Zhenli Ye Gon
Encyclopedia
Zhenli Ye Gon is a Mexican
businessman of Chinese
origin accused of trafficking pseudoephedrine
or ephedrine precursor chemicals into Mexico from Asia
. He is the legal representative of Unimed Pharm Chem México. From 2002-2004, Unimed had been legally authorized by the Mexican government to import thousands of metric tons of pseudoephedrine and ephedrine products into Mexico, as a part of its vast importation business. After this authorization ended on July 1, 2005, the Mexican government alleges that Mr. Ye Gon and certain of his employees violated its laws by continuing to import four unauthorized containers of pseudoephedrine or ephedrine precursor chemicals into Mexico in late 2005 and 2006. In July 2007, the U.S. government filed an indictment charging that these same actions were part of a conspiracy to aid and abet the importation of methamphetamine into the United States. Two years later, the U.S. case was dismissed with prejudice by The United States District Court for the District of Columbia, in August 2009.
He is claimed to be a member of the Sinaloa Cartel
, a charge that Mr. Ye Gon, who has no previous criminal record, has denied. He became a citizen of Mexico in 2002.
, knowing or intending that it would be imported into the United States. Federal agents arrested him in a Wheaton, Maryland restaurant on July 23, 2007. From the date of his arrest, Mr. Ye Gon has always maintained that he is not guilty. In March 2010 Mr. Ye Gon retained the services of lawyer Gregory S. Smith., who currently represents him.
Mr. Ye Gon was scheduled to go to trial on his U.S. charge in September 2009. On June 22, 2009, the U.S. Department of Justice filed a motion to dismiss its case against Mr. Ye Gon, citing Mexico's interests as well as evidentiary concerns. At a hearing on the same day, prosecutors admitted that one of their key witnesses had recanted. His attorneys at the time, Manuel J. Retureta, of Retureta & Wassem, PLLC, and A. Eduardo Balarezo vigorously litigated this Brady issue before the Honorable Emmet G. Sullivan. As a result of the efforts of Messrs. Retureta and Balarezo, all charges brought against Mr. Ye Gon by the government of the United States were dismissed with prejudice on August 28, 2009. Mexico's separate pending criminal charges against Mr. Ye Gon were not dismissed, however, and the U.S. Department of Justice continued its efforts to extradite Mr. Ye Gon to Mexico to face criminal charges there. Renewed efforts to have Mr. Ye Gon released on bail following the dismissal of his U.S. criminal case proved unsuccessful, and in late Fall of 2009, a magistrate judge ordered that Mr. Ye Gon must remain in custody pending a decision on whether the U.S. can extradite him to Mexico to face charges there.
Mr. Ye Gon's extradition case is being litigated in the United States District Court for the District of Columbia. On February 9, 2011, Magistrate Judge John M. Facciola certified Mr. Ye Gon's extraditability to Mexico to face charges there.
In March 2007, the Mexican government entered Mr. Ye Gon's home and seized hundreds of millions of dollars in cash. In an interview with the news agency AP
, Mr. Ye Gon explained he agreed to keep the money in his home after his life, as well as those of his family, were threatened by members of Mexico's PAN
party.
The Chinese citizens (Yen Yongging and Fu Huaxin) were apprehended on July 23, 2007. On December 5 United Pharm Chem had seen 19,497 kilos of a product that Mexican authorities claimed contained a controlled precursor chemical seized. Other individuals affiliated with his companies and the challenged importations were also arrested. On July 9, 2010, however, defendant Juan Llaca Diaz was declared innocent in a Mexican court, and acquitted of organized crime and drug charges. Mexico's Judiciary Council issued a statement noting that prosecutors had failed to prove key parts of their case, including that the substance seized was a psychotropic or narcotic drug.
At the time of his arrest, it was reported that Mr. Ye Gon was listed as wanted by a number of countries by Interpol
. He was said to be in the U.S.
as he was supposedly spotted in Las Vegas
at the moment of the seizure of the cash and in New York
afterwards.
The fortune, found by the police on March 15, 2007 at his residence at Lomas de Chapultepec in Mexico City
included the following:
Confiscated along with the money were also:
Nine persons were arrested, four of them of Asian origin.
Two Mexican Federal agents who were involved in the arrests at the Zhenli Ye Gon mansion were found dead in the southern Mexican state of Guerrero
, as reported on August 2, 2007.
's presidential campaign in 2006. The Mexican Secretary of Labor at the time was in fact Javier Lozano Alarcón
. Felipe Calderon denied connection with the money and said it was invention by Ye Gon to avoid prosecution.
found that most Mexicans either buy Ye Gon's story that he was framed by government officials or believe neither side. Bumper stickers reading "I believe the Chinaman" are for sale.
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
businessman of Chinese
Han Chinese
Han Chinese are an ethnic group native to China and are the largest single ethnic group in the world.Han Chinese constitute about 92% of the population of the People's Republic of China , 98% of the population of the Republic of China , 78% of the population of Singapore, and about 20% of the...
origin accused of trafficking pseudoephedrine
Pseudoephedrine
Pseudoephedrine is a sympathomimetic drug of the phenethylamine and amphetamine chemical classes. It is used as a nasal/sinus decongestant and stimulant, or as a wakefulness-promoting agent....
or ephedrine precursor chemicals into Mexico from Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
. He is the legal representative of Unimed Pharm Chem México. From 2002-2004, Unimed had been legally authorized by the Mexican government to import thousands of metric tons of pseudoephedrine and ephedrine products into Mexico, as a part of its vast importation business. After this authorization ended on July 1, 2005, the Mexican government alleges that Mr. Ye Gon and certain of his employees violated its laws by continuing to import four unauthorized containers of pseudoephedrine or ephedrine precursor chemicals into Mexico in late 2005 and 2006. In July 2007, the U.S. government filed an indictment charging that these same actions were part of a conspiracy to aid and abet the importation of methamphetamine into the United States. Two years later, the U.S. case was dismissed with prejudice by The United States District Court for the District of Columbia, in August 2009.
He is claimed to be a member of the Sinaloa Cartel
Sinaloa Cartel
The Sinaloa Cartel is the most powerful drug cartel in Mexico and considered by the United States Intelligence Community as "the most powerful drug trafficking organization in the world." The Sinaloa Cartel is based in the city of Culiacán, Sinaloa, but also operates in the Mexican states of Baja...
, a charge that Mr. Ye Gon, who has no previous criminal record, has denied. He became a citizen of Mexico in 2002.
U.S. case against Ye Gon
In 2007, Zhenli Ye Gon was indicted in the United States District Court for the District of Columbia with a single count of conspiracy to aid and abet the manufacture of 500 grams or more of methamphetamineMethamphetamine
Methamphetamine is a psychostimulant of the phenethylamine and amphetamine class of psychoactive drugs...
, knowing or intending that it would be imported into the United States. Federal agents arrested him in a Wheaton, Maryland restaurant on July 23, 2007. From the date of his arrest, Mr. Ye Gon has always maintained that he is not guilty. In March 2010 Mr. Ye Gon retained the services of lawyer Gregory S. Smith., who currently represents him.
Mr. Ye Gon was scheduled to go to trial on his U.S. charge in September 2009. On June 22, 2009, the U.S. Department of Justice filed a motion to dismiss its case against Mr. Ye Gon, citing Mexico's interests as well as evidentiary concerns. At a hearing on the same day, prosecutors admitted that one of their key witnesses had recanted. His attorneys at the time, Manuel J. Retureta, of Retureta & Wassem, PLLC, and A. Eduardo Balarezo vigorously litigated this Brady issue before the Honorable Emmet G. Sullivan. As a result of the efforts of Messrs. Retureta and Balarezo, all charges brought against Mr. Ye Gon by the government of the United States were dismissed with prejudice on August 28, 2009. Mexico's separate pending criminal charges against Mr. Ye Gon were not dismissed, however, and the U.S. Department of Justice continued its efforts to extradite Mr. Ye Gon to Mexico to face criminal charges there. Renewed efforts to have Mr. Ye Gon released on bail following the dismissal of his U.S. criminal case proved unsuccessful, and in late Fall of 2009, a magistrate judge ordered that Mr. Ye Gon must remain in custody pending a decision on whether the U.S. can extradite him to Mexico to face charges there.
Mr. Ye Gon's extradition case is being litigated in the United States District Court for the District of Columbia. On February 9, 2011, Magistrate Judge John M. Facciola certified Mr. Ye Gon's extraditability to Mexico to face charges there.
Mexican Case
Associated Press
The Associated Press is an American news agency. The AP is a cooperative owned by its contributing newspapers, radio and television stations in the United States, which both contribute stories to the AP and use material written by its staff journalists...
, Mr. Ye Gon explained he agreed to keep the money in his home after his life, as well as those of his family, were threatened by members of Mexico's PAN
National Action Party (Mexico)
The National Action Party , is one of the three main political parties in Mexico. The party's political platform is generally considered Centre-Right in the Mexican political spectrum. Since 2000, the President of Mexico has been a member of this party; both houses have PAN pluralities, but the...
party.
The Chinese citizens (Yen Yongging and Fu Huaxin) were apprehended on July 23, 2007. On December 5 United Pharm Chem had seen 19,497 kilos of a product that Mexican authorities claimed contained a controlled precursor chemical seized. Other individuals affiliated with his companies and the challenged importations were also arrested. On July 9, 2010, however, defendant Juan Llaca Diaz was declared innocent in a Mexican court, and acquitted of organized crime and drug charges. Mexico's Judiciary Council issued a statement noting that prosecutors had failed to prove key parts of their case, including that the substance seized was a psychotropic or narcotic drug.
At the time of his arrest, it was reported that Mr. Ye Gon was listed as wanted by a number of countries by Interpol
Interpol
Interpol, whose full name is the International Criminal Police Organization – INTERPOL, is an organization facilitating international police cooperation...
. He was said to be in the U.S.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
as he was supposedly spotted in Las Vegas
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
at the moment of the seizure of the cash and in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
afterwards.
Assets seized
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
included the following:
- 207 million U.S. dollarsUnited States dollarThe United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
- 18 million Mexican pesoMexican pesoThe peso is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 15th–19th century Spanish dollar, most continuing to use its sign, "$". The Mexican peso is the 12th most traded currency in the world, the third most traded in the Americas, and by far the most...
s - 200,000 euroEuroThe euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
s - 113,000 Hong Kong dollarHong Kong dollarThe Hong Kong dollar is the currency of the jurisdiction. It is the eighth most traded currency in the world. In English, it is normally abbreviated with the dollar sign $, or alternatively HK$ to distinguish it from other dollar-denominated currencies...
s - 11 centenarioCentenarioThe Centenario is a Mexican gold bullion coin first minted in 1921 to commemorate the 100th anniversary of Mexico's independence from Spain. The coin is not intended to be used as currency; the face value of 50 pesos is for legal purposes only, and does not reflect the actual value of the gold...
s (Mexican gold bullion coins made of 1.20565 oz t (37.5 g) of pure gold) - A great amount of jewels, of unknown value
Confiscated along with the money were also:
- Two Mexican-style dwellings of approximately 20 million pesos
- 1 lab in construction of unknown value
- 7 vehicles
Nine persons were arrested, four of them of Asian origin.
Two Mexican Federal agents who were involved in the arrests at the Zhenli Ye Gon mansion were found dead in the southern Mexican state of Guerrero
Guerrero
Guerrero officially Estado Libre y Soberano de Guerrero is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 81 municipalities and its capital city is Chilpancingo....
, as reported on August 2, 2007.
Origins of the money
According to the Mexican authorities, Ye Gon's money is the product of drug-trafficking activities. However Ye Gon asserts that he was forced by "Javier Alarcón", putatively identified as the Secretary of Labor, to keep it at his home, and that this money would be used during Felipe CalderónFelipe Calderón
Felipe de Jesús Calderón Hinojosa is the current President of Mexico. He assumed office on December 1, 2006, and was elected for a single six-year term through 2012...
's presidential campaign in 2006. The Mexican Secretary of Labor at the time was in fact Javier Lozano Alarcón
Javier Lozano Alarcón
Javier Lozano Alarcón is a Mexican politician who serves as Secretary of Labor in the cabinet of President Felipe Calderón.He was telecoms consultant....
. Felipe Calderon denied connection with the money and said it was invention by Ye Gon to avoid prosecution.
In pop culture
A poll by the daily newspaper ReformaReforma
Reforma is a Mexican newspaper based in Mexico City. It has 276,700 readers in Mexico City. The paper shares content with other papers in parent newsgroup Grupo Reforma. The cumulative readership of the newsgroup is above 400,000...
found that most Mexicans either buy Ye Gon's story that he was framed by government officials or believe neither side. Bumper stickers reading "I believe the Chinaman" are for sale.
See also
- Mexican Drug WarMexican Drug WarThe Mexican Drug War is an ongoing armed conflict taking place among rival drug cartels who fight each other for regional control, and Mexican government forces who seek to combat drug trafficking. However, the government's principal goal has been to put down the drug-related violence that was...
- Sinaloa CartelSinaloa CartelThe Sinaloa Cartel is the most powerful drug cartel in Mexico and considered by the United States Intelligence Community as "the most powerful drug trafficking organization in the world." The Sinaloa Cartel is based in the city of Culiacán, Sinaloa, but also operates in the Mexican states of Baja...
- Joaquin GuzmanJoaquín GuzmánJoaquín Archivaldo Guzmán Loera nicknamed "El Chapo" for his stature, is a Mexican drug lord who heads Mexico's and the world's largest and most powerful drug trafficking organization referred to as the Sinaloa Cartel, named after the Mexican Pacific coast state of Sinaloa where it was initially...