WASHINGTON – Sen. Chuck Grassley (R-Iowa) today co-chaired a Senate Caucus on International Narcotics Control (Drug Caucus) hearing on precursor chemicals used to manufacture illicit synthetic drugs. Grassley grilled witnesses from the Departments of State, Justice and Homeland Security on precursor chemical destruction and foreign drug enforcement operations, inter-agency coordination in pursuing fentanyl traffickers and the urgent need to permanently schedule fentanyl-related substances, among other topics.
During questioning, a witness from Homeland Security Investigations (HSI) stated HSI was forced to stand down on an opportunity to arrest a member of the Chapitos faction of the Sinaloa Cartel, saying, “For reasons that you have very well documented in your report and letters...we weren’t able to execute” the arrest. As a result, the United States missed a critical opportunity to bring swift justice on the Sinaloa Cartel. Grassley’s letters tracing the Chapitos stand-down order are as follows:
Grassley’s full opening remarks can be found HERE. Video of his remarks and questions to the witnesses can be watched below.
Watch: Opening Remarks | Round 1 Questions | Round 2 Questions
Grassley’s questions follow:
Precursor Chemical Destruction in Mexico
Mr. Mayoral, when Mexican officials working with the United States seize precursor chemicals, what evidence, if any, does the Mexican government give the United States showing the seized precursor chemicals were actually destroyed?
The Justice Department indicted the Chapitos in the Southern District of California, Northern District of Illinois, District of Columbia and Southern District of New York. According to the Justice Department, the Chapitos have the largest, most violent fentanyl trafficking operation in the world. The New York Times reported an inter-agency dispute over the Chapitos cases.
Mr. Kimbell, has DEA Headquarters always provided full support to the Southern District of California, Northern District of Illinois and District of Colombia on their Chapitos cases and other Sinaloa Cartel-related matters?
Did the DEA-led Special Operations Division hold a deconfliction meeting with the Southern District of New York, Southern District of California and Northern District of Illinois?
State Department’s Vetting of Foreign Contract Employees
In September, I released a report on foreign operations in Mexico. The report cites embassy documents that show the State Department hired Mexican nationals to fill United States government contract positions in Mexico.
Ms. Nardi, what steps does the State Department take to vet the foreign nationals it hires?
If the State Department receives information that one of its foreign national hires may be committing crimes, what steps does the State Department take to protect U.S. interests?
Potential Lifting of Sanctions on China
In July, the Wall Street Journal reported, ‘The Biden administration is discussing lifting sanctions on a Chinese police forensics institute suspected of participating in human rights abuses in a bid to secure Beijing’s renewed cooperation in fighting the fentanyl crisis.’
Ms. Nardi, is the Biden administration considering lifting sanctions against China?
If the Biden administration intends to lift sanctions against China to secure cooperation on fentanyl, will you commit to brief members of Congress before those sanctions are lifted?
If the Biden administration lifts sanctions on China’s police forensics institute as reported, can you commit to ensuring that this action will not result in enabling the Chinese police force’s surveillance and abuse of ethnic minorities?
Fentanyl-Related Substances (FRS) Scheduling
In May, Senator Whitehouse and I wrote the Chinese Embassy asking for help combatting precursor chemicals. They wrote back saying, ‘the U.S. only temporarily schedules fentanyl substances. If the U.S. can put those substances under permanent scheduling as soon as possible, it will be more conducive to addressing U.S. drug issue s on the supply side.’
Ms. Nardi, how has Congress’ inability to permanently schedule fentanyl knockoffs impacted China’s assistance to the U.S. on fentanyl related issues?
HSI Arrest Operations During Chapitos Indictments
Mr. Mayoral, The New York Times reported that, in May 2022, Homeland Security Investigations saw an opportunity to arrest at least one of the Chapitos and wanted to take it. Did Homeland Security see an opportunity to arrest at least one of the Chapitos in May 2022?
Former Deputy Attorney General Rosen issued a memo titled “Adjudication of Venue Disputes Related to Multi-District Investigations and Prosecutions of International Narcotics Trafficking.” Also known as the Rosen Memo, it was designed to sort out agency and jurisdiction issues for international narcotics cases. Was this memo in effect in May 2022?
Shipment of Precursor Chemicals
The Chinese Embassy told Senator Whitehouse and me in a letter that ‘China is not the main source of chemicals of Mexico’ and that the ‘amount of chemicals exported to Mexico from the U.S. far exceeds that from China.’
Mr. Mayoral, can you shed some light on which country sends more precursor chemicals into Mexico?
Sales of Precursor Chemicals on Social Media Platforms
Last week, I joined a letter to Meta led by Senator Ernst that flagged several Facebook posts advertising the sale of precursor chemicals online. These precursors were List I chemicals under the Controlled Substance Act.
Mr. Kimbell, has DEA had conversations with tech companies to find solutions to illegal online sales and end-to-end encryption problems?
How can tech companies better assist law enforcement?
Alleged DEA Contract Irregularities
I’ve been investigating whistleblower allegations of contract irregularities at DEA involving Administrator Milgram.?Whistleblowers allege she directed the hiring of her friends and former associates, sometimes by sole source contracts awarded without competition.?This includes a sole source contract to Wilmer Hale for production of a report on DEA’s foreign operations. So far, the DEA has improperly cited an ongoing investigation by the Office of Inspector General to refuse answering my questions even though the Inspector General’s Office has advised me that DEA can respond.?
The taxpayers paid for that Wilmer Hale Report.?Did anyone at DEA ask for, or make, any substantive changes to the Wilmer Hale report before it was publicly released? If so, who and why?
According to whistleblower disclosures, DEA is requiring senior agents to run their work through Mr. Jose Cordero, a former associate of Administrator Milgram who was awarded a sole source contract with DEA.?When a sole source contract is awarded to a contractor, is it DEA’s standard practice to require its agency employees to report to that contractor for decision-making, essentially subordinating those employees to the contractor??
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