By Matija Šerić
Organized crime—that is, illegal mafia activities—has been present throughout the entire history of humanity, and in the modern world narcotic cartels attract particular attention. Illegal drug trafficking has become the main engine of organized crime. Most states today struggle to cope with narcotics distribution, and in many countries the use of soft drugs is being legalized in order to curb crime, while some liberal parties even win elections in the developed world on such platforms.
Cali KGB
Although each drug cartel is unique and has its own story, one cartel stood out among the most powerful—the Colombian Cali Cartel. Its origins lie in the southwestern part of the Republic of Colombia, specifically in the area of the city of Santiago de Cali and its surroundings, after which it was named. The Cali Cartel began operating in the second half of the 1970s and left an indelible mark over the next two to three decades. Thanks to a sophisticated network of informants and spies, a high level of management, coordination and oversight, as well as effective cooperation with foreign mercenaries and certain states, the cartel gained a grandiose reputation. Agents of the U.S. Drug Enforcement Administration (DEA) even called it the “Cali KGB.”
Report about Cali cartel
Narco Empire
The drug lords—Rodríguez Orejuela brothers, José Santacruz Londoño known as “Chepe,” and later Hélmer Herrera nicknamed “Pacho”—created the largest and most powerful criminal organization in history. The Cali cartel established a complete system of production, processing, and global distribution of cocaine. At the height of its power, in the mid-1990s, the cartel controlled more than 90% of the world cocaine market and was largely responsible for the sudden surge in cocaine distribution and use in Europe, where it also held a 90% market share. In the 1990s, the Cali Cartel represented a true criminal empire worth billions of dollars—a genuine multinational corporation, albeit one outside the law.
Origins of the Cali Cartel
The Cali Cartel was originally founded by the Rodríguez Orejuela brothers and José Santacruz Londoño. They came from what was then considered a higher social class compared with other drug traffickers of that time, who were mostly common thieves, scammers, and vagabonds. Such “high social status” recognition can be seen in the group’s nickname—Los Caballeros de Cali (“The Gentlemen of Cali”). In public, they behaved and dressed like gentlemen, although their activities could hardly be called gentlemanly—more gang-like or, in today’s terms, terrorist.
The group originally formed around a circle of kidnappers and counterfeiters called “Las Chemas,” led by Luis Fernando Tamayo Garcia. Las Chemas were involved in numerous horrific kidnappings, including two Swiss citizens—a diplomat and a student. The kidnappers managed to collect $700,000 in ransom from the victims’ families, an amount believed to have served as the initial capital for building their drug-trafficking empire. The foundation for their rise was set.
Cali Exploits DEA Negligence
The newly formed group first began smuggling marijuana, which was expected since it is the “least complicated” drug and most drug lords start their business with popular cannabis. They were successful at it. However, due to the relatively low profit margin and the large quantities needed to hide the operation, they switched to a more lucrative drug—cocaine. In the early 1980s, the cartel sent Hélmer “Pacho” Herrera to New York City to establish a cocaine distribution hub. This occurred at a time when the U.S. DEA considered cocaine a lesser evil compared with heroin, and therefore did not aggressively pursue cocaine traffickers. This assessment turned out to be a catastrophic mistake by the Reagan administration. DEA’s nonchalant approach was the main reason that allowed the cartel to achieve major success.
The cartel expanded, forming multiple operational cells with a high degree of autonomy, but which reported to the celeno—the manager—who then relayed reports to Jorge Alberto Rodríguez, who ultimately reported to the headquarters in Cali. In the mid-1980s, Rodríguez formed a cartel cell called Cartel 400, which rose in importance and monitored all drug shipments and distribution exported to the U.S. by the Cali Cartel. The structure of independent cells was a characteristic distinguishing the Cali cartel from the Medellín cartel. The Calis operated as a tight group of independent criminal organizations, while the Medellín cartel functioned under the centralized control of Pablo Escobar.
Leadership
The leadership of the Cali Cartel consisted of: Gilberto Rodríguez Orejuela (the Chess Player), Miguel Rodríguez Orejuela (El Señor/The Gentleman), José Santacruz Londoño (the Student, or “Chepe”), Jorge Alberto Rodríguez (Don Cholito), and Hélmer Herrera (“Pacho”). Prominent associates included Victor Patiño-Fomeque (the Chemist/The Beast), Henry Loaiza Ceballos (the Scorpion), José Fedor Rey, and Phanor Arizabaleta Arzayus.
It is believed that each cell submitted reports to a larger group, which then forwarded them to the cartel’s leadership. According to the cartel’s former accountant, Guillermo Pallomari, there were five main groups within the cartel:
- the drug-trafficking division,
- the military division,
- the political division,
- the financial division, and
- the legal division.
The drug-trafficking group controlled drug-processing labs, delivery methods, and distribution routes. The military group oversaw security, discipline, and bribery of military and police structures within the Colombian state. The political group cultivated ties with government officials, parliament members, and local authorities. The financial group laundered drug money through legal businesses owned by the cartel. The legal group represented arrested traffickers, hired lobbyists, and represented the cartel abroad. The head of the DEA once declared the Cali Cartel “the largest and most powerful criminal organization ever to exist.”
The Rise of the Cali Drug Cartel
Modus Operandi
As mentioned, the Cali Cartel began with marijuana smuggling before switching to the more lucrative cocaine trade. The cartel became known for its innovation in drug processing and smuggling, relocating cocaine-processing operations outside Colombia to Peru and Bolivia, and establishing trafficking routes through the key transit country—Panama. The cartel also diversified into opium and even brought in a Japanese chemist to improve drug-processing techniques.
According to various reports, Cali became the dominant cartel in the heroin trade due to its access to opium-growing areas in Colombia. Questions remain regarding whether the cartel leadership directly participated in heroin trafficking. Some estimates suggest that top leaders did not participate, but several close associates did, collaborating with other cartels specializing in heroin distribution.
At the height of its reign, the Cali Cartel controlled 90% of the global cocaine market and was directly responsible for the surge of cocaine consumption in Europe, where it also controlled 90% of the market. By the mid-1990s, the Cali Cartel’s narco empire was worth billions of dollars—it was, in effect, a fully developed illegal multinational corporation.
