The influence of Colombians in the world-wide distribution of cocaine is a relatively recent phenomenon. As recently as the early 1970's, for instance, Colombians served mainly as suppliers to other groups. However, as they recognized the tremendous profits that could be made, Colombian groups began direct involvement in all phases of the business, from processing and smuggling to distribution and money laundering. But it was not until 1981 that the two major cartels that we know today – the Medellin and Cali cartels – took form.

The kidnapping of the sister of one of the leaders of an independent trafficking group by a Colombian terrorist organization led several of these drug groups to unite for the sole purpose of freeing the victim and exacting retribution against the terrorists. This once-temporary alliance eventually became the foundation for the largest and most powerful drug trafficking organization known to exist today, the Medellin cartel. How the Cali cartel came into being is less certain but the two cartels generally operate independently of one another. Periodic disputes over drug shipments and territorial rights have led to violence between them, both in Colombia and in the United States.

Worldwide, there are estimated to be approximately 24,000 persons associated with the two cartels. Although in Colombia these cartels appear to be structured, that is not necessarily the case with their operatives in the United States. Even though the two cartels control 80 percent of the cocaine distributed in this country, this is accomplished through a network of independent operatives tied to Colombia, with a relationship much like that of business franchises to the home office. However, because of the seemingly independent nature of operations identified so far by law enforcement, intelligence information regarding their overall structure and management is limited. Moreover, local law enorcement agencies lack adequate strategic intelli- gence even on groups present within their jurisdictions. This loose structure works to the advantage of the cartels. Detection and apprehension is more difficult, and if one group is arrested, the overall effect on drug trafficking is minimal. Although there is competition and sometimes even bloodshed between the two cartels, they have also learned to work together when it serves their purposes. The cartels will sometimes coordinate drug manufacturing and distribution, combine shipments and jointly launder their profits.

In the New York-New Jersey metropolitan area, most of the key operatives do not participate in distribution at the street level but act as middlemen between cartel leaders in Colombia and street dealers here. In only a few unusual incidents have au- thorities discovered the same individual involved in both multi-kilo transactions and street-level sales.

Traditionally, Colombians have always dealt with other Colombians in their illicit enterprises and have heretofore relied heavily on family members to facilitate their operations. Both men and women are used extensively to accomplish organizational goals. Recently, however, law enforcement in New Jersey has observed a certain amount of interaction among Colombians and Dominicans, Cubans and other Hispanic groups. In an ongoing Bergen County investigation, for instance, Cubans are being used to distribute cocaine at the street level. In Passaic County, Colombians are working with Dominicans and other Hispanics. There is also recent evidence that the Colombians have used non-Hispanic groups in furtherance of their enterprises. In Middlesex County, authorities learned that Colombians were using Israelis to help them launder drug money. Federal authorities have identified and indicted 12 persons involved in a cocaine smuggling operation between Colombia's Medellin cartel and the Sicilian Mafia. The indictment charges the defendants with distributing large shipments of cocaine from suppliers in Colombia and Florida to Sicilian Mafia members in Sicily and New York. Laundering of drug profits has been perfected almost to a science by the Colombian drug cartels. One form of laundering commonly known as "smurfing" is the conversion of cash into instruments of exchange that are easier to negotiate. "Smurfing" involves a number of low-level persons going out every day with thousands of dollars that they convert to money orders or deposit in banks. The "smurfs," or little people, are aware of the federal laws requiring the reporting of transfers of amounts greater than $10,000, so they always deal in amounts less than that at any single institution. If they open bank accounts, they will transfer money from one bank to another and eventually wire trans-fer large sums to foreign financial institutions that have no reporting requirements. On February 10, 1990, Colombian Julio Montes Cardona of Piscataway was charged with conspiracy to distribute 25 kilos of cocaine and with heading a money laundering organization in Piscataway and South Plainfield that allegedly laundered $100 million within the prior year. Cardona allegedly sent the money via express mail to Florida banks, and then to Colombia either directly or via banks in Panama. According to the charges, he received his instructions from Myriam Marchena of Barranquilla, Colombia, via coded telefax messages. The original orders on where the funds were to be sent were received from Paulina DeQuintero, also of Barranquilla, who allegedly laundered the money for both the Medellin and Cali cartels. As a result of this federal investigation, more than $10 million in assets was seized and bank accounts were frozen at 14 banks in New Jersey, 10 in New York, 23 in Florida and one in Delaware. It is known that Cardona had at least 11 persons working with him in the Piscataway and South Plainfield operation. Cardona, Marchena, and two of their co-defendants have pleaded guilty in federal court.

Another example of this type of illegal activity was revealed in a recent investigation which culminated in the May, 1989, arrest of 16 persons living in New York and New Jersey. The group, which was controlled by a Queens man and his mother, was laundering an estimated $100 million per year in drug profits. The operation, with links to the Cali cartel, shipped hundreds of thousands of dollars in money orders and bank checks to banks in Colombia and Panama each week. The investigation began when banking officials in Paterson and Elizabeth notified authorities of suspicious transactions by a number of Colombian nationals. It resulted in the arrest of a Paterson woman, her four children, and four Elizabeth residents. Two other Elizabeth residents are still being sought.

In an effort to appear legitimate, many Colombian drug dealers work normal jobs or own small businesses. Some of the businesses include bars, restaurants, video and record stores, mailbox and package shipping businesses, automobile dealerships, grocery stores, travel agencies, and jewelry and gift shops.

Authorities believe that video stores are the perfect type of business for a drug smuggling operation because they are cash businesses that can be used easily to hide other cash from an illicit enterprise. In addition, a continual flow of people in and out of a video store is normal and the tape boxes are a perfect size for carrying cocaine.

Colombian drug dealers have taken advantage of the latest communications devices to further their operations and avoid law enforcement detection using cellular car telephones, beepers and facsimile or "fax" machines.

Because most of the criminal enterprises identified by law enforcement authorities depend heavily on the families of group members to perpetuate their illicit activities, drug operatives usually know with whom they are dealing, making infiltration by undercover agents difficult. And since most Colombians living here still have relatives at home, the fear of reprisal against those family members in Colombia is sufficient to keep workers in line. Although violence plays a big role in maintaining control of their operations in South America, it has not been observed to the same degree in New Jersey, although sporadic incidents have taken place.

According to intelligence information, the base of operations for any Colombian drug operation in the metropolitan area is Queens, New York, even though much of the narcotics in New Jersey comes through Port Newark, the largest container port in the United States. Even groups in southern New Jersey are known to travel to Queens to pick up their supplies. The material is warehoused in Hispanic neighborhoods in Queens, where there is a large Colombian population. The drug is then transported back across the river to New Jersey into communities with large Colombian populations in counties such as Bergen, Hudson, Passaic, Union, Somerset, Middlesex, Mercer, Camden and Atlantic.

In the past, large quantities of cocaine were either shipped directly into the metropolitan area from South America or were transported from South Florida. Lately, however, because of the success of drug interdiction efforts in Florida, established smuggling routes through Mexico into northern California are being used more. Loads are then trucked across country in tractor trailers for delivery to the New York-New Jersey area. Another route that has gained in popularity is through Canada into New York State.