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          At the request of Jacob, his wife Miriam and Congressman Chris Smith, Chairman, House Subcommittee on Human Rights, House Foreign Affairs Committee, I provided the following Investigative Report to Congressman Smith's office. It details the illegal detention of Mr. Ostreicher as well as the inhumane conditions of his captivity. The two photographs above were taken one year apart. The photo on the left is Jacob within days of his arrest, and the photo on the right is Jacob last week, 75 pounds thinner. Time is of the essence.

          Last week, Congressman Smith forwarded this report to the U.S. State Department who in turn, presented it to the office of the United Nations High Commissioner for Human Rights. 

EXECUTIVE SUMMARY

         JACOB OSTREICHER is a citizen of the United States of America who went to Bolivia to manage (in the short term) an agricultural company dedicated to rice production in Santa Cruz De La Sierra, Bolivia. At no time did Mr. Ostreicher or his company violate any law; Bolivian, international or American.  Even so, without specific charge and without opportunity to obtain bail or even plead his innocence, he has been arrested and incarcerated at a prison in Bolivia for (at this writing) over a year. The prison does not meet international standards for humanitarian conditions or treatment, and there is no indication and little hope that Mr. Ostreicher will receive a hearing for bail, or even a trial in which to answer the unsubstantiated allegations. His incarceration is for all intents and purposes, open-ended.


         All indications point to the almost inescapable conclusion that Ostreicher is in prison because his farming endeavor showed the potential of causing embarrassment for the Evo Morales government. It is an obscene irony that Jacob, whose mother was a ‘Holocaust’ survivor, is now, 67 years later, imprisoned in a squalid prison he may not survive, simply for reasons of political expediency.

    The arrest of Mr. Ostreicher, the conduct of the Bolivian government and his continued incarceration without legal recourse are violations of Bolivian law, international law, and international standards of human rights.

INVESTIGATOR

STEPHEN MOORE
          This investigation was conducted by Stephen Moore, a 25 year FBI Agent who retired from the Bureau in 2008. Mr. Moore’s expertise is in the investigation of terrorism and violent crime, but he has also investigated narcotics trafficking and major fraud. Mr. Moore, as supervisor of the Los Angeles FBI’s Extra-Territorial Squad, Al Qaeda Squad and as a term Assistant Legal Attaché to the Bahamas also has extensive experience in working with and understanding the justice systems of other governments.

         At the International Law Enforcement Academy in Bangkok, Thailand, as well as individual seminars in Manila, the Philippines, St. Croix, U.S. Virgin Islands, and Honolulu, Hawaii, Moore has instructed police personnel from approximately 30 different nations and lectured on such topics as fundamentals of investigation, rights of the accused, and terrorism.

         Supervisory Special Agent Moore operated in approximately one dozen separate countries in Asia, Europe, the Middle East and the Caribbean. At one point, he was responsible for the investigation of all acts of terrorism against the United States which occurred in Asia and Pakistan. He supervised agents positioned in (among other countries) Thailand, The Philippines, Indonesia, Pakistan and Greece.

            During his tenure in the FBI, Special Agent Moore also investigated alleged police misconduct, at least once recommending prosecution against the chief of police of a particular municipality for malfeasance, cover-up of illegal activities and falsification of investigative documentation in order to protect himself.

            Mr. Moore, as a Special Agent, received multiple awards from the United States Department of Justice and the FBI for excellence in investigations. 

INVESTIGATIVE STEPS TAKEN

            Mr. Moore has obtained all available court documents, all defense documents, the entire ‘investigator’s book’ of the Bolivian police, reviewed all relevant history on Mr. Ostreicher’s activities in Bolivia, reviewed company records, and traveled to Bolivia to interview Mr. Ostreicher and other individuals. He spent three days in Palmasola prison and spoke to members of the former government, other prisoners, and attorneys who defend the incarcerated at Palmasola prison.

         Besides the Ostreicher case, Mr. Moore has donated his time to the defense of several Americans and foreign nationals wrongly incarcerated in foreign prisons, including Amanda Knox and Raffaele Sollecito (an Italian citizen), who were released after four years in prison for a murder with which they had nothing to do. 

BACKGROUND

JACOB OSTREICHER
         Jacob Ostreicher is a 53 year old father of five and grandfather of eleven. He is married to Miriam and has for years run a successful flooring company in his home city of New York City, USA. Jacob is an Orthodox Jew and the practice of his religion is demonstrably paramount in his life. This investigator has spent many days with Mr. Ostreicher, his wife and family and has spoken with many of his associates. Mr. Ostreicher’s dedication to his religion, his ideals and his values are believed to be unimpeachable. He is known in his community as a generous, honest businessman.

         During World War II, the Ostreicher family fled Nazi-held territory. Jacob’s own mother is a Holocaust survivor. The Ostreichers, in an attempt to avoid losing their life savings, moved their assets to Switzerland during the war. Most of the family ultimately immigrated to America, where Jacob was born. However, they left their investments in Switzerland, and in 2008, the family trust was run by one André Zolty, an attorney and investment advisor who the family has trusted for decades.

         In 2008, the United States economy was in a deep recession and Mr. Ostreicher’s flooring business was experiencing a drastic reduction in business. In speaking with Mr. Zolty about this, Jacob learned that Zolty had recently begun to invest in a rice-growing venture in Bolivia.

BOLIVIAN ENTERPRISE

         Zolty, who resides in Switzerland, had hired a law student to do legal research for him. Her name was Claudia Liliana Rodriguez Espitia (“Rodriguez”). Rodriguez claimed to be a wealthy Colombian national whose mother, she said, was one of the most prestigious judges in Colombia. She had traveled to Switzerland to obtain a law degree, and each day arrived at school in a chauffeur-driven vehicle. It is unclear whether the idea for rice farming in Bolivia originated with Zolty or Rodriguez, but ultimately, Zolty gathered a group of investors and hired Rodriguez to move to Bolivia and manage the endeavor due to her overall competence, her familiarity with the culture and her ability to speak the language. She was given power of attorney and began buying land, hiring workers and commenced with the process of deforestation of the future farmland.

       This was a complicated process that involved procuring thousands of acres of forested and non-forested land, deforesting the land, building facilities including silos, warehouses and residential facilities for the workers, as well as contracting for trucking, packaging and other commercial services. All moneys sent to Rodriguez were wired through the UBS Bank of Switzerland and were processed through the Central Bank of Bolivia in order that the money, documentation and procedures were legitimate and above suspicion. Records support the legitimacy of these transfers. Approximately $20 million USD was advanced to Rodriguez in the initial years of the venture. It was during this time that Jacob became a minor investor in the project.

 FIRST SIGNS OF TROUBLE

          The investors expected standard documentation of purchases and outlays, as well as general accountability and financial records, but these became increasingly difficult to obtain from Rodriguez. After over a year of this difficulty the investors became concerned. Zolty requested that Ostreicher travel to Bolivia and investigate the situation, which he agreed to do.

         Upon arrival in Santa Cruz, Ostreicher found a disaster. Rodriguez had disappeared with millions of the dollars wired to her. While some land had been purchased and significant farming had occurred, the vast majority of the money had simply disappeared.

         Many of the properties allegedly purchased with investor money had not been procured at all. Employees had not been paid; equipment which should have been purchased was instead financed, allowing Rodriguez to pocket the majority of the money. Some of the purchased land was actually purchased “personally” by Rodriguez in her name. The vast rice farming venture was producing less rice than investors had paid for (yet still a substantial amount) and  was in essence, a shell of the company the investors had funded.

 EXTENT OF LOSS

      After researching and investigating, Ostreicher found the following information about the actions of Rodriguez:

1.      Only 1/3 of the purchased land had been deforested, though investors paid to have the entirety of the land deforested.

2.   $3 million USD was provided to Rodriguez for the construction of silos and warehouses. However, the structures which had been built were structurally unsafe and eventually failed and/or collapsed. It is likely in the estimate of this investigator that Rodriguez pocketed approximately $2 million USD by utilizing substandard builders and material.

3.      The second parcel of land purchased had been purchased in Rodriguez’ own name and at half the price she told investors she paid. The remaining amount of the provided money was missing.

4.      The third purchased parcel was also put in her Rodriguez’ own name. However, she attempted to purchase this land with a personal check for the equivalent of $3.5 million USD. She then upgraded the parcel with $2.5 million USD of improvements for the purpose of growing rice. However, her personal check was returned for insufficient funds. She delayed the owners of the land by showing proof of business ties with a Swiss investment group and promising a check from them. Eventually, however, the owner filed suit against her.

5.      Rodriguez had shown proof to the investors that absentee-owned property in Bolivia must be used for agricultural or ranching purposes of some kind or it would be confiscated by the Bolivian government (true). In order to meet this requirement, she received money to purchase 5,000 cows for $1.6 million USD. Ostreicher found that no cows had been purchased, but that Rodriguez had obtained the wired funds in cash.

6.      Hundreds of thousands of dollars wired to pay for machinery, equipment and chemicals were pocketed by Rodriguez and the equipment, etc., was obtained on credit.

It is the opinion of this investigator that the behavior and actions of Rodriguez are consistent with the modus operandi of an experienced perpetrator of fraud. In large fraudulent schemes, some of the money received is used to conduct the business as promised so as to reduce suspicion and ensure that additional funds are received from the investors. Meanwhile, the vast majority of the money is taken by the individual(s) perpetrating the fraud. Indications are that Zolty may not have conducted a complete background investigation on Rodriguez before entrusting her with the project.

     As a result of Ostreicher’s findings, Zolty transferred power of attorney from Rodriguez to Ostreicher and asked him to remain in Bolivia and sort out the problems. Ostreicher agreed and took positive steps:

1.      Mr. Ostreicher found that inexplicably, the company which Rodriguez had (LAGRO SRL) was in her name only, and so he was unable to dissolve the corporation. However, he took steps to limit the liability and further involvement of the investors. To wit:

a.       A team of lawyers began compiling case and initiating civil charges against Rodriguez.

b.      On 3/20/2011, Ostreicher took out a large advertisement in the main Bolivian newspapers (See Appendix III) with a notification that Rodriguez did not and could not represent the interests of the company, and offered a reward for information on her whereabouts. (He was almost immediately contacted by other individuals and companies in Bolivia and Brazil who were victims of Rodriguez, one of which had been taken for the equivalent of $1 million USD).

2.      In the name of the investors, Ostreicher formed a new company named “COLIAGRO” to differentiate themselves from the previous company, which was being operated by Rodriguez, who was defrauding the owners.

In this investigator’s experience, none of the remedial actions taken by Ostreicher after reaching the conclusions about Rodriguez are consistent with the actions of any individual involved in narcotics trafficking or money laundering. In fact, these actions would be highly counter-productive and risky for someone involved in narcotics trafficking or money laundering.

        While cleaning up the financial chaos caused by Rodriguez, Jacob’s attorney had been contacted by the owner of the property which Rodriguez had attempted to purchase with a personal $3.5 million USD check, upon which she had then made $2.5 million USD of improvements.  The owner’s name was “Ozzie Dorado.” Dorado seemed to be very reasonable after learning of Ostreicher’s situation.

         An agreement was reached wherein COLIAGRO would be allowed to harvest the rice planted on the disputed property in consideration of their substantial investment in improving the property. Following the harvest, Dorado would negotiate with COLIAGRO for the sale of the property.

BOLIVIAN INVESTIGATION #1

          FELCN (Fuerza Especial de Lucha Contra el Narcotrafico “Special Force to Fight Drug Trafficking”) investigators appeared at COLIAGRO offices and alleged that the owner of the land which Rodriguez had attempted to buy, and that COLIAGRO was currently farming was owned by a drug dealer. The FELCN had found COLIAGRO workers and equipment on that land, and they conducted a search of COLIAGRO’s and Ostreicher’s office and requested a deposition from him. Ostreicher agreed and explained the entire situation, providing open access to all company documents. The FELCN investigators were unfamiliar with Rodriguez and her involvement in the land owned by Dorado. With Ostreicher’s help, they were able to locate and arrest Rodriguez.

ALLEGED “LINK” TO NARCOTICS TRAFFICKING

          Unknown to Ostreicher was that Rodriguez had initiated a romantic relationship with Dorado which was unknown to Ostreicher. This relationship is the likely reason he allowed Rodriguez so long to come up with the purchase money for the land before filing suit. Also unknown to Ostreicher that Dorado’s brother, Maximiliano Dorado, co-owner of the disputed property was a narcotics fugitive from Brazil who had allegedly murdered prison guards during an escape.

          The prosecutors in charge of the case, Marina Flores and Alvo laTorre were able to arrest Dorado and Rodriguez, after which they deported Maximiliano Dorado to Brazil. They thanked Ostreicher for his assistance and advised that he would be able to re-establish farming on the disputed land within a matter of days.

BOLIVIAN INVESTIGATION #2

     At this point, and for unknown reasons, the two original prosecutors were removed from the case and two others appointed: Janet Flores Luna and Roberto Acha.

       The new prosecutors inexplicably raided the COLIAGRO offices and seized equipment and property at the farms valued in the millions of dollars. They required a second deposition, and Jacob became concerned because it did not seem to them that the facts of the matter were of primary importance, but they seemed to be working on questions and topics which pointed toward a pre-conceived conclusion which involved the seizure of COLIAGRO’s assets.

     Following this declaration/deposition, Ostreicher traveled to LaPaz to discuss his concerns with the U.S. Embassy in that city. This investigator finds that action at odds with any possible actions which would be taken by an American involved in illegal narcotics trafficking. The embassy saw no reason that Ostreicher should be concerned about the Bolivian government actions. Following this deposition/declaration, Ostreicher returned to New York for personal business and returned to Bolivia, which further establishes that his intent and purpose in Bolivia was a legitimate business, and that he felt he had nothing to fear (at least as far as criminal suspicion) from the Bolivian justice system.

        A third deposition was then requested for a specific day; which turned out to be a Jewish holiday on which Jacob had planned to be with family in New York. He had pre-purchased airline tickets, and the prosecutors contacted the airline to verify that the tickets had already been purchased. Jacob then offered to provide the deposition prior to his departure for New York.

        This declaration was conducted on June 3, 2011 at the FELCN office and lasted only two hours, in stark contrast to the much longer previous declarations. However, at the conclusion of this declaration, Ostreicher was arrested and placed in a cell with no chair, no bed, and no latrine facilities. Its concrete floor was covered in human feces. Jacob spent four days in the cell, during which time he was mocked and laughed at by prosecutor Velarde Luna, who asked Ostreicher if he was “comfortable” on the floor of the concrete cell and advised him that he was not, he should contact his lawyer. Laughing, she walked away.

        Jacob was not told at the time why he had been arrested, and he has not been free since that arrest. 

"INVESTIGATOR'S BOOK"

          It is common practice among investigators world-wide to create an “investigator’s book” or “investigation book” which details each step taken in the investigation as well as each document, evidence receipt, etc. which is collected as a result of the investigation. The FBI uses a variation of this format known as the “Case File.”

          An investigator’s book or case file is ideally a serialized document which will outline the steps of the investigation, and give insight and clarity to the investigative steps taken by the detectives, prosecutors and/or other involved persons. The serialization is necessary to prevent “removals/extractions” or “additions” to the file in order to bolster the case or remove problematic investigative steps, including falsification of evidence, changing of dates, etc. In the FBI, the serialization of a file is necessary inviolate, as one of the main function of the FBI is the investigation of allegations of police misconduct.

          This investigator has now reviewed approximately 1,800 pages of the “investigator’s book” on the case of Jacob Ostreicher. Several issues were immediately apparent:

1.      The investigator’s book is not serialized. Due to this omission, the date of entry for each document cannot be verified, and the reader cannot be assured that documents have been entered out of order, that documents have not been removed, and that documents have not been added when expedient for the investigator’s goals/motives.

2.      The book merges the investigation of at least seven persons without showing connections between each. It therefore inescapably leads to the incorrect conclusion that if one individual in the file is guilty of a crime, that the others are too. This is an incorrect and potentially tragic practice.

3.      There is no evidence, testimony or documents which show in any way that there was a connection between Jacob Ostreicher and the main suspects in the crime, and certainly no connection between their activities.

4.      In 1,800 pages, there is not a single testimonial allegation by any individual that Jacob Ostreicher was in any way shape or form involved in any crime.

5.      The “book” documents the seizure of literally millions of US Dollars of rice farming equipment, for reasons not fully explained. The whereabouts of this equipment is unknown.

6.      With the exception of his depositions/declarations, Ostreicher’s name appears in less than a dozen of 1,800 pages.

7.      At no point in any interview is Ostreicher implicated by any person in any crime.

8.      In 1,800 pages, this investigator could find no indication that Jacob Ostreicher committed a crime, or was even accused of a crime by anyone but the prosecutors

LACK OF FINANCIAL RECORDS

          Of greatest concern to this investigator, and most indicative of the charges and the investigation of the alleged crime, there are no financial records among the 1,800 pages.

          This is a crucial, inexplicable and catastrophic omission. Mr. Ostreicher has been accused (though never charged) with “money laundering” and “illicit enrichment.” Both are financial crimes. Yet, there is a complete lack of ANY forensic examination of the finances of the various individuals except for anecdotal accusations. Not a single spread-sheet, not a single flow-chart, bank record, check, not a single link page showing where money came in and where it went out are present. Not a deposit slip, not a flow chart, not even a single ATM receipt.  One could no more diagnose a financial crime without financial records than a doctor could diagnose leukemia without a blood test.

          The investigation of money laundering is a complex and records-intensive endeavor. The stark lack of any apparent financial investigation at all leads one to wonder how any prosecutor has any reason to believe that Jacob Ostreicher has committed any crime.

"LEGAL" PROCEEDINGS

FIRST BAIL HEARING

Prosecution Allegation #1:

          The morning after Mr. Ostreicher’s arrest, he was brought before Judge Fernando Orellana.

          In testimony before the court, prosecutor Janet Velarde Luna alleged that André Zolty, the principal of COLIAGRO was at that moment being investigated in Switzerland for money laundering. While making this claim, he held in his hand a document he inferred was the proof of this allegation.

INVESTIGATIVE FINDINGS ALLEGATION #1:

ANDRÉ ZOLTY WAS NOT THEN, NOR HAS HE EVER BEEN UNDER INVESTIGATION FOR ANY CRIME.  There is no evidence that André Zolty was then or ever has been under investigation for any crime for any reason by any organization.

This was verified by the Swiss National Police in a written affidavit the same week. (See Appendix III). The allegations made by Luna which led to Mr. Ostreicher’s initial incarceration were therefore demonstrably false and a knowing and intentional fabrication. No information existed in Switzerland or Bolivia which would have supported such a claim. Luna either made the story up, or checked Zolty’s background, found it flawless yet still lied to the court. This throws into doubt any further unsubstantiated statements by Luna or the prosecution team, in or out of court. It also casts a shadow on the motives of Luna and/or the Bolivian government.

Inexplicably, the court did not request any proof of Luna’s claim of Zolty’s connection with “money laundering.” Accepting an unsubstantiated allegation is a method of arbitrarily confining an individual.

Prosecution Allegation #2

          Luna then alleged that “through investigation” the FELCN had determined that Ostreicher had planned to “flee the country” the next week.

INVESTIGATIVE FINDINGS ALLEGATION #2:

Prosecutor Acha was told by Jacob that he had a pre-purchased ticket and was returning to New York to be with family during a religious observance with plans to immediately return to Bolivia and continue managing the affairs of COLIAGRO. Acha himself had verified this with the airline. It was known to Acha that Ostreicher had the ticket weeks before he (Ostreicher) knew that there was any official concern over COLIAGRO’s operations. Acha knew that this travel was not for the purposes of fleeing Bolivia, and such an assertion was again a knowing and intentional misstatement of fact. Again the judge did not ask for proof of the unfounded allegation which lends credence to the belief that the incarceration was arbitrary or pre-determined, and that the proceedings were in effect; a “show hearing.”

Prosecution Allegation #3

          Luna alleged (again without providing any evidence to substantiate his claim) that Ostreicher was guilty of “associating with criminal organizations.”

INVESTIGATIVE FINDINGS ALLEGATION #3:

Jacob Ostreicher’s testimony has been and remains, that he has never been in contact with any individual he knew to be part of a “criminal organization.” His communications with Ozzie Dorado were exclusively through his lawyer (Ostreicher does not speak Spanish and Dorado does not speak English).

No proof has ever been presented to indicate, and this investigator could find no reason to believe, that Ostreicher a) knew Ozzie Dorado was the brother of a drug fugitive, b) ever spoke to Dorado personally, or c) engaged in any discussions of any illegal transactions whatsoever.

Again, Luna intentionally and knowingly made an arbitrary, patently untrue statement without attempting to provide proof of any kind. Again, the court accepted the unsubstantiated allegation.

Finally, and possibly most egregiously, the judge opined that with cases of alleged money-laundering, the defendant must prove their innocence in court, rather than enjoying the international human right of being “innocent until proven guilty.” Even the Bolivian judicial system holds as a major tenet the presumed innocence of the accused. With this statement, the judge was clearly violating Bolivian law, international law, and common legal decency.

Allegation #4:

          A major component in the decision to grant bail in the Bolivian justice system is the existence of “family” of the accused. (No weight is given to the location of the family). Luna, knowing that the statement was patently false, told the judge that Ostreicher did not have family.

INVESTIGATIVE FINDINGS ALLEGATION #4

Ostreicher is married, the father of five, and the grandfather of eleven. This investigator has personally viewed the birth certificates of the children and grandchildren, has met Ostreicher’s wife, son, daughter and mother. Yet the judge accepted the allegation on face value and Jacob was remanded to Palmasola Prison. (See “Palmasola Prison” section)

INVESTIGATIVE SUMMARY: FIRST HEARING

Without the slightest proof that a crime had even been committed, and with the use of knowingly false statements, Jacob Ostreicher was imprisoned without recourse.

During this hearing, Prosecutor Janet Velarde Luna used four substantial allegations to support her claim that Ostreicher should be denied bail. Each of the four statements was demonstrably false, and Luna either knew them to be false at the time or had no reason to believe that they were true. The bulk of the testimony in the first hearing consisted of simple perjury and there exists substantial evidence of prosecutorial misconduct. The judge in the matter asked for no proof of the allegations and denied bail to Ostreicher. Therefore, the incarceration was arbitrary and capricious and illegal by the standards of Bolivia and by the standards of the international community.


This investigator has also reviewed the conclusions of a report created by the Swiss Federal Police (Fedpol) and addressed to the Bolivian Justice Ministry, dated June 7, 2011 in which they state categorically that there is no proof, nor even any indication of money laundering (or any other crime) by André Zolty or Jacob Ostreicher. This report, for reasons unknown, does not appear in the Bolivian investigative book.

LEGAL RECOURSE

          Two hearings were scheduled, then cancelled or postponed with Jacob Ostreicher in the courtroom. It was not until September 23, 2011 that Mr. Ostreicher, after nearly four months in the squalid and violent prison known as Palmasola, was granted his only bail hearing.

          At this hearing Ostreicher’s defense team were able to present documents to refute the false testimony of prosecutor Luna, and the judge ordered Jacob released on $100,000 Bolivianos bail (approximately$14,500 USD). However, without further proceedings or prior notice and before Jacob could be mustered out of Palmasola, the judge, Zenon Rodriguez reversed himself and rescinded the order to release Ostreicher. This investigator has been advised that Ostreicher’s attorney, Abel Montano was told by the judge himself that he had been threatened with arrest if he did not reverse his decision.

          Ostreicher’s attorney Montano then appealed the decision to the appellate court which censured the judge and ordered him to explain why he had “illegally” reversed his decision. The judge held another hearing in which he enigmatically explained to the parties, It is not my place to comment on any evidence that is presented in this case.  I overstepped my boundaries.” That it is not a judge’s place to comment on evidence presented before him is a ludicrous statement. Yet Ostreicher was again held without bail. Days later, Montano removed himself as Ostreicher’s attorney. He told Ostreicher, that he too had received threats of arrest from the prosecutors. The judge, meanwhile, was promoted to an appellate court and is no longer on Jacob’s case.

          Since that time, approximately 19 more hearings have been scheduled, and not a single hearing has gone forward. Two judges have recused themselves from the case, and multiple lawyers have taken Ostreicher’s case, only to later remove themselves.

          On June 11, 2012, the most recent hearing almost began. A new judge inexplicably ordered the hearing to go forward, and the prosecutors, incensed at his apparent regard for Ostreicher’s rights ordered the judge to recuse himself from the case, or they would open a criminal investigation against him. The judge refused to recuse himself but refused also to let the hearing continue. He used a legal maneuver to send his ordered recusal to an appellate court which will delay the date of Ostreicher’s next hearing for approximately three months.

INVESTIGATIVE FINDINGS:

The Bolivian government has no intention of giving Ostreicher bail or a trial. Judges who have tried have been censured, threatened with arrest or transferred. Defense attorneys who advocate too strenuously for Ostreicher are threatened with arrest.

The warnings of arresting judges and defense attorneys are not idle threats. At Palmasola itself, there is a special wing built to house only judges, prosecutors and defense attorneys. The fact that there are so many such prisoners that they require a separate wing is less indicative of corruption in the government (corruption is not actively penalized) as it is an indication of the zero tolerance for failure to cooperate with the government’s corruption.

Jacob Ostreicher is being held for political reasons, and his detention is arbitrary and capricious and illegal by Bolivian and international standards.

PALMASOLA PRISON

          Following the initial hearing in which the prosecutor repeatedly perjured himself, Jacob Ostreicher was immediately transferred to Palmasola Prison, a facility which is in violation of the majority of the minimum international standards for the treatment of prisoners, as adopted by the First United Nations congress on the Prevention of Crime and the Treatment of Offenders; Geneva 1955. Palmasola Prison is less a prison than it is a walled community of unsupervised criminals and political prisoners. This investigator sent three days in the prison interviewing Ostreicher, other prisoners and attorneys for the prisoners. It is difficult to describe Palmasola in strictly legal and unemotional terms. A dispassionate description of Palmasola Prison is as difficult as a dispassionate description of rape. The sheer violence and indifference to humanity raises in normal people a level of indignation and shock unknown to most of society.

          Palmasola is best defined as a crowded ghetto populated by extremely violent criminals, uncharged innocents and political prisoners. Much like the ghetto of Warsaw during World War II, Palmasola is a crowded mini-city where the inmates are theoretically free to roam inside a fenced-in perimeter where the captors rarely venture. Unlike Warsaw, however, the majority of the residents of Palmasola are violent murderers and rapists.

PALMASOLA AND INTERNATIONAL STANDARDS FOR DETENTION

          According to the First UN Congress of 1955:

          Paragraph 8(b)

          “Untried prisoners shall be kept separate from convicted prisoners.”                                      

INVESTIGATIVE FINDINGS:

Palmasola Prison operates in direct contravention of the First UN Congress of Detention, paragraph 8(b).

Jacob and other untried prisoners are intermingled with the entire prison population. Within the small cell block (or “pavilion”) in which he must pay to live, there are several untried political prisoners, as well as a wide variety of mass murderers, single murderers, serial rapists and violent drug offenders. This is in stark contravention of the UN requirement.



          Paragraph 9(1)

          “Where sleeping accommodation is in individual cells or rooms, each prisoner shall   occupy by night a cell or room by himself.”

          Paragraph 9(2)

          “There shall be regular supervision by night, in keeping with the nature of the institution.”

          Paragraph 10

         “All accommodation provided for the use of prisoners and in particular all sleeping accommodation shall meet all requirements of health, due regard being paid to climatic conditions and particularly to cubic content of air, minimum floor space, lighting, heating and ventilation.”

          Paragraph 28(1)


          “No prisoner shall be employed, in the service of the institution, in any disciplinary capacity.”

INVESTIGATIVE FINDINGS:

Palmasola Prison operates in direct contravention of Paragraphs 9(1), 9(2), 10 and 28(1), of the First UN Congress on Detention.

Prisoners at Palmasola are provided no cell, no indoor sleeping accommodations, nor any bedding or blankets. All prisoners are required to purchase or rent cells by the cartel of prisoners who run the prison from the inside.

When Jacob Ostreicher was transferred to Palmasola, he was literally “thrown into” the prison. The door to the men’s pavilion was opened and he was pushed in, with the door closing behind him. For five nights, Jacob was forced by prisoners to sleep outside, atop a mound of garbage at the far rear of the prison without bedding or shelter of any kind. During this time, he contracted a severe gastro-intestinal infection causing him diarrhea and vomiting for several days. He was unable to move from the garbage pile. No medical care was provided, no cell was provided during this time, and no help of any kind was offered during this first week of incarceration. 

At the conclusion of the week, a prisoner had pity on Jacob and arranged for him to sleep in a “cell” which was exactly the size of a single mattress. This “cell” was in a highly-crowded sleeping area. This investigator talked to prisoners from Canada, South Africa and the United Kingdom. Most were unable to “afford” to rent or buy a cell, (there are not enough cells and inside sleeping accommodations for all the prisoners), and therefore they sleep in the streets at night, or occasionally sleep in the Catholic chapel, in return for participating in services for a religion they do not follow.
“Supervision” at night, as well as during the day, is conducted by prisoners and not hired guards, in violation of the Geneva accords. Uniformed professional guards man only checkpoints and entry points to the individual prison wards of the facility. They venture into the prison only during meal hour and at roll call.  This investigator never saw a uniformed officer inside the men’s prison in the three days he was inside the prison; except during meal and roll-call. However, roll-call is an activity which a prisoner may pay to avoid. Only those prisoners without the financial wherewithal to pay for exemption from roll-call are required to be counted. It leaves open the question as to whether roll-call itself is for prisoner accountability or for prison guard income purposes.

 A prisoner-run organization known as “Disciplina Interna” (Internal Discipline) provides order and “security” inside the prison. The requirement for membership in the “Disciplina” is that the prisoner is a “lifer” or ‘prisoner sentenced to life in prison.’ The reason for this is apparently that it provides the prison cartel increased control over their security force. It also ensures that the very persons responsible for order and security inside the prison are in fact the most violent persons inside the prison. This investigator became aware that ‘Disciplina’ operatives were conducting surveillance on visitors and prisoners, providing a source of internal information for the prisoner cartel, charging money to ensure the safety of prisoners, stealing cash and valuables from other prisoners, and administering regular and routine physical beatings as part of their role in “maintaining order.” During the three day investigative foray into the prison, this investigator was approached by a ‘Disciplina’ operative (a murderer) who demanded money from him in order to ensure his safety and security while in the prison.

 Prisoners who do not pay “protection” money are in grave danger. Statistically, between one and four prisoners are murdered at Palmasola (out of a population of 3,500) each month. These killings are predominantly categorized as “suicides,” though anecdotal evidence (stab wounds in the back, etc.) indicates that few if any are suicides. The day prior to the arrival of this investigator, another killing had occurred in the pavilion.


          Paragraph 14:

          “All parts of an institution regularly used by prisoners shall be properly maintained and kept scrupulous clean at all times.”

          Paragraph 31:

          “Corporal punishment, punishment by placing in a dark cell, and all cruel, inhuman or degrading punishments shall be completely prohibited as punishments for disciplinary offenses.”

           Paragraph 32(1):

           “Punishment by close confinement or reduction of diet shall never be inflicted unless the medical officer has examined the prisoner and certified in writing that he is fit to sustain it.

           Paragraph 32(3):

          “The medical officer shall visit daily prisoners undergoing such punishments….”

INVESTIGATIVE FINDINGS:

 Palmasola Prison operates in direct contravention of Paragraph 14, 31, 32(1) and (3) of the First UN Congress on Detention.

 Palmasola Prison is filthy. Raw sewage runs through the center of some of the streets, open garbage pits have been created throughout the institution, insects of all kinds, (especially mosquitoes) are rife. There are no apparent sanitary precautions in the creation of the prison food; a gruel-like soup made in an open-air kitchen over open fires, immediately adjacent to the main prison garbage dump.

None of the discipline cells, where this investigator witnessed as many as a dozen unfed inmates being held, have latrine facilities, running water, or light. No prisoners in the cells are fed, and they depend upon the concern of fellow prisoners to obtain food. This investigator could find not a single prisoner who believed that there was a doctor assigned to the prison in any capacity, with the possible exception that one of the prisoners might have been a doctor at one point.

          Paragraph 46:

          “The prison administration shall provide for the careful selection of every grade of the personnel, since it is on their integrity, humanity, professional capacity and personal suitability for the work that the proper administration of the institutions depends.”

INVESTIGATIVE FINDINGS:

The operation of, and especially the operators of Palmasola Prison literally mock the intent of Paragraph 46 of the First UN Congress on Detention. The uniformed guard force at Palmasola appears to be uniformly corrupt.

During the three days of investigation in the prison, this investigator was cheated, robbed, mocked and taunted by uniformed professional prison guards. While this investigator advised the personnel at the prison by written note that he spoke no Spanish, he does have a functional, if basic, understanding of the language. With the supposed freedom to speak without being understood by the American, the guards mocked the “Gringo” to other prisoners and visitors. When having one’s arm stamped to enter the prison (standard procedure) a number is written on the arm in felt pen. When this investigator presented his arm for marking, the guard told the nearby visitors and guards (in Spanish), “I’ll write the gringo’s number in green, not black.” Much laughter ensued.

All visitors to the prison are required to pay a $5 Boliviano fee at each gate. Not one time was I allowed pass a checkpoint for a mere $5 Bolivianos. Each time, more was demanded, from an extra Boliviano to as much as twice the entry fee. No reason was given, and when I argued, I was ordered to move on or be thrown out of the prison. The other visitors told me it was an expected occurrence, and that the guards pocket the difference.

Inside the prison, all manner of merchandise and contraband is openly available for purchase, from knives and tools to cocaine and prostitutes. The prostitutes (which operate openly in the prison) are women from the local town of Santa Cruz De La Sierra who pay guards for the opportunity to ply their trade with the prisoners, as well as inmates from the women’s prison at Palmasola who reportedly pay the guards the equivalent of $1 USD per day of prostitution in the men’s prison.


Cocaine was available for open sale and use at the price of $3 Bolivianos for one dose, or two doses for $5 Bolivianos. This investigator witnessed the open use of the purchased cocaine. Soft drinks are also available as is a multitude of food and snack items. (Coca Cola sells for $10 Bolivianos, making cocaine half the price of a cola drink. Principles of supply and demand–which are rigorously correct inside of a closed society such as a prison--indicate therefore that the cocaine is more plentiful than Coca Cola.) ALL these commodities, including the cocaine, are imported to the prison by guards who are paid to smuggle the materials. No other explanation adequately accounts for the presence of the contraband and the non-enforcement of rules against it. No attempt was ever observed by this investigator of prisoners attempting to conceal illegal behavior, leading to the conclusion that the enforcement of drug and other laws in the prison is rare, if it ever occurs.

 One evening as the sun went down, shots rang out from multiple pistols. It was the guards firing indiscriminately into the air over the heads of the prisoners. One of the prisoners with whom I was speaking calmly explained that the guards frequently shoot over the prisoners’ heads to intimidate them during storms or darkness when the guards fear a prisoner might attempt to escape.

This investigator has been inside state, county and federal prisons in the United States, from small jails to the largest, most modern prisons. He has also been in multiple non-U.S. jails in Asia. He is familiar with the standards for humanitarian care. There is little if any regard for humanitarian treatment at Palmasola. The noted violations are just a few of dozens of blatant breaches of international standards of detention witnessed by this investigator.

MOTIVE FOR OSTREICHER'S DETENTION 
(POLITICAL ENVIRONMENT)

       
         Jacob’s demise began when he made an innocent mistake. Once he was able to reestablish control over the company Rodriguez had nearly decimated, he turned the venture into a very successful business. So successful that he was noticed by Morales. When Ostreicher ordered bags for the next year’s crop of rice it sent shock waves through the agricultural community. The amount of the anticipated crop; 50,000,000 pounds, was very nearly as much as the rest of the country’s production combined. The shock wave was soon felt by Evo Morales. The simultaneous difficulty involving the land of a fugitive drug dealer provided an opportunity for Morales. Within mere weeks, Jacob was thrown in what can only be described as a Bolivian “gulag,” his rice had been stolen by the government, his equipment seized and sold, and his land converted to other uses. For what other uses might be, one has only to remember that Evo Morales is a proud coca grower.

          No trace now remains of COLIAGRO’s rice venture. Jacob has now languished in a squalid Bolivian prison for over a year, and charges have yet to be filed, a trial has yet to be scheduled, and all indications are that none will ever be.

          Evo Morales lives and dies by the socialist agenda. Every day, in every way possible, he tries to shows the “superiority” of socialism over capitalism--even when the evidence supports the opposite conclusion.  His long-term plan, he had said, was to make Bolivia self-sufficient in rice production over a course of many years. For a capitalist venture to accomplish that in just three years would be a humiliation. Jacob was arrested for a crime known as “Illicit Enrichment,” which is a catch-all charge used mainly on political opponents. For a charge of illicit enrichment, no crime need be proven; which is immensely convenient. It is simply an allegation that you have more money than the government thinks you should have.

       Jacob has languished in prison for a year without being given the opportunity to officially fight the charge. In the meantime, he has obtained affidavits from banks in Bolivia, Switzerland, the United States and the United Kingdom which prove the origin and destination of every cent spent or made in the rice venture.

    Morales’ decimation of a rice company which could benefit his people was accomplished simply because it wouldn’t benefit him. And it’s not the first time that this has happened. This modus operandi has become all-too familiar. A similar case to Jacob’s was the sad deconstruction of an otherwise profitable non-government-owned airline, Aerosur, long the flag-carrier of Bolivia. After coming to power, Morales decried a “private” airline operating out of his country and created a Bolivian government airline, BoA. The problem was that there was not enough passenger traffic for two airlines, and Aerosur was very adequately servicing the market along with several smaller feeder airlines.

         Aerosur began to endure extremely rigorous government scrutiny on its operations; planes, maintenance and facilities—scrutiny that appeared absent with BoA. At times the government refused to sell fuel to Aerosur, or sold it at inflated prices, all the while selling BoA seats for unrealistically low prices. When this did not drive Aerosur out of business, the Morales government charged Aerosur with tax evasion and seized “100%” of Aerosur’s ticket revenue. In essence, they “legally” seized all of Aerosur’s operating capital. When Aerosur subsequently began to fail, they charged its president, Humberto Roca with “Illegal Enrichment.”

          Since Ostreicher’s arrest, all of COLIAGRO’s approximately 40,000,000 pounds of rice have disappeared. The holders of the rice have repeatedly stated that it was taken by the Bolivian Justice Ministry group responsible for seized assets; DIRCABI. DIRCABI denies that they stole the rice, and alleges that the rice was stolen by people posing as DIRCABI agents. However, the holders of the seized assets also say that the persons who took the rice (and all of the farm equipment) were the same individuals from DIRCABI who initially seized the rice, an act that DIRCABI endorses as their own.

        In an allegedly unrelated development, Evo Morales announced within the last two months that Bolivia, for the first time since Morales came to power, now has a rice surplus and is able to export that commodity. He did not elaborate on how this massive increase in production occurred.

INVESTIGATIVE SUMMARY

CONCLUSIONS

This investigation was conducted by Stephen Moore on a pro-bono basis. This investigator is not being paid by Mr. Ostreicher or any other person to investigate this matter.

All evidence; anecdotal, testimonial and empirical, point to one conclusion and one conclusion only: Jacob Ostreicher was arrested without any evidence of a crime being committed, and therefore without any evidence that he had committed any crime. In an entire year, the Bolivian government has held one hearing and cancelled or postponed 21 hearings which were for the purpose of providing bail for Mr. Ostreicher.

The Bolivian government has had an entire year to prove that a crime had been committed, or even to provide enough evidence to cause a reasonable person to believe that a crime might have been committed. If they have even attempted to do so, they have failed.

Every substantive statement made to any court in this case by prosecutors is demonstrably false, and was known to be so at the time by the prosecutor who made the statements. All courtroom statements by which Mr. Ostreicher is now detained, are, and were known to be, perjury at the time they were made. Jacob Ostreicher’s arrest and imprisonment is predicated on lies, perjury and political threats.

His detention is illegal by both Bolivian and international law. His detention continues for unknown reasons, though all anecdotal information obtained by this investigator indicates that Ostreicher poses a potential political embarrassment to Bolivian President Evo Morales. The posture of the Bolivian government in this matter is and has been, to avoid (and to obstruct) any legally-required proceeding in which the government would have to justify Mr. Ostreicher’s arrest and/or detention.

The prison in which Mr. Ostreicher is being illegally held is in itself illegal by any international standard of human rights. Mr. Ostreicher is in constant danger of death by illness, violence or simple political caprice.

According to the United States Department of State 2011 State “Country Report on Human Rights Practices,” Bolivia’s “justice” system engages in “arbitrary or unlawful deprivation of life” (murder),“arbitrary arrest or detention,” and “denial of a fair and public trial.” While investigating the matter of Jacob Ostreicher, this investigator found ample reason to support this assertion by the State Department.

At one point, this investigator interviewed a Bolivian defense attorney who was in Palmasola to speak to a client of his. I was advised by prisoners that this attorney was one of the more prominent criminal defense attorneys in Bolivia. When asked about the Ostreicher case, he laughed and explained; “There are four reasons [Jacob] is still in prison. One; he is an American. Two; he is white. Three; he is a Jew. And four; he has money.” He offered advice to be given to Jacob; “Give [the prosecutors] what they want.”

It is the conclusion of this investigator that Mr. Jacob Ostreicher has never committed a crime in Bolivia and is for all intents and purposes, a prisoner of the Bolivian regime of Evo Morales because he poses a potential embarrassment and/or threat to his political control of the country.

APPENDICES





This is one of several disciplinary cells this investigator personally examined at Palmasola Prison. In this cell (adjacent to the children’s play area), approximately 12 prisoners were locked into an approximate 10 ft. x 10 ft. unlit cell without sanitary facilities or bedding. The floor was concrete and prisoners in disciplinary cells are not fed. They depend on visitors and the kindness of other prisoners for food during their stays in the disciplinary cells.




APPENDIX I. 
PHOTOGRAPHIC EVIDENCE

Children in Palmasola. Children such as these were everywhere in Palmasola Prison. The main children’s play area is adjacent to one of several disciplinary cells in the prison (see below).




This is the area within Palmasola Prison set aside for the use of cocaine by prisoners. Cocaine which is openly sold inside the prison. The prisoners in the background of the photo were under varying levels of cocaine influence. Most are homeless and sleep in this immediate area on the ground.








Cattle are employed in the prison as garbage disposal units.


(Right) This is the open garbage dump where Jacob Ostreicher laid for five days after his initial incarceration at Palmasola prison.




While in Palmasola Prison, this investigator met with many individuals who were in Palmasola without charges and without trial. During this time, I was followed at all times by members of the “Disciplina Interna” to identify the individuals with whom I spoke, to try to ascertain the topics of our discussions, and other reasons upon which we can only speculate.

In the photo below, every single individual wearing a white baseball cap, all of which were imprinted with the group logo “G-5” are members of the  ‘Disciplina.' This investigator was speaking to an individual who was in the prison without charges, and in the background no less than seven (7) ‘Disciplina’ operatives can be counted. Prisoners and visitors alike are under constant surveillance. It was a member of the ‘Disciplina’ who two days later made a demand for money from this investigator.


APPENDIX II

Advertisement placed in El Deber Newspaper by Jacob Ostreicher regarding Liliana Rodriguez.


APPENDIX III

Swiss report to Bolivian authorities indicating Mr. Zolty was neither wanted or under investigation.
 


Comments

06/30/2012 01:46

May God continue to bless you in your relentless pursuit of justice!

Reply
Madison Moore
07/06/2012 15:08

I just now read an update that is worth sharing. It shows how pathetically corrupt the current "system" in Bolivia is. And if the US does not UPDATE ON JACOB'S CASE:

Bolivian law requires every document submitted to a court must be numbered manually (by hand). Numbering consists of the numerical value followed by written number. (for example: 1/one, 2/two, 3/three) . If additional documents are added to a case file, the numbers continue in sequence. By now, Jacob’s case file has more than 2,000 pages.

After the 10th court judge referred the case to a higher court – to decide whether he can stay on the case or not – the judge ordered the file to be moved to the 11th court. However, the 11th court judge is currently in Palmasola prison. He’s been there for the past 21 months. The case file had to be moved to the 4th court. The secretary of the 11th court claimed there were errors in the sequence of numbers, therefore, the case file cannot be moved to the 4th court. It took over a week to correct the error. The secretary of the 4th court claimed that since this case was originally in the 9th court, it should be sent back to the 9th court. The 4th court secretary claimed that the documents were numbered incorrectly, therefore, it couldn’t be moved to the 9th court until they were numbered correctly. It took more than a week to correct the errors again. The case file finally arrived at the 9th court on Friday June 29. The 9th court secretary claimed that the documents were numbered incorrectly and proceeded to correct them again. (note –this was the secretary that numbered all the documents originally).

Finally, yesterday, the 9th court secretary completed the corrections and sent the case file in to the judge’s chambers. The judge rejected it – the documents were numbered incorrectly.

Do you all get this?????

In the meantime, Jacob will not be seen by a forensic doctor, nor will a hearing be scheduled.do something about this they are fully aware by now, therefore they are fully responsible for the outcome of Jacob.

Reply
Steve Moore
01/16/2013 13:23

So glad you "get it." Absolutely accurate assessment of the current situation.

Shelly Kendall
07/02/2012 16:24

Your dedication to see an innocent man free at any cost and risk to yourself is a blessing to see. All of your training has led you to this day. Thank you for your sacrifice and dedication. May the Lord go before you and behind you as you continue your quest to see Jacob free. May the Lord be gracious to Jacob as he lingers and suffers without understanding. Sounds like a familiar story to me. Many blessings over you and your family as you continue to fight for Jacob's freedom and expose a corrupt governement! Stay strong and brave for God is with you!!

Reply
07/03/2012 00:57

Excellent report Steve. This injustice must be corrected.

Reply
Eliana
12/07/2012 14:34

Bolivia´s president is Al Capone, please help us

Reply
jhkh
12/16/2012 10:12

Jacob Ostreicher has been charged with money laundering and it is obvious that he was charged this for good reason.

Reply
Steve Moore
01/16/2013 13:48

I generally do not publish or respond to those who do not have the courage to use their actual name or have enough confidence in their opinions to endorse them, but this one deserves further response:

"jhkh"

You got everything right up to the second word. You at least spelled Mr. Ostreicher's name right. After that, you lost your way.

Contrary to your belief (stated twice), Mr. Ostreicher has NEVER been charged with any crime; as the report on which you comment clearly states. Did you read it?

Along with your name, you fail to provide the "obvious" "good reason" for which Jacob was charged. Please supply your first-hand evidence to support your allegation. The Bolivian government needs evidence.

The reason I published this anonymous, inane comment is to illustrate the ignorance which is responsible for the success of evil around the world. Those who, due to blind faith in governments rather than cautious confidence, those whose bias allows them to believe "guilty until proven innocent" rather than the reverse, are the shills necessary for totalitarianism government to succeed and even flourish.

Three other commenters, all Bolivian, all within the grasp of the government there, criticized the government openly, yet provided names and actual E-mail addresses. Brave people. I just wanted the reader to see the difference.

Reply
Freddy Rivero
01/04/2013 15:48

Asi como el caso del Sr. Jacob Ostreicher, hay muchos prisioneros politicos sin sentencia por mas de 4 años, dilantando audiencia tras audiencia, estas mismas por cualquier motivo se suspenden y asi va pasando el tiempo y cientos de familias estan destrozadas por que su ser querido se encunetra preso sin prueba alguna, que Dios proteja a los presos y sus familiares, con la esperanza que otro Mr, Steve aparezca para hacer justicia.

Reply
Steve Moore
01/16/2013 13:26

Translation:

"The Bolivian government is composed mostly of bullies who do not accept the free market due to their extreme incompetence, also in Bolivia is the case of the incompetent and direct the destinies of the bodies, the eternal history of socialism."

Thank you, Mr. Rivero.

Reply
julian
01/05/2013 16:01

el gobierno boliviano esta compuesto en su mayoria por bullies que el libre mercado no acepta debido a su extrema incompetencia, asi en bolivia se da el caso de q los incompetentes dirigen los destinos de los competentes, la eterna historia del socialismo.

Reply
Steve Moore
01/16/2013 13:31

Translation:

"Just as the case of Mr. Jacob Ostreicher, there are many political prisoners without trial for more than four years, after hearing after hearing is supended for no reason and so time passes and hundreds of families are being torn apart by this government without evidence. I pray that God protects the prisoners and their families, in the hope that another Mr. Steve appears to do justice."

I met several people at Palmasola who were being held without trial or charges--including politicians from earlier governments.

Reply
01/17/2013 08:11

the stream of lies, undiluted by truth contiinues up to the apex, Jacob is part of a conspiracy to show in bad light the government, said a few days ago none other than evo, and the proof is that he is guilty!!

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