War on Drugs News Stories

HSBC Holdings Plcs $1.9 billion agreement with the U.S. to resolve charges it enabled Latin American drug cartels to launder billions of dollars was approved by a federal judge. U.S. District Judge John Gleeson in Brooklyn, New York, signed off yesterday on a deferred-prosecution agreement. HSBC was accused of failing to monitor more than $670 billion in wire transfers and more than $9.4 billion in purchases of U.S. currency from HSBC Mexico, allowing for money laundering, prosecutors said. The bank also violated U.S. economic sanctions against Iran, Libya, Sudan, Burma and Cuba, according to a criminal information filed in the case. The bank, Europes largest, agreed to pay a $1.25 billion forfeiture and $665 million in civil penalties under the settlement, prosecutors announced in December. At a hearing the same month, Gleeson told prosecutors there had been publicized criticism of the agreement, which lets the bank and management avoid further criminal proceedings over the charges. Lack of proper controls allowed the Sinaloa drug cartel in Mexico and the Norte del Valle cartel in Colombia to move more than $881 million through HSBCs U.S. unit from 2006 to 2010, the government alleged in the case. The bank also cut resources for its anti-money-laundering programs to cut costs and increase profits, the government said in court filings. Under a deferred prosecution agreement, the U.S. allows a target to avoid charges.

Note: HSBC was founded to service the international drug trade, and is considered too big to criminally prosecute. Big bank settlements often amount to "cash for secrecy" deals that are ultimately profitable for banks. For more along these lines, see concise summaries of deeply revealing news articles about financial industry corruption.

Don Winslow['s book] The Cartel, a sequel to 2005's The Power of the Dog [is] a sort of Game of Thrones of the Mexican drug wars, a multipart, intricately plotted, blood-soaked epic that tells the story of how America's unquenchable appetite for illegal drugs has brought chaos to our southern neighbors and darkened our own political and criminal culture. Dog ... traces the rise of the narcotraficantes who split Mexico into territories and smuggled cocaine across the U.S. border by the ton. The violence ... spills out into Mexican society, turning cities like Juarez into Fallujah-like battle zones. But the most shocking thing about these books is that almost all the horror stories Winslow tells ... are largely true – from the narcotrafficker who threw children off a bridge to ... countless murders, kidnappings and tortures. The War on Drugs is a trillion-dollar failure. We spend billions of dollars pursuing drugs and billions imprisoning people that probably shouldn't be in prison. This war has killed a hundred thousand people in Mexico. These ISIS beheadings that we're seeing [are] a direct copy of what the cartels were doing in 2007 and 2008. The Zetas had imported Special Forces veterans from the Guatemalan army – and one of their things was to cut off heads. [There's] a direct line between events in Ferguson and Baltimore and Cleveland to the War on Drugs. The fruits that we're reaping now are seeds that were planted back in 1971, when Nixon declared war on drugs. The War on Drugs is more of a problem to the United States than drugs are.

Note: For more along these lines, see concise summaries of deeply revealing news articles on drugs from reliable major media sources on little-known facts about mind-altering drugs. Then explore the excellent, reliable resources provided in our War Information Center.

During January 2011, Anabel Hernndez's extended family held a party at a favourite cafe in the north of Mexico City. As one of the country's leading journalists ... Hernndez had to leave early, as so often, "to finish an article". After she left ... gunmen burst in. But this was no robbery it was "pure intimidation, aimed at my family, and at me." Hernndez's offence was to write a book about the drug cartels that have wrought carnage across Mexico, taking some 80,000 lives. Narcoland: The Mexican Drug Lords and their Godfathers [is] about the mafia state; how the old Guadalajara cartel of the 1980s was protected by the Mexican government just as its heir, Guzmn's Sinaloa syndicate, is now. The threats began when Hernndez's book was published in Mexico in 2010. Veteran reporter Mike O'Connor works full-time on behalf of Mexico's menaced reporters, based in Mexico City for the Committee to Protect Journalists. "The silencing of the press and killing of journalists is integral to the reality, the big story, of what is happening here," explains O'Connor. "The cartels are taking territory. For the cartels to take territory, three things have to happen. One is to control the institutions with guns basically, the police. The second is to control political power. And, for the first two to be effective, you have to control the press." Hernndez is "very pleased my book is being published in English, so it can be read in London and New York. I want it published ... where HSBC took Chapo Guzmn's money."

Note: Read more in this revealing article, or find out about the sweetheart deal the U.S. gave to the HSBC executives that were caught knowingly laundering millions of dollars for Mexican drug cartels.

In a war full of failures, the US counternarcotics mission in Afghanistan stands out: opiate production has climbed steadily over recent years to reach record-high levels last year. One clear winner in the anti-drug effort is ... the infamous mercenary company formerly known as Blackwater. Statistics released on Tuesday reveal that the rebranded private security firm, known since 2011 as Academi, reaped over a quarter billion dollars from the futile Defense Department push to eradicate Afghan narcotics, some 21% of the $1.5 bn in contracting money the Pentagon has devoted to the job since 2002. The company is the second biggest beneficiary of counternarcotics largesse in Afghanistan. Only the defense giant Northrop Grumman edged it out, with $325m. According to the US inspector general for Afghanistan reconstruction, the $309m Academi got from US taxpayers paid for training, equipment, and logistical support to Afghan forces conducting counternarcotics. Far from eradicating the deep-rooted opiate trade, US counternarcotics efforts have ... contributed to the opium boom. In December, the United Nations reported a 60% growth in Afghan land used for opium poppy cultivation since 2011, up to 209,000 hectares. The estimated $3bn value of Afghan heroin and morphine represents some 15% of Afghan GDP. Academi and its former Blackwater incarnation have an infamous history in Afghanistan. It once set up shell companies to disguise its business practices, according to a Senate report, so that its contracts would be unimpeded by company employees killings of Iraqi and Afghan civilians.

Note: Blackwater, now called Academi, got caught systematically defrauding the US government, while serving as a "virtual extension of the CIA". The CIA has been linked to the Afghan heroin trade for decades. In 2000, the Taliban had all but eradicated Afghan opium production. Once Afghanistan was under US control, opium production surged to record levels.

Drug Enforcement Administration agents allegedly had "sex parties" with prostitutes hired by local drug cartels overseas over a period of several years, according to a report released Thursday by the Justice Department's watchdog. The agents, some of whom had top-secret security clearances, received suspensions of two to 10 days. Former police officers in Colombia also alleged that three DEA supervisory special agents were provided with money, expensive gifts and weapons from drug cartel members, according to the report. The findings were part of a much broader investigation into the handling of allegations of sexual harassment and misconduct from fiscal 2009 to 2012 at federal law enforcement agencies. [Justice Department Inspector General Michael E.] Horowitz said the investigation was "significantly impacted and unnecessarily delayed" by repeated difficulties his office had in obtaining relevant information from the FBI and the DEA. When he did receive the information, he said, it "was still incomplete." Sen. Charles Grassley (R-Iowa), chairman of the Judiciary Committee, called on the Justice Department on Thursday to adopt a zero-tolerance policy for employees who purchase sex. "The Department of Justice may not be taking adequate steps to prevent its own employees from buying sex and thereby contributing to the demand for the human sex trade," Grassley wrote to Acting Deputy Attorney General Sally Quillian Yates.

Note: DEA agents caught being supplied prostitutes by drug cartels are merely suspended for a few days? What's up with that? Read the gripping stories of two award-winning journalists giving powerful evidence of direct DEA and CIA involvement in and support of drug running and drug cartels. For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the intelligence community.

As part of their insurgency against the Sandinista government in Nicaragua, some of the C.I.A.-backed contras made money through drug smuggling, transgressions noted in a little-noticed 1988 Senate subcommittee report. Gary Webb, a journalist at The San Jose Mercury News, thought it was a far-fetched story to begin with, but in 1995 and 1996, he dug in and produced a deeply reported and deeply flawed three-part series called Dark Alliance. That groundbreaking series was among the first to blow up on the nascent web, and he was initially celebrated, then investigated and finally discredited. Pushed out of journalism in disgrace, he committed suicide in 2004. [The movie] Kill the Messenger ... suggests that he told a truth others were unwilling to. Mr. Webb was not the first journalist to come across [such matters]. In December 1985, The Associated Press reported that three contra groups had engaged in cocaine trafficking, in part to help finance their war against Nicaragua. Major news outlets mostly gave the issue a pass. Peter Landesman, an investigative journalist who wrote the screenplay, was struck by the reflex to go after Mr. Webb. Planeloads of weapons were sent south from the U.S., and everyone knows that those planes didnt come back empty, but the C.I.A. made sure that they never knew for sure what was in those planes, he said. But instead of going after that, they went after Webb." In 1998, Frederick P. Hitz, the C.I.A. inspector general, testified before the House Intelligence Committee that after looking into the matter at length, he believed the C.I.A. was a bystander or worse in the war on drugs. However dark or extensive, the alliance Mr. Webb wrote about was a real one.

Note: Webb's story was not deeply flawed, as reported in this article. His editor even commented that four Washington Post writers could not find one significant factual error, but then changed his mind after CIA leaders threatened the paper. Read a Sacrament Bee newspaper article for more on Webb and his story. For more along these lines, see the excellent, reliable resources provided in our Mass Media Information Center.

Since [the days of Al Capone,] Chicago officials have awarded "Public Enemy No 1" status to only one other person: cartel billionaire Joaqun Guzmn Loera, better known now to the world over as "El Chapo". But nearly seven weeks before [his February] capture at a beach resort, the Mexican newspaper El Universal reported how US agencies had armed and financed El Chapo's Sinaloa criminal empire for at least 12 years. That link has been substantiated by DEA and Justice Department court testimonies, and even US agents confirmed the financing had been approved by high-ranking officials and federal prosecutors. But the American media barely reported how entrenched the American government has become in the Mexican drug trade. The latest installment of the "war on drugs" has killed 100,000 people since its official declaration by Mexican President Filipe Calderon and US President George W Bush in 2006. During this period, the US-El Chapo partnership was reportedly never closer: under the deal, Washington allowed El Chapo's Sinaloa cartel to carry on business as usual while top Sinaola members, for their part, provided information on their rivals. DEA agents met with their informants more than 50 times, El Universal reported, as the agents offered their whisperers immunity. American patronage goes well beyond stoking the largest and most powerful of the Mexican cartels (Sinaloa), as well as the most heinous (Golfo and Los Zetas). Drug arrests of cartel associates amounted to less than 2% of over 50,000 arrests made in the first four years of the Bush-Calderon partnership.

Note: For more on government corruption, see the deeply revealing reports from reliable major media sources available here.

The deal was announced quietly, just before the holidays. The U.S. Justice Department granted a total walk to executives of the British-based bank HSBC for the largest drug-and-terrorism money-laundering case ever. They issued a fine $1.9 billion, or about five weeks' profit but they didn't extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses. For at least half a decade, the storied British colonial banking power helped to wash hundreds of millions of dollars for drug mobs, including Mexico's Sinaloa drug cartel, suspected in tens of thousands of murders just in the past 10 years. The bank also ... aided countless common tax cheats in hiding their cash. That nobody from the bank went to jail or paid a dollar in individual fines is nothing new in this era of financial crisis. What is different about this settlement is that the Justice Department, for the first time, admitted why it decided to go soft on this particular kind of criminal. It was worried that anything more than a wrist slap for HSBC might undermine the world economy. "Had the U.S. authorities decided to press criminal charges," said Assistant Attorney General Lanny Breuer at a press conference to announce the settlement, "HSBC would almost certainly have lost its banking license in the U.S., the future of the institution would have been under threat and the entire banking system would have been destabilized."

Note: For more on the collusion of government with the biggest, most corrupt banks, see the deeply revealing reports from reliable major media sources available here.

During a 22-month investigation by agents from the US Drug Enforcement Administration, the Internal Revenue Service and others [beginning in 2006], it emerged [that drug cartels had laundered huge sums of money] through one of the biggest banks in the United States: Wachovia, now part of the giant Wells Fargo. In March 2010, Wachovia settled the biggest action brought under the US bank secrecy act, through the US district court in Miami. Now that the year's "deferred prosecution" has expired, the bank is in effect in the clear. The bank was sanctioned for failing to apply the proper anti-laundering strictures to the transfer of $378.4bn a sum equivalent to one-third of Mexico's gross national product into dollar accounts from ... currency exchange houses with which the bank did business. [The case demonstrates] the role of the "legal" banking sector in swilling hundreds of billions of dollars the blood money from the murderous drug trade in Mexico and other places in the world around their global operations, now bailed out by the taxpayer. At the height of the 2008 banking crisis, Antonio Maria Costa, then head of the United Nations office on drugs and crime, said he had evidence to suggest the proceeds from drugs and crime were "the only liquid investment capital" available to banks on the brink of collapse. "Inter-bank loans were funded by money that originated from the drugs trade," he said. "There were signs that some banks were rescued that way."

Note: For lots more from reliable sources on the illegal activities routinely engaged in by the largest banks and financial corporations, click here.

The United States continues to spend hundreds of millions of dollars on "good governance" initiatives [in Afghanistan]. This $760 million program, to strengthen government agencies, was America's single largest nonmilitary expense in Afghanistan over the past year. All of it was money thrown away. Last year, the U.S. Agency for International Development began promoting what it calls "Afghanization of aid." Well, in Afghanistan, government leaders have only one use for foreign aid. They stuff the cash into suitcases and fly it to secret bank accounts in Dubai. Afghanistan remains the world's largest grower of opium poppies. It supplies 90 percent of the world's heroin. Many thousands of its citizens are addicts. Earlier this month, the United Nations put out its annual "Afghanistan Opium Survey" and found that, even after the United States has spent more than $2 billion on drug enforcement there, "the total area under cultivation" during 2010 "and the number of families growing opium poppy, remained the same as in 2009" - but for one thing. The U.N. found "an alarming increase of 97 percent" in opium-poppy cultivation among northeastern provinces that are not traditional poppy-growing areas.

Note: For shocking stories by two award-winning journalists suggesting direct involvement by government agencies in the drug trade, click here. And for key reports from reliable sources on government corruption, click here.

Wachovia [Bank] ... made a habit of helping move money for Mexican drug smugglers. San Francisco's Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers - including the cash used to buy four planes that shipped a total of 22 tons of cocaine. The admission ... sheds light on the largely undocumented role of U.S. banks in contributing to the violent drug trade that has convulsed Mexico for the past four years. Wachovia admitted it didn't do enough to spot illicit funds in handling $378.4 billion for Mexican currency exchange houses from 2004 to 2007. That's the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history - a sum equal to one-third of Mexico's current gross domestic product. "Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations," said Jeffrey Sloman, the federal prosecutor who handled the case. "It's the banks laundering money for the cartels that finances the tragedy," said Martin Woods, director of Wachovia's anti-money-laundering unit in London from 2006 to 2009. Woods says he quit the bank in disgust after executives ignored his documentation that drug dealers were funneling money through Wachovia's branch network. "If you don't see the correlation between the money laundering by banks and the 22,000 people killed in Mexico, you're missing the point," he said.

Note: For abundant reports from reliable sources on the many dubious ways in which major financial firms make their profits, click here.

The Taliban ... briefly banned poppy cultivation in 2000 in an effort to gain U.S. diplomatic recognition and aid. When the Bush administration invaded Afghanistan in October 2001, poppies were grown on only 7,600 hectares. Under the American occupation ... poppy cultivation spread to every province, and overall production has increased exponentially ever since -- this year by 60 percent. Within Afghanistan, where perhaps 3 million people draw direct income from poppy, profits may reach $3 billion this year. In-country profit adds up to an estimated 60 percent of Afghanistan's gross domestic product, or more than half the country's annual income. Afghanistan provides 92 percent of the world's heroin. Through many administrations, the U.S. government has been implicated in the Afghan drug trade. Before the American and Pakistani-sponsored mujahedeen took on the Soviets in 1979, Afghanistan produced a very small amount of opium for regional markets, and no heroin at all. By the end of the jihad against the Soviet army, it was the world's top producer of both drugs. The CIA made it all possible by providing legal cover for these operations. The United States [encouraged] Islamist extremists (then "our" soldiers) and ... set the stage for the Taliban. [Currently,] President Hamid Karzai['s] strategy is to avoid confrontation, befriend potential adversaries and give them offices, often in his Cabinet. The trade penetrates even the elected Parliament. Among the 249 members of the Wolesi Jirga (lower house) are at least 17 known drug traffickers, in addition to 40 commanders of armed militias, 24 members of criminal gangs, and 19 men facing serious allegations of war crimes.

Note: Could it be that some U.S. officials are turning a blind eye, or even supporting this drug trade? For some very strong evidence of this from a former award-winning DEA agent turned journalist and author, click here.

Ten years ago today, one of the most controversial news articles of the 1990s quietly appeared on the front page of the San Jose Mercury News. Titled "Dark Alliance"...the three-part series by reporter Gary Webb linked the CIA and Nicaragua's Contras to the crack cocaine epidemic that ripped through South Los Angeles in the 1980s. Most of the nation's elite newspapers at first ignored the story. A public uproar, especially among urban African Americans, forced them to respond. What followed was one of the most bizarre, unseemly and ultimately tragic scandals in the annals of American journalism. Top news organizations closed ranks to debunk claims Webb never made, ridicule assertions that turned out to be true and ignore corroborating evidence when it came to light. The whole shameful cycle was repeated when Webb committed suicide in December 2004. At first, the Mercury News defended the series, but after nine months, Executive Editor Jerry Ceppos wrote a half-apologetic letter to readers that defended "Dark Alliance" while acknowledging obvious mistakes. Webb privately (and accurately) predicted the mea culpa would universally be misperceived as a total retraction, and he publicly accused the paper of cowardice. He resigned a few months later. Meanwhile, spurred on by Webb's story, the CIA conducted an internal investigation that acknowledged in March 1998 that the agency had covered up Contra drug trafficking for more than a decade. History will tell if Webb receives the credit he's due for prodding the CIA to acknowledge its shameful collaboration with drug dealers.

Note: Many thanks to the Los Angeles Times for the courage to report this story. For more on this incredibly revealing, yet very tragic case which reveals corruption in both the government and media at the highest levels: http://www.WantToKnow.info/mediacover-up#webb

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