U.S. and Hong Kong (2003)

Fact Sheet -- Claude Duboc Case

July 2003

Since February 1994, the U.S. Drug Enforcement Administration and the Hong Kong Customs and Excise Department, along with numerous international law enforcement agencies, have conducted an investigation into an international drug syndicate that laundered its proceeds through the acquisition of properties in the United States and France. The properties were owned by Hong Kong-registered companies controlled by the drug syndicate.

In March 1994, one of the syndicate's heads, Claude Duboc, was arrested in Hong Kong and extradited to the United States. After his arrest, the Hong Kong Customs and Excise Department searched the premises of nine companies in Hong Kong and confirmed that Duboc was one of the owners.

Duboc's arrest was the culmination of an ongoing international investigation into his marijuana smuggling and money laundering syndicate. Since the early 1980's, Duboc's organization had imported approximately thirty tons of marijuana or hashish per year into the United States.

The US $2.9 million presented to the Hong Kong Government today represents part of the assets seized during the case. Today's check is in addition to US $900,000 in assets presented in June 2000 by Director Barry McCaffrey of the U.S. Office of National Drug Control Policy. In all, the United States has given Hong Kong approximately US $4 million dollars for its integral contributions to the case. The Hong Kong Customs and Excise Department conducted an extensive financial investigation into the Duboc syndicate and traced its funds, discovering US $10 million in offshore accounts. The total assets seized so far in the Duboc case total approximately US $100 million.

After pleading guilty to conspiracy to import narcotics and to laundering drug money in 1994, Duboc was sentenced to life in federal prison. After his sentencing, the confiscation proceedings were suspended. U.S. courts are still involved in ongoing litigation over the seizure of assets and an appeal Duboc filed with the U.S. Court of Appeals claiming ineffective assistance of counsel.

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