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Cocaine Incorporated (How a Mexican Drug Cartel Makes it Billions)
New York Times ^ | June 15, 2012 | Patrick Radden Keefe

Posted on 06/21/2012 2:41:57 PM PDT by nickcarraway

One afternoon last August, at a hospital on the outskirts of Los Angeles, a former beauty queen named Emma Coronel gave birth to a pair of heiresses. The twins, who were delivered at 3:50 and 3:51, respectively, stand to inherit some share of a fortune that Forbes estimates is worth a billion dollars. Coronel’s husband, who was not present for the birth, is a legendary tycoon who overcame a penurious rural childhood to establish a wildly successful multinational business. If Coronel elected to leave the entry for “Father” on the birth certificates blank, it was not because of any dispute over patrimony. More likely, she was just skittish about the fact that her husband, Joaquín Guzmán, is the C.E.O. of Mexico’s Sinaloa cartel, a man the Treasury Department recently described as the world’s most powerful drug trafficker. Guzmán’s organization is responsible for as much as half of the illegal narcotics imported into the United States from Mexico each year; he may well be the most-wanted criminal in this post-Bin Laden world. But his bride is a U.S. citizen with no charges against her. So authorities could only watch as she bundled up her daughters and slipped back across the border to introduce them to their dad.

Known as El Chapo for his short, stocky frame, Guzmán is 55, which in narco-years is about 150. He is a quasi-mythical figure in Mexico, the subject of countless ballads, who has outlived enemies and accomplices alike, defying the implicit bargain of a life in the drug trade: that careers are glittering but brief and always terminate in prison or the grave.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Crime/Corruption; Extended News; Mexico
KEYWORDS: cocaine; crime; drugs; warondrugs; wod; wodlist; wosd
Smuggler's Blues
1 posted on 06/21/2012 2:42:13 PM PDT by nickcarraway
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To: nickcarraway

FEC needs to check anyone donating to Obama


2 posted on 06/21/2012 2:43:47 PM PDT by scooby321 (h tones)
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To: nickcarraway
Not sure I buy the reason they let her walk part. According to this: "With the authority of 18 U.S.C. § 3144, the United States government can seek a warrant from a judicial officer in order to arrest a material witness.", it sounds like they very easily could have arrested and interviewed her since it can be reasonably assumed that she has some knowledge of her husband's "business" that would be useful to law enforcement.
3 posted on 06/21/2012 3:04:22 PM PDT by SpaceBar
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To: nickcarraway

It reads like Patrick Radden Keefe would like to have Guzman’s babies too.


4 posted on 06/21/2012 3:04:52 PM PDT by lwd
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To: scooby321

How? He turned off the filters requiring information on foreign donors...


5 posted on 06/21/2012 3:07:30 PM PDT by Little Ray (FOR the best Conservative in the Primary; AGAINST Obama in the General.)
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To: nickcarraway
Obama and the Sinaola Cartel

The evidence is mounting that the Fast and Furious gun giveaway was orchestrated and/or initiated from the top of the Obama administration. Forbes Magazine is calling it “Obama’s Watergate.” Are we to believe that they gave away enough guns to equip a small army of narcoterrorists out of a simple error? We would have to be pretty gullible to believe that.

We have to ask just what they intended to achieve by doing this. It was a truly extravagant gift to the Sinaloa Federation Cartel. It was not just expensive in tax dollars; it was expensive in political capital, and it was so close to the 2012 election.

People don’t give such expensive things away for nothing. The Obama people must have expected something in return.

Consider the fact that Eric Holder, the Attorney General, and the Obama Administration has a long and continuing pattern of giving gifts to the Sinaloa Cartel:

Preserving Open Smuggling Routes: Remember when Arizona sought to enforce its own borders? Eric Holder sued to keep Arizona from identifying and arresting illegal immigrants. All of Mexican side of the border with Arizona is controlled by the Sinaloa Cartel. Their territory reaches from Texas to Arizona. Blocking Arizona’s border enforcement was a very generous gift for the smugglers of Sinaloa.

Just this July the Obama Administration signed a deal with Mexico to allow free access of Mexican trucks to American highways. That would certainly make it easier for Sinaloa to deliver drugs to multiple points in the American heartland. Trucks are set to roll from Mexico into the US without being searched within days. Even Democrat Teamster Jim Hoffa has fought against this. Thus the Obama Administration is selling out a vital part of its own base for the benefit of the Sinaloa cartel.

Removing “Legitimate” Competition: An even more striking favoritism has appeared concerning medical marijuana. Holder’s Justice Department has turned a blind eye to California medical marijuana production for over 2 years. Marijuana production has been a major growth industry in California since the legalization of medical marijuana. Hydroponic suppliers have been popping up all over, and warehouse owners are besieged from rental requests from growers. The industry is now up to 1.5 billion dollars and involves shipping to users in many states.

Not surprisingly, the IRS recently levied large taxes on growers, claiming that since growing marijuana is a federal crime, none of the business deductions related to production are deductible. It was a major new source of federal tax revenue. However a few weeks later, in a move that surprised Democrats nation-wide, Holder’s Justice Department ordered California growers to shut down in 45 days or have their assets and any real estate being used seized. Apparently both the IRS and the Justice Department were ordered to shut down the California marijuana industry regardless of the fiscal or political cost.

Marijuana users are major supporters of the Democrats and this was a shocking betrayal to them. It was also a major loss of tax revenue. It was, however, a great gift to the Sinaloa cartel. Mexican production of marijuana has more than doubled since 2005, with the Mexican Government reducing eradication efforts. The “legitimate” California marijuana industry was competition. (Hat tip: Arty)

Blocking Prosecution of Affiliated Gangs: The Justice Department’s head, Eric Holder, blocked prosecution of baton wielding Black Panthers for voter intimidation. The US Commission on Civil Rights wrote to Holder inquiring about the “broad culture of hostility to race-neutral enforcement of the civil rights laws; a pattern of harassment and intimidation against those who work on suits in which the defendants are racial minorities; and instructions from a political appointee that basic voting rights laws will not be enforced against racial minorities during this administration.” Having such a minority immunity policy from the top is a great advantage to criminal gangs who in turn work with or for the Sinaloa Cartel.

Holder also referred to African-Americans as “my people” in a press conference. Apparently Holder’s loyalties are more for minority gang members than the American people he was appointed to protect. We must ask who our Justice Department is really working for.

The Obama Administration was not the only one to do favors for Sinaloa. The Bush Administration was also very helpful. If anyone was aware of Sinaloa it would be a former governor of Texas. However, Bush infuriated his own base by allowing malicious prosecution of Border Patrol agents and making a deal with Sinaloa.

Immunity for Sinaloa Cartel members and Unreasonable Prosecution of Border Patrol Agents: The influence of Sinaloa Cartel was well known at the time of the prosecution of Ramos and Compean. The Federal prosecuting Attorney Johnny Sutton withheld evidence from the court to protect a drug trafficker and allowed him to take the Fifth in giving testimony against USBP agents at the trial. The Justice Department brought in another USBP Officer, Rene Sanchez, as a friend of the court as a character witness for the trafficker. It was absurd favoritism for a member of the Sinaloa cartel. The net effect was to intimidate all Border Patrol agents from doing their job. This was done the same year that DEA made a deal with the Sinaloa cartel to allow trafficking into the US in exchange for info on other cartels. (Hat Tip: MDA)

According to the President of Mexico when an illegal alien is discovered committing a criminal act, it is US policy to give them a free trip back to Mexico with no trial. Thus if any drug dealers of Sinaloa are caught, they are taken back to the Sinaloa controlled border of Arizona/Mexico and let go, no matter how many times they are caught doing illegal acts for Sinaloa or their criminal gang. They cannot hold or prosecute them in Mexico for crimes allegedly committed with no conviction in the US.

There was House testimony last week that ICE agents were ordered to let illegal aliens go if they do not have a prior criminal conviction. That includes potential terrorists without a record, or who carry no identification or false identification from “nations of interest” such as Iran. At least 28 in 2009 and 2001 were from Iran.

The Obama Administration has done a lot for the Sinaloa Cartel. What is this Sinaloa Cartel that owes so much to the policies of the Obama Administration?

Sinaloa is the most powerful drug cartel in not only Mexico, but the world. They have been accused of successfully corrupting the current Mexican government as evidenced by the low arrest numbers for Sinaloa members and the reduction in drug eradication efforts in Mexico. Their primary focus has been the United States, but their operations reach into 47 countries throughout the Americas and Europe.

They smuggle and distribute cocaine from Columbia, marijuana, methamphetamine and heroin into the US. Sinaloa transports cocaine from South America to Guatemala and through Mexico into the US to distribution cells in California, Arizona, Texas, Chicago, and New York. They have been branching out into people and gun smuggling as well. Sinaloa has worked primarily with the most ruthless gangs in the US: MS-13 and the Mexican Mafia. The gangs affiliated with Sinaloa alsoinclude more than half of the major gangs in the US: 18th Street, Black Guerilla Family, Gangster Disciples, Bloods, Florencia 13, Hells Angels, Latin Kings, Norteños, and the Sureños.

“In 2009, midlevel and retail drug distribution in the United States was dominated by more than 900,000 criminally active gang members representing approximately 20,000 street gangs in more than 2,500 cities. Mexican DTOs (Drug Trafficking Organizations) increased their cooperation with U.S.-based street and prison gangs to distribute drugs. In many areas, these gangs were using their alliances with Mexican DTOs to facilitate an expansion of their midlevel and retail drug distribution operations into more rural and suburban areas.”

According to the President of Mexico when an illegal alien is discovered committing a criminal act, it is US policy to give them a free trip back to Mexico with no trial. Thus if any drug dealers of Sinaloa are caught, they are taken back to the Sinaloa controlled Arizona/Mexico border and let go, no matter how many times they are caught doing illegal acts for Sinaloa or their criminal gang.

There was House testimony last week that ICE agents were ordered to let illegal aliens go if they do not have a prior criminal conviction. That includes potential terrorists without a record, or who carry no identification or false identification from “nations of interest” such as Iran. At least 28 in 2009 and 2001 were from Iran.

What favors might the Obama Administration expect for their investment? There are several things that are specialties for the Sinaloa Cartel. Consider the following hypothetical possibilities:

1) The most immediate payback would be for Sinaloa to help finance the DNC and Obama’s campaign for 2012. Since many of his 2008 big Wall Street donors are bailing, he may claim raising one billion from 50 million regular Americans sending $20 checks. If Sinaloa is underwriting Obama’s billion-dollar campaign it is easily laundered when the gov’t helps run the laundry. (Hat Tip: Jack) Remember that in 2008 Obama won in part due to many small and untraceable donations that appeared to be from outside the US.

2) Perhaps it is personal. There could simply be payoff for highly placed Obama officials. The amount of money available from the cartel is astounding. $378.4bn was found to be laundered by Wachovia alone. Furthermore, the Cartel is expert at laundering payments so it would be difficult to uncover. There could also be threats of violence against family and opportunities for blackmail of politicians. Sinaloa has both carrots and sticks to get what they want from individuals.

3) Enforcement and extortion are also potentially useful favors for the Obama officials. Need to discourage someone from running for office? Need to discourage someone from voting for a bill? Do the legislators have families they care about? Threats and actual violence expertise might be brought to bear, and with few detectable connections to the people ordering it. Just this week Vice President Biden threatened or warned that “Murder will continue to rise, rape will continue to rise, all crimes will continue to rise,” if the Democrats agenda isn’t passed. Perhaps he is right. At what point does a warning become a threat?

4) Criminal community organizing is something that could be useful. Organizing secure networks for criminal activity is something the cartel has decades of experience in. Acorn’s quasi-criminal activity is just the beginning of what is possible. Voter intimidation or election interference needed? No problemo. Is a riot needed? Having hundreds of thousands of violent and amoral criminals at one’s direction in American cities and suburbs could be useful.

To a hammer, every problem looks like a nail. Similarly, every problem Obama has looks like a it needs a community organizing. Hundreds of thousands of organized violent criminals makes for a lot of community organization.

5) Smuggling Islamic terrorists over the borders is another speciality that could be useful in certain political scenarios. Hundreds of aliens from “special interest countries” including Afghanistan, Iran, Iraq, and Pakistan are known to be smuggled across the border each year. Iran recently paidMexican drug cartels to assassinate the Saudi Ambassador to the US. A book celebrating suicidemartyrs was found in the desert along a smuggling route. (Hat tip: John in China.) There is always the argument that Obama wants to destroy America (or at least parts of America) from within by a concerted assault on our military effectiveness, economy, and culture. Enabling a drug cartel like Sinaloa would fit with that theory.

Giving favors to organized crime is not a recent invention of the Democrats. It is reminiscent of the Kennedy era, where JFK won Chicago via vote fraud, and both JFK and Bobby Kennedy (the US Attorney General at the time) were such good friends of Sam Giancana, the biggest Mafia godfather in Chicago, that Giancana allowed both to share one of his girlfriends. Why? Because the Justice Department was targeting Giancana’s mob competitors. This also is reminiscent of Al Capone’s Chicago operation. Capone paid the local Feds to go after his bootlegger competition while leaving his gang alone. (Hat tip: Skye)

One alternative theory has been floated about the Fast and Furious debacle is that it was a plot to increase gun violence and then get guns banned. That theory is easily dismissed. If the Obama Administration wanted to increase gun violence, all it would take is a call to the Black Panthers or other inner city gang contacts. They owe brother Obama a favor. It is far too easy for them or other similar groups to simply commit more gun violence. Furthermore, the guns of Fast and Furious and their related violence were primarily destined for Mexico, not America. The Second Amendment assault theory is not a reasonable explanation – especially when considered in context.

The simple and direct answer is that Fast and Furious was done by the Obama Administration, as an established pattern of behavior to assist the Sinaloa Cartel. The more difficult and interesting question is what gift in return does the Obama Administration get out of it. The Obama Administration is paying heavily by stabbing Democrat constituencies in the back right before an election. Thus the payback from Sinaloa is also likely to be before the election.

The Obama Administration has given high powered assault weapons and other guns to the largest drug cartel in the world. Holder’s Justice Department has sued to keep the US border with Sinaloa porous. Obama’s IRS and Justice Departments have shut down the legal competition to Sinaloa. Obama’s Administration has broadly blocked prosecution of the criminal gangs that are the affiliates of Sinaloa throughout the US. Obama’s Administration has made it easier for Sinaloa smuggling trucks to travel unimpeded and un-inspected throughout the US.

Plenty of guns, free travel of trucks across the border, legal immunity to members of the drug distribution system, IRS and DOJ attacks on their legitimate drug competitors, intimidation and humiliation of Border Patrol agents… What more could Sinaloa ask for? The Obama administration has given them everything they could need. What is the Obama Administration getting in return?

Posted on 10/22/2011 by helpfulresearcher

6 posted on 06/21/2012 3:18:01 PM PDT by Species8472 (Stupid is supposed to hurt)
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To: Species8472

Well.... finally I have some company. I was beginning to wonder if anyone else would figure this out. It’s not like I haven’t tried telling everyone.


7 posted on 06/21/2012 3:33:51 PM PDT by UCANSEE2 (Lame and ill-informed post)
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To: UCANSEE2
US Court Documents Claim Sinaloa “Cartel” Is Protected by US Government

In CHICAGO!

8 posted on 06/21/2012 4:20:50 PM PDT by Species8472 (Stupid is supposed to hurt)
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To: nickcarraway

WEll that is what you get with this insane WOD


9 posted on 06/21/2012 4:24:43 PM PDT by uncbob
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To: nickcarraway

There are four kinds of people who don’t want the decriminalize drugs. Cops, politicians, drug dealers, and people who have bought in to the lies of the politicians.


10 posted on 06/21/2012 4:36:45 PM PDT by Blood of Tyrants (Never believe anything in politics until it has been officially denied.)
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To: Blood of Tyrants

How about taxpayers who realize how hard they will have to support the every need of drug users?


11 posted on 06/21/2012 5:32:06 PM PDT by nickcarraway
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To: nickcarraway
How about taxpayers who realize how hard they will have to support the every need of drug users?

You mean we don't already?

Going after drug dealers doesn't work, given the money involved. Going after drug USERS might work better, but since that would involve putting away wealthy and influential people (and their children), that's not going to fly.

12 posted on 06/21/2012 5:51:38 PM PDT by PapaBear3625 (If I can't be persuasive, I at least hope to be fun.)
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To: Species8472

You Can’t have a War on Drugs without a Cheap Plentiful Supply of Drugs. Just look at the “New Heroin Problem” going on across the US since we went to Afghanistan, which by the way produces over 90% of the World’s Opium.


13 posted on 06/21/2012 7:02:45 PM PDT by eyeamok
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To: Blood of Tyrants
There are four kinds of people who don’t want the decriminalize drugs. Cops, politicians, drug dealers, and people who have bought in to the lies of the politicians.

The first three stand to benefit financially or politically from the WOD so no surprise.
14 posted on 06/21/2012 7:08:45 PM PDT by af_vet_rr
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To: PapaBear3625
Going after drug dealers doesn't work, given the money involved. Going after drug USERS might work better, but since that would involve putting away wealthy and influential people (and their children), that's not going to fly.

If we were serious about the WOD, all those millionaires and celebrities that get caught or openly talk about doing drugs would be behind bars. Hollywood would be a ghost town if we were serious about the WOD.
15 posted on 06/21/2012 7:11:43 PM PDT by af_vet_rr
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To: nickcarraway

You are supporting them now with welfare, public housing, and food stamps.


16 posted on 06/21/2012 7:30:21 PM PDT by Blood of Tyrants (Never believe anything in politics until it has been officially denied.)
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To: af_vet_rr; PapaBear3625
Going after drug USERS might work better

If we were serious about the WOD, all those millionaires and celebrities that get caught or openly talk about doing drugs would be behind bars.

14% of Americans use illicit drugs each year - should we put them all behind bars?

17 posted on 06/22/2012 9:43:17 AM PDT by JustSayNoToNannies (A free society's default policy: it's none of government's business.)
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To: JustSayNoToNannies
14% of Americans use illicit drugs each year - should we put them all behind bars?

If there War on Drugs was truly 100% about drugs, then it would only be fair that all users are treated equally, whether you're some rich actor doing coke in your dressing room or some college kid doing bong hits in his dorm room or some white trash methhead getting high under a bridge. Then again, if the War on Drugs was about substances that people abuse and get addicted to and that impairs their judgement, they would have roped in alcohol as well....but the War on Drugs is not really about most of that, it's about money and power.
18 posted on 06/22/2012 4:09:25 PM PDT by af_vet_rr
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