THE ASHCROFT AFFAIR - HOW AMERICA INVESTIGATED DRUG TRADE LINKS

THE conviction and jailing of Thomas Ricke for laundering money through
Michael Ashcroft's Belize Bank was cited in the House of Commons yesterday
as one of several incidents that link the Tory party treasurer to American
investigations into the drugs trade.

The documents to which Peter Bradley, Labour MP for The Wrekin referred,
some of which have been seen by The Times, appear to contradict this week's
statement from the US Department of State that the US Government has never
"raised specific concerns about Ashcroft with either the Belizean or
British Governments".

The information seen by The Times shows that Ricke was convicted of being
the leader of a gang that imported ten tonnes of marijuana into the US, and
then laundered $700,000 of the proceeds through Belize. Court files show
that at least $25,000 went through Ricke's account at Belize Bank, owned by
Mr Ashcroft's company since 1987.

According to files maintained by the US Drug Enforcement Administration,
Ricke also attempted to launder money by buying property in Belize. In
1990, a courier delivered $400,000 to "an individual in Galveston known
only as 'Big Bob' . . . [The courier] advised agents that 'Big Bob' was
residing in Belize and overseeing Ricke's property there".

Documents show that Ricke and another associate made two trips to Belize
between mid 1989 and June 1990, contacting Corry McDermott, an Irish real
estate salesman, "for the purpose of locating offshore investment property
and banks". Ricke was also introduced to another man who, according to a
DEA agent in Belize City, "has a reputation for being associated with
money-laundering and narcotics activity".

Peter Jerosz, the assistant US attorney in Phoenix, Arizona who prosecuted
Ricke, said: "It was a significant case in terms of the amount of marijuana
they brought in and the amount of dollars involved. Any time you have a
system where you have secrecy that automatically draws people."

Yesterday, Mr Ashcroft said he had not heard of the Ricke case before, and
that he had only "exchanged a few words with [Corry McDermott and his
brother] on the rare occasions that he has bumped into them".

Mr Bradley also told MPs of how in 1994 Mr Ashcroft was referred to in a
DEA report which sensationally said it was looking into "possible air
smuggling/money-laundering activities under way by Michael Ashcroft".

The MP said the plane used was owned and piloted by two suspected
drug-traffickers. The report of the investigation by the DEA notes that Mr
Ashcroft's name is on records kept by Naddis - the Narcotics and Dangerous
Drugs Information System that the DEA uses to keep track of the individuals
and companies that figure in its investigations into drug traffickers and
their associates. As The Times reported yesterday, Naddis is intended to
exclude "business firms or vessels which are just incidentally involved".
However, having a Naddis number does not imply that charges might be
brought against that person or even that he or she is a key suspect.

In another case mentioned by Mr Bradley, Mr Ashcroft was mentioned in a
1989 investigation into drug-trafficking between Europe and North America.
It is understood this was Operation Icetrack, which also involved Jean
Laurent Andreani, the son of the drugs boss who, Mr Bradley said, was
"immortalised" in the film, French Connection.

Another DEA inquiry in 1993 sought information on numerous companies,
people and organisations that have featured in Mr Ashcroft's career -
including ADT, Belize Holdings, British Car Auctions and its sister
companies in Mississippi and Dallas.

Mr Ashcroft has said: "I have never been involved in drug-trafficking or
money-laundering. My business affairs are entirely proper and no amount of
smear, rumour, or innuendo will alter that fact."

He has also suggested the Belizean economy is too small, and that its
financial system holds too few US dollars, to make it attractive to
money-launderers.