Jun 032013
 

The Blaze
Jason Howerton

A high-ranking Mexican drug cartel operative currently in U.S. custody is making startling allegations that the failed federal gun-walking operation known as “Fast and Furious” isn’t what you think it is.

It wasn’t about tracking guns, it was about supplying them — all part of an elaborate agreement between the U.S. government and Mexico’s powerful Sinaloa Cartel to take down rival cartels.

The explosive allegations are being made by Jesus Vicente Zambada-Niebla, known as the Sinaloa Cartel’s “logistics coordinator.” He was extradited to the Chicago last year to face federal drug charges.

Sinaloa Cartel Operative Jesus Vincente Zambada Niebla Makes Explosive Allegation About Operation Fast and Furious

Zambada-Niebla claims that under a “divide and conquer” strategy, the U.S. helped finance and arm the Sinaloa Cartel through Operation Fast and Furious in exchange for information that allowed the DEA, U.S. Immigration and Customs Enforcement (ICE) and other federal agencies to take down rival drug cartels. The Sinaloa Cartel was allegedly permitted to traffic massive amounts of drugs across the U.S. border from 2004 to 2009 — during both Fast and Furious and Bush-era gunrunning operations — as long as the intel kept coming.

This pending court case against Zambada-Niebla is being closely monitored by some members of Congress, who expect potential legal ramifications if any of his claims are substantiated. The trial was delayed but is now scheduled to begin on Oct. 9.

Zambada-Niebla is reportedly a close associate of Sinaloa Cartel kingpin Joaquin “El Chapo” Guzman and the son of Ismael “Mayo” Zambada-Garcia, both of which remain fugitives, likely because of the deal made with the DEA, federal court documents allege.

Based on the alleged agreement  ”the Sinaloa Cartel under the leadership of defendant’s father, Ismael Zambada-Niebla and ‘Chapo’ Guzman, were given carte blanche to continue to smuggle tons of illicit drugs into Chicago and the rest of the United States and were also protected by the United States government from arrest and prosecution in return for providing information against rival cartels which helped Mexican and United States authorities capture or kill thousands of rival cartel members,” states a motion for discovery filed in U.S. District Court by Zambada-Niebla’s attorney in July 2011.

A source in Congress, who spoke to TheBlaze on the condition of anonymity, said that some top congressional investigators have been keeping “one eye on the case.”  Another two members of Congress, both lead Fast and Furious Congressional investigators, told TheBlaze they had never even heard of the case.

One of the Congressmen, who also spoke to TheBlaze on the condition of anonymity because criminal proceedings are still ongoing, called the allegations “disturbing.” He said Congress will likely get involved once Zambada-Niebla’s trial has concluded if any compelling information surfaces.

“Congress won’t get involved in really any criminal case until the trial is over and the smoke has cleared,” he added. “If the allegations prove to hold any truth, there will be some serious legal ramifications.”

Earlier this month, two men in Texas were sentenced to 70 and 80 months in prison after pleading guilty to attempting to export 147 assault rifles and thousands of rounds of ammunition to Mexico’s Los Zetas cartel. Compare that to the roughly 2,000 firearms reportedly “walked” in Fast and Furious, which were used in the murders of hundreds of Mexican citizens and U.S. Border Agent Brian Terry, and some U.S. officials could potentially face jail time if they knowingly armed the Sinaloa Cartel and allowed guns to cross into Mexico.

If proven in court, such an agreement between U.S. law enforcement agencies and a Mexican cartel could potentially mar both the Bush and Obama administrations. The federal government is denying all of Zambada-Niebla’s allegations and contend that no official immunity deal was agreed upon.

To be sure, Zambada-Niebla is a member of one of the most ruthless drug gangs in all of Mexico, so there is a chance that he is saying whatever it takes to reduce his sentence, which will likely be hefty. However, Congress and the media have a duty to prove without a reasonable doubt that there is no truth in his allegations. So far, that has not been achieved.

Zambada-Niebla was reportedly responsible for coordinating all of the Sinaloa Cartel’s multi-ton drug shipments from Central and South American countries, through Mexico, and into the United States. To accomplish this, he used every tool at his disposal: Boeing 747 cargo planes, narco-submarines, container ships, speed boats, fishing vessels, buses, rail cars, tractor trailers and automobiles. But Guzman and Zambada-Niebla’s overwhelming success within the Sinaloa Cartel was largely due to the arrests and dismantling of many of their competitors and their booming businesses in the U.S. from 2004 to 2009 — around the same time ATF’s gun-walking operations were in full swing. Fast and Furious reportedly began in 2009 and continued into early 2011.

According Zambada-Niebla, that was a product of the collusion between the U.S. government and the Sinaloa Cartel.

Sinaloa Cartel Operative Jesus Vincente Zambada Niebla Makes Explosive Allegation About Operation Fast and Furious

The claims seem to fall in line with statements made last month by Guillermo Terrazas Villanueva, a spokesman for the Chihuahua state government in northern Mexico who said U.S. agencies ”don’t fight drug traffickers,” instead “they try to manage the drug trade.”

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Jan 252013
 

Guardian
Glenn Greenwald

A new PBS Frontline report examines a profound failure of justice that should be causing serious social unrest

Eric Holder Breuer

Eric Holder talks to DOJ Criminal Chief Lanny Breuer in 2010.

PBS‘ Frontline program on Tuesday night broadcast a new one-hour report on one of the greatest and most shameful failings of the Obama administration: the lack of even a single arrest or prosecution of any senior Wall Street banker for the systemic fraud that precipitated the 2008 financial crisis: a crisis from which millions of people around the world are still suffering. What this program particularly demonstrated was that the Obama justice department, in particular the Chief of its Criminal Division, Lanny Breuer, never even tried to hold the high-level criminals accountable.

What Obama justice officials did instead is exactly what they did in the face of high-level Bush era crimes of torture and warrantless eavesdropping: namely, acted to protect the most powerful factions in the society in the face of overwhelming evidence of serious criminality. Indeed, financial elites were not only vested with immunity for their fraud, but thrived as a result of it, even as ordinary Americans continue to suffer the effects of that crisis.

Worst of all, Obama justice officials both shielded and feted these Wall Street oligarchs (who, just by the way, overwhelmingly supported Obama’s 2008 presidential campaign) as they simultaneously prosecuted and imprisoned powerless Americans for far more trivial transgressions. As Harvard law professor Larry Lessig put it two weeks ago when expressing anger over the DOJ’s persecution of Aaron Swartz: “we live in a world where the architects of the financial crisis regularly dine at the White House.” (Indeed, as “The Untouchables” put it: while no senior Wall Street executives have been prosecuted, “many small mortgage brokers, loan appraisers and even home buyers” have been).

As I documented at length in my 2011 book on America’s two-tiered justice system, With Liberty and Justice for Some, the evidence that felonies were committed by Wall Street is overwhelming. That evidence directly negates the primary excuse by Breuer (previously offered by Obama himself) that the bad acts of Wall Street were not criminal.

breuer frontline

Numerous documents prove that executives at leading banks, credit agencies, and mortgage brokers were falsely touting assets as sound that knew were junk: the very definition of fraud. As former Wall Street analyst Yves Smith wrote in her book ECONned: “What went on at Lehman and AIG, as well as the chicanery in the CDO [collateralized debt obligation] business, by any sensible standard is criminal.” Even lifelong Wall Street defender Alan Greenspan, the former Federal Reserve Chair, said in Congressional testimony that “a lot of that stuff was just plain fraud.”

A New York Times editorial in August explained that the DOJ’s excuse for failing to prosecute Wall Street executives – that it was too hard to obtain convictions – “has always defied common sense – and all the more so now that a fuller picture is emerging of the range of banks’ reckless and lawless activities, including interest-rate rigging, money laundering, securities fraud and excessive speculation.” The Frontline program interviewed former prosecutors, Senate staffers and regulators who unequivocally said the same: it is inconceivable that the DOJ could not have successfully prosecuted at least some high-level Wall Street executives – had they tried.

What’s most remarkable about all of this is not even Wall Street had the audacity to expect the generosity of largesse they ended up receiving. “The Untouchables” begins by recounting the massive financial devastation the 2008 crisis wrought – “the economy was in ruins and bankers were being blamed” – and recounts:

“In 2009, Wall Street bankers were on the defensive, worried they could be held criminally liable for fraud. With a new administration, bankers and their attorneys expected investigations and at least some prosecutions.”

Indeed, the show recalls that both in Washington and the country generally, “there was broad support for prosecuting Wall Street.” Nonetheless: “four years later, there have been no arrests of any senior Wall Street executives.” Continue reading »