ARGENTINE AIRLINE COMPANY SUTHERN WINDS (SW)

UNCLAS SECTION 01 OF 03 BUENOS AIRES 000392 SIPDIS SENSITIVE POST FOR DEA ONLY DEA HQS FOR OE/OI/OIL/OEL FIELDS/TREMPALA, SARI FOR INDEXING LA PAZ CO FOR ACAS KUSEN/ROMERO MADRID CO FOR CA ALFRED CHRISTLIEB/ S/A FERNANDEZ E.O. 12958: N/A TAGS: AR DEA SUBJECT: ARGENTINE AIRLINE COMPANY SUTHERN WINDS (SW) IMPLICATED IN 60 KILOGRAMS COCAINE SEIZURE IN MADRID IN SEPTEMBER 2004; THREE SW EMPLOYEES ARRESTED. REF: A. FILE:GFZA 05-4002-UEC1I SOUTHERN WINDS AIRLINES ¶B. GFZA-99-8027-POLICIA AERONAUTICA ¶C. GFZA-05-9116-AIRLINE EMPLOYEES 1.(SBU) ON FEBRUARY 13, 2005, THE ARGENTINE NEWSPAPER LA NACION PRINTED A STORY REGARDING THE REMOVAL OF THE HEAD OF THE POLICIA AERONAUTICA NACIONAL (PAN),COMODORO ALBERTO BELTRAME, AT THE EZEIZA INTERNATIONAL AIRPORT IN BUENOS AIRES, ARGENTINA. PAN IS TASKED WITH MANAGING THE OVERALL SECURITY OF THE AIRPORT. COMODORO BELTRAME WAS REMOVED AS A PRECAUTION DUE TO HIS SON'S INVOLVEMENT IN THE USE OF A SOUTHERN WINDS AIRLINE TO SMUGGLE FOUR SUITCASES CONTAINING 60 KILOGRAMS OF COCAINE TO THE BARAJAS INTERNATIONAL AIRPORT IN MADRID, SPAIN, IN SEPTEMBER 2004. THE COCAINE WAS SEIZED BY THE GUARDIA CIVIL IN SPAIN AND NO ARRESTS WERE MADE AT THE TIME. COMODORO BELTRAME,S SON IS IDENTIFIED AS WALTER BELTRAME, AGE 22, WHO WORKED AS THE FREQUENT FLYER PROGRAM MANAGER FOR THE ARGENTINE AIRLINE SOUTHERN WINDS. 2.(SBU) SINCE THE STORY FIRST APPEARED IN LA NACION, THE COCAINE SEIZURE IN SPAIN INVOLVING SOUTHERN WINDS HAS MUSHROOMED INTO A FULL BLOWN POLITICAL SCANDAL IN ARGENTINA. PAN HAS BEEN IMPLICATED IN THE SCANDAL AND AS A RESULT, THE SECURITY PROCEDURES IN PLACE AT THE EZEIZA INTERNATIONAL AIRPORT HAS BEEN COMPROMISED. 3.(SBU) SOURCES CLOSE TO THE INVESTIGATION HAVE PROVIDED INFORMATION TO THE BUENOS AIRES COUNTRY OFFICE. DETAILS REGARDING THE SEIZURE OF THE 60 KILOGRAMS OF COCAINE IN MADRID FIRST SURFACED IN ARGENTINA WHEN THE BROTHER OF THE CEO AND FOUNDER OF SOUTHERN WINDS, CHRISTIAN MAGGIO, PROVIDED A DECLARATION BEFORE AN ARGENTINE JUDGE ON OCTOBER 5, 2004. CHRISTIAN MAGGIO IS THE GENERAL MANAGER FOR SOUTHERN WINDS. MAGGIO HAD BEEN CONTACTED ON OR ABOUT SEPTEMBER 23, 2004, BY BARAJAS AIRPORT AUTHORITIES AND ADVISED OF THE SEIZURE OF 60 KILOGRAMS OF COCAINE FROM FOUR &CARRYON8 BRAND SUITCASES BY THE GUARDIA CIVIL. THE SUITCASES HAD ARRIVED IN MADRID FROM BUENOS AIRES ON SOUTHERN WINDS FLIGHT 6420 ON SEPTEMBER 17, ¶2004. THE SUITCASES DID NOT CORRESPOND TO ANY PASSENGERS ON THE FLIGHT, AND EACH HAD A LUGGAGE TAG BEARING THE NAME OF THE ARGENTINE EMBASSY IN MADRID. SPANISH CUSTOMS AND GUARDIA CIVIL MEMBERS PULLED THE BAGS OFF OF THE LUGGAGE CAROUSEL AFTER IT APPEARED THAT THE LUGGAGE HAD BEEN ABANDONED. THE GUARDIA CIVIL OPENED THE LUGGAGE WHICH WAS DETERMINED TO CONTAIN 60 KILOGRAMS OF COCAINE. THE GUARDIA CIVIL THEN PLACED THE LUGGAGE BACK ON THE CAROUSEL AND ESTABLISHED SURVEILLANCE ON THE BAGS FOR SEVERAL DAYS. ON SEPTEMBER 22, 2004, THE GUARDIA CIVIL DISCONTINUED THE ATTEMPT AT FURTHERING THE INVESTIGATION AND PROCESSED THE EVIDENCE AS NO ONE APPROACHED THE CAROUSEL TO RETRIEVE THE BAGS. ¶5. (SBU) GENERAL MANAGER MAGGIO INITIATED HIS OWN INTERNAL INVESTIGATION AND DETERMINED THAT THREE SOUTHERN WINDS EMPLOYEES WERE RESPONSIBLE FOR DEFEATING THE SECURITY MEASURES AND SUCCESSFULLY TRANSPORTING THE FOUR PIECES OF LUGGAGE ON SOUTHERN WINDS FLIGHT 6420. SUPERVISOR OF PASSENGER TRAFFIC CLAUDIO BAUDINO, SALES MANAGER FERNANDO ARRIETE (A FORMER AMERICAN AIRLINES EMPLOYEE) AND FREQUENT FLYER MANAGER WALTER BELTRAME WERE IDENTIFIED AS THE RESPONSIBLE EMPLOYEES. ¶6. (SBU) ARGENTINE FEDERAL JUDGE CARLOS LIPORACE ISSUED ARREST WARRANTS FOR ALL THREE INDIVIDUALS. BAUDINO AND ARRIETE WERE ARRESTED ON FEBRUARY 14, 2005, WHILE WALTER BELTRAME REMAINED A FUGITIVE UNTIL VOLUNTARILY SURRENDERING ON FEBRUARY 17, 2005. THE REASON BEHIND THE DELAY IN THE PROSECUTION OF THIS CASE SINCE CHRISTIAN MAGGIO FIRST REPORTED THE INCIDENT IN OCTOBER 2004 HAS YET TO BE REVEALED. ¶7. (SBU) AS ADDITIONAL BACKGROUND, IT WAS ESTABLISHED THAT SALES MANAGER ARRIETE ISSUED AN AIRLINE TICKET FOR WALTER BELTRAME TO FLY ON SOUTHERN WINDS ON SEPTEMBER 14, 2004, TO MADRID, TO ENGAGE IN UNKNOWN AIRLINE BUSINESS. AFTER ARRIVING IN MADRID, BELTRAME CALLED SUPERVISOR BAUDINO IN ARGENTINA AND INSTRUCTED HIM TO PASS THE FOUR PIECES OF LUGGAGE THROUGH SECURITY AND ONTO SOUTHERN WINDS FLIGHT 6420 SCHEDULED FOR DEPARTURE ON SEPTEMBER 16, 2004. BELTRAME TOLD BAUDINO THAT THE LUGGAGE WAS TO BE FORWARDED TO SPAIN ON BEHALF OF SOUTHERN WINDS FREQUENT FLYERS AND SPANISH NATIONALS ELENA TIOMIL BATAN AND RAMON GONZALEZ VILLAR. NEITHER INDVIDUAL WAS TICKETED AS A PASSENGER ON THE AFOREMENTIONED FLIGHT. IRONICALLY, SOUTHERN WINDS VICE PRESIDENT ENRIQUE MONTERO FLEW ON THE SAME FLIGHT AS THE FOUR PIECES OF LUGGAGE. SOURCES CLOSE TO THE INVESTIGATION INDICATED THAT THIS WAS MERELY A COINCIDENCE AS MONTERO NEEDED TO TAKE CARE OF SOUTHERN WINDS BANKING MATTERS WITH AN AFFILIATED BANK IN MADRID. ¶8. (SBU) THE ARGENTINE PRESS LATER REPORTED THAT THE TWO SPANISH FREQUENT FLYERS, BATAN AND VILLAR, HAD BEEN ARRESTED ON SEPARATE DRUG CHARGES IN SPAIN IN DECEMBER 2004. ¶9. (SBU) AS PREVIOUSLY STATED, THE ENSUING INVESTIGATION COORDINATED BY JUDGE LIPORACE CONTINUES TO GENERATE INFORMATION WITH SCANDALOUS REPERCUSSIONS INVOLVING THE SECURITY MEASURES IN PLACE AT THE EZEIZA AIRPORT. FOR INSTANCE, THE TAPE OF THE AIRPORT SECURITY CAMERA WHICH WOULD HAVE CONTAINED FOOTAGE OF THE SOUTHERN WINDS CHECK-IN COUNTER AND REAR SCANNER AREA FOR SEPTEMBER 15, 2004, WAS ERASED WITHOUT EXPLANATION. OTHER INCONSISTENCIES ARE SURFACING ON A DAILY BASIS THROUGH THE ARGENTINE PRESS. ¶10. (SBU) SOUTHERN WINDS SUSPENDED THEIR FLIGHTS TO MIAMI LAST YEAR DUE TO COST EFFECTIVENESS ISSUES. SOUTHERN WINDS, JET FUEL COSTS ARE CURRENTLY SUBSIDIZED BY THE ARGENTINE GOVERNMENT ON A MONTHLY BASIS. SOURCES SAY WITHOUT THE GOVERNMENT-SPONSORED SUBSIDIES, THE FAMILY-OWNED AIRLINES, WHICH FORMED IN CORDOBA, ARGENTINA IN 1996, WOULD FOLD. MADRID CONTINUES TO BE THE AIRLINES ONLY INTERNATIONAL DESTINATION TO DATE. ¶11. (SBU) THE BUENOS AIRES COUNTRY OFFICE WILL CONTINUE TO MONITOR THE PROGRESS OF THE INVESTIGATION IN AN EFFORT TO IDENTIFY THE SCOPE AND DURATION OF THE SMUGGLING OPERATION INVOLVING SOUTHERN WINDS AIRLINES. ¶12. (SBU) THIS CABLE HAS BEEN CREATED IN LIEU OF A DEA-6 IN ACCORDANCE WITH DEA AGENTS MANUAL SECTION 6242.11. ANY QUESTIONS CAN BE DIRECTED TO COUNTRY ATTACHE ANTHONY GRECO, JR., OR SA STEPHEN BRIGGS AT FTS (301) 985-9361 OR LOCAL (5411) 5777-4275. INDEXING ¶1. SOUTHERN WINDS AIRLINES ) NADDIS NEGATIVE; ARGENTINE AIRLINES FORMED IN 1996 IN CORDOBA, ARGENTINA, BY FOUNDER AND CEO JUAN JOSE MAGGIO; BUS ADD: SUIPACHA 1111, 26TH FLOOR, CAPITAL FEDERAL; AVENIDA COLON 540, SUITE 5B, CORDOBA, ARGENTINA; AVENIDA SANTA FE 782, THIRD FLOOR, CAPITAL FEDERAL; LAVALLE 730, SUITE 5B, CAPITAL FEDERAL; US ADDRESS: 3399 NW 72ND AVE., SUITE 214, MIAMI, FL; WEB SITE: WWW.SW.COM.AR. ¶2. MAGGIO, JUAN JOSE ) NADDIS NEGATIVE; DOB: 12/28/63; WHITE HISPANIC MALE; CIT: ARGENTINA; PRESIDENT/CEO/FOUNDER OF SOUTHERN WINDS AIRLINES BASED IN ARGENTINA; RES ADD: COLON 540, CORDOBA, ARGENTINA; OR ARENALES 3407, APT. 5C, CAPITAL FEDERAL; BUS ADD: AVENIDA SANTA FE 782, THIRD FLOOR, CAPITAL FEDERAL; CUIT Nol 20-16767015-7. ¶3. MONTERO, ENRIQUE A. ) NADDIS NEGATIVE; DOB: 12/15/33; WHITE ARGENTINE MALE; VICE PRESIDNET OF SOUTHERN WINDS AIRLINES; BUS ADD: AVENIDA SANTA FE 1970, THIRD FLOOR, CAPITAL FEDERAL; SANTA FE 782, THIRD FLOOR, CAPITAL FEDERAL; TUCUMAN 1318, SUITE 3P, CAPITAL FEDERAL; CARLOS PELLEGRINI 2450, MARTINEZ, BUENOS AIRES PROVINCE, ARGENTINA. ¶4. CARTASSO, MIGUEL A. ) NADDIS NEGATIVE; BUS ADD: FELIPE JULIANES 259, ACASSUSO, BUENOS AIRES PROVINCE, ARGENTINA. ¶5. PATANIAN, ANTONIO M. ) NADDIS NEGATIVE; BUS ADD: JUNCAL 1945, APT. 8B, CAPITAL FEDERAL, ARGENTINA. ¶6. BAUDINO, CLAUDIO FERNANDO ) NADDIS NEGATIVE; DOB: 06/24/76; SUPERVISOR OF PASSENGER TRAVEL FOR SOUTHERN WINDS; ARGENTINE MALE. ¶7. ARRIETE, FERNANDO PABLO ) NADDIS NEGATIVE; DOB: 08/10/69; ARGENTINE MALE; SALES MANAGER FOR SOUTHERN WINDS. ¶8. BELTRAME, WALTER EDGARDO ) NADDIS NEGATIVE; DOB: 01/26/77; ARGENTINE MALE; FREQUENT FLYER MANAGER FOR SOUTHERN WINDS; ARGENTINE MALE. ¶9. TAMBURRINI, CLAUDIO ) NADDIS NEGATIVE; ARGENTINE MALE; SOUTHERN WINDS AIRLINE EMPLOYEE BASED IN MADRID, SPAIN. ¶10. BATAN, ELENA TOIMIL ) NADDIS NEGATIVE; SPANISH NATIONAL ARRESTED IN CADIZ, SPAIN WITH 16 KGS OF COCAINE ON DECEMBER ¶2004. ¶11. VILLAR, RAMON GONZALEZ ) NADDIS NEGATIVE; SPANISH NATIONAL ARRESTED IN CADIZ, SPAIN, IN DECEMBER 2004. GUTIERREZ GUTIERREZ