U.S. PROSECUTORS FIGHT ALLEGATIONS IN '96 TRIAL OF DRUG CARTEL KINGPIN

An attorney for a former government informant said the United States and
Mexico offered her client $3 million in rewards for the capture of drug
kingpin Juan Garcia Abrego, but the U.S. government later reneged on its $2
million share of the offer, according to documents filed Friday by
attorneys for the U.S. government.

Federal prosecutors used the remarks made by attorney Raquenel Villanueva
in an interview with Mexican newspaper reporters to defend against
allegations that government agents suborned perjury from star witness
Carlos Resendez and hid exculpatory evidence in the 1996 trial of the
former head of the notorious Gulf Cartel.

But in 150 pages of briefs and exhibits, the prosecutors never said whether
Resendez was paid a reward, how much, or when. Instead, they attacked
defense attorneys for offering only hearsay evidence of the alleged perjury
and misconduct.

In September, Garcia Abrego's attorney Michael Pancer filed motions for a
new trial, an evidentiary hearing and additional discovery. Pancer charged
that defense attorneys had discovered evidence that Resendez was promised
$2 million and other perks in return for his testimony against his former
boss, Garcia Abrego. Pancer also alleged that government agents instructed
Resendez to lie to defense attorneys and a Houston jury about the reward
and about Resendez's role in Garcia Abrego's arrest.

Villanueva said she believes her client Resendez entered the U.S. witness
protection program after two incidents in which he feared an attempt would
be made on his life. The attorney's comments to the Mexican press do not
recount the substance of conversations between Resendez and U.S.
prosecutors or agents. She did not comment on what promises U.S.
authorities made to her former client, or whether they encouraged him to
give false testimony. Nor does she say when Resendez replaced her with
Houston attorney Randy Schaffer.

But federal prosecutors contend such proof is not necessary. They
challenged attorneys for Garcia Abrego to offer concrete evidence they
suborned perjury and hid exculpatory evidence in Garcia Abrego's trial.

In court documents, Assistant U.S. Attorney Kathlyn Snyder said Garcia
Abrego's attorneys have, thus far, offered only inadmissible, hearsay
evidence that Resendez lied about four critical issues:

* That he was responsible for Garcia Abrego's capture. Garcia Abrego's
attorney Pancer maintains Resendez's former mistress, Noema Quintanilla,
actually arranged Garcia Abrego's arrest and ultimately collected a $1
million reward from the Mexican government.

* That prosecutors promised Resendez $2 million, a house, a ranch and other
compensation for his testimony.

* That government agents encouraged him to lie about his role in Garcia
Abrego's capture and the reward.

* That the government only agreed to provide protection for Resendez and
his family.

The defense motions were based on an affidavit offered by private
investigator Manny Lopez, who interviewed Resendez and Villanueva. The
affidavit states that Villanueva was present when prosecutors offered
Resendez the reward -- and heard them instruct him to keep it a secret from
defense attorneys and the jury. It also recounts statements by Resendez
that he was later paid $1 million of the reward by FBI agent Peter Hanna.

In addition, the defense motion claims that the U.S. government agreed to
purchase Resendez's real estate holdings in Mexico; pay him $3,000 per
month until he received the $2 million reward, agreed to protect him and
his family, confer citizenship on them and provide Resendez with a job.

But Lopez's affidavit isn't good enough, said Snyder. "Garcia Abrego has
failed to offer competent evidence that the evidence he describes as newly
discovered exists," the government's brief states. "Instead he has only
proffered the hearsay affidavit of a private investigator employed by his
attorney."

Furthermore, the evidence defense attorneys claim to have does not have a
bearing on Garcia Abrego's guilt or innocence, but only on the credibility
of the witness. That alone is not grounds for a new trial, government
attorneys contend.

Resendez, purported to be the financial brains of the cartel hierarchy, was
one of two witnesses who offered firsthand testimony about the day-to-day
workings of the Gulf Cartel during the two-month trial. His testimony was
by far the most damning of the trial and Garcia Abrego was ultimately
convicted of 22 counts of drug trafficking, conspiracy, money laundering
and operating a continuing criminal enterprise.

The first drug trafficker to be put on the FBI's 10 Most Wanted list,
Garcia Abrego's arrest on Mexican soil was hailed as a triumph for the
binational drug effort. U.S. District Judge Ewing Werlein sentenced the
drug kingpin to 11 life terms.

Regarding defense claims that prosecutors suborned perjury, Snyder said
defense attorneys must prove the testimony was false, that prosecutors knew
it and that the falsehood was material. There again, Garcia Abrego's
attorneys have offered no evidence that Resendez lied or that prosecutors
knew it. And even if they did, such a falsehood is not so serious that it
would have changed the outcome of the trial, prosecutors contend.

Snyder maintained the government disclosed all funds paid to Resendez to
protect him and his family before the trial.

She also recounted Resendez's testimony that he was eligible for a reward,
but had no plans to apply for it. If Resendez were paid a post-trial
reward, such would have no bearing on his testimony at trial, she said. She
reminded Pancer that defense attorneys cross-examined Resendez about
payments he had received from the government before the trial.

She said the defense has no right to information about money that might
have been paid to Resendez after the trial.

Werlein is expected to allow Garcia Abrego's attorneys time to respond
before ruling on the motion for a hearing.