Mexican national with alleged ties to money laundering, is fighting to re-enter Vancouver

By Christine Duhaime | September 22nd, 2019

The Vancouver Sun has an interesting story here about an immigration case in the Federal Court of Canada involving alleged money laundering of a politically exposed person (“PEP”) with ties to the leader of a Mexican political party called the National Action Party.

Sergio Antonio Reyes Garcia, a Mexican national, arrived in Vancouver on March 3, 2019, and was denied the right to re-enter Canada. The CBSA alleges that he made a misrepresentation on his application to visit Canada by making a false statement on his immigration application.

The CBSA alleges moreover, that Reyes Garcia was affiliated with a company registered in Vancouver that was used to launder millions of dollars to banks in Switzerland.

The company, Kross Investments Ltd., is allegedly tied to another Mexican foreign national who appears to be in Vancouver, named Manuel Barreiro Castañeda.

Cellular communications between the two men appear to connect them to a money laundering investigation in Mexico and Kross Investments Ltd. in British Columbia, and contain evidence of financial transactions involving money sent from Mexico through the BC corporate entity’s bank account to a Swiss bank. Allegedly, over $2 million was moved.

Reyes Garcia appears to have confirmed that Barreiro is his business partner, and said that when he first came to Vancouver in 2018, Barreiro was living in Vancouver and they shared an apartment. Barreiro is apparently listed in the corporate records of Kross Investments Ltd. This article says he entered into a plea agreement with Mexico in respect of an investigation and that he has corporate entities not only in Canada but also in Gibraltar, a well-known tax haven. Barreiro is also a PEP.

The CBSA alleges that Reyes Garcia is the subject of a complaint in Mexico that involves alleged laundering money.

Money from Mexico would have been flagged through the financial system and stopped, hence the gamble from an anti-money laundering perspective, of going through banks in Vancouver.

Reyes Garcia’s defence is that he did not commit a misrepresentation on his application to enter Canada and did not launder funds through Canada from Mexico.

This article from Mexico dated February 2018, says that Barreiro “fled to Canada” and a Juan Carlos Reyes Garcia (different first two names but could be the same person) is mentioned with him in a complaint filed by the government of Mexico in connection with the alleged use of fake companies in Canada by Barreiro, which have a connection to real estate acquired for an innovation park in Mexico tied to the former presidential candidate Ricardo Anaya Cortés. A case against the presidential candidate over alleged money laundering was dropped.

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American ICO lawyer with ties to Canadian Blockchain entities, arrested by FBI for alleged extortion

By Christine Duhaime | September 19th, 2019

The FBI arrested Steven Nerayoff, a US lawyer known for his work on advising ICOs, including the Canadian ICO Ethereum, yesterday and he was charged  with extortion by the DoJ in the Eastern District of New York.

According to a complaint unsealed yesterday, Nerayoff is alleged to have threatened to destroy a company launching an ICO in Seattle if they did not pay him millions of dollars.

Nerayoff was retained by the company to assist it to launch an ICO for commission of 22.5% of all funds raised and 22.5% of all of the coins issued pursuant to the ICO. Just before the ICO was to launch, Nerayoff allegedly told his client it would have to pay him almost double the commission (equal to $8.75 million back then) or he would destroy the company and sabotage the ICO.

The client paid the additional funds. Nerayoff did not perform additional legal or other services for the increased commission.

Nerayoff introduced a guy named Michael Hlady to the company who alleged he was a member of the secret service and had taken down a head of state. Subsequently, they both allegedly threatened the company with its destruction unless they paid them more money. Hlady was associated with Alchemist.

Part of the alleged extortion involved a course of conduct whereby Nerayoff and Hlady undertook searches to find out the name and location of the child of one of the startup’s founders who was a woman and looked up her previous employment history and let her know that they had that information; then they asked for large sums of money including an incident where Hlady allegedly woke the woman co-founder up from sleep one night to tell her that if the startup did not give him $10 million, he would destroy her and harm her company.

Nerayoff runs a Blockchain company called Alchemist which allegedly advises the Toronto ICO called AION. The bio of Nerayoff says he created the concept of ICOs, and says that he co-owns CasperLabs, a proof of stake startup, through a parent company.

Nerayoff has other Canadian connections besides Ethereum and AION – he says he is the chairman of a TSXV listed company called Global Blockchain (now Global Gaming) Technologies, a reporting issuer in British Columbia. In its investor disclosure, it promised investors that their investment would be used to make Global Blockchain Technologies become the SWIFT of Blockchain, which has not yet happened. Here Global Blockchain is pumped as the “world’s first publicly traded stock that invests in top-tier Blockchain and digital currency innovations.” And Nerayoff also says he is an advisor for the ICO of Toronto-based Polymath; the latter confirms he is their advisor. Polymath represented that Nerayoff is the co-founder of Ethereum.

Global Blockchain Technologies, in its public disclosure documents, disclosed that it paid US$2 million to Kodak to buy all of the pre-ICO Kodak coins in 2018, and owns 12.8% of Toronto based Hyperion Crypto Exchange Inc., which it says is licensed by the SEC. It also disclosed that it invested $5 million into Hyperion Crypto Exchange Inc., and that the Exchange was launching in association with a major government.

Hyperion Crypto Exchange Inc. appears to be the same entity as Hyperion Technologies, also based in Toronto. The CEO is the same and its CFO was the CFO of Global Blockchain Technologies. According to this article, Hyperion acquired assets from the Canadian ICO company Vanbex, which like Nerayoff, also was hired by Polymath in connection with its ICO in Canada. In August 2018, Hyperion (the exchange entity) said it was licensed in the US as an ATS (alternative trading system) and had a positive relationship with the OSC. Entities registered with the SEC as an ATS are here – Hyperion does not appear to be on the list.

Recently, Polymath and Nerayoff joined forces on an Alchemist accelerator to advise Blockchain startups, and Nerayoff is listed as a key advisor with many other Toronto-based Blockchain related companies, many of whom appeared with him at a Canadian ICO Conference held in 2018, below, in which Nerayoff was featured.

In the video, below, on YouTube, Nerayoff is interviewed at a Canadian organized Polymath sponsored event, in which he describes his role as an inventor of what he calls “token ICOs” and promotes Polymath’s ICO.

The Canadian ICO Conference organizer posted Nerayoff’s photo on social media at the event with the following words: “The SEC tried to spook the market with subpoenas – don’t let big brother get you down – the truth shall prevail!” 

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SEC charges another lawyer with issuing false closing opinion

By Christine Duhaime | September 17th, 2019

The SEC and the US DoJ have both charged another lawyer, Jan D. Atlas from Florida, in connection with issuing closing opinions that allegedly contained false information in connection with the raising of more than US$322 million from 3,600 investors in a company called 1 Global Capital LLC.

In May 2016 and in August 2016, as external securities counsel, Atlas wrote two closing opinions for 1 Global Capital in which he opined, allegedly based on false information, that the securities issued by 1 Global Capital did not qualify as securities. In addition to acting as external counsel, the SEC alleges that Atlas was paid commission for the sale of the securities and earned US$627,000 from the financings.

The SEC alleges that 1 Global Capital raised funds in violation of securities legislation, of which US$32 million was allegedly used by its founder to fund his luxurious lifestyle, and that by issuing false closing opinions, Atlas assisted in investor fraud. Despite raising US$322 million, 1 Global Capital ran out of money in two years and filed for bankruptcy.

Closing opinions by lawyers in securities law serve a gate-keeping function to protect the integrity of the capital markets because brokers, regulators and investors rely solely on closing opinions to close a financing.

You can read here for a more lengthy summary of the gate-keeping function of closing opinions written by law firms.

This appears to be the fourth case in as many months where the SEC goes after securities lawyers for false closing opinions – thus far, they have charged two Canadian lawyers and two US lawyers in respect of closing opinions that contributed to securities law fraud which harmed the public.

This prosecution is slightly different than the others in that while the opinion by the lawyer was a closing opinion and not a legal opinion, it contained opinions in respect of whether the issuance of securities was the issuance of securities, which may be relevant for the initial coin offering space where numerous lawyers in the US issued similar opinions as to whether the issuance of digital currencies were securities and triggered securities legislation.

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Eagle Scout who became a Bitcoin multi-millionaire by selling fentanyl-laced pills on Canadian darknet site, found guilty of super kingpin charges

By Christine Duhaime | September 16th, 2019

$1.2M in proceeds of crime in sock drawer of Shamo.

Super kingpin fentanyl dealer

Aaron Shamo, who was an Eagle Scout and a Mormon, was found guilty at the end of August in Utah of continuing a criminal enterprise on the darknet and selling fake oxycodone pills laced with fentanyl. He is expected to be sentenced to life imprisonment under the “super kingpin” laws, similar to the sentence given to Ross Ulbricht, the founder of Silk Road, similarly for being a super drug kingpin.

Shamo was convicted of several other charges, including money laundering.

The super kingpin charges are used for drug lords, such as El Chapo, where there is evidence established that the person was the principal organizer or administrator of a drug enterprise. The statute requires a term of life imprisonment upon conviction.

Shamo distributed more than 12,000 grams of drugs including fentanyl ordered from China, paid for with Bitcoin.

In addition to distributing drugs, he manufactured pills that he advertised as oxycodone which were in fact fentanyl, and sold them on the darknet using the Canadian illegal marketplace called AlphaBay. He shipped his fentanyl laced pills to various states in the US over the course of over a year.

In addition to fentanyl, Shamo sold rape drugs, MDMA, magic mushrooms and cocaine online and was paid in Bitcoin.

On AlphaBay, his user name was “Pharma-master” and he was in the top 1% of drug traffickers by volume in the world, which means that the Canadian site AlphaBay assisted the trafficking of the largest volume of illegal drugs when it was operational. AlphaBay was the world’s largest criminal marketplace on the darknet, ten times larger than Silk Road. It had servers in Quebec, and was founded and operated by a Canadian named Alexandre Cazes, who amassed a Bitcoin fortune of $23 million despite having no job. He committed suicide in jail. More on the Canadian AlphaBay here.

Proceeds of crime seized from Aaron Shamo.

Stashes of Cash

Shamo used to work at eBay and left that job to become a drug dealer, earning more than $12 million in drug sales online in a short time. Although he was effectively unemployed for almost a two year period, engaged in drug trafficking, he still managed to have a bank account and digital currency exchange accounts that he used to move millions in proceeds of crime and to cash it out.

At the time of his arrest, Shamo had a duffel bag with $429,000 cash stored at his parents’ house, and over $1.2 million in cash in a sock drawer, wrapped in elastic bands. And he had $8.5 million in Bitcoin.

Instagram Bragging

Before his arrest, he bragged on Instagram about his new-found wealth that enabled him to buy a boat, a luxury car, designer clothing and to take expensive trips and sip champagne.

Federal prosecutors alleged that dozens of people died as a result of his drug trafficking. He was only charged in connection with one death, that of 21-year-old Ruslan Klyuev, who died in California after taking a fentanyl-laced pill shipped from Shamo’s team.

At his trial, prosecutors tendered evidence that Shamo received messages from customers that they were getting sick from his pills and instead of fixing the problem, Shamo sent more fentanyl-laced pills to the complaining customers.

Although AlphaBay was the world’s largest darknet criminal enterprise, no natural or legal person has ever been prosecuted in Canada for facilitating AlphaBay, or its now-deceased founder, over the harm caused by such facilitation by the fentanyl crisis. Shamo could not have operated his criminal enterprise without Canada’s AlphaBay.

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), IRS’s Criminal Investigation, U.S. Food and Drug Administration’s Office of Criminal Investigations, and U.S. Postal Inspection Service.

Assistant U.S. Attorney Vernon Stejskal of the U.S. Attorney’s Office, District of Utah, and Special Assistant U.S. Attorneys Michael Gadd and Kent A. Burggraaf prosecuted the case.

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Bitcoin rich kid who sold drugs on the darknet laced with fentanyl sentenced to 17 years in prison

By Christine Duhaime | September 10th, 2019

A 22-year-old California man named Wyatt Pasek, was sentenced on August 26, 2019, to more than 17 years in prison in California for selling fake oxycodone pills laced with fentanyl and other synthetic opioids.

Pasek sold drugs on the darknet on a marketplace under the name “OxyGod”, and was paid with Bitcoin. The proceeds of crime were sent to a digital currency exchange, and he was able to cash out the proceeds frequently and in the hundreds of thousands of dollars. The fentanyl was bought online from China and paid for in Bitcoin.

Pasek made fake Xanax and oxycodone pills and stuffed them with fentanyl and carfentanil, among other ingredients, a move the prosecutors said demonstrated “a complete disrespect for human life.”

He posted numerous photos of himself on Instagram (he’s @yung10x) showing voluminous stashes of cash, luxury fast cars and designer bags. He also bought a luxury penthouse condo with cash which he used to manufacture illegal drugs.

In his luxury condo, police located over 100,000 fake pills and over 13 pounds of fentanyl and its analogues. Police also found bundles of cash and a Bitcoin trezor.

He pleaded guilty last November to narcotics-trafficking, money laundering and being a convicted felon in possession of a firearm.

Pasek has forfeited $21,000 in cash, pieces of jewelry including a Silver Royal Offshore watch with diamonds, a gold and diamond Bitcoin necklace, gold bars he hid at his mother’s house and Bitcoin.

He has three previous drug convictions.

In this Instagram post, below, Pasek says that the greatest gift of life is “TIME and freedom”.

 

 

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Another Bitcoin executive tortured and then killed to death

By Christine Duhaime | August 31st, 2019

Another Bitcoin CEO was killed in Kerala, India today over losses that he was allegedly unable to pay back, according to news reports in India.

CEO Abdul Shakoor allegedly lost several millions of dollars in Bitcoin and when he was unable to pay it back, he was tortured and beat up by what appear to have been his business colleagues. They dumped his body at a hospital before fleeing.

Shakoor allegedly told his business colleagues that the company’s wallet that held all the pooled digital currencies was hacked. Only Shakoor had the passwords to access the wallet.

His business colleagues tortured him for access to the wallet, ultimately killing him for access.

A month ago, another Bitcoin executive, Tobiasz Niemiro, was murdered in Poland shortly after announcing that his digital currency exchange, BitMarket, was insolvent and customer funds were lost.

A month ago in India, three Bitcoin traders were kidnapped, taken to a high rise in India and tortured for two weeks. The kidnappers sought 80 Bitcoin for their release. And over a year ago, an ICO developer was kidnapped, beaten, mutilated and forced to transfer over $1M in Bitcoin to robbers in Moscow.

The number of murders of Bitcoin executives keeps growing.

A year ago, a Canadian Bitcoin exchange owner named Giuseppe Bugge, who police say was tied to organized crime, was gunned down in a hail of 140 bullets from machine guns in Mexico in territory controlled by the powerful drug cartel, the CJNG.

Ten months ago, Heikki Bjørklund Paltto, a Bitcoin trader, was murdered in his home in Norway. He was 24 years old. And 18 months ago, a Bitcoin executive, Pavel Nyashin, was murdered in Russia. He was 23 years old.

The first Bitcoin exchange murder was in 2014 – then, the CEO of an early exchange, Autumn Radtke, was murdered in Singapore, although some believe her death was a suicide.

The problem will no doubt keep growing, fuelled by a combination of factors – the lack of adherence to security protocols and safety awareness risks by executives of digital currency exchanges, the lack of insurance and security professionals involved in the digital currency exchange space and the continued risky practice of allowing one or two executives to exclusively control the pooled wallets of exchanges. Until digital currency executives adopt an approach to security that more closely resembles bank security for executives, they will continue to be at risk personally, and to place corporate assets at risk of theft, loss and extortion attempts.

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Estonia ranked least risky for money laundering by Basel; Canada ranked at 47th place, behind Malta, Egypt, Poland and Bulgaria

By Christine Duhaime | August 30th, 2019

The country of Estonia came in 1st place on the Basel AML Index this year, for anti-money laundering (AML) and counter terrorist financing (CTF) compliance.

The annual ranking by the Basel Institute on Governance, measures the risk of money laundering and terrorist financing in countries using data from publicly available sources and includes assessments for such things as adherence to AML law, corruption, disclosure by politicians in power, enforcement, transparency and the rule of law.

The Index does not measure actual incidents of financial crime but rather the risk of it occurring in a country, which is of more probative value given that it is that data that is the precursor for risk assessments around the world.

The top 50 countries for low AML / CTF risks in order are:

  1. Estonia (lowest risk)
  2. Finland
  3. New Zealand
  4. Macedonia
  5. Sweden
  6. Bulgaria
  7. Lithuania
  8. Uruguay
  9. Slovenia
  10. Israel
  11. Croatia
  12. Norway
  13. Malta
  14. Montenegro
  15. Denmark
  16. Australia
  17. Slovakia
  18. France
  19. Portugal
  20. UK
  21. Czech Republic
  22. Chile
  23. Belgium
  24. Poland
  25. Dominica
  26. Spain
  27. Germany
  28. Egypt
  29. Ireland
  30. Greece
  31. Singapore
  32. Grenada
  33. South Korea
  34. Austria
  35. Iceland
  36. St. Vincent
  37. St. Lucia
  38. Guatemala
  39. Romania
  40. Jordan
  41. Luxembourg
  42. South Africa
  43. China
  44. Netherlands
  45. Latvia
  46. Hungary
  47. Canada
  48. Switzerland
  49. Qatar
  50. Brazil

The 10 worst ranking countries (the most risky) are:

  1. Mozambique
  2. Laos
  3. Myanmar
  4. Afghanistan
  5. Liberia
  6. Haiti
  7. Kenya
  8. Vietnam
  9. Benin
  10. Sierra Leone

Canada surprisingly ranked 47th, making it more risky for AML and CTF than Malta, Uruguay, Chile, Poland, Egypt, Greece, Guatemala, Romania, Jordan and Hungary and tens of others. The score of Canada was unchanged, meaning that year over year, it did not lower its AML or CTF risks.

Estonia which ranks 1st place, issues a plain language annual report from its FIU, the Politsei, on its supervisory activities, the law, and summaries of Court decisions so that reporting entities and constituents have an understanding of the role of the FIU and its effectiveness. Estonia’s FIU reports, as well, describe its activities in reference to the law (e.g., natural and legal persons) and discloses reporting entity activities involving the legal profession. The new digital ID system in Estonia, its e-citizenship and plans by its FIU to participate with the private sector in artificial intelligence for anti-money laundering law may be some of the factors that put it ahead of the game this year in law, compliance and technology.

China and the US at the FIU level have been using AI for AML purposes for decades.

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Partner of alleged international human trafficker and money launderer arrested in Dominican Republic

By Christine Duhaime | August 29th, 2019

Marisol Franco, the common law spouse of César Peralta, known as “César the Abuser” was arrested in the Dominican Republic yesterday in connection with charges against Peralta of alleged money laundering, drug trafficking and human trafficking of young women from Venezuela and Colombia. Peralta was designated as a drug kingpin in the US last week by the US Treasury and is being sought by the US government. He has disappeared.

In addition to being the common law spouse of an alleged major drug kingpin and human trafficker, Franco is the daughter of Franklin Franco, a drug dealer wanted by the US Marshals whom the Dominican Republic declined to extradite for over 20 years. Her sister, Franklin Franco’s other daughter, Berlinesa Franco, is a politician in the Dominican Republic.

And in addition, Marisol Franco’s ex-husband is also a politician named Sergio Moya de la Cruz.

You can read more about Peralta, Franco and Moya here. Some media stories in the Dominican Republic are theorizing that the family used its political influence and made corruption payments to government officials and prosecutors for Franklin Franco to be protected from prosecution, and likewise for César the Abuser to avoid prosecution, both for twenty years. As well, Sergio Moya was charged with laundering $300 million in the Dominican Republic, and those charges were vacated when evidence was no longer available.

They are all politically exposed persons – César the Abuser, Marisol Franco, Berlinesa Franco and Sergio Moya de la Cruz – and several of them did not have actual employment before they became wealthy.

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Dominican Republic alleged drug kingpin & human trafficker “César the abuser” listed by OFAC; two ex-Major League Baseball players allegedly tied to the kingpin

By Christine Duhaime | August 25th, 2019

On August 20, the Office of Foreign Assets Control (“OFAC“) designated César Emilio Peralta, a national from the Dominican Republic and the criminal organization he is said to control, as significant narcotics traffickers and a drug kingpin under the Foreign Narcotics Kingpin Designation Act.

Peralta is known as “César the Abuser”(el abusador) in the Dominican Republic. Peralta’s criminal organization is alleged to traffic cocaine and opioids for Mexican cartels to foreign countries, including into the US and Europe and to use front companies and nightclubs to launder money and traffic women from Colombia and Venezuela. Peralta has a criminal record for involvement in narcotics trafficking. César Peralta has an Instagram account, @cesar_emilio_peralta30, that is now private.

The Dominican Republic has issued a warrant for the arrest of Peralta who remains at large, and alleges that two ex-Major League Baseball players, Octavio Dotel and Luis Castillo, allegedly are implicated in some capacity in Peralta’s activities laundering money. Octavio Dotel, who pitched for 13 teams in his career and won a World Series with the St. Louis Cardinals, was arrested in the Dominican Republic. Luis Castillo, who played for the New York Mets and Florida Marlins, is in Florida and has not been arrested.

César the Abuser’s common law partner is a woman named Marisol Mercedes Franco.

This newspaper spoke to a source who alleges that Peralta was tipped off and left the country a week before. Marisol Franco’s sister is the politician, Berlinesa Franco, who periodically posts pictures of herself and the president of the country online.

Marisol Franco is the daughter of another major drug trafficking fugitive named Franklin Franco.

Franklin Franco escaped from prison in the US and has been wanted by the US Marshal Service since 1987 on an outstanding warrant from the SDNY. A number of Dominican news articles, including this one, say that Franco was connected at the highest levels and protected by the Dominican Republic government for decades and that the government refused to take steps to extradite him to the US.

According to media reports in the Dominican Republic, Marisol Franco used to be married to Sergio Moya de la Cruz.

Sergio Moya de la Cruz was charged in the Dominican Republic in 1998 with money laundering and according to a media report, it was to the tune of US$300 million. He later got into the gambling business and owned a number of what are called “bancas” – little huts where one can place bets and wagers. He is now a politician in the Dominican Republic, even though two global drug traffickers comprise his close family – Franklin Franco is his former father-in-law. He is alleged to have had direct access to top government officials in the Dominican Republic. Sergio Moya follows a Franklin Franco on Instagram (@franklinfranco23).

Sergio Moya’s associate in the bancas gambling business was at one time, Winston Rizik Rodriguez, another major drug trafficker wanted by the US Marshall Service, who is currently incarcerated in the Dominican Republic serving a ten year sentence for money laundering and drug trafficking.

Rizik-Rodriquez and Franklin Franco were both charged in the US on major drug trafficking charges and both fled to the Dominican Republic, where they were permitted re-entry and allowed to live un-incarcerated for decades, and in fact, appear to have accumulated considerable wealth, even though unemployed. The photo on the left is modern-day Franklin Franco with a Ferrari. The Instagram account of Berlinesa Franco includes pictures of her traveling to the US, apparently without impediment, despite that her father is wanted by the US Marshal Service and her brother-in-law is an alleged major international human trafficker of women.

And Sergio Moya has a tie to another person with a criminal record – a Canadian incarcerated in the Dominican Republic on remand named Željko Želijća Žderić allegedly originally a Bosnian national from Travnički who uses the aliases Sasha Vujacic and Pavle Kolic.

According to an audio recording involving what appears to be a conversation among his relatives, Sasha Vujacic has been a member of the Montreal Mafia for 31 years.

Sasha Vujacic appears to have been introduced to Sergio Moya de la Cruz by a Canadian named Andrew Pajak, who according to Court records, has co-operated the Dream Casinos chain in the Dominican Republic since mid-2013. According to Canadian media reports, Pajak is a money mover for the mob in Canada.

There is another audio recording circulating of Sasha Vujacic, aka Željko Želijća Žderić, calling Sergio Moya de la Cruz at home in the Dominican Republic in 2013 to say that he was a friend of Pajak and was calling him to pick up a car. An adult woman who speaks English takes over the call at the home of Sergio Moya to translate the conversation for Sasha Vujacic and Sergio Moya – and that woman may very well have been Marisol Franco, talking to Željko Želijća Žderić.

Below is a picture from CBC News of Sasha Vujacic, aka Željko Želijća Žderić, with Vito Rizzuto, now deceased, who was head of the Canadian Sicilian Mafia and with Toronto’s Frank Campoli, checking out one of the Dream casinos in the Dominican Republic in August 2013.

Sergio Moya de la Cruz seems to be a connective tissue between a number of these people.

An apparently close acquaintance of Sergio Moya in the Dominican Republic, @principekarim, who posts photos online of boxes and suitcases laden with cash (in one case of $1 million) and luxury cars he owns, posted on Instagram two photos he appears to have taken of César Peralta – one of Peralta with another wanted drug trafficker who is part of the kingpin designation, @Jakemate (aka Jaque Mate), below, and one of Peralta with two unknown persons. In those posts, Moya’s acquaintance wrote something to the effect that drug traffickers are not to blame; it is the American “gringos” (that’s us) who are to blame, and that narco traffickers are better than politicians and – there’s more – that Peralta’s narco trafficking stimulated the economy and created jobs.

Despite his dislike of us gringos, Sergio Moya’s friend @principekarim travels from Turkey, Dubai and the Dominican Republic to the US a lot on private jets, flush with extraordinary amounts of cash, according to his Instagram account, to enjoy the stability and security that comes from a country where the rule of law, and not a narco, prevails.

A good summary of Peralta and his connections to the Franco family and Sergio Moya de la Cruz is here.

It is highly probable that the disappearance of Peralta a week before the OFAC notice was released was anticipated and that the US knew that Dominican government officials would tip off Peralta and cause him to leave the country, and they let it happen. In that way, US law enforcement could pick Peralta up in another country and ensure that he is prosecuted in the US under US laws, and that the bulk of the proceeds of crime are forfeited in the US.

The Dominican Republic is known as the premier transit country for drugs from Colombia and Mexico en route to Canada, the US and Europe because of its non-existent financial crime controls and its pervasive corruption at all levels. It is also known as a major human trafficking country where mostly Venezuelian children and teenagers who are trafficked there, are forced into sex slavery for tourists from the US, Canada and Europe.

The Foreign Narcotics Kingpin Designation Act prohibits dealing in any assets, including money, Bitcoin, boats, watches, homes, credit cards, cargo or wires, in which the OFAC designated persons have an interest in the US or, more complexly, in the possession or control of a US legal or natural person and the prohibition includes assets transiting the US, which is where correspondent banks come in, effectively de facto making some US sanctions a global sanctions regime for financial crime compliance purposes.

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Major drug bust involving Vancouver area is right out of a former DEA agent’s book about the capture of drug lord, El Chapo

By Christine Duhaime | August 24th, 2019

A major drug bust in Washington State by Homeland Security Investigations and by the RCMP in British Columbia, played out exactly how former DEA agent, Andrew Hogan, described some drugs were being trafficked between British Columbia and Washington State by the Sinaloa cartel.

In his book, “Hunting El Chapo“, Hogan describes how the Sinaloa used helicopters to move drugs from Washington to British Columbia and according to an affidavit filed in connection with a bust that occurred in June of this year, that is still the way some drugs are illegally moved across the border.

This story in the Vancouver Sun describes how in June, HSI agents seized 188 kilograms of methamphetamine from two suspects in Washington who were meeting a helicopter originating from the Vancouver area to deliver the methamphetamine. The helicopter was supposed to touch down in a heavily forested area and return to Canada with the drugs. The pilot circled above the pick-up spot but did not land as planned and instead took off back to Canada, where an RCMP plane tracked it.

It eventually landed on a property in Chilliwack where RCMP located 72 long guns, 35 handguns, ammunition, cellphone jammers, U.S. government helicopter decals, drones and currency from Canada, the US and Mexico. Two men on the Canadian side were also arrested.

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