4 Arrested, Charged With Laundering Drug Money

Four Israelis have been charged with trying to launder at least $2.4 million from illicit drug sales to a bank in Panama, the U.S. Customs Service announced Friday.

The two men and two women, all San Fernando Valley residents, were arrested Thursday after an investigation that began when customs officers discovered a package of 32 checks totaling $284,880 during an inspection of packages at Los Angeles International Airport on Sept. 15.

Charged with conspiracy and attempting to evade money-reporting laws were Abraham Zarchia, 38, of Sherman Oaks; Yona Kleinzahler, 33, of Canoga Park; and a married couple from North Hollywood, Izhak and Rivka Edri, both 36. The charges carry terms of up to 10 years in prison and $500,000 in fines, Customs Agent Joseph Charles said.

The four suspects were arraigned Friday in U.S. District Court in Los Angeles and were being held without bail in Terminal Island Federal Corrections Institution. Charles said the investigation was continuing and more arrests were possible.

Charles said customs agents and police arrested the Israelis at their homes and confiscated five vehicles used in the laundering operation. The four entered the country legally 18 months ago, but the temporary visas of three had expired and the temporary visa of the fourth was about to expire, Charles said.

Charles said the arrests were part of a two-year Customs Service effort to stop the trafficking of profits from illegal drug sales.

Customs agents are empowered to check packages being mailed abroad and are watchful of packages sent to countries with bank secrecy laws, such as Panama, Charles said. “That was sort of a red flag for us,” Charles said.

The first package of checks was dropped off at a Federal Express office in Encino, destined for “Clara Garcia” at a Panama City address, Charles said. The intended receiver was really the Banco de Occidente and the return address--the Iveco Co. Ltd. of 12120 Riverside Drive in North Hollywood--turned out to be a vacant lot, Charles said.

Clara Garcia may not exist or could be an officer at the bank, Charles said.

Gerita Hinkel, a Customs Service spokeswoman, said the checks were in amounts small enough to avoid federal reporting requirements for checks of at least $10,000. “However,” she said, “they happened to have stacks of them.”