12-10-04 -- Isaza, Fermin Ovalle -- Guilty Plea -- News Release

Former Colombian Congressman and Doctor Extradited to the U.S. Pleads Guilty to Conspiracy to Commit Money Laundering

NEWARK - A former Colombian congressman and medical doctor, who was extradited to the United States, pleaded guilty today to conspiracy to launder approximately $806,823 in drug proceeds, U.S. Attorney Christopher J. Christie announced.

Fermin Ovalle Isaza, 45, entered his plea before U.S. District Judge William H. Walls, who scheduled sentencing for March 22, 2005, at 10 a.m.

As part of Ovalle Isaza's plea, he has agreed not to contest the forfeiture of any property derived from the scheme, including the $806,823 that was laundered by him and his co-conspirators.

Ovalle Isaza was among more than two dozen people charged in 2002 as part of an undercover operation dubbed Southern Approach. The defendants were charged in seven indictments for their respective roles in the movement and laundering of millions of dollars in drug proceeds through New Jersey. (Go to www.usdoj.gov/usao/nj/publicaffairs for separate news releases on Dec. 16, 2002 from the U.S. Attorney's Office and the Colombian government.)

Several other guilty pleas have been entered in the case and many more prosecutions are pending.

Ovalle Isaza arrived in the United States on extradition on Sept. 12. He remains in federal detention pending sentencing.

At his plea hearing, Ovalle Isaza admitted that from February 1999 through August 2000, he agreed to arrange for the secret transfer of $806,823 in drug proceeds from New Jersey to various bank accounts that were operated by other co-conspirators.

The conspiracy consisted of a two-step transfer process. First, Ovalle Isaza admitted, he and other co-conspirators arranged for drug proceeds to be delivered by couriers to other individuals within the United States. Once delivery of the money was confirmed, Ovalle Isaza provided the names and bank accounts of other co-conspirators, where the drug proceeds were wire-transferred pursuant to Ovalle Isaza's written instructions.

Ovalle Isaza admitted that, once the proceeds were successfully laundered, he received facsimile receipts and/or confirming telephone calls that acknowledged the successful transfer of the drug proceeds.

Ovalle Isaza pleaded guilty to one count of conspiracy to commit money laundering, according to Assistant U.S. Attorney Chris Gramiccioni, who prosecuted the case. Ovalle Isaza faces a maximum prison term of 20 years.

Under U.S. Sentencing Guidelines, Judge Walls will determine Ovalle Isaza's actual sentence based upon a formula that takes into account the severity and characteristics of the offense and the defendant's criminal history, if any. Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Joseph Billy, Jr., in Newark, and Special Agents of the IRS Criminal Investigation section, under the direction of Patricia J. Haynes, Special Agent in Charge, with developing the case that led to charges against Ovalle Isaza.

The Government is represented by Assistant U.S. Gramiccioni, of the U.S. Attorney's Criminal Division in Newark.

-end-

Defense counsel: Martin Schmukler, Esq. New York