Showing posts with label Corruption. Show all posts
Showing posts with label Corruption. Show all posts

Friday, February 27, 2015

Oregon's Governor Resigns Amid Ethics, "Green Energy" Scandal

Oregon's four term Democrat governor John Kitzhaber announced his resignation last week amid growing pressure from an ethics investigation and reports that his fiancée was involved in a 'Green Energy' pay-to-play scheme.

According to media reports, Kitzhaber's fiancée- Cylvia Hayes- acted in a rather dubious triple role, acting as Oregon's de-facto First Lady, the governor's 'green energy' adviser and a paid consultant for the 'green energy' industry. However, while serving as Kitzhaber's unpaid energy advisor, Hayes reportedly pocketed $118,000 in consulting fees from various green energy lobbying firms- including some tied to billionaire democrat donor Tom Steyer- that she failed to disclose on her ethics filings for the governor's office.

While serving as an unpaid policy adviser for the governor’s office, Ms. Hayes collected $118,000 in fellowship and consulting fees from the Clean Economy Development Center, a Washington-based nonprofit, for work on low-carbon fuel standard legislation in Oregon.

Ms. Hayes never disclosed the payments on her ethics filings for the governor’s office.

The Clean Economy Development Center went out of business after the IRS pulled its tax-exempt status. Before it did, the center received funding for Ms. Hayes‘ fellowship from another nonprofit, the Energy Foundation, which in 2012 received $200,000 in funding from Mr. Steyer’s “TomKat” Charitable Trust, according to the group’s latest 990 tax form.

The Energy Foundation hired Ms. Hayes directly in 2013 for communications work, giving her a contract of $50,000, according to documents and interviews.

The web of payments, the failure to disclose and questions about influence peddling have prompted the state’s attorney general to open an ethics investigation. Republican state lawmakers also have demanded a suspension of the new fuel legislation, which would keep Oregon’s low carbon fuel standards in place instead of expiring this year.

Hayes is also suing The Oregonian in a move designed to prevent the release of e-mails she sent while working as a consultant to the governor. Her lawyers argue that Hayes is technically not a public official, despite closing some e-mails with the initials FLO- First Lady of Oregon.

These wouldn't be the first shady dealings that Hayes was involved in. In 2002, Hayes reportedly accepted $5000 to take part in a sham marriage to an Ethiopian immigrant and in the 1990s she was accused of participating in a scheme to buy acreage in Washington state to grow marijuana on.

Meanwhile, the FBI and IRS are investigating Kitzhaber, Hayes, former staffers and state officials on possible charges of tax evasion and influence peddling while the Willamette Week released more of Hayes' emails that indicated she sought to leverage her position with the governor to land additional lucrative contracts.

Wednesday, March 26, 2014

Blue State Graft Watch- Rhode Island Speaker of the House Resigns After Feds Raid Offices

Gordon Fox, a Rhode Island democrat who held the distinction of being the first openly gay speaker of the state house in the USA, abruptly announced that he was resigning from his role as speaker shortly after the FBI, IRS and Rhode Island State Police raided his home and office this week.

The joint effort by Rhode Island state troopers, and investigators from the FBI, the IRS and the U.S. Attorney’s office, began in mid-morning, when troopers took up positions outside Fox’s office.

The troopers would not answer questions about why they had closed off access to the speaker’s State House office. They referred questions to the U.S. Attorney’s office, which provided no further details. Soon after, FBI and IRS agents arrived.


As to the nature of the documents the investigators took, Berman said: “Business-related. They looked like files, but I am not sure.” When asked if that included legal files, Berman noted that Fox has “a separate law office on Dorrance Street where he practices his law.”

“They weren’t asking, from what I understand, for legislative documents, which are all on line and available anyway,” Berman said.

While investigators searched Fox’s State House office, more than a dozen FBI and IRS investigators were searching his East Side home. (A Fox confidante said the investigators asked Fox to leave, but allowed his spouse, Marcus LaFond, to remain behind to look after Fox’s 91-year-old mother.)

The investigators emerged from the house shortly before 2 p.m. in single file, carrying boxes and navigating a gauntlet of media. As a few of the investigators in dark suits watched, others wearing windbreakers emblazoned with “Evidence Response Team” quickly loaded the boxes into a white unmarked truck parked across the street and drove off.

Although the US Attorney declined to specify the charges against Fox, the Providence Democrat has had prior legal and ethics violations. Earlier this year, Fox agreed to pay a $1500 fine after he failed to disclose $43,000 he made preparing loan documents for a local economic development agency. A decade prior, Fox was fined $10,000 for voting on a $770 million lottery deal that assured work would be steered towards his law firm at the time, according to the Providence Journal.

Fox's resignation abruptly triggered an internal struggle among Democrats in the Ocean State after then-house majority leader Nicholas Mattiello [D- Cranston] called for a closed-door caucus at the Providence Marriott as soon as Fox stepped down as speaker. However, a number of members of the House weren't even informed of the caucus until well after the fact. By Tuesday, Mattiello was voted in by colleagues as Rhode Island's latest Speaker of the House.

Saturday, January 11, 2014

Borderline Psychosis Update- Dutch Cops Nab Top Sinaloa Enforcer; Cartels, Law Enforcement Take Wait and See Approach to Colorado's Legalized Pot Sales;

THE NETHERLANDS- A Sinaloa Cartel enforcer by the name of El Chino Antrax was arrested by Dutch authorities on drug trafficking charges on Jan 3rd. Jose Rodrigo Arechiga Gamboa is believed to be the leader of a group of Sinaloa cartel hitmen known as 'Anthrax' and is wanted on charges of trafficking methamphetamine, cocaine and marijuana by US Officials.
The suspect, Jose Rodrigo Arechiga Gamboa, was captured Monday in Amsterdam's Airport Schiphol. He is accused of trafficking methamphetamines, cocaine and marijuana.

Arechiga is presumably a top enforcer for Ismael Zambada, who co-heads the Sinaloa drug organization along with Joaquin "El Chapo" Guzman.

Dutch police arrested the Mexican man at the request of U.S. authorities after he landed under a different name on a flight from Mexico City. The U.S. government had asked Interpol for help with his arrest.

The man is being held in a Dutch jail, while the U.S. Attorney is seeking his extradition to face charges in a federal court in San Diego.

The Mexican Embassy in the Netherlands said it was aware of the detention of a Mexican citizen and that it was willing to offer consular assistance if he requested help. It did not specifically say it was referring to Arechiga's arrest.

According to local media, Arechiga is also known as "El Chino Antrax," one of the two leaders of a group of hit men who call themselves the Anthrax, like the deadly disease.

Authorities have blamed the cell for a series of murders, including the killings of three men who were hung off a bridge in 2011, which were seen as revenge attacks after one of their leaders was murdered. The Anthrax helped the Sinaloa organization as it engaged in a bloody war with the Beltran Leyva cartel, when the latter decided to splinter in 2008.

El Chino Antrax has been reportedly celebrated and mentioned by name in narcocorridos- popular folk corrido ballads whose lyrics romanticize outlaws and drug traffickers.



CALIFORNIA- A Mexican national is in custody in central California's Madera County after allegedly shooting two men while posing as a police officer. The victims were reportedly carrying a sizable quantity of crystal meth.

The case is "highly unusual" for Madera County because of the amount of "crank" and police regalia found in connection with the crime, Madera County Sheriff John Anderson said Tuesday.

One suspect was arrested for attempted murder -- Elias Lopez-Martinez, 25, of Mexico. A second suspect has not yet been found.

During a news conference, Anderson summed up the Dec. 30 incident by pointing to two vehicles on display for reporters.

"Semi-bad guys," Anderson said, pointing to a car driven by alleged drug-runners. Then, pointing to the suspects' truck: "Really bad guys."

"These guys are dopers -- these guys are shooters," he said, continuing the comparison, "... coming out to the dope exchange, they didn't bring money, they brought guns. That simple."

Those allegedly transporting the meth initially told authorities they were on back roads near Chowchilla because they were going to "buy a horse," Anderson said, but later admitted "we were kind of out there to do a drug deal."

Anderson gave the following account :

The victims said they pulled over near Avenue 18 1/2 and Road 10 because they thought the truck behind them was police, seeing its blue lights. Once pulled over, two men reportedly ordered the three young men inside to lay on the ground, and then shots were fired.

A 17-year-old from Madera was shot in the liver and remained in critical condition at Community Regional Medical Center in Fresno as of Tuesday. A 22-year-old from Chowchilla was shot in the face, breaking his jaw and most of his teeth. A third passenger, also 17 and from Madera, was unharmed. Names of the victims were not released.

The 22-year-old drove away from the scene and was found about eight miles away after he called 9-1-1.

Detectives followed a blood trail from the scene, to a bloodied dog food bag containing nine pounds of crystal meth worth $45,000. It was hidden beneath a bridge.

"The way this (meth) is wrapped we know it came from Mexico," Anderson said, "which involved Mexican drug cartels."

Anderson said the driver told detectives he picked up the illegal drug in Los Angeles and "my job was to get it up here and get it sold."

The day after the shooting, detectives found the suspects' truck at a gas station on Highway 145 and Avenue 13 in Madera and arrested Lopez-Martinez.

Based on evidence gathered by investigators, a multiagency SWAT team later searched an apartment near Madera South High School, believed to be used by the suspects as a storing place. One pound of crystal meth was found with weapons, ammunition, more than two pounds of marijuana, $2,500, and law enforcement equipment, including tactical gear and body armor, along with fake badges and clothing donning words like "police" and "U.S. Marshals."

Posing as police officers is a common tactic for 'rip crews'- armed robbers who actively seek out and rob drug couriers and storehouses- along the Mexican border in Texas' Rio Grande Valley, but as Sheriff Anderson stated, is quite unusual for California's Central Valley.


COLORADO- Although Mexican drug cartels had a presence in Colorado before this year's legalization of marijuana, officials believe it's only a matter of time before organized crime adapts and take advantage of the situation.

Taking over a trade once ruled by drug cartels and turning it into an all-cash business could make pot shops prime targets for extortion, black-market competition and robbery. One veteran border narcotics agent told FoxNews.com Colorado's legal pot industry will find it hard to keep the criminals from horning in on a lucrative business they once controlled.

"Mexico is already in Colorado without the risks," the agent, who requested anonymity, said of the state's heavy pre-existing cartel presence. "Legal businesses will likely see a rise in extortion attempts while law enforcement will see a lot of backdoor deals being made."

Violent cartels could force their way in as black market wholesalers or simply rob pot dispensaries, which take only cash and have not been able to establish accounts with banks because of lenders' fears of violating federal laws. But the general consensus is that the Mexican cartels will not quietly relinquish the Denver market.

A 2012 report from the Mexican Competitive Institute estimated that Mexican drug trafficking organizations could lose as much as $1.4 billion dollars with legalized pot in the Denver market. Law enforcement believes that the cartels could extort owners of the newly legal pot dispensaries or set up legal shops of their own using straw buyers with clean backgrounds.

TAMAULIPAS- A former governor for the border state of Tamaulipas has been indicted by the US on charges of corruption and drug trafficking. According to the unsealed indictment last month, Tomas Yarrington served as governor of the Mexican state across the Rio Grande from the southern tip of Texas between 1999 and 2004 and took bribes from the Gulf Cartel and laundered drug money into campaign coffers in exchange for turning a blind eye to cartel activity.

In the indictment unsealed Monday, Yarrington is portrayed as an old-style PRI politician, for whom being cozy with drug traffickers was the way to do business.

Starting in 1998, “Yarrington received large bribes from major drug traffickers” in Tamaulipas, including the then-dominant Gulf Cartel, the U.S. attorney’s office of southern Texas said in a statement. The bribes began as he campaigned for governor, continued through his six-year term and afterward, the statement says.

In return, prosecutors allege, Yarrington “allowed them to operate their large-scale, multi-ton enterprises freely, which included the smuggling of large quantities of drugs to the United States for distribution.”

The indictment also alleges that Yarrington, 56, took bribes from local businesses and skimmed public money as well to pad his private accounts.

With suspected accomplice Fernando Cano, a builder, Yarrington then acquired numerous “valuable assets,” mostly across Texas, including homes, airplanes, bank accounts, vehicles and other real estate, worth around $7 million, the indictment states.

The 11-count indictment was returned in May, but for reasons not explained, was not opened until this week. It says Yarrington eventually became involved in the smuggling of drugs.

Like many politicians in Tamaulipas, Yarrington “abetted, enabled and profited from a symbiotic relationship with the Gulf Cartel,” said George Grayson, a Mexico expert at Virginia’s College of William & Mary.

Yarrington’s whereabouts are unknown, although his attorneys insisted this week that he is not a fugitive. The U.S. government has not yet formally sought his extradition. Mexican Atty. Gen. Jesus Murillo Karam said: “Whoever they ask us to look for, we will. They have had and will continue to have our cooperation.”

Yarrington’s Houston-based attorney, Joel Androphy, said in a news conference this week in Mexico City that the allegations against Yarrington were bogus and based on “false witnesses and testimony” by people attempting to make deals with the prosecution.

He refused to disclose Yarrington’s current location, except to repeat that he was in the United States a year ago when asked to leave because his visa had expired.

Accusations that Yarrington was receiving drug money first surfaced early last year, in connection with a U.S. case involving an associate, and then in a Mexican investigation. The PRI, in the middle of an election campaign, suspended him. Then-Atty. Gen. Marisela Morales ordered him arrested. But he managed to secure an injunction that left him free, and he threatened to take on the attorney general.

Yarrington was elected as a member of the PRI- the same political party that recently elected Mexican president Enrique Peña Nieto. During the 2012 election, the PRI party sought to distance itself from Yarrington and other corrupt politicians in Tamaulipas. Since 2006, the situation has become much more dire in Tamaulipas, with mass graves and the remnants of the Gulf Cartel fighting with their former allies, Los Zetas.

Thursday, October 10, 2013

Blue State Graft Watch: Former Detroit Mayor Kilpatrick Sentenced to 28 Years

Once billed as 'America's First Hip Hop Mayor', former Detroit mayor Kwame Kilpatrick was clad in khakis and gave a brief statement to the court as he was sentenced to 28 years of federal prison on Thursday at Detroit's federal courthouse.

Kilpatrick, now 43, became Detroit's youngest mayor ever at age 32. Prosecutors say he used his position to generate enormous personal wealth for himself and those close to him, not to improve the city he claimed to love and grew up in.

While earning an annual salary ranging from $158,000 to $176,000, Kilpatrick used other means to enrich his bank account, federal prosecutors say.

He evaded taxes and spent $554,000 of funds raised by the Kwame Kilpatrick Civic Fund, which operated under the guise of a nonprofit, on campaigns, rental cars, summer camps for his children, debugging equipment, birthday parties, gifts to relatives, travel and a crisis manager after the text message scandal broke.

Prosecutors tabulated $64,000 spent on suits.

"In all, while he was mayor, he spent $540,000 in cash," Assistant U.S. Attorney Mark Chutkow said during the opening statement of the trial. "This was over and above his salary, his payroll check, and it was not disclosed on his tax returns.

"And this was just a minimal, just the amount that these investigators here were able to readily trace."

Before Kilpatrick resigned in 2008, prosecutors presented evidence and testimony showing that Ferguson recruited Mahlon Cliftan, one of Kilpatrick's "best friends" who stood up in his wedding, to deliver him $90,000 dollars.

Cliftan taped the cash to his abdomen, flew to Chicago and hid the cash in the bag of a vacuum cleaner before delivering it to Kilpatrick and his wife in two installments.

Kilpatrick's former fundraiser, Emma Belle, who said she'd known Kilpatrick since he was a boy and regarded him as a son, earned over $900,000 in commissions collecting donations for Kilpatrick's nonprofit, although about half she kicked back to the mayor, she testified.
Kilpatrick's co-defendant and friend Bobby Ferguson is scheduled to be sentenced on Friday. While in office, Ferguson colluded with Kilpatrick and friends to steer millions of dollars worth of lucrative city public works contracts to Ferguson.

From Day 1, Kilpatrick's tenure as mayor was fraught with official misconduct and corruption. Within a year of Kilpatrick's 2002 swearing-in, reports circulated of Kilpatrick's wife interrupting a wild party with strippers and drugs at the mayor's official residence. On April 2013, one of the strippers who reportedly performed at the mansion was shot and killed in her vehicle with a .40 cal Glock- the same type of gun used by the Detroit Police as their sidearm at the time.

Around the same time, Kilpatrick was carrying on an illicit affair with his chief of staff, Christine Beatty and the two were texting on city-issued phones. By 2008, the Detroit Free Press had obtained nearly 14,000 text messages between Kilpatrick and Beatty. In addition to the extramarital affair, the texts also indicated that Kilpatrick was using city funds to arrange getaways with Beatty and the two had colluded to fire then police chief Gary Brown.

Kilpatrick has also been accused of diverting state grant money to his wife and lost a 2007 civil suit filed by Brown and one of the mayor's former bodyguards. The mayor's office initially dragged his feet on paying the $8.4 settlement but quickly changed his tune when the attorney for the policemen had discovered that Kilpatrick and Beatty perjured themselves. The mayor and attorneys for the city then hastily struck a 'secret' deal in which the sacked police chief and bodyguard would lose up to 33% of their settlement if they ever divulged the secret text messages or the deal itself. Ultimately the Free Press ended up publishing the contents of the incriminating texts.

Earlier this year, Kilpatrick was found guilty on 24 out of 30 federal charges of bribery, racketeering and corruption.

Wednesday, August 21, 2013

Boston Mob Boss Whitey Bulger Found Guilty of 11 Murders, Racketeering,

Elise Amendola; U.S. Marshals Service/AP Photo

A jury at the Federal Courthouse in Boston, MA found captured fugitive mob boss James 'Whitey' Bulger guilty of racketeering and 11 counts of murder last week.

The elusive Bulger was captured with girlfriend Catherine Greig at a luxury apartment complex in Santa Monica, CA in June 2011 after more than 16 years on the run. Bulger was on the FBI's Ten Most Wanted list for most of those 16 years, was also a source of embarrassment for the agency when it was made public that the Boston office of the FBI allowed Bulger's Winter Hill Gang to continue their criminal activities unimpeded in exchange for information on rival gangs, including the Providence, RI based Patriarcha crime family.

Bulger and his associates in the Winter Hill Gang were hired by former World Jai Alai president and Boston businessman John B Callahan to kill Oklahoma businessman Roger Wheeler- Callahan's successor at World Jai Alai. Callahan was reportedly worried that Wheeler would discover his embezzlement from the organization and report it to the FBI. One of Bulger's FBI handlers had retired and became head of World Jai Alai security, but would instead report on Wheeler's whereabouts to Bulger and the Winter Hill gang. Wheeler was shot and killed in his car outside a Tulsa, OK country club in May 1981.

Another FBI handler warned Bulger that Callahan was unlikely to hold up under questioning and one of the triggermen in Wheeler's killing was offering information to the Feds to try and get out of a separate murder charge. In July 1982, Callahan's bullet-riddled body was found stuffed in the trunk of his Cadillac at Miami International Airport. Two months earlier, Bulger and associate Stephen 'the Rifleman' Flemmi shot and killed suspected FBI informant Brian Halloran and a bystander named Michael Donahue in South Boston.

In addition to tipping off Bulger on the whereabouts of potential witnesses or other Winter Hill gang members ready to turn informant, agents from the Boston office of the FBI has been accused of lying to detectives in Oklahoma and Florida investigating the Jai Alai slayings and pressured an eyewitness in the Halloran and Donahue murders to identify the wrong man.

Bulger and Flemmi also extorted Southie liquor store owner Stephen Rakes into selling his business to them and then intimidated him into changing his story when the matter initially went to court in the early 1990s. The 2013 trial of Whitey Bulger took a dramatic turn when  Rakes turned up dead in Lincoln, MA last month. An autopsy showed that Rakes was poisoned and the Middlesex County DA charged a 69 year old man who reportedly owed Rakes a large sum of money with the murder.

Bulger and his girlfriend went into hiding in 1995 after FBI Agent John Connoly Jr tipped him off that a racketeering indictment was coming down. The FBI made hardly any headway until they ran a series of public service announcements focusing on Greig on daytime women's talk shows- within days, a tipster in southern California recognized Greig and Bulger as their neighbors, leading to their arrests.

Thursday, July 18, 2013

Detroit Becomes Largest US City to File For Bankruptcy

Will the last one out of Detroit please turn the lights off?

Beset by years of mismanagement, corruption and a steep population decline, the Motor City became the largest US city to file for Municipal bankruptcy on Thursday.

The filing by a state-appointed emergency manager means that if the bankruptcy filing is approved, city assets could be liquidated to satisfy demands for payment.

Snyder had determined earlier this year that Detroit was in a financial emergency and without a plan to improve things.

was unable to convince a host of creditors, including the city's union and pension boards, to take pennies on the dollar to help facilitate the city's massive financial restructuring.

Some creditors were asked to take about 10 cents on the dollar of what the city owed them. Underfunded pension claims would have received less than 10 cents on the dollar under that plan.

The filing leads to a 30 to 90 day period that will determine whether or not the city of Detroit is eligible for Chapter 9 protection, and define the number of claimants who may compete for Detroit’s limited settlement resources. The petition seeks protection from unions and creditors who are renegotiating $18.5 billion in debt and liabilities, according to the Detroit Free Press.
To the protests of many on the Detroit city council, Michigan's Republican governor Rick Snyder appointed emergency manager Kevin Orr back in March to oversee Motown's finances. Orr was a Maryland-based attorney who resigned from the prestigious Jones Day law firm to take the Emergency Manager position.

Besides rapid depopulation and a massive public employee pension shortfall, the city of Detroit fell into further financial disarray when former Mayor Kwame Kilpatrick took office and started awarding overly-generous city contracts to unqualified friends and ran up more than $210,000 on a city-issued credit card for meals, travel and alcohol.

It should also be worth pointing out that Detroit hasn't had a Republican since 1962.

Saturday, June 22, 2013

Blue State Graft Watch- Jesse Jackson Jr Hoping For Reduced Sentence, Claiming Mental Illness

Lawyers for former Congressman Jesse Jackson Jr are hoping for a reduced sentence, claiming that he won't obtain the treatment he reportedly needs for his alleged bipolar disorder.
Federal prosecutors want Jackson to be sentenced to four years in prison.

According to the new memorandum, two psychiatrists who have treated Jackson, 48, for mental health problems have written letters to the court on his behalf. But the memorandum does not name the doctors nor make public their letters. New are representations from Jackson's lawyers about the psychiatrists' views and Jackson's condition.
Similar defenses were used by the lawyers for former Illinois governors George Ryan and Rod Blagojevich. The previous two governors of Illinois are currently in prison on charges of extortion, racketeering and fraud.

While still in office, Jesse Jackson Jr spent several months at the Mayo Clinic in Minnesota undergoing treatment for what he claimed was 'exhaustion' starting in June 2012. Despite not being in office for several months, Jackson handily won re-election in his south Chicago Congressional district. Critics note that Jackson's 'mental health' problems weren't documented until a federal investigation into misappropriation of campaign funds began.

In late February, Jackson and his wife- Chicago alderwoman Sandra Stevens Jackson- pleaded guilty to mail fraud, wire fraud and making false statements. Sandra Jackson resigned from her office in late January. Prosecutors have accused the two of using nearly $750,000 in embezzled campaign funds for a number of personal purchases and home renovations. Items purchased included furs, a $43,000 Rolex as well as Bruce Lee, Jimi Hendrix and Michael Jackson memorabilia and plane tickets for Jackson's mistress, Giovana Huidboro.

Sunday, April 7, 2013

Borderline Psychosis Update- Vigilantes Oust Police, Take Over Guerrero Village; Sinaloa Cartel Seeks More Direct Involvement in Colombian Cocaine Production; Dirty Peruvian Cops May Have Played Role in 2012 Mexico City Airport Shootout


GUERRERO- Hundreds of armed vigilantes in the town of Villa Colorado have detained police officers, seized weapons and set up checkpoints on the main highway through town after the body of one of the 'community defense' commanders was found dumped in the middle of a street last month.
The self described 'community police' and arrested 12 officers and the town's former director of public security, who they accuse of taking part in the killing of Guadalupe Quinones Carbajal, 28, on behalf of a local organised crime group.

The 1,500-strong force has also set up improvised checkpoints on the major road running through Tierra Colorado, which connects the capital Mexico City to Acapulco, a coastal city popular with tourists less than 40 miles away.

The takeover of the police station also enabled the vigilante group to seize far more modern weaponry- such as semiautomatic rifles and pistols- than the single shot hunting rifles or antiquated revolvers that many of these groups had started off with- some members were spotted with the much newer rifles at improvised roadblocks shortly after the officers and public security director were turned over to state officials.

At least one tourist was wounded after vigilantes opened fire on a carload of tourists destined for Acapulco for the Easter weekend after the car refused to stop for the checkpoint in Villa Colorado.


COLOMBIA- According to reports published in Colombian daily El Tiempo, the Sinaloa Cartel is assuming control of an increasing number of Colombia's illegal cocaine production facilities in anticpation of an accord between the Colombian government and leftist guerilla group FARC.
An anonymous official told the Colombian daily El Tiempo that a number of mid-level FARC commanders have sold off their shares in the drug trade in anticipation of the continuing peace negotiations between the guerrilla group and the Colombian government, which is taking place in Havana. Under the agreement, Sinaloa would own and operate illegal cocaine production facilities in South America.

The sale of the so-called drug trafficking franchises marks a move by the Sinaloa cartel leader Joaquín “ El Chapo” Guzmán into the production of cocaine. Mexico’s cartels had previously relied on processed cocaine to be transported to the country from various points in South and Central America.

Crackdowns by Colombian authorities have forced the Mexican drug trafficking organization to take a more hands-on approach on the trade in the Andean nation. The Sinaloa Cartel is allegedly operating processing labs near the border with Ecuador, in the departments of Antioquia, Córdoba and in Norte de Santander, near the country’s border with Venezuela.

The Colombian government and the FARC are looking for points of agreement upon which to build a peace accord. In a joint statement, they said talks will begin with agrarian reform, the first item on the agenda.
FARC- whose acronym translates to Revolutionary Armed Forces of Colombia in English- is thought to be the western hemisphere's oldest active guerrilla army, having been started shortly after a bloody 1950's civil war in Colombia that was known only as La Viiolencia. The Marxist guerillas reportedly enjoyed financial and materiel support from the late Venezuelan president, Hugo Chavez. The armed group had turned to protecting cocoa plantations and production facilities as well as kidnapping and extortion to raise funds at least as far back as Pablo Escobar's heyday. FARC has most recently been active in south central Colombia as well as along the border with Venezuela.


TEXAS- Game wardens with the Texas Parks and Wildlife Department have seized more than two tons of marijuana in the border county of Starr County this week.

A total of 409 bundles of marijuana weighing 4,719 pounds were seized at a home in Starr County near the U.S.-Mexico border in South Texas.

The Wednesday night drug seizure also resulted in the arrest of two individuals who were at the home. A third person escaped.

Officials say some of the marijuana was hidden in an underground bunker at the home.
The crop and two suspects arrested at the scene were turned over to the Border Patrol. The pot seizure is reportedly among the largest in the Texas state agency's history.

PERU- Prosecutors in Lima have charged at least ten Peruvian drug enforcement agents for allegedly conspiring to smuggle cocaine out of the country via Lima International Airport. The narcotics were reportedly destined for a group of Mexican federal officers assigned to Mexico City's Benito Juarez international airport on the payroll of the Sinaloa cartel.

Cocaine being smuggled in from Peru is what reportedly sparked a deadly June 2012 shootout between Mexican federal agents at Benito Juarez International Airport that killed three.
“The killers were part of a gang of officers on the payroll of the Sinaloa cartel that worked at the airport in the Mexican federal capital and allowed drugs arriving from Peru to pass through. They knew which flight the cocaine was arriving on because the criminal organization also included Peruvian drug enforcement agents assigned to the international terminal” at the airport in Lima, the newspaper said.

Mexican officials notified the Peruvian government after the incident and the Dirandro launched an operation in August 2012 to identify the agents allegedly working for the Sinaloa cartel.
Among those under investigation include a major, two captians, a lieutenant and six other officers in the Dirandro- Peru's anti-drug agency.

The charges were filed around the same time a Peruvian "mega comission" accused former president Alan Garcia of issuing more than 400 pardons to convicted drug traffickers.

Monday, March 11, 2013

Blue State Graft Watch Update- Kwame We Hardly Knew Ye; Former Detroit Mayor Kwame Kilpatrick Convicted of Racketeering

Once dubbed America's First "Hip-Hop Mayor", former Detroit Mayor Kwame Kilpatrick was found guilty of racketeering at the federal courthouse in Detroit on Monday. Kwame, along with his father bernard Kilpatrick and contractor Bobby Ferguson were convicted of 24 out of 30 charges of racketeering, fraud, extortion, bribery and tax evasion after a months-long trail.

Although sentencing is still a few weeks off, US District Judge Nancy Edmonds deemed Kilpatrick a flight risk and ordered immediate incarceration of the ex-mayor while awaiting sentencing.
Attorneys for Kilpatrick and Ferguson argued they men should remain free on bond pending their sentencing and said they weren’t a flight.

Assistant U.S. Attorney Michael Bullotta argued Kilpatrick should be detained because he has a history of disobeying court orders. He also said Kilpatrick has access to money, as does Ferguson. Bullotta said Kilpatrick lied after his convictions on obstruction of justice charges in the text message scandal that drove him out of office.

Kilpatrick had previously been incarcerated in 2010 after a Wayne County judge determined he was lying about hidden assets after a 2008 trial where he and former aide Christine Beatty faced charges of perjury, official misconduct and obstruction of justice from Wayne County prosecutors. As part of the 2008 plea deal, Kilpatrick resigned as mayor and was supposed to pay $1 million in restitution and serve 120 days in jail.

Kwame is the son of congresswoman Carolyn 'Cheeks' Kilpatrick, who represented Michigan's 13th congressional district from 1997 to 2011. Elected to the office in 2001, Kwame Kilpatrick became the Motor City's youngest mayor. Despite using his office to award lucrative contracts to friends and fire city officials investigating reports of misconduct from the mayor's office, Kilpatrick was re-elected in 2005.

Seemingly locked in a death spiral at the time of his first term as Mayor, Detroit's prospects have only gotten worse since his resignation. The city faces a budget defecit of $327 million and an estimated $14 billion in long-term debt thanks to unfunded pension and healtchcare obligations. Michigan governor Rick Snider initiated the process of bringing in an emergency manager to Detroit at the beginning of the month.
He told a crowd at the Maccabbees building in Midtown that views today as a sad but hopeful day.

“At one point, (Detroit) was recognized as the most prosperous city in the United States,” he said. “We went form the top to the bottom.”

He said the decision won’t eliminate the role of elected officials in the city, acknowledging steps the mayor and city council have taken toward restructuring Detroit’s troubled finances.

“They haven’t been enough to solve the problem,” he said. “So lets work together.”

He said he expects an emergency manager to remain in place for at least a year and a half.
There has been increasing opposition to the state's Emergency Manager option since it first came up last year, even though there are few other viable options for Detroit.

Tuesday, February 19, 2013

Blue State Graft Watch Update- Feds Lay Out Case Against Former Congressman Jesse Jackson Jr

Federal prosecutors detailed their charges against former Illinois Democrat Congressman Jesse Jackson Jr late last week as he was charged with conspiracy to commit false statements, mail fraud and wire fraud as he allegedly misappropriated more than $750,000 in campaign funds. The money was reportedly used to buy high-end merchandise for himself and his wife and renovations on their Chicago home.
The court filing was a clear signal that Jackson, who was first elected to the House of Representatives in the mid-1990s, intended to plead guilty to the charge, which has a maximum penalty of five years in prison. No court date has been set.

Jackson’s expected plea would be another mile marker in his slow political and personal collapse, which began shortly after President Obama’s 2008 election. That had seemed to open up possibilities for Jackson, considered a likely successor to Obama in the Senate.

Instead, FBI agents arrested then-Gov. Rod Blagojevich (D) and charged him with trying to sell the interim appointment to the Senate seat from Illinois to the highest bidder, and Jackson was implicated in the scandal. Though not charged, he would never recover politically.

According to the documents released Friday, Jackson used campaign funds to buy a $43,350 gold Rolex watch along with almost $10,000 in children’s furniture that he had delivered to his home in the District.

Among other allegations, prosecutors say Jackson made direct expenditures of about $57,793 from the campaign’s accounts for personal expenses. The documents say he and a co-conspirator used a campaign credit card to make $582,773 worth of purchases for their own use.

Jackson’s wife, former Chicago alderman Sandra Stevens Jackson, was not named or charged in that case, but the description makes clear that she was the co-conspirator.

Jackson’s wife was charged with filing false income-tax returns from 2006 through 2011, according to a separate criminal information in her case. That charge has a maximum sentence of three years in prison.

The criminal documents outline a series of illegal expenditures from the former congressman’s campaign account, including more than a dozen purchases of pop-culture artifacts that firmly establish him as someone who came of age in the 1970s and ’80s:

●$10,105 worth of Bruce Lee memorabilia, including four separate purchases of items associated with the late martial-arts film hero.

●$14,200 in random Michael Jackson memorabilia.

●$4,000 for a “Michael Jackson and Eddie Van Halen” guitar.

●$4,600 for a Michael Jackson fedora.

In mid-November, when he announced his resignation from the House, Jackson signaled that he was in plea negotiations.

“I have made my share of mistakes. I am aware of the ongoing federal investigation into my activities and I am doing my best to address the situation responsibly, cooperate with the investigators,” he wrote in his resignation letter.

In the Blagojevich case, Raghuveer Nayak, who worked as a fundraiser for [convicted former Illinois governor Rod] Blagojevich and Jackson, told investigators that Jackson instructed him to raise as much as $6 million for the governor’s campaign.

If found guilty, Jackson will also lose his federal pension. Observers also indicate that prison time would an increasingly likely outcome for the 10-term congressman [no word on whether or not it will be at that nearly vacant prison outside of Rock Island, IL that President Obama, Gov Quinn and Sen Durbin were so keen on using to house Al Qeada detainees- NANESB!]. Despite checking himself into the Mayo Clinic in Minnesota back in June, Jackson Jr won re-election by a 63% margin in November before announcing his resignation a few weeks later.

On Friday, Jackson Jr's wife- former Chicago alderman Sandi Jackson- pleaded guilty to one count of tax fraud as part of a plea deal with federal prosecutors.

Saturday, January 5, 2013

Former Minnesota Policewoman Awarded More Than $1 Million in Breach of Privacy Lawsuit

Officer Anne Marie Rasmusson of the St Paul, MN Police department seen very much out of uniform.
A former Twin Cities policewoman has been awarded more that $1 Million in damages after learning that more than 100 of her former colleagues illegally accessed her personal information, looking up her driver's license in a state database. The case marks the largest data breach by law enforcement in the state's history.

Anne Marie Rasmusson, 37, was forced into early retirement from the St Paul, MN police department due to an injury in 2003 but continued working out and entered bodybuilding competitions as her husband continued working as a policeman in Minneapolis, MN.


Officer Anne Marie Rasmusson, this time in uniform
Rasmusson became suspicious after she was contacted out of the blue by former colleagues asking for dates or complimenting her on her driver's license photo.
When she was 24 and new to the St Paul police force, one of her co-workers suggested a bet – who could lose the most body fat in three months.

The once overweight officer dropped 15 pounds in three months, and continued her regimen of exercise and healthy eating until she dropped an additional 70lbs.

Rasmusson, who was known by colleagues as Bubbles because of her cheerful personality, first became aware that other officers were looking up her photo when a former police academy colleague mentioned to her in 2009 that she looked great and that he and his partner had used their squad car computer to view her driver’s license image.

In August 2011, she contacted the state’s Department of Public Safety asking if it was possible to restrict access to her driver’s license file. Following an investigation, a DPS worker revealed that her record had been accessed by officers numerous times as far back as 2007.

[Independent tabloid] City Pages found that 104 officers in 18 different state agencies accessed her driver’s licence record 425 times.
At least 104 officers, including police chiefs, stand accused of illegally accessing Rasmusson's personal data and could face disciplinary action.

The city of Minneapolis agreed to pay Rasmusson a $392,000 settlement in addition to a separate $280,000 settlement with other cities whose officers illegally accessed her personal data. Rasmusson will also be awarded a $385,000 suit from her former employer, the city of St Paul. That figure could increase depending on the outcome of a pending suit against the state of Minnesota.

Keep in mind this sort of conduct isn't necessarily limited to the Twin Cities. In Philadelphia, Deputy Commissioner William Blackburn is accused of flipping through the department's personnel files looking for attractive female officers to try and pick up. According to a lawsuit filed by Philadelphia P.D. officer Debra Frazier, Blackburn would then have his subordinated arrange for a meeting with officers he picked from the files.

A separate lawsuit accuses Philadelphia P.D. Staff Inspector Jarrod Bates of coercing a female subordinate into having sex with him in order to keep her job. Bates was a former supervisor of Internal Affairs and was the Equal Employment Opportunity officer in charge of investigating abuse and harassment complaints.

Saturday, December 8, 2012

Blue State Graft Watch: Anti Gun Illinois State Senator Caught Trying to Board Plane With Pistol, Live Ammunition at O'Hare

I'm not sure if I could call this graft or just plain stupidity- or a combination of the two.


The Noisy Cricket, resplendent in all its .25 cal glory

An Illinois State Senator is free on $25,000 bail after his arrest at Chicago's O'Hare airport for attempting to bring a pistol and live ammunition on board a plane on Wednesday.

Donne Trotter, a 62 year old Chicago Democrat, claimed it was an innocent mistake and that he forgot to unload he pistol and magazine with live rounds from a garment bag after reportedly finishing up a shift as a security guard.

Curiously, few people were even aware that Trotter worked a second job as a securty guard or owned a gun until this week's arrest.
It all started on Wednesday morning at O'Hare, when Transportation Security Administration officers say they spotted a gun in Trotter's carry-on bag. [Trotter] said he forgot it was in his bag from the night before, when he told authorities that he had worked a security guard shift for a South Side company.

According to state records, All Points Security and Detective Company currently has more than 50 employees licensed under it to work as armed guards, among them Donne Trotter.

Although many of the state licensees on this list appear to have law enforcement backgrounds, Trotter is not known for that. His bio and campaign disclosures do not list his employment as a security guard, and he has declined to answer any questions about the matter.

All Points has not responded to questions either and has offered no explanation, context or proof of Senator Trotter's actual employment.

Public records reveal the firm has had government contracts, including a $5 million deal to provide armed escorts for CTA cash collections.
The gun was identified as a .25 cal Beretta- a much more compact, small caliber pistol from the manufacturer of the military's M9 9mm sidearm [Just an observation on my part, but unless that was some sort of 'backup' piece, a .25 cal pistol is woefully underpowered for security or protective work of any kind- NANESB!]. During the bail hearing, prosecutors said that although Trotter had an Illinois state Firearms Owner Identification Card for the gun, the Beretta was not registered with the city of Chicago as required by municipal ordinance. The city of Chicago has among the strictest gun control laws in the nation for decades, but that has done nothing to stem the skyrocketing murder rate in the Windy City.

Trotter, who has been in office since 1988, voted against a measure that would allow Illinois residents to carry concealed weapons in 1995 and voted in favor of a ban on high capacity magazines in 2007.

At the end of November, Trotter joined a crowded field of candidates when he announced he would be running for Congress to replace Jesse Jackson Jr, who had announced his resignation amid a federal misconduct probe and after a months-long absence from Congress after checking himself into the Mayo clinic.

Thursday, November 29, 2012

Blue State Graft Watch- Congressman Jesse Jackson Jr Resigns Over Misuse Of Campaign Funds

Illinois Democrat Congressman Jesse Jackson Jr has stepped down last week, reportedly as part of a plea arrangement stemming from a federal investigation over his misappropriation of campaign funds. Earlier this month, Jackson Jr handily won re-election in his south Chicago district despite being at the Mayo Clinic in Minnesota since June- reportedly for treatment of 'exhaustion' and a previously undiagnosed bipolar disorder.

Federal investigators believe Jackson illegally siphoned off campaign funds to pay for renovations to his Chicago home, a $40,000 Rolex for a 'female friend' and plane tickets to fly Washington DC restaurant hostess Giovana Huidobro to Chicago at Jackson's request. There are also reports that Jackson was tipped off about the federal probe into his finances shortly before taking his leave of absence.

Jackson Jr's wife- Chicago Alerwoman Sandi Jackson- may also be facing jail time for her role in redirecting campaign funds. An estimated $20,000 went towards renovations on their Chicago home and many have speculated an increased willingness to cooperate with investigators on her part upon learning about the Rolex and plane tickets.

The son of increasingly irrelevant race baiting attention whore civil rights leader Jesse Jackson, Jackson Jr has been in congress for about 17 years and is no stranger to controversey. While still in law school, a Nigerian drug lord named Pius Ailemen was supposed to be the best man at his 1991 wedding [Aileman is currently serving a 24 year prison sentence for trafficking heroin- NANESB!]. More recently, Jackson Jr's name has come up repeatedly in the scandal surrounding former Illinois governor Rod Blagojevich's attempt to sell off Barack Obama's vacant senate seat to the highest bidder after the freshman senator won the 2008 Presidential election.

There is also the possibility that Jackson Jr could retain his $45,000 a year Congressional pension unless he is convicted of one of several possibly public corruption felony charges.

Meanwhile, Illinois Gov Pat Quinn has tenatively set a special election date to fill Jackson's vacant seat for March 19, although he left open the possibility of moving it further back to April 9th so it would coincide with municipal elections. At least a dozen candidates including state representative Toi Hutchinson and Blagojevich's attorney Sam Adam Jr have announced their plans to run for the vacated seat in Illinois' almost exclusively Democrat 2nd congressional district.

Friday, September 21, 2012

Blue State Graft Watch- Feds Arrest Trenton, NJ Mayor on Corruption Charges

After July's FBI raids on City Hall and the Mayor's residence in Trenton, NJ, many observers figured it would be only a matter of time before the Feds pressed charges against Democrat Trenton mayor Tony Mack and arrested him.

And they would be correct.

On September 10th, Mack was arrested by federal agents at his home on corruption charges linked to a city development project. Also taken into custody were Mack's brother Ralphiel and a prominent Mack campaign donor, Joseph "JoJo" Giorgianni.
"The investigation revealed evidence of a conspiracy among the defendants and other to corrupt certain functions of Trenton City government in favor of a purported developer seeking to building a parking garage on City-owned property in exchange for cash payments totaling approximate $119,000, a total of $54,000 that the defendants actually accepted in one way or another and another $65,000 that they anticipated accepting," according to the criminal complaint filed today.

The complaint indicates the FBI had been investigating Mack since September 2010, just a few months after he took office. At least two cooperating witnesses are cited in the complaint and the FBI made extensive use of wire taps on the phones of Mack, Giorgianni and the cooperating witnesses.

An informant working with the FBI, identified in the complaint as "CW-1," first met with Giorgianni on Sept. 14, 2010 claiming to represent a developer who wanted to build a parking garage on East State Street in the city. The confidential witness asked for Mack's help in securing the property in exchange for cash and Giorgianni agreed to broker the deal, the complaint states.

That conversation, which occurred two months after Mack's election, was recorded by the witness, according to the complaint.

"We want this," Giorgianni said, according to the complaint. "What do you think we did all this for? I like to make money for my friends. I like to do it like the Boss Tweed way. You know Boss Tweed ran Tamany Hall?"


Numerous meetings and conversations followed regarding the parking garage, but the project discussions slowed last year when a citizen's group mounted an effort to recall Mayor Mack. The recall fell short of the signatures needed.

"On April 18, 2011 at JoJo's Steakhouse, Giorgianni stated that Tony F. Mack was interested in engaging in the corrupt transaction previously discussed 'once this July thing's over,' referring to the efforts by certain Trenton citizens to recall Tony F. Mack," the complaint states. "Giorgianni stated 'Once that's over, we're ready to roll."

The bribes started to flow on Oct. 27, 2011 when Giorgianni accepted two envelopes with $1,500 each from the cooperating witness "with the express understanding that Giorgianni would give one of the envelopes to Tony F. Mack in exchange for Tony F. Mack's support of the development of the East State Street lot."
The July raids on City Hall, the mayor's home and Giorgianni's steakhouse reportedly stemmed from a phantom parking garage which was actually a paid parking lot in downtown Trenton that was sold to the city for $1 in 2000. The informant at Giorgianni's steakhouse had reportedly offered cash to both Giorgiani and Mack to arrange a meeting and help expedite the permit process for converting the current lot into a garage.

So far, Tony Mack faces just the single corruption charge, but more charges could be pending depending on what subsequent searches of City Hall, Mack's residence and Griogriani's steakhouse turn up.

Since taking office in 2010, Mack has been accused of using the city payroll as how own personal piggybank as well as steering larded up city contracts to friends, hiring and promoting unqualified relatives into various municipal positions. Earlier this year, Mack's half-brother who was appointed supervisor of Trenton's water utility pleaded guilty to using city employees and city owned equipment to carry out private work at the city's expense. A Mercer County judge had decided to revoke Mack's half brother's bail at the end of August.

It should also be worth pointing out that Mack is also a member of New York mayor Michael Bloomberg's 'Mayors against illegal guns' coalition.

Trenton is New Jersey's state capitol and 10th largest city.

Saturday, September 15, 2012

Blue Red State Graft Watch- Democrat Officials in Arkansas, Mississippi in Trouble Over Ballot Fraud

An Arkansas state representative along with three others have pleaded guilty to federal charges of Consipracy to commit voter fraud last week.

Democrat State Representative Hudson Hollum, his father Kent Hollum, W. Memphis city councilman Phillip Wayne Carter and W. Memphis police officer Sam Malone admitted to securing absentee ballots from voters in exchange for food, liquor, cigarettes or cash as well as destroying absentee ballots in unsealed envelopes where Hollum's opponent was chosen



West Memphis City Councilman Phillip Carter, West Memphis Police Officer Sam Malone, Hudson Hallum, and his father Kent Hallum all pleaded guilty in a conspiracy to bribe voters to influence absentee votes in the District 54 primary election runoff in 2011. Hudson Hallum beat his opponent by just 8 votes. Many came from absentee ballots, reviewed by Hallum before they were mailed to election headquarters.

“The runners of this organization, the Malones and the Carters if you will, would accumulate the absentee ballots and give them to Kent or Hudson Hallum for basically their review," said the United States Attorney for the Eastern District of Arkansas, Jane Duke. “They wanted to make sure if the absentee ballots had been in fact cast for Hudson Hallum. If it had not been, in most circumstances if not all, the ballots were destroyed and were not mailed on to the clerk's office for count."

"I warned him,” said the police officer’s former friend and an attorney in Crittenden County, Hubert Bass. “He (Malone) would brag to me about how he was handling the absentee ballots, that he would go to people's mailboxes and get them out and I told him, Malone you can't do that, you're going to get in trouble.”
Hallum resigned as state representative for the 54th district on September 5th as the indictments were handed down. Arkansas's 54th district covers West Memphis as well as the towns of Marion, Earle, Turrell and other rural areas of Crittenden county.

Across the river and to the south, an NAACP official in Tunica county, Mississippi was sentenced in July on 10 counts of fradulently casting ballots in the 2008 Presidential campaign.
[...] a Tunica County, Miss., jury convicted NAACP official Lessadolla Sowers on 10 counts of fraudulently casting absentee ballots. Sowers is identified on an NAACP website as a member of the Tunica County NAACP Executive Committee.

Sowers received a five-year prison term for each of the 10 counts, but Circuit Court Judge Charles Webster permitted Sowers to serve those terms concurrently, according to the Tunica Times

Sowers was found guilty of voting in the names of Carrie Collins, Walter Howard, Sheena Shelton, Alberta Pickett, Draper Cotton and Eddie Davis. She was also convicted of voting in the names of four dead persons: James L. Young, Dora Price, Dorothy Harris, and David Ross.

In the trial, forensic scientist Bo Scales testified that Sowers’s DNA was found on the inner seals of five envelopes containing absentee ballots.
The Democrat Party has sought to minimize and ridicule allegations of ballot fraud- or even deny that it exists- in the face of voter ID laws being passed in a number of states.

Saturday, August 25, 2012

Blue State Graft Watch- Audit Finds California State Parks Director Sitting on More than $50 Million in 'Hidden Assets'

Wildflowers in bloom at Anza Borrego state park, which straddles San Diego and Imperial counties in Southern California. Anza Borrego is one of 278 state parks in California that has recently been threatened with closure or drastically reduced services while the State Parks' Director was sitting on $54 million in undisclosed or underreported funds.
California State Parks Director Ruth Coleman stepped down and her second-in-command was fired after it was learned that the agency had been sitting on an unreported surplus of $54 million that had been accumulating over the last decade.

The funds were discovered shortly after the Sacramento Bee published an investigative report and internal audits from the California Department of Parks and Recreation regarding an unauthorized vacation buyout program among senior Parks officials that was thought to have cost the Golden State $271,000.

Much of the hidden money was discovered in a controversial Off Road Vehicle fund. Since late last year, off-roading advocates have accused the governor and state agencies of stacking the Parks and Recreation department with personnel hostile towards off-roaders.

The disclosure comes at a particularly awkward time for Gov. Jerry Brown, who has been campaigning for statewide ballot measures supporting tax increases that will be voted on in November. Earlier, Brown had said that as many as 70 California State Parks could be shuttered due to the agency running out of funds.
Officials tapped the department’s new deputy director of administrative services, Aaron Robertson, to examine agency finances. He is credited with finding the hidden funds.

State investigators have determined that nearly $20.4 million, or 39 percent of the money in the State Parks and Recreation Fund, was not disclosed to state budget officials. Nearly $33.5 million, or 20 percent, of the money in the parks’ Off Highway Vehicle Fund, was also not reported. Both accounts subsist on revenue from park visitor fees.

The finance department and the attorney general are reviewing whether criminal activity was involved in hiding the assets. Officials said preliminary findings suggest the reporting errors date back at least 12 years.
A number of donors who contributed to the state parks system before the hidden money was disclosed are now asking for their money back, claiming they were under the impression that their fundraising was the only thing keeping the parks open as the agency sat on more than $50 million in funds.

Earlier this year, it was learned that funds raised by the state of California to go to a September 11th memorial fund through the sale of special license plates was raided by both the Brown and Schwarzenegger administrations to plug shortfalls in the state's budget.

Tuesday, July 24, 2012

Borderline Psychosis Update- Drug Tunnel Discovered in AZ; Cartels Finding Slick New Way to Skirt Border Patrol? Car Bomb in Tamaulipas Kills Two

ARIZONA- Investigators in Arizona keeping a warehouse in the southwestern border town of San Luis under surveillance had discovered this month a recently completed drug tunnel connecting it with San Luis Rio Colorado on the Mexican side of the border.
Engineered with 4-by-6 beams, plywood walls, ceilings and floors, and a lighting and ventilation system, the fully operational tunnel was used to smuggle methamphetamine and possibly other drugs, the DEA said.

"From what I've heard and in my experience, this is probably the most sophisticated tunnel that they've probably found in Arizona," said Doug Coleman, special agent in charge of the DEA's Phoenix field office.

"It's really a piece of work," he said. "It looks like it was designed to be on a pulley system where you could just download the drugs in San Luis (Rio Colorado, Sonora) and use a pull cart to pull them all the way through and then pop them up on this side."

Coleman said he does not believe the tunnel was in operation for more than a week, based on the "pristine" condition of the shaft and the fact that drums filled with dirt removed from the tunnel were on pallets still inside the building. "I think it was very new," he said.
According to the DEA and Arizona Department of Public Safety, on July 6th, an Arizona State Trooper pulled over a Ford F-150 on US Route 95 in the Yuma, AZ area. A search of the vehicle turned up nearly 40 pounds of methamphetamine wrapped up in packaging in the bed of the truck.

After contacting the DEA, a search warrant was obtained for the warehouse in San Luis where the tunnel was discovered. The tunnel reportedly led to a recently-constructed ice distribution warehouse on the Mexican side of the border.

MEXICO- Police in the outskirts of Mexico City have arrested a number of men who were accused in attacking and robbing more than 90 youths from a church group who were on a camping retreat at an ecological preserve at the base of the Popocatepetl volcano. Even in nation that has grown increasingly jaded over brazen acts of murder committed in broad daylight, the crime shocked Mexico's general public.
Police arrested 17 men Wednesday on suspicion of attacking youths and raping five women and girls who were on a church camping trip outside Mexico City, a brutal assault that shocked much of the country.

The attorney general for the State of Mexico, Alfredo Castillo, said 11 of the gang members were identified by some of the victims. In interrogation videos played for reporters, three of the suspects confessed that they sexually abused the women and girls because fellow attackers told them to.

Two of the suspects were local police officers and another had served in the military, Castillo said, speaking two days after authorities announced the arrest of a man who was described as not directly involved in the assault on the camp-out but who allegedly provided information to the assailants.
The attacks, robberies, assaults and rapes took place over a period of several hours on Friday the 13th in the park which straddles the border of the states of Mexico and Puebla. At least 7 girls in the church group were sexually assaulted before their assailants left in stolen vehicles.

According to Mexico's state prosecutor, 12 of the 17 men in custody were identified by the victims as taking part in the assaults and robberies. Reportedly, none of the men in custody have any ties to the major organized crime organizations that have been locked in an ongoing bloody turf-wars since 2006.

DISTRITO FEDERAL- Authorities in Mexico's capitol city say they have arrested one of three Federal fugitive policemen who are wanted in the connection with a shootout where they killed three colleagues at Mexico City's international airport in late June. Mexican authorities say they've captured one of three rogue federal police officers who allegedly took part in a June 25 shootout that killed three of their colleagues at Mexico City's international airport.
Federal Police regional security chief Luis Cardenas Palomino says suspect Bogard Felipe Lugo de Leon was caught at a Mexico City apartment after police received a tip.

Cardenas Palomino says Lugo de Leon confirmed that one of the two officers who opened fire on their colleagues was about to be handcuffed for purportedly trafficking drugs through the terminal.

He says the bust was not pre-planned, but occurred when one of the rogue officers was caught in the act.
However, many in the Mexican press have questioned the official version of events leading up to the June 25th deadly shootout at Benito Juarez International Airport.
Mexican media have begun to question the official account, asking whether the gunfight could have been the result of a falling-out among co-conspirators. If it was an operation to capture traffickers in the act, some said, why did it take 20 minutes for additional police officers to appear after the shooting began? Why were only three police officers sent to arrest two armed fellow officers in a crowded airport?

“Tricks, lies, inventions!” the columnist Manuel J. Jauregui wrote in the Reforma newspaper Wednesday, adding that the operation was an embarrassment and that federal authorities were scrambling to get their stories straight. “They don’t even know who were the good guys and who were the bad guys,” Jauregui wrote.
Two other Federal Police officers are wanted for their role in the airport terminal shooting.

TAMAULLIPAS- Two police officers were killed and another 7 people were wounded when a powerful car bomb was detonated outside of the home of the top police official in Tamaulipas earlier this month.
Tamaulipas state Interior Secretary Morelos Canseco said Public Safety Secretary Rafael Lomeli wasn't injured in the blast, but that three neighbors were injured by glass fragments from shattered windows.

Canseco said the bomb was detonated with a cellphone soon after Lomeli arrived at his home. He said the car bomb showed an increased sophistication, both in the detonator and explosives used. It apparently exploded in a car parked just outside a security barrier on a street on which the official's home is located.
The bomb went off just outside a security checkpoint in the capital city of Tamaulipas. No organization has claimed responsibility for the bomb. Two years ago, a car bomb killed three police officers in Ciudad Juarez across the border from El Paso, TX.

TEXAS- Drug traffickers may be taking advantage of a boom in natural gas drilling in the Lone Star state to help move their product and circumvent Border Patrol checkpoints around the Eagle Ford shale in South Texas.

Map courtesey of Houston Chronicle
Drug traffickers have discovered that private roads sturdy enough to accomodate tractor-trailer and heavy duty pickup traffic serving drilling sites for companies like Exxon Mobil [NYSE- XOM], Halcon Resources [NYSE- HK] or Apache [NYSE- APA] can accomodate their vehicles and payload of contraband. Moreover, many of these private roads also bypass fixed Border Patrol checkpoints in South Texas.
Hefty roads running through once-remote ranchlands now enable loaded-down tractor-trailers and pickups to avoid Border Patrol highway checkpoints that have long been the last line of defense for stopping all traffic headed farther into the United States.

Traffickers are seeking to use the southwest-most stretches of the massive Eagle Ford shale formation, which stretches from Mexico all the way to East Texas, to their advantage by trying to corrupt truck drivers, contractors and gate personnel. Authorities also speculate that they are trying to make "cloned" copies of legitimate trucks and use contractor-like vehicles to avoid standing out among fleets of oil-field service vehicles working for energy companies. In some cases, vehicles have been stolen and believed to have been used by smugglers.

"They are using those roads to transport drugs, guns, ammo, you name it," said Albert DeLeon, chief deputy of the Dimmit County sheriff's office.

"Our biggest concern is how law enforcement is going to attack the threat. We cannot move Border Patrol checkpoints into those positions," said Tony Garcia, director for the South Texas HIDTA [High Intensity Drug Trafficking Area- NANESB!]. "It is pretty much up to your imagination what they could be moving through there. ... It is a bit of a dicey situation for us to deal with. We are putting our heads together."

For energy companies, the roads are critical to moving heavy drilling and related equipment in and out of the ranchlands where the work is done.

"Once they get past the checkpoints, they are pretty much free," said Javier Pena, head of the Drug Enforcement Administration's Houston division, which includes San Antonio and reaches to the Mexican border.

"It is very much on our radar," Pena said of smugglers. "We have been gearing up for it."

He declined to discuss the use of sensors, cameras or other tactics to monitor possible narcotics routes. Authorities also suspect that gate guards, drivers or other workers might succumb to bribes.

On a weekday morning in early March, 18,665 pounds of marijuana were caught being smuggled aboard two trucks, one a flatbed, the other a tanker truck driving through the Briscoe Ranch on a road that circumvents a Border Patrol checkpoint.

They were on a private road leased to energy companies and carrying what looked like supplies typically used in oil field operations but were instead loaded with marijuana. The two trucks yielded the most pot ever caught in one day by the Border Patrol's Del Rio Sector.

One of the truck drivers, who was not an employee of the energy industry, later admitted to agents that he was to be paid $7,500 to deliver the load, according to an affidavit at the federal courthouse in Del Rio.

Other big South Texas catches came in July last year when Border Patrol agents stopped a bogus oil field truck carrying 1,373 pounds of marijuana, and in June when they found 3,529 pounds of the drug stashed in a truck driven by an energy company worker.
In some boder areas in the USA, the Border Patrol sets up additional checkpoints along highways further away from the Mexican border where they can stop and inspect passing vehicles. On some maps, the private roads bypass some of these checkpoints where the contraband can continue on to the interstate highway system and metropolitan areas like Dallas or Houston.

Monday, July 23, 2012

Blue State Graft Watch Update- FBI Raids Home of Trenton, NJ Mayor

Federal agents armed with a search warrant raided the home of the mayor of New Jersey's capital city as well as his brother, an address listed one of the mayor's top donors and City Hall in the early morning hours of Thursday last week.
The raid on Mack’s residence in the upscale Berkeley Square section of the city was augmented by FBI searches at the home of Mack’s brother Ralphiel, the head football coach at Trenton Central High School, and the Ewing residence of Joseph “JoJo” Giorgianni
Later that day, Trenton, NJ's Democrat mayor Tony Mack sent a letter to the city clerk designating Ternton's Business Administrator Sam Hutchinson as acting mayor; a pro-forma move that allows Mack to leave the city. In a message on his Facebook page dated Sunday night, Mack said that he would be out of town and wouldn't be returning until July 30th.

A spokeswoman from the FBI declined to state what agents were looking for when they carried out raids on Mack's residence and City Hall. Although Mack has yet to be formally charged, his time in office as mayor has been marked by accusations of cronyism, his appointees being convicted of misconduct or having to step down once their criminal backgrounds were discovered.
City Councilman George Muschal, a frequent critic of Mack's management of the city, said he was not surprised when he received a text message notifying him that the FBI was raiding City Hall this morning. He only asked one question:

“What took them so long to get there?” Muschal said when reached by phone this afternoon. "There is full blown corruption in the city of Trenton. We have to go to a rock bottom low before we can rebuild. This might be a rock bottom low.”

A number of employees have sued the administration, including a former recreation employee who alleged that a close Mack associate, acting public works director Harold Hall, acted to bypass public bidding requirements and hired unqualified friends and relatives.

The FBI has investigated a political action committee that funneled donations to Mack, but the mayor has not been known to be under investigation personally.
One of the homes raided was that of 'Jojo' Giorgianni, a local steakhouse owner who was convicted of molesting a 14 year old girl in his restaurant in 1978. Tipping the scales at more than 500 pounds, Giorgianni and his legal team pleaded that he would be unable to survive in prison due to his considerable girth- an argument the presiding judge ruled in favor of until a videotape of the newly-freed Giorgianni ringside at a boxing match in smoke-filled arena without his oxygen tank was shown. Giorgianni reportedly exceeded the legal campaign contribution limit when he donated to Mack's 2010 Mayoral campaign.

In January, Mack's half-brother who was a manager at the city's water utility pleaded guilty to two counts of official misconduct after investigators discovered he was using city employees and city-owned equipment to carry out private side jobs while billing the city.

Other highlights of Tony Mack's two years in office include his chief-of-staff assaulting a police officer while carrying heroin in his pocket just days after leaving the scene of an accident, disguising a $20,000 campaign contribution as a loan, awarding municipal contracts to campaign donors, disbanding the police department's anti-gang and anti-narcotic units for more foot patrols and circumventing the city council to appoint friends and family to jobs within different city agencies.

Separately, the Mercer County prosecutor's office announced that they had a number of ongoing investigations over corruption in Trenton. They had successfully prosecuted Mack's half brother in the Trenton Water Works investigation earlier this year.

Like convicted felons Kwame Kilpatrick, Rod Blagojevic and Eddie Perez, Tony Mack is also a member of the Mike Bloomberg-sponsored Mayors Against Illegal Guns coalition.

Sunday, July 8, 2012

Borderline Psychosis Update: Gunboat Diplomacy- Texas Style; Police Chief Slain in Sinaloa; Texas Deputies Plead Guilty in Cocaine Delivery Sting; Mexico to Take a Page From Colombian Counternarcotics Strategy?

TEXAS- The Texas Department of Public Safety has taken to the waters of the Rio Grande and Intercoastal waterways in heavily armoured 34-foot shallow water boats to interdict drug smugglers in waters along the US-Mexico Border.
Texas now has a small navy of gunboats patrolling the Rio Grande and the Intercoastal Waterway. Each of the boats, equipped with armor-plating, night vision equipment and a small arsenal of weaponry, costs about $580,000 in state and federal funds. Troopers patrolling the border say the expense is justified, considering the ruthless nature of their adversaries in the Mexican drug cartels. What they fear, more than anything else, is the prospect of an ambush. "They’ve got radios, they’ve got their telephones, there’s somebody right here in this abandoned house right here," Goble says, gesturing to people hanging around on the Mexican side of the Rio Grande. "There’s somebody there now. They’re watching what we’re doing."  They’re watching, troopers explain, mainly because they’re providing real-time intelligence to smugglers who dump bales of drugs into the river and let the current carry them to the U.S. shoreline. Smugglers typically steal trucks in south Texas, load them up with drugs on the river and drive inland.  If they’re caught close to the border, many of the smugglers make a run back to the river, speeding down the dusty roads and crashing their trucks into the water. Then they climb out of their vehicles and quickly unload their contraband cargo, helped by confederates splashing into the river from the Mexican side. They haul their bales of dope back onto the dry land in Mexico, ready to try again another day. "They fear Texas law enforcement, but not as much as they fear going back and saying they’ve lost their load," Goble says. "Everything’s at stake. They will go to any extreme to get away from law enforcement and to get the contraband back to the owner." The desperate flights back to the river happen so often, troopers have nicknamed them "splashdowns." Law enforcement authorities have recorded more than 60 of these escapes in the last three years. Troopers point out rusting hulks of abandoned trucks on the U.S. shore where fleeing smugglers have abandoned their stolen vehicles
Each of the boats are equipped with six M-240 belt-fed machine guns capable of firing 900 rounds per minute- hardly overkill on the part of the Texas DPS considering the kind of firepower the cartels have availed themselves of. Last month, a police station and studios for the Televisa network were targeted in multiple grenade attacks in Matamoros, across the Rio Grande from Brownsville, TX. Two years ago, 29 gunmen purportedly working with the Sinaloa cartel were killed when the convoy they were travelling in came under fire from a carefully coordinated ambush with heavy weaponry less than 12 miles south of the border crossing at Sasabe, AZ. Currently, the Texas DPS has four of these gunboats in service, but the fleet is expected to grow to six total.

ELSEWHERE IN TEXAS- Two Bexar County Sheriff's Deputies pleaded guilty to protecting conspiracy and attempting to distribute cocaine after agreeing to protect drug shipments on multiple occasions between 2008 and 2010 after meeting with an informant and an undercover FBI agent.

The first meeting took place July 3, 2008, in the parking lot of a Hondo Wal-Mart. [Duputy Jose Angel] Cordero, in full uniform with his service weapon, agreed to transport about 9 pounds of what he thought was cocaine to the Omni Hotel in San Antonio. [Deputy Hector] Franco rode with Cordero to the Wal-Mart parking lot and then to the Omni. The agent paid Cordero $1,500, and Cordero later paid Franco $500. The second meeting took place December 17, 2009, at the Airport Hilton. The same undercover agent — accompanied by an FBI informant — struck a deal with the two deputies to escort a shipment of about 15.5 pounds of cocaine from San Antonio to New Braunfels. This time the FBI agent paid the men, who both arrived in full uniform with their service handguns, $1,200 each for their efforts. The third meeting took place March 23, 2010, at a high-end San Antonio steakhouse, where the deputies told the agent and his informant they'd be willing to transport cocaine to Dallas.
The terms of Cordero's plea agreement with prosecutors remains under seasl, although he did plead guilty to one charge of conspiracy. The county seat for Bexar County is San Antonio.

MEXICO- The counternarcotics strategy of Mexico's incoming Nieto presidency is starting to take shape with the hiring of Colombia's recently-retired National police commander as an adviser.

The proposal newly retired Colombian police director Gen. Oscar Naranjo explained in an interview with The Associated Press offers a glimpse of how President-elect Enrique Pena Nieto might fulfill his promise to slash the number of murders and kidnappings by 50 percent during his six years in office. Similar to the approach that Naranjo employed against Colombian traffickers, the proposal raises the question of whether the widely respected general can reproduce his success in a very different country. Pena Nieto has discussed a new offensive against the smaller, local gangs that have cropped up in many Mexican states and earn money through kidnapping and extortion in addition to drug dealing. Naranjo's proposal of small elite units dovetails with that idea. Such units have specific goals and typically work in isolation. The better a unit performs, the more resources it gets. Information is compartmentalized to prevent leaks. The model worked in Colombia and Naranjo said it could also be effective in Mexico. Such units, which Naranjo said could be comprised in Mexico of the Army, Navy and police, should pursue not just of "high-value targets" such as Sinaloa and Zeta cartel bosses, said Naranjo, who retired June 12 after five years atop his country's 170,000-member police. "In the first 100 days (of Pena Nieto's government) the goal should be set for reducing violence. It could go badly. It could go well. But it should be put in play," he said. "I think it's possible to tell the Mexicans, 'Look, in 100 days we want to cut the violence we have in half." It's feasible, he said, because Mexico's violence "is really concentrated. If you look at the map of violence there it's in six places. It's impossible that in six cities you can't have some control."
Naranjo, who had recently retired from his 36 year police career, had also consulted with Calderon's government [Naranjo pointedly mentions he was against Calderon's deploying the military to Juarez- NANESB!]. The 55 year old Naranjo is credited with forming the Colombian task force who [with the aid of intelligence and surveillance from the DEA] was eventually able to locate and kill Medellin Cartel chief Pablo Escobar in 1993. The elusive Escobar and his cartel had waged a war of attrition against the Colombian government throughout most of the 1980s, assasinating presidential candidates, judges and policemen and bombing an Avianca flight and multiple truck bombings in Bogata and Cali.

NUEVO LEON- An individual described as the Zetas 'piracy czar' was arrested by Mexican troops near the industrial center of Monterrey last month.

[Gregorio Villanueva Salas]- Considered one of the main operators working for [Zetas leader Heriberto] Lazcano, he told military interrogators before being paraded in Mexico City that 14 men found dead last week in a vehicle in Ciudad Mante in Tamaulipas belonged to his outfit. Mexican officials announced on Wednesday that more than 50 alleged members of the feared Zetas drug cartel, including two active duty policemen, women and children, had been arrested in the northern state of Nuevo Leon. The arrests came on the heels of the indictment on Tuesday of the man believed to be the drug cartel's second in command, Miguel Angel Trevino Morales, along with 13 others in the United States. Trevino, who is still at large in Mexico, is accused of presiding over a vast money laundering operation that hid millions of dollars of drug proceeds in an American horse racing and breeding syndicate.
Gregorio Villanueva Salas also said that he carried out attacks on schools, newspaper offices and military installations at Lazcano's request. In recent years, cartels have expanded their operations from drug trafficking and cultivation of marijuana and opium poppies or manufacture of methamphetamine to human trafficking, video and software piracy or illegal logging.

SINALOA- The police chief in the northern Sinaloa town of Choix was shot and killed by gunmen during an event marking Police Day last weekend. Chief Hector Echavarria was killed while Mayor Juan Carlos Estrada emerged from the attack unharmed. The attack came just days after locals discovered six bodies in a clandestine gravesite in the remote hills in the northern part of Sinaloa near Copper Canyon. The bodies are thought to have been from two seperate shootout between cartel gunmen and security forces in April near the city of Choix.

Although the territory is controlled by fugitive billionaire drug lord Joaquin 'El Chapo' Guzman, organizations such as Los Zetas or La Linea have attempted to encroach on remote territory considered ideal for cultivating opium poppies or marijuana. The Borderland Beat blog is reporting that scores of ranchers and rural families have been displaced by the ongoing fighting in the mountainous regions of Sinaloa.

ARIZONA- Police and Federal agents in Arizona announced the arrest of 20 drug trafickers alleged to have ties to the Sinaloa cartel and the seizure of weapons, and airplane, 30 pounds of methamphetamine and 3 tons of marijuana. The operation reportedly smuggled the drugs across the border from Mexico in hidden compartments of tractor trailers and were warehoused in the Phoenix area before being distributed to New York, Los Angeles or Alabama. The DEA dubbed the operation 'Nayarit Stampede'.