Drug Cartels | The Chess Master | 1

0:00This is a special preview of Wondery Plus' exclusive three-part season on the drug cartel wars. Subscribers to Wondery Plus can binge all three episodes now. A note to listeners, this episode references content that may not be suitable for younger listeners.

0:28It's June 3rd, 1989, above the Magdalena River Valley, Colombia. Jorge Salcedo sits in the co-pilot seat of a Cessna airplane, soaring above the lush river basin below. Salcedo peers out the window, taking in the dense canopy of trees. After a moment, Salcedo checks the time. It's just before 11 a.m. He swivels in his seat and looks back at a man perched in the back of the plane, the man surrounded by a sea of electronic equipment, a large pair of headphones over his ears. Salcedo yells out to him. It's almost time! The radio tech gives him a thumbs up. Salcedo watches the second hand on his clock, ticking closer and closer to 11.

1:13Up until five months ago, Salcedo was a businessman and volunteer officer in the Colombian military reserves. Now, he's the architect of an illegal and highly dangerous mission for some of the most powerful drug lords in the world. and he won't find out if the mission is a go until precisely 11 a.m. Salcedo watches as 10.59 turns to 11. Behind him, the radio tech calls out. The call has been placed. Salcedo stares at the tech, looking for any clue about whether the mission is a go. But the tech's face is completely unreadable. Salcedo's heart is racing. Finally, the tech looks up and breaks into a smile and gives the thumbs up.

1:58He's home. Salcedo pumps his fist and swivels in his chair. He grabs his radio and speaks into it. We're having a party. A pair of military helicopters emerges from the clouds. On board each chopper is a team of British mercenaries who Salcedo is hired to execute this mission, and enough ammo to arm a small country. Now, they're on their way to kill Pablo Escobar, the head of the Medellin cartel, the largest drug trafficking organization in the world. On the other end of the radio, Salcedo hears his bosses cheering. They're the leaders of the Cali cartel, bitter rivals of Escobar's Medellin cartel.

2:42Until a few years ago, the two cartels got along and even did business together. But then Escobar broke the terms of their agreement. encroaching on Cali's agreed-upon market. And in this world, business disputes quickly turn into literal wars with body counts. Escobar has a violent history, waging terror on the Colombian state. He's been responsible for the deaths of thousands of people, many of them bystanders. The Cali cartel and their families fear they're in danger, so they're striking first. One of the Cali bosses gets on the radio. Go kill that SOB. Roger that. Salcedo hangs up the radio and leans forward in his seat, unable to sit still.

3:33The adrenaline is pumping. He's on his way to kill Pablo Escobar. To win the war of the cartels.

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5:23From Wondery, I'm David Brown and this is Business Wars.

5:51In the 1970s, Colombian smugglers started importing cocaine into the United States. Two groups began to dominate the cocaine trade, turning it into a multi-billion dollar business. They named themselves after the cities they were based out of, Cali, in the southwest of the country, and Medellin, 200 miles to the north. Both cartels developed sophisticated ways to process, transport, and distribute massive amounts of cocaine to the United States. In 1984, the U.S. State Department estimated that 70 tons of cocaine was entering the U.S. each year, most of it sourced from the two Colombian cartels.

6:34To ensure delivery, the cartels were willing to bribe, kidnap, and kill anyone who got in their way, be it a government official, a disloyal employee, or a bystander in the wrong place at the wrong time. By the end of the 1980s, Colombia became the murder capital of the world, averaging 60 murders a day. In our new three-part series, we'll track how the Cali and Medellin cartels combine the business acumen of multinational corporations with the calculated violence of the mafia and the organizational structure of a terrorist network. We'll delve into the ruthless battle to dominate the cocaine trade in the United States.

7:18It was a battle that wrought tragedy, with Colombian civilians paying a devastating price. This is Episode 1, The Chess Master.

7:38It's 1968, in Cali, Colombia. Gilberto Rodriguez sits in the living room of his modest house. He removes stacks of pesos from a briefcase, each one bound by a currency wrapper. He organizes them into neat piles on the floor. He's 28 years old, with a goatee that accentuates his jowly cheeks. He quickly counts the cash. Sitting across from him on the couch is Gilberto's 24-year-old brother, Miguel, and their friend, Jose Santa Cruz, who goes by Chepe. Miguel looks permanently pissed off, no matter his actual mood. Chepe is stockier than the brothers, with unkempt hair that matches his laid-back demeanor.

8:23As Gilberto puts the final stack of pesos into its pile, Miguel rubs his hands together excitedly. He counts the piles that Gilberto has made. Nine, ten, eleven, twelve. Twelve million pesos. It's the equivalent of around 700 ,000 U.S. dollars. Chepe reaches out and high-fives both Gilberto and Miguel. Not bad for an honest day's work. The brothers crack up. The three men are part of a seven-person kidnapping gang. They recently abducted two Swiss citizens, one a diplomat and the other a student. This is their cut of the ransom money. Miguel picks up one of the stacks of pesos and flips through it.

9:07I think Papa needs a brand new car. He looks at his brother. Nothing too flashy, I know. Gotta stay under the radar. Just something nice, powerful. What are you two gonna do with your money? Gilberto leans forward. Well, I wanted to talk to you about that, actually. How about investing it in a new venture? Chepe arches an eyebrow. What kind of venture? Marijuana. You know those hippies in the U.S. love what we grow. Of course they do. Colombian marijuana is the best in the world. Now that we have the capital, this is our chance to buy in. Gilberto leans back in his chair and raises his eyebrows tentatively.

9:49So, what do you think? Miguel makes a big show of thinking about it, stroking his chin and looking up at the ceiling. I think this is why we call you the chess master. You always see the big picture. I'm in. He turns to Chepe. What about you, man? You win? If you two are in, I'm in. We're a team. Gilberto grins, and the three men hug and slap each other on the back. They're excited to start their next endeavor. The Rodriguez brothers and Chepe Santa Cruz dip their toes into marijuana smuggling. But they soon realize that it's harder than they thought. Marijuana sells at a relatively low price.

10:37To get the kind of profits they're shooting for, they'll have to sell in volume. But marijuana is a bulky product that quickly fills planes and even shipping containers. So, after a couple of years smuggling marijuana, the group decides it's time to pivot.

11:05It's the early 1970s, in Cali, Colombia. Gilberto Rodriguez paces his living room, while Miguel and Chepe watch. Chepe leans forward. So now what? Back to kidnapping. Gilberto shakes his head. I have a new idea. We switch to cocaine. Chepe looks at him, confused. But Chile's always been the country that exports cocaine. Not anymore. Pinochet has cracked down. For years, Chile was the main source of cocaine in South America. But in 1973, Augusto Pinochet staged a violent coup and overthrew Chile's democratically elected government. And he's made it clear he won't tolerate drug smuggling from Chile.

11:53Chepe rolls his eyes. I know that. The point is that with marijuana, we had contacts and a distribution network established by our own countrymen. But we don't have that infrastructure for cocaine. So we make them. The profit margins are out of this world. You can sell it at over 25 times the buying price. That means you only have to move a tiny little bit to start seeing real money. A kilo of cocaine can be bought in Colombia for the equivalent of$2 ,000 and sold in the United States for$55 ,000. Miguel stands up, joining his brother in pacing the room. I think Gilberto's on to something. Maybe we don't have the same distribution networks, but there are a lot of Colombians living in the United States.

12:39Years of political violence and a poor economy in Colombia has resulted in a wave of Colombian immigration to the U.S. We could start in New York. We know there are a lot of Colombians there. I'm sure some would be happy to help transport and distribute it for us. And we'd be getting in early. If we do this right, we could really grow this. Chepe nods. All right, let's do it. The group begins to make plans about how they're going to make the transition from smuggling marijuana to smuggling cocaine. They divide and conquer. Gilberto and Miguel stay in Colombia. They start figuring out how to process their new export.

13:23Meanwhile, Chepe heads to New York to work on the distribution network. At first, he relies on friends and family contacts in the Colombian expat community. He sets up a cell structure so dealers report to the head of their own cell, but know nothing about any other cell operating in the city. It's a similar business model to a fast food franchise, but instead of supplying hamburgers and french fries to their U.S.-based franchisees, the Cali Group provides them with kilos of cocaine. Each franchise is financially incentivized to move product. It's a complex but highly efficient system.

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18:45It's the early 1970s in New York City. A young Colombian immigrant eats a piece of toast and reads the funny pages. It's a Sunday morning, but the young man isn't settling in to relax. Today is a work day. All of a sudden, the pager that's clipped to the waistband of his pants goes off. He looks down and sees just one number on the screen, six. It's the code for a payphone, several blocks away. The young man shoves the last bit of toast into his mouth, grabs his backpack and heads out. It's time to get to work. He rushes through the packed streets of Queens, ignoring the sound of the subway screeching overhead and the ripe smell of garbage in the streets as he weaves through the sea of pedestrians.

19:32When he arrives at the payphone, he reaches into his backpack and pulls out a quarter. His boss requires that he keep$100 in quarters on him at all times, so that he can always make a phone call if necessary. He dials his boss's number. After two rings, his boss answers. You ready? It's like this every time. No small talk, just business. The dealer takes out a small notebook and pen from his backpack. Ready. Hernandez, 1255. Gomez, 135. Sanchez, 210. He continues, and the dealer takes notes as his boss talks. These are all the regular dealers that the head dealer supplies approximately two kilos of cocaine to per week, so they can then sell it on the street.

20:22And he collects the money they owe for the previous week's supply. The locations of the exchanges stay the same week to week, but the times of the meetings always change as a security precaution. Once his boss finishes giving him the info, the dealer hangs up. Now he has to call each customer and let them know the time of the meeting. Once that's done, he'll head to a stash house to pick up the kilos and start meeting the customers to distribute them. It'll be a long day, but he's paid well, so he doesn't mind. The number of cells in New York grows to a dozen, each one making millions of dollars per week.

21:04As their success grows, the three men from Cali start growing more elaborate systems. They hire regional managers to oversee different divisions, like storage, money laundering, security, intelligence, and more. Miguel becomes more and more hands-on. Each manager reports directly to him. Under Miguel's guidance, they develop smuggling routes that can import more and more kilos of cocaine into the U.S. They hide them in shipments of legitimate goods, including everything from lumber to frozen fish. Their goal is total market domination. They want to own every part of the process, from growing to street sales.

21:49When they find competition, they bring them into the fold. Eventually, they even form a board of directors until ultimately there are at least 30 major players in the Kali cartel. Soon, others start to realize just how lucrative the cocaine business can be, and they take a different approach to entering the business.

22:20It's 1975 in Medellin, Colombia. Two men walk down the street. They pass by rows of brightly colored houses and street vendors yell at them as they pass, hawking their wares. One of the men goes only by the name Rubin. Fluent in English and a pilot, Rubin makes his money flying cocaine that's been smuggled from Colombia to cities up and down America's eastern seaboard to be sold. Next to him is his friend and colleague Jorge Ochoa. Jorge and his brothers Juan David and Fabio have started supplying cocaine in the United States. Both Ruben and Ochoa work for a man named Fabio Restrepo. He's one of the biggest cocaine traffickers in Medellin.

23:03He ships between 80 and 120 kilos of cocaine a year into Miami, where it can be sold for approximately$40 ,000 per kilo. At least, he was one of the biggest traffickers in Colombia. Restrepo was recently murdered. Ruben and Ochoa have been summoned to meet with their new boss, who has taken over Restrepo's smuggling operation. As they near the address where they've been told to meet, Ruben suddenly realizes something. Whoever answers the door, and he's our new boss, he murdered Favio, right? You're just putting two and two together now? Reuben shrugs. He grew up relatively wealthy. His family sent him to school in the United States.

23:50In certain ways, he's more comfortable in the hotels and bars of Miami than on the streets of his hometown. There's a lot he still doesn't understand about the drug trade. I was just double-checking. I can't believe you were born in Colombia. You're such a gringo. I'll spell it out for you. We'll never be able to prove it, but yes, this mysterious new boss of ours ordered the murder of Fabio so he could take over Fabio's smuggling operation. It's the move of a shark, so we need to be on our toes. They arrive in an apartment building. Ochoa knocks on the bright pink door. After a moment, the door swings open, and a young man in his twenties answers.

24:32He doesn't say anything, just leads the two men into the living room. A short stocky man with curly dark hair parted on the side sits in an armchair. Ruben does a double take. He looks at Ochoa. He has the same surprised look on his face. Oh, it's you. A few months ago, Ruben and Ochoa picked up 14 kilos of cocaine from this man on behalf of their boss. At the time, he'd come across as a small-time crook, and Ruben hadn't given him much thought. It certainly never occurred to Ruben that one day he might be working for this man. Sorry, I know we've met, but what's your name again? Pablo Escobar.

25:19Ruben realizes he vastly misread Escobar when he met him a few months back. This man had the guts and the wherewithal to murder one of the biggest cocaine traffickers in Medellin and take over his business. And looking in his eyes now, Ruben knows he's only just gotten started. Pablo Escobar is a man who won't stop until he's the biggest cocaine trafficker in all of Colombia.

25:56From Wondery, this is episode one of Drug Cartels for Business Wars. To binge the rest of drug cartels, subscribe to Wondery Plus today. A quick note about recreations you've been hearing. In most cases, we can't know exactly what was said. Those scenes are dramatizations, but they're based on historical research. If you'd like to read more, we recommend Killing Pablo by Mark Bowden, Drug Lords by Ron Chepczyk, Kings of Cocaine by Guy Gugliotta and Jeff Lean, and At the Devil's Table by William C. Rempel. Special thanks to Chris Brancato and Michael Wright for their help with this series. For more on how cocaine trafficking exploded in 1970s Miami, check out the new series Hotel Cocaine, airing exclusively on MGM+.

26:42I'm your host, David Brown. Austin Rackless wrote this story. Our senior producers are Karen Lowe and Dave Schilling. Our producers are Emily Frost and Grant Rutter. Sound design by Kyle Randall. Voice acting by Eric Campos and Emmanuel Chumacero. Fact-checking by Sheila Patterson Our managing producer is Matt Gann Our coordinating producer is Desi Blaylock Our senior managing producer is Ryan Lohr Our executive producers are Jenny Lauer-Beckman and Marshall Louis for Wondery