(FBI Memo connecting cocaine trafficking to Contras and CIA) [Welcome toMercury Center] FM

(FBI Memo connecting cocaine trafficking to Contras and CIA)

[Welcome toMercury Center]

FM LOS ANGELES (58A-1588) (RIVRA/WCC-2) (P)

TO DIRECTOR, FBI IMMEDIATE

ATTN: SSA [INFORMATION BLACKED OUT], WHITE COLLAR CRIME SECTION;

S/C [INFORMATION BLACKED OUT] ORGANIZED CRIME SECTION; TERRORISM
SECTION

BT

UNCLAS

FRONT DOOR; MAJOR CASE 90; 00: FBIHQ

RE TELCALL OF SSRA [INFORMATION BLACKED OUT] RIVERSIDE RA, LOS ANGELES
DIVISION, TO SSA[INFORMATION BLACKED OUT] FBIHQ, 12/11/86, AND LOS ANGELES

TELETYPE 12/9/86 .

ON 12/11/86, [INFORMATION BLACKED OUT](PROTECT IDENTITY) [INFORMATION
BLACKED OUT] CALIFORNIA, INTERVIEWED REGARDING HIS ASSOCIATION WITH
ROLAND
LISTER, JAY LISTERX. [INFORMATION BLACKED OUT] MET LISTER AND LISTER'S
WIFE, STEPHANIE A. LISTER IN APRIL, 1986, WHEN LISTERS CONTACTED
[INFORMATION BLACKED OUT] TO PURCHASE RESIDENCE AT 22632 BARLOVENTO
MISSION
VIEJO. [INFORMATION BLACKED OUT] KNEW THAT LISTERS WERE KNOWN IN
MISSION
VIEJO SOCIAL CIRCLES AS FUND RAISER ORGANIZERS.

LISTER TOLD [INFORMATION BLACKED OUT] THAT PURCHASE OF RESIDENCE
WOULD BE
ALL CASH. ESCROW OPENED ABOUT APRIL 21, 1986, PURCHASE PRICE $374,000,
SELLERS STEVE AND TRISH SCARBOROUGH. ESCROW TO CLOSE 6/20/86, BUT LISTER
FAILED TO PROVIDE NECESSARY CASH. HOWEVER, LISTER PROVIDED SELLERS
WITH
$8,000 FROM ESCROW ACCOUNT AND $10,000 CASH TO EXTEND ESCROW 15 DAYS.
LISTER CLAIMED WAS USING CASH TO PURCHASE JET TYPE AIRCRAFT IN FLORIDA
WITH
HIS PARTNER, NOT FURTHER DESCRIBED, BUT ADDITIONAL FUNDS WOULD BE
COMING
FROM UNDESCRIBED EUROPEAN ACCOUNTS AT A LATER TIME. SELLER WANTED
DETAILS
PERTAINING TO LISTER'S EMPLOYMENTAND SOURCE OF FUNDS.

LISTER-ONLY MENTIONED THE EUROPEAN ACCOUNTS AND SAID HE WAS
SELF-EMPLOYED
IN SELLING SECURITY SYSTEMS TO THIRD WORLD COUNTRIES.

ALSO MENTIONED HIS BUSINESS WAS "CIA APPROVED." ALSO SAID HE WAS
RETIRED
FROM LAGUNA BEACH, CALIFORNIA, POLICE DEPARTMENT AFTER SERVING 12
YEARS
THERE.

LISTER AGAIN UNABLE TO PROVIDE CASH AND SECOND EXTENSION ON ESCROW
GRANTED
ABOUT 7/9/86. AGAIN LISTER PROVIDED FUNDS TO SELLER TOTALLING $20,000,
INCLUDING $10,000 CASH AND $10,000 FROM ESCROW ACCOUNT. LISTERS ALSO
WERE
ALLOWED TO MOVE INTO BARLOVENTO RESIDENCE AND PAY BOTH MORTGAGE
PAYMENTS
AND $2,200 A MONTH RENT TO SELLERS.

ON 8/1/86, LISTER TELEPHONICALLY CALLED [INFORMATION BLACKED OUT]
ASSOCIATE, [INFORMATION BLACKED OUT] AND SAID ABOUT $200,000 IN CASH EAS
IN
LISTER'S GARAGE IN ATHLETIC BAG. LISTER SAID HIS WIFE WAS NOT AWARE OF
THOSE FUNDS, LISTER REQUESTED THAT [INFORMATION BLACKED OUT] AND/OR
[INFORMATION BLACKED OUT] GO TO THE HOUSE AND OBTAIN THAT BAG OF
MONEY TO
PLACE INTO ESCROW, DUE TO CLOSE THAT SATE. [INFORMATION BLACKED
OUT]AND
[INFORMATION BLACKED OUT] DID GO TO THE RESIDENCE AND OBTAINED THAT
BAG IN
PRESENCE OF STEPHANIE LISTER. TOTAL OF $224,000 IN CASH WAS FOUND AND
WAS
DEPOSITED INTO ESCROW ACCOUNT. LISTER WAS THEN TO WIRE ADDITIONAL
FUNDS TO
MEET BALANCE OF ESCROW. HOWEVER, LISTER CALLED [INFORMATION BLACKED
OUT]
THAT DATE AND REQUESTED [INFORMATION BLACKED OUT] TO FLY FROM
ORANGE
COUNTY, CALIFORNIA TO SAN JOSE, CALIFORNIA, TO OBTAIN BALANCE OF FUNDS.
[INFORMATION BLACKED OUT] DID FLY TO SAN JOSE 8/1/86, AND WAS GIVEN
PAPERBAG CONTAINING MONEY.

[INFORMATION BLACKED OUT] ASKED LISTER WHERE FUNDS HAD COME FROM. DS
~ CO~
LISTER REPLIED HE WAS INVOLVED IN FUND RAISING FOR CONTRAS OR
SANDINISTAS,
SPECIFIC ONE UNRECALLED BY [INFORMATION BLACKED OUT] BUT BELIEVED TO
BE
CONTRAS. LISTER SAID THAT SPECIFIC ACTIVITY WAS "CIA APPROVED. "

[INFORMATION BLACKED OUT] RETURNED TO SOUTHERN CALIFORNIA 8/2/86, AND
COUNTED CASH FROM BAG, TOTALING $ 71,000. HE TELEPHONICALLY CONTACTED
STEPHANIE LISTER AND TOLD HER THAT $51,000 OR $52,000 WAS STILL NEEDED TO
MEET BALANCE OF ESCROW.

LATER THAT SAME DAY, LISTER TELEPHONICALLY CALLED HIM AND SAID THAT
HE HAD
RECEIVED THE WRONG BAG. LISTER SAID [INFORMATION BLACKED OUT] MUST
HAVE
RECEIVED THE BAG CONTAINING ABOUT $71,000 INSTEAD OF THE BAG
CONTAINING THE
CORRECT AMOUNT OF MONEY. HE SAID HE WOULD RETURN TO SOUTHERN
CALIFORNIA ON
OR ABOUT 8/4/86, WITH THE REMAINING CASH. [INFORMATION BLACKED OUT] IS
AWARE THAT LISTER MET WITH [INFORMATION BLACKED OUT] AT THE BANK
HOLDING
ESCROW ACCOUNT AND FURNISHED REMAINING FUNDS TO MEET BALANCE,
BELIEVED TO
BE IN CASH. ESCROW CLOSED THAT DATE.

[INFORMATION BLACKED OUT] SAID LISTER NEVER MENTIONED THAT HE WAS
SELLER OF
ARMS, NOR DID HE MENTION HE WORKED FOR AN IRANIAN OR ANY PARTICULAR
PERSON.
[INFORMATION BLACKED OUT] STATED HIS FRIEND, [INFORMATION BLACKED
OUT],
MISUNDERSTOOD HIM, ALTHOUGH HE MAY HAVE MENTIONED THAT POSSIBLE
CONNECTION
DUE TO RECENT MEDIA COVERAGE OF CAPTIONED MATTER.

BUREAU NOTE LOS ANGELES IS CURRENTLY INVESTIGATING MATTER

ENTITLED, "DANILO BLANDON, AKA; ET AL; NARCOTICS MATTER; 00:

LOS ANGELES ,"LOS ANGELES FILE 12B-1254, [INFORMATION BLACKED OUT]

IN AIRTEL TO BUREAU 11/17/86, WITH DANILO BLANDON CAPTION, LOS ANGELES
ADVISED BUREAU [INFORMATION BLACKED OUT] LITTLE OF VALUE WAS FOUND.

[INFORMATION BLACKED OUT] LISTER WAS THEN CONTACTED AT HIS NEW
BARLOVENTO
ADDRESS. LISTER TOLD LACSO OFFICERS THAT HIS "CIA CONTACT ,"
[INFORMATION
BLACKED OUT] WOULD NOT APPRECIATE THIS INTRUSION. [INFORMATION
BLACKED OUT]
LACSO ALSO RECEIVED TELEPHONE CALL FROM ATTORNEY BRUNON BRADLEY,
REPRESENTING BLANDON, WHO SAID "CIA WINKED AT THIS SORT OF THING."
BRADLEY
INDICATED THAT NOW THAT U.S. CONGRESS HAD VOTED FUNDS FOR NICARAGUAN
CONTRA
MOVEMENT, U..S. GOVERNMENT NOW APPEARS TO BE TURNING AGAINST
ORGANIZATIONS
LIKE THIS. BRADLEY DID NOT SPECIFICALLY DISCUSS DRUG TRAFFICKING OR
ARMS
SALES BUT ONLY REFERRED GENERALLY TO ACTIVITIES OF BLANDON AND LISTER.

[INFORMATION BLACKED OUT] HIS COMPANY NAMES OF MUNDY SECURITY GROUP
OR
PYRAMID SECURITY GROUP.

[INFORMATION BLACKED OUT]

LAHQ AT THIS TIME SEES NO CONNECTION BETWEEN RONALD JAY LISTER AND
CAPTIONED MATTER. [INFORMATION BLACKED OUT]

UACB, LOS ANGELES. WILL NOT INTERVIEW RONALD JAY LISTER.

FD- 302 FOLLOWS.

RESTRICTED INFORMATION DELETED

PER FOIA EXEMPTION

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