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Resist the Corporate State

Wells Fargo Admits Laundered Mexican Drug Money

with 3 comments

Bloomberg June 29, 2010

Just before sunset on April 10, 2006, a DC-9 jet landed at the international airport in the port city of Ciudad del Carmen, 500 miles east of Mexico City. As soldiers on the ground approached the plane, the crew tried to shoo them away, saying there was a dangerous oil leak. So the troops grew suspicious and searched the jet.

They found 128 black suitcases, packed with 5.7 tons of cocaine, valued at $100 million. The stash was supposed to have been delivered from Caracas to drug traffickers in Toluca, near Mexico City, Mexican prosecutors later found. Law enforcement officials also discovered something else…..

The smugglers had bought the DC-9 with laundered funds they transferred through two of the biggest banks in the U.S.: Wachovia Corp. and Bank of America Corp., Bloomberg Markets magazine reports in its August 2010 issue.

This was no isolated incident. Wachovia, it turns out, had made a habit of helping move money for Mexican drug smugglers. Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers — including the cash used to buy four planes that shipped a total of 22 tons of cocaine.

The admission came in an agreement that Charlotte, North Carolina-based Wachovia struck with federal prosecutors in March, and it sheds light on the largely undocumented role of U.S. banks in contributing to the violent drug trade that has convulsed Mexico for the past four years.

‘Blatant Disregard’

Wachovia admitted it didn’t do enough to spot illicit funds in handling $378.4 billion for Mexican-currency-exchange houses from 2004 to 2007. That’s the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history — a sum equal to one-third of Mexico’s current gross domestic product.

“Wachovia’s blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations,” says Jeffrey Sloman, the federal prosecutor who handled the case.

Since 2006, more than 22,000 people have been killed in drug-related battles that have raged mostly along the 2,000-mile (3,200-kilometer) border that Mexico shares with the U.S.

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Written by laudyms

June 30, 2010 at 10:53 am

3 Responses

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  1. Why don’t we set aside 90 days to change the color of our money from green to blue. All it takes is an ink change in the presses and a set up on line with IRS To make people/banks prove they got their money legally and paid taxes one it. If they cant it turns into toilet paper in 90 days and trillions are erased from the fed books of outstanding money. This would not only apply to drug money cash here but al saftey deposit boxes all over the US and world. Off shore accounts, overseas holdings etc. It would eradicate the deficit in 90 days.

    Anthony Bellotte

    November 15, 2010 at 5:01 am

  2. Could you “prove” you got all your assets legally? How much time and trouble would it take? Now maybe you have a glimmer about why your suggestion would never happen……….

    laudyms

    November 15, 2010 at 8:43 am

  3. w/o a pot to p. in.. and no tp when we get there, calling in the dead presidents works for me

    greg allen getty

    February 24, 2012 at 1:25 pm


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