Showing posts with label organized crime. Show all posts
Showing posts with label organized crime. Show all posts

Dec 13, 2009

Mexico's drug cartels siphon liquid gold

Petróleos MexicanosImage via Wikipedia

Bold theft of $1 billion in oil, resold in U.S., has dealt a major blow to the treasury

By Steve Fainaru and William Booth
washington post foreign service
Sunday, December 13, 2009

MALTRATA, MEXICO -- Drug traffickers employing high-tech drills, miles of rubber hose and a fleet of stolen tanker trucks have siphoned more than $1 billion worth of oil from Mexico's pipelines over the past two years, in a vast and audacious conspiracy that is bleeding the national treasury, according to U.S. and Mexican law enforcement officials and the state-run oil company.

Using sophisticated smuggling networks, the traffickers have transported a portion of the pilfered petroleum across the border to sell to U.S. companies, some of which knew that it was stolen, according to court documents and interviews with American officials involved in an expanding investigation of oil services firms in Texas.

The widespread theft of Mexico's most vital national resource by criminal organizations represents a costly new front in President Felipe Calderón's war against the drug cartels, and it shows how the traffickers are rapidly evolving from traditional narcotics smuggling to activities as diverse as oil theft, transport and sales.

Oil theft has been a persistent problem for the state-run Petroleos Mexicanos, or Pemex, but the robbery increased sharply after Calderón launched his war against the cartels shortly after taking office in December 2006. The drug war has claimed more than 16,000 lives and has led the cartels, which rely on drug trafficking for most of their revenue, to branch out into other illegal activities.

Authorities said they have traced much of the oil rustling to the Zetas, a criminal organization founded by former military commandos. Although the Zetas initially served as a protection arm of the powerful Gulf cartel, they now call their own shots and dominate criminal enterprise in the oil-rich states of Veracruz and Tamaulipas.

"The Zetas are a parallel government," said Eduardo Mendoza Arellano, a federal lawmaker who heads a national committee on energy. "They practically own vast stretches of the pipelines, from the highway to the very door of the oil companies."

The Zetas earn millions of dollars by "taxing" the oil pipelines -- organizing the theft themselves or taking a cut from anyone who does the stealing, according to Mexican authorities. The U.S. Treasury Department this summer designated two Zeta commanders as narcotics "kingpins," which allows authorities to seize assets.

The Zetas often work with former Pemex employees, according to Ramón Pequeño García, chief of anti-drug operations at Mexico's Public Security Ministry. The former employees "are highly skilled people who have the technical knowledge to extract oil from the pipelines. They are now under the control of the Zetas," Pequeño said.

Across the border

This year, executives of four Texas companies pleaded guilty to felony charges of conspiring to receive and sell millions of dollars worth of stolen petroleum condensate. U.S. law enforcement officials said in interviews that they have no evidence showing that the men were connected to drug traffickers.

During his September arraignment in Houston, Arnoldo Maldonado, president of Y Gas & Oil, pleaded guilty to receiving about $327,000 to coordinate at least three deliveries of tankers filled with stolen condensate to another Texas company, Continental Fuels, according to a court transcript of the hearing.

Asked by U.S. District Judge Ewing Werlein Jr. how the condensate had been stolen from Pemex, Maldonado replied: "I have no idea on that, sir."

Donald Schroeder, a former president of Houston-based Trammo Petroleum, pleaded guilty in May to buying $2 million worth of stolen Mexican condensate, according to a transcript of the hearing. Schroeder re-sold the condensate to another company, BASF, for a $150,000 profit, prosecutors told the court.

A spokesman for BASF, which has not been implicated in the case, said the company was unaware that the material was stolen and is cooperating with the investigation.

In August, U.S. authorities presented the Mexican government with an oversize check for $2.4 million as a repayment.

A sophisticated operation

Pemex reported losing $715 million worth of oil to theft last year. The company said it discovered 396 clandestine taps. This year, Pemex projects it will lose at least $350 million to oil pilfering. Nearly half of the thefts occur in the rugged hills around Veracruz, a largely rural state situated in a region with 2,136 miles of pipeline running from the Gulf of Mexico to refineries in other parts of the country.

To steal the oil, Mexican authorities said, thieves sometimes use safe houses from where they build extensive tunnel networks leading to the pipelines. They fabricate powerful drills that enable them to puncture the highly pressurized steel pipes and extract the oil without causing spills or suspicious drops in pressure. Pemex officials said they have found clandestine taps with as many as five spigots.

In Maltrata, in central Veracruz, Pemex officials showed a reporter a four-foot-deep, six-foot-wide trench ringed by yellow police tape that they said had been dug by thieves to reach an underground pipeline in a clearing near a federal highway last month.

After perforating the exposed two-foot pipeline using a hand-tooled drill and connecting valves to regulate the pressure, the officials said, the traffickers ran a 300-yard hose through the brush to a tanker and filled it with about 200 barrels of crude oil.

"They are very sophisticated -- in some cases, it's three kilometers from the pipeline to the tanker where they deposit the oil," said Mauro Cáceres, who oversees the pipeline network in the region. "It is just constant. They take, and they take, and they take, and they take."

Pemex lost 140,141 barrels of oil to theft last month in the Veracruz region alone, the company reported. At $75 a barrel, the current market price for Mexican oil, the loss comes to $10 million. The company reports that oil rustlers are stealing from the pipelines in all 31 Mexican states.

Defending the pipelines

"When they steal this oil, it's not just a regular crime," said Mendoza, the federal deputy. "It becomes a crime against society, because the people who steal this oil the next day are using it to kidnap us. Tomorrow, with that oil money, they are shipping drugs."

The theft is both a symbolic and financial blow to the Mexican government. Taxes paid by Pemex account for 40 percent of the federal budget. Pemex still owns and operates almost every gas station in Mexico. Juan José Suárez, Pemex's chief executive officer, said in an interview at the company's headquarters in Mexico City that the oil theft is a crime against all Mexican citizens: "This is not taking from Pemex; it's taking from the owners of Pemex. This is the net worth of everybody."

Mexico has launched an all-out campaign to defend the pipelines, drawing in the army, the attorney general's office, the Interior Ministry and the customs service. During the past two years, the government has conducted helicopter overflights, installed electronic detection devices inside the pipelines and beefed up Pemex's private security force.

Suárez estimates that Pemex will spend hundreds of millions of dollars over the next three years defending its pipelines. With the company's maintenance staff overwhelmed, Pemex assembled 20-man teams this year to repair breaches caused by theft.

"The teams are working day and night," Cáceres said.

Pemex sent out a call for help to the federal government in 2007. In June that year, Mexican customs officials informed U.S. Immigration and Customs Enforcement (ICE) that they had discovered dozens of Mexican companies that appeared to be conspiring with U.S. firms to export stolen petroleum products across the border.

Working closely with the Mexican customs service, ICE investigators said, they soon uncovered a network of Mexican and American companies that shipped stolen oil to the United States in tankers, stored it in aboveground containers in Texas and then shipped it in barges to end users in the United States.

With oil prices then at record highs, the scheme allowed U.S. companies to buy petroleum products at below-market value. The scam involved hundreds of people, according to Jerry Robinette, special agent in charge of the ICE office of investigations in San Antonio, which is overseeing the probe.

"The folks that made the most amount of money are the people who are going to harm us the most, and that was the organized crime in Mexico," Robinette said.

Staff researcher Julie Tate in Washington contributed to this report.

Reblog this post [with Zemanta]

Nov 20, 2009

U.S. part of global crackdown on counterfeit medicines - washingtonpost.com

Copper Aspirinate powderImage via Wikipedia

RAIDS HELD WORLDWIDE
Fake medicines a growing enterprise

By Ylan Q. Mui
Washington Post Staff Writer
Friday, November 20, 2009

NEW YORK -- In highly orchestrated raids around the world this week, Interpol officers in Europe, drug agents in the United States and task forces from Sweden to Singapore hunted down counterfeit prescription drugs in an effort to stem a rapidly growing criminal business preying on financially pressed consumers looking for bargains.

The operation, code-named Pangea, is expected to be disclosed Friday in an effort to put fraudulent businesses on notice that police around the world are fighting back against what has become a $28 million industry in the United States alone.

The national crackdown uncovered nearly 800 alleged packages of fake or suspicious prescription drugs including Viagra, Vicodin, and Claritin, and shut down 68 alleged rogue online pharmacies. Some counterfeit drugs may have as much as three times more of an active ingredient than is typically prescribed; others may be placebos. Drywall material, antifreeze and yellow highway paint have been found in counterfeit pills.

The front line of the operation is deep in the bowels of a sprawling mail center in the industrial outskirts of John F. Kennedy International Airport. This week, federal agent Stephen Buzzeo, wielding a letter opener, ripped open a manila envelope lined with cardboard from a diaper package and pulled out three packages of what looked like diet pills, anxiety medicine and OxyContin, an often abused painkiller.

Hundreds of packages of potentially fake medicines were dumped into orange bins, piled on skids and stacked high around him and the half-dozen others from the alphabet soup of government agencies -- ICE, CBP, FDA, DEA -- hoping to intercept them before they were shipped to often unwitting consumers. Overseas, Interpol officers and task forces stormed suspected counterfeit drug warehouses and distribution centers.

"We don't know what's in here, actually," Buzzeo said as he inspected the pills. "All this is shady."

Counterfeit drugs are the latest -- and potentially most dangerous -- front in the long-running battle against intellectual-property crimes. Law enforcement officials said consumers typically think of counterfeited products as fake Louis Vuitton purses or Nike sneakers. Although shoes are the most common phony product, accounting for 38 percent, or $102 million, of counterfeit products seized by customs officials last year, pharmaceuticals are one of the fastest-growing categories.

In 2007, they made up about 6 percent of total seizures. Last year, they accounted for 10 percent to become the third-largest category, with an estimated market value of $28 million. Federal officials say that trend is particularly disturbing because of the health dangers that such drugs present.

"The public safety part of intellectual property has really taken off in the last couple years and become the moving force," said John T. Morton, an assistant secretary of U.S. Immigration and Customs Enforcement, which spearheaded the Pangea operation. "This is a huge problem."

Though counterfeit drugs have a history as old as snake oil, the high cost of many prescription drugs has driven some consumers to hunt for cheaper alternatives on the Internet. According to the National Association of Chain Drug Stores, a trade group, Americans spent $254 billion on prescription drugs last year, up 1.8 percent from 2007. The long-running recession has made such costs more difficult for many consumers, experts said.

Meanwhile, the rise of Internet pharmacies has expanded the marketplace and supply chain for the drugs. One site under federal investigation that is selling a "power pack" of erectile dysfunction drugs Cialis and Viagra purports to have a warehouse in New Delhi, headquarters in Canada and a license to sell medicine in the United States through Minnesota.

However, the investigation found that the site was registered in China and its server was hosted in Russia. Its headquarters had previously been listed in Louisiana. ICE agents have placed several orders and are trying to build a case against the site.

The National Association of Boards of Pharmacy maintains a list of roughly 4,000 online pharmacies it says is questionable. It also certifies legitimate sellers through its Verified Internet Pharmacy Practice sites program. Seventeen have passed the test.

"The Internet is just the wild, wild West," said Dr. Bryan A. Liang, vice president of the Partnership for Safe Medicines, an advocacy group.

Last fall, a new law was enacted that prohibited Internet pharmacies from dispensing prescription drugs over the Internet without a prescription and also increased some criminal penalties. Another bill sponsored by Rep. Steve Israel (D-N.Y.) this summer proposed increasing penalties for drug counterfeiters and enhancing the Food and Drug Administration's ability to track them. It stalled in committee.

In 2004, ICE began targeting drug counterfeiters under what it called Operation Apothecary. It has since expanded into a veritable global surveillance system encompassing half a dozen U.S. agencies and 24 countries for a week of intense enforcement. In the United States, task forces descended on seven major mail hubs this week, including in San Francisco, Miami and Cincinnati, and inspected 7,088 packages.

In New York, federal agents spent the week at Kennedy Airport pulling suspicious packages from China, India, Peru, Pakistan, Brazil, Turkey, Taiwan and Russia, trying to spot distribution trends and gathering leads. The leads can take months or years to track down, but officials said they need to start somewhere.

"For the criminals, at least," said Richard Halverson, unit chief at the National Intellectual Property Rights Coordination Center, "we're telling them that everybody's looking."

Reblog this post [with Zemanta]

Jul 30, 2009

Organ Trafficking Fueled by Worldwide Market

They won’t look the doctor in the eye, and their stories have holes — after all, how often does someone offer a spare kidney to a third cousin he just met?

Eventually, many would-be live-organ donors simply disappear; at one hospital, Hackensack University Medical Center, more than half drop out of the transplant process after initial meetings with doctors.

Dr. Michael Shapiro, the chief surgeon of the hospital’s transplant unit, said he suspects that many of those people are looking to be paid for their body parts, but fear getting caught.

“Sometimes, you have to sit down with the donor and say: ‘It’s illegal to buy or sell organs. You know that, right?’ ” Dr. Shapiro said.

Among the 44 people arrested last week in one of the most sweeping bribery and money-laundering investigations in New Jersey history, one stood out: Levy-Izhak Rosenbaum, a Brooklyn businessman who was accused of trying to broker the purchase of a kidney for $160,000.

Though most developed countries, including the United States, ban organ sales, there is an international market for transplantable organs: a shady world of unscrupulous doctors, concocted relationships and hotels used as recovery rooms.

The World Health Organization estimates that about 10 percent of the 63,000 kidneys transplanted worldwide each year from living donors have been bought illegally. Lungs, pieces of livers and corneas also command a price.

Last year, the authorities in India said they had broken up a ring involving doctors, nurses, paramedics and hospitals that had performed 500 illegal transplants of organs to rich Indians and foreigners. Most of the donors were poor laborers who were paid up to $2,500 for a kidney. Some were forced to give up organs at gunpoint.

Federal authorities say Mr. Rosenbaum told an undercover investigator that he had been brokering the sale of organs for 10 years and had been involved with “quite a lot” of transplants. According to the criminal complaint, Mr. Rosenbaum was approached by the same government witness who persuaded a number of New Jersey officials, including the mayor of Hoboken, to accept bribes, and who snared several rabbis in a money-laundering operation.

In Mr. Rosenbaum’s case, the witness, believed to be Solomon Dwek, a New Jersey developer arrested on bank fraud charges in 2006, pretended to a businessman whose secretary was looking for a kidney for her uncle. An undercover agent posed as the secretary.

“Let me explain to you one thing,” Mr. Rosenbaum told her, according to the complaint. “It’s illegal to buy or sell organs.”

Mr. Rosenbaum later received $10,000 as a down payment for delivery of a willing organ donor, the authorities said. The total cost, as agreed upon, would eventually have been $160,000.

Mr. Rosenbaum spoke of the strengths and weaknesses of hospitals’ screening procedures. He told the agent that the donor would come from Israel, that he would be young and healthy, and that once he was in the United States, the donor and the recipient would need to make up a story to tell hospital officials.

The donor could not pretend to be a relative, not even a third cousin — the relationship Dr. Shapiro said he sometimes hears — as that would be too easily disproved, Mr. Rosenbaum said. Instead, he said, they should choose a different story, saying, perhaps, that they were neighbors, friends from synagogue or business acquaintances. “Could be friends from the community, could be friends of, of, of his children,” Mr. Rosenbaum said, according to the complaint.

Ronald Kleinberg, Mr. Rosenbaum’s lawyer, said he would not comment because he had not yet obtained all the facts in the case.

Doctors have become more aware of organ-selling schemes, but many still feel powerless.

“When you have the suspicion the donor is doing this for the wrong reasons, the question is — what do we do?” Dr. Shapiro said. “I don’t have a detective on retainer. I don’t have a polygraph. We’re pretty good at surgery, but part of the medical school curriculum is not interrogation techniques.”

Some doctors may feel that the Hippocratic oath prevents them from turning away a sick patient with an organ ready to be transplanted. Others may simply be tempted by the money involved.

“There’s this perverse motivation for me to say yes. It takes a really honest person to say, ‘I’m not going to do this, even if it will reduce my numbers,’ ” Dr. Shapiro said.

To those needing a kidney who are dependent on dialysis machines, the wait for a new organ can seem daunting.

The length of time generally depends on the patient’s condition and blood type; most organ transplants in the United States are based on a waiting-list system formed by Congress in 1984 and run by the United Network for Organ Sharing.

In New York, the average wait for a new kidney is nine years.

For those who cannot or no longer want to wait for a kidney, the only other legal option is to find someone willing to donate an organ of their own free will, and free of charge, usually a relative or friend.

While many doctors and academics sympathize with those who in effect want to buy a longer life, the general concept behind the ban on paying for organs is that society’s poorest people should not be enticed to sell their own bodies and that its richest should not be able to buy their way out of the existing system.

Dr. Luc Noel, the coordinator of clinical procedures in the Department of Essential Health Technologies at the World Health Organization, said the organization has been wrestling for years with whether or how to legalize organ sales.

“The truth is, it’s people in poor countries who choose between selling a kidney or a child,” Dr. Noel said. “It’s not caricature. It’s reality.”

Sheila M. Rothman, a professor of public health at Columbia University who studies living organ transplantation, said it has opened a Pandora’s box of questions no government has been able to answer fairly.

“In principle there’s nothing wrong with selling an organ, but if you try to get someone to articulate it and what it means, nobody can explain an equitable way to do it,” Dr. Rothman said.

Some doctors, however, say that since demand is so high, and waiting times for organs from cadavers so long, organ sales should be legalized, but tightly regulated.

“It has to have a built-in system for checking the individuals’ motivations to be sure they’re not being coerced. There should be a fair and established price,” said Dr. Eli A. Friedman, a distinguished teaching professor and the chief of the Division of Nephrology at the SUNY Downstate Medical Center in Brooklyn.

Dr. Friedman said brokers wanting to find people seeking kidneys had tried turning to him.

“I’ve had kidney agents come into my office and offer to give me $5,000 for every person who I referred to them,” he said.

Jul 28, 2009

New Strategy Urged in Mexico

By William Booth and Steve Fainaru
Washington Post Foreign Service
Tuesday, July 28, 2009

MEXICO CITY -- President Felipe Calderón is under growing pressure to overhaul a U.S.-backed anti-narcotics strategy that many political leaders and analysts said is failing amid spectacular drug cartel assaults against the government.

There are now sustained calls in Mexico for a change in tactics, even from allies within Calderón's political party, who say the deployment of 45,000 soldiers to fight the cartels is a flawed plan that relies too heavily on the blunt force of the military to stem soaring violence and lawlessness.

"The people of Mexico are losing hope, and it is urgent that Congress, the political parties and the president reconsider this strategy," said Ramón Galindo, a senator and Calderón supporter who is a former mayor of Ciudad Juarez, a border city where more than 1,100 people have been killed this year.

U.S. officials said they now believe Mexico faces a longer and bloodier campaign than anticipated and is likely to require more American aid. U.S. and Mexican officials increasingly draw comparisons to Colombia, where from 2000 to 2006 the United States spent $6 billion to help neutralize the cartels that once dominated the drug trade. While violence is sharply down in Colombia, cocaine production is up.

Mexico, nearly twice Colombia's size, faces a more daunting challenge, many officials and analysts said , in part because it sits adjacent to the United States, the largest illegal drug market in the world. In addition, at least seven major cartels are able to recruit from Mexico's swelling ranks of impoverished youth and thousands of disenfranchised soldiers and police officers.

"The question is whether the country can withstand another three years of this, with violence that undermines the credibility of the government," said Carlos Flores, who has studied the drug war extensively for Mexico City's Center for Investigations and Advanced Studies in Social Anthropology. "I'd like to be more optimistic, but what I see is more of the same polarizing and failed strategy."

U.S. and Mexican government officials say the military strategy, while difficult, is working. Since Calderón took office in December 2006, authorities have arrested 76,765 suspected drug traffickers at all levels and have extradited 187 cartel members to the United States. Calderón's security advisers said they have few options besides the army -- as they just begin to vet and retrain the police forces they say will ultimately take over the fight.

"No one has told us what alternative we have," said Interior Minister Fernando Gómez Mont, gently slapping his palm on a table during an interview. "We are committed to enduring this wave of violence. We are strengthening our ability to protect the innocent victims of this process, which is the most important thing. We will not look the other way."

Drug-related deaths during the 2 1/2 years of Calderon's administration passed 12,000 this month. Rather than shrinking or growing weaker, the Mexican cartels are using their wealth and increasing power to expand into Central America, cocaine-producing regions of the Andes and maritime trafficking routes in the eastern Pacific, according to law enforcement authorities.

In Mexico, neither high-profile arrests nor mass troop deployments have stopped the cartels from unleashing spectacular acts of violence. This month, the cartel called La Familia launched three days of coordinated attacks in eight cities in the western state of Michoacan. Responding to the arrest of one its leaders, La Familia abducted, tortured and killed a dozen federal agents; their corpses were found piled up beside a highway.

In Ciudad Juarez, just across the border from El Paso, Calderón flooded the city with 10,000 troops and federal police officers in February in an effort to stem runaway violence. After a two-month lull, drug-related homicides surged 307 percent, to nearly eight killings a day in June. On Wednesday, a man eating lunch at a Denny's restaurant across the street from the U.S. Consulate was shot six times in the head by a trio of gunmen.

Lawmakers in Chihuahua state, where Juarez is located, debated this month whether Calderón's surge was "a total failure." Antonio Andreu, president of the state legislature's commission on security, said it appears that drug gangs have infiltrated the military's intelligence networks and figured out how to circumvent the gauntlet of security forces in Juarez.

Héctor Hawley Morelos, the state forensics chief for Juarez, said he expects this year to be bloodier than the last. He said the soldiers don't help solve crime cases and often get in the way of investigations.

But Calderón has no intention of changing course, according to senior Mexican officials. In some respects, the government has become more combative. After a La Familia leader called a television station and said the cartel was "open to dialogue," Gómez Mont vowed that the government would never strike a deal with the traffickers.

"We're waiting for you," he warned La Familia.

In the interview, Gómez Mont said that to ease up now would be to sanction criminal behavior and its corrupting influence on Mexican society.

"We have to do this while we are strong enough to do it," he said. "We know we are right. Do I have to accept corruption as a way of stabilizing our society? No. I have to act."

"This battle is a full frontal assault," Monte Alejandro Rubido, Calderon's senior adviser on drug policy on Mexico's National Security Council, said in an interview. "There are no alternatives."

Calderón is highly regarded in U.S. law enforcement circles for declaring war on the traffickers and increasing cooperation between the two governments. Asked whether he would make any changes to the Mexican president's strategy, Anthony Placido, chief of intelligence for the U.S. Drug Enforcement Administration, replied: "None."

But Placido said he was concerned that Calderón was fighting not only well-entrenched criminal organizations. "He's also fighting the clock," Placido said. "Public support for this can't remain high forever. He's really got to deliver a death blow, or significant body blow, in the short term to keep the public engaged."

Calderón appears to be increasingly isolated in Mexico, weakened by his party's defeat in recent mid-term elections and by the relentless carnage. The cover of the influential news magazine Proceso this week featured a photo of the 12 federal agents, their bound and mutilated corpses in a pile, beneath the headline: "Calderón's War."

"The president feels alone, and he told me that personally," said Galindo, the senator, who belongs to Calderón's conservative National Action Party.

Galindo said he urged Calderón to change course. Instead of relying on the army to destroy the cartels, he said, the federal government should work to strengthen local communities that are most vulnerable to the traffickers.

"Every day that we delay making these communities more self-sufficient, it is going to become more difficult to find good people prepared to serve as mayor in any city -- no matter how large or small -- because it's like a death sentence," he said.

Dan Lund, president of the MUND Group polling organization, said public support for Calderón's strategy appears to be weakest in the places where the federal government needs it most. "In a series of national surveys, polls consistently have found a reasonable but cautious level of support for using the military in the front lines against the cartels," he said. "But in all the states where the military is actually deployed, the support goes down, sometimes dramatically."

The situation has been exacerbated by the global economic crisis, which has cast millions of Mexicans into poverty. José Luis Piñeyro, a Mexican military analyst who maintains close ties with the armed forces, said rising unemployment and poverty "is creating what I call an 'army in reserve,' " for the traffickers.

In Michoacan, La Familia has used the media to try to align itself with the disenfranchised. After the recent attacks, one of its leaders, Servando Gómez, called a local television station and told viewers: "I want to say to all Michoacanans, we love them and respect them."

"Everyone here has known us since we were kids," said Gómez, who is known as "La Tuta." "We are with the people of Michoacan."

Carlos Heredia, a former Michoacan official who now works as an analyst at a Mexico City think tank, said the government's iron-fisted approach is a recipe for failure in regions where mistrust of the government is high.

"You don't have the hearts and minds of the local population," Heredia said. "And if the local drug lords play Robin Hood, then you are lost. Because the people are ultimately going to say, 'What do those officials in Mexico City care about us? They despise us. And these drug guys, at least they give us something.' "

Jul 25, 2009

US Corruption Arrests Shock Jewish Community



24 July 2009

Cavalier report - Download (MP3) Download
Cavalier report - Listen (MP3) audio clip

The arrests of more than 40 prominent politicians and Jewish leaders in New Jersey and New York on corruption and money laundering charges have sent shockwaves through the close-knit Syrian Jewish community there.

Federal investigators in New Jersey announced Thursday they had arrested more than 40 people, including public officials charged with corruption. Charges against others included international money laundering, selling counterfeit goods, and the black-market sale of human organs.

Acting US Attorney Ralph Marra Jr. speaks at a news conference with Newark division special agent in charge Weysan Dun (R), 23 Jul 2009, Newark, N.J.
Acting US Attorney Ralph Marra Jr. speaks at a news conference with Newark division special agent in charge Weysan Dun (R), 23 Jul 2009, Newark, N.J.
In addition to three mayors, officials arrested five influential rabbis from New Jersey and the New York borough of Brooklyn.


"They used purported charities, entities supposedly set up to do good works, as vehicles for laundering millions of dollars in illicit funds. The rings were international in scope, connected to the city of Deal, New Jersey, Brooklyn, New York, Israel and Switzerland," said Acting U.S. Attorney Ralph J. Marra about the money-laundering scheme.

The rabbis are accused of using their congregations' charitable organizations to launder about $3 million by passing money from alleged illicit activity through their charities' bank accounts. The FBI said the rabbis then kept about 10 percent for themselves.

All of the rabbis come from the close-knit and wealthy Sephardic Jewish communities of southern New Jersey and Brooklyn - and the arrests have put the spotlight on a usually quiet community.

Rabbi Saul Kassin (C) leaves federal court in Newark, N.J., 23 Jul 2009
Rabbi Saul Kassin (C) leaves federal court in Newark, N.J., 23 Jul 2009
One of the rabbis arrested, Saul Kassin, is considered the leading cleric of the U.S. Sephardic community, comprised of families that emigrated mostly from the Middle East, Syria in particular, following the formation of the state of Israel in 1948.


Rabbi Kassin leads the largest Sephardic synagogue in the United States, Shaare Zion in Brooklyn, and has written books on Jewish law.

Members of the community have expressed shock and disbelief over the allegations against Rabbi Kassin. Many have been reluctant to speak publicly. One member of Shaare Zion, Ezra Kassin, told reporters he did not believe the charges.

He's just a very honorable person. I can't believe it, I don't believe it. Whatever they want to say, it's hogwash," he said.

Authorities said an FBI "cooperating witness" helped federal investigators gather evidence in the case. Media reports said he was arrested in 2006 for bank fraud.

FBI agent Weysan Dun said the probe seeks to root out corruption in New Jersey, wherever it is found.

"This case is not about politics. It is certainly not about religion. It is about crime, corruption, arrogance. It is about a shocking betrayal of the public trust," he said.

The FBI said the two-year probe is part of a wider investigation into political corruption and money laundering that started 10 years ago.

Jul 3, 2009

Drug-Cartel Links Haunt an Election South of Border

By JOEL MILLMAN and JOSE DE CORDOBA

COLIMA, Mexico -- The candidacy of Mario Anguiano, running for governor in a state election here Sunday, says a lot about Mexican politics amid the rise of the drug cartels.

A brother of the candidate is serving a 10-year prison sentence in Mexico for peddling methamphetamine. Another Anguiano is serving 27 years in a Texas prison for running a huge meth ring. A few weeks ago, a hand-painted banner hung on a highway overpass cited the Zetas, the bloodthirsty executioners for the Gulf Cartel drug gang, praising the candidate: "The Zetas support you, and we are with you to the death."

Mr. Anguiano says his meth-dealing brother was just an addict who sold small amounts to support his habit. He says the man jailed in Texas, reported by local media to be his cousin, may or may not be a relative. "If he is my cousin, I've never met him," he says. Denying any involvement with traffickers, he says the supposed Zetas endorsement was just a dirty trick by his election rivals.

If so, it backfired. In the weeks after the banner made local headlines, new polls showed Mr. Anguiano pulling ahead in the race. He is expected to be elected governor on Sunday.

The reaction suggests how blasé some voters have become about allegations of ties between their politicians and the drug underworld, as Mexico prepares to elect a new lower house of Congress, some state governors and many mayors. This, even as political experts and law-enforcement people worry that violent drug gangs are increasingly bankrolling a wide range of politicians' campaigns across Mexico, in return for turning a blind eye to their activities.
Cartel Turf Wars

The election comes amid President Felipe Calderón's all-out war on drug gangs, which wield armies of private gunmen and account for the bulk of illegal drugs sold in the U.S. The conservative president has deployed 45,000 troops to fight the gangs. In bloody confrontations between his forces and the cartels, and especially in turf battles among the cartels, an estimated 12,000 lives have been lost since Mr. Calderón took office in late 2006. June was the deadliest month yet: 769 drug-related killings, according to a count by Mexican newspapers.

Until recent years, Mexican drug traffickers focused the bulk of their bribery efforts on law enforcement rather than politicians. Their increasing involvement in local politics -- in town halls and state capitals -- is a response, experts say, to the national-level crackdown, to changes in the nature of the drug trade itself and to the evolution of Mexico's young democracy.

Mario Anguiano's campaign for governor in Mexico reveals the problems of power in a country with increasing narcotics trafficking and violence. WSJ's Joel Millman reports.

Starting in 2000, a system of fiercely contested multiparty elections began to replace 71 years of one-party rule, the Institutional Revolutionary Party, or PRI. "In this newly competitive, moderately democratic system, it takes serious money to run a political campaign," says James McDonald, a Mexico expert at Southern Utah University in Cedar City, Utah. "This has given the narcos a real entree into politics, by either running for office themselves or bankrolling candidates."

In addition, the gangs have evolved from simple drug-smuggling bands into organized-crime conglomerates with broad business interests, from local drug markets to extortion, kidnapping, immigrant smuggling and control of Mexico's rich market in knockoff compact discs. "There is more at stake than before. They need to control municipal governments," says Edgardo Buscaglia, a professor of law and economics at both Columbia University and Mexico's ITAM University.

Because of the federal crackdown and the warfare between rival cartels the drug traffickers also need more political allies than ever before.

Politicians who won't cooperate sometimes are threatened. On Monday, in the drug-producing state of Guerrero, a grenade blew up a sport-utility vehicle belonging to Jorge Camacho, a congressional candidate from President Calderón's National Action Party, or PAN. A message next to the destroyed car said, "Look, you S.O.B. candidate, hopefully, you will understand it is better you get out, you won't get a second chance to live."

Mr. Buscaglia says criminal groups' one-two punch of bribes and threats has given them either influence or control in 72% of Mexico's municipalities. He bases his estimate on observation of criminal enterprises such as drug-dealing and child-prostitution rings that operate openly, ignored by police.

According to a September 2007 intelligence assessment by the U.S. Federal Bureau of Investigation, the governors of the states of Veracruz and Michoacán had agreements with the Gulf Cartel allowing free rein to that large drug-trafficking gang. In return, said the report, which was reviewed by The Wall Street Journal, the cartel promised to reduce violence in Veracruz state and, in Michoacán, financed a gubernatorial race and many municipal campaigns across the state.

In Veracruz, the FBI report said, Gov. Fidel Herrera made a deal with the cartel letting it secure a drug route through the state. In an interview, Mr. Herrera said the allegation is "absolutely false, and has no basis in fact -- it never happened." The PRI politician said he has never had any dealings with a criminal organization and blamed a rival political operative, whom he declined to name, for trying to sabotage his career.

In Michoacán, the FBI report said, "in exchange for funding, the Gulf Cartel will be able to control the port of Lázaro Cárdenas, to continue to introduce cocaine and collect a 'tax'" from other Mexican drug-trafficking organizations.
Control of Ports

Lázaro Cárdenas Batel, the Michoacán governor from the leftist PRD party who was in the office when the FBI said the deal was made, says the allegation is "totally false." Mr. Cárdenas Batel, grandson of the former Mexican president for whom the port is named, said Mexican ports are controlled by federal agencies, so drug traffickers have nothing to gain from bribing state officials in connection with them.

His successor, the winner of the 2007 election, is Leonel Godoy, also of the PRD. He calls the FBI allegation "an infamy" with "not a shred of evidence or any proof," and said he had never met or cut deals with drug traffickers. Messrs. Cárdenas Batel and Godoy both say they had alerted authorities before the elections about the growing infiltration of drug traffickers in Michoacán.

None of the three men -- Messrs. Cárdenas Batel, Godoy and Herrera -- have been charged with any crime. U.S. intelligence documents have occasionally proved unreliable in the past.

Police agents in Mexico City stand guard in May after a group of top officials from Michoacán were detained due to their alleged ties to 'La Familia' drug cartel. Ten mayors and 17 other officials were detained.

The Gulf Cartel doesn't appear to be the only gang with alleged influence in Michoacán officialdom. In May, soldiers and federal police arrested 10 mayors, as well as 17 police chiefs and state security officials, including a man who was in charge of the state's police-training academy. They have been charged with collaborating with "La Familia," the state's violent homegrown drug gang. Those arrested, who have said they are innocent victims of political vendettas, represented all three of Mexico's main political parties. On Monday, three more people, including the mayor of Lázaro Cárdenas, were arrested and charged with the same offense, according to the attorney general's office.

Five hundred miles to the north in the wealthy Monterrey suburb of San Pedro Garza García, a mayoral candidate from President Calderón's party sparked a scandal in June when he was recorded telling a gathering of supporters that security in the town was "controlled by" members of one of Mexico's most fearsome drug cartels, the Beltran Leyva gang.

The candidate, Mauricio Fernandez, seemed to suggest he would be willing to negotiate with the Beltran Leyvas if elected. "Penetration by drug traffickers is for real, and they approach every candidate who they think may win," Mr. Fernandez was recorded saying. "In my case, I made it very clear to them that I didn't want blatant selling."

Mr. Fernandez has acknowledged the audiotape's authenticity, but says his statements were taken out of context and that he had never met with members of the Beltran Leyva cartel. He says the full tape captures him saying he would not negotiate with the drug traffickers. As the election nears, he leads polls by a wide margin.

Meanwhile, in the central Mexican state of Zacatecas, Mayor David Monreal of the town of Fresnillo denied having anything to do with 14.5 tons of marijuana police found months ago in a chili-pepper-drying facility owned by his brother. Mr. Monreal, who plans to seek the governorship next year, said his political enemies planted the mammoth stash.

In the campaign, the state of Mexico's economy appears to trump the drug issue for many voters. The economy is shrinking amid slumps in oil production, in exports to the U.S., in tourism and in remittances from emigrants. Polls give the PRI, the party that ruled for seven decades, an advantage of about six percentage points.

The governing party has made President Calderon's campaign against drug traffickers its main theme, and polls show his policy of using the military in the effort is widely popular. But they also show a majority of Mexicans don't think he is winning the narco-war.

Drugs are certainly campaign fodder in the border state of Chihuahua, where former Ciudad Juárez Mayor Héctor Murguía is the PRI's candidate for a congressional seat. Two years ago, Mayor Murguía named as his chief of public security a businessman named Saulo Reyes Gamboa. Last year, Mr. Reyes was arrested by U.S. law-enforcement agents in El Paso, Texas, after allegedly paying someone he thought to be a corrupt U.S. federal officer to help smuggle drug loads. During the operation, federal agents found nearly half a ton of marijuana in a Texas house, which they say Mr. Reyes had arranged to smuggle from Mexico.

Mr. Reyes, who pleaded guilty and is now serving eight years in a federal prison in Kentucky, couldn't be reached for comment. Mayor Murguía says that he has had no involvement with the Juárez Cartel and that Mr. Reyes never contributed "even five pesos" to support his political career.

Despite the bad publicity, Mr. Murguía is leading in polls and is expected to win Sunday -- not unlike Mr. Anguiano, the candidate in Colima with the supposed endorsement from the Zetas.
Talking Frankly

In Colima, the candidate for governor from President Calderón's party, Martha Sosa Govea, hasn't faced any narco-tie allegations. But there has been plenty of comment about her protegé, national assembly candidate Virgilio Mendoza Amezcua, thanks to a tape of him talking frankly about politics and drug traffickers, recorded by members of a rival party he was trying to win over.
[Drug-Cartel Links Haunt Election]

"You don't imagine how many 'nice' people have relations with those drug-trafficking bastards, and through them, the bastards bring things to you," he said on the tape. "They try to seduce you....They got close to me like they get close to half the world, and they sent me money."

Mr. Mendoza declined to comment, but has previously denied he took any money from the cartels. Ms. Sosa said the tape might have been doctored, and in any case, "just because they have him on a tape getting an offer of dirty money, there's still nothing on tape proving he accepted it."

The tape was turned over to federal authorities to determine whether it had been altered. Citing the proximity to the election, the Attorney General's office declined to comment on any of the drug cases.

Colima, though largely exempt from the narco-violence raging in neighboring states, has a reputation as a haven for traffickers, a sleepy place where residents don't ask questions about rich new neighbors. In the 1980s, Colima was home to a gentleman rancher from Guadalajara whom everybody knew as Pedro Orozco. He spent lavishly on schools, gave to charity and hung around with politicians.

In 1991, Mr. Orozco was gunned down in a firefight in Guadalajara, then Mexico's drug capital. It turned out the generous man-about-town was actually Manuel Salcido Uzueta, a top drug capo better known as Cochiloco, meaning the Mad Pig.

Ever since, Colima residents have grown cynical about the influence of drug gangs in politics. "Corruption? Drug ties? They say that about everyone who runs for office. Who can you believe?" says Salvador Ochoa, a local lawyer.

Ms. Sosa has been hammering her opponent, Mr. Anguiano, with claims that he has links to drug trafficking. But, she concedes, the response of many voters is, "Poor guy, why don't they just leave him alone?"

Write to Joel Millman at joel.millman@wsj.com and Jose de Cordoba at jose.decordoba@wsj.com

An Empire of Vice

By Joshua Jelly-Schapiro

Havana Nocturne: How the Mob Owned Cuba...andThen Lost It to the Revolution
by T.J. English

Cuba in the American Imagination: Metaphor and the Imperial Ethos
by Louis A. Perez Jr

Pichon: Race and Revolution in Castro's Cuba, a Memoir
by Carlos Moore

Bacardi and the Long Fight for Cuba: The Biography of a Cause
by Tom Gjelten

That Infernal Little Cuban Republic: The United States and the Cuban Revolution
by Lars Schoultz

The Cuba Wars: Fidel Castro, the United States, and the Next Revolution
by Daniel P. Erikson

Three days before Christmas in 1946, Havana's Hotel Nacional was closed for a private meeting. Armed guards blocked entry to its lovely grounds atop a seaside bluff in the plush El Vedado district. Inside the stately cream-colored Art Deco hotel, a group of distinguished foreign visitors tucked into a feast of local delicacies. There were crab and queen conch enchiladas from the southern archipelago; swordfish and oysters from the nearby village of Cojímar; roast breast of flamingo and tortoise stew; grilled manatee, washed down with añejo rum. It is unknown whether the attendees--whose number included about twenty of North America's most notorious gangsters--ended their meal with a cake like the one served at their feast's fictional rendering in The Godfather Part II. But as in the film, the purpose of the gathering was clear: to divvy up shares in the empire of vice they were busy establishing in Havana.

During the next decade, the mafia built a seaside gambling resort, which soon rivaled in profits and glamour its sister project in dusty Las Vegas. Under the canny direction of Meyer Lansky, the Jewish don who'd risen from the streets of New York's Lower East Side, members of the Havana Mob became fabulously wealthy. So too did Cuba's US-backed dictator, Fulgencio Batista, whose stake in the mob's affairs exceeded the sacks of cash delivered weekly to the presidential palace. With Lansky and fellow mobsters like Santo Trafficante employed as "tourism experts" in his government, Batista eliminated taxes on the tourism industry, guaranteed public financing for hotel construction and--as T.J. English shows in Havana Nocturne, an exacting and lively account of the era--even granted responsibility for Cuba's infrastructure development to a new mob-controlled bank, BANDES. In December 1957 the opening of the Riviera, a $14 million mafia show palace just down the seawall from the Nacional, was celebrated by a special episode of The Steve Allen Show on US television and a gala in Havana featuring Ginger Rogers. Three months later, the twenty-five-story Havana Hilton--mortgage holder: BANDES--became Cuba's biggest hotel yet.

The party ended on New Year's 1959, when Batista fled the island as Fidel Castro's barbudos advanced on its capital. Castro and his bearded rebels established their headquarters in the Havana Hilton and loosed a truckload of pigs on the sleek lobby of the Riviera. Castro announced the "socialist nature" of his revolution. Nikita Khrushchev sent Soviet missiles. President John F. Kennedy--who, during a visit to Havana the previous year as a senator, had spent an afternoon with three mob-supplied prostitutes under the gaze, from behind a two-way hotel-room mirror, of Santo Trafficante--instituted the embargo that defines US-Cuba relations to this day.

"I couldn't get that little island off of my mind," Lansky remarked after his first visit to Cuba in the 1920s. The gangster was no less covetous of Cuba, and proved no less fixated on controlling it, than a series of US presidents reaching back to the founders. "I have ever looked on Cuba," wrote Thomas Jefferson to President James Monroe when the United States gained control of the Florida peninsula in 1821, "as the most interesting addition which could ever be made to our system of States." Monroe's secretary of state, John Quincy Adams, was more blunt. "The annexation of Cuba to our federal republic," he wrote, "will be indispensable to the continuance and integrity of the Union itself." After the United States took possession of Texas and California by war in 1848, many in Washington advocated annexing Cuba by force as well. The impulse was quashed for a time. Nevertheless, with Spain's empire sunk in a long decline, the United States' eventual possession of Cuba was viewed as inevitable for most of the nineteenth century. In a political cartoon from 1897, one of a trove of such images Louis A. Pérez Jr. uses to illustrate his brilliant book Cuba in the American Imagination, Uncle Sam stands beneath a fruit tree with a basket of plums, each bearing the name of a foreign territory already attained--Louisiana, Florida, Texas. From an upper branch hangs a "Cuba" plum, upon which Sam gazes keenly, his look distilling the common view: if America refrained from picking Cuba with a forceful hand, the ripe prize would eventually fall to its basket simply by dint of geography and time.

When the warship USS Maine mysteriously exploded while docked at Spanish Havana in February 1898, the United States had a pretext for shaking the tree of its remaining fruit. A few months later, Cuban rebels and invading US forces expelled Spain from the island, and Cuba (along with Puerto Rico, Guam and the Philippines) was annexed to the United States. "We went to war for civilization and humanity," President William McKinley eulogized, "to relieve our oppressed neighbors in Cuba." Humanity's gains were hazy, but what the United States certainly gained from the war was an empire. Puerto Rico and the Philippines became de facto American colonies; and with the passage of the Platt Amendment in 1901, Washington arrogated to itself the right to intervene in Cuba's affairs whenever it wished--providing also for the seizure of Cuban territory at Guantánamo Bay to establish a US naval base purposed "to enable the United States to maintain the independence of Cuba" (and conveniently positioned to protect what would soon be a key sea lane to the Panama Canal).

Gaining control of Cuba fulfilled a long-sought strategic aim. But equally important for the United States was how the invasion of Cuba came to shape its foreign policy and self-image at large. The Spanish-American War--the Union's first large-scale military campaign since Reconstruction--bolstered American unity and inaugurated America's self-conception as a "universal nation" endowed with the moral mission of projecting its power abroad. Before 1898, as Pérez stresses, quoting the historian Norman Graebner, "the foreign policies of the United States were rendered solvent by ample power to cover limited, largely hemispheric, goals." Afterward, those policies became global, their stated aims--universal democracy and freedom for all humanity--abstract in nature and unobtainable in practice. As Pérez writes, the template for US foreign wars, up to the "war on terror," with its crusading aim to "rid the world of evil," was cast in America's war for Cuba.

The argument that the Spanish-American War was a watershed in the United States' fashioning of its national identity isn't new. The value of Pérez's study--the latest in a series of perceptive books on US-Cuba relations by this prolific historian--is to illustrate how an avid US self-interest was transformed into selfless moral enactment. While Cuba in the American Imagination is hampered by confusing chronology, Pérez shows clearly how in the late nineteenth century politicians in the United States and their allies in the press employed language--and a series of figurative metaphors specifically--to nurture in Americans' minds a conception of Cuba as object and stage for fulfilling the United States' imperial destiny. Early on, there was the image of Cuba as ripening fruit that would "naturally" and inevitably one day be Uncle Sam's. Later came references to Cuba as "our Armenia," implying that the United States, by defending Cuba's rebels against Madrid's repression, could prove its humanitarian mettle where Europe's nations had failed to prevent the recent Armenian genocide at their door. And finally, as invasion approached, there were invocations of Cuba as a virtuous lady whose protection against Spain's depredations was a test of American manhood.

This last figure was yanked out of the political funny pages and foisted upon Evangelina Cossío Cisneros, the 18-year-old daughter of a Cuban rebel leader purportedly arrested for sedition in August 1897 who was also, according to William Randolph Hearst's New York Journal, "the most beautiful girl in the island." Evangelina's picture became a tabloid staple, her ordeal at the hands of her captors the topic of regular lurid updates. The melodrama ended only when Hearst's paper announced, two months before the explosion of the USS Maine, that it had arranged for Evangelina's escape to the United States. To celebrate her arrival as a "Cuban Joan of Arc," Hearst organized a mass rally to which more than 75,000 New Yorkers arrived chanting "Viva Cuba Libre!"

In the aftermath of the Spanish-American War, the US agenda changed from justifying invasion to legitimating a continued military and economic presence. Accordingly, the representation of Cuba as a comely woman in distress--usually depicted, like Evangelina, as white in complexion (and thus a fair reflection of American virtue)--changed too. The mixed-race isle was now depicted in tabloid cartoons as a pitiable black child holding the hand of a beneficent Uncle Sam on the path to progress. Previously, US opponents of annexing Cuba had often based their arguments in racism. "The white inhabitants form too small a proportion of the whole number," as one diplomat put it in 1825; moreover, explained a Congressman in 1855, "the Spanish-Creole race...are utterly ignorant of the machinery of free institutions." Now the same logic justified a strong imperial hand. The Cubans, the commanding US general in the 1898 war declared, were "no more capable of self-government than the savages of Africa."

If once Cuba had figured as a virtuous lady in need of saving by an imperial enterprise cloaked in a mission civilitrice, it soon came to be seen as a different sort of woman, one whose mission was servicing others. "We gave Cuba her liberty," declared a US Army veteran on holiday in Havana in 1925, "and now we are going to enjoy it." The island's bustling main seaport had never been a stranger to prostitution. But as the tourist trade grew, so did Havana's reputation as "the brothel of the New World." The island "was like a woman in love," touted a typical travel writer's account, and "eager to give pleasure, she will be anything you want her to be." Simultaneously overseas and right next door, Cuba became the place where Americans--especially American men--went to escape the stolid mores of wife and home. With the passage of Prohibition in 1919, legal booze fortified Cuba's libertine lure. When It's Cocktail Time in Cuba was the title of a popular US tourist guide, and Havana bartenders concocted new rum-based elixirs like the Cuba Libre and mojito to coax more cash from Northern visitors. A short cruise from Florida--or, after Pan-American Airways launched its first international passenger route with Miami-Havana flights in 1928, an even shorter plane ride--Cuba was, by the 1930s, receiving more US visitors than even Canada.

By the time the US mob launched their Havana plot in earnest in 1946, tourism was already well established as a key portion of Cuba's economy. Mob designs for "the Monte Carlo of the Caribbean" evoked European playgrounds, with hotels named the Riviera, Deauville and Capri. But by the 1950s, "Havana" had acquired its own cachet for American consumers as both brand and idea. On television Desi Arnaz was the all-purpose Latin Lover, and advertisements hawked Havana perfume, Havana soft drinks, Havana lingerie. "Waving palms, a cool island breeze," went the slogan for El Paso brand Cuban Black Bean Dip. "Visit a forbidden paradise of silky black beans, sweet red pepper and an undercurrent of rich gold rum, resulting in a Cuban sensation that may taste mild, but is definitely hot, hot, hot!"

The cold war ended Havana's viability as marketing hook for consumers to the north. That it also made Cuba legally forbidden to American travelers, though, doubtless contributes to a still-thriving trade in Cuba-related books in the United States--volumes that (no matter their particular topic or politics) often find it impossible not to trade in shopworn clichés about pulsing rhythms and caramel skin and crashing waves on the Malecón. Even in a book like T.J. English's authoritative and otherwise sharply written Havana Nocturne, everything from Batista's facial features to the city's jazz scene is described as "exotic." Never mind that the cultures of Cuba and the United States have always been more deeply intertwined than partisans of either nation have sometimes cared to admit. The jazz bands that thrilled American tourists in 1950s Havana borrowed from the inventions of musicians in New York and Chicago; and no less a touchstone of Americana than rock 'n' roll, as the music historian Ned Sublette has convincingly shown, owed as much in its genesis to Cuban rhythms ringing out of Havana as it did to blues riffs busting out of Memphis or New Orleans. Indeed, for two centuries up until 1960, the cultures of New Orleans and Havana were joined and nurtured by the streams of migrants and goods flowing between them.

What the "exotic" label also tends to conceal about Cuba is that to its own people as well as outsiders, the island has long been as much an idea as a country. At least since José Martí, the great poet laureate of Cuban independence, began composing odes to the island's "half-breed" soul in the late 1800s, there has existed in Cuba an obsession with reflecting upon and debating the national character. This tradition is perhaps most memorably manifested in the seminal anthropologist Fernando Ortiz's argument, in Cuban Counterpoint (1940), that all of Cuban identity and culture--from the rumba to the mulata to the cigar--can be understood as outgrowths of an economy based in producing tobacco and sugar for export. The discussion has taken many forms, but perhaps the dominant current in Cuba's politics and intellectual culture has always been the struggle over cubanía, or Cubanness. Fidel's revolution, before it was Marxist-Leninist or Castroist or anything else, has always been framed and experienced in Cuba as a nationalist struggle. Accordingly, it was not solely on the grounds of Marxian virtue but also cubanía that Fidel battled cocaine and prostitution as "un-Cuban" in the 1960s (never mind the Havana Mob's avoidance of the drug trade, or that sex-for-pay held a prominent place in Cuban society long before its exploitation by yanquis) and contended, during the 1970s, that Cuba's military involvement in Angola and Mozambique was driven by Cuba's core identity as an "Afro-Latin" nation.

Fidel's custodianship of cubanía has deep roots in a much longer history of Cuban men of privilege (and usually light skin) defining the nation's identity. Batista was a mulatto cane-cutter's son; Fidel and his brother Raúl were the children of wealthy Spanish landowners--putative members, that is, of a class of Cubans who thought the déclassé rule of an uneducated army colonel a national shame. Not every member of Cuba's elite who came to support Castro against Batista in the 1950s was driven by prejudice; Fidel has always been a strong antiracist, in his way. But the machista worlds of elite Cuban politics and culture have always been paternalistic, whether in José Martí's wishful 1891 declaration that in Cuba "there are no races," or the longstanding tradition--from Nicolás Guillén's iconic 1930 poem "Mulata" to innumerable paintings of the copper-skinned Virgen de la Caridad--of holding up the sexy mulata as embodiment of cubanía, while affording to actual brown-skinned Cuban women little place in that nation beyond its brothels and kitchens.

After racial discrimination was officially banned in 1960 by his revolution, Fidel blithely declared that racism was defeated in Cuba. As in 1891, the actual situation was more complex. The masses of Afro-Cubans who'd lived in illiterate destitution since slavery--and seen 6,000 of their forebears massacred in a horrific 1912 race war--had the most to gain from socialist projects in housing, healthcare and education. That Cuba's 4 million blacks still provide a key base of Communist Party support is a measure of how much their lives have improved under Fidel. But as Carlos Moore writes in a poignant new memoir, Pichón, Castro's blind spots with regard to race have at times also been pernicious. Pichón takes its title from a Cuban slur for Jamaican and Haitian laborers who survived the Depression by scrounging for slaughterhouse scraps in the manner of ugly black buzzards, or pichónes. The book begins with Moore recounting a rural Cuban childhood of being tormented by the fists and epithets of white schoolmates. Then comes the story of his personal epic: leaving for New York City at 16 in the late 1950s and falling into the black radical demimonde of Maya Angelou and Malcolm X, then returning to Cuba as an ardent Fidel admirer in the early 1960s, only to be imprisoned and exiled by Fidel's revolution for daring to protest the race prejudice of certain of its ministers.

Moore renders this tragic tale with frank clarity. He met his mentor Angelou in a Harlem bookshop shortly after his arrival to the cosmopolis in 1958; scarcely two years later, he directed an occupation of the UN General Assembly to protest the US-sponsored killing of the Congolese freedom fighter Patrice Lumumba. It was during Castro's own 1960 visit to the UN--during which Fidel stayed at the Hotel Theresa in Harlem to convey solidarity with those oppressed by the US empire at home--that Moore decided it was his revolutionary duty to join the cause.

Returning to Havana in June 1961, Moore sought to put his skills as an English speaker to work at the Foreign Ministry. He became convinced that the bureaucrat denying his requests for a job was doing so on account of his dark skin, and he took the audacious step of traveling to a provincial army barracks to demand a meeting with the only Afro-Cuban member of Fidel's inner circle, the guerrilla hero Juán Almeida. Almeida indulged the headstrong youth with a warning to "stop talking as you do," but once back in Havana, Moore was "detailed" by the revolutionary police and tossed into a new jail made from a converted mansion on the city's outskirts. He was released a few weeks later with no charge or explanation and eventually found work in another branch of the government. But in late 1962, after some months of increasing disquiet about the revolution's puritanical excesses--with police sending homosexuals to labor camps and forcibly shuttering Afro-Cuban social clubs--Moore encountered his old nemesis in the Foreign Ministry. Furious that the young negrito was still at large, the bureaucrat promised to ensure that Moore was "take[n] care of" for good. That afternoon Moore knocked at the door of the Havana embassy of the new West African nation of Guinea and requested asylum; a few weeks later he left Cuba on a freighter bound for Africa. Eventually settling in Paris, he went on to write Castro, the Blacks, and Africa (1989), a controversial radical critique of the revolution's race mores whose exaggerated animus, given the experiences related in Moore's more personal and worthwhile memoir, is perhaps now clearer at its source.

When Moore went into exile in the early 1960s, most Cubans who fled the island belonged to its white upper classes. The arch-right-wingers among them nurtured a deep anger about Castro's "giving it all away" to the riffraff and pichónes. Their story is perhaps less tragic than that of exile families with more liberal pasts like the Bacardis, owners of the eponymous liquor empire, whose story Tom Gjelten traces in his splendid family chronicle Bacardi and the Long Fight for Cuba. The tale begins with the penniless Catalan immigrant Facundo Bacardi's discovering, in the 1860s, a new way to distill sugar cane into clear white rum. His son Emilio Bacardi became a key ally of José Martí in the fight for independence in the 1890s, and the Bacardis' 1950s heirs were fervid Fidel supporters--but then left the island and became fervid Castro-haters when he ordered a state takeover of the company they'd spent a century building from scratch. (One of Fidel's great claims to revolutionary virtue is that he did not spare his own parents' latifundio from being nationalized and split up in the first agrarian reform.) Family sagas about seized storehouses and abandoned mansions compose the sacred text of mainstream Cuban-exile politics. But as stories like Carlos Moore's show, belonging to a class of Cubans whose lot the revolution improved granted no exemption from being tyrannized by party discipline and hierarchy.

When Fidel Castro took command of Havana in January 1959, few in or outside Cuba knew much about him beyond his magnetism and rousing oratory; apart from Castro's loathing of Batista and idolizing of Martí, his politics--as the Eisenhower administration's "watch and wait" approach to his government shows--were vague even to close observers. Soon enough, his strident nationalism and messianic bent were clear. But even as Castro's government began seizing lands owned by US companies as part of its first agrarian reform in June 1959--and powerful Washington interests began urging Eisenhower to respond by ending the longstanding US agreement to purchase most of Cuba's sugar--few foresaw the antagonisms and escalation to come.

With Cuba's continued access to the chief market for its main crop looking unsure, and radicals like Che Guevara at Fidel's ear, whatever doubts Castro had about Leninism disappeared. In February 1960 a delegation of Soviet ministers arrived in Havana and signed an agreement to purchase much of Cuba's sugar; Che traveled to Moscow a short while later to secure Havana's ties to the Eastern Bloc. Three years after Khrushchev had promised "we will bury you," the Soviets had established a Communist beachhead in easy range of Florida, on an island, moreover, that the United States had regarded as an amour propre. The trauma was deep. In Washington a flurry of panicked recriminations over how this could have been allowed to happen--traced by Lars Schoultz with insightful verve in That Infernal Little Cuban Republic, a comprehensive history of US-Cuba relations since World War II--was translated into an ill-conceived CIA-sponsored invasion in April 1961. The Bay of Pigs fiasco did Fidel the great favor of allowing him to oversee the defeat of imperialist invaders on Cuba's beaches. In the months following, the Kennedy administration hatched a tragicomic series of attempts to kill Castro with explosive seashells and poisoned cigars (a job for which the CIA contracted the president's old Havana pimp, Santo Trafficante, now in Miami). But no matter. In October 1962, Washington's worst fears were realized when a US spy plane over Cuba's countryside snapped photos of Soviet missile launchers nestled amid royal palms.

Whether or not the Cuban missile crisis was the most dangerous and direct confrontation of the cold war, it's clear that Cuba's role was that of pawn or prop. This did not comfort Castro, who harbored deep resentment when Khrushchev failed to consult him before Moscow agreed to remove its nuclear missiles--a reaction that reveals the particularly Cuban pathos of this puffed-up leader of a smallish island driven by the need to be treated and seen as head of a big powerful nation (or at least a sovereign one). The longstanding US irritation with Cuba, Schoultz observes, stems from its leaders' persistent denial of the base precept of political realism distilled in Thucydides' dictum that the strong do what they can and the weak suffer what they must. Schoultz presents his history as a "case study in the trials and tribulations of realism"--an investigation into how for the past fifty years a weak state has "gotten away" with standing up to its vastly stronger neighbor and how, conversely, the stronger was made to let the weaker do so.

For three decades, of course, a large part of how Cuba "stood up" to the US empire lay also in its becoming the client state of another empire. This truth did not prevent Cuba from becoming a new kind of symbol across a Latin America long frustrated by the condescension of its Northern hegemon. Across the hemisphere, the mythic story of Cuba--a miraculous fable about a merry band of longhairs who went into their country's mountains and a few years later swept into its capital on the shoulders of its poor--was one that women and men who loved justice would seek to re-create from El Salvador to Colombia to Bolivia and Peru. In Washington, conversely, a new guiding metaphor for Cuba emerged: that of a malignant cancer whose spread had to be contained at all costs. And so it was that many thousands of those Latin Americans who went to the continent's jungles during the '60s, '70s and '80s, some toting photos of Che and Fidel in their knapsacks, died awful deaths with those whose cause they raised, too often the "disappeared" victims of US-backed dictatorships and death squads.

Since the cold war's end, US policy mavens have argued over the extent to which those dark decades' abuses were, if not justifiable, understandable given the strategic threat posed by the prospect of another Soviet satellite in its "backyard." What the years since the USSR's fall have also laid bare, however, is the extent to which Washington's approach to Cuba itself has been driven by other than simply rational aims like containment. "Castro is not merely an adversary, but an enemy," a 1993 report from the US Army War College observes, "an embodiment of evil who must be punished for his defiance of the United States.... There is a desire to hurt the enemy that is mirrored in the malevolence that Castro has exhibited towards us." For US politicians in national campaigns, being "tough on Cuba" long ago took its place with being "a friend to Israel" as a sine qua non of victory. As Cuba's potential threat to US security has progressively dwindled to nearly nil, US antagonism toward its government has only deepened. The Cuban Democracy Act of 1992 codified the embargo as US law and was toughened in the Helms-Burton Act signed by Bill Clinton in 1996, which prohibited US companies from dealing with foreign firms engaged in business with Cuban property seized by the revolution, and also mandated that the embargo could not be lifted until such time as Cuba is run by a government "that does not include Fidel Castro or Raúl Castro."

More recently, George W. Bush, who owed his presidency to south Florida, used his office in 2004 to funnel $59 million in new funding to no-bid Miami-Cuban boondoggles like the propaganda networks Radio and TV Martí. He also moved to close one of the embargo's few loopholes by introducing strict limits on remittances Cuban-Americans may send to family members on the island and on the number of trips they may take to visit them. Bush also placed Cuba on the US list of "state sponsors of terror" (based on an alleged chemical weapons program whose existence his own State Department doubted) and, in the long run-up to the 2004 election, established, at the heart of the executive branch and under the chairmanship of Secretary of State Colin Powell, a Commission for Assistance to a Free Cuba. It was charged with determining how "to hasten the end" of the Castro dictatorship and in May 2004 produced a report recommending, for example, that in the wake of an anticipated violent transition, Cuban schools be kept open "in order to keep children and teenagers off the streets."

As Daniel Erikson shows in The Cuba Wars, a sharp and deeply reported account of dynamics informing US-Cuba policy since the Clinton administration, Castro's government was concerned that Cuba's involvement in Bush's "war on terror" would go beyond the United States' use of its imperial relic at Guantánamo Bay to hold certain prisoners beyond the jurisdiction of US courts. The Cubans "were really worried," Lawrence Wilkerson, longtime chief of staff to Colin Powell, tells Erikson of a visit he made to Havana just after leaving the State Department in 2005. "They wanted me first of all to assure them that we weren't going to invade." In the spring of 2003, Fidel Castro--practiced in paranoia, always more comfortable on a war footing than not--responded to the new provocations by ordering the trial for treason of some seventy-five "dissidents," some of whom were indeed Cubans being paid by the United States to tweak (if hardly, in practice, to destabilize) their government, but most of whose offenses amounted to writing articles and circulating petitions. Some fifty-odd of "the 75" remain jailed today.

In 2003 I was living in Havana, and as at so many other times when Cuba had become the subject of hyperventilated fits abroad, the arrests and diplomatic volleys were little more than background noise to the struggles of quotidian life. People who sought more food than allotted by their ration card broke the law daily. That spring, an architect I was friendly with began selling stolen shellfish to feed his family, and his cousin had taken to earning new clothes by satisfying the bedroom predilections of Italian sex tourists. More significant to Cubans than Washington's longstanding obsession with upending their government were concerns over what that government might do to repair a broken economy. Such grave ills aside, not a few Cubans remain proud that theirs is a poor country in which "no children sleep in the streets," as a propaganda billboard near my Havana apartment touted truly. The Communist Party enjoys significant support, especially in the provincias--where peasants fifty years ago lived in dirt-floored huts and still do so today, but now regard free healthcare for their parents and good schools for their kids as birthrights. More generally, it's open to debate whether the Cuban state's solicitude toward its young and its aged is "worth" the repression too often endured by everyone else. But from the standpoint of a failed fifty-year attempt by the United States to change the island's government by isolation, the salient facts about Cuba are that it enjoys good relations and strong economic ties to every other country in the hemisphere, including Canada (not to mention China and the European Union), and that it has a stable government, in evidently firm control of its military and police, which has carried off its recent change to a new head of state with apparently minimal fuss.

Raúl Castro--longtime head of Cuba's military, a dour party man--has, with the illness of his brother, been cast in the unlikely role of reformer. Many in Cuba express hope that Raúl's early gestures at reform, like his opening of the grounds of tourist hotels such as the Hotel Nacional to ordinary Cubans, may augur a larger opening of the Cuban economy. During the presidential campaign, Barack Obama called Raúl's bluff by suggesting that he'd be willing to sit down with Cuba's new leader with a view toward improving relations. Realists predictably think this prospect, like Raúl's proffering of Cuba's "willingness to discuss on equal footing the prolonged dispute" with the United States, is a nonstarter: Obama's secretary of state, back when she was not his head diplomat but primary rival, called his willingness to meet with "foreign dictators" like Cuba's new leader "irresponsible." But during its first weeks, the Obama administration--no doubt cognizant of polls showing that younger Cuban-Americans voice little support for the hardline stance of the past, and that even a symbolic thaw with Cuba would be an easy way to improve relations with the rest of Latin America--successfully marshaled a bill through Congress overturning Bush-era restrictions on family visits and remittances. All this move does is return the United States' Cuba policy to its 2003 status. But it was a key signal that a larger overhaul of the Cuba policy will be on the table in Obama's Washington. At April's Summit of the Americas, the president observed that Cuba's thousands of doctors dispersed throughout the region were "a reminder for us in the United States that if our only interaction with many of these countries is...military, then we may not be developing the connections that can, over time, increase our influence." Obama also declared that a "new beginning with Cuba" could be near. That initial signal, it seems, has been confirmed.

In 1891, José Martí, the most articulate of Cuban nationalists and also perhaps his generation's most perceptive writer on inter-American relations, wrote in Nuestra América, "One must not attribute, through a provincial antipathy, a fatal and inbred wickedness to the continent's fair-skinned nation simply because it does not speak our language, or see the world as we see it, or resemble us in its political defects, so different from our own." For many Cubans, the election of Obama represents an overcoming of political defects, and in his brown face they see not a "fair-skinned nation" but something of themselves; their hope is that Obama will be a leader free of many of his country's old neuroses. The ultimate test of those hopes will be ending the long-running embargo, which Wilkerson, expressing a widely held but rarely stated Washington view, called, in an interview with GQ, "the dumbest policy on the face of the earth." No less incontestable is a remark made in 1974 by the now-ailing barbudo in Havana, who recently expressed doubt that he'd live to see the end of Obama's first term. "We cannot move, nor can the United States," Fidel Castro observed in an interview. "Speaking realistically, someday some sort of ties will have to be established."


About Joshua Jelly-Schapiro
Joshua Jelly-Schapiro is a doctoral student in geography at the University of California, Berkeley.