MEMORANDUM

TO:	Guy K. Zimmerman Assistant Inspector General for Audit Office of the Inspector General
FROM:	Douglas N. Biales, Chief Executive Policy and Strategic Planning Staff Office of the Deputy Administrator
SUBJECT:	DEA’s Response to the OIG’s Draft Report: Audit of the Drug Enforcement Administration’s International Operations

The Drug Enforcement Administration (DEA) appreciates the time and investment of the Office of the Inspector General (OIG) in the one-year audit of DEA’s International Operations. Inspector General Glenn A. Fine’s memorandum dated September 19, 2005, included the audit objective to assess “the outcomes and accomplishments of foreign operations.” Additionally, the first objective of the Working Draft Report was to “review the performance and strategic success of the DEA’s foreign activities and offices…” Furthermore, the first objective of the Draft Audit Report was to “review the DEA’s foreign office performance.” However, DEA has reviewed the Draft Audit Report, and notes that it focuses primarily on administrative as opposed to operational issues.

Unfortunately, with its limited focus on foreign office enforcement accomplishments, the OIG did not provide an accurate assessment of DEA’s international operations and instead conducted an audit of administrative performance.

Report’s Focus and Primary Objective

The DEA expressed concern at the exit conference on September 27, 2006, that the OIG Working Draft Report lacked an adequate review of DEA’s international operations. Consequently, the OIG requested a comprehensive analysis of DEA’s international activities (Attachment #1), but issued the Draft Audit Report prior to receiving DEA’s analysis.

The attached comprehensive analysis reflects DEA’s foreign office performance accomplishments and operational activities. It includes examples of Consolidated Priority Target (CPOT) investigations; the disruption and dismantlement of Priority Target Organizations (PTOs); the impact of foreign operations; institution building in Afghanistan, Mexico, and Colombia; counterterrorism efforts; financial investigations; precursor chemical initiatives; on-line pharmacy investigations; intelligence collection and sharing; multi-lateral collaboration; and extradition successes. Each of these accomplishments is directly linked to the goals and objectives in DEA’s Strategic Plan, DOJ’s Strategic Objective to “Reduce the Threat, Trafficking, Use and Related Violence of Illegal Drugs” and supports the President’s National Drug Control Strategy, which seeks to reduce illegal drug use by implementing Priority III, “Disrupt the Market.” Highlights include the following:

• Increased by 22 percent PTO investigations linked to terrorist organizations from 82 active investigations in FY 2005 to 100 active investigations in FY 2006.

• Denied total revenue of $1.6 billion from drug trafficking and money laundering organizations through asset and drug seizures in FY 2006.

• Sustained DEA’s focus on DOJ’s CPOT List.

• Successfully contributed to the reduction in drug use.

• Sustained focus on DEA’s successful programs in Afghanistan and took additional measures to focus attention on the counternarcotics threat in that country.

• Continued to lead and expand enforcement efforts involving Operation Containment, a DEA-led multi-national law enforcement initiative designed to reduce the flow of Afghanistan heroin into world markets, prevent the country from becoming a major heroin supplier to the United States, and disrupt drug-related terrorist activities that could hamper the long-term stabilization of the Afghanistan Government.

• In October 2005, in part due to DEA’s negotiations with the Afghan Minister of Interior, the Government of Afghanistan extradited CPOT Haji Baz MOHAMMED to the United States, which marked the first extradition in history between the two countries. MOHAMMED and his associates were responsible for manufacturing and transporting hundreds of kilograms of Southwest Asian heroin from Afghanistan and Pakistan into the United States.

• Collected and shared intelligence with U.S. military and coalition partners in Afghanistan, which directly averted hostile acts against U.S. personnel and interests inside of Afghanistan.

• Developed and implemented the successful multi-agency International Drug Flow Prevention Strategy known as Operation All Inclusive. This multi-lateral strategy is designed to cause major disruption to the flow of drugs, money, and chemicals between source zones and the United States through the execution of joint enforcement operations that attack the chokeholds in the main transportation zone arteries and support infrastructure nodes of the drug trade.

• Developed a joint strategy with Mexico to target those who traffic in and produce methamphetamine and the chemicals utilized for its manufacture.

• Expanded DEA’s intelligence program and assumed new intelligence responsibilities and functions in 2006 to support the global war on terror.

• In 2006, DEA achieved the appointment of a DEA representative to the National Security Council Office of Combating Terrorism, which is part of the IC. As a result, DEA is now better positioned to advance the counter-drug agenda and to support national security and homeland defense.

• Conducted Operation Cyber Chase, which concluded with the April 2006 conviction of Akhil BANSAL, and the dismantlement of his international pharmaceutical controlled substance trafficking organization. Operation Cyber Chase resulted in 25 arrests in 4 countries and the seizure of 10 million dosage units of pharmaceutical controlled substances, 231 pounds of Ketamine, and $8.5 million in assets. This organization was responsible for the illegal distribution of 2.5 million dosage units of controlled substances per month to more than 100,000 customers without a medical evaluation.

• Coordinated significant investigations, arrests, indictments, extraditions and convictions which resulted in the disruption and dismantlement of the most significant drug trafficking organizations around the world.

• Coordinated the OCDETF investigation that led to CPOTs Miguel and Gilberto RODRIGUEZ-OREJUELAs’ guilty plea and agreement to forfeit $2.1 billion on September 26, 2006. The RODRIGUEZ-OREJUELA brothers ran the Cali Cartel in Colombia that was responsible for importing more than 200 tons of cocaine into the United States over the last two decades.

• Facilitated the arrest of CPOT Francisco Javier ARELLANO Felix on August 14, 2006, by United States Coast Guard authorities. The Tijuana, Mexico-based organization, run by ARELLANO Felix, was one of the most powerful and violent trafficking groups in Mexico, responsible for the importation of tons of cocaine, heroin, methamphetamine, and marijuana into the United States and more than 100 drug-related murders in the United States and Mexico.

• Participated in an unprecedented OCDETF Strike Force investigation that culminated in the indictment of 50 leaders of the FARC narco-terrorist organization in Colombia, which was responsible for supplying more than half of the world’s cocaine.

Annual Performance Plans

On page viii in the Executive Summary of the Draft Audit Report, the OIG stated that DEA did not have current procedures for developing annual performance plans for its foreign offices because it has been rewriting the plan since FY 2004. As a result, the OIG concluded that DEA has not developed foreign field strategies and operational objectives to complement its organization-wide strategic plan.

During the audit and again at the exit conference, the OIG was informed that DEA’s Executive Policy and Strategic Planning Staff (ADS) had prepared Foreign Region Management Plan (FRMP) guidelines; however, ADS representatives were not interviewed about the development or distribution of the plan. Instead, after providing a copy of the plan to the OIG after the exit conference, the OIG amended the language in its Draft Audit Report and acknowledged the existence of a “sound performance planning instrument.” Also, the OIG went on to criticize DEA by stating that an executive manager acknowledged that its new regional planning instrument would still be deficient because it had not yet established practices for developing performance plans at the country office level. Even after informing the OIG that the region plan was composed of individual country office plans and that ADS could not identify the manager who allegedly stated that the planning protocol was deficient, the OIG did not change the inaccurate language in their report. In summary, because the OIG did not interview appropriate personnel about DEA’s performance planning instruments, some of the information in their report remains inaccurate.

Principal Objectives for Working with Foreign Counterpart Agencies

On page iii in the Executive Summary of the Draft Audit Report, the OIG identifies DEA's five principal objectives for working with foreign counterpart agencies; (1) participate in bilateral investigations, (2) cultivate and maintain quality liaison relations, (3) promote and contribute to foreign institution building, (4) support intelligence gathering and sharing efforts, and (5) provide training opportunities. In their review, the OIG did not address DEA's foreign institution building or intelligence efforts, both critical parts of DEA's international mission. The lack of attention to these principal objectives contributed to an administratively focused audit report which does not adequately address DEA’s foreign office performance.

Sensitive Investigative Units (SIUs)

Prior to the OIG audit of DEA International Operations, the DEA Office of International Programs (OI) conducted a self-imposed SIU Program-wide review. During this review, OI identified several areas in need of attention. During the OIG entrance interview and thereafter, information was provided to OIG regarding this internal assessment as well as our findings, many of which were re-characterized as recommendations by the OIG as areas in need of improvement. The mission of the SIU Program is to cooperatively train, equip, and support specialized units within host nation police and military forces, with law enforcement authority, to develop and share intelligence-driven targeting in order to disrupt and dismantle major international drug trafficking organizations. While the OIG did recognize the critical nature of the operations conducted with the SIUs, the OIG failed to properly recognize the SIU program as a successful and critical foreign institution building effort.

Personnel Utilization Data /Investigative Work Hours

On page vii in the Executive Summary of the Draft Audit Report, the OIG stated that in their discussions with DEA Headquarters management on tools used to evaluate foreign office operational activity, personnel utilization data was not noted as a measure used in such assessments. According to DEA’s Chief of Operations (OC), who evaluates foreign office performance, many executive level managers use this important data to determine how DEA’s foreign office personnel spend their time on CPOT, PTO, financial and other types of investigative activity.

Imprest Fund Transactions

The OIG reviewed a sample of 233 imprest fund transactions that allegedly contain numerous discrepancies including missing supporting documentation, omitted signatures, and untimely clearing of advanced funds. At the exit conference, the DEA requested that the OIG provide copies of the fiscal documents to validate the accuracy of the OIG’s findings. The OIG subsequently issued their Draft Audit Report before providing the requested documents. When a portion of the documents were finally received, the DEA found that OIG auditors had incorrectly interpreted policy, assessed documents, and cited deficiencies. As a result, many of the issues identified by the OIG are not errors and should be eliminated or reduced, and technical changes need to be made to the language in the report (see Attachment 2 - Specific Editorial Comments). In addition, OIG auditors stated that DEA Agents failed to get proper authorization for 10 out of 12 operational advances sampled. The DEA has not been provided the requested documents; therefore, DEA cannot validate the accuracy of this finding.

Summary

It is critical for the OIG to work closely with DEA while conducting audits in order to ensure that appropriate personnel are interviewed, policy is properly interpreted and assessed, accurate and comprehensive information is obtained and reviewed, and issues such as the ones discussed above are resolved prior to the issuance of the Draft Audit Report. It is also important that a report not be issued until all information requested by the DEA and/or OIG is provided and reviewed. The OIG and DEA working together with a common goal of conducting an accurate assessment of the agency’s programs will greatly facilitate the preparation of future reports that are balanced, thorough, and objective.

DEA has achieved noteworthy success by impacting the command and control of major international drug/chemical trafficking and money laundering organizations, reducing the supply of illicit drugs, and contributing to counterterrorism efforts throughout the United States and around the world. This success can be attributed to the many operations and initiatives carried out by DEA’s international offices. Due to the importance of its foreign program, DEA respectfully requests that appropriate consideration be given to the comments provided in this memorandum and to the attached analysis of the agency’s international operations and specific editorial comments.

Attachments

1 - Analysis of DEA’s International Operations
2 - DEA Editorial Comments
3 - DEA Action Plan
4 - CFO Bulletin 2006-13

OIG’S AUDIT OF DEA’S INTERNATIONAL OPERATIONS
Performance Accomplishments and Operational Activities

Performance Accomplishments

At the core of DEA’s strategic performance is the disruption and dismantlement of drug trafficking organizations operating at the international, national and local levels. DEA has achieved noteworthy success impacting the command and control of these major international drug/chemical trafficking and money laundering organizations, reducing the supply of illicit drugs and contributing to counterterrorism efforts throughout the United States and around the world. This success can be attributed, in part, to the many operations and initiatives carried out by DEA’s international offices. The cornerstone of DEA’s overall strategy is an international focus that targets the major drug trafficking and money laundering organizations responsible for this nation’s illegal drug supply. During the past year, DEA, working in conjunction with our foreign counterparts, aggressively focused its efforts on priority targets linked to the DOJ’s Consolidated Priority Target List (CPOTs). The Department measures effectiveness in accomplishing its goal to reduce the availability of drugs partly by tracking the number of organizations disrupted or dismantled. The performance accomplishments and operational activities outlined below demonstrate some of DEA’s successes and are directly linked to the DEA Administrator’s Vision and DOJ’s Strategic Objective to “Reduce the Threat, Trafficking, Use and Related Violence of Illegal Drugs.” DEA’s accomplishments also support the President’s National Drug Control Strategy, which seeks to reduce illegal drug use, by implementing Priority III, “Disrupt the Market.”

Increased the agency’s total Priority Target Organization (PTO) disruptions and dismantlements, surpassing past year records. Of the 5,238 total PTO investigations historically recorded as of September 13, 2006, 1,413 have been dismantled, a 40 percent increase when compared to the 1,007 total PTOs historically dismantled at the close of FY 2005. Additionally, a total of 1,076 PTOs have been disrupted, a 43 percent increase when compared to the 753 total PTOs historically disrupted at the close of FY 2005. (DOJ I, II; DEA 1, 2, 3, 6)

Increased PTO investigations linked to terrorist organizations by 22 percent, from 82 active investigations during FY 2005 to 100 active investigations during FY 2006. In FY 2006, seven PTOs linked to terrorism were disrupted and 8 PTOs were dismantled. Additionally, DEA helped link 37 percent (17) of FY 2006 Consolidated Priority Organization Targets (CPOTs) to terrorist organizations and contributed to the successful indictment of 94 percent of those terrorist-linked CPOTs. (DOJ I, II; DEA 1, 2, 3, 6)

Sustained DEA’s focus on CPOTs. DEA’s participation in the CPOT initiative has led to the indictment of 39 of the 46 CPOTs (85 percent), the arrest of 17 (37 percent), and the placement in custody of 15 (31 percent). As of June 30, 2006, 44 of the 46 organizations on the FY 2006 CPOT list (96 percent) had active PTO investigations directed at or linked to them. Of the 2,227 active PTO investigations currently approved, 458 are directly linked to CPOTs (21 percent). (DOJ I, II; DEA 1, 2, 3, 6)

Denied total revenue of $1.6 billion from drug trafficking and money laundering organizations through asset and drug seizures in FY 2006. DEA established a five-year plan to take $3 billion from drug trafficking organizations by FY 2009. The asset seizures in FY 2006 reflect seizures only through August 2006, and already exceed the FY 2006 goal by $100 million. This plan is based on the concept that taking the profit out of the drug trafficking industry will reduce the availability of drugs worldwide. (DOJ I, II; DEA 1, 2, 3, 6)

Increased financial PTO investigations from 117 active cases in FY 2005 to 154 active cases in FY 2006, a 32 percent increase. There was a 10 percent increase in cases initiated (from 69 in FY 2005 to 76 in FY 2006); 78 percent increase in cases disrupted (from 9 in FY 2005 to 16 in FY 2006); and 75 percent increase in cases dismantled (from 8 in 2005 to 14 in FY 2006).

Continued to attack the financing of the illegal drug trade through implementation of the DEA Money Trail Initiative. This financial crime strategy focuses on identifying and disrupting the flow of money back to the sources of drug supply, thereby crippling the ability of criminals to operate. The successes of the Money Trail Initiative include Operations Choque, Moneyclip, Roadtrip, Goldmine, Frontera, Imperial Emperor, and Three Stars. As of July 10, 2006, the Money Trail Initiative has resulted in 418 arrests and the seizure of 9,749 kilograms of cocaine, 59,646 kilograms of marijuana, 9 kilograms of heroin, 279 pounds of methamphetamine, 60 dosage units of MDMA, 249 vehicles, 77 weapons, $65,416,100 in U.S. currency, and $14,592,000 in other assets. (DOJ I, II; DEA 1, 2, 3, 6)

Sustained focus on DEA’s successful programs in Afghanistan and took additional measures to focus attention on the counter-narcotics threat in that country. Some examples include:

In April 2005, DEA established the Foreign-deployed Advisory Support Team (FAST) as a key tool for DEA to advance its workforce and capabilities in Afghanistan and to partner with and train the newly created Afghanistan National Interdiction Unit to identify, target, investigate, and disrupt or dismantle Drug Trafficking Organizations. Since the FAST program was implemented, significant accomplishments have been achieved. Additionally, due to FAST efforts, arrests and the seizure of narcotics and precursor chemicals have substantially increased. On February 10, 2006, the Afghanistan National Interdiction Unit (NIU), assisted by a DEA FAST, executed the first-ever residential search warrant authorized by the Afghanistan Counter-Narcotics Drug Tribunal.

Compared to the 18 month period before the FAST deployed, seizures rose exponentially as follows: (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Opium – 61 percent increase (from 27.6 to 44.4 metric tons)

• Heroin – 129 percent increase (from 2.8 to 6.4 metric tons)

• Chemicals – 48 percent increase (from 7.7 to 11.4 metric tons)

• Clandestine Conversion Labs – 919 percent increase (from 27 to 275)

• Morphine Base – 640 percent increase (from 30 to 222 kilograms)

• Arrested/Detained – 54 percent increase (from 69 to 106 arrests)

• Worked with the Counter Narcotics Police-Afghanistan (CNP-A) and the Department of Defense (DOD) to enhance the DEA-established Afghanistan National Interdiction Unit (NIU) program. Currently, there are 125 NIU officers operationally deployed and working bi-laterally with DEA’s FAST teams. Of the 125 NIU officers, 14 are women. The DOD is currently constructing a FAST and NIU base camp in Afghanistan with expected completion during the first quarter of FY 2007. This facility will provide housing and mission support for the FAST and NIU. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Established an aviation presence in Afghanistan. As a result of DEA’s efforts, DOD is providing the Afghan Ministry of Interior with eight MI-17 helicopters dedicated to counter-narcotics efforts in Afghanistan, which will also provide mobility for DEA FAST personnel. Further, the DOD is funding the construction of the NIU training facility, the purchase of equipment and training for Afghan counter-narcotics officers, the construction of hangars for DEA and Afghan aviation assets, and other support. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• DEA has affected the Afghanistan Intelligence architecture. Through interaction with the Deputy Assistant Secretary of Defense for Counter Narcotics, DEA redirected resources from the Joint Narcotics Analysis Center (JNAC) in London to refine and refocus intelligence collection and analysis efforts in theatre at the International Operations Coordination Center (IOCC) and the Intelligence Fusion Center (IFC) in Kabul. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Conducted the investigation that led to CPOT Haji Baz MOHAMMED’s July 11, 2006, guilty plea to conspiracy to import heroin into the United States. In October 2005, in part due to DEA’s negotiations with the Afghan Minister of Interior, the Government of Afghanistan extradited MOHAMMED to the United States, which marked the first extradition in history between the two countries. From 1990 to 2005, MOHAMMED and his associates were responsible for manufacturing and transporting hundreds of kilograms of Southwest Asian heroin from Afghanistan and Pakistan into the United States. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Conducted the investigation and arrest of an Afghanistan terrorist involved in the deaths of two narcotics officers from Afghanistan. On December 1, 2005, Abdul KHALIQ, a member of a Taliban anti-coalition militia, was arrested by the Afghan National Directorate of Security in Helmand Province, Afghanistan, for his participation in the kidnapping and murder of two CNP-A NIU officers. The officers were murdered on August 11, 2005, while they were on a drug intelligence gathering mission in Helmand Province, Afghanistan regarding an opium stockpiling organization. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Conducted the investigation that led to the first significant trial and conviction in the Afghan Central Narcotics Tribunal. On April 23, 2006, defendants Misri KHAN, Haji BAHRAM, and Noor ULLAH were found guilty of heroin trafficking offenses in Kabul, Afghanistan by the Kabul, Afghanistan Central Narcotics Tribunal. The tribunal sentenced each man to 17 years imprisonment. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Conducted the arrest of Afghanistan heroin trafficker Jaji Aziz RAHMAN pursuant to a first-ever arrest warrant authorized by the Afghanistan Central Narcotics Tribunal. RAHMAN was one of the most influential drug traffickers in Nangarhar Province. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Collected and shared intelligence with U.S. military and coalition partners in Afghanistan, which directly averted hostile acts against U.S. personnel and interests inside of Afghanistan. Within the past year, as a result of DEA’s intelligence, high-value targets have been apprehended, weapons caches seized, and an attempt on the life of a high-level public official was prevented. In addition, DEA’s intelligence thwarted a rocket attack targeting another high level public official, and revealed the location of Improvised Explosive Devices planted to attack U.S. military forces. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Continued to lead and expand enforcement efforts involving Operation Containment, a DEA-led multi-national law enforcement initiative designed to reduce the flow of Afghanistan heroin into world markets, prevent the country from becoming a major heroin supplier to the United States, and disrupt drug-related terrorist activities that could hamper the long-term stabilization of the Afghanistan government. Nineteen countries in Central Asia, the Caucasus, the Middle East, Europe, and Russia participate in Operation Containment, and, for the first time ever, those nations partnered, at the urging of DEA, to jointly identify and target the heads of five significant international drug trafficking organizations whose activities have a sustained impact throughout the region. As a result of enforcement successes directed by DEA, two of the five organization heads, Afghan nationals Haji Bashir NOORZAI and Haji Baz MOHAMMED, were arrested in the past year. As part of Operation Containment, DEA increased its permanent positions in Afghanistan for seven Special Agents, three Intelligence Research Specialists, and two support staff. Additionally, one Special Agent is assigned to the IOCC and three Special Agents are pilots in the region. As an additional result of Operation Containment, there have been record-breaking seizures of narcotics and precursor chemicals in the region. Prior to the initiation of Operation Containment in 2002, only 407 kilograms of heroin had been seized. From October 2003 through June 2006 the following seizures and arrests occurred: (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• 31.6 tons of heroin

• 54.4 metric tons of opium

• 249.5 metric tons of cannabis

• 286 laboratories

• 19 metric tons of precursor chemicals

• 9.1 metric tons of morphine base

• 1,389 arrests

Developed a joint strategy with Mexico to target those who traffic in and produce methamphetamine and the chemicals utilized for its manufacture. DEA’s successes involving methamphetamine are as follows:

• Led the effort to develop and coordinate a Department-wide methamphetamine strategy. Recognized the need for a tailored strategy to combat the current methamphetamine threat and provided the framework for such a strategy to Department leadership. DEA’s piece of the strategy outlined comprehensive integrated steps designed to curb the supply of methamphetamine, using a five-pronged approach combining enforcement, intelligence, legislation, demand reduction, and cooperative efforts with other stakeholders. The Methamphetamine Strategy implements and builds upon the existing National Synthetic Drug Action Plan and is designed to achieve the President’s goals to reduce the use of drugs, specifically methamphetamine. (PMA 5; DOJ III; DEA 6)

• DEA established a new partnership with the Government of Mexico (GOM) to combat methamphetamine that resulted in the first joint Mexican-U.S. Attorney General announcement at the National Methamphetamine and Chemicals Initiative Strategy Conference in Dallas, Texas on May 17-18, 2006. Together, both countries agreed to a number of DEA-developed anti-methamphetamine initiatives including: creation of specialized methamphetamine enforcement teams on both sides of the border; jointly targeting a “Most Wanted List” of chemical and methamphetamine traffickers; donating eight DEA trucks used in clandestine laboratory enforcement operations to the GOM; designating a DEA Clandestine Laboratory Coordinator for Mexico; training 1,000 Mexican police officers on a variety of enforcement and regulatory issues; and jointly exchanging personnel from DEA’s Office of Diversion Control and Mexico’s chemical regulatory agency. (PMA 1; DOJ II; DEA 1, 2, 3, 6)

• Continued to focus the agency’s efforts on CPOTs and PTOs involved in methamphetamine trafficking. Eight of the 46 organizations on the FY 2006 CPOT list (17 percent) are involved in methamphetamine trafficking. There was an 11 percent increase in active PTO cases involving methamphetamine (from 294 in FY 2005 to 327 in FY 2006); a 15 percent increase in PTOs disrupted (from 55 in FY 2005 to 63 in FY 2006); and a 13 percent increase in PTOs dismantled (from 70 in FY 2005 to 79 in FY 2006). (DOJ II; DEA 1, 2, 3, 6)

• Reduced ”super lab” seizures in the United States by 86 percent through increased enforcement efforts, from 244 in calendar year (CY) 2001 to 35 in CY 2005. The total number of clandestine methamphetamine laboratories seized nationally also decreased, from 10,212 in CY 2003 (the highest total from 2001 to 2005) to 5,840 in CY 2005 (43 percent). Of the 2,134 clandestine methamphetamine laboratories seized nationally so far in CY 2006, only 17 are classified as “super labs.” Seizures of methamphetamine along the Southwest Border of the United States and Mexico have increased 129 percent, from 1,170 kilograms in CY 2001 to 2,679 kilograms in CY 2005. (DOJ II; DEA 1, 2, 3, 6)

• Led the introduction of a resolution, “Strengthening Systems for Control of Precursor Chemicals Used in the Manufacture of Synthetic Drugs,” at the 49th Commission on Narcotic Drugs in Vienna, Austria on March 8-18, 2006. The resolution, which passed, requests that participating countries provide the International Narcotics Control Board (INCB) with data regarding the movement of ATS precursor chemicals. (PMA 1; DOJ II; DEA 1, 2, 3, 6)

• Redirected the focus of DEA’s Clandestine Laboratory Enforcement Teams (CLETs) to better address current methamphetamine trafficking trends. These teams target Mexican methamphetamine trafficking organizations by tracing chemicals, finished methamphetamine, and proceeds to organizational leaders in the U.S. and Mexico, rather than merely locating and cleaning up labs. An additional focus of these teams is to identify and dismantle U.S.-based transportation and distribution cells. (PMA 1; DOJ II; DEA 1, 2, 3, 6)

• Conducted clandestine laboratory training for 1,427 DEA employees and state and local officers throughout the United States and abroad in FY 2006. Conducted the first ever clandestine methamphetamine laboratory safety training class for Mexican law enforcement officers at the DEA Training Academy in Quantico, Virginia on September 7, 2006. (PMA 1; DOJ II; DEA 1, 2, 3, 6)

• Initiated and led successful efforts focusing on methamphetamine and precursor chemicals, working jointly with national and international partners. One example of DEA’s success resulted in the dismantlement of the David PHAM pseudoephedrine trafficking organization on March 28, 2006. From 1996 until July 2005, the PHAM organization was responsible for the importation of approximately five million pseudoephedrine tablets per year from Asia into Southern California. This 20-month Organized Crime Drug Enforcement Task Force (OCDETF) investigation, dubbed Operation Phat Rides, has resulted in the arrest of 12 individuals, including PHAM, and the seizure of approximately one million pseudoephedrine tablets, 4 pounds of methamphetamine, $559,000 in U.S. currency, and 11 firearms. (DOJ II; DEA 1, 2, 3, 6)

Expanded DEA’s intelligence program and assumed new intelligence responsibilities and functions in 2006 to support the global war on terror.

• On February 6, 2006, the Attorney General and Director of National Intelligence jointly designated DEA’s Office of National Security Intelligence as a member of the Intelligence Community. Further, in 2006, DEA also achieved the appointment of a DEA representative to the National Security Council Office of Combating Terrorism, which is part of the IC. As a result, DEA is now better positioned to advance the counter-drug agenda and to support national security and homeland defense. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Led the effort to create the Anti-Drug Intelligence Community Team (ADICT). DEA and the Director of CIA’s Crime and Narcotics Center co-chair this group. DEA directed the initiation of two projects: an interagency analysis of Mexican methamphetamine trafficking and an in-depth analysis of the linkages between Colombian and Mexican drug trafficking organizations. As a result of these efforts, Mexican/Colombian methamphetamine trafficking counter-drug issues have been elevated and reported to the highest levels of the Administration through the President’s Daily Briefings and the Senior Executive Intelligence Brief. (DOJ I, II; DEA 1, 2, 3, 6)

Concentrated on the increasing violence along the Southwest Border. DEA participated in Operation Border Unity with the Government of Mexico, a bilateral, multi-agency operation. During the course of this operation, DEA reported the seizure of 10 weapons, 4,500 rounds of ammunition, 13 hand grenades, approximately 4 tons of marijuana, and 5 kilograms of methamphetamine.

Coordinated significant investigations, arrests, indictments, extraditions and convictions, too numerous to list here, which resulted in the disruption and dismantlement of the most signifigant drug trafficking organizations around the world. The following are some examples: (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Developed and implemented the successful multi-agency International Drug Flow Prevention Strategy known as Operation All Inclusive. This multilateral strategy is designed to cause major disruption to the flow of drugs, money, and chemicals between source zones and the United States through the execution of joint enforcement operations that attack the chokeholds in the main arteries and support infrastructure nodes of the drug trade. In October 2005 and April 2006, DEA concluded the first two phases under the strategy focused on Central America. Successes during the first phase included 346 arrests and the seizure of nearly 47 metric tons of cocaine, which equates to 5 to 10 percent of the estimated quantity of cocaine that was transported through the transit zones to the United States during all of 2005. In addition, the average price per pure gram for cocaine purchases made by DEA increased 58 percent (from $25.23 to $39.76), compared to the 65-day period prior to the operation. Successes during the second phase included 131 arrests, over $4 million in currency and the seizure of 19.65 metric tons of marijuana, 92.6 metric tons of precursor chemicals and 43.77 metric tons of cocaine, which equates to 5 to 10 percent of the estimated quantity of cocaine that was transported through the transit zones to the U.S. based on 2005 estimates. As a result of both operations, drug trafficking organizations were forced to delay or suspend their drug operations, divert their routes, change their modes of transportation, and jettison loads. The success of these multi-agency, multi-jurisdictional, and bilateral operations exemplified the cooperation among law enforcement entities throughout the United States, Latin America, and Central America. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

• Coordinated the OCDETF investigation that led to CPOTs Miguel and Gilberto RODRIGUEZ-OREJUELAs’ guilty plea and agreement to forfeit $2.1 billion on September 26, 2006. The RODRIGUEZ-OREJUELA brothers ran the Cali Cartel in Colombia that was responsible for importing more than 200 tons of cocaine into the United States over the last two decades.

• Facilitated the arrest of CPOT Francisco Javier ARELLANO Felix on August 14, 2006, by United States Coast Guard authorities. The Tijuana, Mexico-based organization, run by ARELLANO Felix, was one of the most powerful and violent trafficking groups in Mexico, responsible for the importation of tons of cocaine, heroin, methamphetamine, and marijuana into the United States and more than 100 drug-related murders in the United States and Mexico.

• Coordinated Operation Twin Oceans, an OCDETF investigation that led to the arrest by Brazilian Federal Police of CPOT Pablo RAYO Montano in Sao Paulo, Brazil on May 16, 2006. In the last four years, the RAYO Montano organization has been responsible for transporting 15 tons of cocaine per month from South America to the United States and Europe. This investigation resulted in 138 arrests and the seizure of 47,550 kilograms of cocaine, 700 pounds of marijuana, ten kilograms of heroin, $1.6 million dollars in U.S. currency, and other assets with a total estimated value of $47 million, including three islands near the coast of Panama.

• Coordinated the investigation that led to the arrests of financial CPOT Ricardo Mauricio BERNAL and his brother Juan BERNAL in Colombia on March 2, 2006. The arrests resulted from a 2-year OCDETF investigation conducted by the DEA, which has documented in excess of $300 million laundered by the BERNAL organization through U.S. bank accounts held by casa de cambio Ribadeo and casa de cambio Catorce, another Mexican money exchange.

• Conducted an OCDETF investigation that led to the arrest, extradition, and conviction of 21-year-old William RODRIGUEZ Abadia, son of CPOT Miguel RODRIGUEZ Orejuala, former head of the Cali Cartel. RODRIGUEZ Abadia was sentenced to 262 months imprisonment for his involvement in a cocaine importation conspiracy that existed from 1990 to July 2002. Since the arrest of his father in 1995, RODRIGUEZ Abadia has been responsible for managing his father’s portion of the RODRIGUEZ Orejuela family pharmaceutical business, through which the family’s drug profits were laundered.

• Led a joint U.S.-Mexico operation that captured CPOT Oscar Arturo ARRIOLA-Marquez, the head of an international cocaine trafficking and money laundering organization. During the past several years, DEA agents have seized nearly 2,000 kilograms of cocaine and over $11 million in drug proceeds from ARRIOLA-Marquez organization members in the United States. The Government of Mexico has seized in excess of $37 million in assets. Oscar ARRIOLA-Marquez is also a designated Foreign Narcotics Kingpin.

• Directed the investigation that led to the arrest of CPOT Augustin HARO-Rodriguez in Nogales, Arizona on October 2, 2005, on cocaine trafficking charges. The indictment resulted from an 8-month OCDETF investigation conducted by the DEA Newark, New Jersey Division Office. Since March 2004, the HARO-Rodriguez organization was responsible for the distribution of 1,000 pounds of cocaine per month from Mexico to distribution cells throughout the United States. This investigation resulted in disruption of the HARO-Rodriguez organization, the arrest of 31 individuals, and the seizure of 1,318 pounds of cocaine and $12.1 million in U.S. currency

• Participated in an unprecedented OCDETF Strike Force investigation that culminated in the indictment of 50 leaders of the FARC narco-terrorist organization in Colombia, which was responsible for supplying more than half of the world’s cocaine. These FARC leaders, four of whom are CPOTs, were indicted in March 2006 on charges of importing more than $25 billion worth of cocaine into the United States and other countries over a 20-year period. The FARC supplies more than 50 percent of the world’s cocaine and more than 60 percent of the cocaine that enters the United States.

• Based on an indictment from a DEA investigation, Francisco Rafael ARELLANO Felix, brother of CPOT Francisco Javier ARELLANO Felix, was extradited from Mexico to the United States on September 16, 2006, for possession of and conspiracy to distribute cocaine. Throughout the 1980s and early 1990s, ARELLANO Felix was involved in marijuana and opium poppy cultivation in Mexico, and the smuggling of multi-ton quantities of marijuana into the United States.

• As a result of a DEA investigation, CPOT Manuel SALAZAR Espinosa was extradited from Colombia to the United States on August 22, 2006. From 2002 to 2005, the SALAZAR organization smuggled more than 5,000 kilograms of cocaine worth $100 million into the United States. This 18-month OCDETF investigation has resulted in the seizure of 1,555 kilograms of cocaine and 15 kilograms of heroin.

• As a result of a DEA investigation, financial CPOT Gabriel PUERTA-Parra was extradited on May 23, 2006, from Colombia to the United States to face Racketeer Influenced and Corrupt Organization (RICO) Act charges, as well as conspiracy, cocaine trafficking, and money laundering charges. PUERTA-Parra was a key counselor and advisor to the Norte Valle Cartel since the 1980s, and an attorney for former Medellín Cartel leader Pablo ESCOBAR. PUERTA-Parra utilized a large range of legitimate businesses, including investment and real estate companies, agricultural enterprises, and currency exchanges to launder drug proceeds. DEA investigations also resulted in the extraditions of Norte Valle Cartel leaders Jairo APARICIO-Lenis and Julio Cesar LOPEZ Pena, in October 2005 and March 2006, respectively. Since 1990, the Norte Del Valle Cartel has sent approximately 550 tons of cocaine to the United States via Mexico and has laundered millions of dollars in drug proceeds. This investigation has resulted in 24 arrests and the seizure of 5.5 tons of cocaine and $528 million in assets.

• Facilitated the Nicaraguan government expulsion of Autodefensas Unidas de Colombia (AUC) paramilitary leader Luis Angel GONZALEZ Largo on April 19, 2006, to the United States to face drug charges. GONZALEZ Largo was indicted for importing cocaine to the United States. As a member of the AUC, GONZALEZ Largo was involved in trading multi-hundred kilograms of cocaine for weapons.

• Coordinated an investigation that led to the extradition of CPOT Zeev ROSENSTEIN to the United States on March 6, 2006, to face charges of conspiracy to distribute MDMA. ROSENSTEIN was the leader of an Israeli criminal organization responsible for financing, coordinating and smuggling multi-million tablet shipments of MDMA from Belgium and Holland to Israel, Europe, and the United States. Between 2002 and 2006, the ROSENSTEIN organization imported millions of MDMA tablets per month into the United States. This OCDETF investigation has resulted in 95 arrests and the seizure of 4.8 million MDMA tablets, 45.5 kilograms of cocaine, 17 weapons, and $2.6 million in assets.

• Arrested three high-level members of the Guatemalan Anti-Narcotics Service (SAIA) for cocaine trafficking on November 16, 2005. Adan CASTILLO-Lopez, Jorge AGUILAR-Garcia, and Rubilio Orlando PALACIOS were indicted in the District of Columbia for conspiracy to distribute cocaine, intending that it would be imported into the United States. As Chief of the SAIA, CASTILLO- Lopez was the highest ranking anti-drug agent in Guatemala. AGUILAR-Garcia was second in command to CASTILLO-Lopez.

Worked aggressively to identify and apprehend those individuals and organizations that utilize the Internet to facilitate drug trafficking through increased enforcement efforts and investigations and improved technologies.

• Conducted Operation Cyber Chase, which concluded with the April 2006 conviction of Akhil BANSAL, and the dismantlement of his international pharmaceutical controlled substance trafficking organization. Operation Cyber Chase resulted in 25 arrests in 4 countries and the seizure of 10 million dosage units of pharmaceutical controlled substances, 231 pounds of Ketamine, and $8.5 million in assets. This organization was responsible for the illegal distribution of 2.5 million dosage units of controlled substances per month to more than 100,000 customers without a medical evaluation. (DOJ II; DEA 1, 2, 3, 6)

• Conducted the largest steroid enforcement operation in U.S. history. On December 14, 2005, Operation Gear Grinder resulted in the arrest of five individuals who were responsible for importing anabolic steroids into the United States. This international investigation targeted the eight largest anabolic steroid manufacturing companies in Mexico, including three of the world’s largest that conducted their sales via the Internet. Nearly 82 percent of the steroids seized and analyzed in 2003 were of Mexican origin and the majority of this 82 percent originated from the eight companies charged in Operation Gear Grinder. (DOJ II; DEA 1, 2, 3, 6)

Encouraged international precursor chemical control collaboration to increase the efficiency of intelligence sharing and enforcement activities. DEA participated with the INCB and United Nations Office of Drugs and Crime (UNODC) in Operation Transshipment in July 2006, which targeted the smuggling of Acetic Anhydride consignments at key interdiction “choke points” in Central Asia. (DOJ II; DEA 1, 2, 3, 6)

Conducted a Significant Investigation Impact Measurement System (SIIMS) assessment of Operation All Inclusive (OAI) 2005-1 to capture the impact of the case following dismantlement. SIIMS provides the first opportunity for DEA to measure its enforcement efforts against illicit drug availability in the United States. OAI targeted trafficker vulnerabilities in the areas of maritime, land, and air smuggling of drugs, as well as drug profits. The assessment of OIA I-2005 was conducted in conjunction with the Defense Intelligence Agency for the period beginning on August 5, 2005 and ending October 8, 2005. The assessment identified significant impact as a result of OIA I-2005. For example, nearly 47 metric tons of cocaine was seized, which equates to 5 to 10 percent of the estimated quantity of cocaine that was transported through the transit zones to the United States during all of 2005. During the 65-day period of the operation, total cocaine seizures in the Mexico/Central American and Caribbean Corridors increased 119 percent compared to the 65-day period preceding the operation, from 36 metric tons to 79 metric tons. At the same time, cocaine seizures by DEA domestic offices decreased 29 percent compared to the 65-day period prior to the operation, from 31,789 kilograms to 22,669 kilograms. (PMA 5; DOJ II, III; DEA 1, 2, 3, 4, 6)

Pledged international support to Russia in the war against illegal worldwide drug trafficking. On November 2, 2005, DEA and the Russian Federation Director of the Federal Drug Control Service signed an historic Memorandum of Mutual Understanding to enhance bilateral coordination and cooperation on operational and information sharing matters. The agreement addresses intelligence sharing, training, and assistance in disrupting and dismantling large criminal organizations that affect the drug trade in both the United States and Russia. (PMA 1; DOJ I, II; DEA 1, 2, 3, 6)

Deterred the smuggling of illicit drugs into the United States through cross-border tunnels. DEA has committed resources to support Operation Alliance Joint Task Force, a multi-agency law enforcement effort established to confront this underground threat. Following are examples of DEA’s success:

• Discovered the largest and most sophisticated cross-border tunnel along the United States and Mexico border, which had been utilized to smuggle marijuana. The tunnel extended north approximately 1,262 yards and exited at a building in San Diego, California. Approximately two tons of marijuana was seized from within the tunnel on the Mexican side and approximately 200 pounds of marijuana was seized on the California side. On July 17, 2006, Carlos CARDENAS Calvillo pled guilty to conspiracy to possess marijuana as a result of the case. (DOJ II; DEA 1, 2, 3, 4, 6)

• Facilitated the sentencing of Francis RAJ, Timothy WOO, and Jonathan VALENZUELA on July 14, 2006, to nine years in prison for conspiracy to import marijuana into the United States. In July 2005, DEA arrested the Canadian citizens after the discovery of an underground tunnel they built on the United States and Canadian border near the town of Lynden, Washington. It was the first cross-border tunnel found on the United States northern international border and DEA provided oversight of its destruction. (DOJ II; DEA 1, 2, 3, 4, 6)

Oversaw the arrest of Tier One Colombian money broker German Alejandro GONZALEZ-Bayona through the DEA-sponsored Colombian Sensitive Investigative Unit on November 6, 2006. In April 2005, GONZALEZ-Bayona was indicted for money laundering as a result of Operation Mallorca. He was one of four Colombian-based money brokers targeted and was responsible for laundering $12 million in illicit drug proceeds through the Colombian Black Market Peso Exchange, a system where drug traffickers sell drug proceeds in U.S. dollars to brokers for pesos. (DOJ I, II; DEA 1, 2, 3, 6)

Provided International Law Enforcement Academy (ILEA) training programs in Budapest, Hungary; Gaborone, Botswana; Bangkok, Thailand; and San Salvador, El Salvador. DEA’s International Training program consists of SIU Training, International Asset Forfeiture/Money Laundering Training, International Narcotics Enforcement Management Seminar Training, Airport Interdiction Seminar, and DEA’s Basic Intelligence Seminar. During FY 2006, DEA trained approximately 2,800 participants. (PMA 1; DOJ II, III; DEA 6, 7)

Ensured that resources are deployed to the highest priority overseas locations to maximize the agency’s impact on the global narcotics trade. Through the Rightsizing initiative, DEA requested and received the reallocation of 65 domestic positions to overseas locations in FY 2004 and FY 2005. For FY 2006, DEA received $29,729,000 and 38 positions, including 23 Special Agents for overseas operations. (PMA 1, 5; DOJ I, II; DEA 1, 2, 3, 6)

• Overseas Rightsizing Reprogramming Funds were appropriated for recurring costs associated with the FY 2004 - 2006 reallocation of resources. DEA received resources to open seven new country offices in high priority countries. This funding will also be used to create an additional heroin task force and maritime enforcement group in Cartagena, Colombia; establish an additional money laundering task force and a heroin task force in Mexico City, Mexico; and complete unfinished space in the Lima, Peru U.S. Embassy in a cooperative effort with the Department of State to alleviate crowding. Previously approved, the Warsaw, Poland location opened in August 2006.

• Other Funding – Permanent funding for Operation Containment was provided, as well as operational funding for an existing SIU in Uzbekistan and a planned SIU in Tajikistan. Continuing support was provided for recurring costs associated with DEA’s FAST program in Afghanistan. Also, funding was provided to enhance DEA’s presence in Central Asia, the Middle East, and the Kabul Country Office. Further, Congress directed DEA to establish a presence in Dubai, United Arab Emirates, whereby DEA is coordinating this requirement with the Department of State (scheduled to open in 2007). For this effort, Congress added seven positions (including four Special Agents) to the DEA 2006 budget.

Received $9.2 million to combat drug trafficking organizations in Afghanistan and $5 million to create a National Security Section within DEA’s intelligence program as part of a bill appropriating $94.5 billion in emergency supplemental funding. (PMA 1, 5; DOJ I, II; DEA 1, 2, 3, 6)

Seizure of 738 Kilograms of Cocaine and Disruption of a Cocaine Trafficking Organization in Buenos Aires Province, Argentina

On December 31, 2005, as the result of a two-year investigation conducted by the DEA Buenos Aires, Argentina Country Office, the Argentina Gendarmeria Nacional seized 738 kilograms of cocaine at a residence in Buenos Aires Province, Argentina. The cocaine was hidden inside bags of charcoal. Nine Argentine Nationals, including leader Alejandrino MOTOK, and one Bolivian National were arrested, resulting in the disruption of a cocaine trafficking organization responsible for the transportation of multi-hundred kilogram shipments of cocaine to Buenos Aires for distribution in Europe and the United States.

Joint British Military and Drug Enforcement Administration Foreign-deployed Advisory and Support Team Operation Resulted in Seizure of 700 Kilograms of Opium in Afghanistan

On January 5, 2006, a DEA Foreign-deployed Advisory Support Team assisted the British Military and the British-led Afghan National Security Forces with counter-drug operations on several pre-determined target locations in Aachin Valley, Nangarhar Province, Afghanistan. The operations resulted in the destruction of several heroin processing laboratories and the seizure of 700 kilograms of opium and 7 kilograms of heroin.

Seizure of 257 Kilograms of Cocaine and the Dismantlement of a Cocaine Trafficking Organization in Spain and Paraguay

On December 19, 2005, officials in Asuncion, Paraguay seized 257 kilograms of cocaine and arrested a total of 11 traffickers in Paraguay and Spain, including Edmund CHLADEK, the head of this trafficking organization. The seizure and arrests resulted in the dismantlement of a cocaine trafficking organization that, since 2000, was responsible for the transportation of multi-hundred kilogram shipments of cocaine from South America to Europe. This investigation was conducted by the DEA Asuncion, Paraguay and Guayaquil, Ecuador Country Offices, the Paraguayan National Anti-Drug Agency, and the Spanish National Police.

Investigation Resulted in the Seizure of 5.7 Tons of Cocaine in the Eastern Pacific Ocean

On January 7, 2006, information provided by the DEA El Paso Intelligence Center (EPIC) resulted in the seizure by the Mexican Navy of 5.7 tons of cocaine from two vessels in the Eastern Pacific Ocean near Colima, Mexico. Two support vessels also were intercepted. Nine Mexican national crew members were detained by Mexican authorities for possible prosecution in Mexico. This investigation was conducted with DEA offices in Mexico City and Mazatlan, Mexico.

Operation Panama Express - Seizures of 45,270 Kilograms of Cocaine

January through September 2006, the United States Coast Guard seized 45,274 kilograms of cocaine and made 109 arrests in 15 separate events as part of Operation Panama Express a maritime interdiction operation targeting transportation vessels and routes into the U.S.. These seizures and arrests were based on information provided by the DEA to Coast Guard authorities. These investigations were conducted with the DEA, Colombian, Panama and Royal Bahamian authorities as part of Operation Panama Express. Since its inception in February 2000, Operation Panama Express has resulted in the seizure of more than 389 tons of cocaine and the arrest of 1,083 individuals.

Former Salvadoran Congressman Sentenced to 20 Years in Prison

On January 18, 2006, William Eliu MARTINEZ was sentenced in U.S. District Court for the District of Columbia to 29 years in prison for conspiracy to distribute cocaine and conspiracy to import cocaine. MARTINEZ, a Salvadoran congressman from 1999 to 2002, was indicted in October 2003 and arrested in November 2003. From 1998 to 2002, MARTINEZ managed an organization that utilized go-fast boats to transport a total of 12 tons of cocaine from Colombia through El Salvador to the United States for the CPOT Otto Roberto HERRERA-Garcia organization. This investigation was conducted by the DEA Special Operations Division (SOD) in conjunction with DEA offices in San Salvador, El Salvador, Guatemala City, Guatemala, and Panama City, Panama.

70 Kilograms of Heroin Seized in Istanbul, Turkey

On January 19, 2006, the Turkish National Police seized 70 kilograms of heroin in Istanbul, Turkey as the result of a joint investigation with the DEA. Four members of an Istanbul-based heroin trafficking organization, including leader Sadik KAYA, were arrested while preparing the heroin for transportation to the Netherlands. This investigation was being conducted by the DEA Ankara, Turkey Regional Office, the Istanbul, Turkey Resident Office, and the Turkish National Police.

40 Kilograms of Heroin Seized in Sofia, Bulgaria

On January 15, 2006, the Bulgarian National Service for Combating Organized Crime (NSCOC) seized 40 kilograms of heroin and arrested one individual in Sofia, Bulgaria as the result of a joint investigation with the DEA. The heroin was smuggled by Mehmet Burmus CINCIK from Turkey into Bulgaria via an automobile. CINCIK was arrested while preparing the heroin for transportation to Western Europe. This investigation is being conducted by the DEA Istanbul, Turkey Resident Office, the Bulgarian NSCOC, and the Turkish National Police.

77 Pounds of Heroin Seized in Karachi, Pakistan

On January 24, 2006, the Pakistani Anti-Narcotics Force (ANF) seized 77 pounds of heroin and arrested four individuals in Karachi, Pakistan following a joint investigation with the DEA. The heroin was smuggled from Afghanistan and was destined for the United Kingdom. The ANF arrested two Pakistani nationals and two United Kingdom/Pakistani dual-citizens. This investigation was being conducted by the DEA Islamabad, Pakistan Country Office, the DEA Peshawar, Pakistan Resident Office, the Pakistani ANF, and the Pakistani Sensitive Investigative Cell.

United States and Mexican Agents Discovered a Cross-Border Tunnel Containing More Than Two Tons of Marijuana

On January 25, 2006, agents of the DEA Tijuana, Mexico Resident Office discovered a cross-border tunnel that had been utilized to smuggle marijuana from Mexico into the United States. In a joint investigation with Mexican authorities, police officials seized approximately two tons of marijuana from within the tunnel on the Mexican side and approximately 300 pounds of marijuana from within the tunnel on the California side. The tunnel, believed to be the largest and most sophisticated ever discovered along the border, extends north approximately 1,262 yards, and exits at a vacant warehouse in San Diego, California. This investigation was conducted with the DEA San Ysidro, California Resident Office, the Bureau of Immigration and Customs Enforcement (ICE), the U.S. Border Patrol, the Joint Interagency Task Force-North, and the Mexican Policia Federal Preventiva.

International Heroin Trafficking Organization Dismantled in a Priority Target Organization Investigation

On January 25, 2006, agents from the DEA New York Division Office, along with local authorities and Panamanian federal officials, arrested 16 individuals, resulting in the dismantlement of an international heroin trafficking organization. Nine individuals, including organization leader Silverio GUZMAN, were arrested in New York. The remaining seven defendants, including two of the organization’s suppliers, were arrested in Panama. Since August 2004, the GUZMAN organization used internal couriers to smuggle approximately eight kilograms of heroin per month from Panama to New York. To date, this nine-month PTO investigation, dubbed Operation Bronx Tale, has resulted in the arrest of 21 individuals and the seizure of 2 kilograms of heroin, $12,000 in United States currency, and 2 firearms. This investigation was supported by the DEA Special Operations Division and conducted with the DEA Panama City, Panama Country Office, ICE, the New York City Police Department, the New York City Special Narcotics Prosecutor’s Office, the Panamanian Judicial Police Sensitive Investigations Unit, and the Office of the Panamanian Prosecutor.

26 Kilograms of Heroin Seized in Yuksekova, Turkey

On January 28, 2006, the Turkish National Police seized 26 kilograms of heroin in Yuksekova, Turkey as the result of a DEA PTO investigation. Ten members of a Turkey-based heroin trafficking organization were arrested in Yuksekova and Istanbul, Turkey in connection with the seizure. This investigation resulted in 22 arrests and the seizure of 188 kilograms of cocaine. This investigation was conducted by the DEA Ankara, Turkey Regional Office, the Istanbul, Turkey Resident Office, and the Turkish National Police.

22 Members of an International Heroin Smuggling Ring Arrested as a Result of an Organized Crime and Drug Enforcement Task Force Investigation

On February 1, 2006, the DEA New York Division Office announced the arrest of 22 Colombian nationals responsible for the smuggling of 24 kilograms of heroin into the United States in a 20-month period. Eight of the individuals were arrested in Colombia on provisional arrest warrants and are in custody pending their extradition to the United States. The Medellin-based smuggling organization used various smuggling methods, including surgically implanting heroin packets into puppies that were seemingly bred for that purpose. This two-year OCDETF investigation, dubbed Operation Liquid Heroin, was supported by the DEA SOD and was conducted by the DEA New York, Miami, Florida, and Atlanta, Georgia Division Offices, the Bogotá, Colombia Country Office, the Colombian National Police Heroin Task Force, the Johnston County (North Carolina) Sheriff’s Department, and the U.S. Attorney’s Office for the Eastern District of New York.

Arrest of CPOT Oscar ARRIOLA-Marquez in Mexico

On February 2, 2006, officers of the DEA-sponsored sensitive investigative unit of the Agencia Federal de Investigaciones arrested CPOT Oscar Arturo ARRIOLA-Marquez in Torreon, Coahuila State, Mexico pursuant to the U.S. request for his provisional arrest. A grand jury sitting in the U.S. District Court for the District of Colorado indicted ARRIOLA-Marquez and several others in December 2003 for drug trafficking. Oscar ARRIOLA-Marquez is the head of a major cocaine trafficking and money laundering organization. During the past several years, agents of DEA have seized nearly 2,000 kilograms of cocaine and over $11 million in drug proceeds from ARRIOLA-Marquez organization members in the United States. The Government of Mexico has seized in excess of $37 million in assets from the ARRIOLA-Marquez organization. Additionally, on June 1, 2005, Oscar ARRIOLA-Marquez was identified by President Bush as a Foreign Narcotics Kingpin under the Foreign Narcotics Kingpin Designation Act.

Investigation Resulted in the Seizure of 2,500 Kilograms of Cocaine in the Eastern Pacific Ocean

On February 7, 2006, information provided by the DEA EPIC resulted in the seizure by the U.S. Coast Guard of 2,500 kilograms of cocaine from a Peruvian-flagged fishing vessel in the Eastern Pacific Ocean, west of Chimbote, Peru. Three Peruvian and four Ecuadorian nationals were arrested. This investigation was conducted with DEA Lima, Peru Country Office and the Joint Interagency Task Force-South.

942 Kilograms of Cocaine Seized in Colon, Panama

On February 8, 2006, the Panama Judicial Police (PTJ) seized 942 kilograms of cocaine in Colon, Panama following a joint investigation with DEA. The cocaine was seized from a cargo container and was being prepared for transportation on an ocean freighter to the Netherlands. No arrests were made. This investigation is being conducted by the DEA Panama City, Panama Country Office and the PTJ.

Former CPOT Zalmai IBRAHIMI and His Associates Sentenced to Lengthy Imprisonment

On February 15, Muzaffar KHAN-AFRIDI and Alamdar KHAN-AFRIDI were sentenced in the District of Maryland to life imprisonment and 30 years imprisonment, respectively, for trafficking in heroin and hashish. The men were responsible for smuggling hundreds of kilograms of heroin and hashish from Southeast and Southwest Asia into the United States, Canada, Africa, and Europe. Former CPOT Zalmai IBRAHIMI was a member of the organization and was sentenced to 78 months in prison after testifying against the KHAN-AFRIDIs. In August 2003, the KHAN-AFRIDIs and IBRAHIMI were arrested in Thailand after a grand jury in the District of Maryland returned a 22-count indictment against them and eight associates for trafficking in heroin and hashish. During the investigation, more than 27 kilograms of heroin were seized from the KHAN-AFRIDI organization. This was a joint investigation between the DEA Washington Division Office and the Federal Bureau of Investigation (FBI). Other DEA offices that participated in this investigation were the New York and San Francisco Division Offices, and the Bangkok, Thailand, the Islamabad, Pakistan, the London, England, the Ottowa, Canada, and the Rome, Italy Country Offices.

Seizure of 1,628 Kilograms of Cocaine and $293,000 in Panama in an Organized Crime and Drug Enforcement Task Force Investigation

On February 17, 2006, the Panama Judicial Police arrested nine individuals and seized 1,628 kilograms of cocaine and $293,000 in U.S. currency in La Chorrera, Panama, following a joint investigation with the DEA. The cocaine was destined for Mexico. This OCDETF investigation was supported by the DEA SOD and conducted by the DEA Panama City, Panama Country Office, and the DEA Houston, Texas Division Office.

272 Kilograms of Opium Seized in Uzbekistan

On February 19, 2006, the Uzbek National Police SIU seized 272 kilograms of opium in Surkhandarya, Uzbekistan, following a joint investigation with the DEA Tashkent Country Office. The opium was destined for Russia and Kazakhstan. Three Uzbek nationals were arrested.

Extradition of CPOT target Zeev ROSENSTEIN

On February 16, 2006, Israeli Justice Minister Tzipi Livni signed an order requiring the extradition of CPOT Zeev ROSENSTEIN to the United States to face charges of conspiracy to distribute MDMA. In December 2004, a grand jury sitting in the U.S. District Court for the Southern District of Florida indicted ROSENSTEIN on charges of conspiracy to import MDMA into the United States and conspiracy to distribute MDMA. ROSENSTEIN was arrested in Israel in November 2004. ROSENSTEIN was the leader of an Israeli criminal organization responsible for financing, coordinating and smuggling multi-million tablet shipments of MDMA from Belgium and Holland to the United States, Israel and Europe. Between 2002 and 2006, the ROSENSTEIN organization imported millions of MDMA tablets per month into the United States. This OCDETF investigation was conducted by the Miami Division Office and resulted in 95 arrests, and the seizure of 4.8 million MDMA tablets, 45.5 kilograms of cocaine, 17 weapons, and $2,606,155 million in assets.

CPOT Top Lieutenants Sentenced to Lengthy Imprisonment

On February 27, 2006, Juan Carlos MONTOYA-Sanchez and Carlos Felipe TORO-Sanchez were sentenced in the Southern District of Florida to 22 and 19 years imprisonment, respectively, for conspiracy to import cocaine into the United States. MONTOYA-Sanchez is the brother, and TORO-Sanchez the cousin, of CPOT Diego Leon MONTOYA-Sanchez, leader of the North Valley Cartel and one of the most powerful cocaine traffickers in Colombia. During the period from 1995 until 2003, Juan Carlos MONTOYA-Sanchez and TORO-Sanchez were responsible for the production and shipment of 30,000 kilograms of cocaine to the United States. A grand jury sitting in the U.S. District Court for the Southern District of Florida indicted Juan Carlos MONTOYA-Sanchez and TORO-Sanchez in January 2004 following an OCDETF investigation conducted by the Miami Division Office and the FBI. They were arrested in Colombia in December 2003, extradited to the United States in 2005, and pleaded guilty on November 18, 2005.

Airline Chief of Security Pleaded Guilty to Cocaine Smuggling Charges

On February 28, 2996m Stephanie AMBROISE, former director of security for American Airlines at the Port-au-Prince Airport in Haiti, pleaded guilty in the Southern District of Florida to conspiracy to import cocaine into the United States. AMBROISE was associated with several drug traffickers and used her security director position at the Port-au-Prince airport to bypass security. Specifically, AMBROISE handed cocaine-laden bags to baggage handlers without going through the normal inspection process. During the period from 2001 until 2003, AMBROISE was responsible for the shipment of more than 1,300 pounds of cocaine from Haiti to the United States per month and received $2,000 in payment for each kilogram of cocaine smuggled. AMBROISE was arrested in October 2004 as the result of an OCDETF investigation conducted by the Miami Division Office. The investigation was conducted with ICE, the FBI, and the Internal Revenue Service (IRS).

Belizean Cocaine Trafficker Convicted for Threatening to Kill Federal Agents and Trafficking in Cocaine

On March 1, 2006, Belizean national Robert James HERTULAR was convicted in the Southern District of New York on charges of threatening to kill federal agents and conspiracy to import ton-quantities of cocaine into the United States. In May 2001, HERTULAR was arrested in Belize by Belizean authorities after they seized more than one ton of Colombian cocaine that HERTULAR was attempting to send to the United States. In December 2003, while out on bail, HERTULAR told DEA agents he would hire “Colombian hit men” to kill them if they continued the investigation against him. Prior to his arrest, HERTULAR was responsible for four cocaine shipments to the United States of more than one ton each. HERTULAR was extradited to the United States in June 2004, and faces a sentence of between ten years imprisonment to life imprisonment upon sentencing. This investigation was conducted by the New York Division Office, the Belize Country Office, the Belize Police Department, and the Belize Department of Public Prosecutions.

Financial CPOT Ricardo Mauricio BERNAL Palacios Arrested in Colombia

On March 2, 2006, the Colombian National Police arrested Financial CPOT Ricardo Mauricio BERNAL and his brother Juan BERNAL in Colombia. The arrests were pursuant to provisional arrest warrants that resulted from a two-year long OCDETF investigation conducted by the Miami Division Office. In February 2006, a grand jury sitting in the U.S. District Court for the Southern District of Florida indicted the BERNAL brothers on 48 counts of money laundering and one count of conspiracy to distribute cocaine. BERNAL utilized the Mexican casa de cambio Ribadeo to launder his and other drug traffickers’ bulk currency drug proceeds, which were then sold via the Colombian Black Market Peso Exchange to money brokers in Colombia. In addition, the BERNAL organization arranged the transportation of cocaine for his own organization for distribution in Spain as well as for Mexican drug trafficking organizations for distribution in the United States. Spanish authorities seized 2,000 kilograms of cocaine and 16.7 million euros (approximately $22 million in U.S. currency) belonging to BERNAL. The investigation documented in excess of $300 million laundered by the BERNAL organization through U.S. bank accounts held by casa de cambio Ribadeo, and casa de cambio Catorce, another Mexican money exchange. Also participating in this investigation were the Bogotá, Colombia, Madrid, Spain, and Mexico City Country Offices.

Seizure of 6.1 Tons of Cocaine in Ecuador

On March 9, 2006, the Ecuadorian National Police (ENP) seized 5,562 kilograms of cocaine from a shipping container in Guayaquil, Ecuador, following a joint investigation with the DEA Guayaquil, Ecuador Resident Office. The cocaine originated from Buenaventura, Colombia and was destined for Panama. The ENP arrested the president and manager of the company responsible for shipping the container.

Julio Cesar LOPEZ Pena, Top Lieutenant in the Norte Valle Cartel, Extradited to the United States

On March 15, 2006, Julio Cesar LOPEZ Pena, a top lieutenant for Colombian Norte Valle Cartel leader Wilmer Alirio VARELA, was extradited from Colombia to the United States to face racketeering (RICO) charges in the Southern District of New York. The indictment alleges that from 1990 through May 2004, the Norte Valle Cartel was responsible for the importation of approximately 500 metric tons of cocaine, valued at more than $10 billion, into the United States. Since at least 1998, LOPEZ Pena was responsible for the production of hundreds of kilograms of cocaine each week, most of which was destined for the United States. If convicted, LOPEZ Pena faces a minimum mandatory sentence of ten years imprisonment and a maximum sentence of life imprisonment. The indictment also seeks forfeiture of $100 million in illicit proceeds. This investigation was conducted by the New York Organized Crime and Drug Enforcement Strike Force, which is comprised of representatives from the DEA, the FBI, ICE, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IRS, the U.S. Marshals Service, the New York State Police, and the New York City Police Department.

Operation Firewall Seizure of 3.3 Tons of Cocaine and $5.8 Million

During March, May and August 2006, based on information from the DEA Cartagena, Colombia Resident Office, the U.S. Coast Guard seized 3.3 tons of cocaine and $5.8 million from merchant ships near Honduras and Colombia. Nine crew members from Ecuador, Guatemala, and Mexico were arrested and will be prosecuted in the United States. The seizure and arrests were the result of DEA’s Operation Firewall, an ongoing multi-agency cocaine interdiction program designed to stem the flow of cocaine from the northern coast of Colombia. Since its inception in July 2003, Operation Firewall personnel have seized more than 33.3 tons of cocaine and have assisted in the seizure of more than 71 additional tons of cocaine.

International Cocaine Smuggling Ring Dismantled as a Result of an OCDETF Investigation

On March 30, 2006, the DEA New York Division Office arrested 11 individuals, resulting in the dismantlement of an organization that smuggled 200 kilograms of cocaine per month into the United States over the last five years. The Mexico-based organization used various smuggling methods, including concealing cocaine inside tombstones and religious statues of the Virgin Mary. To date, this one-year OCDETF investigation, dubbed Operation Omni Presence, has resulted in the seizure of 194 kilograms of cocaine and $475,000 in U.S. currency. This international investigation was supported by SOD and was conducted by the New York Division Office and the Mexico City Country Office, and the Police Departments of New York City and Nassau County (New York).

Investigation Resulted in the Seizure of 2.75 Tons of Cocaine in the Eastern Pacific Ocean

On April 1, 2006, information provided by the DEA EPIC resulted in the seizure by the U.S. Coast Guard of 2.75 tons of cocaine from a go-fast vessel in the Eastern Pacific Ocean near the Galapagos Islands, Ecuador. A second go-fast vessel also was intercepted; however the crew jettisoned a cargo of cocaine that was estimated to be equal in volume to the amount seized. Three Mexican national crew members were detained for possible prosecution. This investigation was conducted with the DEA Guayaquil, Colombia and Mazatlan, Mexico Resident Offices, the DEA Tampa, Florida District Office, and the Joint Interagency Task Force-South.

OCDETF Investigation Resulted in the Arrest of Weapons Suppliers with Possible Ties to a Colombian Terrorist Organization

On April 5, 2006, Panamanian authorities arrested Harol SUAREZ Garcia, Dario CASTRO, and Carlos BARRETO Sierra for conspiracy to trade cocaine for weapons that they claimed were to be supplied to the Autodefensas Unidas de Colombia (AUC). The charges resulted from an OCDETF investigation conducted by the DEA Las Vegas, Nevada District and Nicaragua Country Offices. SUAREZ Garcia, CASTRO, and BARRETO negotiated to provide 700 - 1,000 kilograms of cocaine in exchange for military weapons, including assault rifles and grenade launchers. This investigation was supported by SOD and conducted with the DEA Miami and New York Division Offices, the DEA Panama City, Panama and Kingston, Jamaica Country Offices, and the DEA Cartagena, Colombia Resident Office.

Investigation Resulted in the Arrest of Nine Current or Former Members of the Colombian National Police and the Seizure of 1,832 Kilograms of Cocaine

Between April 3 - 5, 2006, the Policia Nacional de Colombia Direccion de la Policia Judicial y Investigaciones de Cali, in conjunction with the DEA Bogotá Country Office, arrested nine current or former members of the Colombian National Police and seized 1,832 kilograms of cocaine. Seven of the nine arrested individuals were arrested on Provisional Arrest Warrants issued out of the Southern District of New York, where they were indicted on charges that include possession with intent to distribute, conspiracy to possess with intent to distribute, and importation to the United States. The arrested individuals assisted the Norte Valle Cartel, and during October 2005, were responsible for the transportation of 409 kilograms of cocaine from Bogotá to Mexico, where the cocaine was seized by Mexican authorities. To date, this seven-month investigation has resulted in the seizure of 2,241 kilograms of cocaine. This international investigation was supported by SOD and was conducted by the DEA Bogotá Country Office with the DEA New York Division Office, ICE, and the Colombian National Police.

Mexican Citizen Extradited from Mexico to the United States to Face Cocaine and Methamphetamine Conspiracy Charges

On April 5, 2006, Santiago GOICOCHEA Diaz, a Mexican citizen and leader of a cocaine and methamphetamine trafficking organization, was extradited from Mexico to the United States to face cocaine and methamphetamine conspiracy charges as well as charges of money laundering. In May 2004, the Mexican Agencia Federal de Investigaciones (AFI) arrested GOICOCHEA Diaz in Acapulco, Mexico on a Provisional Arrest Warrant issued out of the District of Oregon. GOICOCHEA Diaz and five other individuals were indicted in January 2000 in the District of Oregon as the result of a four-year OCDETF investigation led by the DEA Portland, Oregon District Office. Between 1994 and 1998, GOICOCHEA Diaz was responsible for the distribution of cocaine and methamphetamine in California, Oregon, Oklahoma, and Arkansas, as well as the laundering of the drug profits. To date, this investigation has resulted in 39 arrests and the seizure of nearly ten kilograms of cocaine. This investigation was conducted with the IRS and the Clatsop County (Oregon) Sheriff’s Department.

Internet Pharmaceutical Trafficker Convicted of Operating a Continuing Criminal Enterprise

On April 17, 2006, a jury in the U.S. District Court for the Eastern District of Pennsylvania found Akhil BANSAL guilty of operating a continuing criminal enterprise. The jury also found BANSAL and a co-defendant guilty of conspiracy and money laundering. BANSAL was the leader of an international pharmaceutical distribution organization that used rogue Internet pharmacies to dispense controlled substances directly to customers without a medical evaluation by a physician. Between July 2003 and April 2005, the BANSAL organization was responsible for the distribution of more than 2.5 million dosage units of Schedule II through IV pharmaceutical controlled substances per month. BANSAL supplied ten separate drug organizations that together operated over 200 websites. In April 2005, DEA arrested BANSAL and 19 other members of his organization as the result of Operation Cyber Chase, a one-year OCDETF investigation that resulted in the dismantlement of the BANSAL organization, the arrest of 24 individuals, and the seizure of more than 9 million dosage units of Schedule II – IV controlled substances; 231 pounds of Ketamine; and $8.6 million U.S. currency. This investigation was coordinated by the DEA SOD and conducted by DEA offices in Philadelphia, New York City, Rochester, New York, New Delhi, India, Vienna, Austria, Canberra, Australia, and San Jose, Costa Rica. Other agencies participating in this cooperative investigation included the FBI, ICE, the U.S. Food and Drug Administration, the U.S. Postal Inspections Service, the IRS, the Australian Federal Police, the Narcotics Control Board of India, the Costa Rican Judicial Police, Drug Control Police, and Drug Institute, and numerous U.S. state and local law enforcement agencies.

Expulsion of Member of Colombian Para-Military Drug Trafficking Organization from Nicaragua to the United States to Face Drug Charges

On April 19, 2006, the Nicaraguan government expelled Colombian national Luis Angel GONZALEZ Largo to the United States, to face drug charges in U.S. District Court, District of Columbia. On April 13, 2004, Nicaraguan National Police arrested GONZALEZ Largo and seized $746,000 in U.S. currency that GONZALEZ Largo intended to use to purchase arms for the Autodefensas Unidas de Colombia (AUC) para-military organization. He also was arranging to ship cocaine to Mexico as payment for the weapons. On December 20, 2006, a Federal Grand Jury in the District of Columbia indicted GONZALEZ Largo for intent to import cocaine to the United States and intentionally importing cocaine to the United States. The indictment was the result of Operation Mountain Mist, a two-year SOD supported investigation targeting the AUC and its leaders, CPOT Hernan GIRALDO Serna, Rodrigo TOVAR Pupo. The AUC utilizes violence to control drug trafficking and transportation in the area of Colombia’s North Coast. As a member of the AUC, GONZALEZ Largo was involved in trading multi-hundred kilograms of cocaine for weapons. During the previous two to three years, GONZALEZ Largo was involved in the transportation of more than 2,500 AK-47 assault rifles from Nicaragua to Colombia for the AUC and was involved in smuggling millions of dollars in drug proceeds from Texas to Guatemala. This investigation was conducted by DEA offices in Cartagena, Colombia, Managua, Nicaragua, Panama City, Panama, Kingston, Jamaica, Miami, New York, Las Vegas, and SOD.

285 Pounds of Heroin Seized in Uzbekistan

On April 19, 2006, the DEA-sponsored Uzbekistan Sensitive Investigative Unit (SIU) seized 285 pounds of heroin and arrested one individual in Sarosiyo District, Surkhandarya Region, Uzbekistan. This was the largest ever heroin seizure conducted by the Uzbekistan SIU, which was established in March 2003. The heroin was smuggled from Afghanistan and was destined for St. Petersburg, Russia. This investigation was conducted by the DEA Uzbekistan Country Office and the Uzbekistan SIU.

Afghanistan Heroin Traffickers Convicted and Sentenced by Afghanistan Tribunal

On April 23, 2006, defendants Misri KHAN, Haji BAHRAM, and Noor ULLAH were found guilty of heroin trafficking offenses in Kabul, Afghanistan by the Kabul, Afghanistan Central Narcotics Tribunal. The tribunal sentenced each man to 17 years imprisonment. Their conviction was the result of a four-month investigation conducted with the DEA Kabul Country Office. KHAN was the leader, and BAHRAM and ULLAH were members, of an organization that manufactured and exported large shipments of heroin from Afghanistan and Pakistan to the United States, Asia, and Europe. In September 2004, a grand jury in the Southern District of New York indicted the three men for conspiracy to import 440 pounds of heroin into the United States. Removal of the three men from Afghanistan to the United States was stayed by Afghan President Hamid Karzai pending the outcome of the tribunal proceedings. This was the first significant trial and conviction in the Afghan Central Narcotics Tribunal.

First-Ever Crack Cocaine Seizure in Chile

On April 18, 2006, the Policia De Investigaciones De Chile seized 27 kilograms of crack cocaine and arrested three Chilean nationals in Arica, Chile. The seizure, which resulted from an investigation conducted by the DEA Santiago, Chile Country Office, is the first-ever seizure of crack cocaine in Chile. The seizure was linked to a crack cocaine trafficking organization that is responsible for the transportation of 90 kilograms of crack cocaine per month from Peru into Chile. This investigation is being conducted with the DEA Lima, Peru Country Office and the Policia De Investigaciones De Chile.

Marijuana Trafficking Organization Dismantled in an OCDETF Investigation

On April 22, 2006, the DEA Anchorage, Alaska District Office arrested six individuals, resulting in the dismantlement of the Thomas RANES marijuana trafficking organization. During the past five years, the RANES organization was responsible for the distribution of approximately 350 pounds of high-potency marijuana per month in Alaska. Also during that time, the RANES organization laundered between $4 and $6 million per year in Alaska, Washington, Alabama, Canada, and Ukraine. This six-month OCDETF investigation has resulted in the arrest of 6 individuals, including RANES, and the seizure of 347 pounds of marijuana, real property valued at $1.5 million, $90,700 in U.S. currency, more than 30 vehicles, and 18 firearms, including a fully automatic assault rifle. This investigation was conducted with ICE, Customs and Border Protection, the IRS Criminal Investigation Division, the FBI, ATF, the Alaska State Police, the Anchorage Police Department, and the Royal Canadian Mounted Police.

International Cocaine Transportation Organization Dismantled in Ecuador

On May 13 - 16, 2006, the Ecuadorian National Police, in conjunction with agents from the DEA Guayaquil Resident Office, arrested 68 individuals and seized ten fishing vessels, resulting in the dismantlement of the Carlos CELI maritime cocaine trafficking organization. Since March 2005, the CELI organization was responsible for the transportation of 4 - 5 tons of cocaine per month through Ecuador and on to Mexico and the United States. In 2005, the U.S. Coast Guard seized cocaine loads from seven Ecuadorian-flagged fishing vessels operated by the CELI organization in the Eastern Pacific Ocean. Those seized drug shipments ranged from two to seven metric tons. Among those arrested was Nestor GOMEZ Estupinan, a Colombian National and former member of the Autodefensas Unidas de Colombia (AUC) paramilitary organization, who provided security for the CELI organization. GOMEZ Estupinan is wanted in Colombia for drug trafficking charges. To date, this two-year investigation has resulted in the arrest of more than 100 individuals, including CELI, and the seizure of approximately 34 metric tons of cocaine. DEA offices in Ecuador, Colombia, Tampa, Key West and Key Largo, Florida conducted this investigation with the U.S. Coast Guard, the Joint Inter-Agency Task Force-South (JIATF-South), and the Ecuadorian National Police.

CPOT Pablo RAYO Montano Arrested and His Organization Dismantled

On May 16, 2006, the Brazilian Federal Police arrested CPOT Pablo RAYO Montano in Sao Paulo, Brazil, and in an operation coordinated by DEA, law enforcement teams in four U.S. cities and five foreign countries arrested 52 individuals, resulting in the dismantlement of the RAYO Montano cocaine trafficking organization. RAYO Montano started in the narcotics business as a transporter in Buenaventura, Colombia approximately 20 years ago. In the last four years alone, the RAYO Montano organization has been responsible for the transportation of 15 tons of cocaine per month from South America to the United States and Europe. RAYO Montano has been linked to the notorious Norte del Valle Cartel, the Autodefensas Unidas de Colombia (AUC) paramilitary organization, the Fuerzas Armadas Revolucionarias de Colombia (FARC) terrorist organization, and corrupt high-level officials in the Colombian government. On February 22 and March 3, 2006, federal grand juries in the District of Columbia and the Southern District of Florida, respectively, indicted RAYO Montano on money laundering and cocaine trafficking charges. The indictments were the result of Operation Twin Oceans, a three-year OCDETF investigation supported by the DEA SOD. Operation Twin Oceans resulted in 138 arrests and the seizure of 47,550 kilograms of cocaine, 700 pounds of marijuana, ten kilograms of heroin, $1.6 million dollars in U.S. currency, and other assets with a total estimated value of $47 million, including three islands near the coast of Panama. Operation Twin Oceans was conducted by DEA offices in Cartagena, Colombia, Panama City, Panama, Sao Paulo, Brazil, Mexico City, Mexico, Guayaquil, Ecuador, Caracas, Venezuela, Madrid, Spain, Miami, Florida, New York, New York, Chicago and Danville, Illinois, and the SOD. DEA conducted Operation Twin Oceans with national police in Colombia, Panama, Brazil, Ecuador, Spain, and Her Majesties Revenue and Customs.

Extradition of Financial CPOT Gabriel PUERTA-Parra

On May 23, 2006, Colombia extradited former financial CPOT Gabriel PUERTA-Parra to the United States to face charges that include violation of the RICO Act, conspiracy, cocaine trafficking, and money laundering. PUERTA-Parra was arraigned in U.S. District Court for the Southern District of Florida the following day. PUERTA-Parra, a former attorney for the Departmento Administrativo de Seguridad, the Colombian equivalent to the FBI, was a key counselor and advisor to the North Valley Cartel since the 1980s, and an attorney for former Medellín Cartel leader Pablo ESCOBAR. PUERTA-Parra utilized a large range of legitimate businesses, including investment and real estate companies, agricultural enterprises, and currency exchanges to launder drug proceeds through the United States, Mexico, Colombia, Ecuador, and Vanuatu.

Colombian Heroin Kingpin Sentenced to 40 Years in Prison

On May 31, 2006, United States District Judge Robert P. Patterson, Southern District of New York, sentenced Ramiro LOPEZ Imitola to 40 years imprisonment for importing cocaine into the United States. Judge Patterson also ordered LOPEZ Imitola to forfeit $200 million in assets. The charges were the result of a three-year OCDETF investigation conducted by the DEA New York Division Office and the DEA Caracas, Venezuela Country Office. LOPEZ Imitola was the leader of a Cucuta, Colombia and Caracas, Venezuela-based heroin trafficking organization that from 1997 – 2003 imported more than 2,000 kilograms of heroin, worth an estimated $200 million, into the United States. LOPEZ Imitola used more than 250 human couriers recruited in both Venezuela and the United States to smuggle Colombian heroin into the U.S. from Venezuela by ingesting pellets of heroin or transporting heroin-laden suitcases. Colombian authorities arrested LOPEZ Imitola in April 2003 and extradited him to the United States in February 2004. LOPEZ Imitola pleaded guilty on March 15, 2005. This investigation resulted in the arrest of 17 members of the LOPEZ Imitola organization, and the seizure of more than 50 kilograms of heroin. DEA conducted this investigation with ICE, the New York State Police, the New York City, Miami Beach and Coral Gables, Florida Police Departments, the Venezuelan Judicial Police, and the Colombian National Police.

International Money Laundering and MDMA Trafficking Organization Dismantled in an OCDETF Investigation

On June 1, 2006, DEA agents arrested four individuals in the United States and Dutch authorities arrested five individuals in The Netherlands, resulting in the dismantlement of the Alexandre De BASSEVILLE money laundering and MDMA trafficking organization. The De BASSEVILLE organization imported MDMA into the United States and laundered drug proceeds through Limelight Films, Inc., a Hollywood, California-based movie studio. Among those arrested were the chief executive officer of Limelight Films, an executive with Los Angeles-based Bank of America, and a supplier of MDMA based in The Netherlands. This two-year OCDETF investigation also resulted in the seizure of 10,000 MDMA tablets. This investigation was supported by the DEA SOD and conducted by DEA offices in Washington, D.C., Los Angeles, California, Bern, Switzerland, and The Hague. DEA conducted this investigation with the IRS, the FBI, the ATF, and the Arlington, Virginia Police Department.

First-Ever Judicial Wire Intercept in Thailand Resulted in Three Arrests

On June 1, 2006, Thailand authorities arrested Henry SICHONE, Andrew SARPONG, and Yahuza YAKUBU in Bangkok, Thailand. The arrests were the result of a joint investigation between the DEA Bangkok Country Office and Thailand authorities that included the first-ever judicial wire intercept in Thailand. SICHONE and SARPONG were arrested pursuant to Provisional Arrest Warrants issued by the Southern District of New York on March 28, 2006. YAKUBU was arrested as a result of selling heroin and cocaine to a DEA undercover agent. The investigation was part of Operation Ivory Triangle, a 30-month multi-jurisdictional OCDETF investigation targeting West African heroin and money laundering organizations responsible for sending multi-kilogram quantities of heroin from Pakistan and Thailand to the United States, Europe, and Asia. Operation Ivory Triangle, which was coordinated by the DEA SOD, resulted in the arrests of 205 individuals and the seizures of approximately 91 kilograms of heroin, 22 kilograms of cocaine, seven kilograms of marijuana, 10,667 MDMA tablets, 24 vehicles, one vessel, and approximately $2.5 million in U.S. currency.

International Heroin Trafficking Organization Dismantled in an OCDETF Investigation

On June 14 – 15, 2006, DEA agents arrested 12 individuals in Las Vegas, Nevada, Palm Springs, California, Caguas, Puerto Rico, and New York City, resulting in the dismantlement of the Javier MONROY heroin trafficking organization. Since 2004, the MONROY organization has been responsible for importing more than 200 kilograms of heroin into the United States. MONROY is a former Bogotá, Colombia police officer. The MONROY organization used couriers to smuggle heroin from several foreign countries, including Ecuador, Venezuela, Trinidad and Tobago, Colombia, Brazil, and Mexico, to New York for distribution. The organization employed more than a dozen drug couriers, many of whom made multiple drug trips and most of whom were based in the Las Vegas area. Typically, the drug couriers smuggled between three to five kilograms of heroin per trip concealed within the lining of clothes. This 10-month OCDETF resulted in the arrest of 22 individuals, including MONROY, and the seizure of 28 kilograms of heroin and $220,000 in U.S. currency. DEA offices in New York and Las Vegas conducted this investigation with ICE, the Counter Drug-Crime Task Force of the Ministry of National Security of the Republic of Trinidad and Tobago, and the Ecuadorian National Police.

PTO Bernardo Armando De La CERRA Extradited to the United States

On June 14, 2006, the Mexican Government extradited Bernardo Armando De La CERRA from Mexico to San Diego, California. Since 1995, De La CERRA was the leader of a cocaine trafficking organization that imported approximately 100 kilograms of cocaine per month from Mexico into the United States. The De La CERRA organization has been linked to murders in Los Angeles and Tijuana, Mexico and operated an underground tunnel connecting Tijuana, Mexico and San Diego discovered in 2003. In 1997, a grand jury in the Southern District of California indicted De La CERRA for conspiracy to distribute cocaine after an 18-month OCDETF investigation conducted by the DEA San Diego, California Division Office. On June 11, 2006, Mexican authorities arrested De La CERRA in Tijuana, Mexico. This investigation resulted in the dismantlement of the De La CERRA organization, 39 arrests, and the seizure of more than 250 kilograms of cocaine and $550,000 in U.S. currency.

Cocaine and Heroin Trafficking Organization Dismantled in Colombia

On June 22, 2006, the Colombian National Police arrested 20 individuals, resulting in the dismantlement of the Jorge William ARIAS Vera cocaine and heroin trafficking organization. The defendants were charged with drug trafficking in the Colombian judicial system based on an eight-month PTO investigation conducted by the DEA Cartagena Resident Office and the CNP-SIU. During the past year, the ARIAS Vera organization was responsible for smuggling 200 kilograms of cocaine and 15 kilograms of heroin from Pereira, Colombia to the United States and Europe through Venezuela and Mexico. The ARIAS Vera organization utilized couriers to transport cocaine and heroin on commercial flights from Colombia to the United States and Madrid, Spain and go-fast boats to transport the drugs from Colombia’s North Coast to Venezuela. Once in Venezuela, commercial carriers and private aircraft were used to send the drugs through Caribbean transit countries and Mexico to the United States and Europe. In addition to the arrests, which included ARIAS Vera, this investigation resulted in the seizure of approximately 100 kilograms of cocaine and 15 kilograms of heroin by Colombian authorities.

Seizure of 2 Million Pseudoephedrine Tablets in Mexico

On June 24, 2006, the Agencia Federal de Investigaciones (Mexican Federal Police) seized two million tablets of pseudoephedrine at the Mexico City Airport. The shipment was identified and located as the result of an ongoing investigation conducted by the DEA Brussels, Belgium and Mexico City Country Offices. The tablets were sent by a Brussels pharmaceutical manufacturer for delivery to a company in Mexico that does not have a license to import pseudoephedrine. No arrests were made. If converted, the seized pseudoephedrine could have produced 75 kilograms of methamphetamine.

Former Member of Colombian Senate Convicted of Conspiracy to Unlawfully Import Cocaine into the United States

On June 27, 2006, an investigation conducted by the CNP with the assistance of the DEA Cartagena, Colombia Resident Office resulted in the federal conviction of Samuel Santander LOPESIERRA, for conspiracy to unlawfully import cocaine into the United States. LOPESIERRA, a former Colombian Senator from 1993 to 1996, was arrested in October 2002 in Maicao, Colombia and was extradited in August 2003 to the United States. From 1999 to 2002, LOPESIERRA and his associates were responsible for smuggling shipments of hundreds of kilograms of cocaine from the north coast of Colombia to the United States, and for laundering the proceeds so they could be repatriated through Puerto Rico, New York, and Miami back to Colombia. LOPESIERRA, along with 12 other Colombian nationals, were indicted in September 2002, following a 2-year PTO investigation called Operation Conquista, which resulted in the seizure of more than 650 kilograms of cocaine and more than $1.5 million in United States currency. With one exception, all of the defendants extradited in this case have been convicted. LOPESIERRA, who is facing a mandatory minimum sentence of ten years and fines up to $4 million, is scheduled to be sentenced on October 27, 2006. This investigation was coordinated by the DEA SOD, and conducted by DEA offices in New York, New York; Miami, Florida; San Juan, Puerto Rico; Caracas, Venezuela; Curaçao; and the Colombian National Police.

Former Mexican Federal Judicial Police Commandante Arrested For His Role in the Kidnapping and Murder of DEA Special Agent Enrique “Kiki” Camarena

On June 26, 2006, the Mexican Agencia Federal de Investigaciones arrested former Mexican Federal Judicial Police (MFJP) Comandante Jorge Armando PAVON Reyes in Mexico City based on U.S. charges related to the 1985 abduction, torture, and murder of DEA Special Agent Enrique “Kiki” Camarena. On February 7, 1985, members of the Guadalajara Cartel kidnapped DEA Special Agent Camarena and tortured him at a house in Guadalajara, Mexico for one and a half days before murdering him. Special Agent Camarena was assigned to the DEA Guadalajara Resident Office and had been investigating the Cartel’s marijuana trafficking activities at the time of his kidnapping. PAVON Reyes, an MFJP Commandante in charge of the marijuana eradication program in the Guadalajara area at the time, was present in the house while Special Agent Camarena was held captive, and used his position to help Cartel leaders flee Guadalajara two days after the kidnapping. In July 1993, a grand jury in the Central District of California indicted PAVON Reyes for racketeering, kidnapping of a federal agent, and accessory to murder charges. The indictment was the result of a three-year investigation conducted by the DEA Los Angeles Division Office and the U.S. Attorney’s Office for the Central District of California.

“Operation Cyber Chase” Internet Pharmaceutical Trafficker Convicted of Conspiracy to Import and Distribute Controlled Substances and Money Laundering in the U.S. District Court for the Eastern District of Pennsylvania

On July 17, 2006, after a trial, Sanseev SRIVASTAN was convicted of conspiracy to import and distribute controlled substances and money laundering. SRIVASTAN oversaw the Internet distribution of pharmaceutical controlled substances for an international organization that used rogue Internet pharmacies to dispense controlled substances directly to customers without a medical evaluation by a physician. Between July 2003 and April 2005, SRIVASTAN and his co-conspirators distributed more than 2.5 million dosage units of Schedule II, III, and IV pharmaceutical controlled substances per month. In April 2005, DEA agents arrested SRIVASTAN and 19 other members of the organization following a one-year OCDETF investigation that resulted in the dismantlement of the organization, the arrest of 26 individuals, and the seizure of more than 9 million dosage units of Schedule II, III, and IV controlled substances, 231 pounds of Ketamine, and $8.6 million in U.S. currency. This investigation was coordinated by the DEA SOD and conducted by DEA offices in Philadelphia, New York City, Rochester, New York, New Delhi, India, Vienna, Austria, Canberra, Australia, and San Jose, Costa Rica. Other agencies participating in this cooperative investigation included the FBI, ICE, the U.S. Food and Drug Administration, the U.S. Postal Inspections Service, the IRS, the Australian Federal Police, the Narcotics Control Board of India, the Costa Rican Judicial Police, Drug Control Police, and Drug Institute, and numerous U.S. state and local law enforcement agencies.

International Khat Trafficking Organization Dismantled in an OCDETF Investigation

On July 26, 2006, DEA agents in ten U.S. cities arrested 48 individuals, resulting in the dismantlement of the Bashi MUSE international khat trafficking organization. Between December 2004 and July 2006, the MUSE organization smuggled more than 25 tons of khat, with a street value of more than $10 million, from Kenya and Ethiopia into the United States. Khat is a plant cultivated in the Horn of Africa. Among the active ingredients in khat are cathinone, a Schedule I controlled substance, and cathine, a Schedule IV controlled substance. The MUSE organization imported khat into the United States by utilizing couriers on commercial airlines from London and by sending packages through commercial express mail services from various countries in Western Europe. The organization transferred khat proceeds through money remitters and banks in the United States, to accounts in Dubai, United Arab Emirates, Europe, and Africa. Federal grand juries in the Southern District of New York and the District of Washington indicted 44 members of the MUSE organization on money laundering and khat importation and trafficking charges. This is the largest khat-trafficking prosecution in United States history. The indictments were the result of Operation Somalia Express, an 18-month OCDETF investigation supported by the DEA SOD. To date, Operation Somalia Express has resulted in the arrest of 52 individuals, including MUSE, and the seizure of five tons of khat, worth more than $2 million. The DEA New York Strike Force conducted this investigation with the FBI, the New York State Police, the IRS, the Department of Homeland Security (DHS), ICE, the New York City Police Department, the U.S. Marshals Service, Customs and Border Protection, the Nassau County Police Department, and the Hennepin County Sheriff’s Department in Minnesota.

210 Kilograms of Heroin Seized in Istanbul, Turkey

On July 22, 2006, the Turkish National Police seized 210 kilograms of heroin in Istanbul, Turkey as the result of a joint investigation with the DEA. Five members of an Istanbul-based heroin trafficking organization, including leader Riza POLAT, were arrested while preparing the heroin for transportation to Holland. This investigation is being conducted by the DEA Istanbul, Turkey Resident Office and the Turkish National Police.

MDMA Trafficking Organization Dismantled in an OCDETF Investigation

On August 10, 2006, agents from the DEA Oakland, California Resident Office arrested five individuals, resulting in the dismantlement of the Johnson MAI MDMA trafficking organization. During the past two years, the MAI organization was responsible for the distribution of 50,000 MDMA tablets per month in the San Francisco Bay area. The MAI organization transported MDMA tablets from their point of manufacture in the Netherlands to San Francisco inside leather sofas, pianos, and automobile transmissions. In addition, the MAI organization used drug proceeds laundered through Hong Kong and United States bank accounts to purchase San Francisco Bay area homes. This investigation was part of Operation Sweet Tooth, a 2-year OCDETF investigation coordinated by the DEA SOD. Operation Sweet Tooth resulted in the arrest of 322 individuals, including MAI, who was charged with operating a continuing criminal enterprise and the seizure of more than 1 million MDMA tablets and $11 million in U.S. currency. This investigation was led by DEA offices in Atlanta, Georgia; Los Angeles, San Diego, Fresno, San Jose, Sacramento, and Riverside California; Chicago, Illinois; Houston, Dallas, San Antonio, and Austin, Texas; Denver, Colorado; New Orleans, Louisiana; Seattle, Washington; Indianapolis, Indiana; Jacksonville, Tampa, Pensacola, and Orlando, Florida; Charlotte, North Carolina; Columbus, Ohio; Mobile, Alabama; Gulfport, Mississippi; Albuquerque, New Mexico; Vancouver and Ottawa, Canada; and Hanoi, Vietnam. DEA conducted this investigation with ICE, DHS, the IRS, the Royal Canadian Mounted Police, and the California Bureau of Narcotics.

Internet Pharmaceutical Trafficking Organization Dismantled in an OCDETF Investigation

On July 25-26, 2006, agents from the DEA, ICE, and the Brazilian Federal Police arrested eight individuals, resulting in the dismantlement of the Mauro FILETO Internet pharmaceutical drug trafficking organization. Since June 2005, the FILETO organization distributed more than 7,800 dosage units per month of Schedule II and IV pharmaceutical controlled substances to customers without medical evaluations through rogue Internet pharmacies. The websites advertised that pharmaceuticals could be shipped anywhere in the world without a prescription and gave specific instructions on how to evade law enforcement and circumvent Customs detection. Illegal proceeds for the pharmaceuticals were sent from Sao Paolo, Brazil to the United States into multiple bank accounts held by FILETO in Georgia and were then transferred into domestic companies and foreign bank accounts. In addition to the arrests, which included FILETO, this six-month OCDETF investigation resulted in the seizure of 7,000 Oxycontin tablets and $2.3 million from six bank accounts. This investigation was coordinated by the DEA SOD, led by the Houston Division Office and conducted with the DEA Sao Paulo, Brazil Country Office, ICE and the United States Postal Service.

Seizure of Methamphetamine Super Lab in Mexico

On August 1, 2006, DEA-trained officers from the Jalisco, Mexico State Police seized an operational methamphetamine “Super-Lab” in Tlajomulco de Zuniga, Jalisco, Mexico. Approximately 100 kilograms of finished methamphetamine, more than 3,000 liters of various solvents and chemicals, four barrels of iodine, laboratory equipment, and a large quantity of pseudoephedrine pills were seized. The Jalisco State Police arrested four individuals who will be prosecuted in Mexico. The members of the Jalisco State Police unit who made the seizure participated in a DEA-sponsored clandestine laboratory seminar, which is part of the program designed to familiarize 1,000 Mexican state and local police officers with precursor chemicals, methods of production and manufacturing, local laws, regional trends, methods of diversion, and international chemical control. The DEA Guadalajara Resident Office coordinated with the Mexican Agencia Federal de Investigaciones (AFI) Clandestine Laboratory Unit and the Subprocuraduria De Investigaciones Especializada de Delincuencia Organizada (SIEDO) prosecutors and arranged for them to respond to the scene. The Mexican military also assisted in this operation.

Agustin VASQUEZ Mendoza Convicted of Murdering DEA Agent

On August 8, 2006, a jury in Maricopa County, Arizona convicted Agustin VASQUEZ Mendoza of the first-degree murder of DEA Special Agent Richard E. Fass. Special Agent Fass was murdered in Glendale, Arizona in June 1994, while working undercover during a DEA investigation of VASQUEZ Mendoza’s methamphetamine trafficking organization. VASQUEZ Mendoza was arrested in Mexico in July 2000, with the assistance of DEA. In January 2005, the GOM extradited VASQUEZ Mendoza to the United States. Three associates of VASQUEZ Mendoza were also convicted for their roles in the killing and are currently incarcerated. VASQUEZ Mendoza was sentenced to 71 years in prison for the first degree murder of SA Fass. DEA conducted this investigation with the FBI, ICE, the U.S. Marshals Service, the Maricopa County Attorney’s Office, the Maricopa County Sheriff’s Office, and the Phoenix and Glendale, Arizona Police Departments.

Colombian Attorney General’s Office Seized $150 Million in Drug Trafficker Assets

From August 23 to 30, 2006, the Colombian Attorney General’s Investigative Unit executed 89 seizure warrants for properties linked directly to the drug trafficking activities of Alberto GRAJALES-Lemos. GRAJALES is associated with CPOT Carlos Alberto RENTERIA-Mantilla, who is responsible for multi-ton shipments of cocaine to the United States. Eleven individuals were arrested and $150 million worth of properties, which include businesses, residences, farms, and parcels of land located in Bogotá, Cali, Cartagena, and San Andres, Colombia, were seized. This twelve-month investigation was conducted by the DEA Bogotá Country Office, in conjunction with the Office of Foreign Asset Control and the DEA Jacksonville, Florida District Office.

Two Guatemalan Officials Plead Guilty in Washington DC District Court

On September 7, 2006, the former Chief and second in command of the Guatemalan lead drug enforcement agency, Adan CASTILLO Aguillar and Jorge AGUILLAR Garcia, respectively, pled guilty to conspiracy to manufacture, distribute and knowingly import into the United States five kilograms or more of cocaine. In November 2005, CASTILLO and AGUILLAR met with DEA cooperating sources and accepted $25,000 as a down payment to protect a large shipment of cocaine. The two defendants were later arrested in the United States.

DEA Provides Information About Weapons Cache in Afghanistan

On September 3, 2006, agents from the DEA Kabul, Afghanistan Country Office received information regarding a weapons cache in the province of Nangarhar, Afghanistan. The U.S. Military subsequently raided the site and recovered seven 82mm mortars, two rocket propelled grenades and eight cases of 12.75mm heavy machinegun ammunition. The weapons cache had been moved to a secluded cave within the last week, suggesting its intended use for an impending attack. No documents were recovered and it is not yet known to whom the weapons belonged.

United States Agents Discover a Cross-Border Tunnel

On September 15, 2006, agents from the DEA San Diego Division Office discovered a 400-foot tunnel extending from a residence in Calexico, California to one in Mexicali, Mexico. The tunnel was discovered as a result of an investigation into a marijuana trafficking organization. As a result of this investigation, one individual was arrested and 1,000 pounds of marijuana were seized. The tunnel, which took eight months to build, was operational since July and was used to smuggle eight tons of marijuana for distribution to Los Angeles, California, North and South Carolina and New York. This ongoing DEA investigation was conducted with ICE, the United States Border Patrol and the Calexico, California Police Department.

MDMA Trafficking Organization Dismantled in an OCDETF Investigation

On September 17, 2006, agents from the DEA New York, Philadelphia, and Washington Division Offices arrested 19 individuals in New York, Pennsylvania, and Maryland resulting in the dismantlement of the Thuong Tri TANG MDMA trafficking organization. The TANG organization imported more than 25,000 dosage units of MDMA per month from Canada for distribution to the United States Eastern Seaboard. This 18-month OCDETF investigation resulted in 27 arrests, including TANG, and the seizure of more than 125,000 MDMA tablets, over $100,000 in U.S. currency, and three firearms. The DEA conducted this investigation with ICE, the FBI, the City of New York Police Department, and the Royal Canadian Mounted Police.

OCDETF Investigation Resulted in the Dismantlement of a Regional PTO

On September 21, 2006, agents from the DEA Anchorage District Office arrested 18 individuals, resulting in the dismantlement of the Azim LIMANI cocaine trafficking organization. During the past ten years, the LIMANI organization distributed five kilograms of cocaine per month in the Anchorage area and outlying regions of Alaska. To date, this 5-year OCDETF investigation has resulted in the arrest of 27 individuals, including Regional PTO LIMANI, and the seizure of three kilograms of cocaine, $83,681 in U.S. currency and five firearms. The DEA conducted this investigation with the FBI, the IRS, ICE and the Anchorage, Alaska Police Department.

CPOTs Miguel and Gilberto RODRIGUEZ-OREJUELA Plead Guilty and Agree to a $2.1 Billion Money Judgment

On September 26, 2006, CPOTs Miguel and Gilberto RODRIGUEZ-OREJUELA pled guilty in U.S. District Court for the Southern District of Florida to conspiracy to import cocaine, and agreed to plead guilty in the Southern District of New York to conspiracy to commit money laundering. Each brother was sentenced to thirty years in prison. The brothers also agreed to the entry of a $2.1 billion judgment of forfeiture, and the forfeiture of 287 properties. Twenty-eight family members have also agreed to these forfeitures. The RODRIGUEZ-OREJUELA brothers ran the Cali Cartel in Colombia, and since 1990 imported and distributed more than 200,000 kilograms of cocaine from Colombia to the United States. This investigation was conducted by the DEA New York and Miami Divisions, the DEA Bogotá Country Office, and the Office of Foreign Asset Control.

SPECIFIC EDITORIAL COMMENTS

The following comments are provided for clarification on individual findings:

FINANCIAL OPERATION ENDEAVORS

Page 55, first paragraph under the heading “Imprest Funds”

DEA is authorized to hold $2,786,000 as cash outside of the U.S. Treasury; this amount matches the amount reported on the DEA Standard General Ledger. However, the OIG report continues to show that the imprest fund balance is 3.18 M. The report should reflect that DEA’s imprest fund was accurately reported at $2,786,000. The difference of $394,000 reflects funds advanced by the Department of State (DOS). These funds are identified in the DOS’s general ledger.

Page 57, first paragraph under the heading “DEA Audits of Imprest Funds”

This paragraph concludes that audits of imprest funds were occasionally conducted by persons having supervisor responsibility over the imprest fund. According to DOJ OIG records this happened on six occasions in FY 2004 and FY 2005, with the last occurrence on September 30, 2005. However, a DEA review of the audits identified that four of the six exceptions were incorrectly cited by the OIG. Specifically, DEA’s policy to prohibit an individual who is in the cashier’s chain of command from conducting an imprest fund audit became effective on December 16. 2005. Two of the audits were conducted prior to this date (November 10, 2004 and November 22, 2004) and should not be cited as exceptions. The OIG also cited an audit conducted on August 19, 2005, which was performed by the Acting RAC. However, according to an inquiry made to the Acting RAC back in October 2005, the cashier was not in this person’s chain of command. Documentation is available regarding this issue.

Another audit cited by the OIG was conducted on September 30, 2005. This is an announced audit that occurs on the last work day of each fiscal year to meet financial statement reporting requirements. While DEA acknowledges that this occasionally occurred back in FY 2004 and FY 2005, FNO began conducting comprehensive post audit reviews of all imprest fund audits in the 3 rd quarter of FY 2005. Any deficiencies identified as a result of the post audit review are conveyed to the Office Head for corrective action. As a result of this increased oversight, DEA had only 18 exceptions to this policy out of 1,880 performed quarterly audits in FY 2006, which represents .009%. Corrective action for these minimal exceptions has been taken at each appropriate location.

Page 59, first paragraph top of the page

DEA requests that this paragraph be reorganized to present the DOJ OIG opinion first, DEA established policies and procedures second, and DEA‘s established system for auditing field office imprest funds as the closing sentence to the paragraph. Presenting the DOJ OIG opinion as the closing sentence implies that DEA has not corrected this issue, when in fact a review of the monitoring program results shows a significant decrease in the number of imprest fund audit issues since the program was put in place in FY 2005.

Page 58 Chart

Foreign Imprest Fund Transactions Tested
Type and number of Exceptions Found

Insufficient Supporting Documentation

The Bogotá Office was inspected by the DEA Office of Inspections after the DOJ OIG Audit. Additionally, as part of the independent audit of DEA’s FY 2006 financial statements, the Bogotá Office was audited by KPMG after the DOJ OIG Audit. Neither group reported any findings related to the operation of the imprest fund.

Receipts for Advances Not Cleared Timely

The original final draft report cited 28 exceptions in this category. That number was reduced to 21 after DEA was given the opportunity to review the supporting documentation. DEA policy requires advances to be cleared within two business days; however, the OIG auditors incorrectly equated this with a 48 hour time frame. As a result, DEA was cited for not clearing advances on weekends and holidays.

Missing Signatures

While DEA acknowledges that this was an issue in FY 2005, FNO contacted each cashier and reminded them of their requirement to sign the DEA 12 as witnesses. In order to ensure compliance with this policy, FNO began judgmental sampling of the DEA 12s in August 2005. Any non-compliance of this policy was reported to the cashier and office head for corrective action. These offices were again sampled to ensure that corrective action had been taken. As a result of these efforts, DEA’s external auditors found only one exception to this policy in FY 2006. The exception was cited as an isolated incident.

Funds Issued to Improper Recipients

DEA has addressed issuing funds to improper recipients by publishing Chief Financial Officer’s Bulletin 2006-13. A copy of the bulletin is attached.

INTERNATIONAL TRAINING ENDEAVORS

p. xvii (Executive Summary) and again on p. 71 – “… we found room for improvement in the DEA’s coordination of its international training with other agencies that provide similar training…”

As the Office of Training indicated previously to OIG, DEA efforts to coordinate its international training is extensive and far beyond what most other agencies do. DEA also coordinates on a frequent and as needed basis with the Department of Defense, NATO, Europol, and foreign police services regarding International Training. In fact, other agencies frequently seek guidance from DEA regarding how to conduct cooperative training.

DEA is the only agency to provide counter-drug training on behalf of the USG to foreign countries. Nevertheless, DEA participates in six regularly scheduled meetings annually to coordinate International Training Activities with the following agencies:

Department of State, INL
Immigration and Customs Enforcement
United States Secret Service
Federal Law Enforcement Training Center (FLETC)
Internal Revenue Service
FINCEN
Customs and Border Protection
Alcohol, Tobacco, Firearms, and Explosives (ATF)
ICITAP
United States Department of Justice, Tax Division
Federal Bureau of Investigation
John Jay College of Criminal Justice
Department of Treasury
Office of Overseas Prosecutorial Development, Assistance, and Training
(OPDAT)
United States Marshals Service
Diplomatic Security Service
Narcotics Affairs Section

Additionally, in the entire OIG report, only one of the 86 foreign DEA offices (Colombia) yielded a response that the DEA Bogotá Country Office had not approached Colombia NAS regarding funding possibilities for training. This is indicative of the responsibility of one foreign office and should not account for the statement by OIG that improvement is needed by International Training.

p. xvii (Executive Summary) and again on p.71 and p. 80 – “DEA personnel stationed in foreign offices did not receive appropriate training on certain administrative functions important to the maintenance of DEA foreign office operations, such as on imprest fund administration and on accountable property management.”

The International Training Section is tasked with providing foreign police officials with training relative to counter-drug enforcement activities and is NOT responsible for administrative training for DEA employees. Refer to TRI Mission Statement on p. 71. The statement “DEA personnel stationed in foreign offices did not receive appropriate training on certain administrative functions important to the maintenance of DEA foreign office operations, such as on imprest fund administration and on accountable property management” should be placed under Chapter 5-Administrative Functions. This statement does not belong under the International Training Section, which specifically addresses DEA’s delivery of international counternarcotics drug training. It was agreed at the OIG review conference that this comment, while accurate, should not be included in the International Training section, but rather under Chapter 5 – Administrative Function. This would include recommendation #22 listed on page 80 of the report.

p. 72 “Some SIU commanders in Mexico and Colombia stated that they wanted the training to include more sophisticated investigative techniques, such as pen registers and advanced wire intercepts.”

DEA, as well as any other USG entity, is regulated in regards to the level of sophisticated training that can be provided to foreign nations by the “Arms Export Control Act,” and in many cases cannot and should not provide the training that a foreign country is requesting regarding wire intercept capabilities and technologies.

There is no reference that DEA is in compliance with these regulations in the draft report; rather it appears that there is a training shortfall that needs to be addressed because a few SIU commanders are requesting training that is beyond the scope of our authority. Additionally, the level of training provided to foreign counterparts is often determined by the amount of cooperation they afford, or do not afford to DEA, a fact that was not considered by the OIG. Annual curriculum development conferences do address and allow for the training to be adjusted and advanced routinely as much as possible in compliance with the law.

INTERNATIONAL OPERATIONS ENDEAVORS

On page 88 it states that Rome opened in 1951, and was the third U.S. office opened historically to concentrate on counternarcotics. However, in Chapter 1: Introduction, at the bottom of Page 1, the reports states Rome was the first foreign office the U.S. opened in 1951. Page 88 needs to be revised to correctly reflect that Rome was, in fact, the first foreign office opened in 1951 by the U.S.

Page 89 The report incorrectly includes the Ottawa and Vancouver offices under the Mexico and North America Region and Cairo under the Middle East Region area of responsibility. These offices should be removed.

CFO Bulletin

DRUG ENFORCEMENT ADMINISTRATION/FINANCIAL MANAGEMENT DIVISION

CFO No. 06-13                                                                OCT 23 2006

SUBJECT: Advancing Funds to Foreign Service Nationals

Advancing funds to foreign service nationals (FSNs) has been the subject of repeated discussion between the Office of Finance and the foreign offices. There is no existent DEA policy allowing such advances and the Financial Management and Policy Handbook (FMPH) clearly states that cashiers should ensure that advances are made only to DEA employees (Chapter 8, Section 8a.6.1). However, in past actual practice some FSNs at foreign posts have been advanced funds directly or have been transferred funds from a DEA employee who originally withdrew the cash from an imprest fund or operational advance.

Based on recent guidance from the Office of Chief Counsel, FSNs cannot be directly advanced funds. Government funds may only be disbursed to individuals deemed responsible or accountable government employees and officers. Because in this context FSNs are not considered responsible or accountable for the funds under the applicable statutes and regulations, they cannot be held responsible for the loss of funds under 31 V.S.C. 3527.

Government employees who transfer funds to FSNs do so at their own risk. Any loss of funds, regardless of fault, which occurs while in the possession of an FSN, will be the full responsibility of the government employee who was originally advanced the funds. This applies to funds withdrawn from the imprest fund or his/her operational advance.

If you have any questions regarding this matter please contact Bradley J. Honkus, Chief, Financial Integrity Section at (202) 307-7082.

Frank M. Kalder
Chief Financial Officer
Financial Management Division

Distribution:

Assistant Administrators
Deputy Assistant Administrators
Headquarters Office Heads
Special Agents in Charge
Associate Special Agents in Charge
Assistant Special Agents in Charge
Laboratory Directors
Resident Agents in Charge
Country Attaches
Assistant Country Attaches
Administrative Officers