Digging For the Roots of the F. Lee Bailey,
U.S. Attorney Agreement


Please also review these related sites...

Text of F. Lee Bailey's Lawsuit
DEA Watch - original report
DEA Watch - Main Page
FTS Wire - Main Page


WATCH

In early 1994 a retired DEA agent named Steve Swanson came into powerful information regarding a man he'd been able to forget. What evolved from Swanson's investigation of Claude Duboc, allegedly the world's largest marijuana dealer, continues to capture headlines today... and continues to haunt both himself and others instrumental in capturing Duboc. Two names that figure prominently in the Duboc case are Customs Attache (Paris) Paul Beaulieu and DEA Group Supervisor (Los Angeles) John Marcello. But perhaps the most well-known name that keeps voracious public attention on this case is the name of F. Lee Bailey.

DEA Watch has been following this case for some time. Only until now has more information come in that permits us to assemble facts and incidents that bring the full story together.

DEA Watch's first report on this case was filed in February, 1996. Click hereto read that report. DEA Watch will continue to provide new info as it arrives. In the meantime, we offer these items collected from our dailyFTS Wire series...

The complete text of F. Lee Bailey's suit.

28 Oct 1996 - Seems AUSA Drew Pitt in Los Angeles has himself in a fix according to a recent Wall Street Journal story. Pitt's motivation is alleged to be personal greed. Reportedly, he has been suspended and is under Grand Jury investigation for his involvement with some of the very people he once investigated. Per our contacts... the Justice Department has taken pains to keep the information about this matter out of the public realm before the election. DEA Watch mentions this case because it raises questions about the Justice Department's oversight of prosecutors and informants. We know from our review of similar events in the F. Lee Bailey/Claude Duboc case that there was little or no Justice Department oversight and, as a result, the U.S. Attorneys involved damaged the interests and desires of the American people and tainted, if not destroyed, the careers of life-long American law enforcement personnel who devoted their lives to DEA and eliminating the drug scourge.

DEA Watch has received a copy of Mr. Bailey's lawsuit and it's an explosive barn-burner. The terrible reality of this case is that career drug-war heroes: Beaulieu, Marcello, Bourke, Tarallo and Swanson are still being drug through the mud while Carl Lilley, the DEA agent who allegedly recommended and participated in betraying his fellow agents and Bailey, remains protected by the US Attorneys in Florida he worked with. The whole story is available via the above hypertexted website. However, it must be observed that at the same time Lilley recommended, according to court documents, to violate Swiss law he also allegedly encouraged, if not initiated, an OPR investigation of G/S Marcello in Los Angeles and fingered Customs Attache Paul Beaulieu and S/A Ed Bourke in Paris. These other agents, using information specifically developed by former DEA Supervisor Stephen Swanson, "tricked" Duboc into Hong Kong were he was promptly arrested. Marcello, Beaulieu, Bourke and Swanson delivered the "goose that laid the golden egg." Lilley ate egg. History WILL record that he choked on it.... and that the honest agents, named above, who were maliciously hung out to dry by Constantine and the (soon-to-be-former) Janet Reno Justice Department were COMPLETELY vindicated.

Joe Lopez reportedly made his name while working the "Pisces" case under the supervision of Rich Gorman. It was one of DEA's 1st and most successful money-laundering "sting" ops. The case started with a "friendly" who came from Mexico City to Miami with a proposition."I can get the Cartel money transport contract, but I want to take a percent of every dollar I move." This C.I. allegedly made millions -- as well he should -- but the op tracked over $100 million in drug proceeds, mostly going to Panama accounts and onward around the world. DEA was able to identify many additional accounts and assets as a result of this op. Unlike some of these money operations significant arrests and money seizures occurred.
Was the "friendly" a CIA operative? Was the op a CIA op? This happened at the height of the Contra wars. Why was Rich Gorman taking a check-ride on an Evergreen Intl Jet? Why was Joe Lopez promoted and sent to Bogota when he failed miserably in Bolivia? It's a crime to divulge an informants identity to anyone not authorized to have it. When did Northern District of Florida, AUSA's Gregory Miller, Thomas Kirwin and James Hankinson, DEA agents Carl Lilley and Customs Agent Greg Small repeatedly do that to former DEA Supervisor Stephen Swanson and DEA C.I. Tommy Smith? The last DEA agent to betray a fellow agent the way Swanson was betrayed was Steve Gibbs. Gibbs, all will recall, was sent to a Federal Pen. DEA Watch believes the Justice Deptmust determine who authorized the disclosure of Swanson's name to Robert Shapiro, F. Lee Bailey and other defense attorneys and witnesses in the Claude Duboc case. ="red"> Please see related files

DEA Watch has learned that AUSA Greg Miller may have been one of the AUSA's from the Northern District of Florida who 'Flea' Bailey was referring to the other night on Larry King Live as being"a liar". ( See FTS Wire 23 Oct). Miller was Kirwin's boss and part of theTerrible Trio Law Firm of Patterson, Miller and Kirwin. Did Dave McGee become the fall guy for these three? Miller had direct contact with Bailey on the Duboc case... per our sources in Tallahassee. The F. Lee Bailey law suit will reveal much more about this ="red"> Gang Of Three. Customs Agent Ed Bourke reported to Judge Maurice Paul that Miller lied to him about not having made a deal with Bailey. No action was taken by Judge Paul. We now ask,Was Judge Paul part of the deal? We're told that "Only in the Northern District of Florida are no court reporters present in the Judge's chambers." Hmmmm.

23 Oct 1996 - Appearing on Larry King last night F. Lee Bailey stated he sued the US Government. He stated a US Attorney and his client offered him a $3.5 million fee in the Claude Duboc case. According to Bailey he was given stock worth $6 million. 20 months later, after learning that the stock was now worth $21 million, the US Attorney, according to Bailey, breached the contract by demanding all the money. then put Bailey in jail because much of it was spent. Bailey said the prosecutor is lying. Bailey didn't name the prosecutor but DEA Watch received info that it was AUSA Thomas Kirwin. DEA Watch has reviewed Kirwin's testimony in this case.

Allegedly, Kirwin used the credibility inherent in his office to question the integrity of DEA G/S John Marcello and Customs Agents Paul Beaulieu and Ed Bourke. Customs Commissioner George Weise believed Kirwin over his two career agents who combined have 56 years of unblemished govt service. To Weise's credit, however, he didn't put Beaulieu and Bourke on administrative leave as Tom Constantine did to G/S Marcello.

We now know the deck was stacked against Bailey in the Northern District of Florida. Judge Maurice Paul is a "Government Judge" according to DEA RAC Carl Lilley. Bailey said, "This suit is now at the seat of power in Washington. When things were going funny in Tallahassee maybe Washington looked the other way. Now it's time for the top people in the Justice Department who are good people to take a hard look and see if this case should go to trial."

DEA Watch would warn Bailey not to hold his breath on that one. Agent Beaulieu wrote Michael Shaheen (OPR Justice) a letter on March 21, 1995 warning of an unseemly deal between the prosecutors and Mr. Bailey. An underling of Shaheen wrote back saying all is fine in this relationship. Eleven months later the Gov't sued Bailey.

Customs Agent Bourke warned Judge Paul on February 14, 1996, of the credibility problem with the prosecutors in the Northern District of Florida. Judge Paul ignored Bourke. Bailey won't.

21 Oct 1996 - Larry King Live (CNN) promises to air an interview with F. Lee Bailey this pm. "Flea" Bailey is of interest to all because his new law suit against the Feds peripherally (or maybe even directly) involves 4 drug-busting good guys, DEA G/S John Marcello, Customs' Paul Beaulieu, Ed Bourke, and former G/S Steve Swanson and their help in busting the biggest marijauna dealer in the world, Claude Duboc. Steve Swanson has authorized DEA Watch to investigate and report this story.
Before the air is cleared the American public will get the full story of the notorious dealings that went down in Florida involving the US Attorney's office with local and HQ DEA duplicity. The apparent goal, among others, was to ruin and discredit the careers of honest agents and informants just so Florida law enforcement could grab Duboc's millions.

20 Oct 1996 -DEA Watch has received requests to pursue Prosecutorial Misconduct cases and zealot OPR investigations. We are compiling a file on all cases brought to our attention. In that vein...

DEA just promoted Carl Lilley to RAC of Glenwood Springs, Colorado. Our research into the F. Lee Bailey/Claude Duboc case reveals Lilley and an AUSA in San Francisco named Lewis Davis at the heart of the problem as it relates to the informants in the case and the resulting Grand Jury investigation of career U.S. Customs agents Paul Beaulieu and Ed Bourke and DEA G/S John Marcello. The AUSA's in the Northern District of Florida are already "distancing" themselves from Lilley. What should Lilley expect from "stand up" Clinton appointed "prosecutors?" Seems the finger is also pointed at AUSA Davis and a Customs Agent named Greg Small. It's our bet when the rubber hits the road it will be Lilley and Small who will take the fall and not the AUSA's.

Lilley is perfect SAC material in the new Tom Constantine DEA. He was a State Trooper like Tom who, according to members of his former Gainesville office, was always more comfortable "hanging" around the U.S. Attorney's office than his own. One person said, "He fancied himself as a lawyer." Lilley will learn that if he hung around more cops than lawyers he'd have a better chance of riding-out the impending lawsuits. Lilley was present in Judge Maurice Paul's office when Kirwin informed the Judge that the Government had "delayed" forfeiture of 6 million dollars of stock trusting it to F. Lee Bailey. No court reporter was present, but DEA watch learned that the Judge sanctioned this transfer of stock after the fact. Bailey wants the Judge on the stand or off the case. Lilley once told another DEA agent, "Judge Paul is a Government Judge, he'll do anything the government wants in this case."

Many believe Lilley was an OPR "snitch" before the Duboc case. His former RAC was unable to control him. The office had a major OPR and Inspection problem. As a result the RAC was transferred to Headquarters. He retired rather than move. Lilley stayed on totally unsupervised. The new RAC, David Michael, couldn't wait to get rid of Lilley, so he touted him whenever some other office would consider him for promotion.

DEA watch has heard reports that then Miami SAC James Milford "dumped" Lilley using one of his two discretionary transfers. DEA Watch has learned that the IG is investigating Lilley and some of the AUSA's and their family members in the Northern District of Florida for possible trading on "inside information" in connection with stock tips from Duboc and attorney Bailey. U.S. Attorney P. Michael Patterson on Kirwin's advice permitted Duboc's stock purchased with drug money to be "parked" with Bailey in violation of SEC rules. A formal complaint was received at the SEC, but is not being investigated in this campaign year.

DEA Watch is interested in any information about AUSA's Tom Kirwin in the Northern District of Florida, and Lewis Davis in the Northern District of California, Customs agent Greg Small in San Francisco and Tom's new RAC in Glenwood Springs, Carl Lilley. Much more to follow on this matter.

18 Oct 1996 -Two years ago today Johnny Phelps directed two of his OPR investigators to place Los Angeles G/S John Marcello on administrative leave. Phelps' decision came shortly after Marcello reported suspected wrongdoing by members of the Gainesville DEA office and the United States Attorney's office in the Northern District of Florida regarding the F. Lee Bailey/Claude Duboc matter.

It has been reported to DEA Watch that one of the AUSA's, David McGee, the first Assistant under P. Michael Patterson, was recently asked to resign. According to court documents the other AUSA under Patterson, Tom Kirwin, was thoroughly discredited after Federal Court testimony he gave trying to defend his office's "delaying" the forfeiture of $6 million dollars in drug assets his office "safeguarded" in F. Lee Bailey's hands. (More on Kirwin and this case to come.)

At the time Marcello was placed on admin leave he was told that, among others, he was a "subject" of a Grand Jury investigation... initiated by the same USA and AUSA's he had expressed serious concerns about. Phelps' investigators (William) Simpkins and (Anthony) Ricevuto read Marcello the Miranda Warning then wanted to interview him. Marcello respectfully declined stating that he would be glad to talk to anyone providing he be given an administrative warning. Yesterday, 15 Oct 1996, two years and two Grand Jury's later, Simpkins decided to offer Marcello an administrative warning. This is the first contact Marcello has had from DEA management in two years.

When contacted by DEA Watch about his situation, Marcello, a decorated Vietnam veteran, said,"After 'Nam and 26 years as a DEA Special Agent every breath I take is a bonus. I thank God for making my life possible. Other than that, I have no comment at this time."

DEA Watch is digging in to this matter. More to come.

Phill Coleman, Editor