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Monday, February 4, 1991 The Battalion
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Legislator wants regulation of exchange houses
AUSTIN (AP) — A Texas legislator has
proposed regulations that would require
state licensing for the hundreds of cur
rency exchange houses dotting the Mexi
can border, where authorities estimate
hundreds of thousands of dollars in illegal
drug profits are laundered.
The exchange houses, known as casas
de cambio, offer many of the same services
as banks, but at cheaper rates. Customers
use them to trade foreign currency, cash
checks and buy money orders.
The exchange houses are unregulated
by state or federal government. And law
enforcement officials say that has made
them a major channel for moving drug
profits in and out of the country.
“We don’t think every casa de cambio
operator is a crook,” Don Morris, a crimi
nal investigator for the Internal Revenue
Service in Laredo, told the Austin Ameri-
can-Statesman. “But based on the volume
of money that they move, it’s easy to as
sume a portion of that money is drug
money.”
To help authorities crack down on the
illegal drug trade, state Rep. Henry Cuel
lar, D-Laredo, has proposed legislation
that would regulate
the exchange houses.
Under Cuellar’s
bill, the state comp
troller’s office would
issue licenses an
nually to the cur
rency exchanges.
Money raised
through licensing
fees would pay for
investigators to monitor the industry.
The arrangement would be similar to the
Texas Alcoholid Beverage Commission’s
regulatory role over the liquor industry.
Cuellar’s bill also would prohibit felons
from obtaining a license.
Morris said he estimates that Texas bor
der exchange houses account for billions
of dollars in legitimate and illegal cash
transactions a year.
Although the exchanges have existed
for decades, drug traffickers began to use
them more in the 1980s to conceal illegal
drug profits, Morris said. And increased
law enforcement in Florida has forced
many drug dealers to shift their operations
to the Texas-Mexico border, he said.
“This is all about the war on drugs,”
Morris said of the proposed legislation.
“There’s a saying that if you follow the
mules, you’ll get the drugs,” Morris said,
referring to drug couriers. “But if you fol
low the money, you’ll get the bosses. We
want the bosses.”
Some exchange house operators say
they don’t oppose regulation.
U.S. Customs office
investigates dealers’
arms sales with Iraq
DALLAS (AP) — A Chilean
arms dealer who authorities claim
has close links to Saddam Hussein
is the target of a federal investiga
tion that centers on North Texas,
officers said.
Carlos Cardoen, who operates
one of Chile’s largest private
weapons manufacturers and fur
nished Iraq with cluster bombs
during its war with Iran, is the fo
cus ofa U.S. Customs Service in
vestigation, authorities said Sat
urday.
Customs officials told The Dal
las Morning News they are inves
tigating whether the 49-year-old
arms merchant modified a com
mercial helicopter and brought it
to Fort Worth for testing, with
plans to sell it to the Iraqi presi
dent’s regime.
Agents say the helicopter had
been reconfigured in Chile so
that it could be transformed into
a gunship. They said the modifi
cation was part of a plan to con
struct a low-cost alternative to
U.S.-built military attack helicopt
ers.
The government said the L T .S.-
educated Cardoen is also a prime
target of a customs service probe
in South Florida into possible
shipments of munitions, lethal
chemicals and military technol
ogy to Iraq.
After Iraqi troops invaded Ku
wait on Aug. 2, the United Na
tions imposed an arms embargo
against Saddam’s war effort.
Through his attorney, Car
doen has denied any impropriety.
He has not been charged with any
crime.
Authorities said the Texas in
vestigation centers on a modified
206L-II1 LongRanger commer
cial helicopter originally built by
Fort Worth-based Bell Helicopter
Textron Inc.
Bell has no direct involvement
in the modification project, offi
cials said.
“That helicopter is of interest
to us,” said Waye Frandsen, assis
tant special agent in charge of the
customs service’s Dallas office.
“We have an ongoing inquiry into
it and the individual responsible
for bringing it into the country.”
May 4 vote disfavored by politicians
City council members, mayor
appeal court-ordered election
DALLAS (AP) — Six Dallas City
Council members, including the
mayor, say they will appeal a court-
order demanding the city hold a
May 4 election under the so-called
“14-1” district voting plan.
Mayor Annette Strauss has been
joined by Mayor Pro Tern John
Evans, council members Glenn Box,
Harriet Miers, Jerry Bartos and Max
Wells in the support of an appeal.
The Dallas Morning News reported
Sunday.
On Friday, U.S. District Judge
i erry Buchmeyer ordered the city to
lold a 14-1 election in May to elect a
new council.
Under that plan, 14 single-mem
ber districts will replace the city’s
current 8-3 scheme. Currently, Dal
las voters elect eight district rep
resentatives and three candidates,
including the mayor, at large.
A closed-door council meeting
will be held Monday to discuss the
redistricting case with city attorneys.
Buchmeyer’s ruling comes nearly
a year after he struck down the city’s
8-3 system, saying it weakens mi
nority voting power.
The case before Buchmeyer stems
from a voting rights lawsuit filed by
a Hispanic group and two unsuccess
ful council candidates, Marvin
Crenshaw and Roy Williams, who
are black.
Both Crenshaw and Williams say
an appeal would be a “racist” and Palmer,
“arrogant” try to prolong the contro
versy.
“The City Council could have re
solved this issue some time ago if
they were as adamant about healing
the wounds in this in this city as they
are in keeping them open,”
Crenshaw said.
In 1989, voters approved the 10-
4-1 system, where 10 members
would be elected from districts, four
from quadrants and the mayor cho
sen at large. However, the U.S. De
partment of Justice system never ap
proved the system.
Four other council members op
pose an appeal. They are Deputy
Mayor Pro Tern Diane Ragsdale, A1
Lipscomb, Jim Buerger and Lori
iln
One council member, John
Tandy, has not disclosed his stance
on the 14-1 appeal.
72-year-old woman shoots intruder
HOUSTON (AP) — A 72-year-
old Sunday school teacher shot and
killed a state prison parolee who had
broken into her brother’s home and
was fighting with the ailing elderly
man, authorities said.
Inez Harris McGrew emptied her
new .38-caliber pistol, the first fire
arm she ever owned, at the intruder
as he lunged toward her in the living
room of her brother’s northeast
Houston home, the woman said.
The incident took place about
5:20 a.m. Saturday.
Maurice Howard, 34, paroled in
September after serving time for
forgery and drug-related convic
tions, was pronounced dead at the
scene, authorities said.
McGrew was asleep on a sofa in
the home of her brother, Charles
McGee, 64, when Howard began
breaking in, police said.
Voters kick
football out
of school
district plan
BROCK (AP) — Brock voters
have rejected football as an after
school activity for their 390-member
student body.
About 50 percent of registered
voters turned out Saturday to veto
the plan 295 to 194.
If the proposal had won, a foot
ball program would have begun in
junior high next fall, followed by a
high school program in 1993 or
1994.
The school board recently turned
down plans for football in a 5-2 vote.
But board members agreed to allow'
voters to decide.
Brock’s football dilemma has been
around ever since the town created
an independent school district 20
years ago.
However, basketball is a going
concern. Between 25 and 28 stu
dents try out for the high school bas
ketball team, which has made the
District 21-A playoffs each of the last
four years.
Brock is about 65 miles west of
Dallas.
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