Pubdate: Thu, 13 Jan 2000
Source: Toronto Star (CN ON)
Copyright: 2000, The Toronto Star
Section: Pages: A1, A17
Contact:  http://www.thestar.com/
Author: Bob Mitchell, Toronto Star Peel/Halton Bureau Chief with files from
Peter Edwards, Jim Rankin, Joseph Hall and Bageshree Paradkar

HIGH-RANKING PEARSON OFFICIAL IN DRUG BUST

Seven Toronto-area men face extradition for trial in the U.S.

An airport manager and six other Toronto-area men the FBI and RCMP say are
players in a multi-million dollar drug smuggling and money laundering scheme
face the prospect of being tried in the United States.

In November, behind closed doors in a Virginia grand jury hearing room, a
group of American citizens heard the case against the Canadians and decided
they should be charged.

Yesterday, in a series of pre-dawn raids, the RCMP executed extradition
warrants against seven startled men - including a manager at Pearson
International Airport - in what they and the FBI allege is an organized and
sophisticated ring.

It's alleged the manager, 38-year-old Daniele Carlo Cappa of Maple, was part
of a group that purchased drugs from a supplier in south Florida and then
smuggled at least $15 million worth of cocaine and hashish into Canada
between February, 1998 and July, 1998 for distribution in the Greater
Toronto and Montreal markets.

Investigators allege that after the drugs were sold, Cappa used his position
to transfer the money out of Canada to the U.S., bypassing customs and
security officers.

Cappa, who works out of Terminal 3, is one of nine or 10 terminal
supervisors who deal with issues arising from the airport concessions, such
as restaurants and stores, said Lou Turpen, president of the Greater Toronto
Airports Authority, which oversees the airport's operations. There is always
a supervisor on duty, he said, adding the authority contracts out the work
to Airport Group Canada Inc.

Officials with Airport Group Canada refused to comment on Cappa's arrest.

A police source said Cappa was in charge of everything from cleanliness to
staffing. He didn't have any authority over law enforcement at the terminal,
sources said.

However, another police source close to the investigation said Cappa would
have had the kind of clearance that would have enabled him to bypass customs
and security.

``Even though he had no control over customs, he would have had the ability
to divert customs . . .'' the source said.

``He was the terminal manager for Terminal 3 and he would have been in
charge of everything on the private side of the airport.''

At the centre of the alleged ring, investigators say, is Nestor Saumell
Fonseca, 32, of Brampton.

RCMP Inspector Ron Allen described the other five men arrested yesterday as
``soldiers'' in the organization, alleging they brought the illegal
narcotics into Canada, and secreted profits back to the U.S.

``What started out as an investigation targeting an individual uncovered a
cross-function of activities from cocaine and hashish trafficking to money
laundering and jewelry smuggling,'' he said. ``This was a sophisticated
group in the sense that they had people in key positions that were able to
help them facilitate their criminal activity.''

FBI spokesperson Susan Lloyd in Washington said U.S. authorities would be
seeking extradition for all of the accused.

Police say Cappa was arrested while working at Terminal 3 and the rest of
the men were awakened during early-morning raids at their residences.

The arrests followed a two-year probe involving the RCMP, agents with the
FBI in Washington, Miami drug enforcement officers, Canada Customs, the
Greater Toronto Airports Authority and Revenue Canada.

In the summer of 1998, the RCMP became aware of an FBI investigation into
the alleged ring, Allen said.

``Their investigation resulted in a cocaine seizure of about 10 kilograms
from a train in Washington. The train was on its way to Toronto from south
Florida.''

During the joint probe, the RCMP in Montreal seized 1,200 kilograms of
hashish with an estimated street value of $12 million.

``Also during the investigation, we were able to detect that jewelry was
being smuggled into Canada for resale,'' Allen said. ``Some 22 kilograms of
European gold jewelry and stones valued at about $837,500 were seized by
Canada Customs in Toronto.''

On Nov. 10, all seven were indicted by a grand jury in Alexandria, Va., on
charges relating to conspiracy to possess with the intent to distribute
cocaine and the forfeiture of drug-related assets.

Also charged were Jose Rivera, 56, of Brampton, Nikolai Petrov Chilikoff,
25, of Toronto, John Kavaratzis, 38, of Toronto, Arthur Alajajian, 38, of
Newmarket, and Maurice Catenacci, 35, of Newmarket.

Fonseca, Kavaratzis and Catenacci appeared briefly yesterday in a Toronto
court and were held in custody. Cappa, Rivera and Petrov are scheduled to
appear this morning in the same Toronto court.

There is nothing unusual about Canadian police making arrests for U.S.
authorities.

``This happens, like, 150 times a year in Canada,'' said Frank Addario, a
Toronto criminal lawyer who has handled many extradition cases.

``It's not unusual.''
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