SUCCESSFUL EXTRADITION TO URUGUAY OF JUAN PEIRANO

UNCLAS SECTION 01 OF 02 MONTEVIDEO 000515 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 MONTEVIDEO 00000515 001.3 OF 002 ¶1. (U) This telegram is sensitive but unclassified, and not for Internet distribution. - - - - Summary - - - - ¶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. - - - - - - Background - - - - - - ¶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 MONTEVIDEO 00000515 002.3 OF 002 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. - - - - - - - - - - Comment, and Kudos - - - - - - - - - - ¶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