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REPORT ON DRUG TRAFFICKING IN THE
CENTRAL DISTRICT OF CALIFORNIA
Submitted by
ROBERT C. BONNER
UNITED STATES ATTORNEY
CENTRAL DISTRICT OF CALIFORNIA
894-211311 1, Chief 1989 Mr. Jams of Narcotics ubloh
March
TABLE OF CONTENTS
Executive Summary
i-vi
Report on Drug Trafficking in the
Central District of California
1
I.
INTRODUCTION
1. The Los Angeles Area Drug Trafficking
Environment
2
2. Historical Background
6
II.
DRUGS OF ABUSE
A. Cocaine
11
B. "Rock" Cocaine/"Crack"
18
1. "Rock" Manufacturing and Distribution
20
2. Street Gangs
22
3. Jamaican Posses/Criminals
25
C. Heroin
26
1. Mexican Heroin Organizations
27
2. Asian Heroin Organizations
29
D. Phencyclidine (PCP)
30
E. Cannabis (Marijuana and Hashish)
32
III.
MONEY LAUNDERING OPERATIONS
35
1. Bulk movement of Cash
37
2. Bank Transfers
38
3. Business Establishments
39
IV.
CONCLUSION
40
APPENDIX
41
REPORT ON DRUG TRAFFICKING IN THE
CENTRAL DISTRICT OF CALIFORNIA
EXECUTIVE SUMMARY
The Central District of California is currently on the front
lines of the national battle against drug abuse and drug
trafficking. The past several years have seen an accelerating
involvement of the Los Angeles area in all aspects of the
narcotics business -- smuggling, distribution, money-laundering
and drug manufacturing. This report seeks to provide a
comprehensive overview of the present illegal drug situation in
this District, based upon models of typical trafficking
organizations deduced from past and current investigations.
Geography and demographic considerations contribute
significantly to the drug problem in this District. There are
several major ports and harbors and a number of international and
local airports, all of which facilitate entry of contraband into
the District and which stretch limited law enforcement
resources. The Central District is the most populous in the
country, containing more than 14 million people, many of whom are
of Hispanic extraction. This dense population base provides the
nation's biggest market of drug consumers. The large number of
Hispanic communities provides an excellent cover for many of the
area's drug traffickers, a large number of whom are Colombian or
Mexican. There is also a very large Asian population in the Los
Angeles area which maintains contact with some of the more
prominent Asian source countries for narcotics.
Cocaine is far and away the paramount drug problem facing law
enforcement in this District. The way in which the problem grew
illustrates how an area can become the center of trafficking
activity when enforcement pressure becomes too great in other
areas. During the 1970s and into the 1980s, Los Angeles was
primarily a consumer market for cocaine. The major trafficking
organizations dealt srictly with distributing cocaine smuggled
in, mainly from Florida. As law enforcement efforts increased in
South Florida, Colombian organizations began smuggling cocaine
into the Los Angeles area, through Mexico, for distribution from
Los Angeles throughout the nation. The shift to Los Angeles as
the primary distribution center for the nation's cocaine occurred
in about 1985. In 1984, federal and local law enforcement in Los
Angeles seized approximately 2,000 pounds of cocaine. Total
seizures of cocaine in Los Angeles exceeded 30,000 pounds in
1988. The wholesale price per kilo dropped to $10,000 per kilo
in Los Angeles last year, -- lower than anywhere else in the
country, including Miami.
ii
"Rock" cocaine (crack) has exploded into the most serious
public health problem, except perhaps for AIDS, in recent times.
Due to the fact that it is easily produced from powder cocaine,
is very addictive, and is relatively cheap, "rock" has beocme a
major drug abuse problem, particularly in the inner city. The
trade in "rock" is controlled mainly by street gangs who fight
viciously among themselves to preserve markets or to retaliate
for violations, commonly with automatic weapons in "drive-by"
shootings. Fueled by the availability of cheap cocaine here, Los
Angeles gangs have spread their influence to most major cities of
the west and midwest in a continuing search for new markets.
Another phenomenon associated with "rock" occaine is the
"rock house, " a fortified, heavily defended residence from which
"rock" is anonymously dispersed.
Heroin, which a decade ago was believed to be receding as a
threat, appears to have re-emerged. Statistics reflecting
increased heroin abuse have increased over the past several
years. Heroin trafficking is encountered primarily among Mexican
narcotics
iii
dealers, who sell Mexican brown heroin and the newer, stronger
Black Tar heroin, and Asian criminals, mainly Thai and Chinese,
whordeal is Asian White (No. 4) heroin. Some substantial
seizures from vessels docking at local ports indicate that marine
smuggling is the major threat axis for Asian heroin, while the
Mexican heroin trade is mainly a family-dominate operation which
grows, harvests and processes opium poppies into heroin in
several northern States of Mexico. That heroin is then smuggled
across the border into the United States in multi-kilogram lots
for sale in the Los Angeles area. The extensive use of family
members by Mexican heroin trafficking organization makes them
very difficult to penetrate and investigate.
Phencyclidine (PCP) is manufactured in greater quantity in
this District than anwhere else in the nation. As is the case
with "rock" cocaine, the manufacture of PCP does not require a
sophisticated laboratory, although it is somewhat dangerous to
make. As is also the case with "rock" cocaine, there is
substantial evidence that PCP made in Southern California is
being shipped, in quantity, throughout the country, including to
Washington, D.C.
iv
The largely-unprotected coast which makes up one border of
the District is extremely vulnerable to exploitation by marijuana
and.hashish smugglers from South America and Asia. The
population of the Los Angeles area is a major market for these
drugs. In some instances, hashish has been smuggled in through
the Ports of Los Angeles and Long Beach in cargo containers,
which are numbered in the millions each year. The relatively few
Coast Guard assets available to deal with this maritime smuggling
threat are hindered by the lack of natural channels or
check-points such as are found in the Caribbean.
Money laundering is a rapidly-developing aspect of the
overall drug situation in this District. In the past two years,
two nighly successful undercover law enforcement operations have
given some indication of the size of the drug market in Los
Angeles. In 1987, Operation Pisces netted almost $50 million in
cash and assets seized -- a comparable amount was laundered back
through Panamanian banks to Colombian traffickers. A
recently-concluded investigation documented the use, by narcotics
traffickers, of Los Angeles jewelry dealers in a laundering
operation which handled over $1 billion in narcotics money since
1986.
>
The Central District of California serves as a microcosm of
the national drug dilemma. Every significant drug-related
problem seems to thrive in this environment. The District
features embedded smuggling and distribution networks,
- laundering schemes in profusion (due in part to the fact
that this is the principal distribution center for Colombian
cocaine), drug consumption on a huge scale, manufacturing
operations, organized criminal activity and violence. It also
features some of the longest-lived and most successful examples
of law enforcment cooperation and demand reduction programs.
vi
REPORT ON DRUG TRAFFICKING IN THE
CENTRAL DISTRICT OF CALIFORNIA
Submitted by
ROBERT C. BONNER
UNITED STATES ATTORNEY
CENTRAL DISTRICT OF CALIFORNIA
This report seeks to describe the present state of knowledge
of law enforcement agencies regarding the nature and extent of
drug trafficking activities in the Central District of
California. The approach used is to describe the drug trafficking
problem in terms of (1) drugs, (2) organizations and
(3) activities.
The Central District covers most of Southern California,
including the counties of Los Angeles, Orange, Riverside, San
Bernardino, Ventura, Santa Barbara and San Luis Obispo. It is the
most populous district in the nation with over 14 million people
and is separated from Mexico by the two California border
Counties, San Diego and Imperial. The entire metropolitan Los
Angeles area is contained within the Central District.
- 2 -
INTRODUCTION
1. The Los Angeles Area Drug Trafficking Environment
Los Angeles presents a unique and uniquely vulnerable target
to prospective drug traffickers. Factors of geography and
population and, to a lesser extent, climate, all conspire to make
this area attractive to narcotics criminals.
The Central District of California is comprised of seven
counties covering 40,522 square miles, running from the Pacific
Ocean to the Colorado River. The eastern part of the district
contains vast open desert spaces which hold over 100 clandestine
airstrips which are routinely used by drug smugglers. There are
also 16 commercial airports which receive traffic on a daily
basis, including Los Angeles International, which has daily
international flights from most of the major narcotics source
countries of the world, and John Wayne International (Orange
County) which is one of the busiest airports in the country. Los
Angeles International Airport handles nearly 100 million passen-
gers a year, -- 3 million of which arrive on international flights.
The coastline of the district runs from the San Diego County
line to Monterey Bay and includes both the Port of Los Angeles and
the Port of Long Beach, both of which handle vast amounts of cargo
and passengers from around the world, particularly from countries
- 3 -
on the Pacific Rim, several of which are major narcotics source
countries for cocaine, heroin, hashish and marijuana. These are
the largest ports on the West Coast, and their combined volume of
cargo rivals the port of New York. During 1986 alone, over 7,000
vessels, 80% of which were cargo carriers, used the ports of Los
Angeles and Long Beach. The vessels provide frequent opportuni-
ties for bulk drug smuggling. Moreover, the Central District has
hundreds of miles of unprotected coastline dotted with marinas,
commercial fishing ports and uninhabited inlets ideal for large-
scale smuggling operations.
The Los Angeles basin is criss-crossed with one of the world's
busiest roadway (freeway) systems which connect the dozens of
individual communities that make up the greater Los Angeles
metropolitan area and which at once facilitates travel and
complicates law enforcement surveillance and coordination, because
narcotics transactions frequently will begin in one location and
in a matter of a few hours move many miles and perhaps counties
away. Los Angeles County alone has 43 separate police
departments, many of which have a narcotics bureau.
The population of the district is huge and growing. According
to the 1980 Census over 50% of the population of California, the
most populous state in the nation, resides in the Central District
of California. This population is growing at twice the rate for
- 4 -
the rest of the country. Indeed, five of the ten fastest growing
counties in the nation are in the Central District of California.
Estimates put the population of the Central District at 18.2
million by 2010.
There are very large ethnic populations concentrated in the
Los Angeles metropolitan area. Substantial communities of
Colombians, Cubans and Mexicans exist in the area. According to
the Immigration and Naturalization Service, approximately 130,000
Mexican aliens enter the Los Angeles community legally each year.
Figures derived from apprehension statistics on the southwest
border disclose that approximately 70% of 1.3 million illegal
Mexican aliens captured were enroute to the Los Angeles area. An
estimated 2 million illegal aliens of Mexican origin are currently
in the Los Angeles area.
In addition to the large Mexican community living and working
in the greater Los Angeles area, there are approximately 30,000
permanent resident aliens from Colombia and an additional 10,000
illegal Colombian aliens in the area. A further 9,000 non-
immigrant Colombians enter the United States through Los Angeles
each year.
- 5 -
There are also substantial numbers of Asians -- Japanese,
Chinese, Vietnamese, Cambodians, Thais and Koreans -- who have
established enclaves in various parts of Los Angeles. These
populations tend to maintain strong family relationships with
their native lands, many of which have substantial connections
with major narcotics source countries, especially for heroin and
marijuana.
Finally, the generally relaxed and leisure-oriented lifestyle
of the Southern California area, coupled with the glamorous
entertainment industry headquartered in this area, has given rise
to an accepting attitude toward drug use. State law relating to
drug use and abuse has been historically weak -- possession or use
of small (1 ounce or less) quantities of marijuana is a "no jail"
citable offense, on a par with a traffic ticket -- and has only
recently begun to deal with drugs as serious crime problem. Even
today, persons arrested for simple possession of hard drugs, e.g.,
cocaine, heroin, PCP, etc., are not prosecuted in the state
system. They are routinely "diverted," i.e., placed into a
diversion program requiring attendance at five one-hour sessions
on drug abuse.
lorgist
California is believed to have the largest population of drug
consumers in the country, and their appetites are broad-ranging.
pop.
Many trends in drug abuse started in California and moved across
hours
- 6 -
the, country. For example, "crack" cocaine, which is known in
the Crock in
Los Angeles area as "rock" cocaine, was first encountered in Los
Angeles in 1981. By late 1985, it had reached the east coast and
was identified as a serious problem -- crack -- in early 1986.
With the size and diversity of the drug user market that Southern
California represents, virtually every major narcotics
distribution organization has representatives here. Local police
authorities estimate that over 60% of the murders reported in Los
Angeles county were related to drugs in some respect. Seventy
percent of those arrested for serious non-drug crimes in Los
Angeles test positive for illegal drug use.
2. Historical Background
Over the past 10 years the drug trafficking situation in the
Now
greater Los Angeles metropolitan area has changed dramatically.
In 1978 Los Angeles was primarily a drug-consuming market, with
Pag
numerous distribution networks operating throughout the Los
Angeles basin to handle drugs, which were brought in from other
locations after having been smuggled into the United States.
Cocaine has been the major drug abuse problem in this area for the
past ten years. Ten years ago, the great majority of cocaine was
smuggled into the United States in Florida and then shipped
overland to California, where it was distributed by conspiratorial
groups that were established in the Los Angeles area. From 1984
to the present, vast quantities of cocaine have been smuggled into
Los Angeles across the land border with Mexico, either by vehicle
- 7 -
across the California and Arizona borders with Mexico and then
driven to Los Angeles for storage and distribution, or by aircraft
which fly to the numerous clandestine airstrips in the desert
areas east of Los Angeles where the drugs are off-loaded and
turned over to distribution organizations operating in and from
the Los Angeles area.
Once the cocaine arrives in Los Angeles, it is consigned to
distribution networks to be sold to dealers in Los Angeles and
elsewhere in the U.S. who deal in multi-kilogram quantities, and
ultimately to smaller dealers who in turn would sell ounce or gram
quantities to the end consumer.
Historically, these distribution networks which initially
received the multi-kilogram quantities from the smuggling
organization have varied in composition. Many are staffed by
Colombian nationals who have come to this country either legally
or illegally and have established a short-term -- one or two years
-- headquarters operation working directly for the smuggling
operation outside of California, i.e., in Colombia. Colombians
typically staff the first-line, wholesale distribution of cocaine
40%
in and from Los Angeles. According to the most current DEA
clistri
estimates, 40% of the nation's cocaine is being distributed in and
Trona
from Los Angeles. Based on the huge seizures of cocaine by law
enforcement in the Central District (30,000 pounds in 1988), that
- 8 -
figure may be above 50%. The vast amount of cocaine being shipped
into Los Angeles no doubt accounts for the fact that the price for
cocaine is lower in Los Angeles ($10,000 to $14,000 per kilo) than
anywhere else in the country, including Miami. 1/
Other, secondary distribution networks are wholly composed of
Blacks or Anglos -- native Americans who are well-established in
various Los Angeles-area communities. The Anglo and Black
networks have some connection with a foreign drug trafficker,
usually Mexican or Colombian, and obtain multi-kilogram supplies
which are then cut and sold in the community of which they are a
part. In other cases, the secondary distribution networks are
made up of members of a local latin community, typically Mexicans,
who have lived in ethnic neighborhoods for years and are a part of
the criminal fabric of that community.
In 1979 the largest cocaine seizure in California up to that
time was 12 kilograms. In 1981 a then-record seizure of 114
pounds (55 kilograms) occurred. In both of those cases the
cocaine which had been smuggled into Florida was transshiped to
1/ See, DEA Intelligence Trends, Vol. 15, No. 2
From 12 kilo in 79 to 114 lbs in '81
9
to over 500lbs in '85 which has
become common place.
California and put in the hands of an established distribution
group. The 1979 seizure was from an Anglo distribution group; the
1981 seizure involved a group of Colombians who had been sent to
Los Angeles to distribute drugs for a number of Colombian
smuggling groups.
In 1985 a seizure of over 500 pounds of cocaine was made.
This seizure represented a quantum leap in the size of seizures in
the Central District of California, and since 1985 it has become a
commonplace to seize 500-pound plus stashes of cocaine, with some
seizures ranging up to over one ton.2/ Most of these seizures
have been from stash houses in the Los Angeles area, rather than
loads in transit. At one point in 1986 there were four
prosecutions, each involving over 700 pounds of cocaine, pending
in federal or state court. A single long-term undercover
investigation (Operation Pisces) resulted in seizures which
totaled over 5 1/2 tons of cocaine in a 13-month period.
2/ For example, in just one week in October 1988, over 2 1/2 tons
of cocaine was confiscated in 5 seizures from stash houses in
the Los Angeles area. In the largest seizure, 1,700 pounds of
cocaine was seized. The other cocaine seizures involved 1,516
pounds, 1,100 pounds, 600 pounds and 175 pounds, respectively.
- 10 -
The advent of large seizures of cocaine in this district
coincided with a discernable shift in the smuggling patterns of
large cocaine traffickers. In the late 1970s and early 1980s,
the preferred route for smugglers had been from Colombia to
Florida, by ship and aircraft. The creation of the South Florida
Task Force in 1982 heightened interdiction efforts and led to a
change in smuggler's tactics. By 1984 it became apparent that the
Medellin cartel had linked up with Mexican drug organizations,
principally in Guadalajara, and were using Mexico as a point for
transshipment of cocaine and that greater and greater volumes were
coming across the U.S.-Mexican land border, by aircraft and by
other means -- vehicles, mule-trains, etc. -- into California,
Texas and Arizona. Two very large border seizures of cocaine,
each of approximately 1,500 pounds, were made a few months apart
in Arizona. That cocaine was destined for the Los Angeles area
for distribution, as subsequent investigation showed. Several
seizures of multi-hundred pound loads of cocaine in Texas were
also found to be headed for the Los Angeles area. Recently, a
700-pound load of cocaine was seized on board a private airplane
which had landed in the Mojave Desert east of Los Angeles. The
plane had originated its flight in Mexico.
The major changes in cocaine trafficking over the past 10
years in this district have been (1) the increase in direct
smuggling into the Los Angeles area, (2) the very large increase
- 11 -
in the size of the loads that have been detected and (3) the
emergence of "rock" cocaine or "crack" as a major drug of abuse.
This last factor has led in turn to a major involvement of
entreprenurial Los Angeles street gangs in the drug trafficking
situation, and an increase in the amount of violence associated
with the traffic.
II
DRUGS OF ABUSE
A. Cocaine
Cocaine dealing and smuggling is, without doubt, the most
significant narcotics crime problem facing the Central District of
California in the 1980s. It has been the most prominent drug
crime problem in this area since the latter part of the 1970s,
when cocaine became a favored drug among users of controlled
substances.
Cocaine
Recent estimates of cocaine usage in the United States suggest
that the number of persons who have used the drug has increased
almost 500% -- from 5.4 million to over 25 million -- in the
twelve-year period from 1974 to 1986. There are believed to be
four to six million regular users of cocaine. Much of this
increased usage is due to the association of cocaine with persons
prominent in the entertainment industry and sports, and with a
generally tolerant attitude, at all levels of society, toward a
- 12 -
drug that was mistakenly viewed as "recreational" and
non-addictive. While those attitudes are being reversed, the
foothold that cocaine abuse gained during the 1970s and 1980s has
made Southern California one of the major cocaine consuming
markets of the country and the world. That has led, in turn, to
an increased incidence of smuggling directly into this market
area, the growth of "crack" or "rock" cocaine usage and
distribution (with its associated violence and its impact upon
young, high-risk target populations) and the accumulation of
enormous amounts of drug-sales money which is "laundered" in the
Los Angeles area and shipped back to the sources of supply outside
of the U.S.
The nature and modus operandi of cocaine distributing
organizations seems to have remained relatively constant over the
past several years. Generally, the cocaine distribution networks
are vertically organized, with a small, centralized management
team receiving the drugs in multi-hundred kilogram lots from
sources of supply outside of the country. The drugs will be
received on consignment, with the head of the distribution network
being responsible to the supplier for the value of the load.
Consequently, it is very common for the managers to maintain
detailed ledgers reflecting not only the receipt of cocaine loads
and their dispersal to other, smaller distributors, but very
complete information on the date of receipt, the precise quantity,
- 13 -
the price to the manager's organization, the identity and coded
description of the source of supply, the coded identity of the
distributor to whom the cocaine was re-consigned or "fronted" and
the date and amount of payment received from sub-distributors.
A fortuitous seizure of drugs, money and a set of detailed
narcotics ledgers which occurred in 1981 provided an unprecedented
look into the internal operations of a group that continues to
operate, with different personnel, in parts of the United States,
including Los Angeles, today. The narcotics ledgers disclosed
details about the cellular structure which continues to
characterize high-level cocaine distribution organizations, and
which appears to be an accurate model for those networks.
These narcotics ledgers, seized from the
Rivera-Ramirez
organization, showed that there was a headquarters group of 6-7
members who were responsible for receiving large quantities of
cocaine -- up to 100 kilograms at a time (a quite large amount at
the time) -- and storing it for distribution. The headquarters
group was using four separate apartments in an apartment complex,
with the ledgers and money kept in one, the drugs in another (in a
separate building), with various members of the headquarters group
living in, and distributing drugs out of, the other apartments.
The ledgers showed that there were 27 major (kilogram or more)
distributors who would receive cocaine from the organization,
- 14 -
either by coming to the apartments to receive the drugs or, for
those located at a distance from Los Angeles, the drugs would be
sent by courier to the distributor. Each distributor was allowed
to maintain a balance, which he would pay down as he received
payment from his sub-distributors, who presumably dealt in
fractions of kilograms to their own distributors in their area.
There was no indication that any of the 27 "clients" had any
knowledge of each other, which is in keeping with the "cellular"
nature of this, and other, cocaine distribution organizations.
This cellular mode of operation prevents the identification and
apprehension of other distributors if one is arrested. Each of
the distributors was identified only by a code name, to make
identification difficult even if, as in this case, the
headquarters group and ledgers were seized. The process of
identifying each of the "clients" took many months, by which time
most had relocated.
The supply mechanism disclosed by this investigation showed
that the headquarters group was in direct telephone and courier
contact with Colombian sources of supply. Those sources would
smuggle hundreds of kilograms of cocaine into Florida, where the
overall organization's first level of distribution -- bulk
distribution -- would occur. (Since 1984, it is clear that bulk
distribution is occurring from Los Angeles to Chicago, New York,
- 15 -
San Francisco and elsewhere.) At that point multi-kilogram loads
were sent by courier, using vehicles, to major markets, including
Los Angeles and New York. The smuggled loads were generally made
up of many individual packages, typically a kilogram in size,
marked with the symbol ("flavor") of the sending organization.
The Florida distributor would then dispatch a load, made up of
perhaps several different "flavors" of cocaine, to the market
city, keeping track of how many packages of which "flavor" were
sent, because both he and the market-city network manager were
responsible for that much cocaine to the supply organization in
Colombia whose symbol ("flavor") appeared on the package.
The ledgers seized from the Rivera-Ramirez organization kept
very careful note, down to individual gram quantities, of exactly
how much cocaine, of which "flavor," had been received and
disbursed to the "clients." This detailed tracking of the drugs
allowed the headquarters manager to account specifically to the
source of supply for that "flavor" for the amounts distributed and
the amount of money received.
During a part of the observable life of the Rivera-Ramirez
organization, which spanned seven months, the group would use
couriers to both carry drugs from Florida to Los Angeles and, on
the return trip, to carry money from their sale to the collection
point in Miami for re-shipment to Colombia. Following the arrest
- 16 -
of a major money launderer in Florida, the money shipment method
changed. A person was sent to Los Angeles to act as the pick-up
contact for the money. He bought a house in the Los Angeles area
and would contact the management team periodically. A record of
telephone calls to and from his residence disclosed a pattern of
calls and visits to pick up quantities of money -- usually in the
range of $1-2 million at a time -- for the account of the
owner/source of the drugs. These pick-ups were carefully noted in
the ledgers and on each occasion the pick-up man signed for the
money. It was later possible to identify both the pickup man, as
well as the source of the cocaine -- Juan Ramon Matta-Ballesteros.
It was also possible to document an historical association of
friendship and business dealings between Matta and the pick-up
man, James Victoria Cano.
The type of cocaine distribution organization which is
evidenced by the investigation of the Rivera-Ramirez organization
is believed to be largely typical of Los Angeles-based cocaine
organizations. The main features which are common are (1) The
cellular organization, with the use of code-names for members and
clients; (2) the use of multiple locations -- whether apartments,
or more recently, a series of single-family residences -- to stash
drugs and money and to serve as operational bases; (3) the use of
detailed ledgers to provide accountability; (4) the technique of
- 17 -
"fronting" drugs, or delivering on consignment, to avoid having
to make frequent deliveries of large amounts of cash and (5) the
transport of money to a central collection point for ultimate
delivery to the supplier of drugs.
There are some significant differences in operational details
as law enforcement pressure has increased and had an impact upon
cocaine trafficking organizations. The widespread use of
mobilecellular telephones, pay telephones and paging devices to
arrange for transactions away from the headquarters location has
increased. It has become common to encounter "service"
organizations -- private detectives, cellular telephone companies,
real estate agents and mail services -- who will rent equipment,
cars and houses for the illegal aliens, commonly Colombians, who
staff the trafficking organizations. In some cases these
"service" organizations operate to conceal the identity of the
renter/user; in other cases they are more actively involved,
providing warning of law enforcement interest.
There are also significant variations in the make-up of the
cocaine trafficking organizations. Because Colombia is the source
country for most of the cocaine reaching Los Angeles, a connection
with a Colombian, or other source country (Bolivia, Peru),
supplier is necessary. It is, however, quite common for someone
in one of the many non-Colombian Hispanic communities -- Cuban or
- 18 -
Mexican, mainly -- or other ethnic communities -- Black, Caucasian
(Anglo) or Asian -- to have sufficient connections with a source
country or local Colombian to set up his own distribution
network. Those networks, when discovered, generally rely upon
distribution organizations that are based on long-term friendships
or associations or common ethnic background. They tend not to be
as secure and cellular in their organization and are somewhat
easier to penetrate with undercover operations or electronic
surveillance. To the extent that they are composed of persons
with substantial roots in this country, it is somewhat easier to
identify proceeds of drug trafficking, as it will be manifested in
consumer purchases, real estate investments or bank accounts, and
it is correspondingly easier to isolate for seizure and forfeiture.
An Appendix (Appendix A) to this report identifies the major
cocaine trafficking (smuggling and distribution) organizations
which are presently operating in the Central District of
California, based upon current law enforcement agency intelligence
estimates.
B. "Rock" Cocaine/"Crack"
In the past 3 to 4 years, beginning in 1984 and accelerating
to the present, the phenomenon of "rock" or "crack" cocaine has
come to dominate a large part of the discussion of drugs in
general and cocaine abuse in particular. "Rock," which cocaine
- 19 -
gets its name from its appearance and consistency, is a smokable
form of cocaine which has been converted from the powder form,
cocaine hydrochloride, which is commonly snorted or injected, back
to its base form, which is an intermediate stage in the process of
refinement. The process of producing "rock" from powder cocaine
is quite simple, involving the combination of baking soda, water
and powder cocaine in a mixture which is then heated in a stove or
microwave. The resulting substance is a solid mass of freebase
cocaine, highly purified and no longer water-soluble. The mass is
then broken up or "cracked" into small rock-like chips or pieces
and is sold on the street as "rock" or "crack." The typical
dosage unit is a fraction of a gram, from .20 to .25 grams, and it
sells for as little as from $20 in Los Angeles, bringing it well
within the financial reach of young people. Smaller chips of
"rock" sell for $5-10, and present a major threat to school
children.
According to those who have used it and who are willing to
discuss its use, "rock" cocaine is very addictive, much more so,
and much more quickly, than regular cocaine. The euphoria is
reached more quickly than with regular cocaine, and is much more
intense, due primarily to the route of administration. The smoked
cocaine goes almost directly to the receptors on the brain where
it produces a very rapid and intense "high." The cyclical
depression which typically follows any use of cocaine is also more
- 20 -
rapid in its arrival and correspondingly more intense. The result
is frequently an almost immediate psychological addiction which
is, at least initially, sustainable because "crack" is relatively
inexpensive and readily available.
1.
"Rock" Manufacturing and Distribution
In the Los Angeles area the manufacturing and
distribution of "rock" cocaine is generally a Black
enterprise. Most of the major cookers of "rock" are Blacks,
who appear to have a good working relationship with Colombian
or Mexican suppliers of powder cocaine. The model structure
of a Black "rock" cocaine organization appears to be as
follows: An older, established former street gang member who
has graduated from the random criminal activities known as
gang-banging, such as robbery, assault, extortion and
murder, will establish a connection with a source of supply
for powder cocaine. That connection will supply
multi-kilogram quantities of cocaine hydrochloride, which the
head of the "rock" distribution network then turns over to a
cooker, who converts the powder cocaine to "rock." It is not
currently known whether the powder cocaine is provided on a
"front" or consignment basis, or whether that end of the
business is cash-and-carry. It most likely varies with the
duration and strength of the established relationship. Los
Angeles Police Department intelligence estimates suggest that
15-20% of the "rock" dealers receive powder cocaine on a
- 21 -
"front" basis. The newly-produced "rock" is then given out in
multi-ounce quantities to street distributors who typically
carry only small caches -- grams or fraction of grams (10-20
"rocks") -- on their person for street sales. The balance
will be concealed in a convenient location, such as a house
nearby, or a car interior or trunk, from which replenishment
can be quickly accomplished.
of
The actual mechanics of street sales takes several
10/10
forms. In some instances, "spotters" direct customers to the
sidewalk or house where the distributor is waiting.
Frequently, that "spotter" will accompany the customer and
will handle both the drugs and the money exchange. In other
cases, the seller will approach a car and offer to sell the
"rock." In yet other circumstances the sales occur inside a
fortified house known as a
"rock house.
In those cases there
may be multiple ounces of "rock" in the house. The customer
is not allowed inside the house, or is allowed only into a
caged area just inside the door. The seller generally remains
out of sight, with drugs and money passed through holes in the
wall. These "rockhouses" are heavily fortified and sometimes
heavily defended with automatic weapons, requiring an assault
team led by the LAPD's tank-like battering ram to execute a
search warrant. The popularity of "rockhouses" to distribute
"rock" cocaine in Los Angeles appears to be diminishing in
- 22 -
favor of highly-mobile street sales. This shift appears to be
related to the use of the LAPD's battering ram to gain access
to rock houses.
2.
Street Gangs
The past few years in Los Angeles has seen the
large-scale involvement of Black street gangs, with membership
numbered in the tens of thousands, in the "rock" cocaine
business. Two major federations, the Crips and the Bloods,
Gang
dominate the Black street gangs in the south-central part of
Los Angeles. Each of the major federations has hundreds of
sub-gangs, known as
sets,
which are generally based upon
neighborhoods and take their names from prominent streets,
such as
'Five-Deuce Hoover Crips"
(52nd Street and Hoover
Street),
110 Main Street Gangster Crips"
(110th Street and
Main Street), or from derivations unknown ( "Rollin 60 Crips,
"Blood Stone Villains"
(Bloods),
"Playboy Gangster Crips,
"Neighborhood Bloods,
"Bounty Hunters"
(Bloods) ) Los
Angeles street gangs now dominate the rock cocaine trade in
Los Angeles and elsewhere, due in part to their ready recourse
to murderous violence to enforce territorial dealing
supremacy, to deter cheating and to punish rival gang
members. Currently, there are approximately 260 discrete gang
"sets," mostly allied to the Crips or Bloods, with an
estimated total membership of more than 25,000, in the city of
Los Angeles. When all of the gangs documented in the county
- 23 -
are added, the total number of gangs approaches 700 and the
membership estimates approach 75-80,000. Not all of these
gangs sets are involved in drug trafficking, let alone rock
cocaine dealing, but the number of gang members actively
involved in the rock cocaine traffic is believed to exceed
10,000, mainly concentrated in the Black areas of South
Central Los Angeles, Compton, Inglewood, and Long Beach.
The major Los Angeles Street Gangs known to be substantially
involved in drug trafficking are as follows:
Name
Membership (estimated)
Playboy Gangster Crips
250 members
Five-Deuce Hoover Crips
300 members
Rollin 60 Crips
350-500 members
East Coast Crips
unknown
Grape Street Crips
200 members
Eight-Trey Gangster Crips
unknown
Four-Trey Hoover Crips
unknown
Shoreline Gangster Crips
unknown
Geer Street Gangster Crips
unknown
Schoolyard Crips
unknown
Rollin 20s Crips
unknown
Very little is known about the hierarchical structure, if any, of
these gang trafficking organizations. There is a division of
opinion among knowledgeable gang investigators concerning the
degree of involvement of the gangs, as gangs, in the "rock"
traffic.
- 24 -
Most probably, certain members of "cultural" Los Angeles
street gangs are a part of emerging entrepreneurial drug
trafficking organizations. These organizations no doubt take on a
hierarchical structure that uses gang members for muscle and at a
lower level, as couriers, street dealers and money collectors.
In most instances, the only identifiable assets of gang
traffickers are cars and jewelry. "O.G.s" (Original Gangsters)
or those who have graduated from street crime to more organized
narcotics trafficking are accumulating significant amounts of real
estate and legitimate businesses.
In the past two years, Black gang members and their associates
from Los Angeles have been establishing "crack" distribution
outlets in numerous cities across the U.S. The LAPD nas
identified 47 cities, from Seattle to Kansas City to Baltimore,
where Los Angeles street gang traffickers have appeared.
Typically, these Black traffickers have identified markets and
transport 5 to 20 kilo shipments of cocaine from Los Angeles into
other cities, where it is converted into "crack" form. The base
of operations for these "crack" distribution networks is Los
Angeles and the profits from "crack" sales is returned here.
In 1988, there were 452 gang related homicides in Los Angeles
Murders
County, a 16.7% increase over 1987. The LAPD estimates that over
half of these homicides were drug related.
- 25 -
3.
Jamaican Posses/Criminals
An additional element in the rock cocaine business is the
presence of a substantial number of criminal aliens from
Jamaica. These Jamaicans tend to organize and associate in
groups known as Posses. They are significantly involved in
the operation of "rock houses" and have been known to recruit
and employ black gang members to operate the houses and to
provide security. The Jamaican Posses represent part of a
national drug crime problem which is principally distinguished
by ready recourse to brutal violence against whole families,
especially with automatic weapons, which makes the violence of
the street gangs pale in comparison. In the Los Angeles area
Jamaican Posse members number about 400, and they control a
significant fraction of the "rock" traffic in the Los Angeles
area.
Not much is known about the structure of the local
Jamaican criminal groups, due in part to the difficulty of
infiltrating their operations with undercover officers. In
other parts of the country the Jamaican criminal organizations
are affiliated with the geographical locations in Jamaica from
which the members migrated. There is also a perceived
connection between the Posses and the major political parties
- 26 -
in Jamaica. In some documented instances there has been a trade
of drugs for weapons, which weapons have been sent back to Jamaica
and used in the electoral campaigns.
C. Heroin
In the Central District of California heroin has been
supplanted by cocaine, and especially "rock" cocaine, as the
primary drug of abuse. Nevertheless, there is a relatively stable
population of approximately 100,000 heroin users in the general
area. Heroin is found in three primary forms: Southeast Asian
white heroin, which is generally found in purities of 90% or
more, and two varieties of Mexican heroin, which are generally less
pure. Mexican brown heroin makes up a large amount of the total
volume, and is commonly found in concentrations of up to 40-45%.
In the past five years, a newer type of Mexican heroin, Black Tar,
has come to be the most commonly available type, with purity in
the 60-70% range, although it has been found with a purity of
93%. There has been an alarming increase in quantities of heroin
coming into Los Angeles from Southeast Asia. Recently, for
example, 70 pounds of heroin was seized at LAX coming in from
Southeast Asia.
- 27 -
Statistics indicate that heroin is enjoying a comeback as a
drug of abuse. In 1987, Los Angeles health officials noted that
heroin treatment admissions were five times greater than cocaine
admissions. There was an 86% increase in heroin overdose deaths
between 1984 and 1986, and a 105% increase in the number of heroin
related emergency room admissions in that same time-span.
The prime heroin distribution organizations in the Central
District of California are Mexican and Asian. There is a presence
of Sicilian LCN heroin traffic, but not in the volumes that are
common in the Mexican and Asian groups.
1.
Mexican Heroin Organizations
To a greater degree than is encountered in other drug
smuggling and distribution networks, the Mexican heroin
organizations rely upon extended family connections, many of
whose members continue to live in the neighboring source
country of Mexico. It is common for the entire trafficking
enterprise, from poppy cultivators to street distributors, to
be related by blood or marriage. In one notable example in
this area, the Sanchez-Carranza organization relies upon
family relatives living in the mountainous regions of Durango,
Mexico to cultivate the opium poppy fields, harvest the
twice-a-year crop and send it to other family members in
Mexico who process the opium gum into heroin. This heroin is
- 28 -
then sent by couriers (also family members in many cases)
across the border and up to the rural areas where the American
branches of the extended family live on farms and ranches in
the eastern part of the district. The processed heroin is
then distributed in small amounts to trusted customers and
sub-distributors throughout California and into the
neighboring states of Washington, Idaho, Arizona and Nevada.
The Sanchez-Carranza organization deals in both Mexican brown
and Black Tar heroin.
The organization enjoys protection from corrupt law
enforcement officials, primarily in Mexico, and also uses
business concerns owned by family members or associates to
launder profits derived from the sale of heroin.
Drug Enforcement Administration intelligence indicates
that Black Tar heroin is also being manufactured by
independent family organizations in Sonora, Sinaloa and
Guerrero states. Declines in the price per kilogram of Black
Tar heroin from $150-180,000 in 1985 to $110-140,000 in 1989
indicates a growing availability of the drug despite
enforcement efforts.
- 29 -
2.
Asian Heroin Organizations
Much less is known about the structure and organization
of the Asian heroin trafficking groups operating in the
Central District of California. This is due in large part to
the difficulty of penetrating most Asian communities with
undercover officers, aggravated by the language barrier.
Wnile Spanish-language qualified agents are not uncommon in
this area, officers who are fluent in Chinese, Japanese, Thai
or Korean are much less common. Another complicating factor
is the bond of secrecy which characterizes many of the
criminal organizations in the Asian communities.
By far the most frequently encountered Asian heroin
trafficking groups involve Thai smugglers and distributors
which obtain their heroin, exclusively southeast Asian white
heroin, from the Golden Triangle area of Laos, Thailand, and
Burma. DEA has established well-staffed posts in Thailand in
recognition of this fact, and relations with Thai police
officials are generally very good and cooperative. The volume
of ship and air traffic between Thailand and Los Angeles is
substantial, and several major (30 pounds or more) heroin
seizures have been made in the past few years.
- 30 -
Because of the relatively high value of white heroin (as
much as $10,000 per ounce), small shipments in mail or
packages has become a common and difficult-to-detect method of
introducing heroin into the country.
There do not seem to be many long-term, structured groups
involved in smuggling Asian heroin into the United States.
The groups that do engage in heroin smuggling are
conspiratorial associations that form for that purpose and do
not tend to stay intact afterward. There are some exceptions
to that rule; some have continued to operate, using the same
source of supply and the same couriers and distributors,
replacing those who are captured. There is also evidence that
some of the Chinese organized crime organizations, notably Wah
Ching and United Bamboo, are involved in the heroin traffic in
Los Angeles.
D. Phencyclidine (PCP)
The Central District of California is the main production
point for PCP in the United States. PCP manufactured here is
shipped to every part of the country. Estimates suggest that 80%
of the PCP found in this country originates in the Los Angeles
area.
- 31 -
The chemical process of manufacturing phencyclidine is
relatively simple and setting up a laboratory to make it is easy,
if somewhat dangerous. Investigative experience shows that, like
"rock" cocaine manufacturing and sales, the PCP traffic is
dominated by Blacks in this area. Some of the same gangs that are
involved in "rock" cocaine dealing got their start in PCP
groupings and moved to "rock" because it is easier and safer to
make and distribute.
There does not appear to be much in the way of structure,
other than conspiratorial association, in the case of most major
PCP manufacturing operations in the Los Angeles area. There is
some evidence that, in the case of one of the most important PCP
manufacturers in this area, a family network is used to distribute
the finished PCP in far-away locations such as New Orleans,
Washington, D.C. and Oklahoma City. Criminal associates from
street gangs are used to distribute PCP and to provide security
for the operations, but there is no clear link between organized
gangs and the manufacturing or distribution operations. Los
Angeles Police Department intelligence sources reveal that five
major identified black street gangs are involved in manufacturing
and selling PCP. In most instances, they sell PCP, use the money
to buy cocaine and then sell the cocaine.
- 32 -
E. Cannabis (Marijuana and Hashish)
As noted above, the 350-mile stretch of coastline which
comprises the western border of the Central District is
unprotected and vulnerable to organized smuggling activity. Over
the past decade, several large-scale smuggling organizations have
taken advantage of this vulnerability to import multi-ton
quantities of marijuana from source countries in Latin America
(Colombia and Mexico) and Asia (primarily Thailand). These and
other organizations have also smuggled large amounts of hashish,
which origniates mainly in Afghanistan and Pakistan, into this
District.
According to former members of these smuggling enterprises, it
is not uncommon to have major marijuana or hashish loads handled
by a syndicate of smugglers, boat owners, financiers and
distributors, who meet and plan a venture from the acquisition of
the drug to the bulk distribution on the west coast. These
syndicates are loose-knit associations of persons known to each
other, who have been involved in narcotics trafficking for many
years and who have a network of relationships, business and
social, which bind them together. The membership of the syndicate
for any particular smuggling venture will vary considerably, but
is generally drawn from the same pool of traffickers and
investors, all of whom are known to each other, making penetration
by law enforcement very difficult.
- 33 -
The marijuana and hashish smuggling syndicates are organized
around a specific load and are vertically integrated. The leader
of the venture will contact investors who will put up from several
hundred thousands to a million dollars or more to buy the drugs
(These "syndicates" operate almost exclusively with Asian sources
of supply) and to meet the expenses of buying a suitable vessel
and other necessary equipment and facilities, such as
communications equipment, warehouses, off-load boats, and trucks.
When financing has been fully arranged, the syndicate leader then
Bargen
uses his contacts in the source country to
"kick"
a load out for
shipment. It is also common for the vessel that will carry the
drugs to this country to be captained and crewed by other members
of the conspiracy. When the loaded vessel approaches the western
coast of the United States, several methods of delivery are
possible. In some cases, the vessel will proceed to a sheltered
docking area where the drugs are off-loaded directly by the
waiting off-load crew. These people may be members of the
syndicate, or they may be specialists who are hired simply for the
task. An alternative method is for the load vessel to rendezvous
with several smaller fishing-type boats hundreds of miles off the
coast and transfer the load at sea. Those smaller fishing boats
can then proceed to shore to off-load the drugs. An intermediate
method is for small, fast inflatable boats to meet the load vessel
a few miles off-shore and make several swift off-loading runs. In
- 34 -
each case, once the load of marijuana or hashish is ashore, it is
usually taken to a warehouse location and broken down into smaller
quantities for distribution across the country.
The primary attraction for these smuggling syndicates is the
high profit-to-risk ratio that these operations present.
Marijuana and hashish are generally viewed as "soft" drugs;
Jorgen
nowhere near as dangerous to the public as cocaine, heroin or
PCP. The jail sentences that have historically been handed down
for marijuana-type offenses are not severe, although there has
been some improvement in that area recently. The amount of money
to be made is huge -- marijuana, which can be bought for $5-10 per
pound from the grower, and can be purchased from brokers in the
source country for $10-35 per pound, will sell at wholesale in the
United States for $850-1,300 per pound. The quantities involved
in marine smuggling from Asia typically are in the range of 20-50
tons, having a wholesale value of tens of millions of dollars.
On the west coast, there are no "choke points" such as exist
in the Caribbean, and the risk of capture is correspondingly
small. Interdiction efforts rely to a very large degree upon
intelligence gained in advance of a load vessel's arrival, and the
long lead-time involved in a trans-Pacific passage increase the
chances of losing touch with the vessel. Finally, the entire west
coast, with major ports at San Diego, Long Beach, Los Angeles, San
- 35 -
Francisco, Portland and Seattle, is available for exploitation, a
fact which dramatically increases the difficulty of successful
interdiction.
In addition to the threat posed by marijuana and hashish
smuggling organizations in Latin America and Asia, there is the
domestic marijuana harvest which must be considered. Anecdotal
information indicates that marijuana may be the largest single
cash crop produced in a state which is one of the major
agricultural economies in the country. While most of the actual
cultivation occurs in the northern and eastern part of the state,
outside of the Central District, the major market of Los Angeles
continues to attract larger quantities of marijuana, particularly
sensemilla, which, because of its more concentrated psychoactive
element, THC, is both more expensive (up to $4,000 per pound at
retail) and more dangerous.
III
MONEY LAUNDERING OPERATIONS
As noted above, because there is SO much of a consuming market
for the entire range of drugs that are manufactured or smuggled
into the Los Angeles area, there is an ocean of drug-tainted cash
in the greater Los Angeles area. Although any estimate of just
how much drug money accumulates at any one time would necessarily
- 36 -
Cash
be guess-work, there are some anecdotal indications that the total
must be reckoned to be in the billions. In the quarter ending
September 30, 1988, the Federal Reserve cash surplus in Los
Angeles ($3.8 billion) was the largest in the nation and for the
first time, surpassed the cash surplus in Miami.
Several years ago the total value of the illegal drug business
was estimated to be in excess of $80 billion a year. Los Angeles
is, by most estimates, the drug consumption capital of the
country. It is also a major bulk distribution center for cocaine
and PCP.
The Rivera-Ramirez organization, described above, handled over
$70 million in drug cash in a 7-month span - a $120 million annual
handle for a 7-member group in 1981. At that time, a 115-pound
seizure was the largest ever. Currently, seizures of 5 to 10
times that size are occurring on a regular basis - many times each
year.
A single undercover money-laundering operation in Los Angeles,
Operation Pisces, resulted in the seizure of almost $50 million in
cash and assets. Evidence revealed that the cocaine trafficking
organizations involved in the case were laundering $17 million in
cash a week, or nearly $1 billion annually. At a point during the
course of that operation, when the undercover operation was
temporarily not handling money, reports circulated that there was
- 37 -
in excess of $300 million in drug money in the Los Angeles area
requiring laundering. So great was the volume of business, both
actual and potential, that another full-scale undercover
laundering operation moved from the east coast to the Los Angeles
area and began laundering money at the same time, with some of the
same customers.
Several different techniques have been used by drug
traffickers in an effort to move the money generated by drug sales
out of the United States and away from the possibility of loss
through seizure. As enforcement techniques have improved, the
traffickers have developed different strategies to cope with the
problem.
1. Bulk Movement of Cash.
A risky but efficient method of transferring narcotics
cash out of the country, to the source country (generally
Mexico or Colombia) or to a third country, usually one with
strict bank secrecy laws, is simply to pack it in a box or
luggage and send or carry it out by common carrier or charter
carrier, or by clandestine carrier. Another possibility is to
drive across the land borders. All of these methods have been
tried and have met with both success and failure.
- 38 -
The major risk factors involve random cargo or luggage
searches, either outbound or at Customs in the destination
country. Provisions of United States law make it unlawful to
transport large amounts of currency out of the country without
declaring it, which traffickers generally try to avoid. The
currency control laws of some source countries, most notably
Colombia, also pose a risk of loss for large-scale transfers.
2.
Bank Transfers.
The most popular method of laundering large amounts of
drug currency at the present time is to arrange for an
accommodating bank to accept larye deliveries of cash into
accounts and then to have the bank wire transfer the money to
a correspondent bank in the source or shelter country for
conversion into the currency of that country. The major
problem for the drug trafficker is the creation of an audit
trail, beginning with the forms required to be filed by the
first bank where the cash is deposited, and ending with the
wire transfer audit document. To meet that problem the drug
dealers would look for a "crooked bank" which would not file
the required forms in exchange for a bribe or the volume of
business. In several cases, undercover officers were able to
pose as persons who could arrange for a "crooked bank" to take
the drug money without reports. In Operation Pisces the
masquerade was so successful that the criminals not only
- 39 -
brought huge amounts of cash to the undercover location, where
they counted it on closed circuit television, but they also
became talkative about their business and associates, and
furnished much of the information needed to convict them and
their associates.
The undercover operation was able to identify "secret"
accounts in Panamanian banks to which the laundered funds were
wired, and at the conclusion of the case over $12 million in
drug money was seized from those accounts by the Panamanian
Government.
3.
Business Establishments.
In a recently-concluded investigation, a group of
jewelery merchants working out of the Los Angeles Jewelery
Mart was discovered to be engaged in laundering over
$1 billion in the past year for several narcotics trafficking
organizations. The laundering mechanism involved the use of
numerous subsidiary jewelry businesses to disburse the huge
amounts of cash that were delivered in boxes during the
business day. False business transactions were documented to
nide the receipt of cash, and amounts of currency were
ostensibly used to purchase large amounts of gold bullion from
Uruguay through a refining company in Miami. In fact, no gold
- 40 -
was purchased or shipped. The scheme involved the collection of
narcotics cash in a number of cities, with the cash then being
shipped by courier to Los Angeles to be laundered and returned
through the banking system to the drug traffickers.
IV
CONCLUSION
The structure and operation of drug trafficking organizations,
0
including money laundering organizations, can only be
generalized. There are a large number of such organizations
operating in the Central District of California, and there are
many subtle variations in their methods of doing business. The
only reliable source of specific tactical information about a
particular drug trafficking organization will be the intelligence
base of the law enforcement agency most directly concerned with
investigating and neutralizing it. This report seeks to provide a
coherent overview of the drug situation in 1988-1989 as seen from
the perspective of the U.S. Attorney's Office, taking into account
the observable history and development of the type of
organizations which best express that situation.
- 41 -
SENSITIVE - NOT FOR PUBLIC DISCLOSURE
APPENDIX A¹/
Major Cocaine Trafficking Organizations - Los Angeles Area
Organization Name
Agency
1. Ochoa-Vasquez
DEA/FBI
2. Escobar-Gaira
DEA/FBI
3. Felix-Gallardo
DEA
4. Rodriguez-Gacha
DEA/FBI
5. Matta-Ballesteros
DEA/FBI
6. Suarez-Gomez
DEA
7. Rocha-Suarez
DEA
8. Contreras-Subias
DEA
9. Caro-Quintero
DEA
10. Quintero
DEA
11. Santacruz-Londono/Rodriguez-Orjuela
DEA/FBI
1/ The organizations identified in this appendix represents a
collation and compilation of intelligence data provided by the
Federal Bureau of Investigation and the Drug Enforcement
Administration in 1988.
- 42 -
SENSITIVE - NOT FOR PUBLIC DISCLOSURE
APPENDIX A (Continued)
12. Cardona
DEA
13. Cuervo/Cano
DEA
14. Avila
DEA
15. Villabona/Bennett
DEA
16. Moncada
DEA
17. Koth
DEA
18. Hernandez
DEA
19. Palacio
DEA
20. Perez
DEA
21. Ramos/Herrera
DEA
22. Mesa
FBI
23. Renteria
FBI
24. Dane
FBI
25. Reeder
FBI
(714)759-9768 LAR rept. Doarge Country
fan former Cory from Calif
Nate Comor. Newber
for-reaching legislative (Lange/Blessey) triumph April
21, 1989
Billin St panced He Comprehopise Char Control Act f 1984 [RANCH
3:30 p.m.
DOC]
PRESIDENTIAL REMARKS:
RANCHO DEL RIO
thats what alter us
ORANGE COUNTY, CALIFORNIA
TUESDAY, APRIL 25, 1989
to the assets, &
12:15 P.M.
contribute to law
enforcement
Thank you, Attorney General Thornburg. It's good to be
here. And I'm honored to be joined by Governor Deukmejian;
Senator Pete Wilson; Mike Hayde; Commissioner Willie Von Raab;
Sheriff Gates; and somewhere out there, are 50 special agents and
undercover detectives. Unsung heroes -- risking their lives,
every day, behind enemy lines. You know who you are. And we
salute you.
All of you here today are fighting some of the toughest
battles -- with the biggest population of users -- in the largest
and toughest drug market in the country. Somebody dies every
other day in Orange County from drugs. They've ranged in age
from 82 years old
to two years old.
But you're not backing down, or giving up. The communities
of Orange County have united. Law enforcement agencies have
banded together. Your example is one of hope, determination, and
pure American spirit.
We won't Build a Better America until we win the war on
drugs. So today I want to touch on both sides of the equation:
education, to cut off demand for drugs; and enforcement, to cut
off the supply.
2
Demand for drugs is driven by hopelessness. Last year an
18-year-old member of the LA "Crips" gang was asked, "If you
could change the world, how would you do it?" He said, "I
wouldn't know what to do
I would not know what to change."
Later, they asked him, "What do you think you'll be doing in ten
years?" He said, "I don't think I'll be alive in ten years."
That is a life without hope -- without meaning. A life that
ended before it began. We're looking at a desperation that money
alone will never cure. We won't win this one with our wallets
alone -- we will only win it through our efforts, and our will.
And that means education -- reducing demand, through
community involvement at all levels. Mike Hayde, Sheriff Gates,
and so many others: Your "Drug Use is Life Abuse" program is one
outstanding community awareness effort. You've got business,
government, schools, religious groups, families, and law
enforcement -- all personally committed to halting demand.
There are the students, who produced the anti-drug video
that runs before every movie in town. The workers who roll by on
sanitation trucks with signs saying "Drugs are Garbage." Every
L.A. Ram with a "Drug Use is Life Abuse" patch on his uniform.
Over 22,000 student athletes on teams in Orange County, who will
wear the same patch. And all of the students, distributing tens
of thousands of cards for people to sign away their interest in
drugs. I'm going to proudly sign one of those cards.
But among the many who are getting the word out, I'd like to
enlist one other group in the L.A. area, that has a special
3
responsibility: those in the entertainment industry.
Television, films, and music are a powerful influence. Use that
influence wisely -- to do good. I know that many in the business
are already concerned and active. But entertainers have the eyes
of a young world upon them -- and must do more.
You have raised your voices so effectively, in the cause of
SO many issues. Can you not raise them once more, in support of
a cause so important? In the work you do -- and the lives you
lead -- help us send a strong message, the right message, to a
new generation of Americans: There is no glamour in drugs.
I recently got a letter from a young woman who knows that
only too well. She wrote, "I have a brother who has wasted time,
opportunity, and finally his mind. I have watched my mother and
father cry and spend years of energy and effort on their addicted
son instead of themselves. I hate drugs. Drugs have virtually
destroyed my family." She deserves better. We all do. And we
must destroy those who traffic in drugs -- with the strongest
means of enforcement we can devise.
Many of you know the history of the ground we stand on.
Danny James Fowlie once owned this land. Made it the core of an
international drug smuggling and money laundering operation.
Used this ranch as a base for one of the largest drug networks in
the country.
Fowlie only dealt with distributors handling dope by the
ton. The man had commercial packing equipment, underground
storage vaults, large vans with hidden compartments, jet
Drug tripficker like D,F who like tendal
vicious bots of the middle ages control their empires through
reprisol of death white they enjoy the
country like hxury such br this.
appearance estate 07 legitimate (besiness) enterprise surrounded by
BLt b/c E, know you know how to
sttock the other 170 mops (dope dealer) and
Stosh honors Dnd money lounderers that make
up drog arganizations that deal death to OUT
kids
4
aircraft, ocean-going vessels. Today, he's got only one thing:
no future.
He's in a Mexican jail now. And we don't know how well he
slept after the tortuous murder of DEA Special Agent Enrique
Camarena -- but he won't sleep here again.
Rancho del Rio has been reclaimed. It's the first piece of
forfeited drug-lord property turned over. for use by local
officials. It's now going to serve as an International Narcotics
Training Center -- and as a reminder to these merchants of death:
Your money won't help you. In fact, we're going to use it
against you.
What you see on this table here, is over $4 million of
laundered drug money, recently seized by U.S. Customs and the
Sheriff's Department here in Orange County, in "Operation Shakel
[SHAY-kel]." Today I'd like to formally turn these funds over to
Sheriff Gates, to fund the Rancho del Rio project.
I'm also pleased to present another $6 million in drug money
-- confiscated through a sting operation in Arizona -- to fund
more effective, cooperative efforts between state and federal
enforcement agencies.
These funds -- totalling $10 million -- are the spoils of
defeated drug criminals. You've earned them. And you know how
to put them to good use, to stop other drug criminals.
You've had outstanding results over the last two years, in
the Regional Narcotics Suppression Program -- thanks to the team
efforts of state and federal agents. Nearly $40 million in cash,
offinent surroundings
crystal doted from lote 1800s from the Russian CENCO
country estate
if D truck broke, jLBY but new are
expensive fishing equipment
Indian actificts of tremeslows rolie
while planning starture st Kike
mother of dinging sents 25
5
confiscated. The equivalent of 9 million injections of heroin,
and 38 million doses of cocaine seized. That's 16 doses for
every man, woman, and child in Orange County.
Let these funds go to fighting the war they once financed.
Let us raise awareness -- and build strength -- through a
constellation of concerned Americans, in every town, city, and
community in this country. And let us send a message, loud and
clear, to every drug merchant in America: you're out of
business.
Thank you. God bless you. And God bless the United States
of America.
U.S. CUSTOMS SERVICE
Office of the
U.S.CUSTOMS
THE DEPARTMENT OF THE
TREASURY
Assistant Regional
THE DEPAR or
Commissioner
for Enforcement
1789
SPECIAL AGENT
Pacific Region
Los Angeles, CA.
FAX Numbers - FTS 798-0598 or 798-0653, Commercial - (213)-894-0598 or 0653
Message Center (Voice) - FTS 798-3904, Commercial - (213) 894-3904
Date:
4/24/89
From:
AWALLS, uses,Los Angeles
To:
Stephaned BLESSEY
Office:
White House Stoff
Phone:
Def#: 202/456-6218
Page Count:
(Includes Transmittal Page)
Message Number:
2 10110
Time Received In RCC:
RECEIVED-TR
SUT 336
24 APR 1989
REGIONAL CONKING CENT
LOS ANGELES IFORMA
Time Transmitted:
** 200 PAGE **
TREASURY
UNITED STATES GOVERNMENT
DEPARTMENT OF THE TREASURY
Memorandum
UNITED STATES CUSTOMS SERVICE
DATE: April 24, 1989
TO: Stephanie Blessey
White House Staff
FROM: Deputy Assistant Regional Commissioner
(Enforcement)
Pacific Region
SUBJECT: Status of Fowlie and Asset Sharing of Real Property
Steven Walker, the Assistant Legal Attache' for the F.B.I.
orally advised me that Daniel Fowlie was arrested in June 1987
and has been in custody since. Mr. Walker further advised that
as of two weeks ago, the Attorney General of Mexico advised him
that Fowlie was physically in a penitentiary awaiting extradition.
Fowlie has filed a legal document which has recently delayed that
extradition.
Fowlie's real property is not the first in the nation to be
turned over under asset sharing with a local law enforcement,
but is the first in Orange County and is the first in the
country to be shared with local law enforcement that will be
used for a law enforcement training center.
ALAN Challs D. WALLS
APR-20-1989 16:21 FROM
TO
1-202-456-6218
P.01
SHERIFF-CORONER DEPARTMENT
COUNTY OF ORANGE
CALIFORNIA
BRAD GATES
SHERIFF-CORONER
TELECOPY TRANSMITTAL SHEET
DATE: 4/20/89
TIME: 5:14 p.m.
11
NUMBER OF PAGES:
TO:
Steph Blessey
NAME
LOCATION
PHONE NUMBER
FROM:
Sheriff Brad Gates
NAME
Orange County Sheriff-Coroner Department
LOCATION
(714) 647-1800
PHONE NUMBER
last 2yrs. in Drange
MESSAGES:
These are some examples of the 401 deaths. / County
IF THERE ARE ANY QUESTIONS, PROBLEMS OR YOU DON'T RECEIVE ALL OF THE PAGES
CALL (714) 550-9223
550 N. FLOWER STREET
P.O. BOX 449
SANTA ANA, CALIFORNIA 92702
(714) 647-7000
SHE 52 (R11/88)
APR-20-1989 16:21 FROM
TO
1-202-456-6218
P.02
A 31 YEAR OLD MALE
CARPENTER
OVERDOSED IN SANTA ANA
DUE TO THE COMBINED
EFFECTS OF COCAINE AND
MORPHINE.
A 31 YEAR OLD MALE
SALESMAN
OVERDOSED IN SANTA ANA
DUE TO THE COMBINED
EFFECTS OF COCAINE,
MORPHINE AND CODEINE.
APR-20-1989 16:22 FROM
TO
1-202-456-6218
P.03
A 26 YEAR OLD MALE CAR
SALESMAN DIED AS A RESULT
OF A TRAFFIC ACCIDENT
WHEN THE PICKUP TRUCK HE
WAS DRIVING HIT A FIXED
OBJECT IN WESTMINSTER.
COCAINE AND PRESCRIPTION
DRUGS WERE PRESENT IN HIS
SYSTEM
A 19 YEAR OLD MALE
DELIVERYMAN DIED FROM
INJURIES RECEIVED IN A
FALL FROM THE UPPER
LEVELS OF A SPORTS
STADIUM IN ANAHEIM.
COCAINE WAS PRESENT IN
HIS SYSTEM.
APR-20-1989 16:22 FROM
TO
1-202-456-6218
P.04
A 39 YEAR OLD WELDER DIED
AS A RESULT OF A TRAFFIC
ACCIDENT WHEN THE AUTO
HE WAS DRIVING COLLIDED
WITH A PICKUP TRUCK IN
COSTA MESA. COCAINE,
MORPHINE AND CODEINE
WERE PRESENT IN HIS
SYSTEM.
A 27 YEAR OLD FEMALE
HOMEMAKER DIED OF AN
OVERDOSE OF
COCAINE IN FULLERTON.
APR-20-1989 16:23 FROM
TO
1-202-456-6218
P.05
A 25 YEAR OLD FEMALE
MACHINIST
OVERDOSED IN SANTA ANA
DUE TO THE COMBINED
EFFECTS OF COCAINE,
MORPHINE AND CODEINE.
A 35 YEAR OLD FEMALE
SECRETARY
OVERDOSED IN GARDEN
GROVE DUE TO THE
COMBINED EFFECTS OF
MORPHINE AND CODEINE.
APR-20-1989 16:23 FROM
TO
1-202-456-6218
P.06
A 26 YEAR OLD FEMALE
RETAIL CLERK DIED OF AN
OVERDOSE OF
COCAINE IN PLACENTIA.
A 34 YEAR OLD MALE
MANUFACTURING LEADMAN
OVERDOSED
IN SANTA ANA DUE TO THE
COMBINED EFFECTS OF
COCAINE, MORPHINE AND
CODEINE.
APR-20-1989 16:24 FROM
TO
1-202-456-6218
P.07
A 28 YEAR OLD MALE
GENERAL LABORER
OVERDOSED
IN SANTA ANA DUE TO THE
COMBINED EFFECTS OF
COCAINE, MORPHINE AND
OTHER DRUGS.
A 35 YEAR OLD MALE
PAINTER
OVERDOSED
IN LAGUNA HILLS DUE TO
THE COMBINED EFFECTS OF
COCAINE, MORPHINE AND
OTHER DRUGS.
APR-20-1989 16:24 FROM
TO
1-202-456-6218
P.08
A 40 YEAR OLD FEMALE
FASHION CONSULTANT
OVERDOSED
IN SANTA ANA DUE TO THE
COMBINED EFFECTS OF
MORPHINE AND CODEINE.
A SANTA ANA INFANT WAS
DELIVERED STILLBORN WITH
A FATAL LEVEL OF COCAINE
IN ITS SYSTEM DUE TO
MATERNAL COCAINE INTOX-
ICATION.
APR-20-1989 16:24 FROM
TO
1-202-456-6218
P.09
A 26 YEAR OLD MALE
COMMODITIES BROKER DIED
OF AN
OVERDOSE OF COCAINE IN
LAGUNA HILLS.
stop
APR-20-1989 16:25 FROM
TO
1-202-456-6218
P.10
A 1 MONTH OLD MALE INFANT
DIED IN COSTA MESA OF
COCAINE INTOXICATION. IT
REMAINS UNDETERMINED
HOW THE COCAINE WAS
INTRODUCED INTO THE
INFANT'S SYSTEM.
stop
APR-20-1989 16:25 FROM
TO
1-202-456-6218
P.11
A 27 YEAR OLD MALE BOAT
REFINISHER DIED OF AN
OVERDOSE OF
COCAINE IN PLACENTIA.
TOTAL P.11
APR-24-1989 11:14 FROM
TO
1-202-456-6218
P.01
SHERIFF-CORONER DEPARTMENT
COUNTY OF ORANGE
CALIFORNIA
BRAD GATES
SHERIFF-CORONER
TELECOPY TRANSMITTAL SHEET
DATE: 4/24/89 TIME: 12:07 NUMBER OF PAGES:
TO: Stephanie Blessey NAME
LOCATION
PHONE NUMBER
FROM: Sheriff Brad NAME Gates
Orange County LOCATION sheriff
(714) 647-1800 (714)
PHONE NUMBER
MESSAGES: on Fomlie
Verification on follow will
IF THERE ARE ANY QUESTIONS, PROBLEMS OR YOU DON'T RECEIVE ALL OF THE PAGES
CALL (714) 550- 9223
550 N. FLOWER STREET
P.O. BOX 449
SANTA ANA, CALIFORNIA 92702
(714)647-7000
SUE " (511/88)
APR-24-1989 11:14 FROM
TO
1-202-456-6218
P.02
CAO REVIEW
X
CONSENT
X
YES
Concur
NO
Do Not Concur
Exempt
TO: BOARD OF SUPERVISORS COUNTY OF ORANGE
CONTACT FOR INFORMATION
FROM: SHERIFF-CORONER DEPARTMENT
Raul Ramos,
Undersheriff
647-1801
PHONE
MEETING DATE
SUBJECT
SUPV. DIST.
Approval of Agreement with the Federal Government for Transfer
12-1-87
All
of Real Property Received from Federal Forfeiture Activities
SUMMARY OF REQUEST (Description for agenda)
The Sheriff-Coroner requests approval of the Agreement with the Federal Government to transfer
real property (Rancho Del Rio) received from federal drug forfeiture activities to the County
to be used for a training center and multi-use conference facility.
ADDITIONAL DATA:
The Federal Government has seized approximately 213 acres of property in Riverside County which
was used for illegal activities. On June 26, 1985 forfeiture action against the property com-
menced in the United States District Court for the Central District of California. After
numerous legal transactions the property is now available for transfer to the County of Orange.
The County, through its Sheriff, was instrumental in the investigation into the illegal
activities which formed the basis of the forfeiture action against the property. The
Shoriff recommends the property be accepted by the County, pursuant to the equitable sharing
P.. visions of the Federal Comprehensive Crime Control Act of 1984.
(Continued)
PREVIOUS RELEVANT BOARD ACTIONS ON THIS SPECIFIC ITEM:
None
FUNDING SOURCE(S)
CURRENT YEAR COST
ANNUAL COST
BUDGETED?
YES
NO
N/A
See narrative
See narrative
N/A
WILL PROPOSAL REQUIRE ADDITIONAL PERSONNEL?
CONSISTENT WITH BOARD POLICY?
&
NO IF YES, STATE NUMBER
PERMANENT
LIMITED TERM
YES
X
RECOMMENDED ACTION
NEW ITEM OR EXCEPTION
1. Approve the transfer of real property (Rancho Del Rio), Facility No. GA 1227, Parcel
No. 14, consisting of approximately 213 acres, from federal forfeiture activity to the
County of Orange, to be used for a training center and multi-use conference facility with
programs and activities for local, County, State and Federal law enforcement agencies.
2. Authorize the Clerk of the Board to execute the original and duplicate Acquisition Contract
on behalf of the Board of Supervisors and return the duplicate to GSA/Real Estate Division.
(Continued)
CONCURRENCES (If applicable)
ATTACHMENTS
General Services Agency
County Counsel
Agreement (Acquisition Contract)
Right-of-Way Map
11-22-87
Band Hots
DATE
AGENCY OR DEPARTMENT AUTHORIZED REPRESENTATIVE
BRAD GATES,
SHERIFF-CORONER
APR-24-1989 11:15 FROM
TO
1-202-456-6218 P.03
The Sheriff further recommends that the property be used as a training
center and sulti-use conference facility with programs and activities
available to local, County, State and Federal law enforcement
agencies.
As part of this Agreement, and after the County receives title to the
property, the County 1s required to reimburse the Federal Covernment
over a six (6) month period for the cost incurred by the United States
Marshal (approximately $385,000) in connection with its seizure and
maintenance. Cost reimbursement will be out of the Sheriff's Marcetic
Program, FUBU 1161.
An "all inclusive Trust Deed" for $218,000 is currently attached to
the Trust Deed. The status of this Trust Deed has not been
determined.
The County will pay or satisfy all State, county or local taxes that
have or will accrue on the property where exceptions may not be
available under law. In addition, the County will pay recording fees,
trust deed clearance fees, title insurance fees and all necessary
closing costs. GSA/Real Estate has estimated the value of Rancho Del
Rio at $1.2 million.
As referenced in the Agreement, in the event the County is unable to
use property as intended, the County would be required to sell the
property and use the proceeds in a manner consistent with the Federal
Guidelines. Comprehensive Crime Control Act of 1984 and the Attorney General's
(
The County is required to obtain all necessary legal approval for the
development of the property as a law enforcement facility within three
(3) years from the date of the contract. If the legal approval isn't
obtained within the three years, the County will sell the property for
"fair market value* and use the proceeds for County law enforcement
purposes.
Legal Requirements
Compliance with CEQA: Categorically exempt (Class 1) from provisions
of CEQA.
General Plan: This project is in conformance with the General Plan of
the County of Riverside.
RECOMMENDED ACTION: (Continued)
3. Direct the Auditor-Controller to reimburse the Federal Government
from PUBU 1161, in an amount not to exceed $385,000, for the cost
incurred by the United States Marshal in connection with the
seizure and maintenance of the property.
4. Direct the Auditor-Controller to issue additional warrants, from
FUBU 1161, as required for title insurance fees, reconveyance
fees, trustee's fees, and other related closing costs. The
warrants are to be issued in accordance with instructions from
GSA/Real Estate that adequate title has been obtained.
TO
1-202-456-6218
P.04
APR-24-1989 11:15 FROM
RANCHO,
RIVERSIDE ORANGE COUNTY
14
RANCHO 28 BORY. BDRY.
33
DIEGO COUNTY NAN
LINE
20
PARCEL 14.1:
ACCESS TO ORTEGA HWY. FROM PCL. 14 OVER
SECTIONS 29, 30, 32, 33 IN TOWNSHIP 7 SOUTH,
RANGE 6 WEST, S.B.B.M. AS SHOWN ON AMAP IN
62
BOOK 9. PAGE 15, RECORD OF SURVEY, IN OFFICE OF!
THE RECORDER OF ORANGE COUNTY, PER ESMT.
RECORDED IN BOOK 12412, PAGE 1259, OFFICIAL
RECORDS IN OFFICE OF SAID RECORDER AND
COUNTY (LOCATION NOT DEFINED).
MIS
SION
T7S
5
30
E
ORTEGA HIGHWAY
AREA OF PARCEL
14 . 213.56 ACRES =
REW
31
PER GOVERNMENT SURVEY
R7W
MAP ON FILE IN U.S. SURVEYOR
/
GENERAL'S OFFICE, SAN FRAN-
CISCO, NOV. 11, 1914.
VIEJO
36
P
SCALE: = 2000'
RANGE COUNTY ENVIRONMENTAL MANAGEMENT AGENCY - RIGHT OF WAY ENGINEERING
RIGHT OF WAY MAP - COMPILED FROM PUBLIC RECORDS
LD. NO.
E.O. NO.
JECT: RANCHO DEL RIO - GA1227-14
BY: SMH
CHKD. BY:
DATE: 5-18-87
EST.
REC. DATE:
D.R.
APR-24-1989 11:16 FROM
TO
1-202-456-6218
P.05
1
2
3
ACQUISITION CONTRACT
4
5
THIS AGREEMENT is entered into this
day of
6
1987, by and between the United States of America, hereby represented
by Robert C. Bonner, United States Attorney, Central District of
7
California, hereinafter referred to as "FEDERAL GOVERNMENT," and the
County of Orange, hereinafter referred to as "COUNTY."
8
RECITALS
9
I.
FEDERAL GOVERNMENT has seized approximately 213 acres of land
10
(Property), shown on Exhibit A, attached hereto, located in
Riverside County which Property was used for illegal activities.
12
II.
FEDERAL GOVERNMENT commenced forfeiture action against the
12
Property in the United States District Court for the Central
District of California on June 26, 1985. A Default Sudgment of
13
Forfeiture, condemning and forfeiting the Property to the United
States of America, was entered by the District Court on
14
October 9, 1985, and an Amended Default Judgment was subsequent-
ly entered by the Court on August 13, 1986. Subsequent thereto,
15
a Motion to Set Aside Default was filed in the action by an
alleged claimant to the Property. This Motion was denied by the
16
United States District Court. Subsequent to said denial, the
aforesaid alleged claimant appealed the denial of its Motion to
17
the United States Court of Appeals for the Ninth Circuit. This
appeal has been ordered dismissed by the Court,
18
III. COUNTY, through its Sheriff-Coroner, was instrumental in the
19
investigation into the illegal activities which formed the basis
of the aforesaid forfeiture action against the Property.
20
Pursuant to the equitable sharing provisions of the Comprehen-
sive Crime Control Act of 1984, COUNTY desires to have the
21
Property transferred in fee to COUNTY,
22
IV.
COUNTY plans to use Property as a law enforcement training
center and multi-use conference facility with programs and
23
activities available to local, County, State and Federal law
enforcement agencies. In the event COUNTY is unable to use
24
Property as such, COUNTY would sell Property and use the pro-
ceeds in a manner consistent with the Federal Comprehensive
25
Crime Control Act of 1984 and the Attorney General's Guidelines
in connection therewith.
26
NOW, THEREFORE, in consideration of these recitals and other consid-
27
erations herein set forth, it is agreed as follows:
28
1.
FEDERAL GOVERNMENT shall:
BS12/039
1.
11/17/87
APR-24-1989 11:16 FROM
TO
1-202-456-6218
P.06
1
A.
Execute and deliver to County of Orange, General Services
2
Agency/Real Estate Division, a properly signed, recordable
Quitclaim Deed in the form of Exhibit B, attached hereto,
3
conveying Property to COUNTY, when all demands due under
this contract have been deposited into COUNTY's escrow as
4
described in Clause 2C below. Such demands are more fully
set forth in Clauses 2D and 3A below.
5
B.
Record whatever documents may be necessary to establish
6
FEDERAL GOVERNMENT's title to Property, and to establish
its immunity from local taxation pursuant to California
7
Revenue and Taxation Code Section 5081 (a) during the period
of federal ownership.
8
2.
COUNTY shall:
9
A.
Pay to FEDERAL GOVERNMENT the sum equal to those costs
10
incurred by the United States Marshal in connection with
its seizure and maintenance of the Property, which sum
11
shall be paid within six (6) months after the delivery of
the Quitclaim Deed as provided in Clause 1(A), above.
12
As a separate matter unconnected with the transfer of the
13
Property referred to herein, COUNTY hereby states its
intention to enter into a contract with the FEDERAL GOVERN-
14
MENT to provide up to 15 beds, on a daily basis, in its
jail facilities, for prisoners in Federal custody, at a
15
flat rate of $60.00 per day, per bed, inclusive of booking
costs. The fee herein described shall be paid COUNTY as
16
compensation for the use of up to ten (10) beds per day,
but shall be paid irrespective of such use. FEDERAL
17
GOVERNMENT may use up to five (5) additional beds at an
additional daily charge of $60.00 per day, per bed.
18
B.
Prepare and deliver to FEDERAL GOVERNMENT for execution the
19
Quitclaim Deed covering the property rights to be conveyed
to COUNTY.
20
C.
Provide escrow services which services shall be performed
21
by COUNTY's GSA/Real Estate Division to assist in the
consummation of COUNTY's acquisition of Property.
22
D.
In addition to 2A above, pay those fees, charges and other
23
demands, necessary to accomplish the transfer of real
property contemplated herein. COUNTY will also pay, or
24
satisfy, all state, county, or local taxes that have
accrued, or will accrue, on the property, for which ex-
25
emption may not be available under applicable law.
26
B.
Pay recording fees, trust deed clearance fees, title
insurance fees, if such insurance is desired by COUNTY, and
27
all other closing costs relative to this transaction as
approved by the Manager, GSA/Real Estate Division.
28
11
BS12/039
2.
11/20/87
APR-24-1989 11:17 FROM
TO
1-202-456-6218
P.07
1
F.
Obtain all necessary legal approvals for the development of
Property as a law enforcement facility within three (3)
years from the date of this contract. If such legal
3
approvals are not obtained in that period of time, COUNTY
shall sell Property for fair market value and use the
4
proceeds, less ten (10) percent thereof which is to be paid
to the FEDERAL GOVERNMENT as set forth in subparagraph G
5
hereto, for COUNTY's law enforcement purposes. COUNTY
agrees to use its best efforts to consummate said sale
6
within four (4) years from the date of this contract. The
time limit stated herein is subject to extension upon
7
written agreement between the parties hereto. For purposes
of this agreement, the term "fair market value" is defined
B
as the sales price resulting from an arms-length trans-
action. The FEDERAL GOVERNMENT reserves the right to
9
approve the adequacy of the sale price, in the event that
said property is sold.
10
G.
Pay to FEDERAL GOVERNMENT ten (10) percent of the sale
11
price of the Property, if Property is not developed by
COUNTY as a law enforcement facility, and is, instead, sold
12
by COUNTY. The FEDERAL GOVERNMENT may waive or reduce the
amount of this payment if it is satisfied that the property
13
is sold to a non-profit law enforcement support group for
use solely for those purposes set out in paragraph IV
14
herein above.
1\
H.
If the property is sold for use as a law enforcement
facility the purchasers shall take title subject to any
16
encumbrances, liens, assessments, taxes, conditions,
covenants or restrictions of record or otherwise, together
17
with the added conditions that:
18
1. Within three (3) years after record title is trans-
ferred from COUNTY all work required to construct a law
19
enforcement facility satisfactory to COUNTY shall be
complete; and
20
2. Prior to the expiration of fifty (50) years after
21
completion of construction of the law enforcement facility
the grantees shall not use the Property, or allow it to be
22
used, for other than law enforcement purposes, as such are
determined by COUNTY.
23
The conveyance from COUNTY to a purchaser of the Property
24
shall contain the requirements specified in clauses (1) and
(2) above, and specify that violations of either condition
25
shall give rise in the COUNTY to an automatic reversion;
the conditions shall not be construed as conditions
26
subsequent.
27
3.
It is mutally agreed that:
28
A.
The sole obligations of the FEDERAL GOVERNMENT under this
contract are set forth in paragraphs 1.A and 1.B above.
BS12/039
3.
11/20/87
APR-24-1989 11:18 FROM
TO
1-202-456-6218
P.08
1
The FEDERAL GOVERNMENT shall have no financial obligation
of any kind under this contract.
3
B.
If COUNTY by its Manager, GSA/Real Estate Division, deter-
mines that, because of any title flaw, lien, encumbrance,
4
assessment, lease, (recorded or unrecorded), and/or taxes,
the quality of title to be conveyed is insufficient for
5
COUNTY purposes, said Manager may by written notice to
FEDERAL GOVERNMENT, terminate this contract. This right of
6
termination must be exercised by COUNTY prior to the
payment by it of any amount referred to in paragraph 2A
7
hereinabove.
8
c.
The obligations of the County of Orange under this contract
are subject to complying with the applicable requirements
9
of the Government Code of the State of California. It is
understood, however, that the Orange County Board of
10
Supervisors will forthwith authorize any necessary publica-
tion of a Notice of Intention to Purchase Property. If,
11
upon the hearing pursuant to said Notice of Intention to
Purchase Property, the Board of Supervisors of the County
12
of Orange shall determine that it is not in the public
interest to purchase Property, this contract shall become
13
null and void and the parties hereto shall be relieved of
all obligations hereunder.
14
D.
The various headings in this contract, the number thereof,
and the organization of the contract into separate sections
ORANGE COUNTY
and paragraphs are for the purposes of convenience only and
16
shall not be considered otherwise.
17
E.
All written notices pursuant to this contract shall be
addressed as set forth below or as either party may here-
18
after designate by written notice and shall be personally
delivered or sent through the United States mail.
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TO: FEDERAL GOVERNMENT
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TO: COUNTY
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Robert c. Bonner
County of Orange
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United States Attorney
GSA/Real Estate Division
United States Courthouse
P.O. Box 4106
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12th Floor
Santa Ana, CA 92702
312 North Spring Street
(714) 567-5003
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Los Angeles, CA 90012
11/31
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United States Marshal
Central District of California
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United States Courthouse
312 North Spring Street
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Los Angeles, California 90012
and
BS12/039
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11/17/87
AFR-24-1989 11:18 FROM
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1-202-456-6218
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County of Orange
Sheriff-Coroner Department
2
P.O. Box 449
(
Santa Ana, CA 92702
(714) 834-3000
4
4.
This contract includes the following, which are attached hereto
$
and made a part hereof:
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A.
Exhibit A - Map
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B.
Exhibit B - Quitclaim Deed
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BRANSE COUNTY
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F0192-210 (9/17)
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IN WITNESS WHEREOF, the parties have executed this contract the day and
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year first above written.
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FEDERAL GOVERNMENT
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UNITED STATES OF AMERICA
s
By
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Robert C. Bonner
United States Attorney
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B
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By United Julio Gonzales States Marshal
APPROVED AS TO FORM:
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County Counsel
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By
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RECOMMENDED FOR APPROVAL
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Sheriff-Coroner Department
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By Brad Mater
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RECOMMENDED FOR APPROVAL
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General Services Agency
Facilities & Real Property
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Real Estate Division
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BY Real Carolyn C Property Agent amain
to
SIGNED AND CERTIFIED THAT A COPY OF
COUNTY
THIS DOCUMENT HAS BEEN DELIVERED TO
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THE CHAIRMAN OF THE BOARD
COUNTY OF ORANGE
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By
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LINDA D. ROBERTS
Chairman, Board of
Clerk of the Board of Supervisors
of Orange County, California
Supervisors
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$
(NO OBLIGATIONS OTHER THAN SET FORTH HEREIN WILL BE RECOGNIZED.)
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B
BS12/039
11/20/87
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TOTAL P.10
Page data
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- d0173bbf98f67adf
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Document data
- ID
- 323152425
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- document
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"ocrText": "Originally Processed With FOIA(s):\nFOIA Number:\nS\nS\nFOIA\nMARKER\nThis is not a textual record. This is used as an\nadministrative marker by the George Bush Presidential\nLibrary Staff.\nRecord Group/Collection:\nGeorge H.W. Bush Presidential Records\nCollection/Office of Origin:\nSpeechwriting, White House Office of\nSeries:\nSpeech File Backup Files\nSubseries:\nChron File, 1989-1993\nOA/ID Number:\n13664\nFolder ID Number:\n13664-013\nFolder Title:\nRancho Del Rio 4/25/89 [OA 6263] [2]\nStack:\nRow:\nSection:\nShelf:\nPosition:\nG\n26\n18\n7\n5\nREPORT ON DRUG TRAFFICKING IN THE\nCENTRAL DISTRICT OF CALIFORNIA\nSubmitted by\nROBERT C. BONNER\nUNITED STATES ATTORNEY\nCENTRAL DISTRICT OF CALIFORNIA\n894-211311 1, Chief 1989 Mr. Jams of Narcotics ubloh\nMarch\nTABLE OF CONTENTS\nExecutive Summary\ni-vi\nReport on Drug Trafficking in the\nCentral District of California\n1\nI.\nINTRODUCTION\n1. The Los Angeles Area Drug Trafficking\nEnvironment\n2\n2. Historical Background\n6\nII.\nDRUGS OF ABUSE\nA. Cocaine\n11\nB. \"Rock\" Cocaine/\"Crack\"\n18\n1. \"Rock\" Manufacturing and Distribution\n20\n2. Street Gangs\n22\n3. Jamaican Posses/Criminals\n25\nC. Heroin\n26\n1. Mexican Heroin Organizations\n27\n2. Asian Heroin Organizations\n29\nD. Phencyclidine (PCP)\n30\nE. Cannabis (Marijuana and Hashish)\n32\nIII.\nMONEY LAUNDERING OPERATIONS\n35\n1. Bulk movement of Cash\n37\n2. Bank Transfers\n38\n3. Business Establishments\n39\nIV.\nCONCLUSION\n40\nAPPENDIX\n41\nREPORT ON DRUG TRAFFICKING IN THE\nCENTRAL DISTRICT OF CALIFORNIA\nEXECUTIVE SUMMARY\nThe Central District of California is currently on the front\nlines of the national battle against drug abuse and drug\ntrafficking. The past several years have seen an accelerating\ninvolvement of the Los Angeles area in all aspects of the\nnarcotics business -- smuggling, distribution, money-laundering\nand drug manufacturing. This report seeks to provide a\ncomprehensive overview of the present illegal drug situation in\nthis District, based upon models of typical trafficking\norganizations deduced from past and current investigations.\nGeography and demographic considerations contribute\nsignificantly to the drug problem in this District. There are\nseveral major ports and harbors and a number of international and\nlocal airports, all of which facilitate entry of contraband into\nthe District and which stretch limited law enforcement\nresources. The Central District is the most populous in the\ncountry, containing more than 14 million people, many of whom are\nof Hispanic extraction. This dense population base provides the\nnation's biggest market of drug consumers. The large number of\nHispanic communities provides an excellent cover for many of the\narea's drug traffickers, a large number of whom are Colombian or\nMexican. There is also a very large Asian population in the Los\nAngeles area which maintains contact with some of the more\nprominent Asian source countries for narcotics.\nCocaine is far and away the paramount drug problem facing law\nenforcement in this District. The way in which the problem grew\nillustrates how an area can become the center of trafficking\nactivity when enforcement pressure becomes too great in other\nareas. During the 1970s and into the 1980s, Los Angeles was\nprimarily a consumer market for cocaine. The major trafficking\norganizations dealt srictly with distributing cocaine smuggled\nin, mainly from Florida. As law enforcement efforts increased in\nSouth Florida, Colombian organizations began smuggling cocaine\ninto the Los Angeles area, through Mexico, for distribution from\nLos Angeles throughout the nation. The shift to Los Angeles as\nthe primary distribution center for the nation's cocaine occurred\nin about 1985. In 1984, federal and local law enforcement in Los\nAngeles seized approximately 2,000 pounds of cocaine. Total\nseizures of cocaine in Los Angeles exceeded 30,000 pounds in\n1988. The wholesale price per kilo dropped to $10,000 per kilo\nin Los Angeles last year, -- lower than anywhere else in the\ncountry, including Miami.\nii\n\"Rock\" cocaine (crack) has exploded into the most serious\npublic health problem, except perhaps for AIDS, in recent times.\nDue to the fact that it is easily produced from powder cocaine,\nis very addictive, and is relatively cheap, \"rock\" has beocme a\nmajor drug abuse problem, particularly in the inner city. The\ntrade in \"rock\" is controlled mainly by street gangs who fight\nviciously among themselves to preserve markets or to retaliate\nfor violations, commonly with automatic weapons in \"drive-by\"\nshootings. Fueled by the availability of cheap cocaine here, Los\nAngeles gangs have spread their influence to most major cities of\nthe west and midwest in a continuing search for new markets.\nAnother phenomenon associated with \"rock\" occaine is the\n\"rock house, \" a fortified, heavily defended residence from which\n\"rock\" is anonymously dispersed.\nHeroin, which a decade ago was believed to be receding as a\nthreat, appears to have re-emerged. Statistics reflecting\nincreased heroin abuse have increased over the past several\nyears. Heroin trafficking is encountered primarily among Mexican\nnarcotics\niii\ndealers, who sell Mexican brown heroin and the newer, stronger\nBlack Tar heroin, and Asian criminals, mainly Thai and Chinese,\nwhordeal is Asian White (No. 4) heroin. Some substantial\nseizures from vessels docking at local ports indicate that marine\nsmuggling is the major threat axis for Asian heroin, while the\nMexican heroin trade is mainly a family-dominate operation which\ngrows, harvests and processes opium poppies into heroin in\nseveral northern States of Mexico. That heroin is then smuggled\nacross the border into the United States in multi-kilogram lots\nfor sale in the Los Angeles area. The extensive use of family\nmembers by Mexican heroin trafficking organization makes them\nvery difficult to penetrate and investigate.\nPhencyclidine (PCP) is manufactured in greater quantity in\nthis District than anwhere else in the nation. As is the case\nwith \"rock\" cocaine, the manufacture of PCP does not require a\nsophisticated laboratory, although it is somewhat dangerous to\nmake. As is also the case with \"rock\" cocaine, there is\nsubstantial evidence that PCP made in Southern California is\nbeing shipped, in quantity, throughout the country, including to\nWashington, D.C.\niv\nThe largely-unprotected coast which makes up one border of\nthe District is extremely vulnerable to exploitation by marijuana\nand.hashish smugglers from South America and Asia. The\npopulation of the Los Angeles area is a major market for these\ndrugs. In some instances, hashish has been smuggled in through\nthe Ports of Los Angeles and Long Beach in cargo containers,\nwhich are numbered in the millions each year. The relatively few\nCoast Guard assets available to deal with this maritime smuggling\nthreat are hindered by the lack of natural channels or\ncheck-points such as are found in the Caribbean.\nMoney laundering is a rapidly-developing aspect of the\noverall drug situation in this District. In the past two years,\ntwo nighly successful undercover law enforcement operations have\ngiven some indication of the size of the drug market in Los\nAngeles. In 1987, Operation Pisces netted almost $50 million in\ncash and assets seized -- a comparable amount was laundered back\nthrough Panamanian banks to Colombian traffickers. A\nrecently-concluded investigation documented the use, by narcotics\ntraffickers, of Los Angeles jewelry dealers in a laundering\noperation which handled over $1 billion in narcotics money since\n1986.\n>\nThe Central District of California serves as a microcosm of\nthe national drug dilemma. Every significant drug-related\nproblem seems to thrive in this environment. The District\nfeatures embedded smuggling and distribution networks,\n- laundering schemes in profusion (due in part to the fact\nthat this is the principal distribution center for Colombian\ncocaine), drug consumption on a huge scale, manufacturing\noperations, organized criminal activity and violence. It also\nfeatures some of the longest-lived and most successful examples\nof law enforcment cooperation and demand reduction programs.\nvi\nREPORT ON DRUG TRAFFICKING IN THE\nCENTRAL DISTRICT OF CALIFORNIA\nSubmitted by\nROBERT C. BONNER\nUNITED STATES ATTORNEY\nCENTRAL DISTRICT OF CALIFORNIA\nThis report seeks to describe the present state of knowledge\nof law enforcement agencies regarding the nature and extent of\ndrug trafficking activities in the Central District of\nCalifornia. The approach used is to describe the drug trafficking\nproblem in terms of (1) drugs, (2) organizations and\n(3) activities.\nThe Central District covers most of Southern California,\nincluding the counties of Los Angeles, Orange, Riverside, San\nBernardino, Ventura, Santa Barbara and San Luis Obispo. It is the\nmost populous district in the nation with over 14 million people\nand is separated from Mexico by the two California border\nCounties, San Diego and Imperial. The entire metropolitan Los\nAngeles area is contained within the Central District.\n- 2 -\nINTRODUCTION\n1. The Los Angeles Area Drug Trafficking Environment\nLos Angeles presents a unique and uniquely vulnerable target\nto prospective drug traffickers. Factors of geography and\npopulation and, to a lesser extent, climate, all conspire to make\nthis area attractive to narcotics criminals.\nThe Central District of California is comprised of seven\ncounties covering 40,522 square miles, running from the Pacific\nOcean to the Colorado River. The eastern part of the district\ncontains vast open desert spaces which hold over 100 clandestine\nairstrips which are routinely used by drug smugglers. There are\nalso 16 commercial airports which receive traffic on a daily\nbasis, including Los Angeles International, which has daily\ninternational flights from most of the major narcotics source\ncountries of the world, and John Wayne International (Orange\nCounty) which is one of the busiest airports in the country. Los\nAngeles International Airport handles nearly 100 million passen-\ngers a year, -- 3 million of which arrive on international flights.\nThe coastline of the district runs from the San Diego County\nline to Monterey Bay and includes both the Port of Los Angeles and\nthe Port of Long Beach, both of which handle vast amounts of cargo\nand passengers from around the world, particularly from countries\n- 3 -\non the Pacific Rim, several of which are major narcotics source\ncountries for cocaine, heroin, hashish and marijuana. These are\nthe largest ports on the West Coast, and their combined volume of\ncargo rivals the port of New York. During 1986 alone, over 7,000\nvessels, 80% of which were cargo carriers, used the ports of Los\nAngeles and Long Beach. The vessels provide frequent opportuni-\nties for bulk drug smuggling. Moreover, the Central District has\nhundreds of miles of unprotected coastline dotted with marinas,\ncommercial fishing ports and uninhabited inlets ideal for large-\nscale smuggling operations.\nThe Los Angeles basin is criss-crossed with one of the world's\nbusiest roadway (freeway) systems which connect the dozens of\nindividual communities that make up the greater Los Angeles\nmetropolitan area and which at once facilitates travel and\ncomplicates law enforcement surveillance and coordination, because\nnarcotics transactions frequently will begin in one location and\nin a matter of a few hours move many miles and perhaps counties\naway. Los Angeles County alone has 43 separate police\ndepartments, many of which have a narcotics bureau.\nThe population of the district is huge and growing. According\nto the 1980 Census over 50% of the population of California, the\nmost populous state in the nation, resides in the Central District\nof California. This population is growing at twice the rate for\n- 4 -\nthe rest of the country. Indeed, five of the ten fastest growing\ncounties in the nation are in the Central District of California.\nEstimates put the population of the Central District at 18.2\nmillion by 2010.\nThere are very large ethnic populations concentrated in the\nLos Angeles metropolitan area. Substantial communities of\nColombians, Cubans and Mexicans exist in the area. According to\nthe Immigration and Naturalization Service, approximately 130,000\nMexican aliens enter the Los Angeles community legally each year.\nFigures derived from apprehension statistics on the southwest\nborder disclose that approximately 70% of 1.3 million illegal\nMexican aliens captured were enroute to the Los Angeles area. An\nestimated 2 million illegal aliens of Mexican origin are currently\nin the Los Angeles area.\nIn addition to the large Mexican community living and working\nin the greater Los Angeles area, there are approximately 30,000\npermanent resident aliens from Colombia and an additional 10,000\nillegal Colombian aliens in the area. A further 9,000 non-\nimmigrant Colombians enter the United States through Los Angeles\neach year.\n- 5 -\nThere are also substantial numbers of Asians -- Japanese,\nChinese, Vietnamese, Cambodians, Thais and Koreans -- who have\nestablished enclaves in various parts of Los Angeles. These\npopulations tend to maintain strong family relationships with\ntheir native lands, many of which have substantial connections\nwith major narcotics source countries, especially for heroin and\nmarijuana.\nFinally, the generally relaxed and leisure-oriented lifestyle\nof the Southern California area, coupled with the glamorous\nentertainment industry headquartered in this area, has given rise\nto an accepting attitude toward drug use. State law relating to\ndrug use and abuse has been historically weak -- possession or use\nof small (1 ounce or less) quantities of marijuana is a \"no jail\"\ncitable offense, on a par with a traffic ticket -- and has only\nrecently begun to deal with drugs as serious crime problem. Even\ntoday, persons arrested for simple possession of hard drugs, e.g.,\ncocaine, heroin, PCP, etc., are not prosecuted in the state\nsystem. They are routinely \"diverted,\" i.e., placed into a\ndiversion program requiring attendance at five one-hour sessions\non drug abuse.\nlorgist\nCalifornia is believed to have the largest population of drug\nconsumers in the country, and their appetites are broad-ranging.\npop.\nMany trends in drug abuse started in California and moved across\nhours\n- 6 -\nthe, country. For example, \"crack\" cocaine, which is known in\nthe Crock in\nLos Angeles area as \"rock\" cocaine, was first encountered in Los\nAngeles in 1981. By late 1985, it had reached the east coast and\nwas identified as a serious problem -- crack -- in early 1986.\nWith the size and diversity of the drug user market that Southern\nCalifornia represents, virtually every major narcotics\ndistribution organization has representatives here. Local police\nauthorities estimate that over 60% of the murders reported in Los\nAngeles county were related to drugs in some respect. Seventy\npercent of those arrested for serious non-drug crimes in Los\nAngeles test positive for illegal drug use.\n2. Historical Background\nOver the past 10 years the drug trafficking situation in the\nNow\ngreater Los Angeles metropolitan area has changed dramatically.\nIn 1978 Los Angeles was primarily a drug-consuming market, with\nPag\nnumerous distribution networks operating throughout the Los\nAngeles basin to handle drugs, which were brought in from other\nlocations after having been smuggled into the United States.\nCocaine has been the major drug abuse problem in this area for the\npast ten years. Ten years ago, the great majority of cocaine was\nsmuggled into the United States in Florida and then shipped\noverland to California, where it was distributed by conspiratorial\ngroups that were established in the Los Angeles area. From 1984\nto the present, vast quantities of cocaine have been smuggled into\nLos Angeles across the land border with Mexico, either by vehicle\n- 7 -\nacross the California and Arizona borders with Mexico and then\ndriven to Los Angeles for storage and distribution, or by aircraft\nwhich fly to the numerous clandestine airstrips in the desert\nareas east of Los Angeles where the drugs are off-loaded and\nturned over to distribution organizations operating in and from\nthe Los Angeles area.\nOnce the cocaine arrives in Los Angeles, it is consigned to\ndistribution networks to be sold to dealers in Los Angeles and\nelsewhere in the U.S. who deal in multi-kilogram quantities, and\nultimately to smaller dealers who in turn would sell ounce or gram\nquantities to the end consumer.\nHistorically, these distribution networks which initially\nreceived the multi-kilogram quantities from the smuggling\norganization have varied in composition. Many are staffed by\nColombian nationals who have come to this country either legally\nor illegally and have established a short-term -- one or two years\n-- headquarters operation working directly for the smuggling\noperation outside of California, i.e., in Colombia. Colombians\ntypically staff the first-line, wholesale distribution of cocaine\n40%\nin and from Los Angeles. According to the most current DEA\nclistri\nestimates, 40% of the nation's cocaine is being distributed in and\nTrona\nfrom Los Angeles. Based on the huge seizures of cocaine by law\nenforcement in the Central District (30,000 pounds in 1988), that\n- 8 -\nfigure may be above 50%. The vast amount of cocaine being shipped\ninto Los Angeles no doubt accounts for the fact that the price for\ncocaine is lower in Los Angeles ($10,000 to $14,000 per kilo) than\nanywhere else in the country, including Miami. 1/\nOther, secondary distribution networks are wholly composed of\nBlacks or Anglos -- native Americans who are well-established in\nvarious Los Angeles-area communities. The Anglo and Black\nnetworks have some connection with a foreign drug trafficker,\nusually Mexican or Colombian, and obtain multi-kilogram supplies\nwhich are then cut and sold in the community of which they are a\npart. In other cases, the secondary distribution networks are\nmade up of members of a local latin community, typically Mexicans,\nwho have lived in ethnic neighborhoods for years and are a part of\nthe criminal fabric of that community.\nIn 1979 the largest cocaine seizure in California up to that\ntime was 12 kilograms. In 1981 a then-record seizure of 114\npounds (55 kilograms) occurred. In both of those cases the\ncocaine which had been smuggled into Florida was transshiped to\n1/ See, DEA Intelligence Trends, Vol. 15, No. 2\nFrom 12 kilo in 79 to 114 lbs in '81\n9\nto over 500lbs in '85 which has\nbecome common place.\nCalifornia and put in the hands of an established distribution\ngroup. The 1979 seizure was from an Anglo distribution group; the\n1981 seizure involved a group of Colombians who had been sent to\nLos Angeles to distribute drugs for a number of Colombian\nsmuggling groups.\nIn 1985 a seizure of over 500 pounds of cocaine was made.\nThis seizure represented a quantum leap in the size of seizures in\nthe Central District of California, and since 1985 it has become a\ncommonplace to seize 500-pound plus stashes of cocaine, with some\nseizures ranging up to over one ton.2/ Most of these seizures\nhave been from stash houses in the Los Angeles area, rather than\nloads in transit. At one point in 1986 there were four\nprosecutions, each involving over 700 pounds of cocaine, pending\nin federal or state court. A single long-term undercover\ninvestigation (Operation Pisces) resulted in seizures which\ntotaled over 5 1/2 tons of cocaine in a 13-month period.\n2/ For example, in just one week in October 1988, over 2 1/2 tons\nof cocaine was confiscated in 5 seizures from stash houses in\nthe Los Angeles area. In the largest seizure, 1,700 pounds of\ncocaine was seized. The other cocaine seizures involved 1,516\npounds, 1,100 pounds, 600 pounds and 175 pounds, respectively.\n- 10 -\nThe advent of large seizures of cocaine in this district\ncoincided with a discernable shift in the smuggling patterns of\nlarge cocaine traffickers. In the late 1970s and early 1980s,\nthe preferred route for smugglers had been from Colombia to\nFlorida, by ship and aircraft. The creation of the South Florida\nTask Force in 1982 heightened interdiction efforts and led to a\nchange in smuggler's tactics. By 1984 it became apparent that the\nMedellin cartel had linked up with Mexican drug organizations,\nprincipally in Guadalajara, and were using Mexico as a point for\ntransshipment of cocaine and that greater and greater volumes were\ncoming across the U.S.-Mexican land border, by aircraft and by\nother means -- vehicles, mule-trains, etc. -- into California,\nTexas and Arizona. Two very large border seizures of cocaine,\neach of approximately 1,500 pounds, were made a few months apart\nin Arizona. That cocaine was destined for the Los Angeles area\nfor distribution, as subsequent investigation showed. Several\nseizures of multi-hundred pound loads of cocaine in Texas were\nalso found to be headed for the Los Angeles area. Recently, a\n700-pound load of cocaine was seized on board a private airplane\nwhich had landed in the Mojave Desert east of Los Angeles. The\nplane had originated its flight in Mexico.\nThe major changes in cocaine trafficking over the past 10\nyears in this district have been (1) the increase in direct\nsmuggling into the Los Angeles area, (2) the very large increase\n- 11 -\nin the size of the loads that have been detected and (3) the\nemergence of \"rock\" cocaine or \"crack\" as a major drug of abuse.\nThis last factor has led in turn to a major involvement of\nentreprenurial Los Angeles street gangs in the drug trafficking\nsituation, and an increase in the amount of violence associated\nwith the traffic.\nII\nDRUGS OF ABUSE\nA. Cocaine\nCocaine dealing and smuggling is, without doubt, the most\nsignificant narcotics crime problem facing the Central District of\nCalifornia in the 1980s. It has been the most prominent drug\ncrime problem in this area since the latter part of the 1970s,\nwhen cocaine became a favored drug among users of controlled\nsubstances.\nCocaine\nRecent estimates of cocaine usage in the United States suggest\nthat the number of persons who have used the drug has increased\nalmost 500% -- from 5.4 million to over 25 million -- in the\ntwelve-year period from 1974 to 1986. There are believed to be\nfour to six million regular users of cocaine. Much of this\nincreased usage is due to the association of cocaine with persons\nprominent in the entertainment industry and sports, and with a\ngenerally tolerant attitude, at all levels of society, toward a\n- 12 -\ndrug that was mistakenly viewed as \"recreational\" and\nnon-addictive. While those attitudes are being reversed, the\nfoothold that cocaine abuse gained during the 1970s and 1980s has\nmade Southern California one of the major cocaine consuming\nmarkets of the country and the world. That has led, in turn, to\nan increased incidence of smuggling directly into this market\narea, the growth of \"crack\" or \"rock\" cocaine usage and\ndistribution (with its associated violence and its impact upon\nyoung, high-risk target populations) and the accumulation of\nenormous amounts of drug-sales money which is \"laundered\" in the\nLos Angeles area and shipped back to the sources of supply outside\nof the U.S.\nThe nature and modus operandi of cocaine distributing\norganizations seems to have remained relatively constant over the\npast several years. Generally, the cocaine distribution networks\nare vertically organized, with a small, centralized management\nteam receiving the drugs in multi-hundred kilogram lots from\nsources of supply outside of the country. The drugs will be\nreceived on consignment, with the head of the distribution network\nbeing responsible to the supplier for the value of the load.\nConsequently, it is very common for the managers to maintain\ndetailed ledgers reflecting not only the receipt of cocaine loads\nand their dispersal to other, smaller distributors, but very\ncomplete information on the date of receipt, the precise quantity,\n- 13 -\nthe price to the manager's organization, the identity and coded\ndescription of the source of supply, the coded identity of the\ndistributor to whom the cocaine was re-consigned or \"fronted\" and\nthe date and amount of payment received from sub-distributors.\nA fortuitous seizure of drugs, money and a set of detailed\nnarcotics ledgers which occurred in 1981 provided an unprecedented\nlook into the internal operations of a group that continues to\noperate, with different personnel, in parts of the United States,\nincluding Los Angeles, today. The narcotics ledgers disclosed\ndetails about the cellular structure which continues to\ncharacterize high-level cocaine distribution organizations, and\nwhich appears to be an accurate model for those networks.\nThese narcotics ledgers, seized from the\nRivera-Ramirez\norganization, showed that there was a headquarters group of 6-7\nmembers who were responsible for receiving large quantities of\ncocaine -- up to 100 kilograms at a time (a quite large amount at\nthe time) -- and storing it for distribution. The headquarters\ngroup was using four separate apartments in an apartment complex,\nwith the ledgers and money kept in one, the drugs in another (in a\nseparate building), with various members of the headquarters group\nliving in, and distributing drugs out of, the other apartments.\nThe ledgers showed that there were 27 major (kilogram or more)\ndistributors who would receive cocaine from the organization,\n- 14 -\neither by coming to the apartments to receive the drugs or, for\nthose located at a distance from Los Angeles, the drugs would be\nsent by courier to the distributor. Each distributor was allowed\nto maintain a balance, which he would pay down as he received\npayment from his sub-distributors, who presumably dealt in\nfractions of kilograms to their own distributors in their area.\nThere was no indication that any of the 27 \"clients\" had any\nknowledge of each other, which is in keeping with the \"cellular\"\nnature of this, and other, cocaine distribution organizations.\nThis cellular mode of operation prevents the identification and\napprehension of other distributors if one is arrested. Each of\nthe distributors was identified only by a code name, to make\nidentification difficult even if, as in this case, the\nheadquarters group and ledgers were seized. The process of\nidentifying each of the \"clients\" took many months, by which time\nmost had relocated.\nThe supply mechanism disclosed by this investigation showed\nthat the headquarters group was in direct telephone and courier\ncontact with Colombian sources of supply. Those sources would\nsmuggle hundreds of kilograms of cocaine into Florida, where the\noverall organization's first level of distribution -- bulk\ndistribution -- would occur. (Since 1984, it is clear that bulk\ndistribution is occurring from Los Angeles to Chicago, New York,\n- 15 -\nSan Francisco and elsewhere.) At that point multi-kilogram loads\nwere sent by courier, using vehicles, to major markets, including\nLos Angeles and New York. The smuggled loads were generally made\nup of many individual packages, typically a kilogram in size,\nmarked with the symbol (\"flavor\") of the sending organization.\nThe Florida distributor would then dispatch a load, made up of\nperhaps several different \"flavors\" of cocaine, to the market\ncity, keeping track of how many packages of which \"flavor\" were\nsent, because both he and the market-city network manager were\nresponsible for that much cocaine to the supply organization in\nColombia whose symbol (\"flavor\") appeared on the package.\nThe ledgers seized from the Rivera-Ramirez organization kept\nvery careful note, down to individual gram quantities, of exactly\nhow much cocaine, of which \"flavor,\" had been received and\ndisbursed to the \"clients.\" This detailed tracking of the drugs\nallowed the headquarters manager to account specifically to the\nsource of supply for that \"flavor\" for the amounts distributed and\nthe amount of money received.\nDuring a part of the observable life of the Rivera-Ramirez\norganization, which spanned seven months, the group would use\ncouriers to both carry drugs from Florida to Los Angeles and, on\nthe return trip, to carry money from their sale to the collection\npoint in Miami for re-shipment to Colombia. Following the arrest\n- 16 -\nof a major money launderer in Florida, the money shipment method\nchanged. A person was sent to Los Angeles to act as the pick-up\ncontact for the money. He bought a house in the Los Angeles area\nand would contact the management team periodically. A record of\ntelephone calls to and from his residence disclosed a pattern of\ncalls and visits to pick up quantities of money -- usually in the\nrange of $1-2 million at a time -- for the account of the\nowner/source of the drugs. These pick-ups were carefully noted in\nthe ledgers and on each occasion the pick-up man signed for the\nmoney. It was later possible to identify both the pickup man, as\nwell as the source of the cocaine -- Juan Ramon Matta-Ballesteros.\nIt was also possible to document an historical association of\nfriendship and business dealings between Matta and the pick-up\nman, James Victoria Cano.\nThe type of cocaine distribution organization which is\nevidenced by the investigation of the Rivera-Ramirez organization\nis believed to be largely typical of Los Angeles-based cocaine\norganizations. The main features which are common are (1) The\ncellular organization, with the use of code-names for members and\nclients; (2) the use of multiple locations -- whether apartments,\nor more recently, a series of single-family residences -- to stash\ndrugs and money and to serve as operational bases; (3) the use of\ndetailed ledgers to provide accountability; (4) the technique of\n- 17 -\n\"fronting\" drugs, or delivering on consignment, to avoid having\nto make frequent deliveries of large amounts of cash and (5) the\ntransport of money to a central collection point for ultimate\ndelivery to the supplier of drugs.\nThere are some significant differences in operational details\nas law enforcement pressure has increased and had an impact upon\ncocaine trafficking organizations. The widespread use of\nmobilecellular telephones, pay telephones and paging devices to\narrange for transactions away from the headquarters location has\nincreased. It has become common to encounter \"service\"\norganizations -- private detectives, cellular telephone companies,\nreal estate agents and mail services -- who will rent equipment,\ncars and houses for the illegal aliens, commonly Colombians, who\nstaff the trafficking organizations. In some cases these\n\"service\" organizations operate to conceal the identity of the\nrenter/user; in other cases they are more actively involved,\nproviding warning of law enforcement interest.\nThere are also significant variations in the make-up of the\ncocaine trafficking organizations. Because Colombia is the source\ncountry for most of the cocaine reaching Los Angeles, a connection\nwith a Colombian, or other source country (Bolivia, Peru),\nsupplier is necessary. It is, however, quite common for someone\nin one of the many non-Colombian Hispanic communities -- Cuban or\n- 18 -\nMexican, mainly -- or other ethnic communities -- Black, Caucasian\n(Anglo) or Asian -- to have sufficient connections with a source\ncountry or local Colombian to set up his own distribution\nnetwork. Those networks, when discovered, generally rely upon\ndistribution organizations that are based on long-term friendships\nor associations or common ethnic background. They tend not to be\nas secure and cellular in their organization and are somewhat\neasier to penetrate with undercover operations or electronic\nsurveillance. To the extent that they are composed of persons\nwith substantial roots in this country, it is somewhat easier to\nidentify proceeds of drug trafficking, as it will be manifested in\nconsumer purchases, real estate investments or bank accounts, and\nit is correspondingly easier to isolate for seizure and forfeiture.\nAn Appendix (Appendix A) to this report identifies the major\ncocaine trafficking (smuggling and distribution) organizations\nwhich are presently operating in the Central District of\nCalifornia, based upon current law enforcement agency intelligence\nestimates.\nB. \"Rock\" Cocaine/\"Crack\"\nIn the past 3 to 4 years, beginning in 1984 and accelerating\nto the present, the phenomenon of \"rock\" or \"crack\" cocaine has\ncome to dominate a large part of the discussion of drugs in\ngeneral and cocaine abuse in particular. \"Rock,\" which cocaine\n- 19 -\ngets its name from its appearance and consistency, is a smokable\nform of cocaine which has been converted from the powder form,\ncocaine hydrochloride, which is commonly snorted or injected, back\nto its base form, which is an intermediate stage in the process of\nrefinement. The process of producing \"rock\" from powder cocaine\nis quite simple, involving the combination of baking soda, water\nand powder cocaine in a mixture which is then heated in a stove or\nmicrowave. The resulting substance is a solid mass of freebase\ncocaine, highly purified and no longer water-soluble. The mass is\nthen broken up or \"cracked\" into small rock-like chips or pieces\nand is sold on the street as \"rock\" or \"crack.\" The typical\ndosage unit is a fraction of a gram, from .20 to .25 grams, and it\nsells for as little as from $20 in Los Angeles, bringing it well\nwithin the financial reach of young people. Smaller chips of\n\"rock\" sell for $5-10, and present a major threat to school\nchildren.\nAccording to those who have used it and who are willing to\ndiscuss its use, \"rock\" cocaine is very addictive, much more so,\nand much more quickly, than regular cocaine. The euphoria is\nreached more quickly than with regular cocaine, and is much more\nintense, due primarily to the route of administration. The smoked\ncocaine goes almost directly to the receptors on the brain where\nit produces a very rapid and intense \"high.\" The cyclical\ndepression which typically follows any use of cocaine is also more\n- 20 -\nrapid in its arrival and correspondingly more intense. The result\nis frequently an almost immediate psychological addiction which\nis, at least initially, sustainable because \"crack\" is relatively\ninexpensive and readily available.\n1.\n\"Rock\" Manufacturing and Distribution\nIn the Los Angeles area the manufacturing and\ndistribution of \"rock\" cocaine is generally a Black\nenterprise. Most of the major cookers of \"rock\" are Blacks,\nwho appear to have a good working relationship with Colombian\nor Mexican suppliers of powder cocaine. The model structure\nof a Black \"rock\" cocaine organization appears to be as\nfollows: An older, established former street gang member who\nhas graduated from the random criminal activities known as\ngang-banging, such as robbery, assault, extortion and\nmurder, will establish a connection with a source of supply\nfor powder cocaine. That connection will supply\nmulti-kilogram quantities of cocaine hydrochloride, which the\nhead of the \"rock\" distribution network then turns over to a\ncooker, who converts the powder cocaine to \"rock.\" It is not\ncurrently known whether the powder cocaine is provided on a\n\"front\" or consignment basis, or whether that end of the\nbusiness is cash-and-carry. It most likely varies with the\nduration and strength of the established relationship. Los\nAngeles Police Department intelligence estimates suggest that\n15-20% of the \"rock\" dealers receive powder cocaine on a\n- 21 -\n\"front\" basis. The newly-produced \"rock\" is then given out in\nmulti-ounce quantities to street distributors who typically\ncarry only small caches -- grams or fraction of grams (10-20\n\"rocks\") -- on their person for street sales. The balance\nwill be concealed in a convenient location, such as a house\nnearby, or a car interior or trunk, from which replenishment\ncan be quickly accomplished.\nof\nThe actual mechanics of street sales takes several\n10/10\nforms. In some instances, \"spotters\" direct customers to the\nsidewalk or house where the distributor is waiting.\nFrequently, that \"spotter\" will accompany the customer and\nwill handle both the drugs and the money exchange. In other\ncases, the seller will approach a car and offer to sell the\n\"rock.\" In yet other circumstances the sales occur inside a\nfortified house known as a\n\"rock house.\nIn those cases there\nmay be multiple ounces of \"rock\" in the house. The customer\nis not allowed inside the house, or is allowed only into a\ncaged area just inside the door. The seller generally remains\nout of sight, with drugs and money passed through holes in the\nwall. These \"rockhouses\" are heavily fortified and sometimes\nheavily defended with automatic weapons, requiring an assault\nteam led by the LAPD's tank-like battering ram to execute a\nsearch warrant. The popularity of \"rockhouses\" to distribute\n\"rock\" cocaine in Los Angeles appears to be diminishing in\n- 22 -\nfavor of highly-mobile street sales. This shift appears to be\nrelated to the use of the LAPD's battering ram to gain access\nto rock houses.\n2.\nStreet Gangs\nThe past few years in Los Angeles has seen the\nlarge-scale involvement of Black street gangs, with membership\nnumbered in the tens of thousands, in the \"rock\" cocaine\nbusiness. Two major federations, the Crips and the Bloods,\nGang\ndominate the Black street gangs in the south-central part of\nLos Angeles. Each of the major federations has hundreds of\nsub-gangs, known as\nsets,\nwhich are generally based upon\nneighborhoods and take their names from prominent streets,\nsuch as\n'Five-Deuce Hoover Crips\"\n(52nd Street and Hoover\nStreet),\n110 Main Street Gangster Crips\"\n(110th Street and\nMain Street), or from derivations unknown ( \"Rollin 60 Crips,\n\"Blood Stone Villains\"\n(Bloods),\n\"Playboy Gangster Crips,\n\"Neighborhood Bloods,\n\"Bounty Hunters\"\n(Bloods) ) Los\nAngeles street gangs now dominate the rock cocaine trade in\nLos Angeles and elsewhere, due in part to their ready recourse\nto murderous violence to enforce territorial dealing\nsupremacy, to deter cheating and to punish rival gang\nmembers. Currently, there are approximately 260 discrete gang\n\"sets,\" mostly allied to the Crips or Bloods, with an\nestimated total membership of more than 25,000, in the city of\nLos Angeles. When all of the gangs documented in the county\n- 23 -\nare added, the total number of gangs approaches 700 and the\nmembership estimates approach 75-80,000. Not all of these\ngangs sets are involved in drug trafficking, let alone rock\ncocaine dealing, but the number of gang members actively\ninvolved in the rock cocaine traffic is believed to exceed\n10,000, mainly concentrated in the Black areas of South\nCentral Los Angeles, Compton, Inglewood, and Long Beach.\nThe major Los Angeles Street Gangs known to be substantially\ninvolved in drug trafficking are as follows:\nName\nMembership (estimated)\nPlayboy Gangster Crips\n250 members\nFive-Deuce Hoover Crips\n300 members\nRollin 60 Crips\n350-500 members\nEast Coast Crips\nunknown\nGrape Street Crips\n200 members\nEight-Trey Gangster Crips\nunknown\nFour-Trey Hoover Crips\nunknown\nShoreline Gangster Crips\nunknown\nGeer Street Gangster Crips\nunknown\nSchoolyard Crips\nunknown\nRollin 20s Crips\nunknown\nVery little is known about the hierarchical structure, if any, of\nthese gang trafficking organizations. There is a division of\nopinion among knowledgeable gang investigators concerning the\ndegree of involvement of the gangs, as gangs, in the \"rock\"\ntraffic.\n- 24 -\nMost probably, certain members of \"cultural\" Los Angeles\nstreet gangs are a part of emerging entrepreneurial drug\ntrafficking organizations. These organizations no doubt take on a\nhierarchical structure that uses gang members for muscle and at a\nlower level, as couriers, street dealers and money collectors.\nIn most instances, the only identifiable assets of gang\ntraffickers are cars and jewelry. \"O.G.s\" (Original Gangsters)\nor those who have graduated from street crime to more organized\nnarcotics trafficking are accumulating significant amounts of real\nestate and legitimate businesses.\nIn the past two years, Black gang members and their associates\nfrom Los Angeles have been establishing \"crack\" distribution\noutlets in numerous cities across the U.S. The LAPD nas\nidentified 47 cities, from Seattle to Kansas City to Baltimore,\nwhere Los Angeles street gang traffickers have appeared.\nTypically, these Black traffickers have identified markets and\ntransport 5 to 20 kilo shipments of cocaine from Los Angeles into\nother cities, where it is converted into \"crack\" form. The base\nof operations for these \"crack\" distribution networks is Los\nAngeles and the profits from \"crack\" sales is returned here.\nIn 1988, there were 452 gang related homicides in Los Angeles\nMurders\nCounty, a 16.7% increase over 1987. The LAPD estimates that over\nhalf of these homicides were drug related.\n- 25 -\n3.\nJamaican Posses/Criminals\nAn additional element in the rock cocaine business is the\npresence of a substantial number of criminal aliens from\nJamaica. These Jamaicans tend to organize and associate in\ngroups known as Posses. They are significantly involved in\nthe operation of \"rock houses\" and have been known to recruit\nand employ black gang members to operate the houses and to\nprovide security. The Jamaican Posses represent part of a\nnational drug crime problem which is principally distinguished\nby ready recourse to brutal violence against whole families,\nespecially with automatic weapons, which makes the violence of\nthe street gangs pale in comparison. In the Los Angeles area\nJamaican Posse members number about 400, and they control a\nsignificant fraction of the \"rock\" traffic in the Los Angeles\narea.\nNot much is known about the structure of the local\nJamaican criminal groups, due in part to the difficulty of\ninfiltrating their operations with undercover officers. In\nother parts of the country the Jamaican criminal organizations\nare affiliated with the geographical locations in Jamaica from\nwhich the members migrated. There is also a perceived\nconnection between the Posses and the major political parties\n- 26 -\nin Jamaica. In some documented instances there has been a trade\nof drugs for weapons, which weapons have been sent back to Jamaica\nand used in the electoral campaigns.\nC. Heroin\nIn the Central District of California heroin has been\nsupplanted by cocaine, and especially \"rock\" cocaine, as the\nprimary drug of abuse. Nevertheless, there is a relatively stable\npopulation of approximately 100,000 heroin users in the general\narea. Heroin is found in three primary forms: Southeast Asian\nwhite heroin, which is generally found in purities of 90% or\nmore, and two varieties of Mexican heroin, which are generally less\npure. Mexican brown heroin makes up a large amount of the total\nvolume, and is commonly found in concentrations of up to 40-45%.\nIn the past five years, a newer type of Mexican heroin, Black Tar,\nhas come to be the most commonly available type, with purity in\nthe 60-70% range, although it has been found with a purity of\n93%. There has been an alarming increase in quantities of heroin\ncoming into Los Angeles from Southeast Asia. Recently, for\nexample, 70 pounds of heroin was seized at LAX coming in from\nSoutheast Asia.\n- 27 -\nStatistics indicate that heroin is enjoying a comeback as a\ndrug of abuse. In 1987, Los Angeles health officials noted that\nheroin treatment admissions were five times greater than cocaine\nadmissions. There was an 86% increase in heroin overdose deaths\nbetween 1984 and 1986, and a 105% increase in the number of heroin\nrelated emergency room admissions in that same time-span.\nThe prime heroin distribution organizations in the Central\nDistrict of California are Mexican and Asian. There is a presence\nof Sicilian LCN heroin traffic, but not in the volumes that are\ncommon in the Mexican and Asian groups.\n1.\nMexican Heroin Organizations\nTo a greater degree than is encountered in other drug\nsmuggling and distribution networks, the Mexican heroin\norganizations rely upon extended family connections, many of\nwhose members continue to live in the neighboring source\ncountry of Mexico. It is common for the entire trafficking\nenterprise, from poppy cultivators to street distributors, to\nbe related by blood or marriage. In one notable example in\nthis area, the Sanchez-Carranza organization relies upon\nfamily relatives living in the mountainous regions of Durango,\nMexico to cultivate the opium poppy fields, harvest the\ntwice-a-year crop and send it to other family members in\nMexico who process the opium gum into heroin. This heroin is\n- 28 -\nthen sent by couriers (also family members in many cases)\nacross the border and up to the rural areas where the American\nbranches of the extended family live on farms and ranches in\nthe eastern part of the district. The processed heroin is\nthen distributed in small amounts to trusted customers and\nsub-distributors throughout California and into the\nneighboring states of Washington, Idaho, Arizona and Nevada.\nThe Sanchez-Carranza organization deals in both Mexican brown\nand Black Tar heroin.\nThe organization enjoys protection from corrupt law\nenforcement officials, primarily in Mexico, and also uses\nbusiness concerns owned by family members or associates to\nlaunder profits derived from the sale of heroin.\nDrug Enforcement Administration intelligence indicates\nthat Black Tar heroin is also being manufactured by\nindependent family organizations in Sonora, Sinaloa and\nGuerrero states. Declines in the price per kilogram of Black\nTar heroin from $150-180,000 in 1985 to $110-140,000 in 1989\nindicates a growing availability of the drug despite\nenforcement efforts.\n- 29 -\n2.\nAsian Heroin Organizations\nMuch less is known about the structure and organization\nof the Asian heroin trafficking groups operating in the\nCentral District of California. This is due in large part to\nthe difficulty of penetrating most Asian communities with\nundercover officers, aggravated by the language barrier.\nWnile Spanish-language qualified agents are not uncommon in\nthis area, officers who are fluent in Chinese, Japanese, Thai\nor Korean are much less common. Another complicating factor\nis the bond of secrecy which characterizes many of the\ncriminal organizations in the Asian communities.\nBy far the most frequently encountered Asian heroin\ntrafficking groups involve Thai smugglers and distributors\nwhich obtain their heroin, exclusively southeast Asian white\nheroin, from the Golden Triangle area of Laos, Thailand, and\nBurma. DEA has established well-staffed posts in Thailand in\nrecognition of this fact, and relations with Thai police\nofficials are generally very good and cooperative. The volume\nof ship and air traffic between Thailand and Los Angeles is\nsubstantial, and several major (30 pounds or more) heroin\nseizures have been made in the past few years.\n- 30 -\nBecause of the relatively high value of white heroin (as\nmuch as $10,000 per ounce), small shipments in mail or\npackages has become a common and difficult-to-detect method of\nintroducing heroin into the country.\nThere do not seem to be many long-term, structured groups\ninvolved in smuggling Asian heroin into the United States.\nThe groups that do engage in heroin smuggling are\nconspiratorial associations that form for that purpose and do\nnot tend to stay intact afterward. There are some exceptions\nto that rule; some have continued to operate, using the same\nsource of supply and the same couriers and distributors,\nreplacing those who are captured. There is also evidence that\nsome of the Chinese organized crime organizations, notably Wah\nChing and United Bamboo, are involved in the heroin traffic in\nLos Angeles.\nD. Phencyclidine (PCP)\nThe Central District of California is the main production\npoint for PCP in the United States. PCP manufactured here is\nshipped to every part of the country. Estimates suggest that 80%\nof the PCP found in this country originates in the Los Angeles\narea.\n- 31 -\nThe chemical process of manufacturing phencyclidine is\nrelatively simple and setting up a laboratory to make it is easy,\nif somewhat dangerous. Investigative experience shows that, like\n\"rock\" cocaine manufacturing and sales, the PCP traffic is\ndominated by Blacks in this area. Some of the same gangs that are\ninvolved in \"rock\" cocaine dealing got their start in PCP\ngroupings and moved to \"rock\" because it is easier and safer to\nmake and distribute.\nThere does not appear to be much in the way of structure,\nother than conspiratorial association, in the case of most major\nPCP manufacturing operations in the Los Angeles area. There is\nsome evidence that, in the case of one of the most important PCP\nmanufacturers in this area, a family network is used to distribute\nthe finished PCP in far-away locations such as New Orleans,\nWashington, D.C. and Oklahoma City. Criminal associates from\nstreet gangs are used to distribute PCP and to provide security\nfor the operations, but there is no clear link between organized\ngangs and the manufacturing or distribution operations. Los\nAngeles Police Department intelligence sources reveal that five\nmajor identified black street gangs are involved in manufacturing\nand selling PCP. In most instances, they sell PCP, use the money\nto buy cocaine and then sell the cocaine.\n- 32 -\nE. Cannabis (Marijuana and Hashish)\nAs noted above, the 350-mile stretch of coastline which\ncomprises the western border of the Central District is\nunprotected and vulnerable to organized smuggling activity. Over\nthe past decade, several large-scale smuggling organizations have\ntaken advantage of this vulnerability to import multi-ton\nquantities of marijuana from source countries in Latin America\n(Colombia and Mexico) and Asia (primarily Thailand). These and\nother organizations have also smuggled large amounts of hashish,\nwhich origniates mainly in Afghanistan and Pakistan, into this\nDistrict.\nAccording to former members of these smuggling enterprises, it\nis not uncommon to have major marijuana or hashish loads handled\nby a syndicate of smugglers, boat owners, financiers and\ndistributors, who meet and plan a venture from the acquisition of\nthe drug to the bulk distribution on the west coast. These\nsyndicates are loose-knit associations of persons known to each\nother, who have been involved in narcotics trafficking for many\nyears and who have a network of relationships, business and\nsocial, which bind them together. The membership of the syndicate\nfor any particular smuggling venture will vary considerably, but\nis generally drawn from the same pool of traffickers and\ninvestors, all of whom are known to each other, making penetration\nby law enforcement very difficult.\n- 33 -\nThe marijuana and hashish smuggling syndicates are organized\naround a specific load and are vertically integrated. The leader\nof the venture will contact investors who will put up from several\nhundred thousands to a million dollars or more to buy the drugs\n(These \"syndicates\" operate almost exclusively with Asian sources\nof supply) and to meet the expenses of buying a suitable vessel\nand other necessary equipment and facilities, such as\ncommunications equipment, warehouses, off-load boats, and trucks.\nWhen financing has been fully arranged, the syndicate leader then\nBargen\nuses his contacts in the source country to\n\"kick\"\na load out for\nshipment. It is also common for the vessel that will carry the\ndrugs to this country to be captained and crewed by other members\nof the conspiracy. When the loaded vessel approaches the western\ncoast of the United States, several methods of delivery are\npossible. In some cases, the vessel will proceed to a sheltered\ndocking area where the drugs are off-loaded directly by the\nwaiting off-load crew. These people may be members of the\nsyndicate, or they may be specialists who are hired simply for the\ntask. An alternative method is for the load vessel to rendezvous\nwith several smaller fishing-type boats hundreds of miles off the\ncoast and transfer the load at sea. Those smaller fishing boats\ncan then proceed to shore to off-load the drugs. An intermediate\nmethod is for small, fast inflatable boats to meet the load vessel\na few miles off-shore and make several swift off-loading runs. In\n- 34 -\neach case, once the load of marijuana or hashish is ashore, it is\nusually taken to a warehouse location and broken down into smaller\nquantities for distribution across the country.\nThe primary attraction for these smuggling syndicates is the\nhigh profit-to-risk ratio that these operations present.\nMarijuana and hashish are generally viewed as \"soft\" drugs;\nJorgen\nnowhere near as dangerous to the public as cocaine, heroin or\nPCP. The jail sentences that have historically been handed down\nfor marijuana-type offenses are not severe, although there has\nbeen some improvement in that area recently. The amount of money\nto be made is huge -- marijuana, which can be bought for $5-10 per\npound from the grower, and can be purchased from brokers in the\nsource country for $10-35 per pound, will sell at wholesale in the\nUnited States for $850-1,300 per pound. The quantities involved\nin marine smuggling from Asia typically are in the range of 20-50\ntons, having a wholesale value of tens of millions of dollars.\nOn the west coast, there are no \"choke points\" such as exist\nin the Caribbean, and the risk of capture is correspondingly\nsmall. Interdiction efforts rely to a very large degree upon\nintelligence gained in advance of a load vessel's arrival, and the\nlong lead-time involved in a trans-Pacific passage increase the\nchances of losing touch with the vessel. Finally, the entire west\ncoast, with major ports at San Diego, Long Beach, Los Angeles, San\n- 35 -\nFrancisco, Portland and Seattle, is available for exploitation, a\nfact which dramatically increases the difficulty of successful\ninterdiction.\nIn addition to the threat posed by marijuana and hashish\nsmuggling organizations in Latin America and Asia, there is the\ndomestic marijuana harvest which must be considered. Anecdotal\ninformation indicates that marijuana may be the largest single\ncash crop produced in a state which is one of the major\nagricultural economies in the country. While most of the actual\ncultivation occurs in the northern and eastern part of the state,\noutside of the Central District, the major market of Los Angeles\ncontinues to attract larger quantities of marijuana, particularly\nsensemilla, which, because of its more concentrated psychoactive\nelement, THC, is both more expensive (up to $4,000 per pound at\nretail) and more dangerous.\nIII\nMONEY LAUNDERING OPERATIONS\nAs noted above, because there is SO much of a consuming market\nfor the entire range of drugs that are manufactured or smuggled\ninto the Los Angeles area, there is an ocean of drug-tainted cash\nin the greater Los Angeles area. Although any estimate of just\nhow much drug money accumulates at any one time would necessarily\n- 36 -\nCash\nbe guess-work, there are some anecdotal indications that the total\nmust be reckoned to be in the billions. In the quarter ending\nSeptember 30, 1988, the Federal Reserve cash surplus in Los\nAngeles ($3.8 billion) was the largest in the nation and for the\nfirst time, surpassed the cash surplus in Miami.\nSeveral years ago the total value of the illegal drug business\nwas estimated to be in excess of $80 billion a year. Los Angeles\nis, by most estimates, the drug consumption capital of the\ncountry. It is also a major bulk distribution center for cocaine\nand PCP.\nThe Rivera-Ramirez organization, described above, handled over\n$70 million in drug cash in a 7-month span - a $120 million annual\nhandle for a 7-member group in 1981. At that time, a 115-pound\nseizure was the largest ever. Currently, seizures of 5 to 10\ntimes that size are occurring on a regular basis - many times each\nyear.\nA single undercover money-laundering operation in Los Angeles,\nOperation Pisces, resulted in the seizure of almost $50 million in\ncash and assets. Evidence revealed that the cocaine trafficking\norganizations involved in the case were laundering $17 million in\ncash a week, or nearly $1 billion annually. At a point during the\ncourse of that operation, when the undercover operation was\ntemporarily not handling money, reports circulated that there was\n- 37 -\nin excess of $300 million in drug money in the Los Angeles area\nrequiring laundering. So great was the volume of business, both\nactual and potential, that another full-scale undercover\nlaundering operation moved from the east coast to the Los Angeles\narea and began laundering money at the same time, with some of the\nsame customers.\nSeveral different techniques have been used by drug\ntraffickers in an effort to move the money generated by drug sales\nout of the United States and away from the possibility of loss\nthrough seizure. As enforcement techniques have improved, the\ntraffickers have developed different strategies to cope with the\nproblem.\n1. Bulk Movement of Cash.\nA risky but efficient method of transferring narcotics\ncash out of the country, to the source country (generally\nMexico or Colombia) or to a third country, usually one with\nstrict bank secrecy laws, is simply to pack it in a box or\nluggage and send or carry it out by common carrier or charter\ncarrier, or by clandestine carrier. Another possibility is to\ndrive across the land borders. All of these methods have been\ntried and have met with both success and failure.\n- 38 -\nThe major risk factors involve random cargo or luggage\nsearches, either outbound or at Customs in the destination\ncountry. Provisions of United States law make it unlawful to\ntransport large amounts of currency out of the country without\ndeclaring it, which traffickers generally try to avoid. The\ncurrency control laws of some source countries, most notably\nColombia, also pose a risk of loss for large-scale transfers.\n2.\nBank Transfers.\nThe most popular method of laundering large amounts of\ndrug currency at the present time is to arrange for an\naccommodating bank to accept larye deliveries of cash into\naccounts and then to have the bank wire transfer the money to\na correspondent bank in the source or shelter country for\nconversion into the currency of that country. The major\nproblem for the drug trafficker is the creation of an audit\ntrail, beginning with the forms required to be filed by the\nfirst bank where the cash is deposited, and ending with the\nwire transfer audit document. To meet that problem the drug\ndealers would look for a \"crooked bank\" which would not file\nthe required forms in exchange for a bribe or the volume of\nbusiness. In several cases, undercover officers were able to\npose as persons who could arrange for a \"crooked bank\" to take\nthe drug money without reports. In Operation Pisces the\nmasquerade was so successful that the criminals not only\n- 39 -\nbrought huge amounts of cash to the undercover location, where\nthey counted it on closed circuit television, but they also\nbecame talkative about their business and associates, and\nfurnished much of the information needed to convict them and\ntheir associates.\nThe undercover operation was able to identify \"secret\"\naccounts in Panamanian banks to which the laundered funds were\nwired, and at the conclusion of the case over $12 million in\ndrug money was seized from those accounts by the Panamanian\nGovernment.\n3.\nBusiness Establishments.\nIn a recently-concluded investigation, a group of\njewelery merchants working out of the Los Angeles Jewelery\nMart was discovered to be engaged in laundering over\n$1 billion in the past year for several narcotics trafficking\norganizations. The laundering mechanism involved the use of\nnumerous subsidiary jewelry businesses to disburse the huge\namounts of cash that were delivered in boxes during the\nbusiness day. False business transactions were documented to\nnide the receipt of cash, and amounts of currency were\nostensibly used to purchase large amounts of gold bullion from\nUruguay through a refining company in Miami. In fact, no gold\n- 40 -\nwas purchased or shipped. The scheme involved the collection of\nnarcotics cash in a number of cities, with the cash then being\nshipped by courier to Los Angeles to be laundered and returned\nthrough the banking system to the drug traffickers.\nIV\nCONCLUSION\nThe structure and operation of drug trafficking organizations,\n0\nincluding money laundering organizations, can only be\ngeneralized. There are a large number of such organizations\noperating in the Central District of California, and there are\nmany subtle variations in their methods of doing business. The\nonly reliable source of specific tactical information about a\nparticular drug trafficking organization will be the intelligence\nbase of the law enforcement agency most directly concerned with\ninvestigating and neutralizing it. This report seeks to provide a\ncoherent overview of the drug situation in 1988-1989 as seen from\nthe perspective of the U.S. Attorney's Office, taking into account\nthe observable history and development of the type of\norganizations which best express that situation.\n- 41 -\nSENSITIVE - NOT FOR PUBLIC DISCLOSURE\nAPPENDIX A¹/\nMajor Cocaine Trafficking Organizations - Los Angeles Area\nOrganization Name\nAgency\n1. Ochoa-Vasquez\nDEA/FBI\n2. Escobar-Gaira\nDEA/FBI\n3. Felix-Gallardo\nDEA\n4. Rodriguez-Gacha\nDEA/FBI\n5. Matta-Ballesteros\nDEA/FBI\n6. Suarez-Gomez\nDEA\n7. Rocha-Suarez\nDEA\n8. Contreras-Subias\nDEA\n9. Caro-Quintero\nDEA\n10. Quintero\nDEA\n11. Santacruz-Londono/Rodriguez-Orjuela\nDEA/FBI\n1/ The organizations identified in this appendix represents a\ncollation and compilation of intelligence data provided by the\nFederal Bureau of Investigation and the Drug Enforcement\nAdministration in 1988.\n- 42 -\nSENSITIVE - NOT FOR PUBLIC DISCLOSURE\nAPPENDIX A (Continued)\n12. Cardona\nDEA\n13. Cuervo/Cano\nDEA\n14. Avila\nDEA\n15. Villabona/Bennett\nDEA\n16. Moncada\nDEA\n17. Koth\nDEA\n18. Hernandez\nDEA\n19. Palacio\nDEA\n20. Perez\nDEA\n21. Ramos/Herrera\nDEA\n22. Mesa\nFBI\n23. Renteria\nFBI\n24. Dane\nFBI\n25. Reeder\nFBI\n(714)759-9768 LAR rept. Doarge Country\nfan former Cory from Calif\nNate Comor. Newber\nfor-reaching legislative (Lange/Blessey) triumph April\n21, 1989\nBillin St panced He Comprehopise Char Control Act f 1984 [RANCH\n3:30 p.m.\nDOC]\nPRESIDENTIAL REMARKS:\nRANCHO DEL RIO\nthats what alter us\nORANGE COUNTY, CALIFORNIA\nTUESDAY, APRIL 25, 1989\nto the assets, &\n12:15 P.M.\ncontribute to law\nenforcement\nThank you, Attorney General Thornburg. It's good to be\nhere. And I'm honored to be joined by Governor Deukmejian;\nSenator Pete Wilson; Mike Hayde; Commissioner Willie Von Raab;\nSheriff Gates; and somewhere out there, are 50 special agents and\nundercover detectives. Unsung heroes -- risking their lives,\nevery day, behind enemy lines. You know who you are. And we\nsalute you.\nAll of you here today are fighting some of the toughest\nbattles -- with the biggest population of users -- in the largest\nand toughest drug market in the country. Somebody dies every\nother day in Orange County from drugs. They've ranged in age\nfrom 82 years old\nto two years old.\nBut you're not backing down, or giving up. The communities\nof Orange County have united. Law enforcement agencies have\nbanded together. Your example is one of hope, determination, and\npure American spirit.\nWe won't Build a Better America until we win the war on\ndrugs. So today I want to touch on both sides of the equation:\neducation, to cut off demand for drugs; and enforcement, to cut\noff the supply.\n2\nDemand for drugs is driven by hopelessness. Last year an\n18-year-old member of the LA \"Crips\" gang was asked, \"If you\ncould change the world, how would you do it?\" He said, \"I\nwouldn't know what to do\nI would not know what to change.\"\nLater, they asked him, \"What do you think you'll be doing in ten\nyears?\" He said, \"I don't think I'll be alive in ten years.\"\nThat is a life without hope -- without meaning. A life that\nended before it began. We're looking at a desperation that money\nalone will never cure. We won't win this one with our wallets\nalone -- we will only win it through our efforts, and our will.\nAnd that means education -- reducing demand, through\ncommunity involvement at all levels. Mike Hayde, Sheriff Gates,\nand so many others: Your \"Drug Use is Life Abuse\" program is one\noutstanding community awareness effort. You've got business,\ngovernment, schools, religious groups, families, and law\nenforcement -- all personally committed to halting demand.\nThere are the students, who produced the anti-drug video\nthat runs before every movie in town. The workers who roll by on\nsanitation trucks with signs saying \"Drugs are Garbage.\" Every\nL.A. Ram with a \"Drug Use is Life Abuse\" patch on his uniform.\nOver 22,000 student athletes on teams in Orange County, who will\nwear the same patch. And all of the students, distributing tens\nof thousands of cards for people to sign away their interest in\ndrugs. I'm going to proudly sign one of those cards.\nBut among the many who are getting the word out, I'd like to\nenlist one other group in the L.A. area, that has a special\n3\nresponsibility: those in the entertainment industry.\nTelevision, films, and music are a powerful influence. Use that\ninfluence wisely -- to do good. I know that many in the business\nare already concerned and active. But entertainers have the eyes\nof a young world upon them -- and must do more.\nYou have raised your voices so effectively, in the cause of\nSO many issues. Can you not raise them once more, in support of\na cause so important? In the work you do -- and the lives you\nlead -- help us send a strong message, the right message, to a\nnew generation of Americans: There is no glamour in drugs.\nI recently got a letter from a young woman who knows that\nonly too well. She wrote, \"I have a brother who has wasted time,\nopportunity, and finally his mind. I have watched my mother and\nfather cry and spend years of energy and effort on their addicted\nson instead of themselves. I hate drugs. Drugs have virtually\ndestroyed my family.\" She deserves better. We all do. And we\nmust destroy those who traffic in drugs -- with the strongest\nmeans of enforcement we can devise.\nMany of you know the history of the ground we stand on.\nDanny James Fowlie once owned this land. Made it the core of an\ninternational drug smuggling and money laundering operation.\nUsed this ranch as a base for one of the largest drug networks in\nthe country.\nFowlie only dealt with distributors handling dope by the\nton. The man had commercial packing equipment, underground\nstorage vaults, large vans with hidden compartments, jet\nDrug tripficker like D,F who like tendal\nvicious bots of the middle ages control their empires through\nreprisol of death white they enjoy the\ncountry like hxury such br this.\nappearance estate 07 legitimate (besiness) enterprise surrounded by\nBLt b/c E, know you know how to\nsttock the other 170 mops (dope dealer) and\nStosh honors Dnd money lounderers that make\nup drog arganizations that deal death to OUT\nkids\n4\naircraft, ocean-going vessels. Today, he's got only one thing:\nno future.\nHe's in a Mexican jail now. And we don't know how well he\nslept after the tortuous murder of DEA Special Agent Enrique\nCamarena -- but he won't sleep here again.\nRancho del Rio has been reclaimed. It's the first piece of\nforfeited drug-lord property turned over. for use by local\nofficials. It's now going to serve as an International Narcotics\nTraining Center -- and as a reminder to these merchants of death:\nYour money won't help you. In fact, we're going to use it\nagainst you.\nWhat you see on this table here, is over $4 million of\nlaundered drug money, recently seized by U.S. Customs and the\nSheriff's Department here in Orange County, in \"Operation Shakel\n[SHAY-kel].\" Today I'd like to formally turn these funds over to\nSheriff Gates, to fund the Rancho del Rio project.\nI'm also pleased to present another $6 million in drug money\n-- confiscated through a sting operation in Arizona -- to fund\nmore effective, cooperative efforts between state and federal\nenforcement agencies.\nThese funds -- totalling $10 million -- are the spoils of\ndefeated drug criminals. You've earned them. And you know how\nto put them to good use, to stop other drug criminals.\nYou've had outstanding results over the last two years, in\nthe Regional Narcotics Suppression Program -- thanks to the team\nefforts of state and federal agents. Nearly $40 million in cash,\noffinent surroundings\ncrystal doted from lote 1800s from the Russian CENCO\ncountry estate\nif D truck broke, jLBY but new are\nexpensive fishing equipment\nIndian actificts of tremeslows rolie\nwhile planning starture st Kike\nmother of dinging sents 25\n5\nconfiscated. The equivalent of 9 million injections of heroin,\nand 38 million doses of cocaine seized. That's 16 doses for\nevery man, woman, and child in Orange County.\nLet these funds go to fighting the war they once financed.\nLet us raise awareness -- and build strength -- through a\nconstellation of concerned Americans, in every town, city, and\ncommunity in this country. And let us send a message, loud and\nclear, to every drug merchant in America: you're out of\nbusiness.\nThank you. God bless you. And God bless the United States\nof America.\nU.S. CUSTOMS SERVICE\nOffice of the\nU.S.CUSTOMS\nTHE DEPARTMENT OF THE\nTREASURY\nAssistant Regional\nTHE DEPAR or\nCommissioner\nfor Enforcement\n1789\nSPECIAL AGENT\nPacific Region\nLos Angeles, CA.\nFAX Numbers - FTS 798-0598 or 798-0653, Commercial - (213)-894-0598 or 0653\nMessage Center (Voice) - FTS 798-3904, Commercial - (213) 894-3904\nDate:\n4/24/89\nFrom:\nAWALLS, uses,Los Angeles\nTo:\nStephaned BLESSEY\nOffice:\nWhite House Stoff\nPhone:\nDef#: 202/456-6218\nPage Count:\n(Includes Transmittal Page)\nMessage Number:\n2 10110\nTime Received In RCC:\nRECEIVED-TR\nSUT 336\n24 APR 1989\nREGIONAL CONKING CENT\nLOS ANGELES IFORMA\nTime Transmitted:\n** 200 PAGE **\nTREASURY\nUNITED STATES GOVERNMENT\nDEPARTMENT OF THE TREASURY\nMemorandum\nUNITED STATES CUSTOMS SERVICE\nDATE: April 24, 1989\nTO: Stephanie Blessey\nWhite House Staff\nFROM: Deputy Assistant Regional Commissioner\n(Enforcement)\nPacific Region\nSUBJECT: Status of Fowlie and Asset Sharing of Real Property\nSteven Walker, the Assistant Legal Attache' for the F.B.I.\norally advised me that Daniel Fowlie was arrested in June 1987\nand has been in custody since. Mr. Walker further advised that\nas of two weeks ago, the Attorney General of Mexico advised him\nthat Fowlie was physically in a penitentiary awaiting extradition.\nFowlie has filed a legal document which has recently delayed that\nextradition.\nFowlie's real property is not the first in the nation to be\nturned over under asset sharing with a local law enforcement,\nbut is the first in Orange County and is the first in the\ncountry to be shared with local law enforcement that will be\nused for a law enforcement training center.\nALAN Challs D. WALLS\nAPR-20-1989 16:21 FROM\nTO\n1-202-456-6218\nP.01\nSHERIFF-CORONER DEPARTMENT\nCOUNTY OF ORANGE\nCALIFORNIA\nBRAD GATES\nSHERIFF-CORONER\nTELECOPY TRANSMITTAL SHEET\nDATE: 4/20/89\nTIME: 5:14 p.m.\n11\nNUMBER OF PAGES:\nTO:\nSteph Blessey\nNAME\nLOCATION\nPHONE NUMBER\nFROM:\nSheriff Brad Gates\nNAME\nOrange County Sheriff-Coroner Department\nLOCATION\n(714) 647-1800\nPHONE NUMBER\nlast 2yrs. in Drange\nMESSAGES:\nThese are some examples of the 401 deaths. / County\nIF THERE ARE ANY QUESTIONS, PROBLEMS OR YOU DON'T RECEIVE ALL OF THE PAGES\nCALL (714) 550-9223\n550 N. FLOWER STREET\nP.O. BOX 449\nSANTA ANA, CALIFORNIA 92702\n(714) 647-7000\nSHE 52 (R11/88)\nAPR-20-1989 16:21 FROM\nTO\n1-202-456-6218\nP.02\nA 31 YEAR OLD MALE\nCARPENTER\nOVERDOSED IN SANTA ANA\nDUE TO THE COMBINED\nEFFECTS OF COCAINE AND\nMORPHINE.\nA 31 YEAR OLD MALE\nSALESMAN\nOVERDOSED IN SANTA ANA\nDUE TO THE COMBINED\nEFFECTS OF COCAINE,\nMORPHINE AND CODEINE.\nAPR-20-1989 16:22 FROM\nTO\n1-202-456-6218\nP.03\nA 26 YEAR OLD MALE CAR\nSALESMAN DIED AS A RESULT\nOF A TRAFFIC ACCIDENT\nWHEN THE PICKUP TRUCK HE\nWAS DRIVING HIT A FIXED\nOBJECT IN WESTMINSTER.\nCOCAINE AND PRESCRIPTION\nDRUGS WERE PRESENT IN HIS\nSYSTEM\nA 19 YEAR OLD MALE\nDELIVERYMAN DIED FROM\nINJURIES RECEIVED IN A\nFALL FROM THE UPPER\nLEVELS OF A SPORTS\nSTADIUM IN ANAHEIM.\nCOCAINE WAS PRESENT IN\nHIS SYSTEM.\nAPR-20-1989 16:22 FROM\nTO\n1-202-456-6218\nP.04\nA 39 YEAR OLD WELDER DIED\nAS A RESULT OF A TRAFFIC\nACCIDENT WHEN THE AUTO\nHE WAS DRIVING COLLIDED\nWITH A PICKUP TRUCK IN\nCOSTA MESA. COCAINE,\nMORPHINE AND CODEINE\nWERE PRESENT IN HIS\nSYSTEM.\nA 27 YEAR OLD FEMALE\nHOMEMAKER DIED OF AN\nOVERDOSE OF\nCOCAINE IN FULLERTON.\nAPR-20-1989 16:23 FROM\nTO\n1-202-456-6218\nP.05\nA 25 YEAR OLD FEMALE\nMACHINIST\nOVERDOSED IN SANTA ANA\nDUE TO THE COMBINED\nEFFECTS OF COCAINE,\nMORPHINE AND CODEINE.\nA 35 YEAR OLD FEMALE\nSECRETARY\nOVERDOSED IN GARDEN\nGROVE DUE TO THE\nCOMBINED EFFECTS OF\nMORPHINE AND CODEINE.\nAPR-20-1989 16:23 FROM\nTO\n1-202-456-6218\nP.06\nA 26 YEAR OLD FEMALE\nRETAIL CLERK DIED OF AN\nOVERDOSE OF\nCOCAINE IN PLACENTIA.\nA 34 YEAR OLD MALE\nMANUFACTURING LEADMAN\nOVERDOSED\nIN SANTA ANA DUE TO THE\nCOMBINED EFFECTS OF\nCOCAINE, MORPHINE AND\nCODEINE.\nAPR-20-1989 16:24 FROM\nTO\n1-202-456-6218\nP.07\nA 28 YEAR OLD MALE\nGENERAL LABORER\nOVERDOSED\nIN SANTA ANA DUE TO THE\nCOMBINED EFFECTS OF\nCOCAINE, MORPHINE AND\nOTHER DRUGS.\nA 35 YEAR OLD MALE\nPAINTER\nOVERDOSED\nIN LAGUNA HILLS DUE TO\nTHE COMBINED EFFECTS OF\nCOCAINE, MORPHINE AND\nOTHER DRUGS.\nAPR-20-1989 16:24 FROM\nTO\n1-202-456-6218\nP.08\nA 40 YEAR OLD FEMALE\nFASHION CONSULTANT\nOVERDOSED\nIN SANTA ANA DUE TO THE\nCOMBINED EFFECTS OF\nMORPHINE AND CODEINE.\nA SANTA ANA INFANT WAS\nDELIVERED STILLBORN WITH\nA FATAL LEVEL OF COCAINE\nIN ITS SYSTEM DUE TO\nMATERNAL COCAINE INTOX-\nICATION.\nAPR-20-1989 16:24 FROM\nTO\n1-202-456-6218\nP.09\nA 26 YEAR OLD MALE\nCOMMODITIES BROKER DIED\nOF AN\nOVERDOSE OF COCAINE IN\nLAGUNA HILLS.\nstop\nAPR-20-1989 16:25 FROM\nTO\n1-202-456-6218\nP.10\nA 1 MONTH OLD MALE INFANT\nDIED IN COSTA MESA OF\nCOCAINE INTOXICATION. IT\nREMAINS UNDETERMINED\nHOW THE COCAINE WAS\nINTRODUCED INTO THE\nINFANT'S SYSTEM.\nstop\nAPR-20-1989 16:25 FROM\nTO\n1-202-456-6218\nP.11\nA 27 YEAR OLD MALE BOAT\nREFINISHER DIED OF AN\nOVERDOSE OF\nCOCAINE IN PLACENTIA.\nTOTAL P.11\nAPR-24-1989 11:14 FROM\nTO\n1-202-456-6218\nP.01\nSHERIFF-CORONER DEPARTMENT\nCOUNTY OF ORANGE\nCALIFORNIA\nBRAD GATES\nSHERIFF-CORONER\nTELECOPY TRANSMITTAL SHEET\nDATE: 4/24/89 TIME: 12:07 NUMBER OF PAGES:\nTO: Stephanie Blessey NAME\nLOCATION\nPHONE NUMBER\nFROM: Sheriff Brad NAME Gates\nOrange County LOCATION sheriff\n(714) 647-1800 (714)\nPHONE NUMBER\nMESSAGES: on Fomlie\nVerification on follow will\nIF THERE ARE ANY QUESTIONS, PROBLEMS OR YOU DON'T RECEIVE ALL OF THE PAGES\nCALL (714) 550- 9223\n550 N. FLOWER STREET\nP.O. BOX 449\nSANTA ANA, CALIFORNIA 92702\n(714)647-7000\nSUE \" (511/88)\nAPR-24-1989 11:14 FROM\nTO\n1-202-456-6218\nP.02\nCAO REVIEW\nX\nCONSENT\nX\nYES\nConcur\nNO\nDo Not Concur\nExempt\nTO: BOARD OF SUPERVISORS COUNTY OF ORANGE\nCONTACT FOR INFORMATION\nFROM: SHERIFF-CORONER DEPARTMENT\nRaul Ramos,\nUndersheriff\n647-1801\nPHONE\nMEETING DATE\nSUBJECT\nSUPV. DIST.\nApproval of Agreement with the Federal Government for Transfer\n12-1-87\nAll\nof Real Property Received from Federal Forfeiture Activities\nSUMMARY OF REQUEST (Description for agenda)\nThe Sheriff-Coroner requests approval of the Agreement with the Federal Government to transfer\nreal property (Rancho Del Rio) received from federal drug forfeiture activities to the County\nto be used for a training center and multi-use conference facility.\nADDITIONAL DATA:\nThe Federal Government has seized approximately 213 acres of property in Riverside County which\nwas used for illegal activities. On June 26, 1985 forfeiture action against the property com-\nmenced in the United States District Court for the Central District of California. After\nnumerous legal transactions the property is now available for transfer to the County of Orange.\nThe County, through its Sheriff, was instrumental in the investigation into the illegal\nactivities which formed the basis of the forfeiture action against the property. The\nShoriff recommends the property be accepted by the County, pursuant to the equitable sharing\nP.. visions of the Federal Comprehensive Crime Control Act of 1984.\n(Continued)\nPREVIOUS RELEVANT BOARD ACTIONS ON THIS SPECIFIC ITEM:\nNone\nFUNDING SOURCE(S)\nCURRENT YEAR COST\nANNUAL COST\nBUDGETED?\nYES\nNO\nN/A\nSee narrative\nSee narrative\nN/A\nWILL PROPOSAL REQUIRE ADDITIONAL PERSONNEL?\nCONSISTENT WITH BOARD POLICY?\n&\nNO IF YES, STATE NUMBER\nPERMANENT\nLIMITED TERM\nYES\nX\nRECOMMENDED ACTION\nNEW ITEM OR EXCEPTION\n1. Approve the transfer of real property (Rancho Del Rio), Facility No. GA 1227, Parcel\nNo. 14, consisting of approximately 213 acres, from federal forfeiture activity to the\nCounty of Orange, to be used for a training center and multi-use conference facility with\nprograms and activities for local, County, State and Federal law enforcement agencies.\n2. Authorize the Clerk of the Board to execute the original and duplicate Acquisition Contract\non behalf of the Board of Supervisors and return the duplicate to GSA/Real Estate Division.\n(Continued)\nCONCURRENCES (If applicable)\nATTACHMENTS\nGeneral Services Agency\nCounty Counsel\nAgreement (Acquisition Contract)\nRight-of-Way Map\n11-22-87\nBand Hots\nDATE\nAGENCY OR DEPARTMENT AUTHORIZED REPRESENTATIVE\nBRAD GATES,\nSHERIFF-CORONER\nAPR-24-1989 11:15 FROM\nTO\n1-202-456-6218 P.03\nThe Sheriff further recommends that the property be used as a training\ncenter and sulti-use conference facility with programs and activities\navailable to local, County, State and Federal law enforcement\nagencies.\nAs part of this Agreement, and after the County receives title to the\nproperty, the County 1s required to reimburse the Federal Covernment\nover a six (6) month period for the cost incurred by the United States\nMarshal (approximately $385,000) in connection with its seizure and\nmaintenance. Cost reimbursement will be out of the Sheriff's Marcetic\nProgram, FUBU 1161.\nAn \"all inclusive Trust Deed\" for $218,000 is currently attached to\nthe Trust Deed. The status of this Trust Deed has not been\ndetermined.\nThe County will pay or satisfy all State, county or local taxes that\nhave or will accrue on the property where exceptions may not be\navailable under law. In addition, the County will pay recording fees,\ntrust deed clearance fees, title insurance fees and all necessary\nclosing costs. GSA/Real Estate has estimated the value of Rancho Del\nRio at $1.2 million.\nAs referenced in the Agreement, in the event the County is unable to\nuse property as intended, the County would be required to sell the\nproperty and use the proceeds in a manner consistent with the Federal\nGuidelines. Comprehensive Crime Control Act of 1984 and the Attorney General's\n(\nThe County is required to obtain all necessary legal approval for the\ndevelopment of the property as a law enforcement facility within three\n(3) years from the date of the contract. If the legal approval isn't\nobtained within the three years, the County will sell the property for\n\"fair market value* and use the proceeds for County law enforcement\npurposes.\nLegal Requirements\nCompliance with CEQA: Categorically exempt (Class 1) from provisions\nof CEQA.\nGeneral Plan: This project is in conformance with the General Plan of\nthe County of Riverside.\nRECOMMENDED ACTION: (Continued)\n3. Direct the Auditor-Controller to reimburse the Federal Government\nfrom PUBU 1161, in an amount not to exceed $385,000, for the cost\nincurred by the United States Marshal in connection with the\nseizure and maintenance of the property.\n4. Direct the Auditor-Controller to issue additional warrants, from\nFUBU 1161, as required for title insurance fees, reconveyance\nfees, trustee's fees, and other related closing costs. The\nwarrants are to be issued in accordance with instructions from\nGSA/Real Estate that adequate title has been obtained.\nTO\n1-202-456-6218\nP.04\nAPR-24-1989 11:15 FROM\nRANCHO,\nRIVERSIDE ORANGE COUNTY\n14\nRANCHO 28 BORY. BDRY.\n33\nDIEGO COUNTY NAN\nLINE\n20\nPARCEL 14.1:\nACCESS TO ORTEGA HWY. FROM PCL. 14 OVER\nSECTIONS 29, 30, 32, 33 IN TOWNSHIP 7 SOUTH,\nRANGE 6 WEST, S.B.B.M. AS SHOWN ON AMAP IN\n62\nBOOK 9. PAGE 15, RECORD OF SURVEY, IN OFFICE OF!\nTHE RECORDER OF ORANGE COUNTY, PER ESMT.\nRECORDED IN BOOK 12412, PAGE 1259, OFFICIAL\nRECORDS IN OFFICE OF SAID RECORDER AND\nCOUNTY (LOCATION NOT DEFINED).\nMIS\nSION\nT7S\n5\n30\nE\nORTEGA HIGHWAY\nAREA OF PARCEL\n14 . 213.56 ACRES =\nREW\n31\nPER GOVERNMENT SURVEY\nR7W\nMAP ON FILE IN U.S. SURVEYOR\n/\nGENERAL'S OFFICE, SAN FRAN-\nCISCO, NOV. 11, 1914.\nVIEJO\n36\nP\nSCALE: = 2000'\nRANGE COUNTY ENVIRONMENTAL MANAGEMENT AGENCY - RIGHT OF WAY ENGINEERING\nRIGHT OF WAY MAP - COMPILED FROM PUBLIC RECORDS\nLD. NO.\nE.O. NO.\nJECT: RANCHO DEL RIO - GA1227-14\nBY: SMH\nCHKD. BY:\nDATE: 5-18-87\nEST.\nREC. DATE:\nD.R.\nAPR-24-1989 11:16 FROM\nTO\n1-202-456-6218\nP.05\n1\n2\n3\nACQUISITION CONTRACT\n4\n5\nTHIS AGREEMENT is entered into this\nday of\n6\n1987, by and between the United States of America, hereby represented\nby Robert C. Bonner, United States Attorney, Central District of\n7\nCalifornia, hereinafter referred to as \"FEDERAL GOVERNMENT,\" and the\nCounty of Orange, hereinafter referred to as \"COUNTY.\"\n8\nRECITALS\n9\nI.\nFEDERAL GOVERNMENT has seized approximately 213 acres of land\n10\n(Property), shown on Exhibit A, attached hereto, located in\nRiverside County which Property was used for illegal activities.\n12\nII.\nFEDERAL GOVERNMENT commenced forfeiture action against the\n12\nProperty in the United States District Court for the Central\nDistrict of California on June 26, 1985. A Default Sudgment of\n13\nForfeiture, condemning and forfeiting the Property to the United\nStates of America, was entered by the District Court on\n14\nOctober 9, 1985, and an Amended Default Judgment was subsequent-\nly entered by the Court on August 13, 1986. Subsequent thereto,\n15\na Motion to Set Aside Default was filed in the action by an\nalleged claimant to the Property. This Motion was denied by the\n16\nUnited States District Court. Subsequent to said denial, the\naforesaid alleged claimant appealed the denial of its Motion to\n17\nthe United States Court of Appeals for the Ninth Circuit. This\nappeal has been ordered dismissed by the Court,\n18\nIII. COUNTY, through its Sheriff-Coroner, was instrumental in the\n19\ninvestigation into the illegal activities which formed the basis\nof the aforesaid forfeiture action against the Property.\n20\nPursuant to the equitable sharing provisions of the Comprehen-\nsive Crime Control Act of 1984, COUNTY desires to have the\n21\nProperty transferred in fee to COUNTY,\n22\nIV.\nCOUNTY plans to use Property as a law enforcement training\ncenter and multi-use conference facility with programs and\n23\nactivities available to local, County, State and Federal law\nenforcement agencies. In the event COUNTY is unable to use\n24\nProperty as such, COUNTY would sell Property and use the pro-\nceeds in a manner consistent with the Federal Comprehensive\n25\nCrime Control Act of 1984 and the Attorney General's Guidelines\nin connection therewith.\n26\nNOW, THEREFORE, in consideration of these recitals and other consid-\n27\nerations herein set forth, it is agreed as follows:\n28\n1.\nFEDERAL GOVERNMENT shall:\nBS12/039\n1.\n11/17/87\nAPR-24-1989 11:16 FROM\nTO\n1-202-456-6218\nP.06\n1\nA.\nExecute and deliver to County of Orange, General Services\n2\nAgency/Real Estate Division, a properly signed, recordable\nQuitclaim Deed in the form of Exhibit B, attached hereto,\n3\nconveying Property to COUNTY, when all demands due under\nthis contract have been deposited into COUNTY's escrow as\n4\ndescribed in Clause 2C below. Such demands are more fully\nset forth in Clauses 2D and 3A below.\n5\nB.\nRecord whatever documents may be necessary to establish\n6\nFEDERAL GOVERNMENT's title to Property, and to establish\nits immunity from local taxation pursuant to California\n7\nRevenue and Taxation Code Section 5081 (a) during the period\nof federal ownership.\n8\n2.\nCOUNTY shall:\n9\nA.\nPay to FEDERAL GOVERNMENT the sum equal to those costs\n10\nincurred by the United States Marshal in connection with\nits seizure and maintenance of the Property, which sum\n11\nshall be paid within six (6) months after the delivery of\nthe Quitclaim Deed as provided in Clause 1(A), above.\n12\nAs a separate matter unconnected with the transfer of the\n13\nProperty referred to herein, COUNTY hereby states its\nintention to enter into a contract with the FEDERAL GOVERN-\n14\nMENT to provide up to 15 beds, on a daily basis, in its\njail facilities, for prisoners in Federal custody, at a\n15\nflat rate of $60.00 per day, per bed, inclusive of booking\ncosts. The fee herein described shall be paid COUNTY as\n16\ncompensation for the use of up to ten (10) beds per day,\nbut shall be paid irrespective of such use. FEDERAL\n17\nGOVERNMENT may use up to five (5) additional beds at an\nadditional daily charge of $60.00 per day, per bed.\n18\nB.\nPrepare and deliver to FEDERAL GOVERNMENT for execution the\n19\nQuitclaim Deed covering the property rights to be conveyed\nto COUNTY.\n20\nC.\nProvide escrow services which services shall be performed\n21\nby COUNTY's GSA/Real Estate Division to assist in the\nconsummation of COUNTY's acquisition of Property.\n22\nD.\nIn addition to 2A above, pay those fees, charges and other\n23\ndemands, necessary to accomplish the transfer of real\nproperty contemplated herein. COUNTY will also pay, or\n24\nsatisfy, all state, county, or local taxes that have\naccrued, or will accrue, on the property, for which ex-\n25\nemption may not be available under applicable law.\n26\nB.\nPay recording fees, trust deed clearance fees, title\ninsurance fees, if such insurance is desired by COUNTY, and\n27\nall other closing costs relative to this transaction as\napproved by the Manager, GSA/Real Estate Division.\n28\n11\nBS12/039\n2.\n11/20/87\nAPR-24-1989 11:17 FROM\nTO\n1-202-456-6218\nP.07\n1\nF.\nObtain all necessary legal approvals for the development of\nProperty as a law enforcement facility within three (3)\nyears from the date of this contract. If such legal\n3\napprovals are not obtained in that period of time, COUNTY\nshall sell Property for fair market value and use the\n4\nproceeds, less ten (10) percent thereof which is to be paid\nto the FEDERAL GOVERNMENT as set forth in subparagraph G\n5\nhereto, for COUNTY's law enforcement purposes. COUNTY\nagrees to use its best efforts to consummate said sale\n6\nwithin four (4) years from the date of this contract. The\ntime limit stated herein is subject to extension upon\n7\nwritten agreement between the parties hereto. For purposes\nof this agreement, the term \"fair market value\" is defined\nB\nas the sales price resulting from an arms-length trans-\naction. The FEDERAL GOVERNMENT reserves the right to\n9\napprove the adequacy of the sale price, in the event that\nsaid property is sold.\n10\nG.\nPay to FEDERAL GOVERNMENT ten (10) percent of the sale\n11\nprice of the Property, if Property is not developed by\nCOUNTY as a law enforcement facility, and is, instead, sold\n12\nby COUNTY. The FEDERAL GOVERNMENT may waive or reduce the\namount of this payment if it is satisfied that the property\n13\nis sold to a non-profit law enforcement support group for\nuse solely for those purposes set out in paragraph IV\n14\nherein above.\n1\\\nH.\nIf the property is sold for use as a law enforcement\nfacility the purchasers shall take title subject to any\n16\nencumbrances, liens, assessments, taxes, conditions,\ncovenants or restrictions of record or otherwise, together\n17\nwith the added conditions that:\n18\n1. Within three (3) years after record title is trans-\nferred from COUNTY all work required to construct a law\n19\nenforcement facility satisfactory to COUNTY shall be\ncomplete; and\n20\n2. Prior to the expiration of fifty (50) years after\n21\ncompletion of construction of the law enforcement facility\nthe grantees shall not use the Property, or allow it to be\n22\nused, for other than law enforcement purposes, as such are\ndetermined by COUNTY.\n23\nThe conveyance from COUNTY to a purchaser of the Property\n24\nshall contain the requirements specified in clauses (1) and\n(2) above, and specify that violations of either condition\n25\nshall give rise in the COUNTY to an automatic reversion;\nthe conditions shall not be construed as conditions\n26\nsubsequent.\n27\n3.\nIt is mutally agreed that:\n28\nA.\nThe sole obligations of the FEDERAL GOVERNMENT under this\ncontract are set forth in paragraphs 1.A and 1.B above.\nBS12/039\n3.\n11/20/87\nAPR-24-1989 11:18 FROM\nTO\n1-202-456-6218\nP.08\n1\nThe FEDERAL GOVERNMENT shall have no financial obligation\nof any kind under this contract.\n3\nB.\nIf COUNTY by its Manager, GSA/Real Estate Division, deter-\nmines that, because of any title flaw, lien, encumbrance,\n4\nassessment, lease, (recorded or unrecorded), and/or taxes,\nthe quality of title to be conveyed is insufficient for\n5\nCOUNTY purposes, said Manager may by written notice to\nFEDERAL GOVERNMENT, terminate this contract. This right of\n6\ntermination must be exercised by COUNTY prior to the\npayment by it of any amount referred to in paragraph 2A\n7\nhereinabove.\n8\nc.\nThe obligations of the County of Orange under this contract\nare subject to complying with the applicable requirements\n9\nof the Government Code of the State of California. It is\nunderstood, however, that the Orange County Board of\n10\nSupervisors will forthwith authorize any necessary publica-\ntion of a Notice of Intention to Purchase Property. If,\n11\nupon the hearing pursuant to said Notice of Intention to\nPurchase Property, the Board of Supervisors of the County\n12\nof Orange shall determine that it is not in the public\ninterest to purchase Property, this contract shall become\n13\nnull and void and the parties hereto shall be relieved of\nall obligations hereunder.\n14\nD.\nThe various headings in this contract, the number thereof,\nand the organization of the contract into separate sections\nORANGE COUNTY\nand paragraphs are for the purposes of convenience only and\n16\nshall not be considered otherwise.\n17\nE.\nAll written notices pursuant to this contract shall be\naddressed as set forth below or as either party may here-\n18\nafter designate by written notice and shall be personally\ndelivered or sent through the United States mail.\n19\nTO: FEDERAL GOVERNMENT\n20\nTO: COUNTY\n21\nRobert c. Bonner\nCounty of Orange\n22\nUnited States Attorney\nGSA/Real Estate Division\nUnited States Courthouse\nP.O. Box 4106\n23\n12th Floor\nSanta Ana, CA 92702\n312 North Spring Street\n(714) 567-5003\n24\nLos Angeles, CA 90012\n11/31\n25\nUnited States Marshal\nCentral District of California\n26\nUnited States Courthouse\n312 North Spring Street\n27\nLos Angeles, California 90012\nand\nBS12/039\n4.\n11/17/87\nAFR-24-1989 11:18 FROM\nTO\n1-202-456-6218\nP.09\n1\nCounty of Orange\nSheriff-Coroner Department\n2\nP.O. Box 449\n(\nSanta Ana, CA 92702\n(714) 834-3000\n4\n4.\nThis contract includes the following, which are attached hereto\n$\nand made a part hereof:\n6\nA.\nExhibit A - Map\n7\nB.\nExhibit B - Quitclaim Deed\nS\n\"\n9\n11\n10\n\"\n11\n11\n12\n\"\n13\n\"\n14\n\"\nBRANSE COUNTY\n15\n\"\n16\n\"\n17\n11\n18\n\"\n19\n11\n20\n\"\n21\n\"\n22\n11\n23\n\"\n24\n\"\n25\nF0192-210 (9/17)\n\"\n26\n\"\n27\n\"\n\"\nBS12/039\n5.\n11/17/87\nAPR-24-1989 11:19 FROM\nTO\n1-202-456-6218\nP.10\n1\nIN WITNESS WHEREOF, the parties have executed this contract the day and\n2\nyear first above written.\n3\nFEDERAL GOVERNMENT\n4\nUNITED STATES OF AMERICA\ns\nBy\n6\nRobert C. Bonner\nUnited States Attorney\n7\nB\n9\nBy United Julio Gonzales States Marshal\nAPPROVED AS TO FORM:\n10\nCounty Counsel\n\"\nBy\n12\nRECOMMENDED FOR APPROVAL\n13\nSheriff-Coroner Department\n14\nBy Brad Mater\n15\nRECOMMENDED FOR APPROVAL\n16\nGeneral Services Agency\nFacilities & Real Property\n17\nReal Estate Division\n18\n19\nBY Real Carolyn C Property Agent amain\nto\nSIGNED AND CERTIFIED THAT A COPY OF\nCOUNTY\nTHIS DOCUMENT HAS BEEN DELIVERED TO\n11\nTHE CHAIRMAN OF THE BOARD\nCOUNTY OF ORANGE\n12\nBy\n3\nLINDA D. ROBERTS\nChairman, Board of\nClerk of the Board of Supervisors\nof Orange County, California\nSupervisors\n14\n$\n(NO OBLIGATIONS OTHER THAN SET FORTH HEREIN WILL BE RECOGNIZED.)\n6\n7\nB\nBS12/039\n11/20/87\n6.\nTOTAL P.10"
}