US signed deal with Mexican drug cartel to 'operate their drug business without interference'

...according to Sinaloa cartel leader. Some US officials deny it.

• Sinaloa cartel leader claimed US DEA agents gave him, cartel kingpin Chapo Guzman, and other Sinaloa leaders "carte blanche" to "operate their drug business without interference," as long as they snitched on other cartels

• Prosecutors admitted the US had a signed cooperation agreement with a Sinaloa cartel official: lawyer Humberto Loya-Castro

President Trump has named eight killer drug cartels to the list of foreign terrorist organizations.

That’s part of his effort to secure the US southern border and cut down on trafficking of fentanyl and other illegal drugs that have been distributed in record proportions in the past four years.

Trump’s executive order names the infamous Tren de Aragua in Venezuela; Mara Salvatrucha (MS-13) based in El Salvaor; and Cártel de Sinaloa, Cártel de Jalisco Nueva Generación, Cártel del Noreste (formerly Los Zetas), La Nueva Familia Michoacana, Cártel de Golfo (Gulf Cartel), and Cárteles Unidos, all in Mexico, as terrorist organizations. That designation opens up a host of new enforcement actions and penalties for those dealing with the criminal groups.

But you might be surprised to know that the US admits having a signed cooperation agreement with at least one of these groups: Mexico’s Sinaloa Cartel.

I was surprised this story didn’t receive more attention when I first reported it in 2011.

At the time, I was breaking shocking news on the “Fast and Furious” controversy where the US was actually engaged in secret operations to facilitate the delivery of assault rifles and other weapons into the hands of Mexican cartels.

Many sources and law enforcement officials were telling me that it was an open secret in their corners that the US cooperated with the Sinaloa cartel in order to supposedly get information on other cartels that we considered worse, such as the Zetas. We were even allowing the Sinaloa cartel to traffic drugs in America— or so the story was told.

While it sounds unbelievable, there seemed to be confirmation that came in a court case in Chicago against a key Sinaloa cartel member, the son of a top Sinaloa leader.

Vicente Zambada-Niebla oversaw drug running on a massive scale into the US, according to prosecutors. But when he was captured and facing trial in Chicago, Illinois, he claimed he had immunity from prosecution because he and other Sinaloa cartel leaders had a deal with the DEA: They could operate their business uninterrupted as long as they turned evidence against a competing cartel.

Zambada claimed that over the course of the cartel’s agreement with the Drug Enforcement Administration (DEA), the Sinaloa cartel kept up their end of the bargain, turning over a lot of evidence.

In court documents, prosecutors admitted the US had a signed cooperation agreement with a different Sinaloa cartel lawyer Humberto Loya-Castro. Starting as early as 2004, Loya passed valuable information to the DEA from cartel leaders including Zambada. In return, Zambada claims, the US dismissed a major case against Loya and agreed to "not ... interfere with" the cartel's "drug trafficking" or actively prosecute their leadership.

Elements of Zambada’s subsequent prosecution were shrouded in secrecy. In 2014, a plea deal was made public. Zambada pleaded guilty to smuggling tons of drugs and agreed to forfeit $1.37 billion the US government. He got a reduced sentence of 15 years in prison.

However, in 2018, another plea agreement was filed and, in return for Zambada’s cooperation, the US recommended the judge go easy on sentencing, and allow Zambada and his family to permanently stay in the US.

To me, the real news here was the US admitting it had a signed cooperation agreement with the Sinaloa cartel.

It wouldn’t be the first time the US worked with criminals it was supposedly fighting, publicly. Panamanian dictator Manuel Noriega was once on the CIA's payroll. And in Colombia, the US worked with select cartels, allowing them to continue drug smuggling operations in the US as long as they helped in destroying the more dangerous Cali and Medellin cartels.

Read on for the transcript from the original report in 2011.

CBS News by Sharyl Attkisson

Oct. 26, 2011

A Mexican drug suspect awaiting trial in Chicago is making a startling claim. He insists he can't be prosecuted because he worked as an informant and had a secret immunity deal with the U.S. government.

Prosecutors say Vicente Zambada-Niebla oversaw drug running on a massive scale into the U.S. But now, from behind bars at a maximum security prison in Chicago, he's making his own explosive accusations -- that U.S. government agents have been aiding Mexico's infamous Sinaloa cartel -- even tipping off leaders on how to avoid capture.

CBS News investigative correspondent Sharyl Attkisson reports that Zambada's court filings claim federal Drug Enforcement Administration agents gave him, cartel kingpin Chapo Guzman, and other Sinaloa leaders "carte blanche" to "operate their drug business without interference," as long as they snitched on other cartels. For years, Zambada's attorney argues, Sinaloa leaders helped "authorities capture or kill thousands of rivals." Their chief rivals are the Zetas, considered the most vicious and ruthless of all.

Phil Jordan used to head the DEA's Center for Drug Trafficking Intelligence, called "EPIC," in El Paso. He says he doesn't buy Zambada's claim that the DEA promised immunity.

Jordan told CBS News, "We do not have the power to offer immunity."

But in court documents, prosecutors do admit the U.S. had a signed cooperation agreement with a different Sinaloa cartel leader.

That agreement was with Sinaloa cartel lawyer Humberto Loya-Castro. Starting as early as 2004, Loya passed information to the DEA from cartel leaders including Zambada -- the one now on trial. In return, Zambada claims, the U.S. dismissed a major case against Loya and agreed to "not ... interfere with" the cartel's "drug trafficking" or actively prosecute their leadership.

Jordan says any agreement with a cartel leader is controversial, but may be deemed necessary.

He said, "It's probably a matter of trying to get inside or closer intelligence to the whole Mexican federation, as we call it."

Jordan points out that Panamanian dictator Manuel Noriega was once on the CIA's payroll. And that in Colombia, the U.S. worked with select cartels, allowing them to continue drug smuggling operations in the U.S. as long as they helped in destroying the more dangerous Cali and Medellin cartels.

As to whether the government has similar plans in Mexico, they're not saying, but this case, Attkisson reported, raises the question.

Prosecutors say even if federal agents did promise Zambada immunity -- which they deny -- it's unenforceable.

Link to the CBS article is here.

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