Huge Dope Racket Cleaned Out By U.S. Authorities

Bay of Plenty Beacon, Volume 14, Issue 37, 12 September 1949, Page 5

Huge Dope Racket Cleaned Out By U.S. Authorities

The United States Federal .Narcotics Bureau claims to have smashed a huge drug-smuggling ring—• the biggest in the bureau’s experience.

It alleges the ring last year smuggled £1,500,000 worth of illicit cocaine into U.S.A. from Peru.

This represents an estimated 200 lb of pure cocaine—more than a ton of dope when processed for the use of addicts. The bureau claims to have uncovered an attempt by the ring to extend its activities by linking with former New York vice king, Charles (Lucky) Luciano in Italy. (Luciano was deported from U.S.A. to his native tlaly in 1946, the following year was deported from Cuba to Italy). Bureau investigators arrested wealthy Peruvian Eduardo rezo, and charged him with having conspired to smuggle cocaine from Peru.

In Peru, his wife Carmen and 60 others suspected of being implicated in the alleged ring were arested. Assistant U.S. Attorney-General Joseph Martin said Balarezo, his wife and three children went to Peru last year in the Peruvian warship Callao. They took £20,000 and a large quantity of ammunition intended for use by the Aprista Party in a revolution.

Martin said that later the Peruvian Government decided to restrict cocaine production. Martin would not say whether Balarezo had seen Luciano or brought drugs from Italy. He alleged Balarezo had operated his smuggling ring by giving a trusted seaman a note to his wife in Peru.

She arranged for delivery of cocaine to the seaman, who received £3OO when he delivered the signment in New York. Balarezo got a job as steward on the U.S. liner La Guardia to bring heroin from Italy.