US-based cocaine trafficker jailed, fined $5.4M : Kaieteur News

US-based cocaine trafficker jailed, fined $5.4M : Kaieteur News: "Lewis Duffie, of Bronx, New York appeared before Magistrate Hazel Octive-Hamilton and pleaded guilty to trafficking in cocaine. He was sentenced to four years in prison and fined $5.4 million.
This newspaper was told that the 30-year-old man, was seen acting in a suspicious manner and was called to have his luggage searched by CANU ranks. During the search, it was noticed that there was a false lining on the inside of the suitcase.
A thorough search on the man’s suitcase unearthed a white powdery substance which was subsequently tested positive as cocaine. The substance weighed some six kilograms.
Only last weekend two persons in the city were found with cocaine by CANU. Those persons have already been placed before the courts and remanded.
Also on Thursday last, a quantity of cocaine was found on board a Roraima Airways charter which was destined for Trinidad en route to Canada. This newspaper was told that the cocaine was found by ranks of the Police Narcotics who were conducting duties at the Cheddi Jagan International Airport.
Reports are that the cocaine was found concealed in a FedEx package which was onboard the flight. One person is in police custody and is expected to be charged soon."

US-based cocaine trafficker jailed, fined $5.4M : Kaieteur News

US-based cocaine trafficker jailed, fined $5.4M : Kaieteur News: "Lewis Duffie, of Bronx, New York appeared before Magistrate Hazel Octive-Hamilton and pleaded guilty to trafficking in cocaine. He was sentenced to four years in prison and fined $5.4 million.
This newspaper was told that the 30-year-old man, was seen acting in a suspicious manner and was called to have his luggage searched by CANU ranks. During the search, it was noticed that there was a false lining on the inside of the suitcase.
A thorough search on the man’s suitcase unearthed a white powdery substance which was subsequently tested positive as cocaine. The substance weighed some six kilograms.
Only last weekend two persons in the city were found with cocaine by CANU. Those persons have already been placed before the courts and remanded.
Also on Thursday last, a quantity of cocaine was found on board a Roraima Airways charter which was destined for Trinidad en route to Canada. This newspaper was told that the cocaine was found by ranks of the Police Narcotics who were conducting duties at the Cheddi Jagan International Airport.
Reports are that the cocaine was found concealed in a FedEx package which was onboard the flight. One person is in police custody and is expected to be charged soon."

Joseph Tyrell Sanders and Shamela Ashon Peele charged on August 22nd.

Joseph Tyrell Sanders of Plymouth and Shamela Ashon Peele of Brooklyn, New York were charged on August 22nd. Authorities tell us an investigator purchased 110 grams of cocaine from the two men. They were arrested immediately thereafter. The street value of the cocaine is roughly $11,000. Both men were confined under a $200,000 secured bond.

Joseph Tyrell Sanders and Shamela Ashon Peele charged on August 22nd.

Joseph Tyrell Sanders of Plymouth and Shamela Ashon Peele of Brooklyn, New York were charged on August 22nd. Authorities tell us an investigator purchased 110 grams of cocaine from the two men. They were arrested immediately thereafter. The street value of the cocaine is roughly $11,000. Both men were confined under a $200,000 secured bond.

John Gotti Junior is suspected of being involved in three murders and large-scale cocaine smuggle.

John Gotti Junior, son of the former ‘Godfather’ of the Gambino family John Gotti (Senior), was arrested by the FBI yesterday. He is suspected of being involved in three murders and large-scale cocaine smuggle. Gotti Junior was the leader of the Florida branch of the Gambino family in the 1980s. The murders and drugs charges date from that eraThe suspect himself denies the charges, emphasizing that he broke with the mafia decades ago.

John Gotti Junior is suspected of being involved in three murders and large-scale cocaine smuggle.

John Gotti Junior, son of the former ‘Godfather’ of the Gambino family John Gotti (Senior), was arrested by the FBI yesterday. He is suspected of being involved in three murders and large-scale cocaine smuggle. Gotti Junior was the leader of the Florida branch of the Gambino family in the 1980s. The murders and drugs charges date from that eraThe suspect himself denies the charges, emphasizing that he broke with the mafia decades ago.

Shawn Sadler, aka Tagulifu Barber or Carlos T. Watts sentenced to 20 years and 10 years of supervised release.

Shawn Sadler, aka Tagulifu Barber or Carlos T. Watts, 37, of Ladson, was sentenced to 20 years and 10 years of supervised release. Sandy Sandiford, 37, of New York, was sentenced to 5 years, 10 months in prison, and five years supervised release.
Sadler and Sandiford were arrested in July 2002 sitting in a car outside a Northeast Richland County home after a deputy found $120,000 in cash in the trunk. Officers obtained a search warrant and found more than seven kilograms of cocaine inside the home and a car with electronically controlled hidden compartments for drug smuggling in the garage. Service records found inside indicated Sadler had driven the car.Other members of the conspiracy have been sentenced.

Shawn Sadler, aka Tagulifu Barber or Carlos T. Watts sentenced to 20 years and 10 years of supervised release.

Shawn Sadler, aka Tagulifu Barber or Carlos T. Watts, 37, of Ladson, was sentenced to 20 years and 10 years of supervised release. Sandy Sandiford, 37, of New York, was sentenced to 5 years, 10 months in prison, and five years supervised release.
Sadler and Sandiford were arrested in July 2002 sitting in a car outside a Northeast Richland County home after a deputy found $120,000 in cash in the trunk. Officers obtained a search warrant and found more than seven kilograms of cocaine inside the home and a car with electronically controlled hidden compartments for drug smuggling in the garage. Service records found inside indicated Sadler had driven the car.Other members of the conspiracy have been sentenced.

Tim Montgomery denied bond on federal heroin distribution charges.

Montgomery appeared today in U.S. District Court before Magistrate Judge F. Bradford Stillman. He pleaded not guilty to the charges and requested a jury trial, which the judge set for July 9.A federal judge denied bond for former track star Tim Montgomery on federal heroin distribution charges.The former 100-meter world-record holder was arrested last week on a sealed indictment accusing him of dealing more than 100 grams of heroin in Virginia.Stillman said Montgomery is a flight risk and a danger to the community, noting he is accused of dealing heroin in Virginia four times to a government informant after he pleaded guilty in a New York-based check-kiting conspiracy. He is to be sentenced May 16 in that case.The 33-year-old Montgomery pleaded guilty in the New York case, admitting he helped his former coach, Olympic champion Steve Riddick, and others cash $1.7 million in stolen and counterfeit checks. He faces up to 46 months in prison.
Eric Hurt, an assistant U.S. attorney, called the heroin case straightforward.
Montgomery met four times with a confidential informant from August to April, dealing a total of 111 grams of heroin for $8,450, Hurt told the judge.Authorities recorded the meetings on audiotape and, in two cases, also on videotape. Drug Enforcement Administration agents also observed the transactions, Hurt said.
Montgomery’s defense attorney James O. Broccoletti declined to comment after the hearing, as did members of Montgomery’s family, who were in court.
Riddick is serving a five-year prison term. Montgomery’s former companion, Olympic gold medalist Marion Jones, is serving a six-month prison term for lying to investigators about the check-fraud scam and using steroids.
Montgomery won a gold medal in the 400 relay at the 2000 Olympics and a silver medal in the 400 relay at the 1996 Olympics.
Montgomery retired in December 2005 after he was banned from track for two years by the Court of Arbitration for Sport for doping linked to the investigation of BALCO, the lab at the center of a steroid scandal in sports. He never tested positive for drugs and has said he never knowingly took any banned substances.
All performances after March 31, 2001, were wiped from the books, including his world record of 9.78 seconds in the 100 meters in September 2002.

Tim Montgomery denied bond on federal heroin distribution charges.

Montgomery appeared today in U.S. District Court before Magistrate Judge F. Bradford Stillman. He pleaded not guilty to the charges and requested a jury trial, which the judge set for July 9.A federal judge denied bond for former track star Tim Montgomery on federal heroin distribution charges.The former 100-meter world-record holder was arrested last week on a sealed indictment accusing him of dealing more than 100 grams of heroin in Virginia.Stillman said Montgomery is a flight risk and a danger to the community, noting he is accused of dealing heroin in Virginia four times to a government informant after he pleaded guilty in a New York-based check-kiting conspiracy. He is to be sentenced May 16 in that case.The 33-year-old Montgomery pleaded guilty in the New York case, admitting he helped his former coach, Olympic champion Steve Riddick, and others cash $1.7 million in stolen and counterfeit checks. He faces up to 46 months in prison.
Eric Hurt, an assistant U.S. attorney, called the heroin case straightforward.
Montgomery met four times with a confidential informant from August to April, dealing a total of 111 grams of heroin for $8,450, Hurt told the judge.Authorities recorded the meetings on audiotape and, in two cases, also on videotape. Drug Enforcement Administration agents also observed the transactions, Hurt said.
Montgomery’s defense attorney James O. Broccoletti declined to comment after the hearing, as did members of Montgomery’s family, who were in court.
Riddick is serving a five-year prison term. Montgomery’s former companion, Olympic gold medalist Marion Jones, is serving a six-month prison term for lying to investigators about the check-fraud scam and using steroids.
Montgomery won a gold medal in the 400 relay at the 2000 Olympics and a silver medal in the 400 relay at the 1996 Olympics.
Montgomery retired in December 2005 after he was banned from track for two years by the Court of Arbitration for Sport for doping linked to the investigation of BALCO, the lab at the center of a steroid scandal in sports. He never tested positive for drugs and has said he never knowingly took any banned substances.
All performances after March 31, 2001, were wiped from the books, including his world record of 9.78 seconds in the 100 meters in September 2002.

Vonnie Williams, Aaron Washington used "mules" and mail to import pounds of cocaine from New York and Oregon for at least five years it is alleged

Vonnie Williams, 44, and Aaron Washington, 42, were co-leaders of a continuing criminal enterprise to import and sell cocaine in Juneau. The men are co-defendants and have trials scheduled for June. Williams is held on $75,000 bail, and Washington is held on $100,000 bail.
Three women with long-term criminal records support eight of the 16 charges leveled at Williams. Tonya Williams-Brown, 27, told state troopers that she was the source of "kilo after kilo of cocaine" delivered to the partners and is the source for 11 of 19 charges against Washington. Sgt. Dave Campbell, head of Juneau police investigations, said that vice crimes are conducted by willing parties on both sides and that cases built around vice crimes, such as drugs, often include people with "issues" or criminal behavior. "You're going to need someone from that lifestyle to come forward," Campbell said.
Authorities say that Williams and Washington used "mules" and mail to import pounds of cocaine from New York and Oregon for at least five years. No package with either man's name containing drugs was ever seized by police.
On Nov. 30, 2007, authorities grabbed Laura Johnson, 33, as she deplaned Alaska Airlines Flight 75 at Juneau International Airport based on an informant tip that she was carrying drugs. When cornered by police, Johnson, who had arrived from Seattle, produced 6.49 ounces of cocaine from a six-inch tube hidden in her body, according to court records. Page 5 of the 14-page charging document claims that Williams aided in Johnson's possession of that cocaine. The felony drug charge against Johnson, for transporting "large quantities" of cocaine into the state, was dropped in February. The district attorney's office expects Johnson, who has past convictions for contempt of court and assault, to testify truthfully at a later date, according to records. "I'm sure the defense will raise the issue of character," Campbell said. An Anchorage attorney representing Washington said it's not uncommon for authorities to make deals with lower level criminals to get to "sources higher up." Sometimes the methods yield the higher source and sometimes not, William Carey said. "Several of the individuals have histories that clearly make their statements suspect," Carey said. "As a defense attorney, I have to explore that." Williams' attorney, Tom Schulz, was unreachable Tuesday.
Johnson's claims substantiate two other drug charges in the indictment, one for July 4, 2007, and one for Nov. 18, 2007.
Often, informants' and witnesses' claims are suspect based on their criminal records and the deals they made with prosecutors, Carey said. The idea to investigate Washington's and Williams' alleged drug operation in a larger context, as organized and ongoing, came from state police after Williams was arrested by Juneau police in connection to a theft and forgery ring with six others. The larger drug investigation didn't really get started until late 2007, Campbell said.
"We looked back to see who mentioned them in the past," Campbell said.
Police said they caught Darlene Hurlbut, 28, with an undisclosed amount of narcotics on May 9, 2003. Later that summer, the felony case against her was dismissed. Now, Hurlbut is the source of two counts of cocaine dealing leveled against Williams in the indictment. The state alleges that twice in the last week of March 2003, Williams aided Hurlbut in possessing cocaine.
Campbell said charges against Hurlbut could have been dropped for any number of reasons. He was not in charge of the drug unit back then. "In general, from time to time, the DA's office enters into agreements with individuals with information we feel is important," District Attorney Doug Gardner said. "These agreements are discoverable and available for the jury to take into consideration."
Citing the open case, Gardner declined to comment on the credibility of witnesses and informants that have criminal histories.
Campbell said in his experience a criminal could be an acceptable witness in court where credibility, in part, comes from experience. Criminals have firsthand knowledge on the issue. Another component to credibility is honesty, he said.
"There is such a thing as an honest criminal," Campbell said.

Vonnie Williams, Aaron Washington used "mules" and mail to import pounds of cocaine from New York and Oregon for at least five years it is alleged

Vonnie Williams, 44, and Aaron Washington, 42, were co-leaders of a continuing criminal enterprise to import and sell cocaine in Juneau. The men are co-defendants and have trials scheduled for June. Williams is held on $75,000 bail, and Washington is held on $100,000 bail.
Three women with long-term criminal records support eight of the 16 charges leveled at Williams. Tonya Williams-Brown, 27, told state troopers that she was the source of "kilo after kilo of cocaine" delivered to the partners and is the source for 11 of 19 charges against Washington. Sgt. Dave Campbell, head of Juneau police investigations, said that vice crimes are conducted by willing parties on both sides and that cases built around vice crimes, such as drugs, often include people with "issues" or criminal behavior. "You're going to need someone from that lifestyle to come forward," Campbell said.
Authorities say that Williams and Washington used "mules" and mail to import pounds of cocaine from New York and Oregon for at least five years. No package with either man's name containing drugs was ever seized by police.
On Nov. 30, 2007, authorities grabbed Laura Johnson, 33, as she deplaned Alaska Airlines Flight 75 at Juneau International Airport based on an informant tip that she was carrying drugs. When cornered by police, Johnson, who had arrived from Seattle, produced 6.49 ounces of cocaine from a six-inch tube hidden in her body, according to court records. Page 5 of the 14-page charging document claims that Williams aided in Johnson's possession of that cocaine. The felony drug charge against Johnson, for transporting "large quantities" of cocaine into the state, was dropped in February. The district attorney's office expects Johnson, who has past convictions for contempt of court and assault, to testify truthfully at a later date, according to records. "I'm sure the defense will raise the issue of character," Campbell said. An Anchorage attorney representing Washington said it's not uncommon for authorities to make deals with lower level criminals to get to "sources higher up." Sometimes the methods yield the higher source and sometimes not, William Carey said. "Several of the individuals have histories that clearly make their statements suspect," Carey said. "As a defense attorney, I have to explore that." Williams' attorney, Tom Schulz, was unreachable Tuesday.
Johnson's claims substantiate two other drug charges in the indictment, one for July 4, 2007, and one for Nov. 18, 2007.
Often, informants' and witnesses' claims are suspect based on their criminal records and the deals they made with prosecutors, Carey said. The idea to investigate Washington's and Williams' alleged drug operation in a larger context, as organized and ongoing, came from state police after Williams was arrested by Juneau police in connection to a theft and forgery ring with six others. The larger drug investigation didn't really get started until late 2007, Campbell said.
"We looked back to see who mentioned them in the past," Campbell said.
Police said they caught Darlene Hurlbut, 28, with an undisclosed amount of narcotics on May 9, 2003. Later that summer, the felony case against her was dismissed. Now, Hurlbut is the source of two counts of cocaine dealing leveled against Williams in the indictment. The state alleges that twice in the last week of March 2003, Williams aided Hurlbut in possessing cocaine.
Campbell said charges against Hurlbut could have been dropped for any number of reasons. He was not in charge of the drug unit back then. "In general, from time to time, the DA's office enters into agreements with individuals with information we feel is important," District Attorney Doug Gardner said. "These agreements are discoverable and available for the jury to take into consideration."
Citing the open case, Gardner declined to comment on the credibility of witnesses and informants that have criminal histories.
Campbell said in his experience a criminal could be an acceptable witness in court where credibility, in part, comes from experience. Criminals have firsthand knowledge on the issue. Another component to credibility is honesty, he said.
"There is such a thing as an honest criminal," Campbell said.

Albert Morales,Melinda Nieves were charged with third-degree and seventh-degree criminal possession of a controlled substance

Albert Morales, 19, and Melinda Nieves, 21, both of West Street, LoConte said.
Morales and Nieves were charged with third-degree and seventh-degree criminal possession of a controlled substance, as well as second-degree criminal sale of a controlled substance, LoConte said.
As a result of the arrests, $4,000 and about 40 grams of heroin were seized, LoConte said. The arrests followed undercover operations and continuous surveillance against the targeted individuals, LoConte said.
Members of the Syracuse Drug Enforcement Agency office, Utica police, and the Oneida County District Attorney’s Office also assisted with the investigation into heroin sale, possession and distribution across the state, including Oneida and Clinton counties, LoConte said.

Albert Morales,Melinda Nieves were charged with third-degree and seventh-degree criminal possession of a controlled substance

Albert Morales, 19, and Melinda Nieves, 21, both of West Street, LoConte said.
Morales and Nieves were charged with third-degree and seventh-degree criminal possession of a controlled substance, as well as second-degree criminal sale of a controlled substance, LoConte said.
As a result of the arrests, $4,000 and about 40 grams of heroin were seized, LoConte said. The arrests followed undercover operations and continuous surveillance against the targeted individuals, LoConte said.
Members of the Syracuse Drug Enforcement Agency office, Utica police, and the Oneida County District Attorney’s Office also assisted with the investigation into heroin sale, possession and distribution across the state, including Oneida and Clinton counties, LoConte said.

Darrel Jones of 40 E. Sidney Ave. is charged with third-degree criminal possession of a controlled substance, a felony.

Darrel Jones of 40 E. Sidney Ave. is charged with third-degree criminal possession of a controlled substance, a felony.
Jones has 29 prior arrests and has been convicted of 12 crimes, police said. Seven of those convictions were for felonies, including a violent felony.
Members of the Mount Vernon Narcotics Unit began investigating Jones because of complaints that he was dealing drugs, Police Commissioner David Chong said.
"It is clear that there were people in the community that were aware of the suspect's actions, and they were tired of it," Chong said.
Detectives stopped Jones on Thursday night at 240 S. Seventh Ave. and found the cocaine and heroin, Chong said.

Darrel Jones of 40 E. Sidney Ave. is charged with third-degree criminal possession of a controlled substance, a felony.

Darrel Jones of 40 E. Sidney Ave. is charged with third-degree criminal possession of a controlled substance, a felony.
Jones has 29 prior arrests and has been convicted of 12 crimes, police said. Seven of those convictions were for felonies, including a violent felony.
Members of the Mount Vernon Narcotics Unit began investigating Jones because of complaints that he was dealing drugs, Police Commissioner David Chong said.
"It is clear that there were people in the community that were aware of the suspect's actions, and they were tired of it," Chong said.
Detectives stopped Jones on Thursday night at 240 S. Seventh Ave. and found the cocaine and heroin, Chong said.

Manuel Felipe Salazar-Espinosa smuggled tons of cocaine into the U.S

Manuel Felipe Salazar-Espinosa smuggled tons of cocaine into the U.S. and laundered tens or even hundreds of millions of dollars in drug proceeds, U.S. District Judge Lewis A. Kaplan said. Salazar-Espinosa was ordered to forfeit $50 million.
Salazar-Espinosa, 58, could have faced life in prison, Kaplan said, but U.S. prosecutors honored Colombia's request not to seek the maximum sentence. Prosecutors requested a term of 40 to 60 years.
The judge said it was difficult to sympathize with Salazar-Espinosa, who was raised in an upper-middle-class family, attended college and then chose drug dealing as “an economic proposition, a way to make even more money, vast amounts of money.”
Salazar-Espinosa was convicted last year of drug importation conspiracy, cocaine distribution and money laundering conspiracy charges.

At his trial, Salazar-Espinosa admitted through his lawyer that he was a drug dealer but said there was no evidence that the drugs were meant to go to the United States. Before he was sentenced, Salazar-Espinosa was defiant, asking “for what is fair” and reiterating his claim he hadn't broken U.S. laws.
Salazar-Espinosa was arrested in May 2005 after he helped hide 1.3 tons of cocaine in the arm of a crane being shipped from Panama to Mexico. Authorities said they found the drugs in about 1,300 bags in the crane in a warehouse outside Panama City two months after his arrest.
Prosecutors said much of the 5,000 kilograms – or 11,000 pounds – of cocaine that they believed Salazar-Espinosa shipped from Colombia to the U.S. ended up in New York. The drugs were worth more than $100 million, they said.

Manuel Felipe Salazar-Espinosa smuggled tons of cocaine into the U.S

Manuel Felipe Salazar-Espinosa smuggled tons of cocaine into the U.S. and laundered tens or even hundreds of millions of dollars in drug proceeds, U.S. District Judge Lewis A. Kaplan said. Salazar-Espinosa was ordered to forfeit $50 million.
Salazar-Espinosa, 58, could have faced life in prison, Kaplan said, but U.S. prosecutors honored Colombia's request not to seek the maximum sentence. Prosecutors requested a term of 40 to 60 years.
The judge said it was difficult to sympathize with Salazar-Espinosa, who was raised in an upper-middle-class family, attended college and then chose drug dealing as “an economic proposition, a way to make even more money, vast amounts of money.”
Salazar-Espinosa was convicted last year of drug importation conspiracy, cocaine distribution and money laundering conspiracy charges.

At his trial, Salazar-Espinosa admitted through his lawyer that he was a drug dealer but said there was no evidence that the drugs were meant to go to the United States. Before he was sentenced, Salazar-Espinosa was defiant, asking “for what is fair” and reiterating his claim he hadn't broken U.S. laws.
Salazar-Espinosa was arrested in May 2005 after he helped hide 1.3 tons of cocaine in the arm of a crane being shipped from Panama to Mexico. Authorities said they found the drugs in about 1,300 bags in the crane in a warehouse outside Panama City two months after his arrest.
Prosecutors said much of the 5,000 kilograms – or 11,000 pounds – of cocaine that they believed Salazar-Espinosa shipped from Colombia to the U.S. ended up in New York. The drugs were worth more than $100 million, they said.

JUAN CARLOS ELLIS, GERARDO PALMA, and GIOVANNI DI RIENZO: U.S. Announces Extradition of Three Montrealers From Canada on

JUAN CARLOS ELLIS, GERARDO PALMA, and GIOVANNI DI RIENZO to New York to face criminal charges in “Operation White Dollar,” a landmark international money-laundering case that targeted the Colombian Black Market Peso Exchange (“BMPE”). Operation White Dollar led to the indictment of 34 defendants in the United States, Canada, and Colombia, and the forfeiture of more than $20 million in Colombian drug proceeds from bank accounts around the world. ELLIS, PALMA, and DI RIENZO are expected to make their initial appearances later this afternoon in Manhattan federal court.
Montreal: Five Montrealers have been arrested and are among 31 people charged with being part of a massive money-laundering ring that processed tens of millions of dollars in cocaine and heroin profits from Colombian drug traffickers.
Investigators traced at least $100-million ( U.S. ) to the money-laundering scheme, which used a black-market currency exchange system to move funds from Medellin, Colombia, to bank accounts as far away as Israel, Hong Kong and the Cayman Islands.
The investigation involved undercover work and wiretaps. Details were made public in an indictment unsealed this week in Manhattan by U.S. federal prosecutors.
The indictment says that the five Montreal residents are among a group of 16 defendants who "acted as the Colombian narcotics traffickers' operatives in the United States and Canada, gathering drug proceeds."
According to the Indictment: The BMPE is an informal currency exchange system in which one or more “peso brokers” serve as middle-men between narcotics traffickers, who control massive quantities of drug money in the United States and elsewhere outside Colombia, and companies and individuals in Colombia, who wish to purchase U.S. dollars outside the legitimate Colombian banking system. The peso brokers arrange for the collection and accumulation of drug dollars in the United States, Canada, and elsewhere outside of Colombia, and then arrange for the funds to be deposited into the U.S. banking system. The peso brokers finally then sell the drug dollars to companies and individuals in Colombia seeking to avoid the payment of taxes, import duties, and transaction fees owed to the Colombian government.
However, the indictment added, while the defendants believed they were delivering their bosses' money to money launderers, they were instead "providing them unwittingly to . . . law enforcement officers acting in undercover capacities."
They were arrested as part of Operation White Dollar, a two-year joint investigation by the U.S. Drug Enforcement Administration, the RCMP and law-enforcement agencies in Colombia and Britain.
Operation White Dollar targeted a money-laundering scheme known as the Colombian Black Market Peso Exchange.

The indictment says the money was processed by a series of middlemen, starting with money brokers in Medellin, who secured contracts from narcotics traffickers to launder millions of dollars of drug proceeds earned in the United States and Canada.

The dollars were exchanged for Colombian pesos that arrived in bank accounts in Bogota and Medellin and were delivered to the Colombian underworld in armoured cars.

The five Montreal defendants are Juan Carlos Ellis, 42; Hugo Palma, 43; Yip Oi Man, 48; Giovanni Di Rienzo, 43; and Gerardo Palma, 32.

The U.S. court document alleges that Mr. Ellis collected more than $2.5-million ( U.S. ) in drug money from 2002 to 2004, some of which he received from Hugo Palma and Gerardo Palma.

The indictment said Mr. Di Rienzo had $290,000 in drug proceeds in his possession in 2002.

Also, the document said, last February, Mr. Yip was in Queens, N.Y., where he had with him nearly $99,900 in drug profits.

Organized crime commonly relies on unassuming people to act as couriers.

An RCMP spokesman said the five arrested Montrealers were low-profile figures, with only one having a previous criminal record, for a minor offence.

RCMP Constable Michel Blackburn said the Montreal men are alleged to have handled a total of $1.8-million ( U.S. ) and $455,000 ( Canadian ) in drug money, with the funds ending up in bank accounts in England and the Cayman Islands.

The money from the drug proceeds was initially collected in bags or suitcases, the indictment said. In one case, a courier showed up at New York's JFK airport with more than $167,000 in drug money stashed inside the metal tubing of luggage carriers.

Failed deliveries appeared to have been dealt with in a ruthless fashion. According to the indictment, police wiretaps overheard two men in Colombia discussing kidnapping relatives of someone who was responsible for $400,000 ( U.S. ) in drug money that had been seized by authorities.

JUAN CARLOS ELLIS, GERARDO PALMA, and GIOVANNI DI RIENZO: U.S. Announces Extradition of Three Montrealers From Canada on

JUAN CARLOS ELLIS, GERARDO PALMA, and GIOVANNI DI RIENZO to New York to face criminal charges in “Operation White Dollar,” a landmark international money-laundering case that targeted the Colombian Black Market Peso Exchange (“BMPE”). Operation White Dollar led to the indictment of 34 defendants in the United States, Canada, and Colombia, and the forfeiture of more than $20 million in Colombian drug proceeds from bank accounts around the world. ELLIS, PALMA, and DI RIENZO are expected to make their initial appearances later this afternoon in Manhattan federal court.
Montreal: Five Montrealers have been arrested and are among 31 people charged with being part of a massive money-laundering ring that processed tens of millions of dollars in cocaine and heroin profits from Colombian drug traffickers.
Investigators traced at least $100-million ( U.S. ) to the money-laundering scheme, which used a black-market currency exchange system to move funds from Medellin, Colombia, to bank accounts as far away as Israel, Hong Kong and the Cayman Islands.
The investigation involved undercover work and wiretaps. Details were made public in an indictment unsealed this week in Manhattan by U.S. federal prosecutors.
The indictment says that the five Montreal residents are among a group of 16 defendants who "acted as the Colombian narcotics traffickers' operatives in the United States and Canada, gathering drug proceeds."
According to the Indictment: The BMPE is an informal currency exchange system in which one or more “peso brokers” serve as middle-men between narcotics traffickers, who control massive quantities of drug money in the United States and elsewhere outside Colombia, and companies and individuals in Colombia, who wish to purchase U.S. dollars outside the legitimate Colombian banking system. The peso brokers arrange for the collection and accumulation of drug dollars in the United States, Canada, and elsewhere outside of Colombia, and then arrange for the funds to be deposited into the U.S. banking system. The peso brokers finally then sell the drug dollars to companies and individuals in Colombia seeking to avoid the payment of taxes, import duties, and transaction fees owed to the Colombian government.
However, the indictment added, while the defendants believed they were delivering their bosses' money to money launderers, they were instead "providing them unwittingly to . . . law enforcement officers acting in undercover capacities."
They were arrested as part of Operation White Dollar, a two-year joint investigation by the U.S. Drug Enforcement Administration, the RCMP and law-enforcement agencies in Colombia and Britain.
Operation White Dollar targeted a money-laundering scheme known as the Colombian Black Market Peso Exchange.

The indictment says the money was processed by a series of middlemen, starting with money brokers in Medellin, who secured contracts from narcotics traffickers to launder millions of dollars of drug proceeds earned in the United States and Canada.

The dollars were exchanged for Colombian pesos that arrived in bank accounts in Bogota and Medellin and were delivered to the Colombian underworld in armoured cars.

The five Montreal defendants are Juan Carlos Ellis, 42; Hugo Palma, 43; Yip Oi Man, 48; Giovanni Di Rienzo, 43; and Gerardo Palma, 32.

The U.S. court document alleges that Mr. Ellis collected more than $2.5-million ( U.S. ) in drug money from 2002 to 2004, some of which he received from Hugo Palma and Gerardo Palma.

The indictment said Mr. Di Rienzo had $290,000 in drug proceeds in his possession in 2002.

Also, the document said, last February, Mr. Yip was in Queens, N.Y., where he had with him nearly $99,900 in drug profits.

Organized crime commonly relies on unassuming people to act as couriers.

An RCMP spokesman said the five arrested Montrealers were low-profile figures, with only one having a previous criminal record, for a minor offence.

RCMP Constable Michel Blackburn said the Montreal men are alleged to have handled a total of $1.8-million ( U.S. ) and $455,000 ( Canadian ) in drug money, with the funds ending up in bank accounts in England and the Cayman Islands.

The money from the drug proceeds was initially collected in bags or suitcases, the indictment said. In one case, a courier showed up at New York's JFK airport with more than $167,000 in drug money stashed inside the metal tubing of luggage carriers.

Failed deliveries appeared to have been dealt with in a ruthless fashion. According to the indictment, police wiretaps overheard two men in Colombia discussing kidnapping relatives of someone who was responsible for $400,000 ( U.S. ) in drug money that had been seized by authorities.