8 Accused of Helping Traffickers Launder Money at County Banks

LOS ANGELES — Eight people, including a loan officer at a bank in Santa Ana, were indicted by a federal grand jury on charges that they provided support services or were connected with major Colombian cocaine traffickers operating in the Los Angeles area, the U.S. attorney’s office announced Thursday.

Bank of America loan executive Gladys Ayala, 47, of Irvine and Waldyr Antonio Pizzotti, 52, and Anibal Michael Justo, 53, both of Villa Park, were charged in a 12-count indictment with conspiring to defraud the government by assisting drug traffickers in laundering their profits through Orange County banks.

The grand jury also returned a 12-count indictment against five other individuals: George Humberto Bosch, 57, of Glendale and his son, George Robert Bosch, 29, of Fontana, owners of the Public Advice & Advise Service, a private investigation agency in Glendale, and three Colombian nationals, Efrain Santana, 39, Elkin Estrada-Gallego, 43, and Ampara Garay.

According to the indictment, Pizzotti, who is employed at a health-care institute in Santa Ana, and Ayala “organized and operated a scheme” to launder cash generated by drug trafficking.

Prosecutors allege that as late as 1984 people associated with the drug trafficking were filing false currency transaction reports.

Individuals depositing more than $10,000 in a bank must fill out such reports, including their names, addresses and other vital information, which is then forwarded to the Internal Revenue Service. The forms--commonly called CTRs--are used by government watchdog agencies to guard against money laundering, where cash generated by illegal activities is deposited into legitimate accounts to camouflage its source.

Assistant U.S. Atty. Brian A. Sun said that about $400,000 in drug money was laundered in the immediate case but that much more could be involved.

Pizzotti advised Estrada-Gallego, Garay and an unindicted co-conspirator “that he could launder money derived from cocaine trafficking for a 5% fee,” according to the indictment. Defendant Justo also participated in this scheme, according to the indictment.

The Bosches, according to the indictment, provided services “to a number of Colombian-based cocaine traffickers” operating in Southern California, including the Colombian fugitives charged with them in the indictment, among which was “the furnishing of false Social Security cards.”

“The Bosches also assisted the Estrada-Gallego cocaine-trafficking organization in the possession and distribution of their cocaine by renting ‘stash’ houses that stored large amounts of cocaine, currency, records, narcotics paraphernalia and weapons belonging to this organization,” the indictment said.

The indictment noted that in January, 1984, “approximately 230 pounds of cocaine, extensive narcotics ledgers, approximately $900,000 in cash and negotiable cashier’s checks and numerous weapons” were seized from a Glendale house which had been rented by George Bosch on behalf of defendant Santana.