CQB pleads guilty to Smuggling Guns and Coke

Discussion in 'Stocks' started by bwolinsky, Feb 24, 2009.

  1. http://law.du.edu/documents/corpora...e-governance/in-re-chiquita-third-amended.pdf

    Hi, anyone can search "guilty" and see that on 6/6/2008 Chiquita Brands International plead guilty specifically to importing 3,000 AK-47's, 5 million rounds of Ammunition, and some other cocaine smuggling charges through a subsidiary known as Banadex.

    I thought I'd put this out there, but given that theres some net asset value left on the balance sheet, I'd bet money like going short chiquita that some sort of reward estimated at 780 million in the documents to the victims will come about. They're already bankrupt, though, so I believe they're purposely taking a big bath to avoid this payout.

    856. On March 19, 2007, CHIQUITA pled guilty in U.S. District Court for the
    District of Colombia to one count of engaging in transactions with a specially designated
    global terrorist. The company’s sentence will include a $25 million criminal fine, the
    requirement to implement and maintain an effective compliance and ethics program, and
    five years’ probation.
    857. According to the sentencing memorandum of the United States
    Government in the aforementioned case, CHIQUITA’S payments “fueled violence” and
    “paid for weapons and ammunition to kill innocent people”.
    The Illegal Smuggling of Arms by CHIQUITA/BANADEX to the AUC
    858. In 2001, CHIQUITA facilitated the clandestine and illegal transfer of arms
    and ammunition from Nicaragua to the AUC.
    859. The Nicaraguan National Police provided 3,000 AK-47 assault rifles and
    5 million rounds of ammunition to a private Guatamalan arms dealership, Grupo de
    Representaciones Internationales S.A. (“GIR S.A.”), in exchange for weapons more
    suited to police work. GIR S.A., in turn, arranged to sell the AK-47’s and ammunition
    for $575,000 to Shimon Yelinek, an arms merchant based in Panama. In November
    2001, Yelinek loaded the arms onto a Panamanian-registered ship called the
    Case 0:08-md-01916-KAM Document 72 Entered on FLSD Docket 06/06/2008 Page 195 of 220
    “OTTERLOO” with Panama as its declared destination, but the ship instead went to
    Turbo, Colombia.
    860. CHIQUITA, through Banadex, operated a private port facility at the
    Colombian municipality of Turbo, used for the transport of bananas and other cargo. The
    arms ship docked at the CHIQUITA port, and Banadex employees unloaded the 3,000
    assault rifles and 5 million rounds of ammunition. These arms and ammunition were
    then transferred to the AUC.
    861. The arms and ammunition were off-loaded at sea from the Otterloo onto
    barges owned and operated by Banadex and brought to Chiquita’s private warehouse
    facility. The arms and ammunition were unloaded by Banadex employees and stored in
    Banedex private warehouse for a period of time. It was then loaded onto trucks and
    delivered to AUC paramilitaries.
    862. Bills of lading and other shipping documents relating to the Otterloo’s
    cargo indicate that the recipient of the goods was C.I. Banadex S.A. and Inv. Banoly,
    863. Luis Anibal Chaverra Arboleda, an employee of Banadex S.A. and other
    agents/employees of Banadex, supervised the fictitious inspection of the containers
    containing weapons and ammunition and arranged for the loading of the weapons and
    ammunition onto trucks destined for AUC paramilitaries under circumstances evincing
    knowledge and intent of aiding and abetting the paramilitaries.
    864. According to official documents of the Fiscalia 41 of Medellin dated
    November 7, 2002, the employees of Banadex were in charge of the process of
    unloading, storing, lifting and loading the guns and ammunition onto trucks, and that
    Case 0:08-md-01916-KAM Document 72 Entered on FLSD Docket 06/06/2008 Page 196 of 220
    Banadex was in charge of the shipment, and provided their personnel, warehouses and
    equipment for the purpose of receiving and transferring the arms and ammunition to the
    AUC, and that the unloading and storage was done by a private company, CI Banadex,
    which had total management, mobilization and control of the port and the containers
    containing the arms and ammunition.
    865. On information and belief, CHIQUITA facilitated at least four other arms
    shipments to the AUC. In an interview with the Colombian newspaper El Tiempo, AUC
    leader Carlos Castano subsequently boasted, “This is the greatest achievement by the
    AUC so far. Through Central America, five shipments, 13 thousand rifles.”
    866. On information and belief, CHIQUITA was aware of the use of its
    facilities for the illegal transshipment of arms to the AUC, and intended to provide such
    support and assistance to the AUC.
    867. The arms and munitions that came into Colombia through Chiquita’s
    private port at Turbo were used to commit massacres, mass murders, torture and
    intimidation, including but not limited to the murders of the plaintiffs’ decedents.
    868. The arms and munitions that came into Colombia through Chiquita’s
    private port at Turbo were used to commit massacres, mass murders, torture and
    intimidation, and were used to wage war against left wing guerillas, in the course of
    which the war crimes against the plaintiffs were committed.
    869. On information and belief, CHIQUITA also assisted the AUC by allowing
    the use of its private port facilities not only for the illegal importation of arms, but also
    for the illegal exportation of large amounts of illegal drugs, especially cocaine. The drug
    trade was a major source of income for the AUC. CHIQUITA intentionally and
    Case 0:08-md-01916-KAM Document 72 Entered on FLSD Docket 06/06/2008 Page 197 of 220
    knowingly allowed use of its port and banana transportation boats for this purpose.
    CHIQUITA also transported illegal drugs in trucks and other vehicles acquired, owned
    and operated by it for the use in its conspiracy with the AUC.
    870. Drug enforcement agents and customs officials in Belgium and the United
    Kingdom found more than a ton of almost pure cocaine hidden in at least seven Chiquita
    ships in 1997, all or which was illegally exported through Chiquita’s private port facility
    at Santa Marta, Colombia. The seized cocaine was worth approximately $33 million in
    pure form and more than $100 million if sold on the streets according to United States
    DEA sources. On or about October 31, 1997, officials in Belgium seized more than 500
    kilos of cocaine from the ship “Chiquita Bremen”. The cocaine had a street value of
    approximately $50 million.
    871. The AUC’s access to Chiquita’s private port at Turbo as well as access to
    freighters owned, operated and/or controlled by Chiquita, materially and substantially
    aided the AUC to export drugs from which it derived substantial and material revenue to
    support its operations and to import weapons as aforesaid.
    872. Plaintiffs repeat and reallege all of the previous allegations of the
    complaint with the same force and effect as if fully set forth again at length.
    873. The AUC was and is a global terrorist organization, having been so
    designated by the U.S. State Department, as hereinabove alleged.
    874. That heretofore and at the time of the occurrences herein, the AUC was
    engaged in terrorism in violation of the law of nations and of individual countries and
    Case 0:08-md-01916-KAM Document 72 Entered on FLSD Docket 06/06/2008 Page 198 of 220
    states in that inter alia it engaged in violent acts, or acts dangerous to human life that
    were intended to intimidate or coerce a civilian population, and/or to influence the policy
    of a government by intimidation or coercion; and/or to affect the conduct of a
    government by mass destruction, assassination, kidnapping or hostage taking, as defined
    by 31 CFR § 594.311 and Chapter 113B of Part I of Title 18 of the United States Code;
    engaged in criminal acts intended and/or calculated to create a state of terror in the minds
    of particular persons or a group of persons or the general public as defined in the League
    of Nations Convention (1937) and the General Assembly Resolution 51/210 (1999)
    wherein such acts are strongly condemned; and/or engaged in crimes against a civilian
    population intended to cause death or serious bodily harm to civilians or non-combatants
    with the purpose of intimidating a population in violation of UN Resolution May 17,
    2005 and UN General Assembly Resolution 49/60 of December 9, 1994 adopting the
    Declaration of Measures to Eliminate International Terrorism and all other citations
    therein condemning terrorism which are hereby incorporated by reference; and UN
    General Assembly Resolution 42/159 (adopted December 7, 1987) and other
    international laws and jus cogens as set forth herein and elsewhere.
    875. That terrorism is a violation of the law of nations.
    876. That conspiring with and aiding, abetting, facilitating, soliciting and
    giving material aid to a terrorist organization is a violation of the law of nations.