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He had with him a list of cases that he asserted would support his allegation that the DEA turned a deaf ear to drug investigations that linked the CIA and the Contras to trafficking. He provided this list to the DEA, who provided it to us. We requested from the DEA the case files contained on Castillo's list, but few of them mentioned the Contras: Such items as tail numbers, colors and marking of planes are reflected in the file. A DEA cable dated March 20, , discussed above, related informant information indicating that Carlos Amador was smuggling cocaine into the United States. Another unrelated cable in this file, dated April 24, , reported that the Costa Rica DEA office had been contacted by Costa Rica's National Security Agency, seeking information on a plane that might have transported Nicaraguan Contra leader Adolfo Jose Chamarro Cesar, who the Costa Rican authorities suspected might have been involved in smuggling narcotics to the United States. One of the cables in this file was Castillo's June 23, report regarding Amador, which we discussed above. DEA case GFTG This general case file documented various incidents involving light aircraft suspected of involvement in drug trafficking at Ilopango and elsewhere. The file makes no mention of the Contras or of any CIA involvement with drug trafficking. In this file, it was reported that the company was buying products at above market rates, then disposing of the perishable products in Miami. In one shipment of frozen yucca, American agents had found over pounds of cocaine. This file also contained several documents discussed above, concerning Amador, including the August 27, , debriefing report by Sandalio Gonzalez of an informant who provided information about Amador's alleged plan to fly aircraft to Colombia for use in drug smuggling, and the March 20, cable discussing Amador's alleged plan to smuggle cocaine into the United States. DEA case TG This file detailed the activities of the Pozo-Aparicio organization, said to have transported hundreds of kilograms of cocaine from Colombia to Los Angeles in and The cocaine was usually smuggled in stolen vehicles in which hidden compartments had been installed. The head of this organization, a Colombian, had said that he shipped cocaine to a person in El Salvador, and that the cocaine was delivered to a Colombian national who resided in Los Angeles. This case was closed on September 21, , after 20 people were arrested and 92 kilograms of cocaine seized. On December 12, , Castillo met Ordonez in an undercover capacity, and Ordonez told of making several trips a month as a cocaine and money courier. There is no mention of Contras or any CIA involvement with drug trafficking in this file. However, it appears to be a general air intelligence file from Mazatlan, Mexico. He was activated on May 17, and deactivated on October 30, The file contains no mention of Contra or CIA involvement with drug trafficking. It does mention an allegation from the informant that the government of Nicaragua, or factions of it, were involved in the transport of cocaine to the United States in In addition to the references to the Grasheim and Amador cases, the file also includes information relating to alleged drug trafficking by pilots at Ilopango that is not specifically tied to the Contras. The use of this informant is discussed more fully above. The file makes no mention of any involvement with the Contras or the CIA. He was reestablished as an informant in , but was soon deactivated again, this time for using his cooperation with the DEA to cover up his own drug activities. When he was indicted on federal charges in , he fled from the United States. Because he was a Guatemala citizen, the Guatemalan government would not extradite him to the United States. In September , the DEA's Guatemala office reestablished him as an informant yet again, after making clear that no deals would be made regarding the pending charges, but that any cooperation would be made known to United States authorities. Ultimately, this informant proved valuable to the Guatemala office, which later asked that the charges against him in the United States be dismissed. The file does not indicate whether the charges were actually dismissed. However, the informant was used on and off throughout the s and s by the Guatemala DEA office. This informant was one of the two mentioned by Castillo in his October 27, case opening report on Grasheim. As noted above, this informant provided the information about Grasheim that led to the September 1, search of his house. O'Conner told us that he knew of Castillo's allegations through the media, but said he had no personal knowledge relating to them. Torillo worked at DEA Headquarters between and , but never worked on a foreign desk. But he had not spoken with Castillo since The letter cited six violations allegedly committed by Castillo. The charges were as follows:. Misappropriation of the Property of Others. Misappropriation of Government Property. This charge alleged that Castillo had improperly accepted a fully automatic MAC machine gun from a confidential source, and had disregarded his supervisor's order to get rid of it. Violations of Regulations relating to the Export and Sale of Firearms. Federal law and applicable regulations forbid the export of military firearms overseas without a license, except for items intended for official use by federal agencies or furnished to foreign governments. Castillo was alleged to have sold a. Failure to Follow Written Instructions. Making a false statement. This charge was based on Castillo's claim to the DEA that he had not known that the purchaser of the. Castillo denied the charges, claimed that they were only administrative in nature, and alleged they were brought in retaliation for his investigations of alleged Contra and CIA drug trafficking. The charges were not finally resolved, however, because in , in lieu of the removal from his position that had been proposed by the DEA based on its assessment of the evidence in support of the charges, Castillo accepted a disability retirement from the DEA because of a stress-related disorder. It was beyond the scope of our review to determine the validity of these charges or whether Castillo's claims of retaliation had any merit. As noted above, Castillo refused to be interviewed by the OIG except under certain unacceptable conditions, and his refusal made it difficult to assess his claims fully. That interview did not focus directly on all of the issues discussed above, but did provide some important details as to Castillo's claims. According to Foster's report of the interview, Castillo said that shortly after arriving in Guatemala he received a cable from the DEA's Costa Rica office requesting that he check on the private supply hangars at Ilopango for drugs. Castillo started running the names of the pilots who were supplying the Contras with supplies through the DEA computer and found that they were listed as suspected drug traffickers. Castillo went to Ilopango and did 'some checking around. Castillo said he had informants who were supplying him with information about drug activity at Ilopango. Castillo also told Foster that he believed that Oliver North and the resupply operation at Ilopango were running drugs to raise money for the Contras. Regarding Grasheim, Castillo said that he heard reports from the DEA and others that Grasheim was involved in the drug activity at Ilopango. Castillo, who had trained the narcotics unit of the Salvadoran National Police, stated that he heard from that unit that it had targeted Grasheim 'for a bust. The only one who knew Grasheim was the Commander of U. Milgroup in El Salvador, James Steele, who said that he knew Grasheim but they had 'had a falling out. Castillo stated that he then went to Ambassador Corr to inform him about the proposed bust of Grasheim and the suspected drug activity at the 'CIA Hangar at Ilopango. Corr told Castillo there was a covert operation at Ilopango concerning the Contras. But Castillo told Foster that neither Corr nor any of the United States Government officials with whom Castillo spoke objected to the bust or tried to influence Castillo about it. Castillo said he called the Salvadoran narcotics unit and told them to go forward. Castillo was not present at the raid of Grasheim's house, but the next day saw the items that were seized, including large caches of weapons, explosives, and about a pound of marijuana. Castillo also had several of Grasheim's identification cards that were seized during the raid, including Grasheim's U. Embassy identification, which he showed to Foster. Castillo told Foster that after the raid, Castillo met with Corr several times and kept him informed of the investigation of Grasheim. Corr told Castillo that Grasheim had come to Corr and said he wanted all the items back that had been seized from his house. Castillo added that the narcotics unit of the Salvadoran police tried to 'bust' the houses where the resupply pilots lived, but the houses had 'already been cleaned out. Castillo said that he did not have much access to Ilopango because General Bustillo, the CIA, and the resupply people all knew he was nosing around and investigating their activities, and they did not cooperate with him. Castillo said that an informant had provided information to him. When the local CIA office found out that Castillo was using this person as an informant, the CIA allegedly took him over and would not let him use this person anymore. When we interviewed him, Foster told us that, although many people who had worked or were somehow involved with the Ilopango Airport were interviewed during the investigation by the Office of Independent Counsel OIC , no one other than Castillo had alleged drug involvement by the CIA or the Contras at Ilopango. Foster emphasized, however, that in his judgement a full investigation of that issue was not conducted by the OIC. But Foster said that he did not think that Castillo was a credible witness because, after setting out his own limited direct knowledge, he would proceed to make generalizations that people 'had to have known' that other people had drug involvement. This assessment by Foster to us was consistent with his evaluation of Castillo at the time of the interview. Foster wrote then, after the interview, that in his view Castillo made snap judgments which often were not substantiated. Foster explained in his report:. For example, everyone he sees in El Salvador and can't explain is automatically lumped into a group of covert operatives involved in every kind of secretive or illegal activity. He claims everyone knows everything, but he can't articulate it. He makes general accusations, but when I try to pin him down, he can't provide specific information that would support his conclusions. It is difficult to evaluate Castillo's allegations completely and with confidence because of the general nature of many of them, because of the passage of time since the events in question, and because of his and others' refusal to be interviewed by us. From our review of the files and our interviews, it appears that some of his allegations have a kernel of factual truth to them. For example, it is clear that there were sensitive covert operations being conducted at Ilopango Airport, and we have no doubt that the CIA and the U. Embassy were not anxious for the DEA to pursue its investigation at the airport. The DEA's investigation of drug trafficking activities at Ilopango was closed in , perhaps with the intervention of the U. It is also clear that there was intelligence, although not hard evidence, that some Contra resupply pilots were trafficking in drugs, and that Castillo made that information available to the DEA, as he states. But the conclusions that Castillo draws from these facts, and his broad claims about a conspiracy to smuggle drugs by the CIA and the Contras and to obstruct his investigation are not supported. The DEA did not have any hard evidence to substantiate the charges at Ilopango, and the search warrant on Grasheim's house did not find evidence of drug trafficking activities. Moreover, as reflected in Castillo's own report, Ambassador Corr said the DEA could investigate Castillo's claims about drug trafficking at Ilopango, but Corr requested that it be discreet. But there is no evidence that the CIA made this request for any reason other than that it wanted to use the informant. Nor do we find substantiation for Castillo's allegation that the CIA employee told Castillo that the only way the Contras could fund their operation was to sell drugs and asked him to stop investigating Ilopango. The CIA employee flatly denied this claim. Our view of Castillo's allegations was much in line with what Foster wrote after he interviewed Castillo in that Castillo was quick to jump to conclusions based on limited knowledge and little hard evidence, and the evidence Castillo did advance did not corroborate his broad assertions. Castillo's list of relevant files did not support his broad claims of Contra and CIA ties to drug trafficking, and the individuals we contacted about him, including his colleagues in Guatemala, also did not corroborate his claims. Several of his colleagues confirmed that Castillo has a tendency to make allegations without adequate evidence; some have stated that they did not find him to be trustworthy in his claims. But our conclusions about Castillo's allegations do not rely upon general impressions about his credibility. Rather, although some of his claims have a seed of truth behind them, the inferences he draws, and his core claims about CIA support for Contra drug trafficking, were not substantiated by our review. We located no reports in the files mentioning the Contras specifically, other than the ones we have discussed above. Although some others mention aircraft and pilots using Ilopango, it is difficult without an interview of Castillo to pin down precisely what he alleges happened in these cases or how they relate specifically to his claims about CIA and Contra drug trafficking. We requested from the DEA the case files contained on Castillo's list, but few of them mentioned the Contras: 78 1. The charges were as follows: 1. Castillo and the Office of Independent Counsel As noted above, Castillo refused to be interviewed by the OIG except under certain unacceptable conditions, and his refusal made it difficult to assess his claims fully. Foster explained in his report: For example, everyone he sees in El Salvador and can't explain is automatically lumped into a group of covert operatives involved in every kind of secretive or illegal activity. OIG's Evaluation of Castillo's Allegations It is difficult to evaluate Castillo's allegations completely and with confidence because of the general nature of many of them, because of the passage of time since the events in question, and because of his and others' refusal to be interviewed by us.

The CIA, Contras, Gangs, and Crack

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Everett reported to DEA management, for inclusion in a DEA response to a Congressional inquiry, that after meeting with personnel from the DEA, the Department of State, and the United States military, as well as various confidential informants in Central America, he could find no evidence to support allegations that either the Sandinistas or the Contras as entities were involved in drug trafficking to support their activities. He reported that although some individuals associated with these movements may have been involved in drug trafficking, there was no credible information indicating that the traffickers represented any political organization or were conducting their criminal activities on behalf of these groups. Everett wrote in this report that the DEA's Guatemala office had recently closed an investigation based in El Salvador in which there had been allegations of Contra involvement -- an apparent reference to the Grasheim case. Everett reported that, according to initial informant information, individuals believed to be associated with the Contra movement at the Ilopango Airport were also engaged in cocaine and weapons smuggling. He reported that at no time, however, did any informant or Salvadoran official either see or seize drugs. Everett noted that the DEA Guatemala office believed that the informants had exaggerated their accounts of activities at Ilopango. He related that some of the informant reports appeared to have been based on the fact that, on occasion, people arriving at the airport would leave their plane carrying a briefcase and run to the military side of the airport before clearing customs. The informants assumed that the briefcases contained cocaine. Everett noted that, although the informants had reported drug activity in hangars four and five, those hangars were accessible only to military personnel and views from the outside were quite limited. Everett suggested that any smuggling activity at Ilopango was probably being conducted by Francisco Guirola-Beeche, who was connected to extreme right-wing political groups in El Salvador, not to any Nicaraguan political factions. Everett reported that an anti-Sandinista informant had told him that Eden Pastora, the former leader of the ARDE, was involved in drug trafficking. The informant had complained that Pastora was making huge profits, but that none of the money was going to the Contra movement. The informant had related that Pastora, once a member of the Sandinista government, was now allied with Nicaraguan Minister of Interior Thomas Borge in drug trafficking activities, and was using cocaine laboratories in Nicaragua. The informant had claimed that, although Pastora and his associates had been totally corrupted by the drug trade, the Contras based in Honduras had not yet been. Everett concluded by noting that allegations concerning Contra links to drug trafficking, although unsupported by any evidence he could find, would continue to surface because traffickers who had been arrested would try to avoid prosecution with claims of CIA authorization. Several years later, information about drug trafficking at Ilopango Airport arose again. According to a cable from the U. Castillo told Bustillo that the DEA had received similar information, but Castillo noted that DEA lacked hard evidence because it had not been able to work at Ilopango. According to the State Department cable, Bustillo said he would do a thorough investigation of narcotics-related activity at Ilopango and also seek to transfer LTC Koenigsberg out of the air force as part of normal rotations. Bustillo took this allegation relating to Koenigsberg and narcotics trafficking to Minister of Defense General Vides Casanova. When General Vides confronted Koenigsberg, he denied all charges and demanded to know the evidence against him. Bustillo was called in and asked to provide proof of the allegations. He was unable to provide any, other than rumors and the information from Castillo. To back up his charge, Bustillo asked the U. Embassy for whatever evidence the U. Government had regarding the involvement of Koenigsberg in drug trafficking. The Embassy reported that Castillo had given Bustillo the impression that the DEA was prepared to provide assistance to the Salvadorans, including the assignment of DEA personnel to investigate drug trafficking at Ilopango. The Embassy endeavored to give Bustillo the support he needed. Its cable noted: 'In view of Castillo's remarks to Bustillo, Embassy assumes that DEA must have some concrete evidence even if it is not up to judicial standards to support that charge the Air Force officers, including LTC Koenigsberg, are involved in drug trafficking. In February , the CIA Station in El Salvador sent a cable to the DEA with additional information indicating that the Panamanian Miguel Antonio Rodriguez, a suspected drug trafficker, was using Ilopango to repair his aircraft; this seemed suspicious because of the high cost of repairs in El Salvador. Stia's cable to DEA Headquarters noted:. On the surface, it would appear as the Station in San Salvador has taken a more active stance in providing drug information to DEA and relations continue to be good. The fact remains, however, that Guatemala DEA cannot develop the most important information, that relating to those allegations and intelligence in regards to Ilopango Air Force Base. The results of that meeting will 'tell the story. Stia also noted in his report that, in March , a confidential source had relayed information from a subsource close to Salvadoran Air Force officers at Ilopango. The subsource was at a party of officers when the subject of General Bustillo's drug investigation had come up. Our search of DEA files found no additional information concerning this allegation. Stia's cable went on to report that a complicating factor in the DEA's investigation was the hostility of some Embassy personnel toward Castillo, who had gained a reputation as a man who is always 'digging up things. Stia also imposed 'more stringent reporting procedures' on Castillo. We found no additional cables describing the results of this investigation or deTriquet's and Castillo's attempts to gain access to Ilopango. DeTriquet told the OIG what he recalled happening, however. He explained that he had been detailed to Guatemala in , and while he was there, a reliable informant had told Stia that unidentified drug dealers were transporting cocaine through hangar five at the Ilopango air base in El Salvador, using pilots associated with the Contras. DeTriquet said that he and Castillo traveled to El Salvador to investigate the allegation. They did not have a problem getting on the military side of the air base, but a Salvadoran security officer had denied them access to hangar five, which deTriquet believed contained CIA equipment. DeTriquet noted that he and Castillo had not identified themselves as DEA agents, but had tried a ruse to gain access, which had been unsuccessful. DeTriquet and Castillo had then gone to the U. After speaking with the COS, they had not pursued the allegation any further. Castillo went back to Guatemala, and deTriquet stayed in El Salvador for approximately three months working with the Salvadoran police to assess if the DEA needed to establish an office there. During these three months, the allegation of drug activity at the Ilopango air base never resurfaced. He said, despite the cable from Stia, he recalled no further meetings with Bustillo. DeTriquet said that while he was assigned to El Salvador, he never received information that the Contras or the CIA were involved in drug activity. He speculated that perhaps some of the Contra pilots had taken advantage of a situation and become involved in drug activity, but stated that he did not believe that either the Contras or the CIA had any such involvement. Embassy personnel, concerning his allegations about drug trafficking on behalf of the Contras and the CIA. He first met Castillo when he arrived at the office in Reina had handled all four countries prior to Castillo's arrival. Castillo was assigned responsibility for Guatemala and El Salvador when he started in Reina said that he and Castillo occasionally worked together, but because of the shortage of personnel assigned to the office, each usually worked alone in his assigned areas. Reina said he did become familiar with Castillo's style. He noted that Castillo was quick to jump to conclusions before conducting an adequate investigation, and that Castillo treated the leaders of foreign governments with disrespect. Reina recalled hearing from Castillo that the Salvadoran government had been enthusiastic about Castillo's investigation of Grasheim, but Castillo later became annoyed as Salvadoran interest declined. However, he said he did not recall being told by anyone, including Castillo, that the airport was being used to transport drugs. Reina said that while he was stationed in Guatemala City, he never worked any cases jointly with the CIA, but on at least one occasion, he shared an informant with the CIA. He said that no one ever asked him to back off of any investigation. Reina recalled that Stia, the DEA Country Attache in Guatemala, went out of his way to assist Castillo even after allegations of unprofessional conduct had surfaced against Castillo, and that Stia was always supportive of Castillo. Although Reina was not personally aware of allegations that the CIA had asked Stia to back off the Grasheim investigation, Reina heard from an informant that Castillo had told the informant that the CIA had asked Stia to back off the investigation. Reina said the informant did not cite a reason for the request by the CIA. Holifield recalled that Castillo had told him that the CIA and the Contras were involved in the drug trade to raise money for the Contras, but Castillo had never provided any proof to substantiate this claim. Holifield said that Castillo often made allegations without adequate proof on a range of matters. Holifield also noted that he was the controlling agent for STG6 in , and that this informant had never indicated that the Contra resupply operation or the CIA were involved in illicit drug distribution. Holifield also recalled that Stia and Castillo had a good working relationship, and that Stia went out of his way to help Castillo. Holifield also said that the CIA had never asked him to back off of any investigations, and that he was not aware of Stia's being asked to do so either. Although he had not been involved in the Grasheim case, he recalled Castillo's allegations that Grasheim was running drugs and weapons for the Contras. He said that Castillo had not seemed particularly concerned when the raid on Grasheim's house turned up only a small amount of drugs. Von Briesen said, 'frankly speaking, the Grasheim case was not considered a big case. No one -- including informant STG6, with whom Von Briesen worked -- ever suggested to him that hangars four and five were being used to transport drugs or that the CIA or the Contra resupply operation at Ilopango was smuggling drugs into the United States to raise money for the Contras. Castillo would often assert his general belief that the Contras were involved in drug smuggling, but never offered any basis for that belief. Von Briesen said he heard the allegation concerning the CIA and the Contra drug involvement only after reading Castillo's book, which he said definitely embellished facts about which Von Briesen had personal knowledge. Von Briesen said he had never been asked by the CIA to back off of any investigation, and that the CIA had actually provided information that resulted in some of the drug seizures by the DEA's Guatemala office. However, he noted that he had not been responsible for daily oversight of activity in Latin American countries, which was the job of staff coordinators working under him. On Martsh's only trip to Guatemala during this period, no one mentioned any allegations of a tie between the CIA or the Contras and drug trafficking. Embassy in Sarajevo, was the narcotics coordinator at the U. Embassy in El Salvador from until She told the OIG that, while assigned to the Embassy in El Salvador, she monitored the narcotics unit of the Salvadoran police department and gathered narcotics intelligence information from U. Castillo briefed her on several occasions concerning drugs in El Salvador, and made general allegations that the Contras were involved in narcotics trafficking. But he never gave her any specific information detailing trafficking patterns or specific individuals who may have been involved in trafficking, and she had never heard these allegations from anyone else. Elmore recalled that Castillo had often made allegations that later proved to be without merit. She noted that it had been rumored that some of the Salvadoran military pilots were involved in drug trafficking, but that no evidence had been developed to substantiate that rumor. Elmore said that Castillo never suggested that the CIA and the Contras were conspiring to traffic in drugs, or that he had received pressure from anyone to prematurely close his investigation into the alleged trafficking at Ilopango. Previously, he was assigned to Guatemala. He stated that Castillo had never mentioned anything to him about drug trafficking involving the Contras. He characterized the allegations of CIA and Contra drug trafficking as 'pure bullshit. He said that he knew the CIA Chief of Station well enough to know that he also would have immediately acted on any such information, had he received it. Castillo has alleged that a CIA officer told him that the only way the Contras could fund their military operations was to sell drugs, and that the CIA employee asked him to halt his drug investigation at Ilopango. He said that he was a CIA officer in Guatemala from until , and, in that capacity, made a number of trips to Ilopango. He said that he had not been aware of any drug trafficking by Contra pilots at the airport. He recalled that Castillo had informed him that he was investigating drug activity at the Ilopango Airport, but Castillo had never mentioned any subjects, and had never discussed any issues relating to the Contras. Castillo has alleged that the CIA took away the informant -- STG6 -- whom he was using in connection with his investigation into Contra drug trafficking at Ilopango in order to obstruct that investigation. When interviewed by the OIG, Calves recalled that he developed an informant who had assisted him in closing down a Chinese smuggling ring operating out of Ilopango Airport, and that he had put the informant in contact with Castillo when the informant discussed allegations of drug trafficking at the airport. One day, after the informant had begun working with Castillo, the informant visited Calves and said that 'your people' were involved in drug smuggling. Calves was unsure whether the informant had been referring to U. Castillo later informed Calves that the informant had related the same information to him, but the informant had also announced that he could not work with Castillo any longer. Because STG6 had neither provided any information resulting in a substantial seizure of drugs or property, nor had given any reason to believe that he had the immediate potential to do so, Stia honored the Chief of Station's request. Stia noted that had STG6 been active, he would not have deactivated him. Further, Stia said if there had been a conflict between the DEA and the CIA concerning an informant, the ultimate decision would been decided by the administrators of the two agencies. He continued providing information to the DEA about drug trafficking by pilots using Ilopango, although the reports did not indicate that they were Contra pilots. Reports in his DEA file reference planned undercover purchases from the Contra pilots, but the files did not indicate that any occurred. The Chief of Station in El Salvador also declined to be interviewed. Although Castillo may have had reason to feel aggrieved at the loss albeit temporary of an informant,we did not find that the CIA asserted its authority over the use of STG6 in order to obstruct Castillo's inquiries at Ilopango, particularly since the informant was subsequently turned over to the DEA.

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