‘Highly mysterious’ China company owned both container ships in Philly Port drug busts

El Chapo is so last year.  

Meet Second Mate Ivan Durasevic of the container ship MSC Gayane, the world’s newest drug kingpin. In one of the biggest drug busts in American history, Duresevic is the highest-ranking man arrested so far.

But some see problems with this scenario. He’s only the ship’s Second Mate. So Ivan’s credit probably wasn’t quite strong enough for anyone to front him 16 tons of cocaine. 

Did he pool his capital with the other top henchmen in the drug ring? The criminal complaint names them: “The Chief Mate. The Electrician. An Engineer Cadet. Able Seaman F0nofaavae Tiasaga.”

In that group, Ivan is the kingpin. But although 16 tons of cocaine is nothing to sneeze at, doubts remained. It didn’t help that nobody had ever heard of Ivan before, or his group, which still lacked a name. 

One controversy can finally be put to rest, however. 

Two days after a Federal Task Force swarmed the docks of the port of Philadelphia and seized more than 16.5 tons of cocaine, there are those who still contend that America’s massive War on Drugs is good for nothing. 

But they’ve now been proved wrong. Because it is good for something.

It’s good for a laugh.

Finding joy in little things. Like naming a new drug cartel

When the world’s newest major drug trafficking organization arrived with a flourish this week, it offered opportunities that aren’t always felonies.

Like naming a new drug cartel.  How many times does anyone  get a chance to name a new drug cartel anymore? It seemed as good a reason as any to stick around for a few days.

Little known fact: I tried naming one once. The bunch in St. Petersburg.

Nothing came of it. They were a motley crew of ex-CIA hands, former military intel operators, Saudis like Adnan Khashoggi, Israelis pretending to  work for a telecommunications start-up. A former military pilot who may be the son of a former President of Pakistan.

The problem was the group had too much juice in Florida to ever spend a night in jail.

When one of their DC-9’s was busted in Mexico carrying 5.5 tons of cocaine, they didn’t break a sweat. They skated.

How hard can it be to make a group look notorious when none of them ever go to prison? 

Pretty hard, as it happens. So, there’s that.

Different strokes for different folks

St Petersburg is a retirement mecca, which may have turned off younger drug cartel aficionados.

Still, the place has got a lot of strip joints. So unless it’s just old guys hanging out in the strip clubs,  it’s a diverse community.

St Petersburg also has something else that’s a bit of a game-changer: The Shuffleboard Hall of Fame. So I named the drug traffickers at Clearwater-St Petersburg International Airport  “The Shuffleboard Cartel.”  

The name never caught on, because the men involved all too much juice to ever get caught and sent to prison.

Beside, this was Florida, after all.  When a DC-9 belonging to the politically-connected Republicans and ex-spooks out at the airport was caught carrying 5.5 tons of cocaine, they didn’t even break a sweat. 

Instead, they just back-dated an aircraft change of ownership form and faxed it to the FAA to show they no longer owned it… three days after the plane was all over the news for being busted in Mexico. 

They were the kind of guys who will someday maybe suffer a little unpleasantness. But not much. 

What do you think about ‘The Popeye Cartel?’

All that is known about the new drug trafficking outfit using box cargo container ships is in the criminal complaint, which is a little thin, and may not be accurate.

Still, the affidavit make clear that one thing can be counted on. The drug traffickers recruit heavily from the ranks of Able Seaman… 

That’s why I’m dubbing them “The Popeye the Sailor Cartel.”  Without a little local color news about the container cocaine ship scandal will go away fast. 

When he announced the BREAKING NEWS on Twitter, Eastern Pennsylvania U.S. Attorney William McSwain struck a positively giddy note that quickly turned petulant when responses to his tweet began rolling in.

The giddiness went away fast.  

“I thought the problem was the southern border??” someone asked.

“If they’re bringing in 16.5 tons on a ship in Philadelphia, imagine how many tons must be coming in over the border!” another tweaked. 

An obvious cynic somehow managed to quip and tweet at the same time. “Elaine Chao’s retirement fund for Mitch just got a set-back!”

That’s when US Attorney McSwain began getting a little hot under the collar. You could tell because he began using a lot more capital letters in his tweets. Still, who wouldn’t be miffed? His patriotic entreaties—all those millions of lives saved! —had fallen on deaf ears.

“Seems to me that ship was headed to Europe and the US just stole their cocaine,” replied another obvious cynic. “I’m sure it will find its way to a hood near you.”

Did no one tell McSwain that Twitter attracts cynics like a barbeque attracts mosquitos?  

Philly fans are the worst 

On that night of Philly’s biggest-ever Super Bowl of Drug Busts, local news showed screen grabs from the federal affidavit seeking a criminal indictment.

Apparently, there was a federal affidavit of probable cause filed in District Court in Philadelphia on Tuesday, until without warning the proceedings were sealed. A sympathetic Federal Court Clerk suggested I call U.S. Attorney McSwain.

Instead, the next day I contacted a sympathetic assignment editor at Philadelphia’s Local News 10, who—moved by the public’s right to know—passed it on to me in a rare moment I was proud to be an American.

We’re a great hope, but with a violent past. And when we’re let out on parole, it should be only with assurances.

In cases with a 16 tons of cocaine magnitude, sealing individual court files is common practice. But the wholesale pulling of an indictment already-made public — especially one for which many individuals has already been arrested— seemed to me to be highly unusual,as well as probably unconstitutional.

It was something I’ve never seen before. What was going on? Based on more than 15 years investigating drug moves gone wrong, which then become public knowledge, I think I have a pretty good idea.

But first I want to express thanks on behalf of a grateful nation to NBC-10 assignment editor John Taylor, whose station first aired images of the criminal complaint. Because of his very American courage, this nation’s citizens can read, despite U.S. Attorney McSwain’s Star Chamber ploy, a crucial public document in a major case. It was almost like living in a democracy.

Somebody buy that man a cheesesteak!

What’s troubling us currently

Even without perusing this slim 4-page federal affidavit, the scent of cover-up was wafting through the Halls of Justice in Philadelphia.

What did it smell like?  Burnt cheesesteak.

“There is also the curious question of why authorities moved in so quickly,” one law enforcement consultant in San Francisco told me.

“Regardless of who’s behind this major drug move, if you’re really chasing the top guys in a cartel, what you do is at least wait to see who shows up to pick up the drugs.”

“It’s not like you’re risking losing a guy getting away by slipping through the crowd carrying 16 tons of cocaine hidden beneath a bulky sweater.”

So, there’s that.

Count on democracy dying in darkness

The Washington Post removed any remaining doubt about the existence of a cover-up when the paper teamed up with the DEA to alert America to “What It All Means.’

“Traffickers are turning to East Coast seaports as a result of increased law enforcement pressure along the country’s southwest border.”

That there could be so much wrong in just twenty words is nothing short of incredible.  

Citing “law enforcement pressure along the country’s southwest border” as the explanation for why 16 tons of cocaine were found stashed on a container ship in Philadelphia could not be more wrong, or self-serving.

But what it illustrates that America’s annual $40 billion-plus budget for “The War on Drugs” provides enough to pay for some truly hellacious copywriting talent.

Other than our great job?

Might there be another more plausible explanation to explains why drug traffickers have begun stashing tons of cocaine—enough “to kill MILLIONS”—aboard cargo container ships recently?

If the company responsible for the massive drug moves, say, was also discovered to be the largest shareholder of Germany’s criminal Deutsche Bank?

Deutsche Bank’s involvement in laundering the proceeds from drug trafficking has already—and on numerous occasions— cost the bank massive multi-billion-dollar fines.

A company looking to create some real synergy with Deutsche Bank might warrant a second glance.

Then again, maybe not.

“MSC Gayane is a cargo ship owned by Swiss firm MSC Mediterranean Shipping Co.,” reported the Washington Post.  

The Post is in error in that statement and I hope not deliberately. Call me a cock-eyed optimist.

MSC—the Mediterranean Shipping Company, is headquartered in Europe, has U.S. operations in several American cities, and has 54 cargo ships in its fleet.

But they’re not MSC’s ships.

MSC— as any lawyer can tell from scanning the statement the company issued Tuesday afternoon—is just a logistics company.

“The company “is aware of reports of an incident at the Port of Philadelphia in which U.S. authorities made a seizure of illicit cargo,” the statement said.

“MSC takes this matter very seriously and is grateful to the authorities for identifying any suspected abuse of its services.”

(Italics mine. Can you blame me?)

“Unfortunately, shipping and logistics companies are from time to time affected by trafficking problems,” the statement drones on.

“MSC has a longstanding history of cooperating with U.S. federal law enforcement agencies to help disrupt illegal narcotics trafficking and works closely with U.S. Customs and Border Protection.”

You can see where this is going: “Don’t blame me, boss!

Here comes the funny part. MSC is a private company, owned by an anonymous and very private individual living in… Naples, Italy. 

Just a coincidence? One of those things?   

“While calling at Philadelphia,” in the lingo of the trade, another MSC cargo vessel, the MSC Desiree, was busted just three months ago, carrying a stash of cocaine worth $38 million.

Should investigators be examining the prospect that a single drug trafficking organization might be responsible for both drug moves?

Arguing ‘no” is the fact that Second Mate turned-kingpin Ivan Durasevic is not known to have been aboard the first vessel.  

According to the criminal complaint, Durasevic told authorities the cocaine was loaded onto the ship after leaving Peru. Tiasaga said six boats approached the MSC Gayane during the night.

Second Mate Durasevic operated the crane, swinging bag after bag of cocaine onboard. For numerous reasons to be explained later, I don’t believe that’s true.

“Worrying our world”

It’s a good thing that HNA Group has friends in high places across the globe. Otherwise frequent reports describing the company as “highly mysterious might give potential investors pause. 

Who does own the two naughty container ships: the MSC Gayane and the MSC Desiree? This is where the real story starts.  (If you’ve been reading in a hurry, you’ve lost some time. )

Finding the answer turned out to not be nearly as difficult as I thought it might be. Turns out, ownership ricochets back and forth between Bermuda, Norway, Switzerland, and God knows where else.

But it always ends in the same place.

It alwats ends in China.

Tracking the paper

Briefly, as no investment analyst anywhere ever said out loud, “Here’s the hot skinny.”

The corporate owner of both recent drug smuggling container vessls is SINOCEANIC SHIPPING AS.

In turn, SINOCEANIC SHIPPING is owned by soething called Sinudo. 

Last step. Who owns Sinudo?

China’s HNA Group 

And why is it, exactly, that busy people are going out of their way to learn as much as they can about it? Don’t ask me. I don’t know. At least not yet. 

China’s HNA Group has been in the eye of a “Help me I’m melting!” kind of life-or-death struggle for several years. But to understand that, we first need to take a look at the rags-to-sudden-riches and then to the Moon story of HNA Group, an organization that been cutting so many corners that it currently has no idea which way is up. 

Founded in 1993, HNA Group started off as a local airfreight company on the tropical island of Hainan. Then—under the leadership of the Mr. Slip-and-Fall and his partner Chen Feng— the company exploded.

From a puddle-jumper airline running junkets to a Chinese holiday island to  controlling Western assets of more than $238 billion dollars.

It is all way-beyond Beverly Hillbillies stuff. 

A last spree befor spring

When HNA Group went on an international shopping spree in 2015, nothing like it had been seen since, well, since the last time something just like it occurred. 

They bought airports in Europe, land in Hong Kong, luxury hotel chains around the world. Dozens of condos at One57. More. 

Until recently CNA Group had been successfully masquerading as one of China’s biggest fastest growing success stories. 

Maybe a little over-entended. Maybe. Because apparently while no one was the wiser the firm’s Western assets ballooned to more than $230 billion…

It ‘s a wonder they could feel anything at all. Imagine going from living on fumes to ruling an empire larger than half the nations on Gangster Planet. 

It had to be quite the adrenaline rush. I hope somebody took pictures. 

Long story short, eh?

Long story, uh, well I guess at least semi-long: Beijing cracks down on HNA Group’s risky debt-fueled financing that enabled their explosive expansion to begin with. 

Think of HNA Group as Michael Milken wearing a seersucker suit. 

The company hit an extra-squishy patch a  year ago. Imagine being in the middle of getting ready to go bankrupt—it’s a busy time, any corporate fraudster will tell you, and you’ve got money to hide!

And at that precise moment China’s HNA Group’s chairman experienced the ultimate “slip and fall.”

In a hilltop village in the South of France, he fell to his death.

Or did he?

He’d allegedly been trying to take a selfie atop a wall overlooking a straight drop of 50-feet into a primorial-looking ravine. 

Of course, his death was immediately ruled an accident. Still, it was not without controversy.

Out in force: Twitter cynics and conspiracy boo-birds. And, wait, who’s this? Lining up supporting the conspiracy theorists is someone… well, you’d never guess his name in a million years so I’ll have to tell you: 

None other than Steve fucking Bannon his-ownself, and I mean no undue disrespect, but it’s like this guy can feel the heat anywhere he goes. 

With him is a Chinese buddy, who’s a lot like him, really, in certain ways. The guy’s wanted for unauthorized breeding in Beijing.

But there’s no point in telling everything at once.

Return you shortly to your regular programming 

Today China’s HNA Group is seen as an increasingly desperate and quasi-criminal organization liable to do anything for a quick billion dollars.

It owned Western assets totaling $260 billion which it is been selling off as fast as it can.

HNA’s global expansion stalled. It was placed on a financial do-not-resuscitate list run by China’s bank god.

Now overseas regulators– us!–have begun probing HNA Group’s ownership. Their efforts have met with little success. Company management understands telling the truth could have bad consequences all around.  

And it must be said that some of the Americans and Brits involved with HNA Group would give anyone pause. 

Not—it must be emphasized— because they’re suspected of involvement in drug trafficking. But because they belong to what are usually called “The Usual Suspects.” 

It’s a big story, but one that should not be told too quickly. 

Well-placed examples of HNA Group’s patronage include American and British worthies from both sides of any aisle you can think of, including some who belong only to the “Party of Davos.”

Not that they’re somehow involved in drug trafficking. But even a casual perusal of HNA Group at anytime during the past two year’s reveals the dark outline of what can only be an elaborate criminal enterprise.

But there’s no point in unpacking any names yet, because getting inside the death of the company’s chairman promises to be a wild ride.

Stay tuned.