This prosecutorial attention worried the CIA. The CIA's Latin American division felt it was time for a security review of Vidal. But on Aug. 5, 1987, the CIA's security office blocked the review for fear that the Vidal drug information "could be exposed during any future litigation.
As expected, the U.S. Attorney did request documents about "contra-related activities by Vidal, Ocean Hunter and 16 other entities. The CIA advised the prosecutor that "no information had been found regarding Ocean Hunter, a statement that was clearly false.
The CIA continued Vidal's employment as an adviser to the contra movement until 1990, virtually the end of the contra war.
Honduras Trafficking
Hitz found that Juan Rivas, a contra commander who rose to be chief of staff, admitted that he had been a cocaine trafficker in Colombia before the war. The CIA asked Rivas, known as El Quiche, about his background after the DEA began suspecting that Rivas might be an escaped convict from a Colombian prison.
In interviews with CIA officers, Rivas acknowledged that he had been arrested and convicted of packaging and transporting cocaine for the drug trade in Barranquilla, Colombia. After several months in prison, Rivas said, he escaped and moved to Central America where he joined the contras.
Defending Rivas, CIA officials insisted that there was no evidence that Rivas engaged in trafficking while with the contras. But one CIA cable noted that he lived an expensive lifestyle, even keeping a $100,000 thoroughbred horse at the contra camp.
Contra military commander Bermudez later attributed Rivas's wealth to his ex-girlfriend's rich family. But a CIA cable in March 1989 added that "some in the FDN may have suspected at the time that the father-in-law was engaged in drug trafficking.
Still, the CIA moved quickly to protect Rivas from exposure and possible extradition to Colombia. In February 1989, CIA headquarters asked that DEA take no action "in view of the serious political damage to the U.S. Government that could occur should the information about Rivas become public.
Rivas was eased out of the contra leadership with an explanation of poor health. With U.S. government help, he was allowed to resettle in Miami. Colombia was not informed about his fugitive status.
Contra Spokesman
Another senior FDN official implicated in the drug trade was its chief spokesman in Honduras, Arnoldo Jose "Frank Arana.
The drug allegations against Arana dated back to 1983
when a federal narcotics task force put him under criminal investigation because
of plans "to smuggle 100 kilograms of cocaine into the United States from South
America.
On Jan. 23, 1986, the FBI reported that Arana and his brothers were
involved in a drug-smuggling enterprise, although Arana was not charged.
Arana sought to clear up another set of drug suspicions in 1989 by visiting the DEA in Honduras with a business associate, Jose Perez. Arana's association with Perez, however, only raised new alarms.
If "Arana is mixed up with the Perez brothers, he is probably dirty, the DEA responded.
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