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03 February 2005

United States Asks Mexico To Extradite Accused Drug Kingpin

Fugitive sought in largest drug money-laundering case in U.S. history

By Eric Green
Washington File Staff Writer

Washington -- U.S. law enforcement officials are seeking the extradition to the United States of a Mexican fugitive accused of being the financial manager for a drug cartel based in Mexico's city of Juarez, the U.S. Immigration and Customs Enforcement (ICE) agency announced.

In a February 1 statement, ICE said Jose Alvarez-Tostado, arrested by Mexican authorities in late January, is one of the U.S. agency's 10 most wanted fugitives and was designated as a "Foreign Narcotics Kingpin" by the U.S. government in June 2001.

Alvarez was indicted by the United States in May 1998 in Los Angeles for operating a continuing criminal enterprise, for money laundering and conspiracy to launder money, and for conspiracy to aid and abet the distribution of a controlled substance, said ICE, which is part of the U.S. Department of Homeland Security.

According to the U.S. indictment, Alvarez served as the de facto financial manager of Mexico's Juarez drug cartel, collecting and laundering millions of dollars from cartel drug sales in cities across the United States.

Among other charges, the indictment alleges that Alvarez collected more than $40 million from drug sales and transferred the funds to Mexican accounts on behalf of Amado Carrillo Fuentes, the reputed chief of the Juarez drug cartel until his death in 1997 during plastic surgery to change his appearance.

Alvarez was one of 112 individuals and three major Mexican banks indicted in an undercover ICE investigation called "Operation Casablanca."  When that operation culminated in May 1998, it was considered the largest drug money-laundering investigation in U.S. history, said ICE.  Launched in 1995, the investigation targeted professional money launderers for Colombia's Cali drug cartel and Mexico's Juarez drug cartel, as well as numerous Mexican and Venezuelan bankers who helped launder the two cartels’ drug proceeds.

Operation Casablanca ultimately resulted in the seizure of more than $100 million and the arrest of more than 160 individuals, including dozens of Mexican and Venezuelan bankers.  Two of the major Mexican banks later pleaded guilty to criminal money-laundering charges and forfeited a total of nearly $14 million to the U.S. government, while the third Mexican bank entered a civil settlement and forfeited $12 million.

ICE Assistant Secretary Michael Garcia said the arrest of Alvarez is a "crucial victory for U.S. and Mexican law enforcement in our efforts to combat drug money laundering,” adding: “As the accused financial manager for one of Mexico's largest drug organizations, this individual is charged with laundering millions of dollars worth of drug funds on both sides" of the U.S.-Mexican border.

The Mexican officers who captured Alvarez "should be commended for their efforts,” said Garcia.  “We look forward to continued close cooperation with the Mexican government in seeing that this individual is brought to justice."

If convicted of the U.S. charges against him, Alvarez faces a minimum sentence of 20 years in prison.

(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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