News

USIS Washington 
File

18 December 1998

TEXT: U.S., SWISS TO SPLIT $175 MILLION IN ILLEGAL DRUG MONEY

(AG Reno and Swiss Ambassador Defago sign MOU) (670)



Washington -- The United States and Switzerland signed an agreement
December 18 to split evenly more than $175 million in illegal drug
proceeds, according to a press release issued by U.S. Attorney General
Janet Reno.


This is the largest amount of forfeited money to be shared between the
U.S. and a foreign government, the press release stated.


"In March 1994, a federal grand jury in Miami indicted Shiela Arana de
Nasser and Julio Cesar Nasser David, charging the couple with
conspiring to import and distribute cocaine and marijuana over a
20-year period," according to the release. Subsequently, Arana pleaded
guilty, forfeited the money and is now serving a 12-year sentence; and
her husband remains a fugitive.


Attorney General Reno said "the forfeiture would not have been
possible without the unwavering assistance of the Government of
Switzerland, including the Federal Office for Police Matters and the
investigating magistrates in the Cantons of Vaud and Zurich. She noted
that their efforts helped to identify additional bank accounts held by
Arana."


Following is the text of the press release:



(Begin text)



FOR IMMEDIATE RELEASE

AG RENO

DECEMBER 18, 1998

WWW.USDOJ.GOV



U.S. AND SWISS AUTHORITIES SIGN AGREEMENT TO SPLIT MORE THAN $175
MILLION IN ILLEGAL DRUG PROCEEDS


Washington, D.C. -- Attorney General Janet Reno and Swiss Ambassador
Alfred Defago today signed an agreement which will clear the way for
both countries to share more than $175 million in forfeited drug
proceeds, the largest amount of forfeited money to be shared between
the U.S. and a foreign government.


The agreement, known as a Memorandum of Understanding (MOU), concerns
forfeited funds that were amassed by Shiela Arana de Nasser and her
ex-husband, a reputed Columbian drug trafficker, Julio Cesar Nasser
David. He remains a fugitive and is believed to be residing in
Columbia.


The U.S. share, which is estimated to be about $90 million will be
deposited into the Justice Department's Assets Forfeiture Fund and
will be funneled to law enforcement and crime fighting efforts. "These
funds will help prevent the type of drug smuggling that reaped these
profits in the first place," said Attorney General Reno.


"This is proof that crime does not pay not in the United States and
not in Switzerland," said Ambassador Defago. "The message is clear
money [that] laundering is not tolerated in Switzerland."


In March 1994, a federal grand jury in Miami indicted Shiela Arana de
Nasser and Julio Cesar Nasser David, charging the couple with
conspiring to import and distribute cocaine and marijuana over a
20-year period. Swiss authorities, who were investigating Arana for
money laundering violations, arrested her in Switzerland in 1994.


After unsuccessfully appealing her extradition, she was returned to
the United States in 1995. In December of that year, Arana, 56,
pleaded guilty and agreed to forfeit her share of the tainted wealth.
She was later sentenced to a 12-year prison term which she is
presently serving.


At the request of the U.S., Swiss authorities froze the drug proceeds
under a mutual legal assistance treaty (MLAT) that both nations
signed. The Swiss government agreed to free the proceeds, which had
been deposited in the Union Bank of Switzerland in Zurich and
Lausanne, once U.S. authorities completed the forfeiture proceedings
in the U.S.


In accordance with U.S. international asset sharing laws, the Justice
Department authorized the drug proceeds to be split evenly with Swiss
government.


Reno added that the forfeiture would not have been possible without
the unwavering assistance of the Government of Switzerland, including
the Federal Office for Police Matters and the investigating
magistrates in the Cantons of Vaud and Zurich. She noted that their
efforts helped to identify additional bank accounts held by Arana.


Reno also praised the efforts of the U.S. Customs Service, the DEA,
and prosecutors from the U.S. Attorneys Office in Miami.


(End text)