Tracks in the Snow
by Nick Schou
LA Weekly!
May 22, 1997

                         Of the several lines of attack mounted
                         against the San Jose Mercury News' August
                         1996 Dark Alliance series linking
                          Nicaraguan contras to L.A. crack wholesaler
                          Ricky Ross, conservative critics and
                          mainstream reporters have agreed on one in
                          particular  that investigative reporter Gary
                          Webb failed to deliver on the implied
                          connection between the cocaine trafficking
                          operation and the U.S. government or its
                          intelligence agencies.

                          Nowhere in his reporting was Webb able to
                          produce documentation of official sanction 
                          no back-channel memo acknowledging CIA
                          support for Ross' Nicaraguan supplier, Oscar
                          Danilo Blandon.

                          But even as the Mercury News itself steps
                          back from the sensational series it published
                          last year (see sidebar next page), new
                          sources and documents developed over the past
                          three months tie a pivotal figure in the
                          Blandon smuggling operation to clandestine
                          efforts to arm the Nicaraguan contras.

                          The key figure here is not Blandon, who was
                          an admitted contra supporter and fund-raiser,
                          but whose ties to the U.S. intelligence
                          community have proved difficult to establish.
                          Moreover, while Blandon's history of major
                          drug trafficking is undisputed, he has proven
                          consistently unreliable and contradicted his
                          own sworn testimony on his work to support
                          the contras.

                          Instead, this new link between the
                          Blandon/Ross drug smuggling ring and American
                          covert operations runs through Ronald J.
                          Lister, a former Laguna Beach police officer
                          who worked closely with Blandon between 1982
                          and 1988. He is acknowledged by Blandon as
                          the source of a wide array of weapons and
                          surveillance equipment Blandon then passed on
                          to Ross; the pair traded ownerships in
                          properties used as drug drops; and police
                          records show that Blandon was listed on a
                          business card as vice president of Mundy
                          Security Group, a consulting firm Lister
                          started.

                          In addition, informants told law enforcement
                          investigators in 1986 that Lister had
                          transported hundreds of kilos of cocaine 
                          and millions of dollars in cash  for the
                          smuggling ring. Last year, Lister told
                          sheriff's investigators that he had moved $50
                          million to $60 million in cash for Blandon
                          from L.A. to banks in Miami.

                          It was Lister who first raised the specter of
                          U.S. intelligence involvement when,
                          confronted during a search of his house by
                          L.A. County sheriff's deputies in 1986, he
                          declared, according to the deputies' report,
                          that he worked with the CIA and [that] his
                          friends in Washington weren't going to like
                          what was going on.

                          Lister never did say what that work for the
                          CIA was, and when questioned by L.A. County
                          sheriff's investigators last year, he laughed
                          off the notion he had been a spy. Lister
                          acknowledged that he was a contra
                          sympathizer, but said, It wasn't like I was
                          doing it for the CIA or anyone else. Pressed
                          for details, Lister replied, If you want me
                          to give you an example of how I helped [the
                          contras], there's times I went to Miami. I
                          sat and talked to them about security, and I
                          showed them a particular type of paint that
                          they could use, that at that time was a fire
                          retardant, and showed them some type of
                          equipment they could buy that would be good
                          for the field et cetera, et cetera, like
                          that.

                          It was a strange comment, and in light of
                          subsequent investigation by the Weekly, an
                          understatement. Throughout the mid-1980s,
                          Lister maintained a series of relationships
                          with characters who worked in a twilight
                          world on the fringes of U.S. intelligence.
                          One of those operatives, speaking here on the
                          record for the first time, asserts that
                          Lister was directly involved in supplying
                          arms and ammunition to the U.S.-backed
                          contras who were fighting to topple the
                          Sandinista government in Nicaragua.

                          It was the sort of project that required
                          high-level clearances and connections inside
                          the federal government. It was the primary
                          project of the U.S. intelligence
                          establishment at the time. And it was one of
                          Lister's enterprises at the time he was a
                          principal in the Blandon/Ross drug ring.

                          The new source attesting to Lister's work
                          with the contras is Timothy Lafrance, a San
                          Diego dealer in automatic and specialty
                          weapons who has manufactured guns for use in
                          Hollywood productions such as Rambo and in
                          the TV show Miami Vice. In a recent interview
                          with the Weekly, Lafrance described Lister's
                          contra-support operation in detail.

                          Lafrance said the operation was carried out
                          at the direction of the CIA and under the
                          cover of an Orange County security consulting
                          company, the Newport Beach-based Pyramid
                          International Security Consultants, which
                          Lister founded in 1980. Pyramid, Lafrance
                          claimed, was a private vendor that the CIA
                          used to do things [the agency] couldn't do.
                          He also claims he became involved as a
                          weapons specialist, and even helped set up
                          production facilities to assemble contra
                          armaments outside the U.S. He said he made
                          several trips to Central America, two of them
                          with Lister, during the years the contra army
                          was in the field.

                          Lafrance was not eager to discuss his
                          involvement with Lister and the contra cause.
                          He was initially identified to this reporter
                          as a likely contact by Bo Gritz, the highly
                          decorated Green Beret who became disaffected
                          from his government and has launched his own
                          militia group, Center for Action. Reached by
                          telephone six months ago at the unlisted
                          number he uses at his gun shop, Lafrance
                          admitted knowing Lister and some of his
                          associates, but insisted that his name be
                          kept off the record. He refused to speak
                          about Central America and the contras, and
                          subsequent to the initial interview, refused
                          to return further phone calls. However, when
                          it was later learned that Lafrance had been
                          named in hearings on the Iran-contra
                          operation, and when he was informed that his
                          name was found in those records, he agreed to
                          tell more of his story. This time he spoke
                          openly about Central America.

                          Lafrance described one of his contra-support
                          trips with Lister in detail. He said he
                          became convinced the operation had official
                          sanction when he personally applied for a
                          temporary import-export license from the
                          State Department. It was for Pyramid, and it
                          came back approved in two days, said
                          Lafrance. Usually it takes three months.

                          The ostensible reason for the trip was that
                          Lister and Pyramid International were
                          negotiating to sell arms and specialized
                          equipment to Salvadoran government ministries
                          and officials of the military high command,
                          Lafrance said. We went down to Central
                          America with two giant boxes full of machine
                          guns and ammunition, he continued. To a
                          State Department official it looks very
                          legitimate on the outside  private
                          companies, et cetera. The cover was that we
                          were down there to provide security,
                          armor-proofing for vehicles, limos and homes.
                          My end was the weapons [and tactics
                          training], how to make a three-car stop if
                          you're shot at, how to use cars as shields.

                          We were housed by the Atlacatl Battalion,
                          said Lafrance, a reference to the elite,
                          U.S.-trained division that was the pride of
                          the Salvadoran military during the years of
                          civil war. They gave us the opportunity to
                          demonstrate our hardware.

                          But Lafrance said the real mission of the
                          Salvadoran trip was providing weapons and
                          equipment to the contra forces fighting from
                          bases in neighboring Honduras. The whole
                          idea was to set up an operation in El
                          Salvador that would allow us to get around
                          U.S. laws and supply the contras with guns,
                          said Lafrance. The smart way to do that was
                          to find a military base. To keep from
                          arousing suspicion, Lafrance claimed, all the
                          weaponry he brought to El Salvador also left
                          the country with him at the end of the trip.
                          It's much easier to build the weapons down
                          there, he explained, and that's eventually
                          what we did.

                          Lafrance told how the Pyramid International
                          team set up shop at a mass-transit center,
                          run by the military, in downtown San
                          Salvador. That's where we made the weapons,
                          he said. You could have 50 guys working in a
                          machine shop, and nobody would know about
                          it. From there, Lafrance claimed, the
                          weapons were transported to a Salvadoran
                          military airstrip in Morazon province. Then
                          they were airlifted to contra bases in
                          neighboring Honduras. We made almost all our
                          drops by helicopter, buzzing the treetops.

                          Asked to describe the key players working
                          with Lister in the Pyramid-contra scheme,
                          Lafrance named other figures who shared
                          various ties to U.S. intelligence. These
                          included Scott Weekly, a former U.S. Navy
                          SEAL who, Lafrance claimed, on occasion
                          worked for both the CIA and the Defense
                          Intelligence Agency (DIA), a little-known
                          outfit connected to the National Security
                          Council. The NSC was the White House office
                          in charge of the illegal contra supply
                          network.

                          Also named by Lafrance was Richard E. Wilker,
                          whom corporate papers show as having been an
                          employee of Pyramid International in 1982.
                          Lafrance said he first met Wilker in the late
                          1970s when Wilker was working for Intersect
                          Inc., another Orange County firm that did
                          specialized manufacturing under government
                          contract. Intersect was founded by a former
                          CIA agent, according to two of the principals
                          at the firm. According to Lafrance, Wilker
                          was also a former CIA agent.

                          I met Lister through Wilker, said Lafrance.
                          Wilker had heard about my stuff from the
                          agency. He said he had a friend who wanted to
                          talk about a deal. I called to check, and
                          Langley said [Wilker] was still working for
                          the agency. So I started doing business with
                          Lister and Wilker.

                          Of Lister's relationship to the CIA, Lafrance
                          had this to say: He wasn't getting a
                          paycheck from them. He may have said he did,
                          but his connection was . . . with Wilker.
                          Very few people ever work directly for the
                          agency.

                          There is documentary corroboration of a
                          number of points in Lafrance's description of
                          Lister's Central American operations.
                          Requests filed by the Weekly under the
                          Freedom of Information Act for documents
                          relating to Lister were denied out of hand by
                          the FBI and are still pending at the CIA, but
                          similar requests filed with the National
                          Archives were more fruitful.

                          A May 12, 1987, FBI report released by the
                          National Archives substantiates Lafrance's
                          allegations that Lister's Salvadoran business
                          trips involved providing weapons to the
                          Nicaraguan contras. The report describes an
                          interview that month with Federico Cruz, who
                          approached an FBI office in Mobile, Alabama,
                          seeking Lister's whereabouts.

                          Cruz, who owned the Ramada Inn in San
                          Salvador, claimed Lister stayed in El
                          Salvador for two or three months in 1982 and
                          was selling weapons to the contras. Cruz
                          also told the FBI that his hotel had been
                          used by the CIA team that accompanied Eugene
                          Hasenfus, the U.S. cargo handler whose
                          October 1986 capture after his plane was shot
                          down over Nicaragua sparked the entire
                          Iran-contra scandal. Cruz said someone had
                          removed all the Americans' personal
                          belongings from their rooms. Cruz wanted the
                          FBI's help in obtaining U.S. citizenship, and
                          in forcing Lister to repay him a large sum of
                          money. The FBI declined to assist Cruz in
                          either matter.

                          Further documentation of Lafrance's story
                          comes from the L.A. County Sheriff's
                          Department, which seized a stack of Lister's
                          personal papers in the 1986 raid on his
                          Mission Viejo home. The documents were
                          confiscated along with a cache of security
                          and surveillance equipment, boxes of
                          ammunition, photos of Lister apparently taken
                          at a contra training camps and military
                          training films.

                          Nearly all of that evidence disappeared from
                          sight, and the investigation into the Blandon
                          ring remained the subject of rumor until
                          after Webb's story appeared. Even then,
                          formal requests for release of the records
                          were ignored until Congresswoman Maxine
                          Waters paid a surprise visit to a sheriff's
                          department records chamber, demanding access
                          to the missing police files from the
                          10-year-old narcotics investigation. Caught
                          off-guard by her action, the records
                          custodians turned them loose.

                          Two of the documents seized from Lister's
                          home are telling. One is a printed contract
                          proposal for Lister's company, Pyramid
                          International. Dated October 1982, written in
                          Spanish and running over 35 pages, it appears
                          to refer to the security work cited by
                          Lafrance as a cover for the contra-support
                          operation. It shows that Lister was
                          negotiating the contract directly with Jos 
                          Guillermo Garc a, who was then El Salvador's
                          minister of defense. Garc a, one of the
                          military leaders who took control of that
                          country in a 1979 coup, has been linked by El
                          Salvador's Truth Commission to the rape and
                          murder of four American nuns and the 1981
                          massacre of more than 400 peasants at El
                          Mozote.

                          The other key document consists of 10 pages
                          of handwritten notes in which Lister jotted
                          down details from myriad negotiations over
                          international arms sales and other
                          transactions. In one of the entries, Scott
                          Weekly's name appears among a list of several
                          names  including that of the late Roberto
                          D'Aubuisson, best known as a graduate of the
                          U.S. Army School of the Americas in Ft.
                          Benning, Georgia, as the founder of the
                          rightist ARENA party, and leader of El
                          Salvador's infamous paramilitary death
                          squads.

                          Elsewhere in the handwritten memo, Lister
                          refers to a regular meeting with DIA
                          subcontractor Scott Weekly. Scott had worked
                          in El Salvador for us.

                          David Scott Weekly was first profiled in
                          these pages when Lister's notes were released
                          last year. That story was based largely on
                          interviews with Bo Gritz, Weekly's sometime
                          partner in paramilitary operations, as well
                          as records from a 1987 Oklahoma City trial in
                          which Weekly was convicted of smuggling C-4
                          explosives onto two civilian flights.

                          Weekly declined to be interviewed for that
                          story and, when questioned by sheriff's
                          investigators, acknowledged working with
                          Lister but declined to answer direct
                          questions about possible intelligence
                          connections. He refused to say whether he had
                          ever worked with the CIA, and then asserted
                          he wouldn't admit such a relationship even if
                          he had.

                          In fact, Weekly has in the past admitted to
                          having exactly such a relationship. The
                          comments surfaced in connection with the 1987
                          trial, but have not been made public until
                          now.

                          Court records from that trial show that the
                          explosives in question were used in a
                          short-lived training operation for a handful
                          of Afghan rebel leaders at a remote desert
                          airstrip near Sandy Valley, Nevada. Gritz
                          said the prosecution was part of a White
                          House effort to discredit him and Weekly
                          after they returned from a secret POW mission
                          to Burma with videotaped interviews asserting
                          that top CIA officials were involved in the
                          Iron Triangle heroin trade.

                          Additional new background material on Weekly
                          turns up in notes made by Mark Richard, a
                          U.S. attorney in Washington, D.C., based on
                          conversations with Weekly's federal
                          prosecutor. Richard submitted them to
                          congressional investigators in 1987 as part
                          of a deposition for the initial Iran-contra
                          hearings. Those notes, obtained from the
                          National Archives through a FOIA request,
                          show that Weekly had post[ed] on tape that
                          he's tied into CIA and Hasenfus, and that
                          Weekly said he reports to people reporting
                          to [George] Bush. Richard's memo also
                          reveals that Weekly had made a number of toll
                          calls to the National Security Council.
                          Finally, Richard's notes say that Oklahoma
                          City prosecutors found evidence that Weekly
                          worked for Bo Gritz and Tom Lafrance in San
                          Diego.

                          Weekly was convicted in Oklahoma City, but
                          after spending 14 months of a five-year
                          prison sentence, he was granted a
                          resentencing hearing based on evidence that
                          Weekly's Nevada training mission had indeed
                          been carried out with the knowledge of U.S.
                          government officials. On July 15, 1988, his
                          sentence was reduced to time already served,
                          and he was released.

                          Located late last month at his San Diego
                          home, Weekly refused an offer to be
                          interviewed for this story and chased the
                          reporter from his front door.

                          Perhaps the most significant name to turn up
                          on the handwritten list alongside D'Aubuisson
                          and Weekly was that of Bill Nelson. During
                          the interview with sheriff's investigators
                          last year, Lister claimed to draw a blank on
                          all the other names, but he recalled Nelson
                          as the vice president of security for the
                          Irvine-based construction giant Fluor Corp.
                          Contacted by the Weekly, a Fluor official
                          first denied any record of employing a Bill
                          Nelson; then, after being provided with
                          William E. Nelson's death certificate, which
                          listed Fluor as his place of employment, the
                          official confirmed that Nelson had worked
                          there from July 1977 to February 1985 as vice
                          president for security and administration.

                          Nelson died of natural causes two years ago,
                          but Mark Mansfield of the CIA's media office
                          confirmed that, before he worked for Fluor,
                          Nelson had joined the CIA in 1948, rising to
                          the top ranks of the agency. From 1973 to
                          1976, Nelson was deputy director of
                          operations, in charge of all of the agency's
                          covert operations, including its
                          controversial and ill-fated forays into Chile
                          and Angola.

                          Another source on Nelson is John Vandewerker,
                          one of the founders of Intersect and himself
                          a former CIA agent. Vandewerker claimed in an
                          interview that he met Lister through his
                          employee, Richard Wilker, and stated that
                          either Lister or Wilker had once helped him
                          apply for a job with Nelson at Fluor.

                          What, in the end, was Lister's relationship
                          with Nelson? What was Lister's relationship
                          to the CIA? Who sponsored his work for the
                          contras?

                          The answers to these questions are unknown,
                          and perhaps unknowable, given the murky,
                          secretive context of his story. But clearly
                          Lister is more than the bumbling ex-cop
                          dismissed out of hand by the mainstream
                          press. He dealt in large quantities of drugs
                          and cash. He was able to quickly move large
                          quantities of sophisticated, restricted
                          technology across international boundaries.
                          According to Timothy Lafrance, Lister was on
                          the ground  and in the air - in the war
                          zones of Central America. And his partners
                          included, besides Danilo Blandon, a crew of
                          intelligence operatives.

                          This new information on Lister's ties to the
                          shadowy world of covert operations falls just
                          short of being the smoking gun that reporter
                          Webb sought for his Dark Alliance series.
                          But Lister's story does add weight to the
                          very assertions that the mainstream press
                          judged to be deficient in Webb's work. And it
                          underscores the point that it is the CIA, not
                          Webb, that still has the most to answer for
                          on this matter.

                          Questions or comments?
             Email letters to the editor: letters@laweekly.com
      Copyright   1997, Los Angeles Weekly, Inc. All rights reserved.

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