Big Cocaine Bust Dwindles Down to a Few Misdemeanor Pleas

Several defendants charged in a massive FBI investigation of a “significant” North County cocaine ring have pleaded guilty to misdemeanors in exchange for no jail time, and defense lawyers say that prosecutors are looking to make more deals in the case.

Ninety-eight people were indicted in March by a federal grand jury for their alleged involvement in a South American-based ring. U.S. Atty. Peter K. Nunez once blamed the ring for smuggling as much as 25% of all the cocaine brought into the United States. Most of those arrested in the case were snared with the help of wiretaps and electronic surveillance used by the FBI and agents of the Drug Enforcement Administration.

Four months later, charges against two defendants have been dismissed and Assistant U.S. Atty. Maria T. Arroyo has reached plea bargains with 13 other defendants who agreed to plead guilty to a single misdemeanor count of using cocaine, defense attorneys said. Several attorneys told The Times that Arroyo has indicated a willingness to strike similar deals with an additional 20 defendants in the case.

Initially, most of those indicted faced felony counts of conspiracy and using the telephone to purchase a controlled substance. Convictions on the felony counts could have resulted in sentences of at least four years in federal prison.

But according to the plea bargains already reached, those who pleaded guilty to the misdemeanor counts are allowed to remain free. If they stay out of trouble for a year, the government has agreed to drop all charges against them. Had any of the defendants pleaded guilty to a felony or been convicted in a trial, he could have faced the possibility of a prison term and the additional burden of having a criminal record.

Defense lawyer Thomas J. Warwick said that Arroyo’s willingness to reach plea bargains with at least 20 more people indicates that prosecutors are finding that the large number of defendants has made the case too unwieldy and costly.

“She (Arroyo) has made several offers (to the other 20) where she has asked the defendant to plead (guilty) to a single felony count of using the telephone to purchase cocaine,” Warwick said. “Maria has offered to ask for no jail time or a maximum of six months in jail if the defendant agrees to the plea offer.”

While the government’s offer is tempting, Frank Ragen, another defense attorney, said that most lawyers are holding out for better deals for their clients.

“The government knows that most of the people caught in this investigation are small fish and relatively insignificant users (of cocaine). Frankly, the government would have a difficult time convincing a jury that these people were involved in a drug conspiracy. The facts aren’t there to prove the conspiracy charge. The (wiretap) tapes show that most of these people were purchasers who had never seen each other until they were brought to court,” Ragen said.

Arroyo appeared to agree with Ragen’s argument in a memo that she sent to attorneys involved in the case. She acknowledged in the memo that the plea bargains already consummated or being negotiated involve the “plankton in the case as opposed to whales, barracudas and other higher levels of fish life.”

Craig Weinerman, another lawyer involved in the case, said that Arroyo’s plea bargain offer is an attempt to justify the “extraordinary” cost of the government’s investigation.

“They spent a lot of money in this case, and now they realize they will still have a difficult time getting convictions against many defendants if they go to trial . . . . They’re trying to get pleas to anything to save face,” Weinerman said.

The case produced international headlines when Nunez announced the first arrests at a crowded press conference on March 18. According to Nunez’s initial charges, the ring allegedly headed by Peruvians Augustin Fernando Maurtua, 26, and Jose Antonio Ledgard, 27, was responsible for smuggling 20% to 25% of all the cocaine used annually in this country. That would be roughly 12 1/2 to 15 metric tons of the drug.

Federal prosecutors later modified Nunez’s claim and said the group was responsible for smuggling 25% of all the cocaine manufactured in Peru. But defense attorneys said that, four months after the first arrests were made, the FBI and the U.S. attorney’s office have not revealed how much cocaine was actually smuggled by the ring or how much of the drug was seized during the investigation.

“There have been some problems in determining the exact quantity of the cocaine involved in this case. It went from 25% of all the cocaine used in the United States, to 25% of all the cocaine used in San Diego, to 25% of all the cocaine used in North County to 25% of all the cocaine used in the bathroom of a North County bar on a Tuesday night,” Warwick said facetiously.

Efforts to learn from federal investigators how much cocaine was seized in the case were unsuccessful. FBI spokesman Gary Laterno referred all questions to the U.S. attorney’s office. A secretary there said that Arroyo was on vacation and unavailable for comment. Assistant U.S. Atty. Stephen Nelson, head of the federal narcotics task force, declined to comment.

According to the FBI, the cost of wiretap and electronic surveillance in the case was about $1.5 million.

Because of the large number of defendants charged in the case, defense attorneys said they do not expect the trial to begin until next spring. Defense motions in the case are scheduled to be heard through November and December.

Defense attorney Elizabeth Semel said she expects that between 60 and 65 people will actually stand trial in the case. Arroyo indicated to U.S. District Judge J. Lawrence Irving that she expects to prosecute the defendants in groups of 10, probably holding at least six separate trials.

The complexity and enormity of the case has prompted prosecutors to establish a telephone hot line for the benefit of defense attorneys. The large number of defense attorneys involved in the case has also given birth to a “case newsletter” that is published at least once month to keep the numerous attorneys advised of developments in the case. Arroyo has been invited to write a “guest column” for the newsletter so she can advise attorneys on logistical matters.

In one column Arroyo suggested a picnic and softball game between defense attorneys and federal officials.

“(Defense lawyer) Gene Iredale could pitch for the defense and I have a few FBI ringers in mind for the ‘Good Guys’ team,” she wrote. About the picnic, Arroyo suggested yet another bargain to the attorneys: “If you bring a fugitive along, you won’t have to bring a side dish.”