Pubdate: Tue, 28 Apr 1998 Source: San Diego Union Tribune (CA) Contact: http://www.uniontrib.com/ Author: Gregory Gross 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.