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Of ! Game!Changers!2014! ! " " " " " " " " GAME"CHANGERS" " Tracking"the"Evolution"of"Organized"Crime"in"the"Americas" " 2014" " " " " " " 1" ! www.InSightCrime.org! ! Game!Changers!2014! ! Table&of&Contents& I.#Introduction# 4! II.#‘Narcosur’:#A#New#Drug#Trafficking#Dynamic#in#South#America# 6! A!Closer!Look!at!Brazil=Bound!Drug!Networks! 7! Paraguay’s!Top!Anti=Drug!Agent!Talks!Marijuana!Trade! 10! Bolivia:!the!New!Hub!for!Drug!Trafficking!in!South!America! 13! 10!Reasons!Bolivia!Is!a!Potential!Haven!for!Organized!Crime! 19! Career!of!Paraguay!Crime!Boss!Highlights!LatAm’s!Changing!Drug!Trade! 25! III.#Peace#Negotiations#with#Criminal#Groups#Break#Down# 28! The!Reality!of!the!FARC!Peace!Talks!in!Havana! 29! Colombia!Peace!Process!Suspended:!Action!of!Rogue!FARC!Unit?! 34! Mass!Graves!Burying!the!Truth!about!El!Salvador!Gang!Truce! 37! 2!Divergent!Views,!on!El!Salvador!Gang!Truce,!1!Sad!Conclusion! 41! El!Salvador!Gangs!and!Security!Forces!Up!the!Ante!in!Post=Truce!Battle! 45! IV.#Guerrilla#Groups#and#the#Drug#Trade# 48! US!Indicts!Shining!Path!Rebels!as!Drug!War!Focus!Shifts!to!Peru! 49! The!FARC!and!the!Drug!Trade:!Siamese!Twins?! 54! Paraguay’s!Guerrillas!Split,!Dissident!Group!Replicates!Colombia!Model! 58! Paraguay’s!Guerrillas!Producing!Drugs:!Anti=Drug!Chief! 61! Terrorism!and!Crime!in!the!Americas!–!‘It’s!Business’! 63! V.#An#International#Spotlight#on#State#Violence# 69! The!Disappeared!of!Iguala,!Mexico:!A!Crime!Foretold! 70! Police!Violence!Continues!to!Plague!Brazil:!Report! 75! ‘Two!Down’:!Video!of!Brazil!Police!Killings!Raises!Disturbing!Questions! 77! Mexico!Government!Downplays!Allegations!of!Army!Massacre! 82! Venezuela’s!Leftist!Collectives:!Criminals!or!Revolutionaries?! 84! VI.#The#Decapitation#and#Fragmentation#of#Organized#Crime# 89! ‘Chapo’!Guzman!Capture!Provides!Glimpse!of!Mexico’s!Past,!Future! 90! The!Future!of!the!BACRIM!and!Post=Conflict!Colombia! 94! Evaluating!the!Zetas’!Legacy!in!Mexico! 98! Mexico’s!Violent!Juarez!Cartel!Capo,!Almost!a!King,!Now!a!Prisoner! 102! Colombia’s!‘Madman’!Pleads!Guilty!in!US! 105! VII.#The#Intersection#of#Sports#and#Crime#in#Latin#America# 107! 10!Ways!Soccer!and!Organized!Crime!Mix!in!Latin!America! 108! The!Messi!Scandal:!From!Charity!Soccer!to!Money!Laundering!Accusations! 113! Violence,!Power,!Soccer!and!Drugs:!Argentina’s!Barras!Bravas! 118! How!a!Good!Soccer!Team!Gives!Criminals!Space!to!Operate! 123! 2" ! www.InSightCrime.org! ! Game!Changers!2014! ! VIII.#(Almost)#a#New#Drug#Policy#Paradigm# 126! US!Marijuana!Reform:!Impact!in!Latin!America?! 127! Guatemala’s!Missed!Opportunity!on!Drug!Policy!Reform! 129! Closer!to!Global!Drug!Policy!Reform?!Not!So!Fast! 132! The!Changing!Face!of!São!Paulo’s!‘Crackland’! 135! IX.#Organized#Crime#and#the#Mafia#State# 142! Justice!and!the!Creation!of!a!Mafia!State!in!Guatemala! 143! The!’Tennis!Shoe!King’!Who!Became!Guatemala’s!Gentleman!Lobbyist! 155! The!War!of!Paz!y!Paz:!The!Revolution! 168! Murder!of!Colonel’s!Son!Raises!Questions!Over!Role!of!El!Salvador’s!Military! 178! El!Salvador:!A!Murder,!A!Bogus!Investigation,!An!Army!Cover=Up?! 186! X.#What#to#Expect#in#2015# 191! The#InSight#Crime#Foundation# 195! Copyright# 196! ! 3" ! www.InSightCrime.org! ! Game!Changers!2014! ! I.&Introduction& Welcome"to"InSight"Crime’s"Game"Changers"for"2014,"where"we"highlight"the"year’s"most" important"trends"in"organized"crime"in"the"Americas." This"year"was"one"of"dashed"hopes."In"the"same"year"that"Mexico"celebrated"the"capture"of" the"world’s"most"wanted"drug"trafficker,"Joaquin"“El"Chapo”"Guzman,"it"also"had"to"accept" the"horror"that"came"with"a"smaller,"splinter"criminal"group"executing"43"protesting" students"and"burning"their"bodies"to"destroy"the"evidence."The"group,"known"as"the" Guerreros"Unidos,"was"believed"to"be"acting"in"concert"with"the"local"police,"a"local"mayor" and"his"politically"ambitious"wife,"in"what"is"a"blatant"example"of"the"regular"collusion"that" exists"between"local"authorities"and"criminal"organizations"throughout"the"region." The"death"of"the"students"in"Mexico"shattered"the"façade"created"by"the"administration"of" President"Enrique"Peña"Nieto"that"by"capturing"the"country’s"most"wanted"figures"WW"which," in"addition"to"El"Chapo,"included"the"heads"of"the"Juarez"Cartel"and"the"Beltran"Leyva" Organization"(BLO)"WW"and"largely"ignoring"institutional"reform,"it"could"quell"Mexico's" criminal"problem."Instead,"the"resulting"atomization"of"large"criminal"organizations"into" smaller,"more"volatile"groups"that"depend"on"local"revenue"streams,"has"led"to"bloody" battles"over"the"territory"they"need"to"keep"the"money"flowing."The"Guerreros"Unidos,"for" instance,"were"once"a"part"of"the"BLO." This"fragmentation"is"a"regional"phenomenon."From"Colombia"to"Brazil"to"Guatemala,"large," hierarchical"structures"are"now"small,"amorphous"cells,"working"in"networks,"which"are" responsible"for"much"of"the"violence"that"has"given"Latin"America"and"the"Caribbean"the" highest"murder"rates"in"the"world."They"are"thriving,"in"part,"because"of"the"increase"in"the" domestic"consumption"of"illegal"narcotics."The"US"market,"while"still"the"biggest"consumer" of"drugs,"is"being"challenged"by"growing"drug"use"in"countries"like"Brazil,"Argentina," Colombia"and"Mexico,"to"name"but"a"few,"and"these"new"markets"are"giving"birth"to"new" criminal"syndicates"that"are"feeding"this"violence." Lastly,"the"Mexico"case"highlighted"a"stark"reality"about"security"forces:"that"they"are"at"the" heart"of"much"of"the"violence."This"has"been"a"central"feature"of"the"Colombian"civil"conflict" and"the"same"is"true"in"Brazil."Brazil"continues"to"implement"its"once"vaunted"citizen" security"project,"the"UPP,"although"belief"that"the"program"is"a"panacea"is"now"waning," especially"amidst"continuing"concern"over"the"police’s"repressive"tactics."Not"even"cameras" attached"to"the"police’s"shirt"pockets"and"fixed"to"the"inside"of"official"vehicles,"it"appears," can"impede"the"police"from"doing"what"they"have"been"doing"for"years:"executing"suspects." 4" ! www.InSightCrime.org! ! Game!Changers!2014! ! Brazil"also"fell"under"the"spotlight"this"year"as"it"hosted"the"World"Cup."Lost"in"the" pageantry"and"spectacular"performances"of"the"players"was"the"fact"that"soccer"remains" central"to"organized"crime."From"owners"of"local"teams"in"the"smallest"villages"to"the" largest"club"teams"and"their"most"celebrated"players,"criminal"groups"use"soccer,"and"the" social"and"political"capital"it"generates,"to"make"huge"profits"and"continue"their"illicit" operations"in"relative"impunity." Efforts"to"defuse"conflicts"with"large"politicalWcriminal"organizations"also"faltered"this"year." The"peace"process"in"Colombia"between"the"government"and"the"country’s"insurgencies" stumbled,"after"guerrillas"from"the"nation’s"largest"rebel"group,"the"Revolutionary"Armed" Forces"of"Colombia"(FARC),"kidnapped"an"army"general."The"FARC,"the"region’s"oldest"and" arguably"most"criminalized"insurgency,"now"seems"to"be"splitting"into"pieces,"some"of" which"may"adhere"to"their"Secretariat’s"move"towards"peace"and"demilitarization,"and" some"of"which"may"break"away"and"form"their"own"criminal"organizations." El"Salvador’s"governmentWbrokered"truce"with"the"two"most"powerful"street"gangs,"the" MS13"and"the"Barrio"18,"also"unraveled"as"a"new"administration"took"power"and"sidelined" the"efforts."For"many"who"saw"the"truce"as"a"farce"and"believe"the"gangs"could"develop"into" transnational"criminal"organizations"(TCOs),"the"death"of"the"truce"was"a"relief."But"for" those"seeking"a"reprieve"from"the"resurging"violence"in"that"country"WW"including"an" increasing"number"of"attacks"on"security"forces"and"a"surge"in"unaccompanied"minors"to" the"United"States"WW"there"are"few"answers." The"one"silver"lining"can"be"found"in"the"slow"move"towards"a"new"drug"policy"paradigm," one"that"so"far"decriminalizes"drug"use"while"continuing"to"criminalize"those"who"create" illegal,"dangerous"and"destabilizing"criminal"structures."The"region"is"not"exactly"poised"to" overturn"a"century"of"international"legal"precedent,"but"it"is"taking"steps"to"measure"just" what"levers"it"can"pull"and"push"in"order"to"slow"the"criminal"dynamics"that"have"helped" make"the"Americas"the"most"violent"place"on"the"planet." Thank"you"for"reading"us,"following"us"and"supporting"us."We"are"looking"forward"to" another"productive"year"in"2015,"monitoring,"analyzing"and"investigating"organized"crime" and"government"efforts"to"combat"it." W"Steven"Dudley"and"Jeremy"McDermott,"InSight"Crime"CoWdirectors" " " 5" ! www.InSightCrime.org! ! Game!Changers!2014! ! II.&‘Narcosur’:&A&New&Drug&Trafficking&Dynamic&in&South&America& Traditionally,"transnational"drug"trafficking"routes"pointed"north"from"Colombia,"through" Central"America"or"the"Caribbean,"and"towards"the"United"States,"the"world’s"principal" drug"consumer."In"recent"years,"however,"a"new"dynamic"has"emerged"in"Latin"America," fueled"by"growing"domestic"demand"for"narcotics"and"lucrative"drug"markets"in"Europe" and"Asia."" An"investigation"conducted"by"the"Brazilian"newspaper"Jornal"Extra"in"2014"found"that" traffickers"from"Peru,"Bolivia,"Brazil,"and"Paraguay"had"formed"the"largest"drug"trafficking" alliance"in"the"world."The"publication"dubbed"the"network"WW"which"allegedly"involves"over" 30,000"individuals"WW"“Narcosur”"after"the"Mercosur"trading"bloc."""" The"new"dynamic"is"driven"in"part"by"demand"for"drugs"in"Brazil,"home"to"the"world’s" second"largest"market"for"cocaine,"and"Argentina,"which"has"seen"a"rapid"growth"in" domestic"consumption."Domestic"drug"markets"in"Chile,"Peru,"Colombia"and"Ecuador"also"
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