Thursday, February 16, 2012


For regular readers of this series who have been wondering why this case is so important; it  exposes a larger problem, which we are covering it in this segment. If this is the first time you are reading When White Collar Crime becomes Money Laundering, you are encouraged to read the earlier segments here* on this blog.

For those of you who read the articles appearing recently in the media, about how the Mexican Cartels, The former Cali Cartel, and the Norte del Valle Cartel, have used US law enforcement agencies to unwittingly assist them in their criminal operations, and have also been following the so-called "Fast & Furious" case, where firearms were allowed by US law enforcement to be shipped in bulk to Mexico, where they were used in homicides, this case appears to be connected to individuals affiliated with the paramilitaries, who have received favourable treatment by US law enforcement, with the assistance of Colombian and American attorneys. Cooperation often frustrates the ends of justice, especially where lawyers experienced in tempting US law enforcement with potentially major indictments down the road receive favours that the public, if it was disclosed, would certainly object to. When you assist a narcotics criminal, no matter what the reason, you hinder the global war on drugs.

Whilst we have previously documented, in this series, this treatment, it is now time to detail how counsel for individuals who have committed embezzlement and money laundering manipulate law enforcement, and the criminal justice system, have acted for the benefit of their clients, at the expense of legitimate companies and individuals, and frankly, manipulated the system.

Briefly, this case involves an individual who, when presented with evidence that she embezzled a large sum of  money from her employer, went to a criminal defence attorney to help her reduce the risk that she would be charged with these crimes. He took what some regard as an improper step; suing the victim.

(1) Her attorney, Richard J Diaz, of Coral Gables, Florida,  then filed a civil action against her employer,  though it was totally devoid of any legal merit, and without any factual basis, probably because he knew that the overworked State Attorney's Office in Miami, is inclined to avoid filing criminal cases that are already embroiled in civil litigation. He was gaming the system, seeking to evade the filing of state criminal charges. His client's cooperation with Federal law enforcement was his scheme to avoid any Federal charges, through skillful management of his client's relationship with thr Drug Enforcement Agency.

(2) Her lawyer has reportedly pressed hard for a settlement of the civil case, knowing full well that it would, for all intents and purposes, include a general release, and therefore eliminate the possibility that a criminal case will ever be filed against his client; More manipulation.

(3) The most egregious acts committed by Cajale, other than the embezzlement, were her unsolicited statements, made repeatedly to law enforcement and prosecutors, to the effect that her employer may have been involved in money laundering. She offered no factual basis for these bogus statements, and apparently law enforcement has taken no action to investigate her admittedly baseless allegations. Officers at the company that formerly employed her, where she embezzled funds, lost the ability to enter the US on business as the direct and proximate consequence, since her statements resulted in the revocation of their visas, due to the reports filed by law enforcement as the direct result of her untrue allegations. The net result is that company officers cannot come to the US to personally assist in the civil case,  to testify at deposition, and help defend the lawsuit. if Cajale wins the lawsuit on the merits, the risk that a criminal case would be filed becomes microscopic.

(4) There is another issue; The inability of the two principal officers to be present in the US, due to Cajale's statements, has interfered with the company's ability to conduct its international business, resulting in a diminution in income. Was this not an intentional consequence of Cajale's unfounded statements to DEA, after she was terminated from her position at the company ? To decrease the company's chances of a successful outcome, which minimises any possible criminal charges, perhaps.

(5) According to her sworn testimony, Cajale and her attorney met, a number of times, with US law enforcement agents (DEA), in Richard Diaz' law offices. The testimony appears to confirm that she, and her husband Didimo Alberto Navarro,  among others, have received preferential treatment, as the direct and proximate result of their "substantial assistance." In this case, they simply made up the information, and have benefited from it. Did Navarro receive an "S" Visa, which is given to individuals who assist US law enforcement ? I am sure that we will learn the answer to that question as the case unfolds.

If you are familiar with the Whitey Bulger scandal, you know that the FBI agents who gave a career criminal in Boston a pass on his criminal activities, in exchange for information, are now serving sentences in Federal Prison, because their actions strengthened Bulger's organisation.  The same thing is happening, on a much larger scale, when US law enforcement gives narco-criminals immunity from prosecution, allows them to launder the proceeds of crime, to pass freely into and out of the United States, and thus allows itself to be grossly manipulated, in exchange for information that might, perhaps, result in future indictments. It is not worth it, in my humble opinion.

Members of the US Congress are disturbed by these methods of law enforcement; perhaps you should be, too.
*When White Collar Crime Becomes Money Laundering (Parts One through Five)

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