KINGPIN ZEVALLOS ARRESTED FOR DRUG TRAFFICKING AND

UNCLAS SECTION 01 OF 02 LIMA 005011

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: SNAR PGOV PE
SUBJECT: KINGPIN ZEVALLOS ARRESTED FOR DRUG TRAFFICKING AND
MURDER

Sensitive But Unclassified, Law Enforcement Sensitive
Information, Please Handle Accordingly.


1. (U) Summary: OFAC-designated Kingpin Fernando Zevallos was
arrested in Chosica on charges of drug trafficking, three
counts of murder, attempted murder, and three counts of
coercion of witnesses on 11/19. The arrest warrant issued in
the early morning was executed by the Peruvian National
Police (PNP). The arrest was the result of an extensive
effort by DEA-Lima in coordination with PNP authorities. End
Summary.


2. (U) On 11/19 at 12:30pm, U.S. Treasury Office of Foreign
Assets Control (OFAC)-designated Kingpin Fernando Zevallos
Gonzales was arrested by Peruvian authorities in Chosica.
The charges against Zevallos are: 1) Drug Trafficking; 2)
three counts of Murder (Jose Maria Ruiz Aguilar, Carlos
Alberto Alayo Rodriguez, Jesus Flores Matias); 3) Attempted
Murder (Cesar Angulo Tanchiva); and 4) three counts of
Coercion of Witnesses (Cesar Angulo Tanchiva, Oscar Benites
Linares, Lincoln Flores Matias). Six other subjects within
the Zevallos organization were also charged with the same, as
well as Accessory to Murder. DEA Lima provided significant
assistance and guidance in developing these charges.


3. (SBU) Zevallos had been under constant surveillance by
DEA-vetted SIU (Sensitive Investigative Unit) PNP personnel
in anticipation of issuance of this judicial warrant
issuance. His arrest was safely effected by coordinating a
routine vehicle stop by PNP police units after Zevallos left
his Lima residence and headed for his weekend retreat in
Chosica outside the city. Zevallos was armed with an illegal
AKM assault rifle and accompanied by a driver, a bodyguard,
and wife Sandra. Zevallos personal laptop computer and
several GSM cellular telephone chips were also seized.
Concurrent to execution of the arrest warrant, a search
warrant for Zevallos' residence in Lima was obtained and
executed on 11/20. Additional search warrants are being
executed on locations connected to Zevallos, including the
former AeroContinente office.


4. (SBU) Coordination between DEA domestic and foreign
offices as well as Narcotics and Dangerous Drugs Section of
Department of Justice was essential as was collaboration
between DEA and the PNP. Key events in the collective effort
leading to Zevallos' arrest include:

-- In July Jorge Chavez Montoya (a key lieutenant within the
Zevallos organization) was arrested in connection with a
19-kilo cocaine seizure in Iquitos.

-- In July the Ministry of Interior, responding to a DEA
request, authorized a special investigation of Chavez and
Zevallos. (Note: Until that time, there was no official
investigation authorized involving Zevallos in Peru.
Zevallos used his influence to avoid being arrested for his
current criminal trial and to be treated as a defendant in a
civil suit. End Note.)

-- On 11/3, DEA Lima released a letter to the Peruvian
Prosecutors revealing that Chavez had acted previously as a
cooperating defendant in the U.S. and named Zevallos as a
cocaine trafficker. This event was key to supporting the
decision to charge Zevallos with drug trafficking.


5. (U) Based on an 11/20 investigative television program,
"La Ventana Indiscreta" the press widely reported on 11/21
that Zevallos contributed to many political parties during
previous election campaigns, including President Toledo's
Peru Posible (PP) party, APRA, Unidad Nacional, Accion
Popular, and the pro-GOP FIM. President Toledo publicly
denied any financing by Zevallos of his party; party leaders
across the board have made the same denials. However,
President Toledo acknowledged that some PP candidates
received airline tickets from Zevallos' airline,
AeroContinente, during the election campaigns. President
Toledo added that this practice of receiving free airline
tickets was common among other parties and with other
airlines. Minister of Interior Romulo Pizarro acknowledged to
the press that he did receive free AeroContinente tickets in
2002, and said "given what has transpired it was not very
prudent." Congressman Luis Iberico, President of the Defense
Commission, called for a special commission to investigate
all the links between Zevallos and politicians.
STRUBLE