Dark Alliance: The CIA, the Contras ..., by Gary Webb

"Science," the Greek word for knowledge, when appended to the word "political," creates what seems like an oxymoron. For who could claim to know politics? More complicated than any game, most people who play it become addicts and die without understanding what they were addicted to. The rest of us suffer under their malpractice as our "leaders." A truer case of the blind leading the blind could not be found. Plumb the depths of confusion here.

Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Fri Feb 13, 2026 11:00 pm

DARK ALLIANCE: The CIA, the CONTRAS, and the CRACK COCAINE EXPLOSION
by Gary Webb
Copyright © 1998, 1999 by Gary Webb
Foreword © 1998 by Maxine Waters

-- The Dark Alliance, by Gary Webb
• • • • • August 22, 1996 -- Cocaine Pipeline Financed Rebels -- Evidence Points to CIA Knowing of High-Volume Drug Network, by Gary Webb, San Jose Mercury News
• • • • • August 22, 1996 -- Salvador Air Force Linked to Cocaine Flights, Nicaraguan Contras, Drug Dealer's Supplier, by Gary Webb, San Jose Mercury News
• • • • • August 22, 1996 -- Trio Created Mass Market in U.S. for Crack Cocaine, by Gary Webb, San Jose Mercury News
• • • • • August 22, 1996 -- Crack Was Born During 1974 in S.F. Bay Area, by Gary Webb, San Jose Mercury News
• • • • • August 23, 1996 -- Drug King Free, But Black Aide Sits in Jail -- How Cheap Cocaine Became the Scourge of the Inner City, by Gary Webb, San Jose Mercury News
• • • • • August 23, 1996 -- Cocaine Sentences Weighted Against Blacks, by Gary Webb, San Jose Mercury News
• • • • • October 3, 1996 -- Affidavit Shows CIA Knew of Contra Drug Ring, by Gary Webb and Pamela Kramer, Knight-Ridder Newspapers
• • • • • October 23, 1996 -- How Webb Fueled Story of CIA, Crack -- Difference in Format a Problem, Says Editor, by Eleanor Randolph and John M. Broder, L.A. Times
• • • • • Office of Inspector General Investigations Staff Report of Investigation -- Allegations of Connections Between CIA and The Contras in Cocaine Trafficking to the United States, Volume I
• • • • • Central Intelligence Agency Inspector General Report of Investigation -- Allegations of Connections Between CIA and the Contras in Cocaine Trafficking to the United States, Volume II
• • • • • May 12, 1997 -- CIA Series Fell Short, Says Paper, by Associated Press
• • • • • May 14, 1997 -- Mercury News Retraction Won't Stop Drug Probe, by Thomas Farragher, Knight-Ridder Newspapers
• • • • • Gary Webb Speaks: A ParaScope Special Report -- Investigative Journalist Gary Webb

-- "Kill the Messenger" Resurrects Gary Webb, Journalist Maligned For Exposing CIA Ties to Crack Trade -- Illustrated Screenplay, by Amy Goodman, Democracy NOW!, October 9, 2014

-- The Warning in Gary Webb’s Death, by Robert Parry, December 9, 2011


TO SUE, WITH LOVE AND THANKS


Contents

Foreword Congresswoman Maxine Waters
Acknowledgments
Author's Note
PART ONE
PROLOGUE
o 1 "A Pretty secret kind of thing"
o 2 "We were the first"
o 3 "The brotherhood of military minds"
o 4 "I never sent cash"
o 5 "God. Fatherland and Freedom"
o 6 "They were doing their patriotic duty"
o 7 "Something happened to Ivan"
o 8 "A million hits is not enough"
o 9 "He would have had me by the tail"
o 10 "Teach a man a craft and he's liable to practice it"
o 11 "They were looking in the other direction"
o 12 "This guy talks to God"
o 13 "The wrong kind of friends"
o 14 "It's bigger than I can handle"
o 15 "This thing is a tidal wave"
o 16 "It's a burn"
o 17 "We're going to blow your fucking head off"
o 18 "We bust our ass and the government's involved"
o 19 "He reports to people reporting to Bush"
o 20 "It is a sensitive matter"
o 21 "I could go anywhere in the world and sell dope"
o 22 "They can't touch us"
o 23 "He had the backing of a superpower"
o 24 "They're gonna forget I was a drug dealer"
• PART TWO
o 25 "Things are moving all arounds us"
o 26 "That matter, if true, would be classified"
o 27 "A very difficult decision"
• EPILOGUE
• NOTES ON SOURCES
• CAST OF CHARACTERS
• GLOSSARY OF ORGANIZATIONS AND LOCATIONS

IN PRAISE OF GARY WEBB'S DARK ALLIANCE:

"Today, it is hard to say how Webb will be remembered by history. But if there is any justice, he will be remembered favorably. His book demonstrates that the original expose was on the right track. Rather than going too far by implicating U.S. government officials in illegal activities, it seems to me the newspaper series did not go far enough.

Based on the evidence in Webb's book, news organizations—especially the Washington Post, New York Times, and Los Angeles Times —should re-examine their knockdown stories. They owe such a re-examination not only to Webb, but also to their readers."

—Steve Weinberg in the Baltimore Sun (June 14, 1998)

"Two years ago Gary Webb touched off a national controversy with his news stories linking the CIA and the Nicaraguan Contras to the rise of the crack epidemic in Los Angeles and elsewhere. His gripping new book, richly researched and documented, deserves an even wider audience and discussion."

—Peter Dale Scott in the San Francisco Chronicle (June 28, 1998)

"Webb reminds us that the Reagan approved contra program attracted lowlifes and thugs the way manure draws flies. He guides the reader through a nether world of dope-dealers, gunrunners, and freelance security consultants, which on occasion overlapped with the U.S. government. He entertainingly details the honor, dishonor, and deals among thieves. . .All in all, it's a disgraceful picture— one that should permanently taint the happy-face hues of the Reagan years."

—David Corn in the Washington Post (August 9, 1998)

"Webb [is] a highly regarded investigative reporter. . .. Dark Alliance is his effort to tell his side of the story and set the record straight."

—James Adams in the New York Times Book Review (September 27, 1998)

"An excellent new book. . ."

—Norman Solomon in the San Francisco Bay Guardian (July 22, 1998)

"The Central Intelligence Agency continued to work with about two dozen Nicaraguan rebels and their supporters during the 1980s despite allegations that they were trafficking in drugs, according to a classified study by the C.I.A. The new study has found that the agency's decision to keep those paid agents, or to continue dealing with them in some less formal relationship, was made by top officials at headquarters in Langley, Virginia, in the midst of the war waged by the CIA-backed contras against Nicaragua's leftist Sandinista Government."

—James Risen, page one of the New York Times (July 17, 1998)

"Two years ago, Gary Webb wrote a series of articles that said some bad things about the CIA and drug traffickers. The CIA denied the charges, and every major newspaper in the country took the agency's word for it. Gary Webb was ruined. Which is a shame, because he was right."

—Charles Bowden in Esquire (September 1998)

"A standing room only crowd of several hundred people jammed a meeting hall in mid-town Manhattan on Thursday night to hear the details of a news story that refuses to die. . ."

—Juan Gonzalez in the New York Daily News (June 16, 1998)

"[It is an] issue that feels like a dagger in the heart of African Americans. . .. Even if the CIA's motive proves less malevolent, any evidence that it supported dmg trafficking would indeed be the crime of the century."

—Barbara Reynolds in USA Today (February 26, 1997)

"After thousands of hours of work by investigative reporters at several newspapers—almost all of them predisposed to proving that Gary Webb was wrong—none has succeeded in doing so."

—Jill Stewart in New Times Los Angeles (June 5, 1997)

"Gary Webb brought back before the American public one of the darkest secrets of the 1980s—the cocaine smuggling by the Nicaraguan contra forces—and paid for this service with his job."

—Robert Parry, winner of the George Polk Award for National Reporting

"This story challenges the moral authority of our government."

—Rev. Jesse L. Jackson  

"Absolute garbage."

—Lt. Col. Oliver North

"No story in recent memory had generated the intense controversy or exposed cultural-political fault lines the way the San Jose Mercury News' 'Dark Alliance' series has. If you judge journalism by its ability to stir up the pot, then this series —with its explosive suggestion of CIA complicity in the crack cocaine epidemic that paralyzed black neighborhoods in Los Angeles and subsidized the Contra war in Nicaragua in the '80s—deserves some kind of an award."

—Mark Jurkowitz, ombudsman, the Boston Globe (November 13, 1996)

"It may be the most significant news story you've never heard."

—Michael Paul Williams in the Richmond Times-Dispatch (September 16, 1996)

"A copiously researched tale of how two Nicaraguan drug dealers with connections to the CIA-backed contra army moved tons of drugs into Los Angeles."

—Newsweek (November 11, 1996)

"The hottest topic in black America."

—Jack E. White in Time (September 30, 1996)
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Fri Feb 13, 2026 11:07 pm

Foreword
BY CONGRESSWOMAN MAXINE WATERS

The night that I read the "Dark Alliance" series, I was so alarmed, that I literally sat straight up in bed, poring over every word. I reflected on the many meetings I attended throughout South Central Los Angeles during the 1980s, when I constantly asked, "Where are all the drugs coming from?" I asked myself that night whether it was possible for such a vast amount of drugs to be smuggled into any district under the noses of the community leaders, police, sheriff's department, FBI, DEA and other law enforcement agencies.

I decided to investigate the allegations. I met with Ricky Ross, Alan Fenster, Mike Ruppert, Celerino Castillo, Jerry Guzetta, and visited the L.A. Sheriff's Department. My investigation took me to Nicaragua where I interviewed Enrique Miranda Jaime in prison, and I met with the head of Sandinista intelligence Tomas Borge. I had the opportunity to question Contra leaders Adolfo Calero and Eden Pastora in a Senate investigative hearing, which was meant to be perfunctory, until I arrived to ask questions based on the vast knowledge I had gathered in my investigation. I forced Calero to admit he had a relationship with the CIA through the United States Embassy, where he directed USAID funds to community groups and organizations.

The time I spent investigating the allegations of the "Dark Alliance" series led me to the undeniable conclusion that the CIA, DEA, DIA, and FBI knew about drug trafficking in South Central Los Angeles. They were either part of the trafficking or turned a blind eye to it, in an effort to fund the Contra war. I am convinced that drug money played an important role in the Contra war and that drug money was used by both sides.

The saddest part of these revelations is the wrecked lives and lost possibilities of so many people who got caught up in selling drugs, went to prison, ended up addicted, dead, or walking zombies from drugs.

It may take time, but I am convinced that history is going to record that Gary Webb wrote the truth. The establishment refused to give Gary Webb the credit that he deserved. They teamed up in an effort to destroy the story—and very nearly succeeded.

There are a few of us who congratulate Gary for his honesty and courage. We will not let this story end until the naysayers and opponents are forced to apologize for their reckless and irresponsible attacks on Gary Webb.

The editors of the San Jose Mercury News did not have the strength to withstand the attacks, so they abandoned Gary Webb, despite their knowledge that Gary was working on further documentation to substantiate the allegations of the series.

This book completely and absolutely confirms Gary Webb's devastating series. This book is the final chapter on this sordid tale and brings to light one of the worst official abuses in our nation's history. We all owe Gary Webb a debt of gratitude for his brave work.
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Fri Feb 13, 2026 11:07 pm

Acknowledgments

I am forever indebted to my friend and colleague Georg Hodel, who helped me chase this epic through Central America at immeasurable risk to both himself and his family in Nicaragua. His persistence, his wisdom, and his courage were a constant inspiration, and a melancholy reminder of just how far from the path of righteousness corporate American journalism has wandered.

Another journalist to whom I owe a special debt is Nick Schou of O.C. Weekly, who put the L.A. Times to shame with his reporting, and was very generous with his time and his discoveries. Pam Kramer of the San Jose Mercury News Los Angeles bureau was a joy to work with as well, being smarter (and braver) than almost every other reporter I know.

In the 1980s and early '90s, a number of journalists began unearthing parts of this skeleton bone by bone. My investigative predecessors are also owed thanks, not only for their thoughts and in some cases their files, but for their courageous work in helping to bring this story to light: Tony Avirgan, Brian Barger, Dennis Bernstein, Alexander Cockburn, Leslie Cockburn, Sally Denton, Brian Donovan, Guillermo Fernandez, Martha Honey, Peter Kornbluh, Jonathan Kwitny, Jonathan Marshall, John McPhaul, Jefferson Morley, Roger Morris, Micah Morrison, Robert Parry, Seth Rosenfeld, Peter Dale Scott, Josiah Thompson, Douglas Vaughan, and David Umhoefer. Patriots all.

Thanks much to David Paynter and Elizabeth Lockwood of the National Archives in College Park, Maryland, who unfailingly answered my Freedom of Information Act (FOIA) requests within ten days and patiently searched the Walsh databases for needles in haystacks. I am also grateful to the many cheerful librarians at the California State Library's Government Publications Section in Sacramento, particularly senior librarian Deborah Weber, who taught me the wonders of the FBIS microfiche.

John Mattes, Jack Blum, and Jon Winer of the Kerry Committee staff were extraordinarily helpful, and one day, I am sure, they will be hailed for the remarkable service they rendered to the American public under very trying circumstances.

The efforts of my agent, Flip Brophy, are much appreciated, though I'm sure her self-esteem will never recover from the torrent of rejections. I am also beholden to my fearless publisher, Dan Simon, and the folks at Seven Stories Press for their faith and patience.

Finally, I would never have been able to write this book and survive these past few years without the love, support, and understanding of my wife, Sue, and our children, Ian, Eric, and Christine. You're the best.

—G.W.

Sacramento, March 1998
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Fri Feb 13, 2026 11:08 pm

Author's Note

This, sadly, is a true story. It is based upon a controversial series I wrote for the San Jose Mercury News in the summer of 1996 about the origins of the crack plague in South Central Los Angeles.

Unlike other books that purport to tell the inside story of America's most futile war ( Kings of Cocaine by Guy Gugliotta and Jeff Leen and Desperados by Elaine Shannon spring to mind), Dark Alliance was not written with the assistance, cooperation, or encouragement of the U.S. Drug Enforcement Administration or any federal law enforcement agency.

In fact, the opposite is true. Every Freedom of Information Act request I filed was rejected on national security or privacy grounds, was ignored, or was responded to with documents so heavily censored they must have been the source of much hilarity down at the FOIA offices. The sole exception was the National Archives and Records Administration.

Dark Alliance does not propound a conspiracy theory; there is nothing theoretical about history. In this case, it is undeniable that a wildly successful conspiracy to import cocaine existed for many years, and that innumerable American citizens—most of them poor and black—paid an enormous price as a result.

This book was written for them, so that they may know upon what altars their communities were sacrificed.

—G.W.

Every government is run by liars and nothing they say should be believed.

—I. F. STONE, 1907 - 1989
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Fri Feb 13, 2026 11:08 pm

PART ONE

PROLOGUE
 

"It was like they didn't want to know"

When I came to work in the sprawling newsroom of the Cleveland Plain Dealer in the early 1980s, I was assigned to share a computer terminal with a tall middle-aged reporter with a long, virtually unpronounceable Polish name. To save time, people called him Tom A.

To me, arriving from a small daily in Kentucky, Tom A. was the epitome of the hard-boiled big-city newspaperman. The city officials he wrote about and the editors who mangled his copy were "fuckinjerks." A question prompting an affirmative response would elicit "fuckin-a-tweetie" instead of "yes." And when his phone rang he would say, "It's the Big One," before picking up the receiver.

No matter how many times I heard that, I always laughed. The Big One was the reporter's holy grail—the tip that led you from the daily morass of press conferences and cop calls on to the trail of The Biggest Story You'd Ever Write, the one that would turn the rest of your career into an anticlimax. I never knew if it was cynicism or optimism that made him say it, but deep inside, I thought he was jinxing himself.

The Big One, I believed, would be like a bullet with your name on it. You'd never hear it coming. And almost a decade later, long after Tom A., the Plain Dealer, and I had parted company, that's precisely how it happened. I didn't even take the call.

It manifested itself as a pink While You Were Out message slip left on my desk in July 1995.

There was no message, just a woman's name and a phone number, somewhere in the East Bay.

I called, but there was no answer, so I put the message aside. If I have time, I told myself, I'll try again later.

Several days later an identical message slip appeared. Its twin was still sitting on a pile of papers at the edge of my desk.

This time the woman was home.

"I saw the story you did a couple weeks ago," she began. "The one about the dmg seizure laws. I thought you did a good job."

"Thanks a lot," I said, and I meant it. She was the first reader who'd called about that story, a front-page piece in the San Jose Mercury News about a convicted cocaine trafficker who, without any formal legal training, had beaten the U.S. Justice Department in court three straight times and was on the verge of flushing the government's multibillion-dollar asset forfeiture program right down the toilet. The inmate, a lifer, had argued that losing your property and going to jail was like being punished twice for the same crime—double jeopardy—and seventeen judges from the Ninth Circuit Court of Appeals agreed with him. (Faced with the prospect of setting thousands of dopers free or returning billions in seized property, the U.S. Supreme Court would later overturn two of its own rulings in order to kill off the inmate's suit.)

"You didn't just give the government's side of it," she continued. "The other stories I read about the case were like, 'Omigod, they're going to let drug dealers out of jail. Isn't this terrible?"'

I asked what I could do for her.

"My boyfriend is in a situation like that," she said, "and I thought it might make a good follow-up story for you. What the government has done to him is unbelievable."

"Your boyfriend?"

"He's in prison right now on cocaine trafficking charges. He's been in jail for three years."

"How much more time has he got?"

"Well, that's just it," she said. "He's never been brought to trial. He's done three years already, and he's never been convicted of anything."

"He must have waived his speedy trial rights," I said.

"No, none of them have," she said. "There are about five or six guys who were indicted with him, and most of them are still waiting to be tried, too. They want to go to trial because they think it's a bullshit case. Rafael keeps writing letters to the judge and the prosecutor, saying, you know, try me or let me go."

"Rafael's your boyfriend?"

"Yes. Rafael Cornejo."

"He's Colombian?"

"No, Nicaraguan. But he's lived in the Bay Area since he was like two or something."

It's interesting, I thought, but not the kind of story likely to excite my editors. Some drug dealers don't like being in jail? Oh.

"What's the connection to the forfeiture story?" I asked.

Rafael, she explained, had been a very successful "businessman," and the government, under the asset forfeiture program, had seized and sold his automobiles, his houses, and his businesses, emptied his bank accounts, and left him without enough money to hire a lawyer. He had a court-appointed lawyer, she said, who was getting paid by the hour and didn't seem to care how long the case took.

"Rafael had the most gorgeous house out in Lafayette, and the government sold it for next to nothing. Now what happens if he's acquitted? He spends three or four years in jail for a crime he didn't commit, and when he gets out, someone else is living in his house. I mean, what kind of a country is this? I think it would make a good story."

It might, I told her, if I hadn't done it half a dozen times already. Two years earlier, I'd written a series for the Mercury called "The Forfeiture Racket," about the police in California busting into private homes and taking furniture, televisions, Nintendo games, belt buckles, welfare checks, snow tires, and loose change under the guise of cracking down on drug traffickers. Many times they'd never file charges, or the charges would be dropped once the victims signed over the loot.

The series created such an outcry that the California legislature had abolished the forfeiture program a few weeks later. But I knew what I would hear if I pitched the woman's story to my editors: We've done that already. And that was what I told her.

She was not dissuaded.

"There's something about Rafael's case that I don't think you would have ever done before," she persisted. "One of the government's witnesses is a guy who used to work with the CIA selling drugs. Tons of it."

"What now?" I wasn't sure I'd heard correctly.

"The CIA. He used to work for them or something. He's a Nicaraguan too. Rafael knows him, he can tell you. He told me the guy had admitted bringing four tons of cocaine into the country. Four tons! And if that's what he's admitted to, you can imagine how much it really was. And now he's back working for the government again."

I put down my pen. She'd sounded so rational. Where did this CIA stuff come from? In seventeen years of investigative reporting, I had ended up doubting the credibility of every person who ever called me with a tip about the CIA.

I flashed on Eddie Johnson, a conspiracy theorist who would come bopping into the Kentucky Post's newsroom every so often with amazing tales of intrigue and corruption. Interviewing Eddie was one of the rites of passage at the Post.

Someone would invariably send him over to the newest reporter on the staff to see how long it took the rookie to figure out he was spinning his wheels.

Suddenly I remembered who I was talking to—a cocaine dealer's moll.

That explained it.

"Oh, the CIA. Well, you're right. I've never done any stories about the CIA. I don't run across them too often here in Sacramento. See, I mostly cover state government—"

"You probably think I'm crazy, right?"

"No, no," I assured her. "You know, could be true, who's to say? When it comes to the CIA, stranger things have happened."

There was a short silence, and I could hear her exhale sharply.

"How dare you treat me like I'm an idiot," she said evenly. "You don't even know me. I work for a law firm. I've copied every single piece of paper that's been filed in Rafael's case and I can document everything I'm telling you. You can ask Rafael, and he can tell you himself. What's so hard about coming over and at least taking a look at this stuff?"

"That's a fair question," I allowed. Now, what was my answer? Because I lied and I do think you're crazy? Or because I'm too lazy to get up and chase a story that appears to have a one-in-a-thousand chance of being true?

"You say you can document this?"

"Absolutely. I have all the files here at home. You're welcome to look at all of it if you want. And Rafael can tell you—" In the background a child began yowling. "Just a minute, will you? That's my daughter. She just fell down."

The phone thunked on the other end, and I heard footsteps retreating into the distance.

Well, that's a promising sign, I thought. Were she a raving dope fiend, they wouldn't let her raise an infant. She came back on, bouncing the sobbing toddler. I asked her where she lived.

"Oakland. But Rafael's got a court date in San Francisco coming up in a couple weeks. Why don't I meet you at the courthouse? That way you can sit in on the hearing, and if you're interested we could get lunch or something and talk."

That cinched it. Now the worst that could happen was lunch in San Francisco in mid-July, away from the phones and the editors. And, who knows, there was an off chance she was telling the truth.

"Okay, fine," I said. "But bring some of those records with you, okay? I can look through them while I'm sitting there in court."

She laughed. "You don't trust me, do you? You probably get a lot of calls like this."

"Not many like this," I said.

Flipping on my computer, I logged into the Dialog database, which contains full-text electronic versions of millions of newspaper and magazine stories, property records, legal filings, you name it. If you've ever been written about or done something significant in court, chances are Dialog will find you.

Okay. Let's see if Rafael Cornejo even exists.

A message flashed on the screen: "Your search has retrieved 11 documents. Display?" So far so good.

I called up the most recent one, a newspaper story that had appeared a year before in the San Francisco Chronicle. My eyes widened.

"4 Indicted in Prison Breakout Plot—Pleasanton Inmates Planned to Leave in Copter, Prosecutors Say."

I quickly scanned the story. Son of a bitch.

Four inmates were indicted yesterday in connection with a bold plan to escape from the federal lockup in Pleasanton using plastic explosives and a helicopter that would have taken them to a cargo ship at sea. The group also considered killing a guard if their keepers tried to thwart the escape, prosecutors contend.

Rafael Cornejo, 39, of Lafayette, an alleged cocaine kingpin with reputed ties to Nicaraguan drug traffickers and Panamanian money launderers, was among those indicted for conspiracy to escape.


The story called Cornejo "a longtime drug dealer who was convicted in 1977 of cocaine trafficking in Panama. He also has served time in a U.S. prison for tax evasion. He owns several homes and commercial properties in the Bay Area."

This sure sounds like the same guy, I thought. I scrolled down to the next hit, a San Francisco Examiner story.

The four men were charged with planning to use C-4 plastic explosives to blow out a prison window and with making a 9-inch "shank" that could be used to cut a guard's "guts out" if he tried to block their run to the prison yard. Once in the yard, they allegedly would be picked up by a helicopter and flown to a Panamanian cargo ship in the Pacific, federal officials said.


The remaining stories described Cornejo's arrest and indictment in 1992, the result of an eighteen-month FBI investigation. Suspected drug kingpin. Head of a large cocaine distribution ring on the West Coast. Allegedly involved in a major cocaine pipeline that ran from Cali, Colombia, to several West Coast cities. Importing millions of dollars worth of cocaine via San Diego and Los Angeles to the Bay Area.

That's some boyfriend she's got there, I mused. The newspaper stories make him sound like A1 Capone. And he wants to sit down and have a chat? That'll be the day.

When I pushed open the doors to the vast courtroom in the San Francisco federal courthouse a few weeks later, I found a scene from Miami Vice.

To my left, a dark-suited army of federal agents and prosecutors huddled around a long, polished wooden table, looking grim and talking in low voices. On the right, an array of long-haired, expensively attired defense attorneys were whispering to a group of long-haired, angry-looking Hispanics—their clients. The judge had not yet arrived.

I had no idea what my tipster looked like, so I scanned the faces in the courtroom, trying to pick out a woman who could be a drug kingpin's girlfriend. She found me first.

"You must be Gary," said a voice behind me.

I turned, and for an instant all I saw was cleavage and jewelry. She looked to be in her mid-twenties. Dark hair. Bright red lipstick. Long legs. Short skirt. Dressed to accentuate her positive attributes. I could barely speak.

"You're. . .?"

She tossed her hair and smiled. "Pleased to meet you." She stuck out a hand with a giant diamond on it, and I shook it weakly.

We sat down in the row of seats behind the prosecutors' table, and I glanced at her again. That boyfriend of hers must be going nuts.

"How did you know it was me?" I asked.

"I was looking for someone who looked like a reporter. I saw you with a notebook in your back pocket and figured—"

"That obvious, is it?" I pulled out the notepad and got out a pen. "Why don't you fill me in on who's who here?"

She pointed out Rafael, a short handsome Latino with a strong jaw and long, wavy hair parted in the middle. He swiveled in his chair, looked right at us, and seemed perturbed. His girlfriend waved, and he whirled back around without acknowledging her.

"He doesn't look very happy," I observed.

"He doesn't like seeing me with other men."

"Uh, why was he trying to break out of jail?" I asked.

"He wasn't. He was getting ready to make bail, and they didn't want to let him out, so they trumped up these phony escape charges. Now, because he's under indictment for escape, he isn't eligible for bail anymore."

The escape charges were in fact the product of an unsubstantiated accusation by a fellow inmate, a convicted swindler. They were later thrown out of court on grounds of prosecutorial misconduct, and Cornejo's prosecutor, Assistant U.S. Attorney David Hall, was referred to the Justice Department for investigation by federal judge Saundra Brown Armstrong.

(In a San Francisco Daily Recorder story about the misconduct charge, it was noted that "it is not the first time that Hall has been under such scrutiny. While serving with the Department of Justice in Texas, the Office of Professional Responsibility reviewed Hall after an informant accused Hall of approving drug smuggling into the U.S.Hall said the office found no merit in the charge.")

She pointed out Hall, a large blond man with broad features.

"Who are the rest of those people?" I asked.

"The two men standing over there are the FBI agents on the case. The woman is Hall's boss, Teresa Canepa. She's the bitch who's got it in for Rafael."

As she was pointing everyone out, the FBI agents whispered to each other and then tapped Hall on the shoulder. All three turned and looked at me.

"What's with them?"

"They probably think you're my hit man." She smiled, and the agents frowned back. "Oh, they just hate me. I called the cops on them once, you know."

I looked at her. "You called the cops on the FBI."

"Well, they were lurking around outside my house after dark. They could have been rapists or something. How was I supposed to know?"

I glanced back over at the federal table and saw that the entire group had now turned to stare. I was certainly making a lot of friends.  

"Can we go out in the hall and talk for a minute?" I asked her.

We sat on a bench just outside the door. I told her I needed to get case numbers so I could ask for the court files. And, by the way, did she bring those documents she'd mentioned?

She reached into her briefcase and brought out a stack an inch thick. "I've got three bankers' boxes full back at home, and you're welcome to see all of it, but this is the stuff I was telling you about concerning the witness."

I flipped through the documents. Most of them were federal law enforcement reports, DEA-6s and FBI 302s, every page bearing big black letters that said, "may not be reproduced—property of u.s. government." At the bottom of the stack was a transcript of some sort. I pulled it out.

"Grand Jury for the Northern District of California, Grand Jury Number 93-5 Grand Jury Inv. No. 9301035. Reporter's Transcript of Proceedings. Testimony of Oscar Danilo Blandon. February 3, 1994."

I whistled. "Federal grand jury transcripts? I'm impressed. Where'd you get these?"

"The government turned them over under discovery. Dave Hall did. I heard he really got reamed out by the DEA when they found out about all the stuff he gave us."

I looked through the transcript and saw parts that had been blacked out.

"Who did this?"

"That's how we got it. Rafael's lawyer is asking for a clean copy. As you'll see, they also cut out a bunch of stuff on the DEA-6s. There's a hearing on his motion coming up."

I skimmed the thirty-nine-page transcript. Whatever else this Blandon fellow may have been, he was pretty much the way Cornejo's girlfriend had described him. A big-time trafficker who'd dealt dope for many years; started out dealing for the Contras, a right-wing Nicaraguan guerrilla army, in Los Angeles. He'd used drug money to buy trucks and supplies. At some point after Ronald Reagan got into power, the CIA had decided his services as a fund-raiser were no longer required, and he stayed in the drug business for himself.

What made the story so compelling was that he was appearing before the grand jury as a U.S. government witness. He wasn't under investigation. He wasn't trying to beat a rap. He was there as a witness for the prosecution, which meant that the U.S. Justice Department was vouching for him.

But who was the grand jury investigating? Every time the testimony led in that direction, words—mostly names—were blacked out.

"Who is this family they keep asking him about?"

"Rafael says it's Meneses. Norwin Meneses and his nephews. Have you heard of them?"

"Nope."

"Norwin is one of the biggest traffickers on the West Coast. When Rafael got arrested, that's who the FBI and the IRS wanted to talk to him about. Rafael has known [Norwin and his nephews] for years. Since the Seventies, I think. The government is apparently using Blandon to get to Meneses."

Inside, I heard the bailiff calling the court to order, and we returned to the courtroom. During the hearing, I kept trying to recall where I had heard about this Contra-cocaine business before. Had I read it in a book? Seen it on television? It bothered me. I believed that I had a better-than-average knowledge of the civil war in Nicaragua, having religiously followed the Iran-Contra hearings on television. I would videotape them while I was at work and watch them late into the night, marvelling the next morning at how wretchedly the newspapers were covering the story.

Like most Americans, I knew the Contras had been a creation of the CIA, the darlings of the Reagan Right, made up largely of the vanquished followers of deposed Nicaraguan dictator Anastasio Somoza and his brutal army, the National Guard. But drug trafficking? Surely, I thought, if there had been some concrete evidence, it would have stuck in my mind. Maybe I was confusing it with something else.

During a break, I went to the restroom and bumped into Assistant U.S. Attorney Hall. Just in case he and the FBI really did think I was Coral's hit man, I introduced myself as a reporter. Hall eyed me cautiously.

"Why would the Mercury News be interested in this case?" he asked. "You should have been here two years ago. This is old stuff now."

I considered tap dancing around his question. Normally I didn't tell people what I was working on, because then they didn't know what not to say. But I decided to hit Hall with it head-on and see what kind of reaction I got. It would probably be the last thing he'd expect to hear.

"I'm not really doing a story on this case. I'm looking into one of the witnesses. A man named Blandon. Am I pronouncing the name correctly?"

Hall appeared surprised. "What about him?"

"About his selling cocaine for the Contras."

Hall leaned back slightly, folded his arms, and gave me a quizzical smile. "Who have you been talking to?"

"Actually, I've been reading. And I was curious to know what you made of his testimony about selling drugs for the Contras in L.A. Did you believe him?"

"Well, yeah, but I don't know how you could absolutely confirm it. I mean, I don't know what to tell you," he said with a slight laugh. "The CIA won't tell me anything."

I jotted down his remark. "Oh, you've asked them?"

"Yeah, but I never heard anything back. Not that I expected to. But that's all ancient history. You're really doing a story about that?"

"I don't know if I'm doing a story at all," I said. "At this point, I'm just trying to see if there is one. Do you know where Blandon is these days?"

"Not a clue."

That couldn't be true, I thought. How could he not know? He was one of the witnesses against Rafael Cornejo. "From what I heard," I told him, "he's a pretty significant witness in your case here. He hasn't disappeared, has he? He is going to testify?"

Hall's friendly demeanor changed. "We're not at all certain about that."

When I got back to Sacramento, I called my editor at the main office in San Jose, Dawn Garcia, and filled her in on the day's events. Dawn was a former investigative reporter from the San Francisco Chronicle and had been the Mercury's state editor for several years, overseeing our bureaus in Los Angeles, San Francisco, and Sacramento. We had a good working relationship and had broken a number of award-winning stories. Unlike many editors I'd worked with, Dawn could size up a story's news value fairly quickly.

I read her several portions of Blandon's grand jury testimony.

"Weren't there some stories about this back in the 1980s?" she asked.

"See, that's what I thought. I remember something, but I can't place the source."

"Maybe the Iran-Contra hearings?"

"I don't think so," I said. "I followed those hearings pretty closely. I don't remember anything about drug trafficking."

(Dawn's memory, it turned out, was better than mine. During one part of Oliver North's congressional testimony in July 1987, two men from Baltimore had jumped up in the audience with a large banner reading, "Ask about the cocaine smuggling." The men began shouting questions—"What about the cocaine dealing that the U.S. is paying for? Why don't you ask questions about dmg deliveries?"—as they were dragged from the room by the police.)

"So, what do you think?" she asked, editorese for "Is there a story here and how long will it take to get it?"

"I don't know. I'd like to spend a little time looking into it at least. Hell, if his testimony is true, it could be a pretty good story. The Contras were selling coke in L.A.? I've never heard that one before."

She mulled it over for a moment before agreeing. "It's not like there's a lot going on in Sacramento right now," she said. That was true enough. The sun- baked state capital was entering its summertime siesta, when triple-digit temperatures sent solons adjourning happily to mountain or seashore locales.

With any luck, I was about to join them.

"I need to go down to San Diego for a couple days," I said. "Blandon testified that he was arrested down there in '92 for conspiracy, so there's probably a court file somewhere. He may be living down there, for all I know. Probably the quickest way to find out if what he was saying is true is to find him."

Dawn okayed the trip, and a few days later I was in balmy San Diego, squinting at microfiche in the clerk's office of the U.S. District Court. I found Blandon's case file within a few minutes.

He and six others, including his wife, had been secretly indicted May 5, 1992, for conspiring to distribute cocaine. He'd been buying wholesale quantities from suppliers and reselling it to other wholesalers. Way up on the food chain. According to the indictment, he'd been a trafficker for ten years, had clients nationwide, and had bragged on tape of selling other L.A. dealers between two and four tons of cocaine.

He was such a big-timer that the judge had ordered him and his wife held in jail without bail because they posed "a threat to the health and moral fiber of the community."

The file contained a transcript of a detention hearing, held to determine if the couple should be released on bail. Blandon's prosecutor, Assistant U.S. Attorney L. J. O'Neale, brought out his best ammo to persuade the judge to keep the couple locked up until trial. "Mr. Blandon's family was closely associated with the Somoza government that was overthrown in 1979," O'Neale said. Blandon had been partners with a Jairo Meneses in 764 kilos of cocaine that had been seized in Nicaragua in 1991, O'Neale claimed, and he also owned hotels and casinos in Nicaragua with Meneses. He had a house in Costa Rica. He had a business in Mexico, relatives in Spain, phony addresses all over the United States, and "unlimited access to money."

"He is a large-scale cocaine trafficker and has been for a long time," O'Neale argued. Given the amount of cocaine he'd sold, O'Neale said, Blandon's minimum mandatory punishment was "off the charts"—life plus a $4 million fine—giving him plenty of incentive to flee the country.

Blandon's lawyer, Brad Brunon, confirmed the couple's close ties to Somoza and produced a photo of them at a wedding reception with El Presidente and his spouse. That just showed what fine families they were from, he said. The accusations in Nicaragua against Blandon, Brunon argued, were "politically motivated because of Mr. Blandon's activities with the Contras in the early 1980s."

Damn, here it is again. His own lawyer says he was working for the Contras.

Brunon argued that the government had no case against his client, and no right to keep him in jail until the trial. "There is not the first kilogram of cocaine that had been seized in this case," Brunon said. "What you have are accusations from a series of informants." But the judge didn't see it that way. While allowing Chepita to post bond, he ordered Danilo held without bail.

From the docket sheet, I could see that the case had never gone to trial.

Everyone had pleaded out, starting with Blandon. Five months after his arrest, he pleaded guilty to conspiracy, and the charges against his wife were dropped. After that, his fugitive codefendants were quickly arrested and pleaded guilty. But they all received extremely short sentences. One was even put on unsupervised probation.

I didn't get it. If O'Neale had such a rock-solid case against a major drug¬ trafficking ring, why were they let off so easily? People did more time for burglary. Even Blandon, the ringleader, only got forty-eight months, and from the docket sheet it appeared that was later cut almost in half.

As I read on, I realized that Blandon was already back on the streets—totally unsupervised. No parole. Free as a bird. He'd walked out of jail September 19, 1994, on the arm of an INS agent, Robert Tellez. He'd done twenty-eight months for ten years of cocaine trafficking.

The last page of the file told me why. It was a motion filed by U.S. Attorney O'Neale, asking the court to unseal Blandon's plea agreement and a couple of internal Justice Department memorandums. "During the course of this case, defendant Oscar Danilo Blandon cooperated with and rendered substantial assistance to the United States," O'Neale wrote. At the government's request, his jail sentence had been secretly cut twice. O'Neale then persuaded the judge to let Blandon out of jail completely, telling the court he was needed as a full-time paid informant for the U.S. Department of Justice. Since he'd be undercover, O'Neale wrote, he couldn't very well have probation agents checking up on him. He was released on unsupervised probation.

All of this information had once been secret, I noticed, but since Blandon was going to testify in a case in northern California (the Cornejo case, I presumed), O'Neale had to have the plea agreement and all the records relating to his sentence reductions unsealed and turned over to defense counsel.

I walked back to my hotel convinced that I was on the right track. Now there were two separate sources saying—in court—that Blandon was involved with the Contras and had been selling large amounts of cocaine in Los Angeles. And when the government finally had a chance to put him away forever, it had opened up the cell doors and let him walk. I needed to find Blandon. I had a million questions only he could answer.

I began calling the defense attorneys involved in the 1992 conspiracy case, hoping one of them would know what had become of him. I stmck out with every call. One of the lawyers was out of town. The rest of them remembered next to nothing about the case or their clients. "It was all over so quickly I barely had time to open a file," one said. The consensus was that once Blandon flipped, his compadres scrambled to get the best deal they could, and no one prepared for trial. Discovery had been minimal.

But one thing wasn't clear. What had the government gotten out of the deal that was worth giving Blandon and his crew such an easy ride? O'Neale claimed he'd given information about a murder in the Bay Area, but from what I could see from his DEA and FBI interviews, he'd merely told the government that the man had been murdered—something the police already knew.

Back in Sacramento, I did some checking on the targets of the 1994 grand jury investigation—the Meneses family—and again my tipster's description proved accurate, perhaps even understated. I found a 1991 story from the San Francisco Chronicle and a 1986 San Francisco Examiner piece that strongly suggested that Meneses, too, had been dealing cocaine for the Contras during the 1980s. One of the stories described him as the "king of cocaine in Nicaragua" and the Cali cartel's representative there. The Chronicle story mentioned that a U.S. Senate investigation had run across him in connection with the Contras and allegations of cocaine smuggling.

That must have been where I heard about this Contra drug stuff before, I decided. A congressional hearing.

At the California State Library's Government Publications Section, I scoured the CIS indices, which catalog congressional hearings by topic and witness name. Meneses wasn't listed, but there had been a series of hearings back in 1987 and 1988, I saw, dealing with the issue of the Contras and cocaine: a subcommittee of the Senate Foreign Relations Committee, chaired by Senator John Kerry of Massachusetts.

For the next six days I sat with rolls of dimes at a microfiche printer in the quiet wood-paneled recesses of the library, reading and copying many of the 1,100 pages of transcripts and exhibits of the Kerry Committee hearings, growing more astounded each day. The committee's investigators had uncovered direct links between drug dealers and the Contras. They'd gotten into BCCI years before anyone knew what that banking scandal even was. They'd found evidence of Manuel Noriega's involvement with drugs—years before the invasion. Many of the Kerry Committee witnesses, I noted, later became U.S. Justice Department witnesses against Noriega.

Kerry and his staff had taken videotaped depositions from Contra leaders who acknowledged receiving drug profits, with the apparent knowledge of the CIA. The drug dealers had admitted—under oath—giving money to the Contras, and had passed polygraph tests. The pilots had admitted flying weapons down and cocaine and marijuana back, landing in at least one instance at Homestead Air Force Base in Florida. The exhibits included U.S. Customs reports, FBI reports, internal Justice Department memos. It almost knocked me off my chair.

It was all there in black and white. Blandon's testimony about selling cocaine for the Contras in L.A. wasn't some improbable fantasy. This could have actually happened.

I called Jack Blum, the Washington, D.C., attorney who'd headed the Kerry investigation, and he confirmed that Norwin Meneses had been an early target. But the Justice Department, he said, had stonewalled the committee's requests for information and he had finally given up trying to obtain the records, moving on to other, more productive areas. "There was a lot of weird stuff going on out on the West Coast, but after our experiences with Justice. . .we mainly concentrated on the cocaine coming into the East."

"Why is it that I can barely remember this?" I asked. "I mean, I read the papers every day."

"It wasn't in the papers, for the most part. We laid it all out, and we were trashed," Blum said. "I've got to tell you, there's a real problem with the press in this town. We were totally hit by the leadership of the administration and much of the congressional leadership. They simply turned around and said, 'These people are crazy. Their witnesses are full of shit. They're a bunch of drug dealers, drug addicts, don't listen to them.' And they dumped all over us. It came from every direction and every corner. We were even dumped on by the Iran- Contra Committee. They wouldn't touch this issue with a ten-foot pole."

"There had to have been some reporters who followed this," I protested. "Maybe I'm naive, but this seems like a huge story to me."

Blum barked a laugh. "Well, it's nice to hear someone finally say that, even if it is ten years later. But what happened was, our credibility was questioned, and we were personally trashed. The administration and some people in Congress tried to make us look like crazies, and to some degree it worked. I remember having conversations with reporters in which they would say, 'Well, the administration says this is all wrong.' And I'd say, 'Look, the guy is going to testify to X, Y, and Z. Why don't you cover the fucking hearing instead of coming to me with what the administration says?' And they'd say, 'Well, the guy is a drug dealer. Why should I do that?' And I used to say this regularly: 'Look, the minute I find a Lutheran minister or priest who was on the scene when they were delivering 600 kilos of cocaine at some air base in Contra-land, I'll put him on the stand, but until then, you take what you can get.' The big papers stayed as far away from this issue as they could. It was like they didn't want to know."

There were two reporters, Blum said, who'd pursued the Contra drug story— Robert Parry and Brian Barger of the Associated Press—but they'd run into the same problems. Their stories were either trashed or ignored. There were also two reporters in Costa Rica—a New York Times stringer named Martha Honey and her husband, Tony Avirgan, an ABC cameraman, who had gone after the story as well, he said. Honey and Avirgan wound up being set up on phony drug charges in Costa Rica, spied on in the States by the FBI and former CIA agents, smeared, and ruined financially.

"I know Bob Parry is still here in Washington somewhere. He did the first stories and was one of the few who seemed to know what he was doing. You might want to talk to him," Blum suggested.

Parry sounded slightly amused when I called him in Virginia. "Why in the world would you want to go back into this?" he asked. I told him of my discoveries about Meneses and Blandon, and the latter's cocaine sales in Los Angeles. I wondered if he or anyone else had ever reported this before.

"Not that I'm aware of," Parry said. "We never really got into where it was going once the cocaine arrived in the United States. Our stories dealt mainly with the Costa Rican end of things. This is definitely a new angle. You think you can show it was being sold in L.A.?"

"Yeah, I do. Well, one of the guys has even testified to it before a grand jury. But this is an area I've never done any reporting on before so I guess what I'm looking for is a little guidance," I told him. "Have you got any suggestions?"

There was a short silence on the other end of the phone. "How well do you get along with your editors?" Parry finally asked.

"Fine. Why do you ask?"

"Well, when Brian and I were doing these stories we got our brains beat out." Parry sighed. "People from the administration were calling our editors, telling them we were crazy, that our sources were no good, that we didn't know what we were writing about. The Justice Department was putting out false press releases saying there was nothing to this, that they'd investigated and could find no evidence. We were being attacked in the Washington Times. The rest of the Washington press corps sort of pooh-poohed the whole thing, and no one else would touch it. So we ended up being out there all by ourselves, and eventually our editors backed away completely, and I ended up quitting the AP. It was probably the most difficult time of my career."

He paused. "Maybe things have changed, I don't know."

I was nonplussed. Bob Parry wasn't some fringe reporter. He'd won a Polk Award for uncovering the CIA assassination manual given to the Contras, and was the first reporter to expose Oliver North's illegal activities. But what he'd just described sounded like something out of a bad dream. I told him I didn't think that would be a problem at the Mercury. I'd done some controversial stories before, but the editors had stood by them, and we'd won some significant awards. I felt good about the paper, I told him.

"One place you might try is the National Archives," Parry offered. "They're in the process of declassifying Lawrence Walsh's files, and I've found some pretty remarkable things over there. It's a long shot, but if I were you, I'd file a FOIA for the men you mentioned and see if anything turns up."

It was a long shot, but Parry's hunch paid off. My Freedom of Information Act request produced several important clues, among them a 1986 FBI report about Blandon that alluded to a police raid and reported that Blandon's attorney, Brad Brunon, had called the L.A. County Sheriff's Office afterward and claimed that the CIA had "winked" at Blandon's activities. I also obtained 1987 FBI interviews with a San Francisco Contra supporter, Dennis Ainsworth, in which he told of his discovery that Norwin Meneses and a Contra leader named Enrique Bermudez were dealing arms and drugs.

I tracked down Ainsworth and had another disconcerting conversation. You've got to be crazy, he said. He'd tried to alert people to this ten years ago, and it had ruined his life. "Nobody in Washington wanted to look at this. Republican, Democrat, nobody. They wanted this story buried and anyone who looked any deeper into it got buried along with it," Ainsworth said. "You're bringing up a very old nightmare. You have no idea what you're touching on here, Gary. No idea at all."

"I think I've got a pretty good idea," I said.

"Believe me," he said patiently, "you don't understand. I almost got killed. I had friends in Central America who were killed. There was a Mexican reporter who was looking into one end of this, and he wound up dead. So don't pretend that you know."

"If the Contras were selling drugs in L.A., don't you think people should know that?"

Ainsworth laughed. "L.A.? Meneses was selling it all over the country! Listen, he ran one of the major distributions in the U.S. It wasn't just L.A. He was national. And he was totally protected."

"I think that's the kind of thing the public needs to know about," I told him. "And that's why I need your help. You know a lot more about this topic than I do."

He was unmoved. "Look, when I was trying to tell Congress, I was getting death threats. And you're asking, you know, if I'm Jewish, would I like to go back and spend another six months in Dachau? Leave this alone. Take my advice. You can go on and write a lot of other things and maybe win a Pulitzer Prize, but all you're going to be after this is over is a persona non grata. Please. Everyone's forgotten about this and moved on with their lives."

A few days later I got a call from Cornejo's girlfriend. My one chance to hook up with Blandon had just fallen through. "He isn't going to be testifying at Rafael's trial after all," she told me. "Rafael's attorney won his motion to have the DEA and FBI release the uncensored files, and the U.S. attorney decided to drop him as a witness rather than do that. Can you believe it? He was one of the witnesses they used to get the indictment against Rafael, and now they're refusing to put him on the stand."

I hung up the phone in a funk. Without him, I didn't have much to go on. But there was always his boss—this Meneses fellow. Getting to him was a tougher nut to crack, but worth a shot. The girlfriend said she thought he was in jail in Nicaragua, and the Chronicle clip I'd found noted that he'd been arrested there in 1991. Maybe, I hoped, the Nicaraguans locked their drug lords up longer than we did. I was put in touch with a freelance reporter in Managua, Georg Hodel, an indefatigable Swiss journalist who spoke several languages and had covered Nicaragua during the war. He taught college journalism classes, knew his way around the Nicaraguan government, and had sources everywhere. Better yet, with his Swiss-German-Spanish accent, it was like talking to Peter Lorre. I persuaded Dawn to hire Georg as a stringer, and he set off to find Meneses.

Meanwhile, the San Diego attorney who had been out of town when I was looking for Blandon returned my call. Juanita Brooks had represented Blandon's friend and codefendant, a Mexican millionaire named Sergio Guerra. Another lawyer in her firm had defended Chepita Blandon. She knew quite a bit about the couple.

"You don't happen to know where he is these days, do you?"

"No, but I can tell you where he'll be in a couple of months. Here in San Diego. Entirely by coincidence, I have a case coming up where he's the chief prosecution witness against my client."

"You're kidding," I said. "What case is this?"

"It's a pretty big one. Have you ever heard of someone named Freeway Ricky Ross?"

Indeed I had. I'd run across him while researching the asset forfeiture series in 1993. "He's one of the biggest crack dealers in L.A.," I said.

"That's what they say," Brooks replied. "He and my client and a couple others were arrested in a DEA reverse sting last year and Blandon is the Cl [confidential informant] in the case."

"How did Blandon get involved with crack dealers?"

"I don't have a lot of details, because the government has been very protective of him. They've refused to give us any discovery so far," Brooks said. "But from what I understand, Blandon used to be one of Ricky Ross's sources back in the 1980s, and I suppose he played off that friendship."

My mind was racing. Blandon, the Contra fund-raiser, had sold cocaine to the biggest crack dealer in South Central L.A.? That was too much.

"Are you sure about this?"

"I wouldn't want you to quote me on it," she said, "but, yes, I'm pretty sure. You can always call Alan Fenster, Ross's attorney, and ask him. I'm sure he knows."

Fenster was out, so I left a message on his voice mail, telling him I was working on a story about Oscar Danilo Blandon Reyes and wanted to interview him. When I got back from lunch, I found a message from Fenster waiting. It said: "Oscar who?"

My heart sank. I'd suspected it was a bum lead, but I'd been keeping my fingers crossed anyway. I should have known; that would have been too perfect. I called Fenster back to thank him for his time, and he asked what kind of a story I was working on. I told him—the Contras and cocaine.

"I'm curious," he said. "What made you think this Oscar person was involved in Ricky's case?"

I told him what Brooks had related, and he gasped.

"He's the informant? Are you serious? No wonder those bastards won't give me his name!" Fenster began swearing a blue streak.

"Forgive me," he said. "But if you only knew what kind of bullshit I've been going through to get that information from those sons of bitches, and then some reporter calls me up from San Jose and he knows all about him, it just makes me --"

"Your client didn't tell you his name?"

"He didn't know it! He only knew him as Danilo, and then he wasn't even sure that was his real name. You and Ricky need to talk. I'll have him call you." He hung up abruptly.

Ross called a few hours later. I asked him what he knew about Blandon. "A lot," he said. "He was almost like a godfather to me. He's the one who got me going."

"Was he your main source?"

"He was. Everybody I knew, I knew through him. So really, he could be considered as my only source. In a sense, he was."

"When was this?"

"Eighty-one or '82. Right when I was getting going."

Damn, I thought. That was right when Blandon said he started dealing drugs.

"Would you be willing to sit down and talk to me about this?" I asked.

"Hell, yeah. I'll tell you anything you want to know."

At the end of September 1995 I spent a week in San Diego, going through the files of the Ross case, interviewing defense attorneys and prosecutors, listening to undercover DEA tapes. I attended a discovery hearing and watched as Fenster and the other defense lawyers made another futile attempt to find out details about the government's informant, so they could begin preparing their defenses. Assistant U.S. Attorney O'Neale refused to provide a thing. They'd get what they were entitled to, he promised, ten days before trial.

"See what I mean?" Fenster asked me on his way out. "It's like the trial in Alice in Wonderland."

I spent hours with Ross at the Metropolitan Correctional Center. He knew nothing of Blandon's past, I discovered. He had no idea who the Contras were or whose side they were on. To him, Danilo was just a nice guy with a lot of cheap dope.

"What would you say if I were to tell you that he was working for the Contras, selling cocaine to help them buy weapons and supplies?" I asked.

Ross goggled. "And they put me in jail? I'd say that was some fucked-up shit there. They say I sold dope all over, but man, I know he done sold ten times more than me. Are you being straight with me?"

I told him I had documents to prove it. Ross just shook his head and looked away.

"He's been working for the government the whole damn time," he muttered.
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Fri Feb 13, 2026 11:37 pm

"A Pretty secret kind of thing"

In July 1979, as his enemies massed in the hills and suburbs of his doomed capital, the dictator huddled in his mountainside bunker with his aides and his American advisers and cursed his rotten luck.

For the forty-six years that Anastasio Somoza's family had ruled the Republic of Nicaragua, the Somozas had done nearly everything the U. S. government asked. No after all his hard work, the Americans wanted him to disappear. Somoza could barely believe it. He was glad he had his tape recorder going, so history could bear witness to his cruel betrayal.

"I have thrown many people out of their natural habitat because of the U.S., fighting for your cause... so let's talk like friends," Somoza told U.S. ambassador Lawrence Pezzullo. "I threw a goddamned Communist out of Guatemala," he reminded the ambassador, referring to the role the Somoza family had played in the CIAs overthrow of a liberal Guatemalan government in 1954. "I personally worked on that."

When the CIA needed a secret base to prepare for the Bay of Pigs invasion, Somoza couldn't have been a more gracious host. "The U.S. called me, and I agreed to have the bombers leave here and knock the hell out of the installations in Cuba," Somoza stormed, "like a Pearl Harbor deal." In 1965 he'd sent troops into the Dominican Republic to help the United States quell another leftist uprising. Hell, he'd even sent Nicaraguans off to fight in Vietnam.

And now, when Somoza needed help, when it was his soldiers who were locked in a life-and-death struggle with Communist aggressors, the Americans were selling him out—all because of some nonsense about human rights violations by his troops.

"It is embarrassing for you to be good friends with the Somozas," the dictator told Pezzullo sarcastically. Somoza then tried his trump card: If he went, the Nicaraguan National Guard, the Guardia, would surely be destroyed. The Guardia, as corrupt and deadly an organization as any in Central America, served as Somoza's military, his police, and his intelligence service.

Somoza knew the Americans would be loath to let their investment in it go to waste. They had created the Guardia in the 1930s and nurtured it carefully since, spending millions of dollars a year supplying weapons and schooling its officers in the complex arts of anticommunism.

"What are you going to do with the National Guard of Nicaragua?" Somoza asked Pezzullo. "I don't need to know, but after you have spent thirty years educating all of these officers, I don't think it is fair for them to be thrown to the wolves. . .. They have been fighting Communism just like you taught them at Fort Gulick and Fort Benning and Leavenworth—out of nine hundred officers we have, eight hundred or so belong to your schools."

Pezzullo assured Somoza that the United States was "willing to do what we can to preserve the Guard." Putting aside its international reputation for murder and torture, Pezzullo recognized that the Guardia was a bulwark against anti- American interests and, as long as it existed, could be used to keep Somoza's successors—whoever they might be—in line. "We are not abandoning the Guard," he insisted. "We would like to see a force emerge here that can stabilize the country." But for that to happen, Pezzullo said, Somoza and his top generals needed to step down and give the Guardia "a clean break" from its bloodstained past—before the Sandinistas marched in and it became too late to salvage anything. "To make the break now. It is a hell of a mess," Pezzullo said sympathetically. "Just sitting here talking to you about it is strange enough. We are talking about a break."

Somoza knew the game was over. "Let's not bullshit ourselves, Mr. Ambassador. I am talking to a professional. You have to do your dirty work, and I have to do mine."

In the predawn hours of July 17, 1979, Somoza and his closest associates— his top generals, his business partners, and their families—boarded two jets and flew to Homestead Air Force Base in Florida to begin a vagabond exile. The vaunted National Guard collapsed within hours.

Sandinista columns swarmed into the defenseless capital, jubilantly proclaiming an end to both the Guardia —which had hunted the rebels mercilessly for more than a decade—and Somoza. Those National Guard officers who could escape poured across the borders into El Salvador, Honduras, and Costa Rica, or hid inside the Colombian embassy in Managua. Those who couldn't, wound up in prison, and occasionally before firing squads.

Nine days after Somoza and his cronies were overthrown, a handful of congressmen gathered in a hearing room in the Rayburn House Office Building in Washington, D.C., to discuss some disturbing activities in Latin America. Though what had happened in Nicaragua was on everyone's mind in the nation's capital that week, these particular lawmakers had concerns that lay farther to the south: in Colombia, in Bolivia, and in Peru.

They were worried about cocaine. The exotic South American drug seemed to be winning admirers everywhere. References were turning up in movies, songs and newspaper stories, and surprisingly, many of them were positive. To Republican congressman Tennyson Guyer, an elderly former preacher and thirty- third-degree Mason from Findlay, Ohio, it seemed like the media was hell-bent on glamorizing cocaine.

Guyer, an ultraconservative fond of loud suits and white patent leather shoes, was the chairman of the Cocaine Task Force of the House Select Committee on Narcotics Abuse and Control, and he wasn't just going to stand by and watch.

"Recent developments concerning the state of cocaine have come to my attention, which call for decisive and immediate action!" Guyer thundered as he opened his cocaine hearings in July 1979. "The availability, abuse, and popularity of cocaine in the United States has reached pandemic proportions. . .. This is a drug which, for the most part, has been ignored, and its increased use in our society has caught us unprepared to cope effectively with this menace."

But if Guyer was feeling menaced by cocaine, not too many others were.

Many Americans who'd grown up during the drug-soaked 1960s reasoned that an occasional sniff of the fluffy white powder was no more menacing than a couple of martinis—and considerably more chic. Cocaine didn't give you a hangover. It didn't scramble your brains. Many doctors believed you couldn't get hooked on it. It made you feel great. It kept the pounds off. And there was a definite cachet associated with using it. Just the price of admission to Club Cocaine was enough to keep out the riffraff. At $2,500 an ounce and up, it was a naughty pleasure reserved for a special few: the "so-called elites" and the "intellectual classes," as Guyer derisively termed them.

Even the paraphernalia associated with the drug—sterling silver cocaine spoons and tightly rolled $100 bills—carried an aura of decadence. In the public's mind, cocaine was associated with fame and fortune.

"The rediscovery of cocaine in the Seventies was unavoidable," a Los Angeles psychologist gushed to a convention of drug experts in 1980, "because its stimulating and pleasure-causing properties reinforce the American character, with its initiative, its energy, its restless activity and its boundless optimism."

While the street corners played host to lowbrow and much more dangerous drugs—angel dust, smack, meth—coke stayed up in the penthouses, nestled in exquisitely carved bowls and glittering little boxes. It came out at private parties, or in the wash rooms of trendy nightclubs. Unless some celebrity got caught with it by accident, street cops almost never saw the stuff.

"My first ten years as a narcotics agent, my contact with cocaine was very minimal," recalled Jerald Smith, who ran the San Francisco office of the California Bureau of Narcotics Enforcement during the 1980s. "As a matter of fact, the first few years, the only cocaine I ever saw was an ounce some guy would take around as a training aid to teach you what it looked like. Because it was something you saw so rarely. Our big thing[s] in those days were pills and heroin and marijuana."

But if Reverend Guyer thought the experts he'd summoned to Washington were going to help him change the public's mind about cocaine sniffing, he was badly mistaken. Witness after witness trooped up to the microphone to tell Congress that cocaine was not only a relatively safe drug but so rare that it could hardly be called a nuisance, much less the "menace" Guyer was advertising.

"Daily cocaine use is extremely uncommon, simply because of the high cost," testified Robert C. Petersen, assistant director of research for the National Institute on Drug Abuse. "Under present conditions of use, it has not posed a very serious health problem for most. Rarely does it cause a problem."

Lee I. Dogoloff, the White House's drug expert, concurred. "It is our assumption," he said, "that the current relatively low level of health problems associated with cocaine use reflects the relatively high price and relatively low availability of the substance."

To make the point, the head of the Drug Enforcement Administration, Peter Bensinger, told the committee he had brought $800,000 worth of cocaine to show them. He pulled out a little bag and dangled it before his rapt audience.

"That is simulated, I trust?" Guyer inquired.

"No, that is actual coca," Bensinger replied. A sample, he said, of seized contraband.

"I can't believe you are holding almost $1 million there!" Guyer sputtered. "We ought to have security in the hearing room!"

"We have some special agents in the room, I assure you," Bensinger said.

The experts were careful to note that if cocaine became cheaper, it would be more widely available and might pose a bigger problem than anyone realized, but no one seemed to think there was much chance of that happening. Most of the smugglers, Bensinger said, were just bringing amounts small enough to put in a suitcase or stash on their body. "We don't think people are bringing cocaine across the border, to a large extent, in a car from Mexico." He recommended that Congress, instead of trying to prevent the drug from coming in over the borders, concentrate its efforts on getting the Peruvians and Bolivians to stop growing coca plants.

Dr. Robert Byck, a drug expert from Yale University, sat in the audience listening patiently to the testimony all day. When it was Byck's turn to speak, Guyer warmly welcomed him up to the witness table, complimenting him on his "very, very impressive" academic and professional credentials.

Byck thanked Guyer and then politely ripped into the federal government for spreading misinformation about the drug. "What I would like to talk to you about for the most part is the importance of telling the truth," Byck, a professor of psychiatry and pharmacology at Yale Medical School, began. The truth was that cocaine wasn't the horrible health hazard Americans were being told it was. "Cocaine doesn't have the kind of health consequences that one sees with drugs such as alcohol and cigarettes. Right now, if we look at the hospital admission records and death records, cocaine doesn't look like a dangerous drug. . .. We have given a great deal of cocaine to many individuals and find it to be a most unremarkable drug. We are giving cocaine by nose to normal young men. When anyone visits our laboratory, they look at the TV screen and say, 'That guy took cocaine?' They don't jump around, they don't get excited; they sit calmly and experience a drug high and don't become dangerous."

"What about five years later?" Guyer cried. "Are the membranes and so on not affected at all?"

"The damage to people's membranes is quite rare with cocaine. It does occur, but it is a rare phenomenon," Byck answered. "Part of this is because people don't use very much cocaine. It is expensive. Tell me the last alcoholic you saw with cirrhosis of the liver when cirrhosis was caused by Dom Perignon. You almost never see it."

As most Americans were using it, Byck said, cocaine "is a very safe drug. You almost never see anesthetic death due to cocaine. There have been a series of 14,000 consecutive doses of cocaine given with no deaths. Deaths from cocaine are very, very rare. They do occur, and I think it is important to recognize that they occur. But actually, the drug, in terms of the risk of killing people, is comparatively safe. If you want a dangerous drug, take digitalis or digoxin. ... It is a heart drug. And that is really deadly, one of the deadliest poisons known."

"But that is used to save lives," Guyer countered.

"Yes, it is used to save lives," Byck said. "Cocaine is also used medically. So you cannot take whether or not something can kill you as a measure of dangerousness."

What the government was doing with its scare campaigns about cocaine, Byck complained, was poisoning the well. It was mining the government's credibility with the public, just when the government needed its credibility to be impeccable. "I think we make a mistake when we say that snorting cocaine every once in a while is a dangerous habit and is going to kill people, because it does not," Byck said flatly. "There are a great many people around who have been snorting cocaine and know that their friends haven't gotten into trouble. If you then tell those people that cocaine is very dangerous, they won't believe it. Then, when you get to the next step—when you are talking about something that is really dangerous—they are not going to believe you the second time." And that brought Byck to the real reason he was in Washington on a humid day in late July.

He was there to deliver a warning from the scientific community.

Something bad was coming, Byck knew, something so deadly awful that the only way to prevent a catastrophe was for the government to tell the truth, and pray to God that it was believed. "I think we have to be careful that the government is believed about cocaine, because there are dangers associated with the drug," Byck said vaguely. "These dangers are not particularly associated with the present use pattern."

Byck told the committee that he'd hesitated for a long time about coming forward with the information and was still reluctant to discuss the matter in a public hearing. "Usually when things like this are reported, the media advertises them, and this attention has been a problem with cocaine all along."

Chairman Guyer, who'd spent two decades as a public relations man for an Ohio tire company, told Byck to spit it out. "[The purpose of our panel] is to bring into the open what has been, up to now, a pretty secret kind of thing."

The information Byck had was known to only a handful of drug researchers around the world. And it was as frightening a spectacle as any they'd ever seen.

For about a year, a Peruvian police psychiatrist named Dr. Raul Jeri had been insisting that wealthy drug users in Lima were being driven insane by cocaine. A psychiatrist in Bolivia, Dr. Nils Nova, began making similar claims shortly thereafter. Their reports, written in Spanish and published in obscure medical journals, went largely unnoticed in the United States because, frankly, they sounded so weird.

The first problem was that all of recorded history was against them. Peru and Bolivia had been producing cocaine products for thousands of years, with few reports of the drug causing serious medical effects. At the same time, some of America's leading researchers were claiming that cocaine was nonaddictive and perhaps should be legalized.

Jeri, a professor of clinical neurology at the National University of San Marcos, claimed a cocaine "epidemic" had swept through Lima's fashionable neighborhoods in 1974 and spread like a grass fire to Peru's other major cities: Piura, Trujillo, Chiclayo, Chimbote, Huaraz, lea, Arequipa, and Cuzco. Within two years, he said, the alleged epidemic had engulfed Ecuador and Bolivia.

No one had heard of anything like it before. It also didn't help that the psychiatrists' studies read like the script of Reefer Madness, painting scenes of jails and insane asylums filling up with legions of half-mad drug fiends.

"When seen, these patients were generally very thin, unkempt, pale and looking suspiciously from one side to the other," Jeri wrote. "These movements were associated. . .with visual hallucinations (shadows, light or human figures) which they observed in the temporal fields of vision." Many of the patients bore scratches from trying to dig out the hallucinations they felt crawling under their skin, and they claimed they were being "followed by persons or shadows that seemed to want to catch, attack, or kill them. . .three patients died in this series, two by acute intoxication and one by suicide."

It wasn't a new dmg that was causing this reaction, Jeri and Noya reported, but a new trick from an old dog. Instead of sniffing tiny crystals of cocaine up their nose, as Americans were doing, the Peruvians and Bolivians were smoking a paste known variously as pasta basica de cocaina, base, or basuco. It was all the same thing—the gooey mess that leached out of solvent-soaked coca leaves. Coca paste was an intermediate substance created on the way to manufacturing the white powder known to most cocaine users. People had started drying the paste, crumbling it into cigarettes, and smoking it.

For the serious drug abuser, paste's advantages over powder were enormous.

You could smoke as much as you wanted. With powder, only a small amount could be stuffed up one's nose, and it took time for the drug to kick in, because first it had to be absorbed by the nasal membranes. Eventually the nose got numb.  

Cocaine vapor, on the other hand, hit the vast surface area of the lungs immediately and delivered an instantaneous sledgehammer high. Users described the feeling as more intense than orgasm; some called it a "whole body orgasm." And there was no limit to the amount of vapor the lungs could process. Paste had the added advantage of being richer in actual cocaine than the powder commonly sold—40-85 percent as opposed to 12-20 percent—and was far cheaper. In terms of bang for the buck, it couldn't be beat.

"Many patients said they found no other drug as pleasurable as this one," Jeri wrote. "Paste was almost unknown six years ago. Now it is the main drug reported by patients who are admitted to psychiatric hospitals or drug treatment centers in Lima. There is no zone of this city where youngsters do not get together to smoke coca paste and where pushers do not sell the dmg in their own homes or in the street. They even come to the school entrances to do their business."

But there was a price to pay for such a blissful rush. The feeling lasted only a few minutes, and nirvana could only be reattained by another hit—quickly—or a crushing depression would follow, the devil's own version of the cocaine blues. It was a roller-coaster ride, and invariably the user couldn't keep up the pace.

Jeri was deeply troubled by his research, comparing paste smokers to those suffering from a malignant disease. "It is hard to believe to what extremes of social degradation these men may fall, especially those who were brilliant students, efficient professionals, or successful businessmen," he wrote. "These individuals became so dependent on the drug that they had practically no other interest in life."

The Bolivian psychiatrist Nils Noya claimed that the drug caused "irreversible brain damage" and wrote that cocaine smokers literally could not stop once they started. Some users, he reported, smoked sixty to eighty cocaine- laced cigarettes in a single session. Cocaine-smoking parties would go on for days, ending only when the supplies dried up or the smokers passed out. "Immediately after smoking a cigarette, they have diarrhea," Nova said in a 1978 interview. "I mean immediately But the worst part is they have to go on smoking until they finish the box [of paste]."

Jeri wrote that cocaine smoking was largely confined to Peru, Bolivia, Ecuador, and Colombia, but there were ominous signs that it was moving northward. "We do not know if coca paste has been introduced to America, but Panamanian authorities have reported heavy transportation of coca paste by American and Peruvian citizens," Jeri wrote in 1979, citing an unpublished Panamanian police report.

Byck, who among other things had collected and edited Sigmund Freud's cocaine papers, had been skeptical of the South American reports until he sent one of his students down to Peru on a summer project. In the spring of 1978 a first-year Yale med student named David Paly came to Byck with an idea the scientist found intriguing: Paly wanted to measure the blood plasma levels of Peru's coca-leaf-chewing Indians to see what it was that got the Indians high. Plenty had been written about the cultural aspects of the habit, Paly told Byck, but no one had ever done any real experiments to see what it was that the leaf put in the Indians' bloodstream, and how much of it got there.

Paly, who had in interest in Peru from earlier travels there, said he "dreamed up" the project in order to start work on his thesis. "It was a fairly rudimentary proposal, but Yale has a thesis requirement for an M.D.—it's the only medical school in the country that does—so you have to start a proposal early in your career."

Coincidentally, Byek had recently gotten a letter from a prominent Peruvian neurosurgeon, Dr. Fernando Cabieses, who proposed some cooperative research on cocaine. At the time, the Peruvian government was cracking down on coca chewing and Cabieses believed the Indians were being harassed unfairly. He was looking for some scientific evidence to back up his arguments that the Indians' social customs should be left alone. Both Byck and Cabieses liked Paly's idea, and the Pemvian agreed to provide the lab facilities, test subjects, transportation, and assistants.

Soon a delighted Paly was winging his way to South America to spend his summer among the Indians in the mountains of Pem. Cabieses squired the young Yalie around Lima and introduced him to his friends in the arts and sciences. One man Paly met through Cabieses was Dr. Raul Jeri, who latched onto him and began telling him of his research into cocaine smoking. Jeri, who was also a general in the Peruvian military police, insisted on showing Paly the wretched victims of this new drug habit he'd discovered. Mostly to humor his influential new acquaintance, Paly agreed to accompany Jeri to the psychiatric institute where Jeri worked as a consultant. Paly left the hospital more doubtful than before.

"I interviewed some of these quote unquote pastaleros, and to my mind, one of them was clearly schizophrenic," Paly said. "Another one appeared to be a poly-drug abuser. I mean this guy had done everything from Valium to Quaaludes. So I was very unimpressed when I went around with him that first time."

Reading Jeri's studies did nothing to enhance Paly's opinion, either. They "were mainly observational and not very scientific," he said. It wasn't until Paly began making friends in Lima that he started changing his mind about the insistent general's work.

"I began to hear. . .about their friends who were dropping out of medical school and dropping out of college and basically turning into raging cocaine addicts," Paly recalled. "They were good kids who had essentially abandoned their lives and turned into wildly addicted base smokers. They were stealing from their grandmothers and doing all the kinds of things that you would associate with a heroin addict. . .and there were thousands of them."

On motorcycle trips through Lima with his friends, Paly said, he'd "drive down these streets and the places would stink of cocaine. They would stink of it. You'd come around a corner and you could smell it for miles. It has a very characteristic, sweet odor. And these weren't slums either. These were middle- class neighborhoods that my friends had grown up in, and now their friends were hanging out in the middle of the street, gaunt, and totally strung out."

Alarmed, Paly called Byck at Yale and told him what he'd seen. "The substance of my conversation with Byck, if I remember correctly, was that if this shit ever hits the U.S., we're in deep trouble."

Said Byck, "I remember the phone call very vividly. He said something was going on down there, and I told him to get some bloods [samples] and bring them back with him." Paly drew blood samples from random smokers and had them analyzed at the Laboratories of Clinical Psychopharmacology at Yale that fall.

"Peter Jatlow, who was the lab director, said they had the highest plasma levels of cocaine that he'd ever seen in someone who wasn't dead," Paly recalled. "If the average experimental plasma level they were getting in the lab from ingesting—snorting—cocaine was 100 [nanograms per mil], these—these were in the thousands."

Byck quickly got some federal grant money and sent Paly back to Lima to do some controlled experiments on cocaine smokers. Jeri, with his police connections, obtained the necessary permits and approvals, procured a half-kilo of coca paste and some cocaine smokers, and allowed Paly to bring them all to a room at the Peruvian Museum of Health Sciences. Most of them were young men in their twenties. Paly put on some music, served food and refreshments, and then brought out a box of coca paste.

"All subjects, calm while sitting in the room before the experiment, became markedly anxious as the box containing the paste was brought into the room," Paly wrote. "This nervousness became pronounced as they were preparing their first cigarettes and was evidenced by shaky hands and extremely sweaty palms and foreheads. This nervousness was borne out by the high blood pressure and heart rates taken immediately before smoking. This anxiety reaction is common to most experienced cocaine smokers and will often be brought on by the mere thought of smoking."

Paly was both fascinated and repelled. "It was Pavlovian," he said. "It was just unbelievable. Some of these kids, in the lab, would smoke twenty grams of paste and then, after you had paid them for their time, they would run out on the street with the money and buy more."

While Paly was running his experiments in Peru, further evidence was emerging in the United States that Raul Jeri's laughable predictions of a North American "cocaine invasion" were right on the mark. In February 1979 a psychologist from UCIA, Ronald K. Siegel, had a letter printed in the prestigious New England journal of Medicine warning of "a growing trend" toward cocaine smoking in the western United States. Siegel, who'd been researching cocaine use in the Los Angeles area since the early 1970s, was a well-known drug expert who had become something of a media darling, always ready with a good quote for reporters wanting the inside scoop on the latest drug craze in La-La Land.

Siegel had started a pioneering research project in 1975 by taking out newspaper ads seeking longtime cocaine users. L.A. being L.A., he got plenty of responses. He selected ninety-nine cocaine users, mostly young males, and proposed keeping in touch with them over the next four years so he could monitor the results of constant, long-term cocaine use.

His findings were great news for cokeheads. Not only did cocaine make you feel good, Siegel reported, but it had very few adverse psychological effects, and as a bonus, it helped you lose weight. "By the end of the study, approximately 38% of the subjects had shown increased elevation of the Euphoria Scale, indicating increased happiness and contentment with life," Siegel wrote. Only 5 percent of the subjects reported psychological problems, such as suspiciousness or paranoia, and Siegel dismissed those complaints as hypochondria or "perceptual" disturbances.

"Taken together, individuals reported experiencing some positive effects in all intoxications and negative effects in only 3% of the intoxications," he wrote. Even those negative effects "were usually of short duration and infrequent occurrence." All in all, Siegel concluded, the long-term negative effects of cocaine use "were consistently overshadowed by the long-term positive benefits."

There was, however, a curious footnote to Siegel's study, which the psychologist mentioned in passing. Over the course of his study, which ran from 1975 to 1978, six of the original ninety-nine cocaine users had become confirmed cocaine smokers, puffing something known on the streets as "freebase." Siegel was sufficiently intrigued to perform some cocaine-smoking experiments on monkeys, discovering that three out of three apes, given a choice between smoking lettuce or cocaine, clearly-preferred coke.

So when Siegel read Jeri's reports about the cocaine smoking epidemic in South America, he realized the Peruvian was wrong about one thing: the habit wasn't confined to South America anymore. It had already planted its seeds in L.A. and was starting to pop up in other cities as well, building a devoted following among certain circles of rich drug users. Worse, Yankee ingenuity had already been at work, improving upon the deadly product, making it easier to use and more appealing to refined American tastes.

The substance Jeri's subjects were using, coca paste, came mostly from the jungle cocaine-processing labs that dotted Peru and Bolivia. Paste was an ugly gray glob laden with residues of the toxic solvents used to extract it from the coca leaves—kerosene, acid, and other chemicals.

Some analyses had even found brick dust and leaded gasoline in it. Paste was hardly ever sold in the United States.

What Americans got for their drug dollars was the finished product, the sparkling white crystals of cocaine hydrochloride powder. But cocaine powder was made to be snorted. It was extremely difficult to smoke because of its high boiling point. So what was it that Siegel's patients were using, this cocaine they called "freebase"?

Siegel learned that it was cocaine powder that had been reverse-engineered to become smokable again. He traced the discovery of the process to the San Francisco Bay Area in January 1974, around the time that coca paste smoking had started becoming popular in Peru. According to Siegel, California cocaine traffickers who were journeying to Peru and Colombia for their wares "heard of the people down there smoking base." Though the Colombians were referring to coca paste, Siegel said, the Americans "mispronounced it, mistranslated the Spanish, and thought it was cocaine base. So they looked it up in the Merck Manual, saw cocaine base and said, 'Yeah, that's just the alkaloid of cocaine hydrochloride,' which is street cocaine."

By a relatively simple chemical process, Siegel said, the dealers took the powder and "removed the hydrochloride salt, thus freeing the cocaine base. Hence the expression 'freebasing.' That was something they could smoke, because it was volatile. And they were wowed by it when they smoked it." The traffickers "thought they were smoking base. They were not. They were smoking something that nobody else on the planet had ever smoked before."

By 1977, kits to extract freebase from cocaine powder were available commercially; ads were appearing in the underground press and in drug magazines. But since cocaine powder was so expensive, free-basing was a habit practiced only by a few rich drug dealers or avant garde celebrities. "They had very inefficient processes in those days and thought you needed large bags of cocaine to reduce to the cocaine freebase. So during the early years, only dealers and very wealthy users engaged in this," Siegel said.

Dr. Sidney Cohen, another California scientist who recognized the dangers of cocaine smoking early on, wrote in 1980 that the only good thing about freebase was that it was "the most expensive of all mood changers when price is measured against euphoria time. Affluent are the only ones who can afford it."

In December 1978, after comparing notes with Jeri, Siegel fired off his letter to the New England Journal of Medicine, alerting the medical profession that there were problems afoot. "Users are now experimenting with smoking cocaine alkaloid or base," he wrote. "Free-base parties have become increasingly popular and the practice has spread from California to Nevada, Colorado, New York, South Carolina and Florida."

Siegel's letter appeared in the Journal in February 1979. Five months later, in July, he, along with Paly, Byck, Jeri, and other cocaine researchers, found themselves together in Lima for an international symposium on cocaine. It was the first chance North American and South American drug researchers had had to compare notes and discuss their latest work.

While the experts split on what to do about powder cocaine, those who'd been studying cocaine smoking were unanimous about their findings: there was a monster loose, a drug capable of totally enslaving its user.

At the Lima conference, the stories continued to pour in. Two Bolivian psychiatrists from La Paz, Gregorio Aramayo and Mario Sanchez, told of seeing patients coming in for treatment in bare feet and borrowed clothes. "One of the patients said, 'This damn drug, doctor, I have had to sell even my clothes in order to buy it.'" Eighty percent of their patients, they reported, had committed "impulsive acts such as thefts, swindling, clothes-selling and others in order to buy more drug."

The Lima conference had taken place only two weeks before Byck appeared in Washington, and the stories he'd heard were fresh in his mind as he sat before Guyer's committee and listened to America's drug experts pooh-pooh the dangers of cocaine.

Once, Byck testified, he was in their camp. No longer. "I have come to the absolute, clear conclusion that it should not be legalized under any circumstances," he said. Cocaine smoking "can represent the same threat that the speed epidemics of the 1960's represented in their time. . .. We are on the verge of a dangerous drug use phenomenon."

Byck also wasn't the only American scientist who attended the Lima conference and came back alarmed. "The impact of these experiences was impressive, and observers from the National Institute on Drug Abuse (NIDA), the White House, and the Department of State reported on the growing problem in South America when they returned to the U.S.," said a 1982 study. Two of those observers, from NIDA and the White House, backed up Byck's warnings at the hearing.

But there was still time to prevent a catastrophe, Byck told the committee. "We do not yet have an epidemic of freebase or coca paste smoking in the United States. The possibility is strong that this might occur," Byck testified. "I have reports from California, from Chicago, and from New York about people who are smoking the substance, and I hear there are numbers of people now in San Francisco smoking the substance. Here is a chance for the federal government to engage in an educational campaign to prevent a drug abuse epidemic." The government needed to do three things "as rapidly as possible. Number one, find out about it. Number two, establish some kind of collaboration with the media; and number three, show what happens when this drug is used, so that we don't get an epidemic. We need our best minds to figure out how to do this without advertising the drug."

But the congressmen weren't interested in discussing educational campaigns or public service announcements. That wouldn't get any cocaine off the streets. What they wanted to know was this: What about the DEA's plan to ask the Peruvians and Bolivians to please quit growing coca plants?

Byck scoffed. "I don't think you can eliminate the growing of coca in Peru and countries which have had it for thousands of years."

"Not with [crop] substitutions?" Guyer asked.

"I don't think so."

"That is not going to work?" Guyer persisted.

"It can't work," Byck said, "if you consider these are crops grown on the slopes of mountains near jungle, and grown by people for their own use for 2,000 years. And talking about wiping it out? You have a better chance of wiping out tobacco in Virginia."

"We'll come back to this," Guyer promised, and the Cocaine Task Force hurried from the room for a break.

They never came back to Byck's warnings.

When the hearings resumed, the congressmen peppered the witnesses with such questions as whether they thought Hollywood cocaine use was contributing to the deterioration of quality TV shows (as one of them had heard recently on the Mike Douglas Show); if it was true that Coca-Cola once contained cocaine; and if the TV series Quincy, in which Jack Klugman played a coroner, was "accurate" or if it was "way out." Not another word was said about doing research or warning the public about the dangers of cocaine smoking. Byck left the hearing stunned. "Nobody paid any attention," he recalled. "They listened to it, and everyone said, 'So what?' I felt very strongly that the information that I had should have caused somebody to say, 'All right! We've got to start finding out about this stuff!' But they didn't."

Instead, Congress and the Carter administration did exactly the opposite of what Byck advised. It embarked on "the Andean strategy" advocated by the DEA to wipe out the coca plant, a tactic that even its supporters now concede was a failure. Nor did the federal government seem all that eager to allow scientists to do their own research into cocaine smoking, or to help them spread the alarm.

When Siegel, under U.S. government contract, finished a massive report on the history and literature of cocaine smoking, he couldn't get the government to publish it, allegedly due to concerns that readers would rush out and start smoking once they found out how to turn powder into freebase.

"They wanted me to do a scientific paper about cocaine smoking, but not to tell anyone how it was done," Siegel said disgustedly. "I tried to explain that people already knew how it was done. That's why there was a problem." Concerned that the information might never get out, he published it himself in a small medical journal two years later.

In 1982, Raul Jeri came to the United States to deliver his warnings in person.

He showed up at the California Conference on Cocaine, a well-attended affair held at a hotel in balmy Santa Monica, a few miles south of Los Angeles. Surrounded by palm trees and hibiscus, with the sounds of the ocean breaking in the background, the setting was perfect for a gabfest about such a sexy topic. Reporters flocked to the event, mobbing LSD guru Dr. Timothy Leary for a few witticisms about cocaine.

If any of them sat through Raul Jeri's presentation, it is likely they came away with the conviction that the thin, dark Peruvian was even stranger than Leary. Jeri showed his American colleagues a few slides, and in broken English tried to bang the drum about the dangers of cocaine smoking, which he claimed would result in "grave incurable cases of dementia." He trotted out his horror stories about the walking dead, the coke zombies that populated Peru. He showed more slides. "I would like to warn the U.S. against the plague which has reached its borders!" Jeri said dramatically, as the lights came back on. "The trivialization of cocaine use is a curse on humanity!"

The speech was "followed by an uneasy silence," a doctor in the audience remembered. How did Jeri treat such patients? someone asked.

Nothing worked really, Jeri said. They'd tried everything. Long periods of confinement, heavy doses of tranquilizers, lobotomies. It didn't matter. The relapse rate was between 50 and 80 percent, he said.

Um, lobotomies, did you say?

"Yes, surgical lobotomy—cyngulotomy, to be precise," Jeri said. He assured the audience that the brain surgery was done "only in desperate cases on incurable repeaters, often upon request by the family and with the patient's consent."

It was hard for Jeri's listeners to imagine how cocaine could become so addictive that a person would volunteer for brain surgery. "How barbaric," one muttered.

Byck said the Food and Drug Administration shut down attempts to do any serious research on addiction or treatment, refusing to approve grant requests or research proposals and withholding the government permits necessary to run experiments with controlled substances. "The FDA almost totally roadblocked our getting anything done. They insisted that they had total control over whether we could use a form of cocaine for experimental purposes, and without a so- called IND [an Investigation of New Drug permit] we couldn't go ahead with any cocaine experiments. And they wouldn't give us an IND."

Why not? "Once you get into the morass of government, you never understand exactly who is doing what to whom and why," Byck said.

Eight months before he appeared before Guyer's task force, Byck had requested official government permission to bring a coca paste sample into the United States for laboratory analysis. He filled out many forms, turned the sample over to a DEA agent in Lima, and never saw it again. "I now have a number of licenses I never had before, but no samples," Byck told Guyer's committee sarcastically. "The regulations which govern the legal importation of cocaine and coca research are much more effective than the regulations which seem to govern smoking or smuggling."
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Fri Feb 13, 2026 11:47 pm

"We were the first"

The same day the world's cocaine experts were gathered in Lima to discuss the approaching drug epidemic—July 5, 1979—a man who would help spread it across Los Angeles was touching down at LAX. It had been a rough couple of weeks for Oscar Danilo Blandon Reyes, a pudgy twenty-seven-year-old refugee from the Nicaraguan civil war.

Not long before he'd had the world on a platter. He'd been rich, the second son of a wealthy landowner. His wife, Chepita, had been rich, a daughter of one of the country's most prominent political families. He had a brand-new M.B.A., a cushy government job, and a couple of businesses—an import-export company and a travel agency—on the side. One of his firms had a lucrative contract to supply American food to the Nicaraguan National Guard, the institution that ran the country.

Danilo and Chepita Blandon were solidly plugged into the power structure of General Anastasio Somoza's dictatorship, which was benevolent only in the ways that it rewarded its friends. The Somoza family owned nearly all of the country's biggest corporations—the national airline, the power company, the biggest hotel, the biggest department store, the cement factory, a newspaper. . .you name it, they owned it. It was hard to earn a living in Nicaragua if the Somozas took a dislike to you. But those families who stayed loyal and pleased the dictator partook of the riches that only a wall-to-wall monopoly can provide. The Blandons had been blessed by Somoza's smile.

Then the Sandinistas had come to town and spoiled everything.

As Danilo Blandon stepped off the jet from Miami into the vast terminal at LAX, he found himself jobless, nearly broke, and homeless—human driftwood from a faraway, conquered land.

"[He came here] with one hand in the front and one in the back, you know what I mean?" his cousin Flor Reyes said.

All he and his wife had grown up accepting as their birthright—the elegant mansions, the servants, the vacation homes, the elite private schools—was gone, and he dreaded would soon be the property of some grasping commandante.

Though Somoza's army had beaten them down time and again, the Sandinistas rose up from the earth in the summer of 1978 to begin an offensive that would flabbergast both Somoza and his American handlers. By the spring of the following year, they had captured many of the smaller rural cities and were closing in on the capital. Somoza's supporters, who called themselves Somocistas, were beside themselves. Who would have ever believed that "Tachito" Somoza, the self-described Latin from Manhattan, could have gotten his ass whipped—and so quickly—by a bunch of bearded radicals? More importantly, how could the Americans have allowed such a thing to happen? The CIA contingent at the U.S. embassy had been assuring everyone that things were fine, that the rebels weren't a real threat. It might get a little tough for the old boy a couple years down the road, the CIA opined, but Somoza would hang on until then.

But what Somoza and, apparently, the CIA didn't realize was that the deal his family had struck with every U.S. administration since Franklin Roosevelt's—a blood pact to combat Communism together—would be dissolved by a Georgia peanut farmer, Jimmy Carter. Instead of covering up or downplaying the brutality of Somoza's National Guard as past administrations had done, some of Carter's people went on a human rights crusade, complaining publicly that the longtime dictator was just too dictatorial, and that his Guardia was wantonly killing people. In 1977 some in Congress had begun wondering why the U.S. government continued putting up with Somoza and his ill-behaved brood. Asked by the chairman of the House Appropriations Subcommittee what harm would befall U.S. interests if Congress were simply to cut off all aid to Nicaragua, Undersecretary of State Lucy Benson replied, "I cannot think of a single thing."

Somoza told his Guardia cohorts to ease up on the rough stuff, and miraculously, complaints dropped off sharply. Satisfied, the Carter administration backed off. "President Somoza is known to have instructed the National Guard on several occasions to eliminate abuses which led to many charges of extra-legal killings and torture, particularly in a northern rural area of insurgent activity," State Department official Sally Shelton proudly told Congress in 1978. That "northern rural area" was the stomping grounds of an especially efficient Guardia general, Gustavo "El Tigre" Medina, who would later play an important role in Danilo Blandon's life. Medina was Somoza's top counterinsurgency adviser, a short, steely-looking man hated and feared by the Sandinistas. They consider him responsible for some of the revolution's worst defeats.

The State Department reported in 1978 that, as far as the human rights complaints coming out of Medina's theater were concerned, "it appears that many of the allegations of cruel, inhuman and degrading treatment during the course of National Guard operations against the FSLN [the Sandinistas] were well-founded, but others were more dubious." But when the Inter-American Commission on Human Rights, a branch of the Organization of American States (OAS), did its own inspection in late 1978, the Latin American team, observers from other countries, saw things in much more graphic terms than had the Americans.

They spoke to a mother who told of picking body parts out of the dust to reassemble her five-year-old daughter after the girl was hit by an air-to-ground missile. They talked with survivors of "Operation Mop-Up," during which the Guardia went in after a street battle and killed everyone they found in the neighborhoods where the Sandinistas had hidden, shooting "numerous people, in some cases children, in their own homes or in front of the same and in the presence of parents and siblings." They visited the jails, reporting that in "all the jails visited, the prisoners alleged that they rarely saw a doctor but that when they did see one he was giving instructions as to the voltage of electricity to be applied during the torture, or examining the tortured persons to see if they could resist any more shocks."

In the northern mountains, the team concluded that of 338 peasants arrested between 1975 and 1977 by the Guardia, 321 of them "were never seen again and are presumed dead." The missing peasants' farms were "appropriated by members of the National Guard," the report said.

When the State Department went to Congress for more money to support Somoza's troops, one congressman was perplexed. "What possible interest does the United States have in training the National Guard of Nicaragua?" the lawmaker asked. "How does that help the American citizen?"

The training programs "have provided us a useful instrument for exercising political as well as professional influence over the Guard," the diplomat replied.

"I know," the congressman deadpanned. "We have been doing that for the last twenty or thirty years."

Because the National Guard had such a tight lock on the country, it was considered invincible by many of Somoza's followers. And it might have been, had the Carter administration backed up Somoza when the Sandinistas were at his throat. But Carter's people never really figured out what they wanted to do in Nicaragua, except to distance themselves from Somoza's excesses.

When it became obvious that the Nicaraguan people would no longer live under Somoza's rule, the American plan for dealing with the crisis boiled down to this: Dump Somoza and salvage the Guardia. Apparently the administration never realized that, to the Sandinistas and most other Nicaraguans, the Guardia and Somoza were like evil twins joined at the brain. One could not survive without the other.

As Sandinista attacks mounted, Washington let Somoza twist. Gradually, it dawned on Somoza's followers that the Americans weren't riding to their rescue. By early June 1979 Managua's airport was jammed with people frantically trying to catch a flight out before the rebels arrived. "Hundreds of Nicaraguans struggle daily at Las Mercedes International Airport to get a seat on one of the four commercial flights," Panamanian radio reported on June 9. "The situation here is such that if a donkey with wings appeared, it would be beseiged by travelers," an airport official said. "Departure from the country by land or by sea is impossible because of the danger involved in driving on the country's roads."

Yet Danilo Blandon stayed put, though he had every reason to fear the vengeance of the Sandinistas, to whom the Blandon family represented all that was wrong with the dictatorship. Blandon's father, Julio, owned the land on which was built one of the worst slums in Managua—OPEN #3—a low-rent district that began life as emergency government housing after an earthquake leveled Managua in 1972. Conditions there were so bad that the neighborhood, now called Ciudad Sandino and numbering more than 70,000 residents, was a constant source of new recruits for the Sandinistas and a hotbed of anti-Somoza activity. "It was called Via Misery," said economist Orlando Murillo, an uncle of Blandon's wife. "People there lived like the niggers in Los Angeles. But it made [Danilo's] father a very rich man."

The Blandons were social friends of the Somozas and shared common business interests; Julio Blandon and Somoza were two of the biggest landlords in Managua. Blandon could trace his family's relationship with the dictatorship back several generations. Blandon's mother was from the Reyes family, which had an illustrious history in the Somoza regime, and his grandfather was Colonel Rigoberto Reyes, former minister of war and National Guard commander under Somoza's father, Anastasio I.

Danilo's in-laws, the Murillos, were stalwarts of Somoza's Liberal party. The Murillos had provided leaders for the National Assembly for generations; Orlando Murillo's father had been the assembly's president, and Chepita Blandon's father had been Managua's mayor. Like the Blandons, the Murillos owned large tracts of the capital, including the national telecommunications company headquarters, along with cattle ranches and plantations in the hinterlands.

In some ways, Danilo Blandon had more to fear from the Sandinistas than other Somocistas. He was part of Somoza's government, the director of wholesale markets, and ran a program designed to introduce a free-market economy to Nicaragua's farmers. Blandon's job was to award grants for demonstration projects to create central distribution points for the country's agricultural riches, places where farmers could come and sell their goods to food wholesalers.

The $27 million program, Blandon said, was jointly financed by the Nicaraguan and U.S. governments. It paid for his master's degree in business administration from the University of Colombia in Bogota.

Blandon and his wife held fast during the first jittery weeks of June. Heavy fighting was breaking out in Managua, where they lived; National Guardsmen and Sandinista rebels were shooting each other in the streets. By June 11 things were so far gone for Somoza that the rebels had set up a headquarters in the eastern part of the city, and shells from National Guard howitzers whistled over downtown Managua daily to explode in the Sandinista-held neighborhoods. Circling airplanes would drop 500-pound bombs or flaming gasoline barrels into the area. On the edge of town, a National Guard tank had rolled up outside the La Prensa building and pumped round after round into the shuttered offices of the paper that had been Somoza's fiercest critic.

The CIA hastily revised its estimate of Somoza's staying power on June 12, giving his government only a short time to live. Somoza "fired" the Guardia 's general staff four days later—many had fought the Sandinistas for decades—and most of them ran to the Colombian embassy for asylum. The exodus was on.

Somoza went on the radio June 19 to denounce the U.S. government for its ingratitude for his long years of service. "I want the U.S. people to help me, just as I helped them during thirty years of struggle against communism," he announced. "We want the North Americans to return what we contributed during the Cold War."

That same day the CIA shortened Somoza's life expectancy once more. Now, the agency estimated, he had little more than a week. Danilo Blandon decided he'd hung around long enough. He had a three-year-old daughter, and Chepita was pregnant with their second child. It was time to go. Blandon fell in with a Red Cross convoy on its way to the airport and put his wife and daughter on a plane for Los Angeles, where Chepita had relatives. For some reason, he did not accompany them. Instead Blandon and his older brother, Julio Jr., boarded a flight for Miami, where Blandon entered the United States on a tourist visa he'd been issued several years earlier.

How he managed to do what many others could not—namely, get four seats on jetliners bound for the States—is not clear, and the Immigration and Naturalization Service has refused to release any records of the Blandons' immigration, citing privacy reasons. Nor is it clear why he first went to Miami.

Years later, Blandon would claim that he couldn't get a ticket to L.A. for himself, and barely could afford the tickets he got. He claimed that he sold a Sony color television for $200 to pay for them, and landed in Miami with $100 to his name. However, his wife's uncle, Orlando Murillo, says he paid for the airline tickets and also gave the couple $5,000 before they left the country. If that was true, Blandon had other reasons for choosing to spend his first few weeks in Miami.

As he tells it, he stayed with a friend and "got a job washing cars" until he could save enough for a plane ticket to Los Angeles. He rejoined his family on the West Coast in early July, and by August he had landed a job as a salesman at a used car lot in East Los Angeles, a heavily Hispanic section of town. His employers were two huge Nicaraguan brothers named Torres.

Blandon has said he knew one of the brothers, Edgar, from his days in college in Monterrey, Mexico, where Edgar was studying economics. Edgar's brother, Jacinto, was a former U.S. Marine and had served in Vietnam. Together they ran Torres Used Cars.

"They had a used car lot with only ten cars," Blandon said. "They just give me a favor to be there and pay me something because they know that I didn't have any money, and then they gave me [a job] like a salesman in the neighborhood."

But the Torres brothers weren't just car salesmen. They were also major- league cocaine traffickers. Other dealers called them "the Trees" because of their sequoia-like girth; both brothers were estimated to be at least six-six. To the cops they became known as "the Twin Towers." The Torres brothers lived with two sisters who were big in their own way: they were cousins of Pablo Escobar, a Colombian cocaine kingpin who was one of the founders of the Medellin cocaine cartel.

Escobar and his Colombian pals Jorge Ochoa and Carlos Lehder were then firmly in control of the blossoming Miami cocaine market, having wrested it from the Cuban-Americans after a long-running cocaine war. The Cubans had been using the city as a base for small-scale cocaine smuggling since the late 1960s, but the Colombians had bigger ideas. They intended to distribute mass quantities of cocaine all across the United States in an organized and businesslike fashion.

For three years, from 1976 to 1979, they fought the Cubans for supremacy in Miami, and the two sides killed each other in droves. Afterward the Colombians turned the city into a cocaine distribution hub, and it became the official port of call for cocaine dealers of every stripe. Local banks began swelling with drug profits.

Miami was convenient; the Colombians could blend in with the large Hispanic population and move about the city unnoticed. Escobar's associate Carlos Lehder set up shop in the Bahamas, buying an island where the drug planes coming out of Colombia could land, refuel, and wait for the right moment to fly into the United States.

Lehder's transportation system worked well and gave the Medellin cartel its first real toehold in America. Then he began jetting to the West Coast to scope out a distribution system for Los Angeles and the western United States.

When Blandon was working for the Torres brothers, he says, they had not yet begun dealing cocaine. But it apparently didn't take them long to get the hang of it; by 1982 they would be two of the more significant drug dealers in Los Angeles.

Blandon insists he wasn't dealing drugs in 1979 either. That was a couple years down the road. At the moment, he had plenty to keep him busy. Chepita was getting bigger with their second child every day, and he was struggling to pay the bills. In August 1979 he started a new job with another car lot, Rocha Used Cars, and was also hustling rental cars at an L.A. hotel, according to his friend Frank Vigil. And in his spare time Blandon was also trying to start an army.

"I was the first," Blandon boasted. "Well—we—we formed a group in L.A. to —a group of our people to go and fight against the Sandinistas that we called FDN, Fuerza Democratica Nicaragiiense [Nicaraguan Democratic Force]. We were in charge. We were five people in charge of it in L.A. We were in charge to get some money at that time."

Blandon said his counterrevolutionary group came together soon after he arrived in Los Angeles. At first it was just a group of Nicaraguan exiles who got together occasionally to bitch about the Sandinistas and help each other find a toehold in their new country. They would "talk about developments in Nicaragua," Blandon later told the CIA. "Other members of this group also opposed Somoza and the Sandinista regime. . .. [They] simply came together to share common experiences and discuss their mutual desires to see the Sandinista government out of Nicaragua." They had "meetings every week, every 15 days, okay, since we got to L.A., in 1980-81. And we raised money for the Contras." When it began, he said, his group was not officially connected to anyone. It had no formal structure, no officers, no membership requirements.

"You Americans have no idea what it's like to lose everything and be thrown out of your own country," commented Jose Macario Estrada, an ex-judge who later became Blandon's lawyer and business partner. "When you are in exile, you become very close to other exiles."

At the end of 1979 Blandon applied for political asylum in the United States, claiming that he would be killed by the Communists if he returned to Nicaragua. And he listed his membership in an "anti-Communist organization" as proof that his life was worthless back home. If Blandon's recollection is correct, his little L.A. group was one of the first flickerings of an organized resistance movement against the Sandinistas in the United States. Acquaintances and former college classmates say Blandon sometimes brags that he was one of the earliest founders of the FDN, which became the biggest and most famous of the various Nicaraguan anti-Communist armies that would later be called the Contras.

The FDN didn't officially come into existence until mid-1981, so if Blandon was raising money for Contra fighters as early as he says—in 1979-80—he was doing it on behalf of the FDN's predecessor: the Legion of September 15, a violent band of ex-Guardia men then based in Guatemala. The legion, a terrorist organization started by former Somoza bodyguards soon after Somoza's fall, was to become the hard core of the FDN after the CIA merged it into two smaller resistance groups in August 1981.

Blandon's Contra fund-raising efforts bore little fruit at first. "At the beginning, we started doing some parties, you know, some—how do you call— some activities in the park, until 1980 and '81," he said. "We have to have some rallies or whatever." The fund-raisers were disappointing, though, bringing in only "a few thousands or something." An acquaintance reported that Blandon also hawked copies of Somoza's bitter memoirs, Nicaragua Betrayed, and helped put out an anti-Sandinista newsletter that was printed at a little shop owned by a sympathetic Nicaraguan.

About the same time that Blandon and his compatriots began their fund¬ raising efforts in L.A., Somoza's cousin, Luis Pallais Debayle, began making the rounds of the various exile groups in the United States and Central America to see if anyone was interested in helping Somoza fight his way back into power.

Pallais contacted his cousin in Paraguay, and the ex-dictator promised to kick in $1 million to start a resistance movement. It was a promise he never kept. On September 17, 1980, Argentine revolutionaries blasted a rocket-propelled grenade and a hail of M-16 fire into Somoza's Mercedes-Benz limo, killing Somoza and scattering pieces of him and his German automobile across a block of downtown Asuncion.

Another visit Pallais made, with happier results, was to former National Guard colonel Enrique Bermudez, to see if Bermudez would be willing to lead a resistance force if one could be put together. Bermudez was a logical choice to be the Contras' military commander. Of all the former officers of Somoza's National Guard, he probably had the best contacts with the U.S. military and intelligence communities. Convincing the Americans to back them was going to be critical if the Contras were ever to get off the ground. And Bermudez was a leader who was very palatable to the Americans. He was a known quantity.

"He fit the profile," one U.S. official later told journalist Sam Dillon. "He was malleable, controllable, docile."

In 1965 Bermudez had been the deputy commander of an infantry company Somoza sent to support a U.S.-led invasion of the Dominican Republic, an excursion to put down a leftist political movement. It was another one of those favors Somoza had done over the years to help his American friends stamp out any hint of communism in Latin America.

Bermudez had been in the United States since 1975, first as a student attending courses on subversion and counterinsurgency at the Inter-American Defense College in Washington and later as the Nicaraguan government's liaison to the American military. The Americans thought so highly of him that he was one of six Guardia officers they recommended to head the National Guard during the final days of the Somoza regime, in a last-minute public relations ploy by the Carter administration to change the Guardia 's murderous image and take some of the wind out of the Sandinistas' sails before their final offensive.

The State Department considered Bermudez a safe choice; he had spent most of the revolution in Washington and, the reasoning went, couldn't be held responsible for any of the Guardia 's human rights violations—the tortures, the disappearances, the aerial bombardments of civilian neighborhoods. Somoza picked someone else, however, and Bermudez rode out the remainder of the civil war from the safety of Embassy Row in Washington. When the Somoza government collapsed, Bermudez began a new career as a truck driver, delivering Newsweek magazines.

He would not toil long at such a menial task. Soon after the uplifting visit from Somoza's cousin, Bermudez got a call from Major General Charles E. Boyd, a top U.S. Air Force official, who invited Bermudez to the Pentagon to kick some ideas around. There, after sounding out Bermudez on the idea of running a rebel force to harass the Sandinistas, Boyd told him he had a friend at the CIA who was interested in speaking with him. By mid-1980 Bermudez had packed his family and his belongings and left Washington behind, moving to a rented house in Miami. According to one account, Bermudez was then on the CIA's payroll.

He began traveling widely, gauging the sentiment of vanquished National Guardsmen hiding in the United States and Central America and reporting his findings to his CIA handlers. Those who wondered how Bermudez could afford his travels when he was jobless were told he was living off the profits from the sale of his home in Washington.

According to Boyd, the CIA "put Bermudez in touch" with the Legion of September 15 in Guatemala. Soon Bermudez would move there and become the legion's commander.

It was a motley crew, if there ever was one. Made up mostly of ex-Guardia officers who escaped from Nicaragua at the end of the war, the legionaires had a safe house in Guatemala City and were training on a farm near the Honduran border called Detachment 101. Coincidentally, the farm was located in the same small town, Esquipulas, that had served as the headquarters for the CIA-backed group that overthrew the Guatemalan government in 1954.

Since there was no war for them to fight—yet—the legion kept in shape by hiring itself out to perform a variety of warlike deeds for others. The CIA acknowledged in 1998 that the Legion "to some extent engaged in kidnapping, extortion, and robbery to fund its operations" and also "engaged in the bombing of Nicaraguan civilian airliners and airliner hijackings as methods of attacking the Sandinista government." According to a June 1981 cable to CIA headquarters, the Legion's commanders "see themselves as being forced to stoop to criminal activities in order to feed and clothe their cadre."

That the CIA would know this band of terrorists so well that it would know the thinking of its commanders is not a surprise. Much of the Legion's leadership had worked with or for the Agency during their previous lives as Somoza's secret agents, rooting out dissidents for the dictator's Office of National Security, which was advised by the CIA. One of the earliest published accounts of the Legion's existence notes that it was "run by former members of Somoza's intelligence service." In other words, the men of the CIA and the men of the Legion were kindred spirits—anti-Communist spooks—and this mutual affection would come to serve the Legion well after the CIA took over the day-to-day operations of the Contras.

Still, the CIA's matter-of-fact description of the Legion's criminal history is too kind. Its Inspector General never mentioned the Legion's most horrific deed: the March 1980 assassination of the Roman Catholic archbishop of San Salvador, Oscar Romero, who was shot through the heart as he held Mass. Romero had the bad luck to interest himself in the fate of some parishioners who had been "disappeared" by the infamous Salvadoran death squads. The archbishop had been warned several times to butt out, but he hadn't taken the hint.

Records seized from a right-wing Salvadoran politician suspected of orchestrating Romero's murder, Roberto D'Aubuisson, revealed that D'Aubuisson had gone to Guatemala three days after Romero's murder and made two "contributions to Nicaraguans," one for $40,000 and one for $80,000. Written underneath these amounts was the name and telephone number of Colonel Ricardo Lau, a former intelligence and security officer for the Guardia who was running the Legion of September 15 prior to Bermudez's appointment as commander.

Lau, who was never charged in connection with Romero's murder, would go on to become Enrique Bermudez's right-hand man in the Contra organization. The CIA has admitted that during 1981-82 it was receiving regular reports that Lau and seven other Legion commanders were "involved in criminal activities." Coincidentally, that's what Danilo Blandon was doing for the Contras in Los Angeles. His little exile group was moving up in the world, and had switched from cocktail parties to car theft and loan fraud. They had also become an official part of the CIA's new Contra army, the Fuerza Democratica Nicaragiiense — the FDN.

In 1981 CIA agent Enrique Bermudez paid Blandon's little group in L.A. a visit. "Bermudez came to a meeting of the group to give a pep talk and to ask that the group keep the idea of a free and democratic Nicaragua alive by publicizing the Contra cause in the United States," Blandon told CIA inspectors. The colonel asked the group "to adopt the colors and the flag of the FDN," and, after that, the CIA inspectors wrote, "Blandon and other member of the group called themselves FDN and used the FDN's colors, flag and letterhead."

They also got an assignment, Blandon testified. "It came, you know, that we had to provide some cars and we got involved in another thing to get some money." By then Blandon had been working in L.A. long enough to establish a credit history, so he applied for an auto loan.

"My thinking was to get back to Nicaragua, never to stay in the States, so I used my car salesman job to get a [loan] application, to make an application and to get a car without—just giving them the down payment—and sending it to the Contra revolution in Honduras," Blandon said. "We were the first people, the first group that sent a pickup truck to the Contra revolution in Honduras." (In the spring of 1981 the Legion of September 15 moved its operations from Guatemala to a new headquarters in Honduras, where it would remain for the rest of the war.)

Blandon said the payments on the cars they sent to the Contras were to be picked up by "the organization. . .and they didn't pay the monthly payments, so I lost my credit. But at that time I didn't care because they [the Contras] were my idea, my cause."
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Fri Feb 13, 2026 11:52 pm

"The brotherhood of military minds"

Danilo Blandon says he never intended to become a cocaine trafficker when he arrived in L.A. in 1979. He became a drug dealer out of patriotism. When the bugle sounded and the call to serve came, Blandon was hustling used sheet metal at H&L Auto Exchange in Los Angeles—an honest guy making an honest two thousand bucks a month. Next thing you know, he was selling cocaine instead of Chevys.

As Blandon tells the story, his transformation occurred shortly after getting a call from a friend from Miami, an old college classmate named Donald Barrios. Barrios told Blandon that someone wanted to meet with him, a man who would be flying into L.A. very soon. The passenger's name was Norwin Meneses. Blandon was to meet him at the airport and listen to what Meneses had to say.

"He had to talk to me about something," Blandon said. Lor most Nicaraguans that would have come as decidedly unwelcome news. Meneses had a nasty reputation in his homeland. Blandon had heard him referred to as "El Padrino" (The Godfather) and he'd heard rumors of drug trafficking. A 1982 LBI report said Meneses "had a reputation as a hit man who had killed in Nicaragua."

Barrios didn't say why he wanted Blandon to meet with the gangster, but Blandon figured it had to do with the Contras, "because he [Barrios] was in the Contra—in the Contra revolution organization."

People who know Barrios describe him as a wealthy former insurance broker and financier from Managua who emigrated to the States long before the revolution and married an American woman. They say Barrios is a relative of former Nicaraguan president Violeta Barrios de Chamorro, widow of the crusading journalist Pedro Joaquin Chamorro, whose 1978 murder sparked the uprising that eventually toppled Somoza. Norwin Meneses, records show, was a partner of Violeta Chamorro in a finance company before the revolution.

After the Sandinista takeover, Donald Barrios reportedly became a financial angel to dispossessed Somocistas, helping them settle in Miami and find jobs.

He also became business partners with some of them, including at least two members of the dictator's general staff and the owner of the largest pharmaceutical company in Nicaragua.

At the time he called Blandon in Los Angeles, Barrios was partners with Somoza's old guerrilla hunter, Gustavo "El Tigre" Medina, the counterinsurgency expert who'd ravaged the northern mountains rooting out Communist sympathizers. Medina was head of G-4—the officer in charge of supplies—for the National Guard at the end of the war, and he fled Managua with Somoza on the morning his regime ended. "I was in the plane right behind his," Medina said. Because of his activities during the war, Medina is among the minority of Nicaraguans who have not gone home.

Medina and Barrios started a restaurant and an investment company in Miami, records show. Other partners included former colonel Aurelio Somarriba, head of G-l for the Guardia, Somoza's chief administrative officer; and Enrique "Cuco" Sanchez, a member of a wealthy Nicaraguan family that would play a key role in the founding of the Contras.

Blandon's hunch about Meneses and the Contras turned out to be correct. The meeting, he said, was "to start the movement, the Contra revolution."

After picking his passenger up at the airport, Blandon said, the wiry Meneses "started telling me that we had to do some money and to send [it] to Honduras." Later, at a restaurant, Meneses explained his idea more fully: "He told me to make some drug business in L.A. for raise money to the Contra, and we started that way."

Blandon was shocked by the suggestion at first, he said. "I didn't agree at that time, because I had to think."

Joining up with a man like Norwin Meneses would be agreeing to work for a killer—a career criminal. Meneses's nickname, "El Perico," is a Spanish pun, and a telling one. The word usually means "parakeet," and given Meneses's quick, dark eyes and small beakish face, it's easy to see why such a moniker would stick. But in Argentinian slang the word means "cocaine." And to cops in Central America from the 1970s to the 1990s, cocaine often meant Meneses.

The CIA, in a recently declassified 1986 cable, described Meneses as "the kingpin of narcotics traffickers in Nicaragua prior to the fall of Somoza." The agency would later describe him as the Cali cartel's representative in Nicaragua, but Norwin wasn't finicky. He'd sell cocaine for anyone.

In fact, he'd been selling cocaine since before there were any cartels. In the small world of international cocaine smuggling, Norwin Meneses was a pioneer.

Back when Medellin kingpin Carlos Lehder was still just a car thief sitting in a cell at the Danbury, Connecticut, federal prison, Meneses was making multikilo deals directly with Peruvian cocaine manufacturers. According to Nicaraguan police officials, Meneses's relationship with the drug lords of Colombia began during the marijuana era of the early 1970s, and the story they tell of his first big deal is illustrative of Meneses's modus operandi.

Roger Mayorga is a former Sandinista intelligence officer who also headed up investigations for the Nicaraguan National Police narcotics unit. Mayorga says the drug kingpin's association with the Colombians began after an airplane full of marijuana made an emergency landing at a ranch owned by one of the Somozas. The Managua police were called, and they arrested the Colombian pilots, seized the airplane, and confiscated its load of prime weed.

In Somoza's Nicaragua, the Managua police department was a branch of the National Guard. And the Guardia officer who commanded the Managua police for many years was Colonel Edmundo Meneses Cantarero—Norwin's brother. Colonel Meneses came to an understanding with the Colombians who owned the aircraft. Mayorga said the pilots and the airplane were allowed to leave, but the load of marijuana remained behind as "evidence." Somehow the evidence got turned over to brother Norwin, and a drug kingpin was born.

The role played by the Nicaraguan National Guard in creating Meneses's criminal empire can't be overstated. The Guardia, which one researcher called "one of the most totally corrupt military establishments in the world," permeated the Meneses family. In addition to Edmundo, another brother, Brigadier General Fermin Meneses, commanded the Guardia garrison in the city of Masaya, a commercial and cultural center not far from Managua. The family's long ties with the Guardia and its history of staunch anticommunism help explain Norwin's later activities on behalf of the Contras.

"The whole [Meneses] family was anti-Sandinista to the death," the Nicaraguan newsmagazine El Semanario reported in 1996. "It is a hate that seems almost genetic, ancestral."

The Guardia wasn't just an army; it had its hands in everything. If the CIA, the FBI, the DEA, the IRS, the army, the air force, the Marine Corps, the National Guard, the Coast Guard, Customs, Immigration, and the Postal Service were all rolled into one, it would begin to approach Somoza's National Guard in its power over the everyday lives of the average citizen. "Nicaragua is one of the few countries we are aware of in which all arms shipments that go into the country, whether they are sporting goods or of whatever kind, have to be received by the National Guard," State Department official Sally Shelton told Congress in 1978. "We have been shipping hunting equipment, for example. They are in effect purchased by the National Guard and then resold in retail outlets."

"Say that again?" one stunned congressman asked. "The National Guard is a wholesaler for hunting ammunition?"

"They are passed through the National Guard and sold in retail outlets," Shelton repeated. "It is more an accounting procedure than anything else."

According to the hearing transcript, "general laughter" ensued.

But the pervasive corruption of the Guardia was no laughing matter to Nicaraguans. "Gambling, alcoholism, drugs, prostitution and other vices are protected and exploited by the very persons who have the obligation to combat them," Nicaragua's Roman Catholic bishops complained in a 1978 pastoral letter to Somoza. "Widespread corruption continues unchecked and public scandals further undermine the confidence and morale of the people."

To many the Guardia was little different than the Mafia. And if Somoza was its godfather, the Meneses brothers were his capos. Somoza was closest to Edmundo, known as Mundo, who was one of his favorite generals. In the 1960s Mundo—who'd been trained in irregular warfare and anticommunism at the U.S. Army's School of the Americas in Panama—conducted a series of bloody operations against Sandinista rebels near the town of Pancasan in northern Nicaragua. Those campaigns killed several key Sandinistas and crippled the guerrilla movement for years. Later Somoza gave Mundo the Guardia 's choicest plum, control of the Managua police, a perch from which a man so inclined could dip his beak into every imaginable scam. For the unscrupulous, the profit potential was unlimited.

"You have to realize that you did a lot of things in your career in the Guardia and you progressed up through the ranks so you might have been a lot of things," explained former Somoza secretary Juan C. Wong. "Now, Police Chief, that's one of the best. That's a nice job. That was the last job he [Edmundo] had in his military career. Then he retired and went into the diplomatic corps."

Under Mundo's watchful eye, Managua became an open city for brother Norwin, who by the late 1970s owned discotheques—the Frisco Disco and the VIP Club, among others—drive-in whorehouses with waterbeds and porno tapes, and a thriving drug business.

A "highly reliable" FBI informant told Justice Department inspectors that Meneses used his influence within the Somoza regime to smuggle cocaine from Colombia to the U.S. and "had even used a Nicaraguan Air Force plane once for such a shipment."

"Norwin ran all the rackets for the Guardia,” said Mayorga. "And remember, his brother was the chief of police. No one could do anything."

San Francisco cocaine trafficker Rafael Cornejo, who has worked for the Meneses family since the 1970s, told of prerevolution jaunts down to Managua where he would spend weekends partying with the Meneses brothers. "You'd walk down the street with Mundo, and everyone would salute you," Cornejo recalled with a smile. "We went riding around in the Jeeps, you know, guys with big guns everywhere around us. It was a trip."

Though never a member of the Guardia, Norwin did his part for the Somoza regime. In his teens and twenties, acquaintances said, he worked as an undercover informant for the Office of National Security (ONS), Somoza's plainclothes secret police, which rooted out subversives and political dissidents. Before going to Guatemala to start up the Legion of September 15, Colonel Ricardo Lau spent much of his career with the ONS and was allegedly one of its chief torturers.

Former Managua police chief Rene Vivas, an early member of the Sandinista movement, said Norwin Meneses infiltrated pro-Communist groups for the ONS, sometimes posing as a news photographer, other times as the secretly disaffected son of a powerful Somocista family. In a magazine interview in 1996, Meneses told of starting up an armed guerrilla group to support Fidel Castro's takeover of Cuba but insisted that he was never a Communist.

With Mundo and the National Guard as his protectors, Norwin appears to have literally gotten away with murder. In the spring of 1977 Norwin found himself under investigation by the chief inspector of the Nicaraguan Customs Department, a particularly tenacious sleuth named Oskar Reyes Zelaya. Inspector Reyes and the FBI believed Norwin was running a massive car theft ring, which was using the National Guard to "import" stolen American cars into Nicaragua and then selling them to various potentates of the Somoza government. Importing cars through the Guardia allowed the buyer to evade the hefty tariffs the Nicaraguan government had placed on imports.

According to press reports, Norwin first tried to get the annoying inspector off his tail by setting him up with an attractive woman in a Managua hotel room. The woman, Pamela Cestoni, then went to the police, claiming that Inspector Reyes had raped her. When the investigation revealed that Cestoni was a friend of Norwin's, Reyes was cleared, and "the sexual maneuver was used only to exacerbate the prosecution against Norwin," La Prensa reported.

On the evening of June 2, 1977, the chief inspector got a phone call at his home, allegedly from a man who wanted to give him a payoff in order to drop the Meneses investigation. Dressed in a bathrobe and flip-flops, Reyes hopped into his Jeep Cherokee and drove to an alley behind a nearby supermarket, where the man was waiting to meet him. Whoever it was in that alley shot Reyes three times in the stomach and throat. But he didn't complete the job. Bleeding profusely, the inspector was taken to the emergency room of the Orient Hospital in Managua. As he lay writhing on a cot, the dying Reyes spotted his friend Pablo Zamora Moller, the chief investigator for the Managua police department, standing nearby.

"Pablo, protect me!" Reyes cried. "This is Norwin! Norwin Meneses sent away to kill me!" Reyes died a short time later.

Norwin was arrested and jailed on suspicion of murder. But after a "rigorous and exhaustive" investigation ordered by brother Edmundo, Norwin was cleared of any involvement and released. Meneses claimed he was at a motel when the killing happened, and both Rafael Cornejo, one of his San Francisco-based cocaine traffickers, and his nephew Jaime Meneses, who also was dealing cocaine in the Bay Area, backed up the story, testifying that Norwin was with them.

Reyes' murder would never be solved, but the Justice Department would later receive compelling evidence that Meneses was behind it, just as the dying inspector had claimed. In 1986, federal prosecutors in San Francisco debriefed Edmundo Meneses' son, Jairo, who informed them that "during the Somoza regime, Norwin Meneses smuggled weapons, silencers, and video equipment into Nicaragua, which he exchanged for money or narcotics. The operation was discovered by Oscar Reyes, who was a high-ranking customs official under Somoza. Norwin then arranged for Reyes' assassination."

After the publicity died down, Norwin calmly resumed his smuggling ventures, but the FBI kept its eye on him. As Somoza's government teetered, the Bureau laid plans to keep Norwin from ever coming to the U.S. In 1979, the FBI office in Mexico City asked that Meneses be included in the Bureau's "top thief" program and requested an arrest warrant "if for no other reason than to preclude him from entering the United States." The FBI also asked for a hold on his immigration status so he could be questioned if he tried to cross the border. But the U.S. Attorney's office in San Francisco, citing Norwin's "political connections" in Nicaragua, refused to do either—and it would not be the last time that office would exhibit such an odd reluctance to battle the Meneses crime family.

One longtime Contra supporter said Norwin's arrest and the subsequent scandal that enveloped Edmundo so upset Somoza that it may have triggered his heart attack in July 1977, after which he went off to the United States to recuperate. Edmundo soon left the police department, was promoted to brigadier general, and retired from the National Guard. Somoza then sent him off to Guatemala to be Nicaragua's ambassador.

It would be Edmundo's last assignment for Tachito.

On September 16, 1978, Ambassador Meneses was machine-gunned in Espana Park in Guatemala City, catching three bullets in his back. Two days later, as he clung to life in the Guatemala City Medical Center, a revolutionary group, the People's Guerrilla Army (EGP), claimed credit for the attempted assassination.

The EGP's communique described Meneses as being far more than a diplomat. According to the guerrillas, he was overseeing anti-Communist counterinsurgency operations all over Central America. "Meneses Cantarero enjoyed special privileges amongst Guatemala's authorities and army commanders," the guerrillas declared. "Exploiting his ambassadorial position in Guatemala as a smokescreen, he actually discharged the duties of coordinator between the Guatemalan army and the Nicaraguan National Guard, and also between Somoza and Guatemala's reactionary government. He coordinated political repression for all of Central America and the operations undertaken by the governments of this area against popular revolutionary movements." The EGP claimed that the ambassador was gunned down to "show solidarity with the struggle of the Sandinist National Liberation Front."

"The Sandinistas never forgave my brother Edmundo for the guerrillas of Pancasan," Santiago Meneses told El Semanario in 1996.

Edmundo Meneses lingered for another fifteen days before succumbing to his wounds. At his funeral, Somoza hailed him as a martyr in the worldwide struggle against communism.

The nature of Edmundo Meneses's relationship with the U.S. government is not clear. The CIA has refused to disclose any information about him, on grounds of national security. The State Department, incredibly, has claimed it can find no records that even mention his name, a stunning admission given Meneses's stature in the Somoza government—its chief law enforcement officer and ambassador to Guatemala.

In light of Edmundo's murder, Norwin figured the Sandinistas probably had the same fate in mind for him, and he left Nicaragua in early June 1979. He caught a flight to El Salvador, went to Ecuador for a while, then to Costa Rica— where he had businesses and at least six ranches—before finally emigrating to the United States in early 1980 and applying for political asylum. Meneses had homes in Florida and Alabama, he said, but spent most of his time in San Francisco, where he had begun buying property in 1978.

After the Sandinistas marched into Managua, the Bay Area—like Miami, Houston, and Los Angeles—saw a large influx of Nicaraguans who had supported Somoza. Not surprisingly, Contra support groups quickly popped up in those cities, and Meneses played a key role in getting the San Francisco organization going. "Even before the term 'Contra' was being used. . .there were meetings of 'anti-Sandinistas' at Meneses' house, which were attended by politicians, Somocistas, and other exiles interested in starting a counter-revolutionary movement," a DEA informant who knew Meneses told the Justice Department in 1997. Meneses posed as a successful businessman, purchasing a used car lot, a couple of commercial buildings, a travel agency, and a restaurant. He zipped around town in a gray Jaguar sedan. His nephews bought bars and nightclubs. Norwin purchased two houses in Pacifica, a small town just down the coast from San Francisco, one for himself and the other for his brother Ernesto.

He spent much time in San Francisco's Mission District, working out of a travel agency office owned by nephew Jaime Meneses. The Mission is a heavily Hispanic section of town, with a history of hospitality to Central American revolutionaries of all stripes. According to Roberto Vargas, a San Franciscan who later became the Sandinistas' ambassador to China, the Mission was home to several of the Sandinistas' future commandantes, who practiced their sharpshooting skills at rod and gun clubs down the coast.

Meneses's ability to freely travel in and out of the United States, buying properties, starting businesses, and applying for political asylum—all under his own name—speaks volumes about his lack of concern about attracting the attention of American law enforcement officials. "I even drove my own cars, registered in my name!" he boasted.

How someone with Meneses' record was ever allowed into the United States in the first place is still a mystery, and one that is likely never to be solved. The Justice Department's Inspector General tried in 1997 to figure out how Meneses was able "to come and go from the United States as frequently as he did" but found huge gaps in his immigration files. The IG didn't even try to explain how Meneses was able to obtain visas from U.S. Embassies while he was under active DEA and FBI investigation. It's entirely possible, though, that Uncle Sam was repaying some IOUs.

Meneses told the Justice Department he met with CIA agents shortly after the Sandinista takeover of Nicaragua to teach them how to cross his country's borders undetected, a claim that makes a certain amount of sense given Meneses' considerable expertise in that area. By 1986, Meneses was boasting that he had U.S. government agents escorting him across America's borders, a claim that— amazingly enough—was true, as we shall see.

The cocaine kingpin's easy access to U.S. shores becomes even more disconcerting when one considers just how much the federal government knew about him by then. He'd been turning up in law enforcement files with some regularity for nearly 20 years. In 1968 he was suspected of murdering a money changer in Managua and Nicaraguan authorities asked the CIA and FBI to search for him in San Francisco, where they assumed he'd fled. During their unsuccessful search, federal agents found records of other crimes Norwin had committed in San Francisco in the early 1960s: statutory rape, shoplifting, and "misuse of slot machines."

Court records show that the DEA first picked up word that Norwin was a drug dealer in 1974. By December 1976 its office in Costa Rica had identified him as a cocaine "source of supply" based in Managua.

The FBI became aware in April 1978 that Norwin and his brother Ernesto "were smuggling 20 kilos of cocaine at a time into the United States" and identified Norwin's nephew, Jaime Meneses, as their San Francisco distributor. The DEA learned that Meneses was dealing cocaine in Miami as well, bringing it into the country aboard commercial airliners.

The following year, the New Orleans DEA determined that Meneses was responsible for smuggling cocaine into that city also. The DEA's "Operation Alligator," as the sweep was called, resulted in the indictment of "numerous persons for smuggling cocaine. It was determined that Norwin Meneses was a source of supply for this group."

One of the men arrested in that DEA operation, Manuel Porro, would end up in Guatemala as a commander of the Legion of September 15 Contra army, and the CIA would link him repeatedly to criminal activities there. Nonetheless, he would go on to serve as a top aide to CIA agent Adolfo Calero, the political leader of the Contras, and would handle some of Calero's Caribbean banking activities.

By the fall of 1981, the time Blandon says Meneses recruited him to sell dope for the Contras, the DEA had Meneses under active investigation for cocaine trafficking and possible gun running. "The Drug Enforcement Administration has developed information over the past several years that the Meneses Family has been involved in the smuggling and distribution of cocaine in the San Francisco Bay Area," stated a November 1981 affidavit by DEA agent Sandra Smith.

Smith, who was one of the DEA's first female agents in San Francisco, recalled that her investigation of the Meneses family was "the only thing that I ever worked, in all the time I worked there, that I thought was really big. ... In this business, if you have people coming in from Nicaragua bringing in cocaine and the rumor was they were taking guns back. . .that's sort of an interesting combination."

Starting in the late 1970s, Smith said, she began gathering string on the Meneses family, "putting together the comings and goings." She said Meneses was living in "a gorgeous house" in Burlingame, a ritzy suburb of San Francisco.

Periodically, she and a Customs agent would stake out the house, sitting in the parking lot of a nearby elementary school and jotting down license numbers of cars seen pulling up Meneses's thickly treed drive. "We really didn't have anybody on the inside," she said. "That was part of the problem."

The local San Francisco police were also running across various and sundry Meneseses, often in the company of large quantities of cocaine. Omar Meneses, another nephew, was arrested for cocaine sales at a bar in the Mission owned by nephew Jaime in June 1980. A month later nephew Roger Meneses was arrested with twenty pounds of cocaine and more than $8,800. That same month, Omar got busted again with a quarter pound of cocaine.

By mid-1981 Smith had put together enough information from her investigation and from the DEA's files to sketch out a fairly detailed portrait of a family steeped in dmg trafficking. The Nicaraguan, it appeared, had cocaine coming in from everywhere. "Meneses had an endless supply of dope, from what I could see."

In June 1981, Smith got a break in her on-again, off-again investigation.

Detective Joseph Lee of the Baldwin Park police in southern California got a tip that a cocaine dealer in West Covina, a Nicaraguan named Julio Bermudez (no relation to Enrique Bermudez), was making two trips a month to San Francisco, "where he contacts a large cocaine smuggling organization headed by Norwin Meneses." The informant told Lee that Bermudez was bringing down between fourteen and twenty pounds of cocaine on each trip. Another informant reported that Bermudez called San Francisco and "places his order by telephone" before each trip.

The police subpoenaed Bermudez's telephone records for the previous three months, and sure enough, they found fifty-one long-distance calls from Bermudez's phone to a number in Daly City, a working-class suburb south of San Francisco. The number belonged to Norwin's nephew, Jairo Meneses.

It was enough for the Baldwin Park cops, along with members of the L.A. County Sheriff's Department and the U.S. Customs Service, to put a tail on Bermudez and stake out his house at 1128 Greendale Street.

On November 12, 1981, Bermudez left the house with a small beige suitcase and drove off in a 1972 Buick. The cops followed, observing him stop to pick up another man, Jose Herrera, before heading to the L.A. airport. The duo bought two one-way tickets to San Francisco on PSA Flight 425 and got there at 3:40 p.m., when DEA agent Smith picked up the surveillance.

Smith watched as the two traffickers were met outside the terminal by an unidentified Latino man driving a gold 1979 Toyota, a car registered to Herrera, one of the traffickers. They drove to a small house in Daly City, and the three men went inside. After a bit Bermudez came out, opened the trunk, and got out the beige suitcase, which he placed behind the driver's seat; then he drove off.

Bermudez managed to shake his tail in the traffic. Thirty-five minutes later, though, the cops spotted the car in another part of Daly City, parked outside Jairo Meneses's house. Bermudez came out about two hours later and drove back to the first Daly City house.

The sequence of events provided the police with enough evidence to get a search warrant and they hit Bermudez's house in West Covina two days later, catching the dealer with three pounds of cocaine—an enormous amount for the times—which Bermudez promptly admitted he'd bought from Norwin Meneses. They also found $17,000 and a drug ledger bearing the entry: "11-11-81— $90,000 to Jairo." Bermudez was hustled off to jail and Smith got a warrant for Jairo Meneses' house.

On November 16 the police hit Jairo's place and caught him with drugs and drug paraphernalia. They found a plastic bag containing Thai stick, a potent form of grass, an envelope containing $9,000, an O'Haus triple-beam scale—the kind favored by drug dealers—a 12-gauge shotgun, a .22-caliber pistol, and "miscellaneous pictures, address books, photographs and passports."

Convinced that the family was a major trafficking organization, Smith said she asked her supervisor if she could work the case full-time. The answer was not encouraging. "He said, 'Well, that sounds like a good idea. Who would run it?"' Smith recalled, laughing. "I think it was just that, being a female, my credibility was somewhat in question."

The investigation soon fell apart. Julio Bermudez was released on bail and promptly skipped the country, never to be seen again. Once again, the San Francisco U.S. Attorney's office declined to pursue a case against Norwin or his nephew and the file was closed.

Smith said she never worked the Meneses family again. "They had me assigned to other things, like the Hell's Angels case, and I really didn't have enough time," she said. "This was a pretty big case to me, and I think had I been given free rein and some assistance and some time to do it, I think I could have really done something." But, she said, "I'm not so sure the DEA management took it seriously enough to allow me the time and the assistance I would have needed." She quit the DEA three years later.

Norwin Meneses said he was well aware that the DEA was after him in 1981, and came close to catching him during its investigation of Julio Bermudez. He was in love with Bermudez's sister, Patricia, at the time, and was often at the house in West Covina. The DEA, in fact, described Norwin as the owner of the three pounds of cocaine found with Bermudez.

But the arrests of one of his distributors and his nephews didn't slow him down a bit. According to Blandon, the Meneses organization moved 900 kilos of cocaine—almost a ton—into the United States in 1981, about $54 million worth at wholesale prices.

Blandon accepted Meneses's pitch to become a cocaine salesman for the Contras, he said, after he and the drug kingpin took a trip down to Honduras for another "pep talk" from CIA agent Enrique Bermudez. At a Contra camp near the Nicaraguan border, Bermudez "told them of the trouble the FDN was having in raising funds and obtaining equipment," and he exhorted them to raise money for the counterrevolution. "He was in charge, okay, how to raise money in California."

Meneses confirmed Blandon's account of the meeting with the CIA agent, who was an old friend of the Meneses family. "I've known him since he was a lieutenant," Meneses said, adding that his brother Edmundo had been friends with Enrique Bermudez even longer: "They'd known each other since childhood." Meneses, who was on an FDN fund-raising committee, said Bermudez put Blandon in charge of raising money in southern California. Meneses raised funds in the Bay Area and also screened and recruited potential Contra soldiers from the Nicaraguans who'd emigrated to the United States.

Meneses became Bermudez's intelligence and security adviser in California, he claimed; anyone recruited to fight for the Contras in Honduras had to pass his muster first, so the organization would be safe from Sandinista infiltrators. "It was an understanding between old friends," Meneses said of the job Bermudez gave him. "Nobody would join the Contra forces down there without my knowledge and approval."

Blandon confirmed that, telling the CIA that Meneses's role in the FDN operation in California was "primarily that of a personnel recruiter for the group."

Adolfo Calero, the CIA agent who was the head of the Contras' political directorate, denied that the two cocaine traffickers had any official positions with the FDN. But Calero confirmed that Meneses had come to Honduras to meet with Bermudez and had brought him a crossbow as a gesture of his esteem.

Another top Contra, former FDN director Edgar Chamorro, acknowledged that Meneses was involved with both the FDN and Bermudez. "It was very early, when the Contras did not have as many supporters as later," Chamorro said. "Very early the Contras were trying all kinds of things to raise funds. This man [Meneses] was connected with the Contras of Bermudez, because of the military kind of brotherhood among the Somoza military—the brotherhood of military minds."

Blandon insisted that Bermudez never mentioned drug sales during his fund¬ raising pitch, but from Blandon's description of Bermudez's instructions, that didn't appear necessary. The Contra commander apparently had a pretty good idea of what they were getting into. "There's a saying that the ends justify the means and that's what Mr. Bermudez told us in Honduras, okay?" Blandon said. "So we started raising money to the Contra revolution." Blandon doubted that Bermudez knew specifically they would sell cocaine to raise the cash, but Contra commander Eden Pastora has said it would be naive to think that Bermudez didn't know he was asking drug dealers for financial assistance. It was well known in prerevolutionary Nicaragua "that [Meneses] was involved in illicit or dirty business," Pastora said. "He had hotels and it was also said that he was involved in the sale of cocaine. In those days, cocaine sales was not very common."

Besides, at that point Bermudez's Contra group—the Legion of September 15 —was already busily involved in cocaine smuggling and Bermudez knew it, as did the CIA. In September 1981, Langley was informed by cable that the Legion's "leadership had made a decision to engage in drug smuggling to the United States in order to finance its anti-Sandinista operations." The cable said Bermudez reportedly had advised against the idea but apparently he hadn't objected too strenuously; the CIA cable reported that a successful "trial run" had already taken place. Langley was informed that a suitcase full of cocaine was smuggled onto a commercial airliner in July 1981 by a Legion officer, who then sold the dope in Miami and gave the profits to another Legion commander.

The CIA's Inspector General found no evidence that the CIA officials running the Contra program then did a thing about it.

At their meeting with Bermudez, Blandon said, Bermudez asked if he and Meneses "could assist in the procurement of weapons." In court testimony, Blandon called it "a mission" that took them to Costa Rica to "contact some people to get some connections from where to construct the Contra revolution. . .. We have to get in contact with someone that was going to—we were going to give some money to buy some weapons."

The trip had an inauspicious start, Blandon later told the CIA.

"Both he and Meneses were escorted to Tegucigalpa airport by armed Contras," a summary of his CIA interview states. "Unbeknownst to Bermudez and the Contras, Blandon says, he was carrying $100,000 in drug proceeds to be used in [a] Bolivian drug deal. In the process of departing the airport, Blandon was stopped and detained by Honduran officials. Blandon states that his Contra escorts, seeing that Blandon had been detained with money, assumed that Blandon had been given the funds by Bermudez to purchase arms for the Contras. As a result, the Contras interceded on Blandon's behalf, effected the return of the money, and secured Blandon's release."

In doing so, Blandon said, "the Contra escorts told the Honduran airport authorities that Blandon and Meneses were Contras. Blandon states he was allowed to leave the next morning and that he then joined Meneses, who had not been detained and who had been allowed to travel to Guatemala."

They were unable to contact the arms dealers they were looking for, Blandon said, and he returned to California with Meneses to begin his career in the cocaine business.

Meneses didn't simply hand him the dope. He brought Blandon to San Francisco for a two-day seminar on the intricacies of drug dealing. "Mr. Meneses explained to me how I, you know, how to see. . .the quality, how they sell it by the ounce, by kilo," Blandon said. Meneses also showed him how to transport the dmg undetected in pickup trucks by putting the cocaine in "the compartment of the door, the driver's side door." Meneses brought in a one-eyed Nicaraguan exile, Raul "El Tuerto" Vega, as a transportation consultant. Vega, who lived in L.A., was an old hand at driving dope cars for Meneses, and "Norwin wanted that I went with Raul Vega to show me how to drive, how to do it because he used to work more often."

Meneses was a fount of advice on how to avoid problems, Blandon explained. He told Blandon not to give out cocaine on credit; "Don't this, don't do a lot of things. But I didn't know to whom to sell it. But he told me go and visit a few people and I start." Meneses gave him two kilos of cocaine—worth about $60,000 each at the time—and the names of some customers in Los Angeles, and told him to hit the streets. The cocaine was provided at no cost, but with the understanding that Blandon would pay Meneses back out of the profits.

When Blandon began doing this is a matter of some conjecture. Blandon insists that he didn't actually sell his first ounce of cocaine until early in 1982. But others who knew him at the time say he was dealing dmgs in L.A. much earlier. Still others insist Blandon, like Meneses, was already a trafficker back in Somoza's Nicaragua, before the Sandinista revolution.

The Torres brothers would later tell the FBI that Blandon picked up his two kilos from Meneses in 1980. "Shortly after Blandon moved to the Los Angeles area Blandon was introduced to Norwin Menesis [sic] in the San Francisco, California, area by Donald Barrios," Jacinto Torres told the FBI. "In approximately 1980, Danilo Blandon, Frank Vigal [sic] and Douglas Diaz travelled to the San Francisco area where they obtained two kilograms of cocaine from Menesis. Blandon, Vigal and Diaz returned to the Los Angeles area where they had thirty days to sell the cocaine."

Frank Vigil is a Contra supporter who had worked as a public relations director for Norwin Meneses in one of Norwin's nightclubs in Managua. Though he admits being in Los Angeles in 1980, he denies traveling with Blandon to meet with Meneses or selling cocaine himself, although he says he knew Blandon was doing it. Blandon has identified Diaz as a man who would drive Meneses's cocaine to L.A. occasionally, but he said Diaz was not with him during his training period at Norwin's house.

Blandon's wife's uncle, economist Orlando Murillo, also agrees that Blandon was selling drugs for Meneses before 1982. "I was in Costa Rica and Chepita called me and said, 'I have serious problems with Danilo,"' Murillo recalled. Chepita told him they'd started a small business, but that Danilo was dealing dmgs and had gotten in debt to Meneses, who was now pressing her for the money. "I sent her another $5,000," Murillo said. He acknowledged that his money was probably used to pay off Meneses, but said Chepita "is my niece and my only relative. And Danilo is a very dangerous man. So I help her when I can."

Murillo placed the call from his frantic niece in "1981, February or January."

One DEA informant told the Justice Department that Blandon was a drug dealer even before he came to the United States, and had known Meneses for years, long before meeting up with him at LAX that day. Longtime Meneses employee Rafael Cornejo claimed that Blandon and Meneses "knew each other back in Nicaragua before the war. Danilo was sort of in the background of the group that hung around with Mundo. I'd see him at parties sometimes."

In an interview with journalist Georg Hodel, former Sandinista leader Moises Hassan—who is related to Blandon's mother-in-law, Vilma Pena Alvarez—said Blandon "was involved with drugs and contraband prior to the Sandinista takeover." Hassan had known Blandon since college, where Blandon was a student activist on behalf of Somoza's Liberal party.

The DEA, in a sworn statement filed in San Diego federal court, corroborated Hassan's statements. In a sealed search warrant affidavit filed in May 1992, DEA agent Chuck Jones wrote, "Blandon fled Nicaragua after the Samoza [sic] regime was deposed. Blandon had been a cocaine trafficker in Nicaragua prior to the fall of Samoza [sic] but had enjoyed protection through family political influence. Since about 1982, Blandon has been a cocaine trafficker in the United States."

At the time Jones made that statement, he was Blandon's case agent. Four years later, though, when defense attorneys accused federal prosecutors of hiding Jones's revealing affidavit from them, Agent Jones would suddenly remember that it wasn't Blandon he'd been referring to when he prepared the affidavit to search his storage locker. No, he claimed, he'd confused Blandon's background with Meneses's.

Regardless of when Blandon's career as a cocaine trafficker began, by the time he says he started selling drugs for the Contras, they were no longer just a ragtag group running around the jungles on their own. They were, by early 1982, the property of the Central Intelligence Agency.
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Sat Feb 14, 2026 12:08 am

"I never sent cash"

Between July 1979 and March 1981, Somoza's exiled supporters had made little headway in putting together any kind of organized opposition.

It wasn't for lack of trying. It was for lack of money.

The Legion of September 15—the hundred or so ex-Guardia men hiding out in Guatemala—survived through thievery and contract killings. Another group of exiles coalesced in Miami, calling themselves the National Democratic Union (UDN), which had a small armed branch in Honduras called the Revolutionary Armed Forces of Nicaragua (FARN). Both the legion and this second group— UDN-FARN—tapped into Miami's Cuban community, drawing financial support and volunteers from the rabidly anti-Communist Cubans, including men who had worked with the CIA on the Bay of Pigs operation in the 1960s.

The union of the Nicaraguan and Cuban exile communities in Miami was an obvious marriage. The Nicaraguans hated Daniel Ortega and the Sandinistas almost as much as the Cubans hated Fidel Castro. Castro had been giving the Sandinistas aid and comfort since the mid-1970s. After the war, Cuba provided key advisers to the Sandinistas on how best to beef up their own army and, most of all, their intelligence services.

As the Cubans had learned from twenty years of covert war with the United States and the CIA, the best defense against subversion was information. Who were your enemies? Who were the infiltrators? What were they planning?

The combination of the Cubans' advice and the Sandinistas' own experiences at the hands of Somoza's secret police led them to build an efficient and deadly secret police unit inside the Ministry of the Interior.

The Sandinistas made it difficult for any organized opposition to take root inside Nicaragua. As a result, the Contras were forced to rely on help from outsiders—exiles, many impoverished by their flight, and foreign governments. The first donation of military supplies appears to have come from the Miami group UDN-FARN in the fall of 1980. Its members scraped together enough money to buy a couple boxes of rifles from Miami sporting goods stores and a little radio equipment, which was boxed up and mailed to Honduras.

The crates were sent to the head of the Honduran national police, Gustavo Alvarez, an ardent anti-Communist who took up the Nicaraguans' cause. Alvarez saw that the guns from Miami got to the soldiers, who were still learning how to march and drill.

Meanwhile, Bermudez and other ex-Guardia officers with the Legion of September 15 made the rounds of South America's military governments, seeking donations to the cause. They found much sympathy but little cash.

One of the places they visited was Argentina. At that time, Argentina's military dictatorship was one of the most brutal in the world, and its generals were regarded as pariahs even by other military regimes in Latin America. The generals there had a deal for them.

A radio station in Costa Rica was broadcasting unpleasant news about the Argentinian military government, accusing it—correctly, as it turned out—of murdering political opponents and nonpolitical citizens alike by the thousands, sometimes by dropping them out of helicopters or burying them alive. The radio station was getting on the generals' nerves. If the Nicaraguans were serious about fighting their way back into power, the Argentines said, a little demonstration of their sincerity might not hurt. Why didn't they try to put Radio Noticias del Continente out of the broadcasting business?

The legion agreed to take care of the radio station and infiltrated a sapper team into Costa Rica, hitting the station about two in the morning on December 13, 1980. But the raiders didn't find the target quite as easy as they expected. Earlier Argentine military attempts to close it down—air-dropping drums of homemade napalm onto the station's roof, for instance—had caused the broadcasters to beef up their security. When the legion unit arrived, they found themselves attacking a pillbox. The raiding team was met by a hail of machine- gun fire and beat a hasty retreat, barely managing to toss a Molotov cocktail at a storage shed. Some were killed. On the way out the survivors were arrested by the Costa Rican police. All in all, it was a disaster.

But the Contras got a lucky break from the American political system that November. Jimmy Carter—whom the Contras despised for abandoning Somoza —was beaten in the November elections. A new team was coming to town, a different administration led by Ronald Reagan and George Bush, and it had a different outlook on what was happening in Central America.

When Reagan and Bush looked at Nicaragua, they didn't see a populist uprising against a hated and corrupt dictatorship, as did most of the world. They saw another Cuba taking root in their backyard, another clique of Communists who would spread their noxious seeds of dissent and discord throughout the region. And when they looked at the Contras, they didn't see the remnants of Somoza's brutal Guardia, or mercenaries doing hired killings and robberies. They saw plucky bands of freedom fighters.

Things couldn't have been clearer.

Within days of taking office, Reagan froze all aid to the Sandinista government. In March 1981 he authorized the CIA to begin exploring ways of undermining the Sandinistas and halting their shipments of arms to rebel groups in El Salvador, with whom the Sandinistas were ideologically aligned. CIA agents fanned out across the United States and Central America to begin taking stock of the scattered pockets of anti-Sandinista groups. They also began doling out money indirectly, to help keep the shoestring organizations afloat financially.

The Argentine military, which had been given the cold shoulder by the Carter administration, also noticed Washington's fresh new outlook. And they figured, quite correctly, that one sure way to get back into America's good graces was to help the Contras out. The next time the Contras came calling, in the spring of 1981, the Argentines were glad to see them, despite their bungled job on the radio station.

"We were practically official guests," former UDN-FARN commander William Baltodano Herrera told an interviewer in 1984. "The government took charge of everything. We were driven everywhere, invited out everywhere and we didn't have to pay for anything."

When it was time to go, the Argentines slipped Bermudez's legion $30,000 and gave UDN-FARN $50,000, but Baltodano said the money "was just to cover absolute necessities. One can hardly build a movement with $50,000. We could pay for our trip with that money."

By mid-1981 Argentine military advisers were secretly slipping into Honduras and Miami to teach the exiles how to run a guerrilla war. Dozens of Nicaraguans were also taken to Argentina for training at special schools there. Because of the secrecy attached, the Nicaraguans weren't let outside the safe house where their training was taking place. "It was in Buenos Aires, in a residential district about half an hour from Ezeiza airport," former Eegion of September 15 member Pedro Javier Nunez Cabezas recalled in a 1985 interview. "The training was purely theoretical, there was no practical instruction. We were taught theories of espionage, counterespionage, interrogation techniques, beating techniques, how to lead troops and psychological warfare. ... I didn't see anything of Buenos Aires." After the training, Nunez said, the legion "divided us up into working groups and handed out various assignments. A couple of the groups travelled to Miami."

Working closely with the Argentine trainers were General Alvarez's Honduran police, which helped the CIA covertly funnel supplies to the fledgling Contra units. Once again, Norwin Meneses can be found lurking in the background. His nephew, Jairo, confessed to federal prosecutors that he'd gone to Honduras in 1982 on behalf of Uncle Norwin "to negotiate terms of an agreement with officers of the National Military Police." Under that deal, cocaine seized by Honduran authorities would be sold to Meneses, who would smuggle the drugs out in automobiles bound for the U.S. "Approximately 10 to 20 kilograms per month were imported in this manner," Jairo Meneses reported. If that little conspiracy between Meneses and the Honduran government ever resulted in an investigation by a police agency, it is not apparent in the CIA or Justice Department files released thus far.

Outside Miami, Cuban Bay of Pigs veterans put up training camps for the Contras' new recruits and invited the press in to witness the Nicaraguans being drilled by former Green Berets. Other training camps were reported to have been set up in California and Texas, but little information about their locations and operations has emerged.

For the most part, however, the Contras were still disorganized, barely qualifying as an army. When the CIA got involved in early 1981, its first project became uniting the various groups under one umbrella. As things stood, the bands were too small to be taken seriously as a military threat, and dealing with them separately was too difficult for the CIA.

Enrique Bermudez was persuaded to move his Legion of September 15 from Guatemala to Tegucigalpa, Honduras, where the CIA was sending in dozens of new agents and operatives. The agency pressured the Miami-based UDN-FARN group to link up with Bermudez's men and form a new resistance group, to add yet another degree of separation from past image problems that might detract from the freedom fighter persona the Reagan administration was creating. "The gringos made no secret of the fact that if we wanted support from them, we'd first have to join forces," said former legion member Pedro Nunez.

The problem was that the two Contra groups hated each other.

UDN-FARN's commander, Fernando "El Negro" Chamorro, was a rabble- rouser who had fought for the Sandinistas against Somoza and attained immortality by helping to shoot a couple rockets at Somoza's bunker from the roof of the nearby Intercontinental Hotel in 1974. He was also known to have a drinking problem and a questionable work ethic, and he hadn't managed well within the new Sandinista government. Eventually, he broke completely with the ruling Sandinistas and drifted down to Costa Rica to join his older brother, Edmundo Chamorro, another former Sandinista. Together the Chamorro brothers became the military leaders of UDN-FARN.

The Chamorros' Contra group, with its connections to the Miami Cubans, was actually further along in developing an organized, regional opposition force than Bermudez's scruffy legionnaires. Though based in Costa Rica, UDN-FARN had established a small military camp in Honduras at the Cuban-owned Hacienda El Pescado, just outside the capital city of Tegucigalpa. "At that time, the UDN- FARN had the best connections with the Honduran capital and with the Honduran military and government," said former UDN-FARN commander Baltodano.

Baltodano's group wanted nothing to do with Bermudez's brutish outfit, resisting the CIA's desire that it join forces with the legion. The Chamorros regarded many of the ex-Guardia men of the legion to be war criminals who could never win popular support back home. "The Legion was entirely composed of ex-National Guards. Naturally one couldn't make a big splash with that in Nicaragua," Baltodano said. There were also indications that Bermudez was personally corrupt. In 1981 a group of legion officers voted to expel him from the organization for misuse of funds and lying. The mutiny was put down by Bermudez's Argentine backers.

The CIA eventually got its way. After top CIA officials met with their allies in the Honduran military, the Hondurans withdrew their support of the Chamorros' group and backed Bermudez's legion instead. If UDN-FARN wanted to stay in the Contra business, it would have to merge with Bermudez's ex- Guardia men.

And if it didn't want to merge—well, it would merge anyway.

An odd kind of "unity" meeting was held in August 1981 in the upstairs rec room of the legion's rented safe house in Guatemala City. With an Argentine military officer looking on, Bermudez signed a one-paragraph document stating that the Legion of September 15 and UDN-FARN "agree to join efforts and constitute a single organization that will be called the Nicaraguan Democratic Forces (FDN) in order to fight against the Sandinistas."

The Chamorro brothers boycotted the meeting rather than sit in the same room with Bermudez, which was fine with Bermudez, who regarded the Chamorros as closet Communists.

The legion moved to Honduras, and the FDN was officially born. Quickly the UDN-FARN Contras were pushed into the background and assigned to subordinate roles. The top jobs were filled by Bermudez and his murderous crew from the Legion of September 15. "By choosing to support Colonel Bermudez and the FDN over other Contra factions, the United States threw in its lot with the single most detested group of Nicaraguans," former New York Times reporter Stephen Kinzer, who covered the Contras, wrote in 1991. "American planners never seemed to grasp the simple fact that Nicaraguans hated the National Guard and would never support an insurgency directed by ex-Guardsmen."

The CIA's role in the FDN's creation—hidden at the time—was spelled out by former FDN director Edgar Chamorro in an affidavit filed with the World Court in the Hague in 1985. Chamorro, a former advertising executive and distant relative of the UDN-FARN Chamorro brothers, said the CIA paid for the meeting, rented the building, and drafted the agreement. "The name of the organization, the members of the political junta and the members of the general staff were all chosen or approved by the CIA."

As luck would have it, the CIA selected another one of Norwin Meneses's friends to assist Bermudez in running the FDN: Aristides Sanchez, a wealthy landowner whose brother Fernando had been Somoza's last ambassador to Guatemala after Edmundo Meneses was assassinated. Another Sanchez brother, Troilo, had been one of Norwin's friends and business partners in Managua. And yet another brother, Enrique, was partners in a Miami restaurant with Danilo Blandon's "friend from Miami," Donald Barrios, the man Blandon claims introduced him to Norwin Meneses.

Like Bermudez, Aristides Sanchez went on the CIA's payroll and began reporting daily to his CIA overseers. Together, Bermudez and Sanchez would become the heart and soul of the military side of the Contra organization. (The political side was left to CIA agent Adolfo Calero, the former manager of the Coca-Cola bottling plant in Managua, who also worked closely with Aristides Sanchez. Oliver North later called Sanchez "Calero's hatchet man.")

Though the FDN would change and merge with other groups over the years, the Bermudez-Sanchez alliance stood unchanged, thanks largely to the backing of the CIA. "Sanchez became one of the Contras' top political and military strategists, plotting logistics, buying supplies and delivering weapons," wrote the Miami Herald in his 1993 obituary. Throughout the 1980s, Sanchez was consistently described in the press as the Contras' supply chief. Norwin Meneses explained that when he was buying and delivering weapons and supplies to the FDN, "I dealt directly with Bermudez, and occasionally his assistant on minor things. I also worked with Aristides Sanchez. He was a very good friend of mine."

By November 1981 the Contra project was far enough along that the CIA moved to make its sponsorship of the FDN official. President Ronald Reagan was presented with a document known as National Security Decision Directive #17, which served as a blueprint for the U.S. government's plan to overthrow the Sandinista government. It called for the CIA to conduct a variety of covert operations—military and political—against the Sandinistas and asked for $19.95 million to do it with. The document made it clear that it was only a start. "More funds and manpower" would be needed later.

It was obvious to anyone that the CIA's $19 million wasn't going to go very far if a serious paramilitary operation was being planned. The paucity of the allocation, in fact, was used by former CIA deputy director Admiral Bobby Inman to ridicule a reporter's suggestion that the CIA was financing a Contra war machine. "I would suggest to you that $19 million or $29 million isn't going to buy you much of any kind these days, and certainly not against that kind of military force," Inman told a press briefing in 1982.

The covert operations, according to Reagan's directive, would be conducted "primarily through non-Americans." In particularly delicate situations, the agency would send in UCLAs—Unilaterally Controlled Latino Assets—to do the dirty work. That way, if any of them got caught, Langley could throw up its hands and insist it had no idea what was going on.

Reagan approved the intelligence finding, and in December 1981 he sent CIA director William Casey to present Congress with it, saying that the covert operations planned for Nicaragua were in the interest of U.S. national security. Under the law, a "finding" from the president and congressional notification was required if a major covert operation was being planned.

From that point on, the Contras were the CIA's responsibility. From late 1981 through most of 1984, the agency ran the show directly, doling out weapons and money, hiring subcontractors, ferrying supplies, planning strategy and tactics, and keeping tabs on its hirelings. As the Nicaraguans soon learned, their role was to fight and to obey orders. Someone else, usually an American CIA agent or an Argentine military trainer, would do the thinking for them. One order the Nicaraguans were repeatedly given was to vehemently deny any connection to the CIA.

Bermudez played that role to the hilt, angrily brushing off any press suggestions that the U.S. government had a hand in running the FDN. "We would never accept the role of American mercenary," Bermudez huffed.

Former FDN director Edgar Chamorro claimed that CIA advisers prepped them for their press conferences and told them to deny they had received any money from the U.S. government. "It was particularly important that we deny having met with any U.S. government officials," Chamorro recounted in his book Packaging the Contras.

Blandon said that when he began selling drugs for the FDN in Los Angeles, he was aware the U.S. government had somehow become involved with his organization but saw no direct evidence of it himself. "Maybe in the principal office in Honduras they were helping, but, no, because we were being helped by the Argentina people at that time," Blandon said.

To further insulate themselves from the Contras, CIA officials worked out a deal with the Argentine and Honduran generals. The Americans would supply the cash if the Argentines would supply the training and military advisers. The Hondurans would provide the clandestine bases from which the Contras would operate. As their part of the deal, both countries would get a lot better treatment —increased foreign aid and military support—from the U.S. government.

This tripartite agreement, however, did nothing to ease the financial woes of the Contra commanders. The $19 million in CIA money that Reagan had approved did not go to the Contras. In fact, they saw very little of it. Nearly all of that money was channeled through the Argentine military, both to preserve the CIA's "deniability" and to make sure the Argentines retained some semblance of control over the Nicaraguans. In essence, the CIA was paying the Argentine military to run its covert war. When the Contras needed cash, they had to go begging it from the haughty Argentines.

"They handled all the money. The Nicaraguans—from Bermudez, needing several hundred dollars for the rent on the Tegucigalpa safe houses, to a foot soldier on leave in the capital, asking for a couple of bucks to see a movie—had to get it from the Argentines," journalist Glenn Garvin, a Contra sympathizer, wrote in 1992. "That was just one of the ways, some subtle and some anything but, that the Argentines let it be known that they were in charge."

While the Contras were forced to beg for scraps, the Argentines were being paid $2,500 and $3,000 a month, "some just for sitting around at a desk cutting up newspapers," said Argentine adviser Hector Frances. Frances described "multi-million dollar purchases carried out by the Argentinian advisors in Honduras. . .furniture, equipment, tools, and office equipment; million-dollar purchases from a pharmacy near the Hotel Honduras Maya. . .where in a few months, the owner made himself a multi-millionaire, and also multi-million dollar accounts rung up at the Hotel Honduras Maya, where the Argentinian advisors lived for almost six months, occupying nearly an entire wing of the hotel." That the Contras had to grovel for handouts from the high-living Argentines rankled mightily. And though the Americans had promised to start sending guns, ammo, and equipment, it would be nearly a year before those supplies began arriving.

It was against that backdrop that Meneses and Blandon had been called to Honduras to meet with Enrique Bermudez, where they were told by the new FDN commander to raise money in California. It is understandable that they would have translated this to mean, by any means necessary. After all, crime had ensured the survival of Bermudez's legion in Guatemala.

And what was a little cocaine trafficking when compared to kidnappings and contract killings?

Danilo Blandon's first illegal Contra fund-raising efforts met with the same lack of success as had his legal rallies and parties, he said; the two kilos Meneses had given him to sell weren't moving because he knew nothing about the cocaine business.

"Well, it took me about three months or four months to sell those two keys because I don't know what to do," Blandon said. "Meneses told me, 'You go to— with two customers.' That wasn't enough, you know? Because in those days, two keys was too heavy."

Jacinto Torres, Blandon's large Nicaraguan car dealer friend, told the FBI that Blandon was unable to unload all the cocaine Meneses had dumped on him. "Torres stated that Blandon and the others only sold a few ounces of the two kilos to someone in the San Diego area. They gave the rest of the unsold cocaine to Raul Vega" (the one-eyed driver for Meneses who had helped train Blandon in San Francisco), the 1992 FBI report said.

"Mr. Meneses was pushing me every—every week, you know, 'What's going on?"' So Blandon said he had to turn to friends and acquaintances in the automobile business to cultivate customers. "I started getting some people," he said, but his cocaine deals were still small potatoes, selling only "ounces, ounces and grams at that time. . .. It's only for the money that we had to send. We start sending trucks, pickups, to the Contra revolution. We started sending clothes, medicines at that time."

He told CIA inspectors that he bought a pickup truck and "filled it with medical supplies and radios and turned it over to others to drive to Central America. He says that the truck was, in fact, later used by the FDN in Honduras." Between 1981 and 1982, he said, he also provided several thousand dollars in drug profits to finance the FDN's wing in Los Angeles. The drug money "was used to support the operating expenses—plane tickets, rent, office supplies, etc." Meneses was doing the same, Blandon said, estimating his in-kind contributions at about $40,000.

Most of the money he made from cocaine sales, Blandon said, was turned over to Meneses. How it got from Meneses to the Contras "was Meneses' problem, not mine. I give the money to Meneses. I bought some cars or whatever, some pickups, but the money, we gave him the money. ... I bought a lot of things, but I never sent cash."

Cash deliveries to the Contras, it turned out, were being handled by someone else—the unidentified Latin male whom DEA agent Sandra Smith had seen pick up two cocaine traffickers from L.A. at the San Francisco airport and drive to a modest row house in Daly City. And Agent Smith's gut feelings about the Meneses drug ring had been right on target. She'd discovered the first direct evidence of a Contra drug pipeline into California.
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Re: Dark Alliance: The CIA, the Contras ..., by Gary Webb

Postby admin » Sat Feb 14, 2026 12:18 am

Part 1 of 2

"God, Fatherland and Freedom"

In the fall of 1981, before his troubles began, Carlos Augusto Cabezas Ramirez was living, breathing proof that America could still be the land of opportunity for anyone willing to roll up his sleeves and work. The chubby thirty-five-year- old had always been willing to work his way to where he wanted to go. In Nicaragua, by the age of fourteen he was helping his mother support nine brothers and sisters. In 1970 he went to the United States, where he spent four years studying to become a commercial pilot, working nights as a janitor to support himself. He took his pilot's license back to Nicaragua and joined the National Guard, flying for Somoza's army and managing a crop-dusting company on the side.

Later Cabezas enrolled in the National University of Nicaragua, got an accounting degree, and was hired by the Bank of America. He became head of the Managua branch's foreign division, supervising seven employees in the sleek blue-and-white skyscraper that was the country's only high-rise office building. He got a law degree next, becoming a licensed attorney in 1978 and setting up a practice in Managua. But the next year, when the Sandinistas were on the outskirts of the capital, Cabezas was recalled to active duty as a fighter pilot. An ardent anti-Communist, he was happy to defend Somoza's government against the Sandinistas.

Near the end of the war, when the Guardia was desperately striking out at every perceived enemy, Cabezas took part in the terror bombings of the city of Masaya, something he still doesn't like to talk about.

On July 15, 1979, four days before the shooting stopped, Carlos Cabezas caught the last flight out of Managua. He came to San Francisco, where his wife, three young daughters, his mother, his brothers, and his sisters were already living. With a family to support, Cabezas needed a job—fast. He hired on as a sales agent for the Lincoln Insurance Company in San Francisco. He also took a second job as a night janitor at San Francisco's Hilton Hotel. In 1980, after only a year on the job, the Lincoln Insurance Company named him Sales Agent of the Year. He was given a plaque with an engraving of Abraham Lincoln on it, a prize he still proudly shows off to visitors at his tiny law office in Managua.

By 1981 his hard work was paying off. He sold his car, his wife Angela sold some jewelry, and, throwing in some savings, they scared up $10,000, enough for a down payment on a small row house in Daly City. In just two years he'd gone from being a homeless refugee to owning a piece of the American dream.

When time permitted, Cabezas did legal research for a couple of lawyers, mainly to keep his skills in tune. That work made him realize how much he missed the practice of law and the income that came with it. To be a lawyer in California, though, he would have to go back to law school and study for the grueling California bar exam. With a family to support, a $l,200-a-month mortgage, and two jobs, Cabezas couldn't think of any way to do it, until he thought of his ex-brother-in-law, Julio Zavala.

Two years older and recently divorced from Cabezas's sister Maritza, Zavala had plenty of money. Once Cabezas had been at Zavala's house when a friend of Julio's named Nestor Arana came by lugging a suitcase. It was full of cash, neatly wrapped and stacked. Zavala told the goggle-eyed Cabezas that part of his job involved taking money to Miami, and he was paying Arana to do it for him. Cabezas had asked if Zavala needed any help, but the inquiry was gently brushed aside.

The more Cabezas thought about it, the more it seemed that Julio Zavala was his ticket out of the dilemma he was in. If he could persuade Zavala to give him a loan, Cabezas figured he could quit his jobs long enough to go to law school and pass the bar. So in October 1981 he called Zavala and asked if he could come over and talk to him about an idea he had. Zavala said sure. And at that moment, Carlos Cabezas was screwed.

The reason Julio Zavala had so much money is because he was a cocaine dealer, and a fairly busy one at that. He wasn't anywhere near Norwin Meneses's global perch, but few were. Zavala was solidly midlevel. He sold kilos and ounces to street-level dealers, who then sold grams to users. For several years he'd been buying directly from a Colombian in San Francisco and a Nicaraguan in Miami, picking up a kilo for around $54,000 and turning it over for up to $68,000, more if he ounced it out. Business had been good. The day Cabezas called him, however, Julio Zavala was a worried man. Bad things had been happening all around him, and he was starting to get nervous.

His problems stemmed from some loose talk last spring in the lockup at the San Francisco County Jail.

Local DEA agents had busted several people in South San Francisco for possession of a half-kilo of cocaine. One of the women arrested was a Contra fund-raiser named Doris Salomon. She and a codefendant, Lilliana Blengino, were cooling their heels in the jail when Salomon ruefully mentioned that the cocaine they'd been busted over wasn't even hers. It had belonged to her boyfriend, Noel.

A month later, DEA agent Luis Lupin stopped by Blengino's house to see if she could be of some assistance to the authorities. Blengino didn't know much, she told Lupin, but Doris Salomon did say that she'd gotten the coke from her boyfriend, some guy named Noel. Lupin made a note of the name and filed it away.

When Salomon appeared in federal court five months later for a bail hearing, she made a passing reference to a boyfriend, a fellow named Julio Zavala. Agent Lupin, sitting in the courtroom, perked up. Could Julio Zavala be this "Noel" character that Blengino had told him about?

The agent hurried over to the jail and asked to see the visitors' log for the time Doris Salomon had been there. Bingo. Julio Zavala had come to see her three times in a span of eleven days. Unless she had more than one boyfriend while she was in jail, Zavala had to be Noel, Salomon's source of supply.

Checking with the San Francisco Police Department, Lupin discovered that Zavala, a Nicaraguan immigrant, was no angel. Just a month before Salomon was arrested, Zavala and another man had been nabbed trying to bust into a woman's apartment, allegedly to collect a drug debt from her husband. She called the police, and when the irate dealers were hustled out to the curb, the cops found five ounces of cocaine in the Cadillac that Zavala had parked outside. To be precise, it wasn't actually Zavala's Caddy—it had been stolen in Florida and presented to him as a gift from his Miami cocaine connection.

Lupin noticed that the other man arrested with Zavala that day, Edmundo Rocha, had been one of those pinched with Doris Salomon a month later. And there in Rocha's wallet the police had found a slip of paper with "Julio 349- 2790" written on it. It was a small world. The DEA started an investigation.

That was the way Zavala's luck had been going all year.

He'd been busted twice, his girlfriend had been busted, his friend Mundo Rocha had been busted twice. The charges against Zavala had been dropped each time, but he didn't like the odds of it happening again. Zavala was moving a lot of cocaine. He had customers in Miami, Los Angeles, Chicago, and San Lrancisco. He was also making inroads into Oakland's black community, selling to a couple of African-American dealers there. Unfortunately, the growth of his business was making it increasingly difficult for him to disguise what he was doing.

When asked, Zavala said he worked as a buyer for some supermarkets in Costa Rica, which helped cover his frequent travels to Miami and Central America. But that story didn't explain why the telephone in his apartment in San Mateo never stopped ringing, or the steady stream of people who came and went at all hours. What he needed to do was fade into the background for a while and lower his profile. Let someone else take the heat.

So when Carlos Cabezas came around with his hand out, Zavala didn't give him the brush like the last time. This time, he listened.

Cabezas told him of his plans to become a lawyer in the United States, "because I knew that there was no way for me to go back to my country since the revolution had taken over the power." He told Zavala that "in order for me to go to law school, I have to become a full-time student and I couldn't, you know, catch up if I was working two jobs."

Zavala appeared sympathetic, and when Cabezas was through, he "said he was going to help me to finance some and support my family since I had to quit my job." He couldn't actually give him a loan, he said, but if it was time and money Cabezas was after, Zavala had a suggestion: Come work for me. He could make as much as he did at both of his present jobs put together, and then some. Plus, he could do it in his spare time. It was the perfect job for him.

"He said I was going to be delivering cocaine and collecting money so he can stay a little bit cool," Cabezas would later testify. "At that time Mr. Zavala was having problems himself with some legal problems. And he said, 'I was lucky that the charge was dismissed and I don't want to get myself in this transaction, so I want you to work for me. I trust you. And then, you know, the heat is going, it would be off me for awhile.'"

Zavala told Cabezas he'd pay him $500 for each kilo of cocaine he delivered, plus a percentage of the drug debts he collected. And there was an added bonus that Zavala knew Cabezas would like, given his former brother-in-law's feelings about the Sandinistas: some of the cocaine they sold would help to finance the Contras. So Carlos Cabezas, who'd been a lawyer, an accountant, a pilot, an insurance salesman, a banker, a janitor, and a crop duster, became a cocaine dealer for a while.

At first he stayed around the San Francisco area, running errands, meeting Zavala's customers, delivering a few kilos here and there. The work was easy, Cabezas found, and the money was very good. One of his first errands had been to pick up a gold Toyota and drive it to the airport, where he was to meet a couple of Julio's friends from L.A. and bring them into town. Cabezas agreed to put them up at his house for the couple of days they would be around.  

That was when Carlos Cabezas first drew the attention of the federal government.

As part of her investigation into the Meneses drug ring, DEA agent Sandra Smith was watching when Cabezas arrived at the airport to pick up the two L.A. dealers she'd been tailing. When Cabezas drove them back to his little row house in Daly City, 8 Bellevue Avenue was added to the government's list of potential wiretap locations. Within two months the FBI had joined the chase. Scattered among Zavala's customers, the bureau had at least four confidential informants who were giving them chapter and verse: when the cocaine loads were arriving, when the couriers were coming and going, how much cocaine Zavala and Cabezas were selling, how much money was leaving the country. The evidence that the two Nicaraguans were involved in a major cocaine trafficking network piled up fast.

A recently declassified CIA Inspector General's report shows that the Agency had been wise to Zavala since 1980. That year a CIA operative reported that Zavala was supplying drugs to a Nicaraguan official who was a drug addict. The operative would keep the Agency apprised of Zavala's activities for years. In addition, the CIA has admitted that a relative of one of the people involved in the drug ring was working for the CIA at the time.

To Zavala, blissfully unaware of the gathering storm, it seemed as if things were finally looking up. Hiring Cabezas had been a stroke of genius. The customers liked him. He was dependable, a hard worker, and would probably start bringing in some customers of his own soon. Zavala was so pleased with himself that he decided to take some time off and celebrate. His girlfriend, Doris Salomon, had jumped bail and was waiting for him down in Costa Rica, he told Cabezas. He was flying down to join her, and his plans were to get married and spend his honeymoon down in Central America. He told Cabezas he'd see him after the holidays, and off he went.

So, after just a month and a half in the business, Cabezas began running a major drug ring, doing Zavala's job as well as his own. He started dealing directly with Zavala's cocaine suppliers and keeping the books, his accounting background helping him to record the operation's income and expenses meticulously.

Cabezas said the cocaine he and Zavala were selling came from two separate sources. One was Alvaro Carvajal Minota, a Colombian who lived in San Francisco. Carvajal was part of a ring of international cocaine dealers located in Cali, Colombia, a group that would later become known as the Cali cartel. By the early 1990s the Cali dealers would operate the world's biggest cocaine sales network, eclipsing the rival Medellin cartel in terms of power and money. But in late 1981 few in U.S. law enforcement circles were even aware of the cartels. Cabezas began making trips to Cali in 1982 to negotiate deliveries for Zavala.

The other source, Cabezas said, was someone down in Costa Rica. That cocaine would arrive by courier via Miami and would sometimes be brought to Cabezas's house for safekeeping.

Because each source had different prices and delivery costs, Cabezas kept two sets of books—one for the Costa Ricans and another for the Colombians— so everyone got paid what they were owed, without any mix-ups. The cocaine from Costa Rica was of a far higher quality than the Colombians' powder. It was Peruvian. And it was this cocaine, he said, that belonged to the Contras.

He got proof of that in December 1981 when Zavala called him from Costa Rica and told him to catch a plane down. Zavala wanted him to meet some friends of his.

The friends turned out to be two exiled Nicaraguans who were working with Norwin Meneses: Horacio Pereira Lanuza, a drug dealer and gambler known as La Burra (a female donkey), and Troilo Sanchez Herdocia, a playboy brother of FDN leaders Aristides and Fernando Sanchez.

Fernando Sanchez had been Somoza's last ambassador to Guatemala, replacing the slain Edmundo Meneses. The U.S. State Department, in a 1988 publication, described Fernando as the Contras' "representative in Guatemala." Troilo Sanchez had been a partner of Meneses in one of Norwin's nightclubs in Managua, and was one of his drinking buddies. A pilot, Sanchez said he flew for the CIA in the early 1960s during preparations for the Bay of Pigs invasion, which was partly staged from Nicaragua. But by the late 1970s he was a hopeless drug addict, spending large sums of his family's fortune on heroin, cocaine, women, and gambling. The Sandinistas seized what was left, and Troilo Sanchez and his wife, Isanaqui, fled to Costa Rica, where they became partners with Meneses in a bean-processing factory there.

"We are like family," Meneses said of Sanchez's wife in a 1986 interview. "She came many times to visit my brother Mundo, who was a general and the police chief of Managua and was later assassinated in Guatemala for the Sandinistas."

Horacio Pereira had also been a business partner of Meneses before the revolution. Meneses said they owned cattle and cattle ranches together and had known each other since childhood. Both were from Esteli, where Pereira controlled some gambling clubs.

Cabezas told CIA investigators that his December 1981 meeting in Costa Rica "was the genesis of an effort to raise money for the Contras by selling dmgs. Although the original reason for the meeting was purely social, Cabezas says Sanchez and Pereira raised the idea of selling cocaine as a means of raising funds for the Contras. Cabezas says Pereira and Sanchez discussed the idea with him because both knew of Cabezas' role in the Zavala organization. Although it was Sanchez's and Pereira's idea to raise funds for the Contras by engaging in dmg trafficking, Cabezas says it was Zavala who came up with the idea that Cabezas serve as a go-between by collecting the money from street dealers and delivering it to Central America." Zavala and Sanchez have denied any involvement in drug trafficking for the Contras.

On January 23, 1982, Zavala sent Cabezas back to Costa Rica with two other men to pick up two kilos of cocaine from Pereira. But Pereira was suddenly uncomfortable with the arrangements. "I went down there with those two people to Costa Rica, but apparently Mr. Pereira changed his mind because he said he had some information that Mr. Zavala was drinking very heavily and he was scared that Mr. Zavala was going to misuse that money that supposedly he said that he was helping the Contra revolution in Nicaragua," Cabezas would later testify. Pereira told Cabezas that "he was representing the UDN-FARN and FDN in Costa Rica and that they had chosen Zavala's organization to sell the cocaine they were getting in from Peru. He said the money was going to the Contras and that the CIA would control the delivery of the money."

Pereira's information about his ex-brother-in-law was correct, Cabezas conceded. Zavala had been drinking quite a bit, and he was starting to neglect his responsibilities, falling behind in his payments to the Colombians, who were getting annoyed. His dicey relationship with them would be the source of several arguments, Cabezas said. Sometimes, when the Colombians were really pressing for money, Zavala would take some of the Contras' cocaine and sell it to pay the Colombians, which played hell with Cabezas's accounting.

The wary Pereira suggested an alternative: He would deal directly with Cabezas. He would sell him the cocaine, and then Cabezas would become responsible for getting the Contras' money back to Costa Rica. But Cabezas was hesitant. "I explained to Mr. Pereira that I didn't have no clients and that if I have to sell the cocaine, I have to tell Mr. Zavala because I wasn't going to jump him," Cabezas later testified. "I wasn't going to do anything behind his back."

But Pereira insisted that Cabezas had to assume responsibility for the cash, "because the money belonged. . .to help the Contra revolution," Cabezas said. That was the only way, Pereira told him, that he would let go of the cocaine.

Cabezas called Zavala and explained the situation, and Zavala agreed to Pereira's terms. But Cabezas was no fool. Instead of his usual $500 per kilo payment, he wanted half of Zavala's profits, "because I am taking the responsibility of the money." Stuck, Zavala had no choice but to agree. In an interview with the CIA, Zavala confirmed that he was then cut off from Cabezas's dealings with Pereira and Sanchez.

Cabezas traveled with Pereira to San Pedro Sula in Honduras, where he met other members of Pereira's family. While there, he said, he stayed at the home of Pereira's brother-in-law, an exiled Nicaraguan attorney named Francisco Aviles Saenz, who had been educated in the United States. He spent two or three days in Honduras, waiting for "a Peruvian who would be bringing drugs for shipment to the United States." Before he left, Pereira gave Cabezas a bottle of whiskey, some souvenirs, and two hand-woven baskets from Peru, saying, "This one is for you and the other one is for Julio." Baffled that there was no cocaine, Cabezas took the gifts back to San Francisco.

When he showed the baskets to Zavala, Cabezas said, Zavala exclaimed, "These are not gifts!" and began ripping them apart. As Cabezas watched, Zavala stripped the basket down to its internal framework and, from inside the frame, pulled out long, thin, waxy strings that resembled skinny candles. Taking a razor blade, he slit them open and poured out a small pile of cocaine powder. Cabezas said each "candle" held about three ounces of cocaine, and each basket contained about a kilo.

Cabezas would later testify that he personally brought back twelve kilos from Pereira during the first part of 1982, earning about $17,000. He would tell CIA inspectors that "Contra mules, typically airline flight attendants" were also bringing the baskets into the United States, one kilo at a time. When the baskets arrived in San Francisco, it was Cabezas's job to dismantle them and extract the cocaine. How many kilos Pereira sent into the States is anyone's guess, but Costa Rican authorities claimed that he was the biggest cocaine trafficker in their country during the early 1980s.

For the next year, Cabezas said, he and others made regular trips to Miami and Costa Rica carrying money for the Contras. He told CIA investigators that "on average. . .he carried $64,000 on each of his 20 trips to Central America, although he also claims that he and another person once delivered about $250,000 to Pereira and Sanchez." FBI records show Zavala made a money- hauling trip to Costa Rica in early 1982, and said the amount he was carrying was a quarter million dollars. The FBI was informed early on that the Contras were deeply involved with the drug ring. In February 1982 an informant reported that Zavala "had been making silencers and sending them to Nicaragua for the revolution." The same informant also reported that Contra leader Adolfo Calero, the FDN's political boss and a longtime CIA agent, "was definitely involved in cocaine traffic." (It appears, however, that the informant may actually have been referring to Calero's brother, Mario, a Contra supplymaster based in New Orleans who was repeatedly linked to drugs and thievery.)

An FBI teletype shows that by November 1982 the bureau—thanks to its wiretaps and inside informants—knew exactly what was going on inside Zavala's drug ring. According to the report, from the San Francisco FBI office to the FBI director in Washington, "Zavala's sources of supply of this cocaine are: Troilo Sanchez, Fernando Sanchez and Horacio Pereira. All three are operating out of Costa Rica." As for Cabezas, "Cabezas's sources of supply for cocaine have been established as Troilo Sanchez, Fernando Sanchez, Horacio Pereira of Costa Rica, Humberto and Fernando Ortiz of Colombia, Sebastian Pinel of Los Angeles and Alvaro Carvajal Minota of San Francisco."

(Though the FBI didn't realize it, that cable exposed yet another L.A.-based Contra drug dealer, Sebastian Pinel. He first appeared in the CIA's files in late 1980, at the inception of the CIA's counter-revolutionary experiments. The CIA identified Pinel as the leader of an unnamed Contra group in Honduras, and knew the Contra boss was a reputed dope trafficker, describing him as a "partner" and "best friend" of Horacio Periera, Norwin's Costa Rican cocaine broker.)

Cabezas was also taking $50,000 a month to the Contras' Miami offices, located in a shopping center near the Miami airport. Often he would give the money directly to FDN leader Aristides Sanchez, the brother of his suppliers Troilo and Fernando. Aristides Sanchez died in 1993; he was still working on behalf of the Contras at the time of his death, according to a laudatory obituary in the Miami Herald.

Cabezas told the CIA that "he never specifically told Aristides Sanchez that the money came from drug proceeds but only that it was from Troilo. Cabezas said he assumed Aristides Sanchez must have known what Troilo was involved in." Other Contras certainly did. Former Contra official Leonardo Zeledon Rodriguez told UPI in 1986 that "Troilo sold 200 pounds of cocaine and received $6.1 million for it."

The money Cabezas took to Central America was given to Pereira or an FDN logistics officer, Joaquin "Pelon" Vega, who lived in Danli, Honduras, Cabezas said. He assumed the money was used to buy food and clothing for the newly formed guerrilla army. (Vega could not be located by the author.)

On one of his trips to Costa Rica with Contra cash in April or May of 1982, Cabezas told CIA investigators, he was called to a meeting at a San Jose hotel, where Pereira and Troilo Sanchez introduced him to a curly-haired, solidly built man he'd never seen before. The man called himself Ivan Gomez and told Cabezas that he was with the CIA—the agency's "man in Costa Rica." Gomez said he was there, Cabezas said, "to ensure that the profits from the cocaine went to the Contras and not into someone's pocket." Cabezas saw the CIA agent only once more, in late summer, when he was met at the San Jose airport by Pereira and the CIA man, but Gomez never spoke during the second meeting.

In an interview with a British television crew in late 1996, former CIA official Duane "Dewey" Clarridge said he'd never heard of Ivan Gomez. Clarridge was the CIA officer who headed the Contra project from 1981 to 1984 and was later indicted for lying to Congress about the Iran-Contra scandal. He was pardoned by President George Bush, a former CIA director.

The 1998 CIA Inspector General's report strongly suggests Dewey Clarridge was lying once again, and it largely corroborates Cabezas' story. The CIA report confirms that an agent using the name "Ivan Gomez" was assigned to Costa Rica in 1982. As Cabezas claimed, he was the CIA's liaison to the Costa Rican Contra armies and, more importantly, was laundering drug money during the period in which Cabezas says he was delivering cocaine profits to the agent.

Gomez, a former Venezuelan military officer, admitted during CIA- administered polygraph tests in 1987 that in March or April of 1982 he had been involved in laundering funds for drug dealers, but he claimed the dopers were relatives. (Since Cabezas did not disclose his contacts with agent Gomez until 1996, the polygraph examiner apparently did not ask the CIA agent about laundering cash for the Contras.) Despite Gomez's admissions, the CIA Inspector General dismissed Cabezas' story as an invention, suggesting that the trafficker could not have met Gomez because the agent hadn't yet arrived in Costa Rica when Cabezas recalls meeting him. But the CIA report fails to explain how a San Francisco cocaine dealer could so accurately dream up the alias of an undercover CIA agent stationed in Costa Rica, describe his role with the Contras with such precision, and pinpoint to within 30 days the time period during which the agent admits laundering drug money. Moreover, a former CIA asset who'd infiltrated the Frogman drug ring corroborated key elements of Cabezas' story in interviews with the Justice Department in 1997.

Gomez was fired by the CIA in 1989 because of his repeated inability to pass polygraph tests concerning his drug dealing. The CIA toyed with the idea of reporting him to the Justice Department but decided against it and simply cut him loose.

"It is a striking commentary on me and everyone that this guy's involvement in narcotics didn't weigh more heavily on me or the system," Gomez's former supervisor told CIA inspectors in 1997. His only interest in Gomez, he said, was to help "salvage" a good agent, which suggests that involvement in drug money laundering wasn't viewed by the CIA as the type of infraction that should necessarily ruin an agent's career.

"Gomez" told the CIA inspectors he'd never met Cabezas or the other traffickers.

Based on Cabezas's statements and the historical record from the early days of the Contra conflict, it appears that most of the cocaine profits Cabezas was delivering to Costa Rica in 1982 went to assist the Contras of the UDN-FARN faction, which at that time was under CIA supervision. A 1984 DEA report described UDN-FARN's deputy commander, Edmundo Chamorro, as "well known to 'The Company.'" So was his brother, UDN-FARN's commander, Fernando "El Negro' "Chamorro, whom the CIA describes as "playing a major role in the Contra movement. . .CIA contact with Chamorro began in 1982."

For most of 1982, UDN-FARN served, however unwillingly, as the southern branch of the CIA's primary Contra force—the FDN—run by Meneses's friend Enrique Bermudez and his Honduran-based former Guardia men. But in September of that year, when former Sandinista commander Pastora announced he was taking up arms against his old Sandinista colleagues, UDN-FARN jumped ship, leaving the FDN and officially uniting with Pastora's group to form a brand-new Contra army in Costa Rica, known as ARDE.

At that point, it is likely that the cocaine profits from Meneses's San Francisco operation began being used to benefit ARDE. Even then, however, the CIA retained oversight responsibility. When the Chamorros switched from the FDN to the ARDE, they simply changed their line of command. Instead of reporting to Bermudez, as they had been doing, they now reported to Pastora. But both Pastora and Bermudez were still reporting to the CIA. Like Bermudez, Pastora was put on the CIA's payroll, where he remained until mid-1984.

The merger between the Chamorro brothers and Pastora's group made sense politically because they had one trait in common, aside from their preference for fighting from Costa Rica: as former Sandinistas, they hated the ex-Guardia officers who made up the FDN. Pastora frequently outraged his CIA handlers by publicly complaining about his purported allies to the north, once picturesquely referring to them as "criminal mummies and gorillas." Bermudez and the FDN considered Pastora a closet Communist and suspected him of being a Sandinista mole.

Carlos Cabezas said his Contra money flights to Costa Rica continued throughout 1982 but were interrupted near the end of that year, when Horacio Pereira was arrested in Florida. Cabezas said one of the FBI's informants, Donald Peralta, a man who had accompanied him to Costa Rica on several occasions to deliver cash, tipped off the FBI that Pereira was heading south with a wad of greenbacks.

FBI records show that on December 1, 1982, a confidential source told FBI agent David Alba that "Horacio Pereira and Augusto Monkel would be traveling from San Francisco via Miami to San Jose, Costa Rica, with between $80,000 and $100,000, which was the proceeds of cocaine sales in San Francisco." Alba called U.S. Customs, and the next day Pereira was arrested in Miami, boarding Air Florida Flight 473 to Costa Rica. The agents found $70,000 on him, which he had failed to declare.

FBI wiretap records show that Cabezas was in contact with Pereira's cousin, Rosita, soon afterward. "Horacio going to court tomorrow," the FBI's notes of that phone call say. "Carlos has some money to help Horacio. The money taken by Customs will be kept. Carlos asked why Troilo has not called. Horacio was interviewed but did not mention Carlos' name. Carlos wants Horacio to call tomorrow."

On Christmas Eve, after he was bailed out, Pereira called Cabezas and told him that he'd been set up and needed some money. Cabezas replied that "Jairo is giving him money," an apparent reference to Norwin Meneses's nephew, Jairo Meneses.
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