comes the need to launder the funds. One of the first instances of the Cali Cartel laundering operations came when Gilberto Rodriguez Orejuela was able to secure the position of Chairman of the Board, of Banco de Trabajadores. The bank was believed to be used to launder funds for the Cali cartel, as well as Pablo Escobars' Medellín Cartel. Cartel members were permitted, through their affiliation with Gilberto, to overdraft
accounts and take out loans without repayment.
Capitalizing off of this basis, Gilberto was able to found the First InterAmericas Bank operating out of Panama. In an interview with Time magazine, Gilberto admitted to money being laundered through the bank, however attributed the process to only legal actions. The laundering, which Gilberto states was "in accordance with Panamanian law", is what led to the US authorities pursuing him. Gilberto later started the Grupo Radial Colombiano, a network of over 30 radio stations and a pharmaceutical chain named Drogas la Rebaja, which at its height amassed over 400 stores in 28 cities, employing 4200. The pharmaceutical chains value was estimated at $216 million.
police of facilitating Saint Petersburg mobsters, Colombian drug lords, and transcontinental money laundering. Vladimir Putin
was one of the company's named advisers from 1992 until he became President of Russia in 2000.
The company's co-founder Rudolf Ritter was arrested in Liechtenstein for laundering cocaine cash for the Cali cartel.
Former Ukrainian presidential bodyguard Nikolai Melnichenko bugged the following conversation between Ukrainian President Leonid Kuchma
and his security chief Leonid Derkach about SPAG:
Later in the conversation Derkach states that "they've bought up all these documents throughout Europe and only the rest are in our hands".
or refusing payments of product received. The threat of death also hung over those who made mistakes. It is believed the cartel would often kill junior members who made gross errors.
While government officials were often spared violence, junior members and the city's poor reportedly were not. Take, for instance, the example of the Cali Cartel godfather Henry Loaiza-Ceballos, the so-called "Scorpion." Described as the cartel's "Minister of War," Loiaza was in reality a ruthless killer who once directed his underlings to use their chain saws to carve up 100 people suspected of being union sympathizers. A few days after Tiberio Jesus Hernandez, a local Catholic priest, complained of the atrocities, his decapitated body was found floating in the Cauca River.
, street children
, petty thieves, homosexuals
and the homeless. Along with some of the locals, the Cali Cartel formed parties self named grupos de limpieza social (social cleansing groups) who murdered the "desechables," often leaving them with signs on them stating: "Cali limpia, Cali linda" (clean Cali, beautiful Cali). The bodies of those murdered were often tossed into the Cauca River
, which later became known as the River of Death. The municipality of Marsella
in Risaralda
eventually went broke at the cost of recovering corpses and conducting autopsies
.
In the early 1980s and 1990s, the left-wing paramilitaries had struck at the drug cartels. In 1981, the then-paramilitary group, Movimiento 19 de Abril (19th of April Movement) (M-19), kidnapped Marta Nieves Ochoa, the sister of the Medellín Cartels Ochoa brothers, Jorge
, Fabio
and Juan David. M-19 demanded a ransom of $15 million for the safe release of Marta Nieves, but were rejected. In response to the kidnapping, the Medellín and Cali cartels, as well as associated traffickers, formed the group Muerte a Secuestradores
(Death to Kidnappers) (MAS). Traffickers contributed funds, rewards, equipment and manpower for MAS operations. Leaflets soon after were dropped in a football pitch
in Cali announcing the formation of the group. MAS began to capture and torture M-19 members in retaliation. Within 3 days Marta Nieves was released. The group MAS however would continue to operate, with hundreds of killings attributed to them.
In 1992, the guerrilla faction Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia) (FARC) kidnapped Christina Santa Cruz, the daughter of Cali Cartel leader José Santacruz Londoño. FARC demanded in exchange for the safe return of Christina a ransom of $10 million. In response the Cali Cartel kidnapped 20 or more members of the Colombian Communist Party
, Patriotic Union
, the United Workers Union and the sister of Pablo Catatumbo, a representative of the Simón Bolívar Guerrilla Coordinating Board
. Eventually, after talks, Christina and the sister of Catatumbo were released. It is unknown what happened to the other hostages taken by the cartel.
During the narco-terror war waged by Pablo Escobar
on the Colombian government, it is believed a hired assassin
attempted to kill Herrera while he was attending a sports event. The gunman opened fire using a machine gun on the crowd where Herrera was sitting, killing 19. However, he did not hit Herrera. In response to the attempted assassination, the Cali Cartel responded by kidnapping and killing Gustavo Gaviria, cousin to Pablo Escobar. Herrera is believed to be a founding member of Los Pepes
, a group who operated alongside authorities with the intention of killing or capturing Pablo Escobar.
and Colombian officials. It was discovered in a 1995 raid of Cali Cartel offices, that the cartel had been monitoring all phone calls made in and out of Bogotá
and Cali including the U.S. Embassy in Bogotá and the Ministry of Defense
. The laptop, reportedly acquired through Israel, allowed Londoño to eavesdrop on phone calls being made as well as analyze phone lines for wiretaps. While officials were able to discover the use of the laptop, it is reported they were unable to decrypt many of the files due to sophisticated encryption techniques
. Londoño was also believed to have a person within the phone company itself, which the officials realized when he was able to recognize a phone tap, one that had been placed directly at the phone company, instead of at his residence. Londoño's lawyer soon sent an official notice requesting the legality and requesting the warrant if one was produced.
Included in the list of government officials and officers on the Cali Cartel payroll were a reported 5,000 taxi drivers. The taxi drivers would allow the cartel to know who was arriving in the city and when, as well as where they were staying. By having numerous taxi drivers on the payroll, the cartel was able to monitor the movements of officials and dignitaries. It is reported by Time Magazine, in 1991, DEA and U.S. Customs Service (now ICE) agents were monitoring a shipment being offloaded in Miami, only to find out later that the DEA agents were the target of Cali surveillance at the same time.
, a high ranking Medellín financier, and Gilberto Rodriguez had been childhood friends and would years later co-own the Panamanian First InterAmericas Bank. The institution would later be cited by United States officials as a money laundering operation, allowing both the Cali Cartel and the Medellín Cartel to move large amounts of funds through the bank. Only through diplomatic pressure, on then Panamanian President Manuel Noriega
, could the U.S. put an end to the banks use as a money laundering front. Gilberto Rodriguez would later in a Time Magazine interview admit to laundering money through the bank, however states no Panamanian laws were broken during the process.
, who attempted to move in on the New York City market, previously ceded to the Cali cartel and, the 1986 arrest of Jorge Ochoa at a police roadblock, an arrest the Medellín cartel believed was suspicious and attributed partly to the Cali cartel.
or Perseguidos por Pablo Escobar (People Persecuted by Pablo Escobar). Los Pepes was specifically formed to target the Medellín cartel and bring about the downfall of Pablo Escobar. It is believed Los Pepes provided information to Bloque de Busqueda
(Search Bloc) a police/army unit specifically created to track down Medellín leaders. In exchange for information Los Pepes received assistance from the United States counter-terrorism
unit, Delta Force
, through its links to Search Bloc. By the time of Escobar's capture and eventual death in December 1993, Los Pepes have been responsible for the deaths or executions of over 60 associates or members of the Medellín cartel. The death of Pablo Escobar led to the dismantling of the Medellín Cartel and the rise of the Cali cartel.
While the Cali Cartel operated with a degree of immunity early on, due to its ties to the government, and the Medellín Cartel's narco-terrorism war on the Colombian government, they were still subjected to drug seizures. In 1991 alone, law enforcement agencies seized 67 tons of cocaine, 75% originating from the Cali Cartel. In total, the US Customs Service (USCS) alone had spent 91,855 case hours and 13 years in investigations against the Cali Cartel, seizing 50 tons of cocaine and $15 million in assets.
The involvement of U.S. Customs Service in the Cali Cartels trafficking came in 1991 when a shipment was intercepted with the aid of a drug sniffing dog
. The cocaine was hidden inside concrete posts. The interception of the concrete posts at the Miami seaport lead to seizure of 12,000 kilograms of cocaine and several arrests, as well as the beginning of what the US Customs Service would dub "Operation Cornerstone". A year later in another seizure, an USCS wiretap on Harold Ackerman, whose affiliation was derived from the '91 seizure, enabled the arrest of 7 individuals and 6,000 kilograms of cocaine hidden in a load of broccoli. Accounting ledger
s were seized in related arrests which allowed the identification of another shipment being sent to Panama hidden in tiles, this information was passed to Panamanian authorities and lead to the seizure of 5,100 kilograms.
The following year in 1993, the US Customs Service struck again at the Cali cartel, this time seizing 5,600 kilograms while pursuing Raul Marti, the only member of the defunct Miami cell to remain. It is believed these successive raids forced the cartel to funnel its shipments through Mexico, however that did not stop the US Customs Service. Three maritime ships were intercepted in '93 with a total of 17,000 kilograms. Operation Cornerstone lasted 14 years targeting the Cali cartels drug trafficking operations.
Between June and July 1995, six of the seven heads of the cartel were arrested. Gilberto was arrested in his home, and Henry Loaiza, Victor Patino and Phanor Arizabaleta surrendered to authorities. Jose Santa Cruz Londoño was captured in a restaurant, and a month later Miguel Rodriguez was apprehended during a raid. It's widely believed that the cartel continued to operate and run trafficking operations from within prison.
The Rodríguez brothers were extradited in 2006 to the United States and pleaded guilty in Miami, Florida
to charges of conspiracy to import cocaine into the United States. Upon their confession they agreed to forfeit $2.1 billion in assets. The agreement, however, did not require them to cooperate in other investigations. They were solely responsible for identification of assets stemming from their cocaine trafficking. Colombian officials raided and seized the Drogas la Rebaja pharmacy chain, replacing 50 of its 4,200 workers on grounds they were "serving the interests of the Cali Cartel."
Drug cartel
Drug cartels are criminal organizations developed with the primary purpose of promoting and controlling drug trafficking operations. They range from loosely managed agreements among various drug traffickers to formalized commercial enterprises. The term was applied when the largest trafficking...
based in southern Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
, around the city of Cali
Calì
Calì, also written in English as Cali, is an Italian surname, widespread mainly in the Ionian side of Sicily.For the surname Calì is assumed the origin of the Greek word kalos , or from its Sanskrit root kali, "time."The surname refers to:...
and the Valle del Cauca Department
Valle del Cauca Department
Valle del Cauca is a department of Colombia. It is in the western side of the country, facing the Pacific Ocean, and it is considered one of the most important departments in the Republic of Colombia. Its capital is Santiago de Cali...
. The Cali Cartel was founded by the Rodríguez Orejuela brothers, Gilberto
Gilberto Rodríguez Orejuela
Gilberto José Rodríguez Orejuela is a Colombian druglord, formerly one of the leaders of the Cali Cartel, based in the city of Cali.-Cali Cartel:...
and Miguel
Miguel Rodríguez Orejuela
Miguel Angel Rodríguez Orejuela is a Colombian druglord, formerly one of the leaders of the Cali Cartel, based in the city of Cali. He is the younger brother of Gilberto Rodríguez Orejuela...
, as well as associate José Santacruz Londoño. Later Cali cartel principals included Hélmer Herrera
Hélmer Herrera
Francisco Hélmer Herrera Buitrago also known as "Pacho" and "H7", was a Colombian drug trafficker, fourth in command in the Cali Cartel. Believed to be the son of Benjamin Herrera Zuleta...
, Jairo Ivan Urdinola Grajales, Julio Fabio Urdinola Grajales, Henry Loaiza Ceballos
Henry Loaiza Ceballos
Henry Loaiza-Ceballos aka El Alacran was a Colombian drugdealer part of the Cali Cartel. Loaiza was in charge mainly of the military apparatus of the organization, but was also involved in the shipment of drugs...
, Victor Patiño Fomeque, Phanor Arizabaleta Arzayus, Raul Grajales Lemos, Luis Grajales Posso, Bernardo Saenz, Juan Carlos Ortiz Escobar
Juan Carlos Ortiz Escobar
Juan Carlos Ortiz Escobar aka Cuchilla was a Colombian drug dealer and prominent member of the Cali Cartel. Ortiz-Escobar was a nephew of former Medellin Cartel boss Pablo Escobar....
, Jose Quervo, Javier Marlin Rojas, and James Andrae.
Foundation
The group originally assembled as a ring of kidnappers
Kidnapping
In criminal law, kidnapping is the taking away or transportation of a person against that person's will, usually to hold the person in false imprisonment, a confinement without legal authority...
known as Las Chemas, which was led by Luis Fernando Tamayo Garcia. Las Chemas were implicated in numerous kidnappings including that of two Swiss
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
citizens, a diplomat Herman Buff and a student, Zack Jazz Milis Martin. They reportedly received $700,000 dollars in ransom
Ransom
Ransom is the practice of holding a prisoner or item to extort money or property to secure their release, or it can refer to the sum of money involved.In an early German law, a similar concept was called bad influence...
, which is believed to have gone on to fund their drug trafficking empire.
The assembled group first involved itself in trafficking marijuana
Cannabis (drug)
Cannabis, also known as marijuana among many other names, refers to any number of preparations of the Cannabis plant intended for use as a psychoactive drug or for medicinal purposes. The English term marijuana comes from the Mexican Spanish word marihuana...
. Due to the products low profit rate, and larger amount required to traffic to cover resources, the fledgling group decided to shift their focus to the more lucrative drug, cocaine
Cocaine
Cocaine is a crystalline tropane alkaloid that is obtained from the leaves of the coca plant. The name comes from "coca" in addition to the alkaloid suffix -ine, forming cocaine. It is a stimulant of the central nervous system, an appetite suppressant, and a topical anesthetic...
.
In the early 1970s the cartel sent Helmer "Pacho" Herrera to New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
to establish a distribution center. This action came during a time when the United States Drug Enforcement Administration
Drug Enforcement Administration
The Drug Enforcement Administration is a federal law enforcement agency under the United States Department of Justice, tasked with combating drug smuggling and use within the United States...
(DEA) was not fully pursuing cocaine, and viewed the drug as less critical than heroin, at one point releasing a report stating of cocaine "it is not physically addictive ... and does not usually result in serious consequences, such as crime, hospital emergency room admissions or both."
Organization
Medellín Cartel
The Medellín Cartel was an organized network of "drug suppliers and smugglers" originating in the city of Medellín, Colombia. The drug cartel operated in Colombia, Bolivia, Peru, Central America, the United States, as well as Canada and Europe throughout the 1970s and 1980s. It was founded and...
. The Cali Cartel operated as a tight group of independent criminal organizations, as opposed to the Medellíns' structure of a central leader, Pablo Escobar
Pablo Escobar
Pablo Emilio Escobar Gaviria was a Colombian drug lord. He was an elusive cocaine trafficker and rich and successful criminal. He owned numerous luxury residences, automobiles, and even airplanes...
.
It was believed each cell would report to a larger group, who would then report to the leaders of the cartel. The groups as cited by former Cali accountant Guillermo Pallomari are:
- Narco-trafficking: Control over processing labs, shipping methods and routes.
- Military: Control over security, punishment/discipline and bribery in relation to military or police officials.
- Political: Responsible for forging governmental links, Congressional members, federal officials and local authorities.
- Financial: Control over money-laundering, front businesses and legitimate business ventures.
- Legal: Control over representation for captured traffickers, hiring of lobbyists and overseas representation.
The Cali Cartel would eventually go on to be known by then DEA chief Thomas Constantine as "The biggest, most powerful crime syndicate we've ever known."
Trafficking
The Cali Cartel, whose brief roots began in trafficking marijuana, soon shifted to cocaine due to its ease of transporting and greater profit margin. The cartel would be known for innovation in trafficking and production by moving its refining operations out of Colombia to PeruPeru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
and Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
, as well as for pioneering new trafficking routes through Panama
Panama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
. The Cartel also diversified into opium
Opium
Opium is the dried latex obtained from the opium poppy . Opium contains up to 12% morphine, an alkaloid, which is frequently processed chemically to produce heroin for the illegal drug trade. The latex also includes codeine and non-narcotic alkaloids such as papaverine, thebaine and noscapine...
and was reported to have brought in a Japanese chemist to help its refining operation.
According to reports and testimony of Thomas Constantine to the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
, "Cali would be the dominant group in trafficking South American heroin due to their access to the opium growing areas of Colombia." Debate over the cartels participation in heroin trafficking remains. It is believed the cartels leaders were not involved in heroin trading, however close associates to them were, such as Ivan Urdinola-Grajales. Their relationships it is believed, lead to cooperation with heroin distribution centers.
At the height of the Cali Cartel's reign, they were cited as having control over 90% of the worlds cocaine market and, for being directly responsible for the growth of the cocaine market in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, controlling 90% of the market. By the mid-1990s the trafficking empire of the Cali Cartel was a multi-billion dollar enterprise.
Financial
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
the incoming money of the trafficking operations, the Cali cartel heavily invested its funds into legitimate business ventures as well as front companies to mask the money through. In 1996 it was believed the Cartel was grossing $7 billion in annual revenue from the US alone.
With the influx of cash comes the need to launder the funds. One of the first instances of the Cali Cartel laundering operations came when Gilberto Rodriguez Orejuela was able to secure the position of Chairman of the Board, of Banco de Trabajadores. The bank was believed to be used to launder funds for the Cali cartel, as well as Pablo Escobars' Medellín Cartel. Cartel members were permitted, through their affiliation with Gilberto, to overdraft
Overdraft
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn". If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft...
accounts and take out loans without repayment.
Capitalizing off of this basis, Gilberto was able to found the First InterAmericas Bank operating out of Panama. In an interview with Time magazine, Gilberto admitted to money being laundered through the bank, however attributed the process to only legal actions. The laundering, which Gilberto states was "in accordance with Panamanian law", is what led to the US authorities pursuing him. Gilberto later started the Grupo Radial Colombiano, a network of over 30 radio stations and a pharmaceutical chain named Drogas la Rebaja, which at its height amassed over 400 stores in 28 cities, employing 4200. The pharmaceutical chains value was estimated at $216 million.
Russian state connections
Saint Petersburg Immobilien und Beteiligungs AG or SPAG is a real estate company registered in Germany in 1992 and suspected by GermanGermany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
police of facilitating Saint Petersburg mobsters, Colombian drug lords, and transcontinental money laundering. Vladimir Putin
Vladimir Putin
Vladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...
was one of the company's named advisers from 1992 until he became President of Russia in 2000.
The company's co-founder Rudolf Ritter was arrested in Liechtenstein for laundering cocaine cash for the Cali cartel.
Former Ukrainian presidential bodyguard Nikolai Melnichenko bugged the following conversation between Ukrainian President Leonid Kuchma
Leonid Kuchma
Leonid Danylovych Kuchma was the second President of independent Ukraine from 19 July 1994, to 23 January 2005. Kuchma took office after winning the 1994 presidential election against his rival, incumbent Leonid Kravchuk...
and his security chief Leonid Derkach about SPAG:
- Leonid Derkach: Leonid Danilovich. We've got some interesting material here from the Germans. One of them has been arrested.
- Leonid Kuchma (reading aloud): Ritter, Rudolf Ritter.
- Leonid Derkach: Yes, and about that affair, the drug smuggling. Here are the documents. They gave them all out. Here's Vova Putin, too.
- Leonid Kuchma: There's something about Putin there?
- Leonid Derkach: The Russians have already been buying everything up. Here are all the documents. We're the only ones that still have them now. I think that [FSB chief] Nikolai Patrushev is coming from the 15th to the 17th. This will give him something to work with. This is what we'll keep. They want to shove the whole affair under the carpet.
Later in the conversation Derkach states that "they've bought up all these documents throughout Europe and only the rest are in our hands".
Discipline
Political violence was largely discounted by the Cali Cartel, as the threat of violence often sufficed. The organization of the cartel was structured so that only people who had family in Colombia would handle operations that involved both Cali and U.S. sites, keeping the family within reach of the cartel. Family members became the cartel's insurance against members going to the officialsInformant
An informant is a person who provides privileged information about a person or organization to an agency. The term is usually used within the law enforcement world, where they are officially known as confidential or criminal informants , and can often refer pejoratively to the supply of information...
or refusing payments of product received. The threat of death also hung over those who made mistakes. It is believed the cartel would often kill junior members who made gross errors.
While government officials were often spared violence, junior members and the city's poor reportedly were not. Take, for instance, the example of the Cali Cartel godfather Henry Loaiza-Ceballos, the so-called "Scorpion." Described as the cartel's "Minister of War," Loiaza was in reality a ruthless killer who once directed his underlings to use their chain saws to carve up 100 people suspected of being union sympathizers. A few days after Tiberio Jesus Hernandez, a local Catholic priest, complained of the atrocities, his decapitated body was found floating in the Cauca River.
Social cleansing
In his book End of Millennium, Manuel Castells states the Cali Cartel had participated in social cleansing of hundreds to thousands of "desechables" (discardables). The desechables included prostitutesProstitution
Prostitution is the act or practice of providing sexual services to another person in return for payment. The person who receives payment for sexual services is called a prostitute and the person who receives such services is known by a multitude of terms, including a "john". Prostitution is one of...
, street children
Street children
A street child is a child who lives on the streets of a city, deprived of family care and protection. Most children on the streets are between the ages of about 5 and 17 years old.Street children live in junk boxes, parks or on the street itself...
, petty thieves, homosexuals
Homosexuality
Homosexuality is romantic or sexual attraction or behavior between members of the same sex or gender. As a sexual orientation, homosexuality refers to "an enduring pattern of or disposition to experience sexual, affectional, or romantic attractions" primarily or exclusively to people of the same...
and the homeless. Along with some of the locals, the Cali Cartel formed parties self named grupos de limpieza social (social cleansing groups) who murdered the "desechables," often leaving them with signs on them stating: "Cali limpia, Cali linda" (clean Cali, beautiful Cali). The bodies of those murdered were often tossed into the Cauca River
Cauca River
The Cauca River is a river in Colombia that lies between the Occidental and Central cordilleras. Born in southwestern Colombia near the city of Popayán, it joins the Magdalena River near Pinillos in Bolívar Department, and the combined river eventually flows out into the Caribbean Sea. It has a...
, which later became known as the River of Death. The municipality of Marsella
Marsella
Marsella is a town and municipality in the Department of Risaralda, Colombia....
in Risaralda
Risaralda Department
Risaralda is a department of Colombia. It is located in the western central region of the country and part of the Paisa Region. Its capital is Pereira.It was divided from the department of Caldas in 1966...
eventually went broke at the cost of recovering corpses and conducting autopsies
Autopsy
An autopsy—also known as a post-mortem examination, necropsy , autopsia cadaverum, or obduction—is a highly specialized surgical procedure that consists of a thorough examination of a corpse to determine the cause and manner of death and to evaluate any disease or injury that may be present...
.
Retaliation
Jorge Luis Ochoa Vázquez
Jorge Luis Ochoa Vásquez was a Colombian drug trafficker who helped found the notorious Medellín Cartel in the late 1970s. The cartel's key members were Pablo Escobar, Carlos Lehder, José Gonzalo Rodríguez Gacha, Jorge Ochoa and his brothers Juan David and Fabio.-Early years and the founding of the...
, Fabio
Fabio Ochoa Vázquez
Fabio Ochoa Vásquez was a ranking member of the notorious Medellín Cartel, which was one of the top Colombian cocaine trafficking groups. The youngest of the three Ochoa brothers, he lived in Miami, Florida during the 1970s...
and Juan David. M-19 demanded a ransom of $15 million for the safe release of Marta Nieves, but were rejected. In response to the kidnapping, the Medellín and Cali cartels, as well as associated traffickers, formed the group Muerte a Secuestradores
Muerte a Secuestradores
Muerte a Secuestradores or MAS, was a Colombian paramilitary group supported by drug cartels, U.S. corporations, Colombian politicians, and wealthy landowners during the 1980s, in order to protect their economic interests, assassinate political opponents and community organizers, and wage...
(Death to Kidnappers) (MAS). Traffickers contributed funds, rewards, equipment and manpower for MAS operations. Leaflets soon after were dropped in a football pitch
Association football pitch
An association football pitch is the playing surface for the game of association football made of turf. Its dimensions and markings are defined by Law 1 of the Laws of the Game, "The Field of Play".All line markings on the pitch form part of the area which they define...
in Cali announcing the formation of the group. MAS began to capture and torture M-19 members in retaliation. Within 3 days Marta Nieves was released. The group MAS however would continue to operate, with hundreds of killings attributed to them.
In 1992, the guerrilla faction Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia) (FARC) kidnapped Christina Santa Cruz, the daughter of Cali Cartel leader José Santacruz Londoño. FARC demanded in exchange for the safe return of Christina a ransom of $10 million. In response the Cali Cartel kidnapped 20 or more members of the Colombian Communist Party
Colombian Communist Party
The Colombian Communist Party or PCC is the legal communist party of Colombia. It was founded in 1930, as the Colombian section of the Comintern...
, Patriotic Union
Patriotic Union (Colombia)
The Patriotic Union or UP , was a leftist Colombian political party founded by the FARC and the Colombian Communist Party in 1985, as part of the peace negotiations that the guerrillas held with the Conservative Belisario Betancur administration...
, the United Workers Union and the sister of Pablo Catatumbo, a representative of the Simón Bolívar Guerrilla Coordinating Board
Simón Bolívar Guerrilla Coordinating Board
The Simón Bolívar Guerrilla Coordinating Board was an umbrella group of guerrilla organizations in Colombia from 1987 to the early 1990s. The Revolutionary Armed Forces of Colombia, the 19th of April Movement, the National Liberation Army, the Popular Liberation Army, Workers Revolutionary Party...
. Eventually, after talks, Christina and the sister of Catatumbo were released. It is unknown what happened to the other hostages taken by the cartel.
During the narco-terror war waged by Pablo Escobar
Pablo Escobar
Pablo Emilio Escobar Gaviria was a Colombian drug lord. He was an elusive cocaine trafficker and rich and successful criminal. He owned numerous luxury residences, automobiles, and even airplanes...
on the Colombian government, it is believed a hired assassin
Assassination
To carry out an assassination is "to murder by a sudden and/or secret attack, often for political reasons." Alternatively, assassination may be defined as "the act of deliberately killing someone, especially a public figure, usually for hire or for political reasons."An assassination may be...
attempted to kill Herrera while he was attending a sports event. The gunman opened fire using a machine gun on the crowd where Herrera was sitting, killing 19. However, he did not hit Herrera. In response to the attempted assassination, the Cali Cartel responded by kidnapping and killing Gustavo Gaviria, cousin to Pablo Escobar. Herrera is believed to be a founding member of Los Pepes
Los Pepes
Los Pepes , was a short-lived vigilante group composed of enemies of narcotics kingpin Pablo Escobar who waged a bloody war against Escobar and his associates in the early 1990s.-Name:While the name suggested that all, or most, members of Los Pepes were previously persecuted by...
, a group who operated alongside authorities with the intention of killing or capturing Pablo Escobar.
Counterintelligence
The counter-intelligence efforts of the Cali Cartel often surprised the DEADEA
DEA is the commonly used acronym for the Drug Enforcement Administration, a United States law enforcement agency.DEA or Dea may also refer to:- Organizations :* DEA , UK development education charity...
and Colombian officials. It was discovered in a 1995 raid of Cali Cartel offices, that the cartel had been monitoring all phone calls made in and out of Bogotá
Bogotá
Bogotá, Distrito Capital , from 1991 to 2000 called Santa Fé de Bogotá, is the capital, and largest city, of Colombia. It is also designated by the national constitution as the capital of the department of Cundinamarca, even though the city of Bogotá now comprises an independent Capital district...
and Cali including the U.S. Embassy in Bogotá and the Ministry of Defense
Ministry of National Defense (Colombia)
The Ministry of National Defence , is the national executive ministry of the Government of Colombia charged with coordinating and supervising all agencies and functions of the government relating directly to national security and the armed forces of Colombia, similar to the defense ministries in...
. The laptop, reportedly acquired through Israel, allowed Londoño to eavesdrop on phone calls being made as well as analyze phone lines for wiretaps. While officials were able to discover the use of the laptop, it is reported they were unable to decrypt many of the files due to sophisticated encryption techniques
Encryption
In cryptography, encryption is the process of transforming information using an algorithm to make it unreadable to anyone except those possessing special knowledge, usually referred to as a key. The result of the process is encrypted information...
. Londoño was also believed to have a person within the phone company itself, which the officials realized when he was able to recognize a phone tap, one that had been placed directly at the phone company, instead of at his residence. Londoño's lawyer soon sent an official notice requesting the legality and requesting the warrant if one was produced.
Included in the list of government officials and officers on the Cali Cartel payroll were a reported 5,000 taxi drivers. The taxi drivers would allow the cartel to know who was arriving in the city and when, as well as where they were staying. By having numerous taxi drivers on the payroll, the cartel was able to monitor the movements of officials and dignitaries. It is reported by Time Magazine, in 1991, DEA and U.S. Customs Service (now ICE) agents were monitoring a shipment being offloaded in Miami, only to find out later that the DEA agents were the target of Cali surveillance at the same time.
First InterAmericas Bank
Jorge OchoaJorge Luis Ochoa Vázquez
Jorge Luis Ochoa Vásquez was a Colombian drug trafficker who helped found the notorious Medellín Cartel in the late 1970s. The cartel's key members were Pablo Escobar, Carlos Lehder, José Gonzalo Rodríguez Gacha, Jorge Ochoa and his brothers Juan David and Fabio.-Early years and the founding of the...
, a high ranking Medellín financier, and Gilberto Rodriguez had been childhood friends and would years later co-own the Panamanian First InterAmericas Bank. The institution would later be cited by United States officials as a money laundering operation, allowing both the Cali Cartel and the Medellín Cartel to move large amounts of funds through the bank. Only through diplomatic pressure, on then Panamanian President Manuel Noriega
Manuel Noriega
Manuel Antonio Noriega Moreno is a Panamanian politician and soldier. He was military dictator of Panama from 1983 to 1989.The 1989 invasion of Panama by the United States removed him from power; he was captured, detained as a prisoner of war, and flown to the United States. Noriega was tried on...
, could the U.S. put an end to the banks use as a money laundering front. Gilberto Rodriguez would later in a Time Magazine interview admit to laundering money through the bank, however states no Panamanian laws were broken during the process.
Muerte a Secuestradores (Death to Kidnappers)
The two cartels would participate in other joint ventures in later years, such as the founding of MAS, who successfully returned Ochoa's kidnapped sister, Marta Nieves Ochoa. Expanding on the prior success of MAS, the cartels and independent traffickers would meet again. The second meeting is believed to have been the start of organization in trafficking between the primary participants, the Medellín cartel, and Cali cartel. The two cartels divided up the major United States distribution points between themselves, the Cali cartel taking New York City and the Medellín cartel taking South Florida and Miami, Los Angeles was left up for grabs. Through their affiliation in MAS, it is also believed the cartels decided to work together to stabilize prices, production and shipments of the cocaine market. The strategic alliance formed in the foundation of MAS in 1981 was starting to crumble by 1983-1984 due to the ease of competition. As the cartels set up infrastructure, routes, transport methods and bribes, it became easier for competition and establish similar deals, or make use of those already in place by other cartels. By 1987 the cooperation forged by the formation of MAS has no longer existed, contributing factors to this demise was the Medellín cartels' Rodriguez GachaJosé Gonzalo Rodríguez Gacha
José Gonzalo Rodríguez Gacha , also known by the nickname El Mexicano, was a Colombian drug lord who was one of the leaders of the notorious Medellín Cartel along with the Ochoa brothers and Pablo Escobar. At the height of his criminal career Rodríguez was acknowledged as one of the world's most...
, who attempted to move in on the New York City market, previously ceded to the Cali cartel and, the 1986 arrest of Jorge Ochoa at a police roadblock, an arrest the Medellín cartel believed was suspicious and attributed partly to the Cali cartel.
Los Pepes
In later years as Pablo Escobar's narco-terror war escalated against the Colombian government, the government began to strike back in ever escalating battles. As the Medellín cartel weakened due to the fighting and constant pressure, the Cali cartel grew in strength, eventually founding Los PepesLos Pepes
Los Pepes , was a short-lived vigilante group composed of enemies of narcotics kingpin Pablo Escobar who waged a bloody war against Escobar and his associates in the early 1990s.-Name:While the name suggested that all, or most, members of Los Pepes were previously persecuted by...
or Perseguidos por Pablo Escobar (People Persecuted by Pablo Escobar). Los Pepes was specifically formed to target the Medellín cartel and bring about the downfall of Pablo Escobar. It is believed Los Pepes provided information to Bloque de Busqueda
Search Bloc
The Search Bloc was a Special Operations unit of the National Police of Colombia .-History:...
(Search Bloc) a police/army unit specifically created to track down Medellín leaders. In exchange for information Los Pepes received assistance from the United States counter-terrorism
Counter-terrorism
Counter-terrorism is the practices, tactics, techniques, and strategies that governments, militaries, police departments and corporations adopt to prevent or in response to terrorist threats and/or acts, both real and imputed.The tactic of terrorism is available to insurgents and governments...
unit, Delta Force
Delta Force
1st Special Forces Operational Detachment-Delta is one of the United States' secretive Tier One counter-terrorism and Special Mission Units. Commonly known as Delta Force, Delta, or The Unit, it was formed under the designation 1st SFOD-D, and is officially referred to by the Department of Defense...
, through its links to Search Bloc. By the time of Escobar's capture and eventual death in December 1993, Los Pepes have been responsible for the deaths or executions of over 60 associates or members of the Medellín cartel. The death of Pablo Escobar led to the dismantling of the Medellín Cartel and the rise of the Cali cartel.
Seizures
The involvement of U.S. Customs Service in the Cali Cartels trafficking came in 1991 when a shipment was intercepted with the aid of a drug sniffing dog
Detection dog
A detection dog or sniffer dog is a dog that is trained to and works at using its senses to detect substances such as explosives, illegal drugs, or blood. Hunting dogs that search for game and search dogs that search for missing humans are generally not considered detection dogs...
. The cocaine was hidden inside concrete posts. The interception of the concrete posts at the Miami seaport lead to seizure of 12,000 kilograms of cocaine and several arrests, as well as the beginning of what the US Customs Service would dub "Operation Cornerstone". A year later in another seizure, an USCS wiretap on Harold Ackerman, whose affiliation was derived from the '91 seizure, enabled the arrest of 7 individuals and 6,000 kilograms of cocaine hidden in a load of broccoli. Accounting ledger
Ledger
A ledger is the principal book or computer file for recording and totaling monetary transactions by account, with debits and credits in separate columns and a beginning balance and ending balance for each account. The ledger is a permanent summary of all amounts entered in supporting journals which...
s were seized in related arrests which allowed the identification of another shipment being sent to Panama hidden in tiles, this information was passed to Panamanian authorities and lead to the seizure of 5,100 kilograms.
The following year in 1993, the US Customs Service struck again at the Cali cartel, this time seizing 5,600 kilograms while pursuing Raul Marti, the only member of the defunct Miami cell to remain. It is believed these successive raids forced the cartel to funnel its shipments through Mexico, however that did not stop the US Customs Service. Three maritime ships were intercepted in '93 with a total of 17,000 kilograms. Operation Cornerstone lasted 14 years targeting the Cali cartels drug trafficking operations.
Major arrests
The Rodríguez brothers were extradited in 2006 to the United States and pleaded guilty in Miami, Florida
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
to charges of conspiracy to import cocaine into the United States. Upon their confession they agreed to forfeit $2.1 billion in assets. The agreement, however, did not require them to cooperate in other investigations. They were solely responsible for identification of assets stemming from their cocaine trafficking. Colombian officials raided and seized the Drogas la Rebaja pharmacy chain, replacing 50 of its 4,200 workers on grounds they were "serving the interests of the Cali Cartel."
See also
- Medellín CartelMedellín CartelThe Medellín Cartel was an organized network of "drug suppliers and smugglers" originating in the city of Medellín, Colombia. The drug cartel operated in Colombia, Bolivia, Peru, Central America, the United States, as well as Canada and Europe throughout the 1970s and 1980s. It was founded and...
- Narcotrafficking in Colombia
- Norte del Valle cartelNorte del Valle CartelThe Norte del Valle Cartel, or North Valley Cartel, is a drug cartel that operates principally in the north of the Valle del Cauca department of Colombia...
- Cocaine CowboysCocaine CowboysCocaine Cowboys is a 2006 documentary film directed by Billy Corben and produced by Alfred Spellman and Billy Corben through their Miami-based media studio Rakontur. The film explores the rise of cocaine and resulting crime epidemic that swept the American city of Miami, Florida in the 1970s and...