Money-Laundering Scheme Squashed; Customs Agents Recover $30 million.(NATION)

The Washington Times (Washington, DC), December 8, 2002 | Go to article overview

Money-Laundering Scheme Squashed; Customs Agents Recover $30 million.(NATION)


Byline: Jerry Seper, THE WASHINGTON TIMES

Federal agents have smashed an $80 million international money laundering scheme involving the diversion of illicit profits from Colombian drug dealers through life insurance companies in the United States, the isle of Man and other offshore locations.

A two-year undercover investigation, known as "Operation Capstone" and led by the U.S. Customs Service, netted nearly $30 million in cash, life insurance policies and bonds, and nine arrests in Colombia.

Panamanian authorities, who took part in the multinational probe, also froze $1.2 million in accounts based on evidence uncovered in Colombia and from federal prosecutors in Florida Friday. The Florida prosecutors announced grand jury indictments against five Colombian nationals on money laundering violations.

The probe continues, and officials expect additional arrests and seizures.

"This investigation reveals that there are no limits to which drug traffickers and their money laundering accomplices will go to hide and clean their illegal drug profits," said U.S. Customs Commissioner Robert C. Bonner. "Here, they used life insurance to invest and cleanse their dirty money.

"The life insurance industry must be ever-vigilant in preventing the use of its industry to launder the profits of criminal syndicates," he said.

Customs spokesman Jim Michie described the money-laundering scheme as a sophisticated plan in which Colombian drug cartels purchased life insurance policies through brokers in the United States, the Isle of Man and other locations, listing their associates as the beneficiaries.

The policies were funded by tens of millions of dollars in drug profits sent in checks and wire transfers to the insurance companies by third parties around the globe, he said. Once a policy was created, a policyholder could fund it beyond its face value and make early withdrawals.

Mr. Michie said investigators found that the cartels routinely liquidated their drug-financed life insurance policies after short periods of time, despite penalties for the early withdrawals. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Money-Laundering Scheme Squashed; Customs Agents Recover $30 million.(NATION)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.