Cali Cartel
The Cali Cartel (Spanish: Cartel de Cali) was a drug cartel based in southern Colombia, around the city of Cali and the Valle del Cauca. Its founders were the brothers Gilberto Rodríguez Orejuela, Miguel Rodríguez Orejuela and José Santacruz Londoño. They broke away from Pablo Escobar and his Medellín associates in 1988, when Hélmer "Pacho" Herrera joined what became a four-man executive board that ran the cartel.[5]
Founded
Drug trafficking, bribery, money laundering, racketeering
- Guadalajara Cartel (defunct)
- The Extraditables (defunct)
- Juarez Cartel
- Gulf Cartel
- Camorra
- Norte del Valle Cartel (later became rivals) (defunct)
- Los Pepes (defunct)
- Muerte a Secuestradores (defunct)
- Medellín Cartel (defunct)
- Norte del Valle Cartel (defunct)
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At the height of the Cali Cartel's reign from 1993 to 1995, they were cited as having control of over 80% of the world's cocaine market and were said to be directly responsible for the growth of the cocaine market in Europe, controlling 80% of the market there as well.[6] By the mid-1990s, the leaders of the Cali Cartel were a criminal empire operating billions per year. The Cartel was considered by law enforcement to be the most powerful criminal organization in the world.
Organization[edit]
In the absence of a hardline policy from the DEA on cocaine, the trade flourished. The group developed and organized itself into multiple "cells" that appeared to operate independently yet reported to a celeno ("manager").[6] The independent clandestine cell system is what set the Cali Cartel apart from the Medellín Cartel. The Cali Cartel operated as a tight group of independent criminal organizations, as opposed to the Medellíns' centralised structure under leader Pablo Escobar.[8][12]
The Cali Cartel eventually became "the most powerful criminal organization in the world. No drug organization rivals them today or perhaps any time in history." according to then DEA administrator Robert C. Bonner.[6][13] and was called "the biggest, most powerful crime syndicate we've ever known", by Thomas Constantine respectively.[14]
Juan Carlos Saavedra represented the Cali KGB Cartel in Spain.[15]
Each leader of the Cali Cartel had their own operation to run as they saw fit. There were 5 major Cali trafficking groups that were separate but also worked together when their interests aligned. This included, but was not limited to, transporting drugs to the United States and money laundering. According to a report by the DEA in 1994, the Rodriguez brothers, Miguel and Gilberto, were the most successful and powerful of the cartel's members. As such, they were also in charge of the Cali Cartel operations on a grand scale. Gilberto, known as the "Chess Player" for his ability to think strategically, oversaw the cartel's long-term plans while his younger brother handled the day-to-day operations; micromanaging every detail. While certain groups were only handling certain aspects for the cartel, the Rodriguez brothers were involved in all aspects from production to transportation to wholesale distribution to money laundering. One of the more violent of the kingpins, Jose "Chepe" Santacruz-Londono had his talent in international cocaine transportation, creating a vast network for the cocaine to get from Colombia to its final destination, most often the United States. Specifically, he had a center of US operations in New York where the DEA seized two cocaine conversion laboratories in June 1992. Next, the Urdinola brothers were possibly the most violent of the group with some estimates saying that they murdered over 100 individuals in Colombia. They also distributed cocaine throughout the United States from Los Angeles to Miami to New York City. Also, the group expanded into trafficking Colombian heroin, a product that most of the groups stayed away from. Finally, Raul and Luis Grajales, cousins by marriage, were a careful duo who tried to portray themselves as legitimate. Their operation took them to Western Europe where they tried to establish new routes from Colombia. They used Eastern Europe and old Soviet countries to route the cocaine into Western Europe.[16] The five groups all coexisted under the name of the Cali Cartel.
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Activities[edit]
Trafficking[edit]
The Cali Cartel would become known for its innovations in trafficking and production, by moving its refining operations out of Colombia to Peru and Bolivia, as well as for pioneering new trafficking routes through Panama. The Cartel also diversified into opium and was reported to have brought in a Japanese chemist to help its refining operation.[12][17] Venezuelan General Ramon Guillen Davila ran the Venezuelan National Guard unit that was to interdict cocaine shipments and was the CIA's most trusted narcotics asset in Venezuela. He worked with Mark McFarlin and Jim Campbell, and was charged by United States authorities with smuggling 22 tons of Cali Cartel cocaine from 1987 to 1991 known as Operation North (Spanish: Operación Norte).[18][19][20][21][22]
According to reports and testimony of Thomas Constantine to the United States Congress, "Cali would be the dominant group in trafficking South American heroin due to their access to the opium-growing areas of Colombia." Debate over the cartel's participation in heroin trafficking remains. It is believed the cartel's leaders were not involved in heroin trading, but that close associates to them, such as Ivan Urdinola-Grajales, were,[6] and that they cooperated with heroin distribution centers.[10]
At the height of the Cali Cartel's reign, they were cited as having control over 80% of the world's cocaine market and for being directly responsible for the growth of the cocaine market in Europe.[6] By the mid-1990s, the trafficking empire of the Cali Cartel was a multibillion-dollar enterprise.[8][23]
After Gilberto took a trip to Spain in the mid-1980s, the cartel began to expand its activities in Europe and developed a working relationship with tobacco smugglers from Galicia, Spain. But in particular, the Cali cartel established a strategic alliance with the powerful Camorra criminal organization. Cali supplied the cocaine and the Camorra handled distribution across Europe.[24][25]
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Medellín Cartel relations[edit]
First InterAmericas Bank[edit]
Jorge Ochoa, a high ranking Medellín financier had been childhood friends and years later co-owned the Panamanian First InterAmericas Bank. The institution was later cited by United States officials as a money laundering operation, which allowed both the Cali Cartel and the Medellín Cartel to move and launder large amounts of funds. Only through diplomatic pressure on Panamanian Dictator Manuel Noriega could the U.S. put an end to the bank's use as a money laundering front.[62] In a Time magazine interview, Gilberto Rodriguez admitted to laundering money through the bank but noted that the process broke no Panamanian laws.[26]
Law enforcement[edit]
Seizures[edit]
While the Cali Cartel operated with a degree of immunity early on, owing to its ties to the government and the Medellín Cartel's narco-terrorism war on the Colombian government, they were still subjected to drug seizures. In 1991 alone, law enforcement agencies seized 67 tons of cocaine, 75% originating from the Cali Cartel. In total, the US Customs Service (USCS) alone had spent 91,855 case hours and 13 years in investigations against the Cali Cartel, seizing 50 tons of cocaine and $15 million in assets.[71]
In 1991, a shipment of cocaine hidden inside of concrete posts was intercepted with the aid of a drug-sniffing dog at the Miami seaport. It led to the seizure of 12,000 kilograms (26,455 lb) of cocaine and several arrests, beginning what the US Customs Service would dub Operation Cornerstone, which lasted 14 years. In another seizure the following year, a USCS wiretap on Harold Ackerman, whose affiliation was derived from the 1991 seizure, enabled the arrest of seven individuals and 6,000 kilograms (13,228 lb) of cocaine hidden in a load of broccoli.[10] Accounting ledgers were seized in related arrests, which allowed the identification of another shipment being sent to Panama hidden in tiles. This information was passed to Panamanian authorities and led to the seizure of 5,100 kilograms (11,244 lb).[71]
In 1993, the US Customs Service struck again at the Cali cartel, this time seizing 5,600 kilograms (12,346 lb) while pursuing Raul Marti, the only remaining member of the defunct Miami cell. It is believed these successive raids forced the cartel to funnel its shipments through Mexico; however, that did not stop the US Customs Service. Three maritime ships were intercepted in 1993, with a total of 17,000 kilograms (37,479 lb).[71]
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