Pubdate: Mon, 12 Jul 2004 Source: Guardian, The (UK) Copyright: 2004 Guardian Newspapers Limited Contact: http://www.guardian.co.uk/guardian/ Details: http://www.mapinc.org/media/175 Author: Sylvia Jones and James Oliver, The Guardian DRUGS STING PUT INNOCENT LIVES AT RISK Murder Threat Failed To Halt Customs Operation Senior customs officials approved a cocaine sting operation by a team of elite drugs investigators despite warnings that arrests in this country would lead to the murder of at least one hostage in South America. A Guardian investigation has established that the operation, codenamed Begonia, went ahead in the face of strong objections from experienced investigators who refused to take part if there was any possibility that innocent people would be killed. In a document seen by the Guardian, one officer warned senior officials at Britain's oldest and most powerful law enforcement agency that Customs' own informant had provided a hostage to the drug suppliers to guarantee the shipment. Pressing ahead with the operation, the officer warned, would "ultimately bring disgrace" on Customs "and permanently cast doubts on our fairness and honesty". He concluded: "I am reluctant to take any part in this operation as I am unwilling to be party to murder of innocent people." But concerns over the legality and morality of the sting from him and other officers were apparently ignored and Begonia went ahead. The operation was led by one of Customs' most senior and highly regarded officers who posed as the head of a fictitious import company using the codename "Peter Hesketh". Operation Begonia is one of several operations involving class A drugs under investigation by West Midlands police, the Guardian has learned. Customs is also the subject of two other police investigations which are taking place amid concern over the conduct of prosecutions. An inquiry by Scotland Yard concerns allegations surrounding the conduct of a string of prosecutions for duty evasion. A third investigation by Thames Valley police relates to separate allegations of corruption involving Customs. No charges have yet been brought. Two Colombians were entrapped in the Begonia sting in late 1993 and convicted of smuggling ?37m of cocaine. They served prison sentences before being deported to Colombia. Francisco Antonio Lopero-Soto, 37, was sentenced to nine years. Gerardo Baron Borja, 49, received 11 years. Defence lawyers claimed at their trial that associates of the two men had been murdered after the seizures of the drugs. Death certificates of three men murdered in Colombia were produced in court, but for legal reasons these allegations were never investigated or fully explored. An identical sting in 1991 raised similar concerns about the actions of Customs. At least one senior officer at the time urged his bosses to take high-level legal advice and claimed that the "star" informant used to set up both deals was acting as an agent provocateur. The informant, the officer warned, was out of control and "running us", and had portrayed himself as the buyer of the cocaine deal which would be financed solely by Customs Under Home Office guidelines informants must never initiate drug deals themselves and are meant to play only a minor role in an existing conspiracy. In a document seen by the Guardian, the senior officer warned line managers that as it was Customs actually buying the drugs and arranging the importation into this country, it would only result in the arrest of low-level intermediaries. He advised that if the proposed $7m (?4.2m) sting went ahead, the seizure should be made in South America, where there was more chance of arresting senior cartel members. Although this operation - known as Begonia 1 - fell through, the plan was resurrected two years later and put into action using the same informant. But when preparations for Begonia 2 went ahead, the same Customs investigator refused to take part in the operation, and told his superiors that the proposed sting would bring disgrace on Customs and severely damage its reputation for fairness and honesty. "You are well aware of my reservations about the conduct of this operation," he wrote, adding: "It is inevitable that the defence and the media will discover the truth of the matter." The officer went on: "At the conclusion of the briefing on October 27 1993 you stated that the informant had provided a hostage to the supply organisation in South America who would be killed if anything went wrong with the importa tion. As we in the Division [Customs] together with the informant are the importer and the only end-users of this cocaine, we ultimately will be responsible for the death of this hostage and probably his family as well." He said: "I would like [an] assurance that the chief investigation officer and crown counsel have been consulted as to their willingness to continue with this operation in the light of this most recent revelation." Sources say such a strongly worded memo to a senior line manager is highly unusual in Customs. Senior managers accepted that the hostage remained at risk, but nevertheless gave the operation the green light. A number of concerned officers from the squad - nicknamed the Manchester A-Team - refused to take part in the operation. The suppliers were the Cali cartel, who controlled the global illegal cocaine market. It is generally known that the relatives and associates of minions involved in deals were seen as "guarantors", who would be killed if the deal went wrong. The Manchester A-Team put together plans to lure the Colombians into Britain by offering a deal to import large amounts of cocaine. Begonia 2 officers set up a false company and "borrowed" a bank. A former bank manager turned customs officer slipped into his old role at the plush offices of a NatWest branch in Manchester to help bamboozle the Colombian drug dealers. He had a set of bogus accounts for a fictitious import-export company called Southern Latitude Holdings Ltd, showing millions of pounds going in and out of the business and ?14m in assets. The company purported to have warehouses all over the north, complete with polished brass nameplates in lifts. The Bank of England was persuaded to help this plan, agreeing to loan the investigators ?1m in cash as "flash money" to impress the smugglers. Bundles of high denomination notes were stuffed into safety deposit boxes in the bank strongroom. It was a high-risk strategy by the team leader "Peter Hesketh" who as well as handling the informant, was also the pivotal undercover officer. It was the perfect sting. When the Colombian dealers saw the cash they were suitably impressed and agreed to smuggle record amounts of cocaine to the UK. According to a television drama documentary called Undercover Customs, produced with the help of Customs, the operation could not have got off the ground without the help of "Steve", the key informant handled by "Hesketh". "Steve" regularly travelled abroad and had made several trips to South America working for both Customs and the US Drugs Enforcement Agency. He offered the cartel a direct route to smuggle 250kg (551lb) of almost pure cocaine into Britain, followed by the same amount every 10 days for a year. If it had been a genuine smuggling plan it would have more than doubled the amount of cocaine on the streets of the UK. Without the intervention of "Steve", none of this shipment of cocaine would have come to Britain, documents seen by the Guardian reveal. Customs paid him ?100,000 for his work on Begonia. According to sources close to the operation, this "star" fixer boasted that he wanted to be the first millionaire informant. The documents reveal that as far back as 1991 he was threatening to travel to South America to set up deals - "with or without" Customs approval. One officer warned in a detailed report: "It is apparent that 'Steve' has held himself out to the suppliers as a potential purchaser of the 250 kilos of cocaine and there is as yet no UK-based distribution network. The statement 'the arrangements for this 250 kilos consignment is well advanced' again appears to indicate that we have insufficient control over 'Steve'." He said the only explanation of the proposed funding of the drug deal was that Customs "is purchasing 250 kilos of cocaine from South America based suppliers and 'Steve' has represented himself as the spokesman for the purchases in the UK". He concluded: "At best I believe we can only hope to arrest three 'trustees' of this organisation who appear to have been entrapped by 'Steve' into coming to the UK in relation to an importation arranged and financed by this Division [Customs]. "It may be prudent to seek crown counsel's advice on the various issues raised by this importation before proceeding further, particularly that of 'Steve's' involvement as agent provocateur." For Customs, Operation Begonia appeared to have been a huge success with the judge commending "the courage, resourcefulness, intelligence and persistence of the Customs & Excise officers involved in this investigation". According to sources close to the original investigation, the operation reflected a new strategy to secure large seizures of drugs coming into Britain. "The idea was to invite importations, to create a market for Customs to milk. Where there was no activity and work, Customs would create the work," said one source, who spoke on condition of anonymity. In a statement, a Customs spokeswoman told the Guardian: "The investigation and prosecution known as Operation Begonia, which took place in the period 1991 to 1995, are part of an ongoing inquiry by West Midlands police. As such, you would not expect Customs to comment further. In fact, it would be entirely inappropriate and may be prejudicial for anyone to do so. Customs are cooperating fully with the police in their investigation." - --- MAP posted-by: Jo-D