11 Indicted in Drug Money Laundering : Law enforcement: A U.S. grand jury charges that $10.9 million in cocaine profits was transferred through California and three other states.

A federal grand jury indicted 11 people Thursday on charges of illegally laundering $10.9 million in cocaine profits through four states, including California.

Acting U.S. Atty. Terree Bowers said the alleged leader of the money-laundering organization, Hernando Castro Cardenas, 39, a Colombian, had been arrested in New York on June 10 and is being held without bail pending transfer to Los Angeles.

Seven Los Angeles residents, two Colombians and a Mexican also were indicted.

According to the 24-count indictment, Cardenas devised a scheme to collect millions of dollars of cocaine proceeds, then delivered them to Drug Enforcement Administration undercover agents who were posing as money launderers.

The agents deposited the cocaine proceeds into bank accounts and, acting at Cardenas’ instructions, wire transferred the money to various bank accounts in Miami and New York.

After the laundered funds were deposited in the banks, they were funneled back to cocaine traffickers and money launderers in Colombia.

From July, 1988, to January, 1990, Cardenas personally delivered money and arranged for other defendants to deliver money to DEA undercover agents, the indictment says. It charges that Cardenas’ organization made 22 cash deliveries, totaling $6.4 million. At the same time, DEA agents seized $4.5 million in laundered cash from the Cardenas organization.

Cardenas is accused of conspiracy to aid and abet the possession and distribution of cocaine, money laundering and other offenses. If convicted, he faces a maximum penalty of life imprisonment and fines of up to $13 million, according to Assistant U.S. Atty. Mark A. Byrne. The other defendants face penalties ranging from five years in prison and a fine of $500,000 to life imprisonment and a fine of up to $5 million.

The other defendants are Martha Castro and Nubia Castro of Colombia; Norberto Alvarez Chavez of Mexico, and Elizabeth Acanda, Lina Patricia Cortes, Dario Dicesare, Eli Hazbun, Juan Carlos Martin, Mario Pacido Rodriguez and Henry Villa of Los Angeles. Byrne said Villa and Pacido Rodriguez are awaiting arraignment in Los Angeles. Dicesare is serving a 20-year sentence in federal prison for narcotics trafficking and the others are fugitives.

Pacido Rodriquez’s attorney, Mark Geragos said, “at the appropriate time, Mario will be vindicated.” Lawyers for the other defendants could not be reached.