Drug Money Laundered by Two Florida Police Agencies, And Stark Corruption at All Levels of Government

Screen shot of Miami Herald's page for "License to Launder" series
Screen shot of Miami Herald’s page for “License to Launder” series

Nearly two weeks ago, the Miami Herald published a major investigative journalism series on two small Florida police agencies, which engaged in undercover money laundering operations with criminal organizations involved in drug trafficking so officers and the police departments themselves could claim millions of dollars as their own.

The series, “License to Launder: Cash, Cops & the Cartels,” has not received much media attention at all. Whether that is because the essence of the corruption was already known is unclear, however, the corruption detailed at all levels of government is staggering—from the money laundering itself to the coverup by federal investigators seemingly unwilling to investigate anyone in the task force who committed crimes.

It is a stark example of how the War on Drugs is more about how police departments and officers can profit than stopping the flow of drug money. Indeed, officers in this case needed money to keep flowing in order to continue living as high rollers.

Bal Harbour is a small community of around 2,500 people with “oceanfront condominiums” and “elegant boutiques.” It had one reported violent crime in 2012 – an aggravated assault. But, beginning in 2010, the department partnered with the police department in Glades County, one of the poorest counties in Florida.

The police agencies formed the Tri-County Task Force, a state task force, to conduct undercover operations. They took place all over the United States but it would be difficult to believe they were carried out by officers interested in bringing drug traffickers to justice.

The task force made no arrests and engaged in no effort to have the Florida State’s Attorney prosecute any cases. What the officers wanted was money, plain and simple, and they took advantage of the federal government’s Equitable Sharing program to claim drug cash as their own.

When it comes to the War on Drugs, agencies operate under the presumption that undercover units have to typically “seize far more money from criminal groups than what a task force launders and returns to the streets.” That is why one of the most shocking details is that the task force “passed tips that led to federal agents seizing nearly $30 million.” Yet, during the same period, the task force laundered $50 million.

Based on “confidential records of the undercover investigation” and “thousands of records including cash pickup reports, emails, DEA reports, bank statements, and wire transfers for millions of dollars,” the Miami Herald uncovered the following:

—The Justice Department Officer of Inspector General found the task force had laundered over $56 million dollars “without adequate written policies or procedures, prosecutorial oversight, or audits of the undercover bank accounts.” The amount, however, was actually closer to $83 million.

—Officers made cash deposits at a SunTrust Bank about a block from the Bal Harbour police station, which totaled $28 million. None of the deposits appear in records created by the police.

—At least 30 times, police deposited funds into banks and storefront businesses to “conceal drug cash for criminal groups,” but they never documented their actions. The total amount of money distributed was around $20 million. (more…)

Documents Raise Concerns About Extent of CIA Spying Inside the United States

The American Civil Liberties Union published a batch of documents obtained from the CIA on how it complies with and understands Executive Order 12333, an executive order issued by President Ronald Reagan which mandates the powers and responsibilities of US intelligence agencies. The documents strongly suggest that the agency engages in an extensive amount of domestic spying operations that are largely kept secret from the American people.

Of the 49 documents released, many of them are policy briefings on what the CIA can and cannot collect on US persons when conducting spying operations. They largely have to do with the rules that the agency is expected to follow and how the agency goes about complying with them. However, many of the documents are highly censored.

The CIA claims much of the information in the documents involves “classified secret matters or national defense or foreign policy.” It also believes that the National Security Act partly exempts the agency from the Freedom of Information Act, which is why many of the documents have huge chunks of information missing.

What can be gleaned from the documents is that the agency has a secret definition of “monitoring” as it relates to surveillance of US persons that the public is not allowed to know:

Secret definition of monitoring - CIA

The definition of “electronic surveillance” in regards to US persons is partially censored too, however, the CIA will let the public know that “electronic surveillance” involves the “acquisition of a non-public communication by electronic means without the consent of any party to the communication or, in the case of a non-electronic communication, without the consent of a person who is visibly present at the place of communication.”

Part of the definition for “unconsented physical searches,” which requires Attorney General approval, is censored.

Details from a “memorandum of understanding” [PDF] between the FBI and CIA provides a glimpse at how the two agencies coordinate spying activities:

FBI-CIA Coordination

Another document, “CIA and EO 12333: Overview for the ICIG Boston Review Forum” [PDF], dated June 2013, outlines detailed talking points, which includes some details on the loopholes the agency might be able to use to obtain information on US citizens.

The CIA is allowed to “provide specialized equipment and technical knowledge to assist another department or agency in the conduct by that department or agency of lawful and authorized electronic surveillance in the United States.” (more…)