Mountain of money tied to Mexico drug suspect
http://seattletimes.nwsource.com/

By Hector Tobar

Los Angeles Times




RICHARD DREW / AP

Zhenli Ye Gon faces criminal charges in two countries.
MEXICO CITY — A week ago, Zhenli Ye Gon was the toast of the Mexican media.

Speaking by telephone from a hiding place, he told a news conference he would one day prove that senior officials of the government of President Felipe Calderón were responsible for the $207 million in illicit cash found in his Mexico City home.

Tuesday, Ye Gon was in a U.S. courtroom, having been captured hours earlier at a restaurant in suburban Washington by U.S. agents who traced his cellphone. He is facing criminal charges in two countries that he trafficked in massive amounts of amphetamines destined for the United States.

Calderón, meanwhile, claimed victory in what was said to be the largest drug-cash seizure in the country's history.

"Today, those who commit crimes should know that my government will not spare any resources or effort to hunt them down wherever they may be," Calderón said at a speech at his alma mater, the Free School of Law.

U.S. Drug Enforcement Administration (DEA) agents arrested Ye Gon in Wheaton, Md., Monday night, about four months after Mexican police entered his Mexico City mansion on suspicion that he was running a methamphetamine-production ring.

With its haul of cash, involving more than 2 tons of U.S. $100 bills, and allegations of official complicity, the case has come to symbolize the great wealth and power behind the international trade in illicit drugs.

Ye Gon, 44, a naturalized Mexican of Chinese descent, was arraigned Tuesday in U.S. District Court in Washington on drug-trafficking charges. He was ordered held without bond for at least the next 10 days. His next hearing is scheduled for Aug. 3.

Ye Gon, also known as Charley Ye, said little during the brief hearing.

Mexican Attorney General Medina Mora said officials there had 60 days to file arguments for Ye Gon's extradition on a variety of drug-trafficking charges, although it was unclear Tuesday whether the United States would agree to a quick extradition.

If convicted in Mexico, he faces up to 73 years in prison. U.S. authorities filed their own charges against Ye Gon last month.

Tuesday, U.S. officials released an eight-page affidavit by a DEA agent in Mexico City that offers new details on the scale of Ye Gon's alleged operation. He is said to have imported enough "precursor chemicals" to produce methamphetamines with a street value of $724 million.



A note discovered at Ye Gon's mansion refers to apparent assistance from corrupt Mexican customs officials, the affidavit said.

Ye Gon traveled often to Las Vegas to launder drug money and to gamble, the affidavit said. Between 2004 and 2007, records from Las Vegas hotels and casinos show Ye Gon had gambling losses of $125.9 million.

DEA agents conducted tests in April at Ye Gon's Mexican pharmaceutical plant and discovered ephedrine, a stimulant and decongestant that can be used to manufacture methamphetamines.

Martin McMahon, a Washington lawyer representing Ye Gon, told The Associated Press that the charges against his client were "complete nonsense. ... He has never had drugs, and he didn't have any drugs on him when he was arrested."

If extradited, Ye Gon will not receive a fair trial in Mexico, McMahon said.

Ye Gon has said the chemicals imported by his company, Unimed Pharm Chem de Mexico, were intended for use in prescription drugs to be made at a factory he was building in Toluca, just west of the Mexican capital.

Michelle Wong, described by U.S. officials as Ye Gon's co-conspirator, was arrested Monday in Las Vegas on federal charges.

Before his arrest, Ye Gon said Mexican officials had forced him to store the money in his home. He said the funds were destined for use in Calderón's 2006 presidential campaign and "terrorist" activities. Calderón called the statements a "tall tale."

Ye Gon's arrest comes amid growing concern in Mexico that his alleged drug operation may have flourished because of the cooperation and complicity of corrupt officials.

According to news reports, an investigation by the Mexican attorney general's office is focusing on the role of drug regulators and of a high-ranking tax and customs official, Luis Roberto Patrón Arregui.