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Long Drug Trial in Last Stage : Narcotics: Money-laundering case has set record as longest criminal trial in L.A. federal courthouse. It is nearly ready to go to jury.

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TIMES STAFF WRITER

A record-setting trial of more than seven months, in which nine defendants are accused of conspiring to launder about $350 million in drug money through a business in Los Angeles’ downtown jewelry district, appeared nearly ready to go to the jury Wednesday.

The case, which grew out of a lengthy federal investigation code-named “Operation Polar Cap,” has set the record for the longest criminal trial in Los Angeles’ federal courthouse, according to a spokesperson for the U.S. attorney.

Jury selection began last April 11 and testimony from nearly 100 witnesses began on May 22.

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It is expected the government will conclude its final rebuttal argument today so that U.S. District Judge William D. Keller can instruct jurors before they start deliberations.

In his rebuttal, Assistant U.S. Atty. Russell Hayman told jurors Wednesday it was not necessary to produce evidence of drug deals to prove that the millions of dollars in small bills that flowed through the Andonian Bros. Manufacturing Co. represented drug profits.

Of the nine defendants, including the brothers Nazareth and Vahe Andonian, Hayman said: “It wasn’t their job to handle drugs. It was their job to handle receipts.”

Hayman and co-prosecutor Assistant U.S. Atty. Jean Kawahara argued that the defendants conspired to participate in an international drug-money laundering scheme which was concealed through purchases of large amounts of gold bullion. They alleged that the cash was returned to South American drug lords to underwrite their operations.

In an affidavit filed with the court, Drug Enforcement Administration Agent Michael Orton estimated that between 1986 and February, 1989, when the defendants were arrested, the Andonian firm and another downtown jewelry company which is the object of a separate trial, Ropex Corp., “deposited in excess of $1 billion in cash into their accounts at Los Angeles area banks.”

The government has alleged that the individual who orchestrated the money laundering scheme was Raul Vivas, 38, a gold dealer from Buenos Aires.

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Vivas’ attorney, Martin L. Schmukler, told jurors Wednesday that his client “was held in very high regard” in the precious metals business and was “a man of integrity.”

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