Notorious drug smuggler Paul Edward Hindelang amassed a fortune worth hundreds of millions of dollars by smuggling cannabis from Colombia to the United States in the 1970s.
He pioneered the so-called ‘mother ship’ technique in which he would load huge freight ships full of the drug in South America before the cargo was unloaded onto smaller vessels and then placed on recreational boats before being distributed across the US.
He was arrested following a major US law enforcement operation in 1981 and, following a plea agreement with American authorities, was jailed for ten years and forfeited $50 million to the United States.
But, unbeknownst to authorities at the time, Hindelang moved part of his criminal fortune to an associate in Costa Rica who deposited the cash into Swiss accounts before it was transferred to Jersey.
Since 2000, Jersey’s Law Officers’ Department and various Attorneys General have worked with US authorities on ‘Operation Cash Extraction’ to seize the hidden funds worth just less than £6 million, hidden in a complicated web of Jersey trusts.
Now, following a ceremony in Washington DC this week, it has been agreed that Jersey will keep half of the sum – about £2.8 million.
The money will be held in the Island’s Criminal Offences Confiscation Fund. About £8 million from the fund was used to build the £24 million police station on Route du Fort, which opened in March.
Sigal Mandelkar, the US Treasury Department’s Under Secretary for Terrorism and Financial Intelligence, said the case was testament to the hard work of the men and women of law enforcement both in the United States and Jersey.
He added: ‘Effective international co-operation to combat financial crime is making it more difficult for criminals to hide and reap the rewards of their ill-gotten gains. The Treasury Department commends the Attorney General from the Isle of Jersey for their tremendous partnership in combatting transnational financial crime.’
