The cable contained an error in that Meneses and Lister were not arrested along with Blandon and his wife, but had only been implicated in the investigation.

98. On October 31, 1986, Headquarters responded to the cable:
    There are no [Headquarters] traces on Ronald ((Lister)) or Danilo ((Blandon)). [An LA Division Station reported on] 05 Dec 84 that a Norwin Meneses was apparently well known as the Nicaraguan Maifa [sic], dealing in drugs, weapons and smuggling and laundering of counterfeit money (U.S. and [Nicaraguan] colones) [sic]. Subject was residing in Miami as a result of unspecified drug related charges by the Costa Rican government. A 25 Mar 85 message from [another LA Division Station] described a Norwing [sic] ((Meneses)) Cantarero as the kingpin of narcotics traffickers in Nicaragua prior to the fall of Somoza.

99. On December 11, 1986, FBI Headquarters sent a cable to CIA and the Defense Intelligence Agency (DIA) for information concerning Blandon, Meneses and Lister, as well as Aparicio Moreno, Orlando Murillo and Richard (last name unknown), also known as (a.k.a.) "Oklahoma Dick." The FBI cable stated:
    . . . the captioned matter is an Organized Crime Drug Enforcement (OCDE) task force investigation focused on a cocaine distribution operation principally comprised of Nicaraguan nationals. Significant quantities of cocaine are reportedly distributed throughout the west coast. Information provided to FBI Los Angeles indicates that subject Ronald Jay Lister has made statements concerning his "CIA contact," identified by Lister as "Mr. Weekly." Investigation has also identified documents indicating that Lister has been in contact with "Scott Weekly" of the "DIA.". . . . Receiving agencies [CIA and DIA] are requested to advise the FBI, attention: Organized Crime Section, Criminal Investigation Division, whether or not any of the captioned subjects are currently of operational interest to your agency.

100. CIA responded on December 17, 1986:

In response to [the December 11 FBI request], this Agency is forwarding the following for your information: In 1984 one Norwin ((Meneses)) was involved in drug activities in Costa Rica. He is apparently known as the Nicaraguan Mafia, dealing in drugs, weapons, smuggling and the laundering of counterfeit money. In December 1984 Meneses was residing in Miami as a result of unspecified drug related charges by the Costa Rican Government. Prior to the fall of former Nicaraguan President Anastasio Somoza, one Norwing [sic] ((Meneses)) Cantarero was called the kingpin of narcotics traffickers in Nicaragua . . . . In 1983 Orlando Murillo, Nicaraguan exile, was described as a former official with the Swiss bank in Managua. We have no traces on other names [Blandon, Lister, Moreno, Richard (LNU), Weekly] referred to in [the FBI request].

101. CIA records include additional cables regarding Meneses between 1983 and 1995. On April 1, 1983, a DO Latin America (DO/LA) Division Station reported information provided by a Nicaraguan expatriate who had made an abortive attempt to contact members of the Nicaraguan resistance. The Nicaraguan reportedly stated that, around October 1982, he was:

. . . hoping to contact a friend named Norbin [sic] ((Meneses)) in Miami, who would direct him to counter-revolutionary training camps in South Florida and eventually to join Miskito combat units in Honduras. Meneses . . . was not contacted and was found to be living in California.

102. On December 5, 1984, a Latin America (LA) Division Station informed Headquarters of allegations that Meneses and another trafficker, Tuto Munkel, were involved in drug trafficking with Sebastian Gonzalez Mendieta in Costa Rica. Meneses was reported to be living in Miami as a result of unspecified drug charges by the Costa Rican Government, and it was reported that Meneses owned a restaurant in which Gonzalez might have had a financial interest. According to the Station, Meneses, Gonzalez and Munkel were well-known as the "Nicaraguan Mafia, dealing in drugs, weapons smuggling and laundering of counterfeit money."

103. The LA Division Station provided Headquarters with additional information on December 27, 1984. According to the Station, one and a half kilograms of cocaine, packed in rattan clothes hampers, were being forwarded weekly to Meneses in Miami. The Station requested that another LA Division Station conduct a records search concerning Meneses.

104. On March 25, 1985, Meneses was again referred to in CIA reporting when an LA Division Station reported information concerning a Sandinista-run business known as H&M Corporation. According to the report, H&M Corporation was a conglomerate of several FSLN-owned businesses that were engaged in a host of legal and illegal enterprises in an effort to obtain hard currency for the Sandinista Government. The report also stated that Federico Vaughn, a known narcotics trafficker and an official of H&M Corporation, was said to be "an associate of Nicaraguan narcotics trafficker Norwing [sic] ((Meneses)) Cantarero."

105. Meneses' name was next reflected in CIA reporting on June 11, 1986, when an LA Division Station informed Headquarters that a Contra leader, Fernando Chamorro, had allegedly been asked by Meneses in August or September 1984 to help "move drugs to the U.S." On June 27, 1986, a DO National Collection Division office reported that it had learned from a Nicaraguan expatriate who was in contact with another U.S. Government agency that he suspected "Meneses was involved in the transporting of drugs."

106. On September 3, 1987, CIA responded to a DoS request for a name trace in connection with a visa application by Meneses. The response included an information copy of the Agency's December 17, 1986 response to the FBI request for information concerning Meneses and advised DoS that:
     According to information dated March 1985 . . . one Norwing [sic] Meneses Cantarero, probably identical with subject, was the kingpin of narcotics traffickers in Nicaragua prior to the fall of Somoza. According to information dated December 1984 . . . one Norwin Meneses, probably identical with subject, was involved in drug activities in Costa Rica. He was apparently known as the Nicaraguan Mafia, dealing in drugs, weapons, smuggling and the laundering of counterfeit money. In December 1984, Meneses was residing in Miami as a result of unspecified drug related charges by the Costa Rican Government. You are referred to the Federal Bureau of Investigation for possible information on subject.

107. On March 31, 1988, OGC Associate Deputy General Counsel Gary Chase responded in writing to an FBI request that sought to determine if there were any Agency relationships with Juan Norwyn (sic) Meneses-Cantarero, a.k.a. Norwin Meneses. Chase's letter to FBI/Assistant Director, Criminal Division, Floyd Clarke, stated that "an extensive search of the files and indices of the appropriate office located no information indicating that Mr. Meneses-Cantarero a.k.a. Norwin Meneses was ever employed by, or an informant for, the Central Intelligence Agency."

108. CIA records do not mention Meneses again until January 18, 1991 when an LA Division Station reported to Headquarters that it had received information that four men were bringing narcotics from Central and South America to Miami, Chicago and Milwaukee. It was reported that one of the men, Juan Dewey Thomas-Altamiraro, a Nicaraguan cocaine trafficker, was an associate of Meneses. However, no details concerning the nature and extent of his association with Meneses were reported. In response to this report, another LA Division Station advised the first Station on January 23, 1991 of the "Nicaraguan Mafia" allegations concerning Meneses and the fact that "Meneses was known to be involved in the drug trafficking activities of Sebastian Gonzalez Mendieta."

109. Meneses was next mentioned in CIA cable traffic as a result of his November 1991 arrest in Managua following an attempt to ship 764 kilograms of cocaine from Cali, Colombia, to the United States. Subsequent to this arrest, Meneses was convicted in Nicaragua of cocaine trafficking and was sentenced to 25 years in prison. His sentence was later reduced to twelve and one-half years. An LA Division Station cabled the following information to Headquarters on November 4, 1991 concerning Meneses' arrest:
     . . . the Sandinista police made a major drug bust this weekend. They captured 764 kilos of cocaine and arrested five people. They also claimed that the drugs were being sent from the Cali cartel probably to the United States . . . . Those arrested were Norwin ((Meneses)) Cantarero, his brother Luis Enrique ((Meneses)) Canteraro [sic], Enrique ((Miranda)) Hyame [sic], an engineer Carmelo ((Lacayo)) Briceno who was in charge of concealing the drugs for movement, and Carlos Francisco ((Merlo)) Bermudez . . . .

110. Agency records also indicate that Meneses' arrest was reported in November 1991 through Department of Defense and Department of State channels. Those reports included reference to a trip to Colombia by Meneses and Miranda in September 1991 and to the group's loss of a Ford Escort "loaded with cocaine" in Houston in September 1991.

111. The November 1991 arrest of Meneses was also summarized in a January 30, 1992 "Narcotics Update For Latin America" that was published by the DO and sent to Stations and Bases in Latin America to provide background information. The Update article indicated that "ringleader Norwin Meneses is believed to be the top Cali Cartel trafficker in Nicaragua."

112. The last references to Meneses that appeared in CIA reporting occurred in December 1995 when three cables discussing "Possible Attempts to Link CIA to Narcotraffickers" were sent by the DO's LA Division to certain Stations. On December 4, 1995, Headquarters asked one of the Stations whether it possessed any information concerning Meneses:
     In November 1995, we were informed by DEA that a reporter has been inquiring about activities in Central America and any links with the Contras. . . . ((Meneses)) is currently in jail in Managua for trafficking 800 pounds of cocaine. DEA [has been alerted] that Meneses will undoubtedly claim that he was trafficking narcotics on behalf of [CIA] to generate money for the Contras. Query whether Station can clarify or amplify on the above information to better identify Meneses or confirm or refute any claims he may make. HQS traces on FNU ((Meneses)) reveal extensive entries. One possible hit is: Norwing [sic] ((Meneses)) Cantarero, who was a kingpin of narcotics trafficking in Nicaragua prior to the fall of Somoza . . . . one Norwin Meneses probably identical to above kingpin, was involved in drug activities in Costa Rica. He was apparently known as the Nicaraguan Mafia, dealing in drugs, weapons, smuggling and the laundering of counterfeit money.

113. In response, the Station provided the following information to Headquarters on December 5, 1995:
     Based on our traces and HQS . . . information, we presume the individual to whom DEA referred to be Norwing [sic] ((Meneses)) Cantarero. We have no information, however, substantiating his claims to have been actively involved in the Contra movement, nor do we know whether [CIA] was ever in touch with him if he was.

114. Headquarters responded to the Station with the following additional information on December 14, 1995:
     Please pursue inquiries on [where Meneses] resides or in incarcerated . . . . We are still very anxious to verify whether Meneses exists, and whether there was ever any [CIA] contact with him . . . . The only additional information we have on Norwin ((Meneses)) is that in late 1986 he was one of three individuals arrested by Los Angeles County Sheriff's Department on narcotics related charges. Meneses was described as an accomplice of Ronald ((Lister)), also arrested. Lister claimed that for many years he had assisted in supplying small arms and helicopters to [CIA] contacts in Latin and Central America. [Headquarters] traces give no indication that Juan Norwyn [sic] ((Meneses)) Cantarero a.k.a. Norwin Meneses was ever employed by, or an informant for [CIA].

115. No other information concerning Blandon, Meneses or Lister has been found in CIA records. Additionally, no information has been found in CIA records to indicate that there has ever been any relationship between CIA and Blandon, Meneses or Lister.

116. CIA Records: Weekly. No information has been found in CIA records to indicate that Weekly--who Lister said was his "CIA contact"--had any relationship with CIA. Additionally no information has been found in CIA records to indicate that Weekly claimed to have worked for CIA on behalf of the Contras. Media reporting also indicates that Weekly does not claim to have worked for CIA on behalf of the Contras. Although Lister alleged in the 1980s that Weekly was his "CIA contact," he did not make this allegation in his 1997 interview with CIA/OIG and DoJ/OIG.

117. No information has been found to indicate that Weekly had any connection to the drug trafficking activities of Ross, Blandon, Meneses, and Lister. CIA records, however, include information regarding Weekly's activities in connection with a private group concerned with Prisoner of War/Missing in Action issues in the 1980s. In addition, CIA records include a Bureau of Alcohol, Tobacco and Firearms (BATF) report that Weekly was arrested in 1986 for carrying explosives on a commercial airliner. The BATF report indicated that Weekly claimed he had done this for CIA. No information has been found to indicate any relationship between Weekly and CIA, or any information to support his 1986 claim that he carried explosives on a commercial airliner for CIA. No information has been found to indicate that CIA was ever asked to respond to Weekly's purported claims during his trial.

118. Individual Statements. Ross, Blandon, Meneses, Lister, and Miranda were each interviewed. Each was asked whether he had any prior dealings or relationship with CIA. Each denied any such dealings or relationships.

119. Individual Statements: Ross. Ross was interviewed at the Federal Bureau of Prisons, Metropolitan Correctional Center, San Diego, California, where he is serving a life sentence without parole for conspiracy and possession with intent to distribute cocaine. Ross states that he has dealt with no one, directly or indirectly, who claimed to be a CIA employee or representative. He also denies that he ever had any relationship with CIA or the Contras or that either organization had anything to do with his drug trafficking activities in Los Angeles or elsewhere.

120. Ross states that he believes CIA was somehow involved with Blandon and Meneses, but acknowledges that he has no information to support this contention other than his belief that Blandon received a relatively short prison term. Ross says that he never saw Blandon deal with anyone other than persons Ross already knew to be narcotics dealers. Ross adds that he never saw Blandon meeting or dealing with anyone whom Blandon claimed was a representative of CIA or the U.S. Government.

121. Individual Statements: Blandon. Blandon states that he has never had any relationship with anyone employed by or in any way connected to CIA. According to Blandon, he never previously met with anyone from CIA.

122. Individual Statements: Meneses. Meneses was interviewed in Tipitapa Prison, Managua, Nicaragua. He denies that he ever had any contact or relationship with CIA, DoS, the U.S. military, or U.S. civilian assistance groups that provided assistance to the Contras. He also denies that he trafficked in cocaine or other narcotics on behalf of CIA or any Contra group.

123. Individual Statements: Miranda. Miranda was arrested in November 1991 along with Norwin Meneses in connection with the attempted transshipment of 764 kilograms of cocaine through Nicaragua to the United States. He was interviewed in Masaiya Prison, Grenada, Nicaragua.

124. Miranda claims that the Sandinistas believed that Norwin Meneses worked with CIA to arrange flights carrying arms. Miranda says that Meneses told him sometime in the late 1980s that he was working for the Contras and that he had the support of CIA. Miranda says Meneses also said he was receiving support from Oliver North and that he was passing on funds to support Contra groups. Miranda could provide no information to corroborate his claims, including those that Meneses had smuggled drugs for the Contras and had the sanction of CIA for those activities.

125. Miranda states that the Sandinistas were involved in trafficking to raise funds and that he was personally involved in this effort from 1981 until 1985. He says that he was asked by his superiors in the Sandinista military to contact Meneses in 1981 about the possibility of drug trafficking on behalf of the Sandinistas, but that Meneses declined to participate. Miranda states that Meneses told him that Colombian aircraft would transport cocaine to Costa Rica where it would be transferred to other planes that had brought weapons for the Contras from the United States. The aircraft returning to the United States would land near Ft. Worth, Texas from which the cocaine would be shipped by ground vehicles to California.

126. In commenting on Enrique Miranda Jaimie, Meneses explains that Miranda was a childhood friend who had worked in Meneses' construction business in 1991. Meneses believes that Miranda acted on behalf of the Sandinistas to implicate him in the narcotics trade, but denies ever being asked by Miranda to traffic in drugs to support the Sandinistas.

127. Individual Statements: Lister. Lister is a former member of the Laguna Beach, California Police Department and a convicted felon. Lister was also a member of the Los Angeles County Sheriff's Department as well as the Maywood, California Police Department. Lister says that, after leaving law enforcement in 1980, he started Pyramid International, a private physical security company. Lister also states that he formed Mundy Security Group, another private security firm.

128. In 1981, Lister says he met both Blandon and Meneses and began selling cocaine for Blandon shortly thereafter. Lister denies he was ever an employee of CIA or that he was ever approached by any employee of CIA with any request to assist Blandon or the Contras in any legal or illegal activity.

129. Lister states that he met Blandon through a Beverly Hills business connection in late 1981 and Blandon, in turn, introduced Lister to Meneses. Lister provided physical security for both men and reports that both always paid him in cash. Lister recalls that one of Lister's employees, Bill Downing, told Lister shortly after Lister met Blandon that Blandon and Meneses were cocaine dealers. Lister states that Downing was the first to broach the idea of selling cocaine for Blandon. Lister approached Blandon and "began doing business with him right away." Lister states he would get cocaine from Blandon and give it to Downing who would sell the product to his friends. Lister had the impression that Blandon wanted to keep Lister away from Meneses.

130. Lister was not aware of all of Blandon's sources for cocaine, but was aware Blandon often got cocaine from Colombian suppliers Roger Sandino and Aparicio Moreno. Lister states that he went with Blandon on trips to Colombia and was present when Blandon made deals with the Colombians. Lister recalls that the price of one kilogram of cocaine went from approximately $60,000 in 1982 to a low of approximately $20,000 in 1986 when Lister stopped distributing for Blandon.

131. Lister states that, prior to the San Jose Mercury News articles, he had never met Ross or heard Ross' name. He does recall a November 1985 drug deal in which Blandon instructed Lister to deliver 100 kilograms of cocaine to a "good black client" in South Central Los Angeles. Lister states that he and another of Blandon's associates drove one of Blandon's cars containing three boxes of cocaine to a restaurant in South Central Los Angeles and met with Blandon. Lister recalls the original source of the cocaine provided to the buyer by Blandon was a Colombian student at a local college. Lister states that Blandon met with the "black client" and exchanged the cocaine for $2.95 million. Lister then transported the money for Blandon as they left. Lister recalls he was paid $50,000 for this deal. Lister now assumes that the buyer was Ross because Blandon told him the "black client" was the "biggest dealer" he dealt with. However, Lister cannot provide any evidence to support his belief.

132. Lister recalls that Blandon and Meneses would occasionally speak about the Contras and their desire that the Contras win the war in Nicaragua. Blandon would say, "We do business [drug dealing], but we want to get the Commies out." Lister states that Blandon made statements about his desire to help the Contras, but "the money always went back into our pockets." Lister says he was not aware of any effort on Blandon's or Meneses' part to fund or supply the Contras. Lister characterized Blandon's statements concerning his desire to help the Contras as "beer talk" as opposed to any serious organized effort. Lister states that he would have been very surprised if any significant amount of Blandon's money went to the Contras because "we were drug dealers. We did it to make money for ourselves."

133. Lister does recall that Blandon asked him for help in the 1982-1983 time frame to buy weapons, some of which Blandon claimed were going to "my friends down South." Lister states that Blandon did not specify whether this referred to the Contras or his Southern California drug customers. Lister states that he, Downing and another employee, Ronald Orgle, bought a total of 15 to 20 semi-automatic weapons for Blandon. The weapons were assorted handguns, semi-automatic Uzi machine pistols, KG99 "Tec-nine" machine pistols, and possibly semi-automatic AK-47's. Lister says he did not purchase ammunition for Blandon, but recalls purchasing a small number of commercially available "off-the-shelf" night vision devices for Blandon. Lister says he does not know what Blandon did with the devices.

134. Lister also recalls that he traveled to Hialeah, Florida, sometime in 1982 or 1983 and met with a Contra member named "Dr. Sabario" in an effort to sell "military supplies" to the Contras. Lister states that the military supplies were commercially available equipment such as non-reflective paint for equipment and surveillance detection gear of the type that can be purchased at electronic shops and "spy" stores. Lister states that this meeting with Dr. Sabario did not have any connection to Blandon, but was part of Lister's private security business. Lister states that, in the end, no purchases were made from him by the Contras.

135. Regarding the October 27, 1986 search of Lister's and Blandon's residences, Lister states that the LASD surveillance of his residence was spotted and made him aware of the impending searches. Lister recalls that one of his neighbors told Lister a couple of weeks before the October search that the neighbor had seen two men with "police-type" radios watching Lister's house and taking notes. Based on this, Lister assumed the police were about to arrest or search him. Lister told Blandon and Lister's attorney, Joseph Heneghan, about the incident. Lister states that Blandon simply smiled, but did not comment. Heneghan told Lister to call him if police arrived, but not to let them in without a warrant.

136. Lister recalls that five LASD deputies appeared at his door on the day of the search and told him that they had a valid warrant to search his prior residence, but would wait on his doorstep until they obtained another warrant for his present residence. Lister states that, despite the fact that the LASD did not have a warrant for his current residence, he chose to allow the search so as not to attract notice from his neighbors. It was at this time that Lister told the lead deputy, "You should not be here. I'm going to make a call." Lister states he was referring to a telephone call to his attorney and not "Mr. Weekly at the CIA" as was later reported in the San Jose Mercury News series. Lister denies he made any claims of a CIA connection or that he intended to call CIA. In his 1997 interview with CIA/OIG and DoJ/OIG representatives, Lister says he did not allege in the 1980s that David Scott Weekly was his "CIA contact."

137. Lister states that he did not call his attorney until after the deputies had departed. Lister states that, during the search, one of the deputies found one of the night vision devices he had obtained for Blandon and stated, "What are you . . . CIA?" Lister states that he denied any CIA connection, but did tell the deputies that he supported the Contras and that he had been in El Salvador.

138. Concerning the alleged "CIA documents" that the San Jose Mercury News series reported were seized by the LASD, Lister states that what was seized at his house and later reported in the newspaper as "CIA documents" was actually a hand-written business journal that he had prepared to document future legitimate business opportunities for his security company. Lister states that he was not in possession of any "CIA papers" at any time.

139. Lister also refutes the claim in the "Dark Alliance" series that "federal agents swooped down on the LASD and took the evidence which was seized at his house." Lister states that, to his knowledge, the only person who went to the LASD to retrieve property was Heneghan, acting in his capacity as Lister's attorney.

140. Lister states that he cooperated with the Costa Mesa Police Department and also helped the San Francisco FBI office on a narcotics case. Lister states that in 1989 he worked with several FBI Special Agents to target a Central American drug dealer named Nelson Magana. Lister says he had previously sold cocaine to Magana, and an FBI Special Agent wanted to use him against Magana. Lister claims that an FBI Special Agent was convinced that Lister, Blandon and Meneses were connected with CIA. Lister claims that FBI Special Agent wanted to prove a connection between the U.S. Government, the Contras and drug smuggling.

141. In discussing his cooperation with the DEA and the San Diego United States Attorney's Office, Lister states that he cooperated with the U.S. Government in its targeting of Blandon. Lister states that he attempted to cooperate honestly with Deputy United States Attorney Amalia Meza and a DEA Special Agent, but that both accused him of not keeping his end of their agreement and of continuing to engage in criminal activity. Lister states that the DEA Special Agent also accused him of laundering money for members of a Colombian drug cartel. Further, the DEA Special Agent accused Lister of stealing money from the cartel and then telling the Colombians that their money was "with the CIA." Lister denies these charges, but admits that he traveled to Mexico without telling the DEA Special Agent or Meza. Lister states that the DEA Special Agent returned him to jail, but later offered to give him protection from the Colombians. Lister states that he declined the DEA Special Agent's offer.

142. Lister asserts that he has never told anyone that he worked for or with CIA. He claims that the "Dark Alliance" series is "ridiculous," and says he does not believe the claim that Blandon was financing the Contras or that CIA was involved. Lister states that all the rumors about his connection to CIA are "mist and fog" perpetuated by San Jose Mercury News reporter Gary Webb and members of Congress. Lister admits that people may have received the impression that he was connected with CIA and that such misconceptions did not hurt his security business, but this was not his intention. Lister also states that he was never asked by anyone claiming to be connected with CIA to provide any support for the Contras or to smuggle cocaine on behalf of the Contras or CIA.

143. Other Individual Statements. Deputy to the United States Attorney for Special Prosecutions Amalia L. Meza, Southern District of California, states that she was formerly assigned to the Narcotics Section in the United States Attorney's Office. Meza recalls that she prosecuted Lister in 1989 in connection with a "buy-bust" scenario in which Lister attempted to sell approximately five to six kilograms of cocaine. Meza recalls that Lister agreed to cooperate with Narcotics Task Force agents and provided information regarding the source of his cocaine. Shortly thereafter, the DEA Special Agent advised Meza that he was interested in talking to Lister about a cocaine smuggling organization led by Blandon. While Lister was still in custody, Meza approached his attorney about enlisting Lister's cooperation in the Blandon investigation.

144. Meza states that Lister's attorney, Lynn Ball, indicated he would check with Lister to see whether Lister was interested in assisting the U.S. Government with the Blandon investigation. According to Meza, Ball indicated that Lister was going to have to check with "the Agency" first to see if he could provide information regarding the Blandon organization. Ball later indicated that Lister had been given "clearance" to cooperate. Meza and the DEA Special Agent say they assumed Lister was referring to CIA, but did not ask. Lister entered into a plea agreement that could reduce his sentence based on future cooperation.

145. Meza further recalls that the DEA Special Agent requested that Meza facilitate Lister's release from custody so he might assist the DEA Special Agent in the Blandon investigation. A warrant for Lister's arrest had been issued in connection with a state narcotics action in Orange County. Meza says she and the DEA Special Agent met with Orange County Deputy District Attorney Craig Robison to request that the arrest warrant be withdrawn so that Lister could be released from custody and provide assistance to DEA. Robison was very angry with Lister and explained that Lister had "conned" Robison into arranging Lister's release ostensibly to work on cases, but then had been arrested in San Diego. Robison warned Meza and the DEA Special Agent that Lister would do the same to them, but agreed nonetheless to work with the Meza and the DEA Special Agent in getting Lister released. The DEA Special Agent assured Robison that he would closely monitor Lister. Thereafter, Lister was released on a personal appearance bond that restricted his travel to California and required him to stay in close contact with DEA.

146. Meza recalls that Lister alluded to CIA during debriefings, but no one from the investigative team pursued that subject. The focus of the U.S. Attorney's investigation was on cocaine smuggling. Meza says she never questioned Lister about, nor allowed him to discuss, any involvement of CIA or any other U.S. Government agency during these debriefings.

147. Meza recalls that the DEA Special Agent learned in June 1991 that Lister was engaged in laundering drug money for Colombians and had failed to return $500,000 to them. According to Meza, this information was corroborated and the Colombians wanted their money back, but Lister had told them he could not return it yet because it was "with the CIA." Reportedly, this did not assuage the Colombians, and the Colombians had put out a murder contract on Lister.

148. Meza says DEA decided to terminate its relationship with Lister immediately, and arrest and search warrants were obtained. Lister was arrested upon his return to the United States and admitted to the DEA Special Agent that he had been to Mexico in violation of his bail conditions. Meza proceeded with the sentencing for Lister relating to the "buy-bust" case, and the U.S. Government no longer allowed Lister to cooperate or provide any information regarding the Blandon organization. There were no further meetings with Lister, and Meza refused to request a reduction in sentence based upon Lister's cooperation.

149. Meza states that she also ceased working on the Blandon narcotics investigation at that time. Meza states that she did not halt her investigation of Blandon due to any CIA or governmental interference and no pressure was received from anyone or any agency to discontinue the Blandon investigation. She states that at no time did anyone from CIA contact her about Lister or the Blandon organization. Meza terminated her cooperative relationship with Lister solely because he proved to be untrustworthy and unreliable as a source of information. Meanwhile, Assistant U.S. Attorney L. J. O'Neale continued developing his money laundering investigation of Blandon, an investigation that had other reliable and credible witnesses. It was this investigation that led to Blandon's arrest and ultimate incarceration.

150. Craig Robison, a former Orange County Deputy District Attorney who is now a municipal judge, recalls that Lister was arrested in 1988 by Costa Mesa, California police after selling approximately one kilogram of cocaine to an undercover officer. Robison states that Lister came to the attention of the Costa Mesa Police Department because Lister told a local prostitute that he was a drug dealer. The prostitute was an informant for the police and turned Lister in to narcotics officers.

151. Robison, who is also a former police officer, recalls that Lister was a former Laguna Beach police officer. At the time of Lister's arrest, Robison handled narcotics cases exclusively and began working with local detectives who requested that Lister be released to work as their informant. Robison recalls that Lister was released on personal recognizance and helped the Costa Mesa Police Department set up a 10 kilogram cocaine and marijuana bust that targeted a local real estate agent and a former local judge. Robison also believes Lister aided the San Francisco FBI Field Office in a narcotics case there, but he does not recall any of the specifics. Robison also recalls members of the Costa Mesa Police Department saying something to the effect that Lister was telling people that he "worked with the CIA."

152. Robison recalls meeting with Meza concerning her request to use Lister as an informant in one of her investigations. Robison has no independent recollection that the investigation was targeted against Blandon, but is aware of this now as a result of media reports. Robison states he met with Meza and a federal agent--probably a DEA Special Agent--and agreed to have Lister's original arrest warrant for his one kilogram sale of cocaine to the local undercover officer withdrawn so he could cooperate with Meza. Robison says he warned Meza and the agent that Lister "was trouble and had provided false information" to the Costa Mesa Police Department. Robison states that Meza and the federal agent understood this but chose to use Lister nonetheless.

153. Robison states that he purposely had little contact with informants, but recalls Lister as a former police officer and "a pretty disgusting guy." Robison does not take Lister's claims of a CIA connection seriously and states that he was never approached by anyone claiming to be a representative of CIA with any request to stop any investigation of Lister.

154. Individual Statements: Ruppert. Michael Ruppert, a former Los Angeles Police (LAPD) officer, was interviewed by telephone after he attended former DCI Deutch's appearance at a Los Angeles "Town Hall" meeting on November 15, 1996 to address the issues raised by the San Jose Mercury News "Dark Alliance" series of articles. During DCI Deutch's appearance, Ruppert claimed that he had evidence of CIA participation in drug trafficking.

155. Ruppert states that he was an LAPD officer from 1973 to 1978, and alleges that he was forced to leave the LAPD after he uncovered a connection between the CIA and narcotics traffickers operating in California and Louisiana. Ruppert also claims that this connection involved elements of the organized crime underworld. Ruppert also states that he is aware of "mob" participation in the Bobby Kennedy assassination. According to Ruppert, he learned of the CIA/narcotics connection from his former girlfriend, Theodora D'Orsay, who Ruppert states also worked for CIA.

156. Ruppert states that he has never met Juan Norwin Meneses, Oscar Danilo Blandon, or Ricky Ross, but says he has met Ross' attorney, Alan Fenster. Ruppert says that he comes from a "CIA family" and is aware of a connection between Meneses, Julio Zavala and "The Frogman Case." Ruppert states, however, that his only source of information concerning that case and a Meneses/Zavala connection has come from media sources. Ruppert also states that he has been a close friend of former DEA Special Agent Celerino Castillo since 1993 and that Castillo has given him additional, unspecified, information.

157. Ruppert claims that he was first approached to join CIA in 1973 while he was a senior at the University of California, Los Angeles. Ruppert states he was brought to Washington, D.C. and met with a CIA recruiter at the Old Executive Office Building. The recruiter allegedly told him that CIA wanted Ruppert to join the Agency and be "sheep dipped" back to the LAPD. Ruppert has no specific information regarding what duties a "sheep dipped" CIA employee would perform with the LAPD nor is he able to define that term. Ruppert states that he declined the recruiter's offer. Ruppert states that he is aware of another LAPD officer who was "sheep dipped" by the CIA and placed undercover in a Mexican weapons factory. Ruppert states that this officer was placed in the factory to support the Contras.

158. Ruppert also states that he is aware of involvement in narcotics trafficking on the part of former President George Bush. Ruppert claims that then-Vice President Bush was the head of "Operation Amadeus," or "Operation Amadeous." Ruppert has no specific details regarding this operation, but claims that he met with an unidentified aide to Vice President Bush on October 26, 1981 to discuss CIA involvement in a drug smuggling operation which involved the former Shah of Iran and the Iraqi Government. Ruppert states that the operation involved an effort to fund the Iraqi Kurds through narcotics trafficking.

159. No information has been found to indicate that Michael Ruppert has ever had any relationship or contact with CIA. Additionally, no information has been found to indicate that Ruppert had any connection with the Contras. No information has been found to indicate that CIA was involved in "Operation Amadeus" or "Operation Amadeous" or that an operation such as that described by Ruppert was ever considered or conducted by CIA. No information has been found to indicate that there was any "sheep dipping" program--presumably, use of LAPD as cover for CIA officers--involving CIA and the LAPD. No information has been found to indicate that Ruppert's former girlfriend, Theodora D'Orsay, has had any relationship or contact with CIA.

160. Did CIA have any relationship or dealings with Ross, Blandon or Meneses? No information has been found to indicate that any past or present employee of CIA, or anyone acting on behalf of CIA, had any direct or indirect dealing with Ricky Ross, Oscar Danilo Blandon or Juan Norwin Meneses. Additionally, no information has been found to indicate that CIA had any relationship or contact with Ronald J. Lister or David Scott Weekly. No information has been found to indicate that any of these individuals was ever employed by CIA, or met by CIA employees or anyone acting on CIA's behalf.

     Was the drug trafficking of Ross, Blandon or Meneses linked to CIA or Contra activities?

161. Individual Statements: Ross. Ross states that he began dealing powdered cocaine in 1979 or 1980 and was introduced to the cocaine trade by one of his former vocational school teachers. Ross also says he learned to "cook" powdered cocaine into crack cocaine from another Los Angeles acquaintance sometime in 1981. Ross recalls that, prior to his introduction to Danilo Blandon, "I had the market in [Los Angeles]. I was the largest cocaine supplier at the time." He says that by 1981, he had access to and could sell "pound" quantities of cocaine. He says that his suppliers at the time were cocaine dealers Henry Corrales and Ivan Torres and that he was larger than any other Los Angeles cocaine dealer that he knew of in the 1982 time frame. "I knew this because it was my business strategy to know my competitors and stay on good terms with them," Ross says.
162. Ross states that he met Blandon through Corrales in mid-late 1983 and began by buying ounce quantities of powdered cocaine from Blandon. Ross estimates that his business had grown so much by 1984 that he was purchasing approximately 100 kilograms of cocaine each week from Blandon. Ross further states that at the same time he was buying cocaine from Blandon, he bought between 40 and 100 kilograms a week from Ivan Torres. By 1984, he says, all of his customers wanted crack instead of powder. Selling crack from "rock houses" was his biggest money maker. He says he had six or seven such houses in South Central Los Angeles that were used exclusively for this purpose.
163. Ross estimates that, at the height of his business in 1985, he was buying and reselling up to 700 kilograms of cocaine a month and was making between $1 to 2 million a day from cocaine sales. Ross states that he continued to obtain his cocaine from Blandon until 1988 or 1989 when he claims to have stopped dealing in drugs. Ross states that, during his time in the cocaine trade (1979-1989), he sold cocaine in Ohio, Florida, Missouri, Texas, Washington State, Indiana, Oklahoma, and Louisiana, as well as California.
164. Ross states that he did not know many of Blandon's cocaine suppliers and did not know how Blandon imported cocaine from overseas into the United States. Ross states he did know that Blandon dealt with a Colombian who was nick-named "Fluco" [sic] and another man named "Tony" from New York. Ross never learned Fluco's or Tony's real or full names or the narcotics organizations with which they were associated. Ross also states that he never personally met Norwin Meneses or Ronald Lister.
165. Ross states that Blandon often spoke of Nicaragua, but never mentioned the Contras, CIA or any effort to give money to the Contras. Ross states that Blandon only spoke to him about the possibility of investing in a business idea of Blandon's to export legitimate U.S. merchandise to Nicaragua. Ross states that Blandon also attempted to get him to invest in other legitimate business ventures at various times.
166. Ross states that, while Blandon was still living in California, Ross bought several handguns, as well as semi- and fully-automatic machine guns and pistols--including Uzis, Mac 10s, Thompson submachine guns, and AK-47 assault rifles--from Blandon. Ross states that he and other members of his 30-person drug organization stored weapons in an unregistered automobile that was later impounded by one of the local California police departments. Ross states that Blandon only supplied him with weapons and that he had his own source for ammunition.
167. Ross states that he believes that the San Jose Mercury News series "Dark Alliance" is true and that CIA was involved with Blandon. Ross states that this belief is based solely on what he has learned from the media and what he and his attorney, Alan Fenster, have been told by San Jose Mercury News reporter, Gary Webb. Ross states that Webb provided information about the allegations of CIA involvement in drug trafficking to him and Fenster and told Fenster what questions to ask witnesses at Ross' trial. But for Webb, says Ross, he and his attorney would have had no information regarding the CIA and Contra allegations. However, Ross states, "I was a small fish compared to Blandon . . . . It just makes sense to me that [Blandon] is CIA because of the great deal Blandon got from the prosecutors."
168. Individual Statements: Blandon. Blandon says he left Nicaragua in June 1979 following the overthrow of Anastasio Somoza, and resettled in the United States, initially in Miami, later in Los Angeles. He recalls that he sold used cars before becoming involved in the cocaine trade.

169. Blandon states that he first met Norwin Meneses in 1981 through a mutual friend from Nicaragua. Although Blandon states he knew the family name and was aware that Meneses had a reputation as a "Nicaraguan Mafia type," he also states that he did not know Meneses was a cocaine trafficker in the United States when they were introduced. A short time after their introduction, however, Meneses offered to "help" Blandon by giving him cocaine to sell. Blandon states that Meneses provided him with two kilograms of powdered cocaine at no cost on the understanding that each cost $60,000 and that repayment would be made out of the sales profit. Blandon sold this cocaine to co-workers at the used car dealership where he worked and paid Meneses.

170. Blandon recalls that he made approximately $40,000 in profits from the cocaine trade in 1981 and 1982. Blandon states that he and Meneses stopped working together in the cocaine trade sometime in 1983 after a dispute.

171. Blandon states that he first became involved with black drug dealers from South Central Los Angeles in 1984, and that he was introduced to Ross by another drug trafficker sometime that year. However, he says he did not sell any cocaine to Ross until about 1985. Blandon states that he continuously supplied Ross with cocaine for only two years, 1985 and 1986.

172. Blandon recalls that his first deal with Ross was for 12 kilograms of cocaine, after which Blandon supplied Ross with two to three kilograms a day. To simplify the logistics of supplying Ross, Blandon later gave Ross 25, or occasionally 50, kilograms at a time. Blandon denies--as is claimed by Ross--that he provided Ross as much as 100 kilograms weekly.

173. Blandon acknowledges supplying Ross with guns. Blandon says he purchased them from Lister, but denies that he sold Ross large quantities of weapons or any type of gun that could not be purchased at a local sports or gun shop. Blandon says he did not have access to military weapons and did not supply such weapons to Ross.

174. At some point in 1985, Blandon recalls, he began dealing with a drug dealer named Aparicio Moreno. Blandon was introduced to Moreno by Meneses. Blandon says he worked with Moreno until 1987 and was involved in at least one one-ton delivery that was delivered by air via Oklahoma. Blandon recalls that he and his associates thought "the plane might be connected to the CIA because someone had placed a small FDN sticker somewhere on the airplane. This was just a rumor though."

175. Shortly after his arrival in Los Angeles, Blandon says he met and began socializing with 20 or so other Nicaraguan expatriates. Blandon states that the group met weekly to talk about developments in Nicaragua and that the other members of this group also opposed Somoza and the Sandinista regime. recalls that the group was a loose affiliation with no formal structure, officers, or membership requirements, etc. Blandon states that the Nicaraguan expatriates simply came together to share common experiences and discuss their mutual desires to see the Sandinista Government out of Nicaragua. Blandon states that this group of "California Contra sympathizers" held no position whatsoever in the official FDN military or civilian leadership in Honduras. Blandon states that, sometime in 1981, the group, like many others around the country, was visited by Colonel Enrique Bermudez, who was then the military leader of the FDN. Blandon states that Bermudez came to a meeting of the group to give a "pep talk" and to ask that the group keep the idea of a free and democratic Nicaragua alive by publicizing the Contra cause in the United States.

176. Blandon states that Bermudez asked the group at this meeting to adopt the colors and flag of the FDN. From that time on, Blandon and the other members of the group called themselves FDN and used the FDN's colors, flag and letter-head. Blandon states, however, that at no time during this or subsequent meetings did Bermudez ask Blandon or the "California sympathizers" to raise funds by trafficking in drugs.

177. Blandon recalls that he gave several thousand dollars --he was unable to furnish an exact amount--to the California-based Contra sympathizers in 1981-82. Blandon states that he never told anyone in the group that the money came from drug trafficking, but rather gave the impression that the money was derived from his legitimate business activities. Blandon states that this money was used to support the operating expenses--plane tickets, rent, office supplies, etc.--of the California sympathizers and that none of this money went to support Contra operations in Central America.

178. Blandon states that, while both he and Meneses continued to attend meetings of the California sympathizers, they also continued their cocaine business. He and Meneses traveled to Bolivia in 1982 to make a drug deal, and stopped en route in Honduras to see some of Blandon's family friends. It was during this stop in Honduras, Blandon states, that he and Meneses met Bermudez for the second time.

179. According to Blandon, Bermudez told them of the trouble FDN was having in raising funds and obtaining equipment and asked him and Meneses to help, stating that "the ends justify the means." Blandon states that Bermudez never asked either of the men to raise money through drug trafficking and states his belief that Bermudez was not even aware that he and Meneses were already in the drug business. Blandon states that Bermudez also asked whether the two men could assist in the procurement of weapons, but that neither followed through in helping to obtain weapons for the Contras.

180. Blandon states that, after this meeting, both he and Meneses were escorted to Tegucigalpa airport by armed Contras. Unbeknownst to Bermudez and the Contras, Blandon says he was carrying $100,000 in drug proceeds to be used in the Bolivian drug deal. In the process of departing the airport, Blandon was stopped and detained by Honduran officials. Blandon states that his Contra escorts, seeing that Blandon had been detained with money, assumed that Blandon had been given the funds by Bermudez to purchase arms for the Contras. As a result, the Contras interceded on Blandon's behalf, effected the return of the money and secured Blandon's release.

181. In securing his release, Blandon recalls, the Contra escorts told the Honduran airport authorities that Blandon and Meneses were Contras. Blandon states he was allowed to leave the next morning and that he then joined Meneses, who had not been detained and who had been allowed to travel to Guatemala. According to Blandon, the intercession of the Contra escorts was fortuitous.

182. Blandon says he can only recall one occasion during his association with the California Contra sympathizers when he purchased anything of any real substance with drug profits for the group. Blandon states that on one occasion he used $2,000 or $3,000 in drug profits to put a down payment on a pickup truck to be used by FDN military forces. Blandon obtained the truck, filled it with medical supplies and radios, and turned it over to others to drive to Central America. He says that the truck was, in fact, later used by the FDN in Honduras. Blandon states that all of his later donations were in the form of much smaller amounts over a period of time and that those funds were used for office supplies for the California group. In total, Blandon estimates that he gave approximately $40,000 over the entire course of his association with the California Contra sympathizers.

183. Blandon says he does not know the total amount of money that Meneses gave the California sympathizers. He estimates, however, that Meneses may have given the group as much as $40,000 from drug profits during 1982-83. These were not cash donations, Blandon states, but instead involved payment by Meneses of various operating expenses such as plane tickets and office supplies. Overall, Blandon characterizes Meneses' role vis-à-vis the California sympathizers as primarily that of a "personnel recruiter" for the group.

184. Blandon recalls that he met Bermudez a third time at some point in 1983. Bermudez reportedly told the California group at that time that the FDN needed people, not money, because the CIA was providing money.

185. Blandon states that his final meeting with Bermudez occurred in 1983 at a Fort Lauderdale hotel where a "unification summit" of the five top Contra leaders was held. Blandon says he cannot recall all of the participants, but recalls that Bermudez and a member of the Chamorro family attended. Blandon states that he and several other California sympathizers were invited to attend but did not participate in decisionmaking meetings. Blandon states that he came away from the summit dissatisfied with the political leanings of the leaders and thereafter donated no money, from drug profits or other sources, to the FDN.

186. Despite this cessation of his support for the FDN, Blandon states, he did arrange a meeting between Lister and members of the California FDN in 1983 or 1984. Lister had claimed that he could procure weapons and equipment for the Contras, but it is Blandon's assessment that no one in attendance at the meeting took Lister seriously and no deals were made. Blandon recalls that, in addition to the usual attendees, several top Contra leaders were also in attendance, including Eden Pastora, Adolfo Chamorro, and Mariano Montealegre. Blandon also says Ivan Torres was present. The attendees showed no interest in Lister's offer and Blandon received the impression that the military arm of the Contras was already being supplied by CIA or another U.S. Government agency.

187. Although Blandon claims he made no further donations of money to the California sympathizers after 1983, he recalls having further contacts with various Contra personalities. However, he characterizes these contacts as being solely of a personal nature.

188. Blandon states that he allowed Eden Pastora, a leader of the Southern Front Contra movement, to live rent-free in one of his homes in Costa Rica from approximately 1984 to 1987. Blandon says he could have charged Pastora as much as $1,000 per month in rent if he had chosen to do so. Blandon states that "Pastora never asked me to raise money by selling drugs, but Pastora always asked everyone he came in contact with to help raise money for the Contra cause."

189. Further, Blandon recalls that, while living in California in 1985-86, he gave Pastora approximately $9,000 in funds for Pastora's personal use. Blandon states that these funds were derived from profits from his legitimate businesses. Blandon also says that he gave Pastora two automobiles to use in 1986. Blandon adds that, during the 1980s, he never informed Pastora that he was a drug trafficker and Pastora never asked. Blandon denies allegations that Pastora asked Blandon to bring him into the drug business.

190. Blandon states that he was never approached by any other person, including any U.S. or foreign government representative or member of any Contra group or faction, with any request to raise money for the Contras by drug smuggling or any other means. Blandon denies the allegation in the San Jose Mercury News that he "raised and funneled millions of dollars to the Contras by selling crack cocaine in California or anywhere else." The dollar sums that he says he provided are as follows:

• Blandon estimates that during his entire association with the California Contra sympathizers he donated approximately $40,000. He states that this money was used for the purchase of supplies and vehicles. Of this sum, Blandon estimates that approximately 70-80 percent derived from his drug business.
• Blandon estimates that the total monetary assistance he provided to Pastora was approximately $30,000. Blandon states that this amount includes the estimated value of the housing in Costa Rica that he provided Pastora rent free, both during and after the Contra conflict.

191. Individual Statements: Lister. Lister recalls that Blandon and Meneses would occasionally speak about the Contras and their desire for a Contra victory. He says that Blandon made statements about his desire to help the Contras, but "the money always went back into our pockets." Lister also characterizes Blandon's statements concerning his desire to help the Contras as "beer talk," rather than a serious organized effort. Lister states that he would be very surprised if any significant amount of Blandon's money went to the Contras because "we were drug dealers. We did it to make money for ourselves."

192. Lister does recall that Blandon asked Lister in the 1982-83 timeframe to help him buy weapons, some of which Blandon claimed were going to "my friends down South." Lister states that Blandon did not specify whether this referred to the Contras or his Southern California drug customers. Lister states that he and two colleagues supplied one or two guns monthly to Blandon, but he says that he does not know what Blandon did with the weapons.

193. Lister also recalls that he traveled to Florida sometime in 1982 or 1983 and met with a Contra member named "Dr. Sabario" in an effort to sell "military supplies" to the Contras. Lister states that this meeting did not involve Blandon and that, in the end, the Contras never made any purchase of supplies through him.

194. Individual Statements: Pastora. Pastora denies that he was involved in any effort to raise money for the ARDE by trafficking in drugs. Pastora states that he received money from several persons who later were arrested for, or convicted of, drug trafficking. Pastora states, however, that he did not learn that any of the donations he received were from narcotics trafficking until after those involved had been arrested.

195. Pastora acknowledges that, while he led the Southern Front forces, he received funds and the use of a C-47 cargo aircraft, as well as another smaller aircraft, which had been donated by narcotics trafficker Jorge Morales. Pastora states that he was not aware of Morales' drug trafficking activities until October 1984. Pastora states he canceled the cooperation deal in early January 1985 when he realized the potential political fallout from dealing with a narcotics trafficker. Pastora says he ordered the planes donated by Morales be returned when he learned Morales was a drug trafficker.

196. Pastora states that, in addition to the aircraft provided by Morales, he also received approximately $40,000 from Morales for various expenses. Pastora states that he also received approximately $20,000 from a Cuban, whose name Pastora could not recall, who was later charged with drug trafficking. In addition, Pastora received approximately $40,000 and the use of two helicopters from Leo Fernandez, another Cuban living in the United States. Pastora states that former Panamanian General Manuel Noriega gave him approximately $25,000 over the course of Pastora's visits to Panama.

197. Concerning Blandon, Pastora states that he was given two used pickup trucks by Blandon whose value Pastora placed at approximately $1,500 each. Pastora states that "it cost me more to get the trucks to Costa Rica than they were worth." Pastora states that Blandon also gave him approximately $6,000 and allowed Pastora to live rent-free in one of Blandon's houses.

198. Individual Statements: Meneses. Norwin Meneses claims that he was falsely implicated in the cocaine trade by pro-Sandinista elements of the Nicaraguan Government and by fellow Nicaraguan and convicted drug trafficker Enrique Miranda Jaimie. Despite his conviction in Nicaragua, Meneses denies that he was ever involved in cocaine trafficking in the United States or elsewhere.

199. Meneses denies that he ever raised money for the FDN or any other Contra organization by smuggling cocaine and diverting the profits to the Contras. In fact, Meneses denies that he was a fund-raiser for the California sympathizers and estimates that he gave the California FDN at most approximately $3,000 between 1982 and 1984. Meneses states that the funds were always in small amounts--$50 or $100 at a time--and were provided to pay local operating costs of the group.

200. Meneses states that he was never asked by Adolfo Calero, Enrique Bermudez, or any other member of the Contras to raise funds through drug smuggling. Meneses states that he and other sympathizers were well aware that "Bermudez was very strict and did not want anyone involved in drugs to be involved in the [Contra] movement." In addition, Meneses states that he is not aware of any other Contra members or sympathizers who were involved in drug trafficking for personal profit or as a method of raising funds for the movement.

201. Meneses states that, between 1983 and 1984, his primary role with the California sympathizers was to help recruit personnel for the movement. Meneses says he was asked by Bermudez to attempt to recruit Nicaraguans in exile and others who were supporters of the Contra movement. Meneses has no recollection, however, of the number of people that he may have recruited for the FDN.

202. Meneses states that he was not directed to recruit people with any specific skills--such as pilots or doctors, but was simply told to seek out anyone who wanted to join with the FDN. Meneses states that he was also a member of an FDN fund-raising committee, but was not the committee's head. Meneses states he did not raise "any significant amount of money" for the Contras during his association. Meneses adds that he was involved in 1985 in attempting to obtain "material support, medical and general supplies" for the Contra movement.

203. Meneses states that he recalls Blandon telling him that he gave funds to the Contras, but Meneses says he does not know how much Blandon gave or the source of Blandon's funds. Meneses states that "Blandon tended to exaggerate his importance to people and may have inflated the amount of money he gave to the Contra movement in order to make himself appear more important."

204. Individual Statements: Luis Meneses. Arrested along with Norwin Meneses in November 1991 on narcotics trafficking charges was his older half-brother, Luis Enrique Meneses. Luis Meneses says he was a member of the military arm of the FDN and fought in the field with Bermudez and FDN forces. He states that he has no knowledge of anyone in the FDN leadership, the FDN rank and file, or officials of the U.S. Government being involved in cocaine trafficking.

205. Luis Meneses states that he has no knowledge that his brother, Norwin Meneses, or Blandon ever donated any money or equipment to any Contra group. Meneses states he is only aware that his brother Norwin helped the Contras by recruiting personnel from the Nicaraguan community in the United States. Luis Meneses says that his brother told him that he never gave any money to the Contras.

206. Individual Statements: Miranda. Miranda was arrested along with the Meneses brothers in 1991. He says that Norwin Meneses told him that Meneses' drugs were shipped from Colombia to public airfields he could not identify in Costa Rica. There, the drugs were transferred to cargo aircraft that then flew on to the United States. He says the aircraft were in Costa Rica and were empty because they had been used to transport arms from the United States to the Contras.

207. Miranda says Norwin Meneses also told him that Salvadoran military aircraft would transport arms from the United States to the Contras and would return carrying drugs to an airfield near Ft. Worth, Texas. Miranda says Meneses allowed him to witness one shipment arriving near Ft. Worth. He says that, when the aircraft arrived, maintenance people took the drugs and gave them to Meneses' people who placed them in vans. Miranda says Norwin Meneses told him in later years that he ceased selling drugs for the Contras in 1985 when he moved to Costa Rica.

208. Individual Statements: Renato Pena. Renato Pena Cabrera is a convicted drug trafficker who says that he associated with Norwin Meneses and claims to have participated in Contra-related activities in the United States from 1982-1984. No information has been found to indicate that CIA had a relationship or contact with Pena or that he was of operational interest to CIA.

209. Pena says he met Norwin Meneses in 1982 at a San Francisco meeting of the FDN, for which he served as an official, but unpaid, representative of the political wing in northern California from the end of 1982 until mid-1984. Pena says he and Meneses met through Meneses' nephew Jairo, who was in charge of Norwin Meneses' drug network in the San Francisco area. Pena says Norwin Meneses had Contra-related dealings with FDN official Enrique Bermudez. Pena says that, when he was removed from his FDN position in mid-1984--possibly because Contra officials suspected him of drug trafficking--he was appointed to be the "military representative to the FDN in San Francisco," in part because of Norwin Meneses' close relationship with Bermudez.

210. Pena says he made from six to eight trips from San Francisco to Los Angeles between 1982 and 1984 for Meneses' drug-trafficking organization. Each time, he says he carried anywhere from $600,000 to $1,000,000 to Los Angeles and returned to San Francisco with six to eight kilograms of cocaine. Pena says that a Colombian associate of Meneses' told Pena in "general" terms that portions of the proceeds from the sale of the cocaine Pena brought to San Francisco were going to the Contras.

211. CIA Records. An October 22, 1982 cable from a DO/Domestic Collection Division (DCD) Station reported that a U.S. law enforcement entity had reported that:
     . . . there are indications of links between [a U.S. religious organization] and two Nicaraguan counter-revolutionary groups . . . . These links involve an exchange in [the United States] of narcotics for arms.

     In addition, the cable said there was to be a meeting among the participants in Costa Rica regarding this exchange. According to the cable, the U.S. law enforcement entity also was in contact with another U.S. law enforcement entity regarding this matter. On October 27, 1982, Headquarters advised the DCD Station by cable that there was further interest in the report if the allegations "have some basis in fact" and asked the DCD Station to recontact the U.S. law enforcement entity for additional information.

212. After further consultation with the U.S. law enforcement entity that had provided the report, the DCD Station reported to Headquarters in a November 3, 1982 cable that it had learned that the attendees at the meeting would include representatives from the FDN and UDN, and several unidentified U.S. citizens. The cable identified Renato Pena as one of four persons--along with three unidentified U.S. citizens--who would represent the FDN at the Costa Rica meeting.

213. In the November 3, 1982 cable, the DCD Station Chief expressed concern regarding further CIA involvement in this matter because of the apparent participation of U.S. citizens. On November 13, 1982, Headquarters replied that "in light of the apparent involvement of U.S. persons throughout, agree you should not pursue the matter further."

214. No information has been found to indicate whether the meeting took place. However, a November 17, 1982 Headquarters cable to an LA Division Station discussed the alleged meeting and stated:
     It is [Headquarters'] opinion that much of information . . . simply does not make sense (i.e., UDN/FDN cooperation, need to obtain armament through illegal means, shipment of arms to Nicaragua, involvement with the [U.S. religious organization]). We see a distinct possibility that the [the U.S. law enforcement entity] was either intentionally or unintentionally misinformed. However, since the information was surfaced by another [U.S. Government] agency and may return to haunt us, feel we must try to confirm or refute the information if possible. To best of [LA Division Station's] knowledge, have the [Contras] scheduled any meeting in the next few weeks? If so, what information do you have regarding the attendees? Do you have any other information which might relate to contents of [referenced messages].

     In its November 18, 1982 response to Headquarters, the LA Division Station reported that it was aware that several Contra officials had recently gone to the United States for a series of meetings, including a meeting with Contra supporters in San Francisco, but the Station had no further information to offer.

215. Pena says the U.S. religious organization that had been named by the U.S. law enforcement entity was an FDN political ally that provided only humanitarian aid to Nicaraguan refugees and logistical support for Contra-related rallies, such as printing services and portable stages. He also says his Contra-related activities were all conducted in the United States and that he never traveled outside of the United States because of his immigration status as a political asylum applicant.

216. Was the drug trafficking of Ross, Blandon or Meneses linked to CIA or Contra activities? No information has been found to indicate that Ross provided any money to any Contra group at any time, or that he had any contact or connection to the Contras or CIA.

217. No information has been found to indicate that the drug trafficking activities of Blandon and Meneses were motivated by any commitment to support the Contra cause or Contra activities undertaken by CIA.

218. Blandon and Meneses claim that they each donated between $3,000 and $40,000 to Contra sympathizers in Los Angeles. No information has been found to substantiate these claims. Moreover, no information has been found to indicate that Meneses or Blandon received any CIA or Contra support for their drug trafficking activities.

219. Blandon did have a personal relationship with Eden Pastora and provided him with financial assistance in the form of rent-free housing and two vehicles. Much of this assistance was provided to Pastora after he left the Contra movement.
     Did CIA intervene or otherwise play a role in any investigative or judicial processes involving the drug trafficking activities of Ross, Blandon or Meneses?

220. CIA Records: No information has been found to indicate that CIA was involved in any way on Blandon's, Ross' or Meneses' behalf in any prosecution or investigation of their illegal activities.
221. Individual Statements: Ross. Ross says he suspects that CIA was involved with Blandon. This suspicion is based solely on Ross' assumption that Blandon should have received a longer prison sentence after being convicted of drug trafficking in 1994 and that some sort of U.S. Government intervention in the judicial process must have occurred to favor Blandon. Ross acknowledges he has no other documentary or personal information to support his suspicion of a CIA connection to Blandon.
222. Individual Statements: Blandon. Blandon states that no one from CIA or any other U.S. Government agency warned him of the October 1986 search of his residence by the Los Angeles County Sheriff's Department (LASD). Blandon says that he suspected there would be searches after FBI agents interviewed one of his employees and that this caused him to ensure that his house contained no drugs or other evidence of his unlawful activities.
223. Blandon also disputes the numerous press accounts alleging that his defense attorney made any statements to the LASD to the effect that the CIA would "wink at this kind of stuff." Blandon does not know the source of this story, but states that he had no contact with CIA and never told his lawyer there was such a connection. Thus, he doubts that his defense attorney made such a statement.
224. Other Statements. A member of the LASD who headed the task force that investigated Lister and Blandon states that he is aware of no statements by Blandon's defense attorney regarding CIA. Further, the LASD officer says that neither he nor any member of his team received any pressure from CIA or other federal agency to "back off" from the investigation of Blandon and Lister. He adds that he has seen the press reporting concerning missing evidence allegedly taken by "unnamed federal agents who swooped down and took it away," but that he is aware of no evidence that ever disappeared or any federal agents who took any such evidence.

CONCLUSION

225. Did CIA intervene or otherwise play a role in any investigative and judicial processes involving the drug trafficking activities of Ross, Blandon or Meneses? No information has been found to indicate that CIA hindered, or otherwise intervened in, the investigation, arrest, prosecution, or conviction of Ross, Blandon or Meneses. CIA shared what information it had--specifically on Meneses' 1979 drug trafficking in Nicaragua--with U.S. law enforcement entities when it was received and again when subsequently requested by the FBI.

Did any of the individuals who were arrested in "The Frogman Case" have any relationship with CIA? Were the drug trafficking activities of any of those individuals linked to the Contras?

226. On January 17, 1983, federal law enforcement officials in San Francisco made 12 arrests and seized 430 pounds of cocaine that was being brought ashore by swimmers from a Colombian freighter. Additional arrests were made later in January and in February 1983.

Were those arrested connected with CIA?

227. More than 50 individuals were eventually arrested in what came to be known as "The Frogman Case." Many were Nicaraguans, and two of these--Julio Zavala and Carlos Cabezas--claimed later that their drug trafficking activities were linked to the Contras. None of those arrested--including Zavala and Cabezas--claimed at the time that they had any relationship with CIA.
228. CIA Records. No information has been found to indicate that CIA had any relationship with any of the individuals who were arrested or charged in connection with the 1983 Frogman Case, though a relative of one of them did have a relationship with CIA until mid-1982.
229. Agency records did include several references to one of the individuals arrested in The Frogman Case, Julio Zavala:

• A 1980 cable from an LA Division Station to Headquarters discussed a Nicaraguan official who was thought to be a drug addict. According to the cable, a CIA asset had identified the Nicaraguan official's "supplier" as Zavala, who was identified as a Miami-based friend of the official;
• A March 1982 cable to CIA from a U.S. law enforcement entity asked that CIA periodically debrief this CIA asset on behalf of the law enforcement entity to gather information about Zavala's drug trafficking activities.

230. Agency records also include information concerning an individual with a name similar to that of one of those arrested or convicted as part of The Frogman Case. This individual was connected with CIA and a Contra organization in 1985, but cannot be the same individual since The Frogman Case defendant was serving a 10-year jail sentence in the United States at that time.

231. Individual Statements and CIA Records: Cabezas. Carlos Cabezas claims that, during one of several trips he made to Costa Rica to deliver Contra drug proceeds to Horacio Pereira and Troilo Sanchez, Pereira introduced Cabezas to a man who said he was "Ivan Gomez" of the CIA. Cabezas says this meeting took place in April or May 1982 at a hotel in San Jose, Costa Rica. Those present at this meeting with "Ivan Gomez" allegedly included Cabezas, Sanchez, Pereira, and Zavala. According to Cabezas, both Pereira and "Ivan Gomez" told him that "Ivan Gomez" was "the CIA's man in Costa Rica" and that "Gomez was there to ensure that the profits from the cocaine went to the Contras and not into someone's pocket." Cabezas says he did not see anyone give "Ivan Gomez" any money at this meeting, nor was cocaine or any other drug present.

232. Cabezas claims to have met "Ivan Gomez" on one other occasion about two or three months later--i.e., late summer 1982--when he met with "Ivan Gomez" and Pereira at the airport in San Jose, Costa Rica. Cabezas says he cannot recall if the purpose of this meeting was to pick up cocaine to take back to the United States or to drop off money. As Cabezas recalls, "Ivan Gomez" was present, but did not participate in the discussions. Cabezas says he never saw "Ivan Gomez" again, but describes him as a fluent Spanish speaker, about 6 feet tall, 180 pounds in weight, with curly black hair, and an athletic build.

233. CIA records indicate that a CIA independent contractor used "Ivan Gomez" as an alias in Costa Rica in the 1980s. However, the physical description of the CIA independent contractor is significantly different--although the CIA independent contractor has curly hair and speaks fluent Spanish, he is much shorter and of slighter build than the person described by Cabezas. Further, CIA records indicate that the CIA independent contractor who used the alias "Ivan Gomez" was in the United States and not in Costa Rica during April or May 1982 when the meeting that Cabezas describes allegedly occurred.

234. On August 8, 1984, a Nicaraguan newspaper published a photograph of an individual named "Ivan Gomez" with a caption stating that this individual worked for CIA. Thus, the information alleging that "Ivan Gomez" might be linked to CIA became a matter of public record and would have been available to Cabezas and his colleagues.

235. The CIA independent contractor who used the alias "Ivan Gomez" in the 1980s denies ever meeting Cabezas, Sanchez, Zavala, or Pereira or participating in a meeting with them in the San Jose hotel. Also, as mentioned earlier, his physical characteristics are significantly different from the person described by Cabezas.

236. Cabezas was shown 16 photographs of individuals. These included two photographs of the CIA independent contractor who used the alias "Ivan Gomez" that were taken in the early to mid-1980s, one of which was a photograph of the CIA independent contractor in an operational disguise. Cabezas identified two photographs of different individuals as the "Ivan Gomez" with whom he claimed to have met. Neither individual he selected was the CIA independent contractor who used the alias "Ivan Gomez," and both are photographs of individuals who have never had any relationship with CIA.

237. Individual Statements: Zavala. Zavala denies ever being introduced to an "Ivan Gomez" who claimed to represent CIA. Zavala recalls, however, meeting with Cabezas and others at the San Jose hotel in question in late 1981 or early 1982 to discuss a drug deal. Zavala says he knew the individuals who participated in this meeting and none claimed any CIA affiliation.

238. Zavala says that one of the 16 photographs that had been shown to Cabezas looks vaguely familiar to him, but he is unable to recall why. The photograph Zavala thought looked familiar is not one of the two persons whose photographs were selected by Cabezas, nor did Zavala select either of the two photographs of the CIA independent contractor who used the alias of "Ivan Gomez."

239. Individual Statements: Others. Zavala's wife Doris Salomon says she does not know the "Ivan Gomez" described by Cabezas. She claims not to recognize any of the persons pictured in the 16 photographs that were shown to Cabezas and Zavala.

240. Troilo Sanchez does not recall meeting anyone named "Ivan Gomez." He also denies ever meeting to discuss drug trafficking or the Contras with anyone who claimed to represent CIA. Nevertheless, Sanchez claims that Norwin Meneses introduced him to an individual in Costa Rica named "Roberto" in 1987--not in 1981 or 1982; "Roberto" reportedly claimed he worked for CIA. provided a photograph of the person he claims is "Roberto." The "Roberto" in the photograph bears no resemblance to photographs of the CIA independent contractor who used the alias "Ivan Gomez."

     Were those arrested connected with the Contras?

241. As noted above, two of the individuals--Julio Zavala and Carlos Cabezas--arrested in connection with The Frogman Case claimed that their drug trafficking activity was tied to the Contras.
242. During a search of Zavala's residence by federal law enforcement authorities on February 15, 1983, a weapon, cocaine and thousands of dollars in cash were seized.believed at the time by federal prosecutors that the money was related to Zavala's drug trafficking activities. In 1984, however, federal prosecutors decided to return $36,800 to Zavala after the Court received letters from two individuals who claimed to represent Contra organizations. In their letters, the officials claimed that the money that had been seized during the search of Zavala's residence belonged to their organizations.
243. Media Allegations. On March 16, 1986, the San Francisco Examiner published an article pertaining to The Frogman Case titled "Big Bay Area Cocaine Ring Tied to Contras." The article reported that Zavala, then serving a 10-year sentence in a federal penitentiary in Seagoville, Texas following his conviction on federal conspiracy and continuing criminal enterprise (CCE) charges, had been interviewed by telephone in connection with the article.
244. According to the article, Zavala claimed that he had delivered $500,000 to Francisco Aviles Saenz, whom the article identified as being associated with two Costa Rican-based Contra groups--the Conservative Party of Nicaraguans in Exile (PCNE) and the Nicaraguan Democratic Union/Nicaraguan Revolutionary Armed Forces (UDN/FARN). The article quoted Zavala as saying, "I was participating in a lot of the movement against the government of Nicaragua." Further, the San Francisco Examiner article claimed that Zavala had said, "I was helping out with money and equipment, and sometimes I was helping out by making connections with people who had weapons."
245. The 1986 San Francisco Examiner article also reported that Zavala had received two letters at the time of his trial in 1984. One had been signed by Aviles, the "political secretary" of PCNE, and by Vicente Rappaccioli, the PCNE's "treasurer." Reportedly, this letter identified Zavala as an assistant treasurer of the PCNE in the United States. According to the San Francisco Examiner article, Aviles stated in the other letter--that he signed as the UDN/FARN's "International Secretary"--that Zavala had made several trips to Costa Rica on behalf of UDN/FARN and had received $45,000, described as having been "collected amongst our collaborators" for "purchases characteristic of this organization." These letters also indicated that the money seized from Zavala's home at the time of his February 1983 arrest had been for "the reinstatement of democracy in Nicaragua."
246. In conjunction with the letters, Zavala's court-appointed attorney alleged that CIA was involved in Contra drug trafficking activities. The attorney filed an affidavit identifying Zavala as a member and treasurer of the "conservative party" (not further defined) and claiming that the seized money belonged to that party. Zavala was reported by the article to have said that Aviles personally gave him $45,000.
247. According to the San Francisco Examiner article,

Aviles admitted in a telephone interview from Costa Rica that he had written the letter for Zavala, but said he only met Zavala once, when he gave him "about $35,000" to buy shirts, pants and boots for PCNE soldiers. He did not explain why the letter said he gave $45,000 to Zavala.

248. The article also named Doris Salomon--Zavala's wife and reportedly a Contra fund raiser--as the person who had arranged for the two letters to be provided to Zavala in 1984. Further, the San Francisco Examiner article stated that Horacio Pereira, a businessman in Costa Rica who was alleged to have supplied cocaine to Zavala, had told Carlos Cabezas that profits from the sale of cocaine by Zavala and Cabezas went to the Contras.

249. CIA Records. As a result of this article, CIA officials conducted a review of Agency records in 1986 to determine whether there was any truth to these assertions. An April 10, 1986 DO/Latin America Division (DO/LA Division) memorandum indicated that searches of Agency records had revealed no information regarding Julio Zavala's wife, Doris Salomon. However, CIA records did contain information describing Horacio Pereira--one of the individuals who had been implicated in The Frogman Case as a cocaine supplier to Zavala--as an associate of Sebastian Pinel, described as a Nicaraguan exile and suspected drug dealer who was then living in Buena Vista, California.

250. CIA Headquarters also asked two DO LA Division Stations and an FR Division Station on April 9, 1986 for any information in their files that might be pertinent to the newspaper allegations. The FR Division Station was also instructed by Headquarters to contact the FBI for "any concrete information from Cabezas/Zavala case which linked them with anti-Sandinista forces," including to whom they were linked and at what point and how Contra leaders might have become involved.

251. Two cables from the FR Division Station reported on April 10, 1986 what had been learned from the FBI. These cables noted that:

• The FBI had treated The Frogman Case as purely a criminal matter, with the FBI impression being that Zavala and Cabezas were "professional drug dealers and nothing more";
• The FBI was not aware of any link between Zavala or Cabezas and the Contras;
• The FBI reported that $36,800 that had been seized during the search of Zavala's residence had been returned to Zavala on September 7, 1984 via a cashier's check; and,
• The FBI had offered to broker a meeting between United States Attorney Joseph Russoniello and CIA to discuss The Frogman Case. However, CIA decided against such a meeting because of the politicized atmosphere in which Russoniello worked and the assumed undesirability of having it become public that CIA was making such inquiries.

252. An LA Division Station also responded in a cable to Headquarters on April 10, 1986. This cable reported that the San Francisco Examiner assertion that Chamorro was linked to California drug traffickers was "completely false." The report said that one of the individuals named in the newspaper article, Francisco Aviles, had not joined Chamorro's organization until February 1984, and that Chamorro had confronted Aviles with the March 1986 newspaper allegations linking him with drug trafficking on behalf of the Contras in 1983. When Aviles was unable to provide a credible explanation, according to the report, Chamorro dismissed him from the organization.

253. An April 11, 1986 cable from the same LA Division Station to Headquarters reported additional information. The report said Aviles had not occupied the position of UDN/FARN Secretary of International Relations that the March 1986 newspaper article assigned to him.ng to this report, Aviles had provided letters on behalf of the Contras requesting that cash seized from Zavala's residence be returned. When Aviles was unable to explain to Chamorro why he took this action, Aviles was summarily expelled from UNO/FARN in March 1986. The Station report indicated that this source said that Aviles acted independently and may have taken advantage of an opportunity to make some money.

254. Another LA Division Station responded to Headquarters in an April 11, 1986 cable that reported the results of a meeting with UNO/FARN leader Fernando Chamorro. The cable stated that:

• Chamorro and his staff had never met Carlos Cabezas, Julio Zavala, Horacio Pereira, or Doris Salomon;
• UNO/FARN had never accepted large donations of money from any organizations that did not explain the source of the contributions;
• Francisco Aviles was not involved in Southern Front activities in 1983 when The Frogman Case arrests were made; and Chamorro and many of his followers were located in Honduras--not in Costa Rica--at the time; and
• Aviles had been informed verbally that he had been expelled from UNO/FARN. A written order to that effect was to follow shortly.

The LA Division Station cable also reported that Chamorro had claimed that Vicente Rappaccioli, who was also identified in the March 1986 newspaper article as having Contra connections, was not involved with Nicaraguan resistance activities.