SUCCESSFUL EXTRADITION TO URUGUAY OF JUAN PEIRANO

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SIPDIS

FOR L/LEI SUSAN TORRES
JUSTICE FOR INTERNATIONAL AFFAIRS
BUENOS AIRES FOR LEGAT WILL GODOY AND DHS/ICE KLEPPE AND
FREEMAN
DHS FOR OIA

E.O. 12958: N/A
TAGS: PREL CFED SOCI KCRM UY
SUBJECT: SUCCESSFUL EXTRADITION TO URUGUAY OF JUAN PEIRANO
BASSO

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1. (U) This telegram is sensitive but unclassified, and not
for Internet distribution.

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Summary
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2. (SBU) The extradition from the U.S. of Uruguayan fugitive
Juan Peirano Basso was successfully concluded September 10.
The financial implosion of businesses controlled by Juan
Peirano Basso and other members of his family are alleged to
have cost Uruguayans hundreds of millions of dollars and
contributed significantly to the devastating regional
financial crisis of 2001-2002, and his touchdown in
Montevideo marked the end of an extradition process that
began almost three years ago. That process had been the
subject of intense interest at Uruguay's highest levels,
including President Vazquez. Peirano Basso was led amid
tight security from the airport to court, where he declined
to testify. Returning Peirano Basso has resulted in positive
press for the U.S. and the gratitude of Uruguay's political
leadership. End Summary.

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Background
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3. (SBU) In July 2001, Uruguay's Central Bank ordered the
closing of the Banco de Montevideo, one of the largest
private financial institutions in Uruguay and a member of the
Velox Group, managed by Juan Peirano Basso and other members
of his family. That action took place in the context of
other significant financial events in the region, including a
massive devaluation in Brazil and a bank run in Argentina,
which caused a near collapse of the Uruguayan economy. The
U.S. rescued Uruguay by engineering a USD 1.5 billion bridge
loan, but the crisis was nevertheless devastating to
Uruguayans, halving their per capita incomes and plunging
many into poverty. The alleged embezzlement by Juan Peirano
Basso of large amounts of depositors' funds, and his
subsequent flight from justice to the U.S., caused many
Uruguayans to view him as having played a central role in the
crisis.


4. (SBU) The Uruguayan Criminal Court ordered the prosecution
of some members of the Peirano Basso family, including Juan,
in August 2002. Charges included conducting a multi-million
dollar fraud that victimized Uruguayan depositors and
destabilized the Uruguayan financial system. However, Juan
had already entered the U.S. on an Italian passport by that
time, and he eventually received permanent residency under
the name John Basso. Juan Peirano Basso is also sought by
Argentine and Paraguayan authorities for related charges.
The Uruguayan government first formally requested his
provisional arrest in November 2005, beginning the process
that led to his identification, location and arrest by
ICE/Miami's Foreign Corruption Unit on May 19, 2006. That
arrest was based on a collateral request issued by ICE
Attache's office in Montevideo, and involved coordinated
efforts by ICE/Miami and Montevideo, the Uruguayan judicial
branch, the INTERPOL Uruguay Directorate, and the National
Bank of Uruguay.


5. (SBU) The clock really started ticking on Peirano Basso's
extradition on July 11, 2008, when the U.S. Court of Appeals
for the Eleventh Circuit affirmed the district court's denial
of Peirano Basso's appeal of the finding that he was
extraditable to Uruguay. Because U.S. statutes generally
provide that a fugitive must be transferred to the custody of
the Requesting State within two months, Peirano Basso's
transfer needed to be effected by September 11, 2008. Deputy
Secretary Negroponte signed the surrender warrant September
3, the Uruguayan Embassy was notified the same day, and that
warrant was authenticated September 4. To prepare for any
disruptions Hurricane Ike might cause to the extradition, the
GOU sent its three escorts to the U.S. a few days earlier
than planned. The Hurricane ended up not affecting relevant
flights from Miami, and on September 9 Peirano Basso was
escorted aboard LAN Chile flight 501, which after a
connection in Santiago brought him to Montevideo September

10. Looking thinner and more frail than in photos from his
pre-fugitive days, Peirano Basso was taken from the airport
directly to court, where he ran a gauntlet of jeering

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erstwhile depositors. He declined to testify, and was taken
to a holding cell. Peirano Basso is scheduled to appear
again before a judge September 11.

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Comment, and Kudos
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6. (SBU) The extradition of Juan Peirano Basso is a major
anti-corruption success story. High-level GOU officials had
stressed the importance they placed on a successful
extradition. Embassy Montevideo would like to thank and
congratulate all of our colleagues who contributed to this
result, including DHS/ICE in Buenos Aires and Miami (and its
previous office in Montevideo); L/LEI and WHA in State;
DS/IP/WHA; DOJ/FBI in Washington, Buenos Aires and Asuncion;
and the U.S. Marshals Service.
Baxter