"Since October 2001, U.S. Customs inspectors at the Port of Blaine have seized over two tons of BC Bud marijuana hidden in commercial trucks," say Service Port Director Peg Fearon. "The wholesale value for two tons of this high potency marijuana is approximately $12 million. This is the latest in a series of large BC Bud marijuana seizures made by inspectors at the Pacific Highway Commercial Truck Crossing."

2,544 pounds of marijuana seized at Brownsville
A total of 2,544 pounds of marijuana, with a street value of $2.5 million, is seized during a routine examination of a bus going through Brownsville's port of entry on January 15. This marks one of the largest loads of marijuana seized in the past few years.

An inspector referred a 1986 Dina luxury bus for a secondary examination. During the examination, a non-intrusive X-ray scan indicated an anomaly in the rear part of the bus. Upon further examination, inspectors found bundles of marijuana behind the rear wall.

The driver was arrested on federal charges of importation, conspiracy to possess a controlled substance, possession with intent to distribute a controlled substance, and making false statements.

Margie Gutierrez, Brownsville's Port Director, praised the inspectors: "This is an awesome amount of narcotics to be seized in the passenger vehicle environment. Our inspectors utilized their experience and non-intrusive inspection technology and achieved excellent results."

HIFCA arrest four for money laundering
On January 15, the U.S. Attorney for the District of Puerto Rico, and the High Intensity Financial Crimes Area Task Force (HIFCA) announced the arrest of four individuals on money laundering charges.

Customs special agents arrested the four for violation of Title 18 United States Code 1956 (a)(1) and 1956 (h). The arrest stemmed from an investigation related to money laundering activities throughout Puerto Rico, New York, Miami, Chicago, and Colombia. Those arrested were involved in the delivery of approximately $1,132,121 of narcotics proceeds by Colombian drug organizations in Puerto Rico and placed in local financial institutions. These illicit funds subsequently were wire transferred to accounts abroad and laundered utilizing the Colombian Black Market Peso Exchange method.

In addition to this arrest in Puerto Rico, arrest warrants were executed in New York, Chicago, Miami, and Bogota. Several vehicles used to transport the illicit funds were also seized.

Customs probe into satellite manufacturer results in record $20 million fine
Customs announced on January 10 that Space System/Loral, a U.S. satellite manufacturer, has agreed to pay a $20 million fine for allegedly passing licensable technology to China to improve its missile guidance systems. The Customs special-agent-in-charge office in Baltimore, Md., investigated the case.

The investigation began in May 1996 after reports surfaced that Loral had released sensitive technical data to the Chinese. Earlier that year, Loral had undertaken a review of a failed launch of one of its satellites in China. The satellite was built for Intelsat and was being launched by a Chinese rocket. Loral later admitted to the U.S. State Department of having unintentionally released sensitive information to Chinese authorities after the review.

Loral was charged with violating the Arms Export Control Act, which governs the transfer of sensitive U.S. technology to foreign governments. Under the terms of an agreement reached between Loral and the State Department, the company agreed to pay the fine without admitting or denying the government's charges.

The $20 million fine is the largest paid by an American company under the Arms Export Control Act. Approximately $6 million will be used by Loral to implement better export controls, and $14 million in cash will be paid to the government.

Customs is responsible for preventing the illegal movement of U.S. munitions and technology having sensitive civil and military applications to prescribed destinations around the world, and to terrorist organizations that pose a threat to the national security of the United States.