PARAGUAY: DRUG LAWYER/COLORADO LEADER KILLED

C O N F I D E N T I A L ASUNCION 001087 SIPDIS SIPDIS NSC FOR SUE CRONIN E.O. 12958: DECL: 10/03/2026 TAGS: KCRM PA PGOV PINR SNAR SUBJECT: PARAGUAY: DRUG LAWYER/COLORADO LEADER KILLED Classified By: PolCouns James P. Merz; Reasons 1.4(b),(d) ¶1. (C) Faustino Villalta, President of the Colorado Party's precinct in Pedro Juan Caballero, was shot and killed October 22 immediately outside his house. Villalta was the defense lawyer of several renowned drug traffickers in the region, bordering Brazil, including Brazilian trafficker Luis Carlos da Rocha, the subject of the Anti-Drug Secretariat's (SENAD) Most Wanted Campaign. Villata was a candidate for Governor of Amambay in 2003 and was said be considering another run at the governor's race in 2008. He was also reportedly close to President Duarte. ¶2. (C) Villalta's son, Christian Adilson, was arrested in the course of a SENAD operation in June 2006 for his involvement as a pilot in the international transport of 195 kilos of cocaine and remains in jail pending his trial. In the course of its investigation, SENAD uncovered evidence that the father was involved in laundering money for da Rocha and consequently embargoed assets in his name including a farm and funds tied to a business account. ¶3. (C) Both Christian and Villalta's second son, Walter, had reportedly incurred significant debts with mafia figures. Last month, the father had pursued a meeting with SENAD Director Hugo Ibarra, ostensibly for the purpose of lobbying for the release of his son. Ibarra refused to see him and instead had a SENAD lawyer meet. Ibarra told PolCouns he now believes Villalta may also have wanted to appeal for the release of his assets to pay off his son's debts. The conventional wisdom in police circles is that the mafia killed Villalta when he proved unable or unwilling to pay off his sons' debts. There is also the widespread, if quiet, belief that Villalta was a major PJC conduit for narco-monies ending up in Colorado Party coffers. ¶4. (C) Comment: Murders of his kind are relatively uncommon in Paraguay. Certainly, there is no reason to mourn the death of someone with links to major drug traffickers who traded on his ties to major political figures. Many in PJC see storm clouds brewing and expect a further upsurge in narco-on-narco violence. One major trafficker has already publicly "declared war" on SENAD and prosecutors. Furthermore, as SENAD continues to go after Paraguay's major traffickers, many with links to powerful political figures, it is not difficult to imagine traffickers may soon take out their resentment with SENAD. CASON