RESORT SEIZED BY MEXICAN DRUG AGENTS

They say evidence links hotel to cartel; owners deny charge

TIJUANA -- With its whitewashed buildings, Mediterranean architecture and
seaside views, the Oasis Resort Hotel & Convention Center could be taken for
some peaceful, sun-washed vacation spot on one of the Greek islands.

But this resort, about two miles north of Rosarito Beach, has become the
site of a tug of war between a Mexican government bent on rooting out drug
traffickers and a hotel ownership that feels it is being unjustly harassed.

Mexican federal narcotics agents, backed by elements of the Mexican army,
raided the resort Friday afternoon and seized control of its operation.

Hotel guests, including members of a Warner Bros. film crew working on a
movie at the Popotla film studio south of Rosarito Beach, were startled to
suddenly find themselves amid scores of young men in black fatigues toting
automatic rifles.

The heavily armed agents who patrolled the 150-room beachfront hotel were
called off yesterday afternoon after one of the resort's owners, Urbano
Hernandez Somero, pleaded with Gen. Josi Luis Chavez Garcma, head of the
federal Attorney General's Office in Baja California.

The reason given for the takeover was that the Attorney General's Office,
known by its Spanish initials PGR, had found evidence that the property
belongs to Manuel Aguirre Galindo.

Aguirre, alias "El Caballo" or "The Horse," is alleged to be a member of
the ruling council of the Arellano Filix drug cartel, based in Tijuana.

Major drug traffickers often buy into resorts, office buildings and other
expensive properties to launder drug profits through them. They hide their
involvement by using go-betweens known in Mexico as prestanombres, or
name-lenders. The traffickers put up the cash while the name-lenders sign
the papers.

Efforts of local news reporters to obtain comments from PGR officials in
Tijuana were unsuccessful.

However, the owners of Oasis held a news conference yesterday and angrily
denied having ties to the region's infamous narcotics trade.

"We are innocent," Hernandez told reporters. "All we ask is that you give us
a chance to prove it. There is no proof of any crime we have committed to
justify these acts (by the government)."

Hernandez acknowledged knowing Aguirre and said Aguirre once was part-owner
of the 10-year-old resort, licensed under the name "Oasis Tourist Complex."

But Hernandez said that he currently co-owns the resort with Aguirre's
mother, sister and son and that Aguirre sold out eight years ago.

However, the federal Attorney General's Office said it had confirmed that
the resort property belonged to Aguirre.

Hernandez said he was told by the raiding officers that they had both
authorization to seize the facility and a warrant to arrest an unidentified
suspect.

"They never showed me any warrants or any orders," Hernandez said. "They
never showed me anything. They looked around, and they didn't find anybody."

It's not the first time the PGR has raided the Oasis in an attempt to link
the resort to drug traffickers, Hernandez said.

"When they came last November, they didn't even bother saying they had a
warrant," he said. "They just said, 'We have orders from our boss.' "

The hotel owners are seeking a writ known as an amparo to protect them from
further government action.

But it may be too late to prevent the Warner Bros. crew from pulling out of
the hotel, making a move that could cost the Oasis up to $2 million in lost
revenue. Hernandez said he was to meet today with representatives of Warner
Bros. in hopes of persuading them to stay.