Peru: No. 1 for bogus bucks
LIMA, Peru — The police colonel was stunned by the skill of the 13-year-old arrested during a raid on counterfeiters in Lima's gritty outskirts, how he deftly slid the shiny plastic security strip through a bogus $100 banknote emblazoned with Benjamin Franklin's face.
The boy demonstrated his technique for police after they arrested him on the street with a sack of $700,000 in false U.S. dollars and euros that he'd received from a co-conspirator, and he led them to a squat house where he and others did detail work.
With its meticulous criminal craftsmen, cheap labor and, by some accounts, less effective law enforcement, Peru has in the past two years overtaken Colombia as the No. 1 source of counterfeit U.S. dollars, says the U.S. Secret Service, protector of the world's most widely traded currency.
In response, the service opened a permanent office in Lima last year, only its fourth in Latin America, and has since helped Peru's police arrest 50 people on counterfeiting charges.
Over the past decade, $103 million in fake U.S. dollars “made in Peru” have been seized — nearly half since 2010, Peruvian and U.S. officials say.
Unlike most other counterfeiters, who rely on sophisticated late-model inkjet printers, the Peruvians generally go a step further — finishing each bill by hand.
“It's a very good note,” said a Secret Service officer at the U.S. Embassy. “They use offset, huge machines that are used for regular printing of newspapers, or flyers.”
“Once a note is printed they will throw five people (on it) and do little things, little touches that add to the quality,” he said, speaking on condition he not be further identified for security reasons.
The phony money heads mostly to the United States but is also smuggled to nearby countries including Argentina, Venezuela and Ecuador, said Col. Segundo Portocarrero, chief of the Peruvian police's fraud division.
Peru became more attractive to counterfeiters as Washington's decade-long Plan Colombia program tightened the screws not just on drug traffickers in that neighboring Andean nation but other criminals as well, he speculated.
Counterfeiting in Peru, meanwhile, got better.
“It's much more profitable than cocaine,” said a top investigator on Portocarrero's team, noting another of Peru's illegal exports.
U.N. crop estimates suggest Peru has overtaken Colombia as the world's leading cocaine producer. But the investigator, who spoke on condition of anonymity for security reasons, said counterfeiting is a better business since cocaine production has much higher overhead and transport and processing are far more complicated. Criminal penalties tend to be much higher as well.
Counterfeiters earn up to $20,000 in real currency for every $100,000 in false bills they produce after expenses, the investigator said.
He described the process: First, design: Software such as Corel Draw or Microsoft Office is used. Then comes photolithography, the etching of metal plates, offset printing and finishing.
Finishing is next: A sheet of bills is lightly coated with varnish. Individual bills, typically 12, are then cut from the sheet.
Security strips are inserted with needles and affixed with glue applied with medical syringes. (Hold a $20 bill up to the light and you can see a strip with “USA TWENTY” printed repeatedly across it).
The bills now pass through what counterfeiters call an “enmalladora,” or netting machine: Two rollers covered with coarse fabric to give them a rough texture.
The last step: Sand down the bills with fine sandpaper.
“It takes four or five days to make $300,000” in counterfeit notes, the investigator said.
Well-crafted bills are easily introduced into circulation in the United States in retail stores, where clerks are less vigilant, the Secret Service agent said.
Only $100 bills get shipped by counterfeiters to the United States, while $10s and $20s are sent to Peru's neighbors, Portocarrero said. Demand is particularly great in Argentina and Venezuela because currency controls make the dollar so coveted and they mostly circulate on the black market.
Counterfeiters employ the methods of cocaine traffickers to get their product abroad: Couriers carry notes in false-bottom suitcases, hide them in handcrafts, books, food products. People have even swallowed bills rolled up in latex for intestinal journeys.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Svetlana Alexievich of Belarus wins Nobel literature prize
- Concern is clear among visitors to China’s glass-bottom bridge
- Russian airstrikes intensify in Syria
- Saudi Arabia: 717 pilgrims dead in hajj stampede
- Scientists win Nobel chemistry award for work on DNA repair
- Spreading Israeli-Palestinian clashes spurred by violence in Jerusalem raise fears of new uprising
- Iran’s supreme leader bans talks with U.S.
- U.S. commander: Afghans requested deadly U.S. airstrike
- Syria presidency condemns destruction of Palmyra’s arch
- Eastern European gangs smuggle nuclear materials, seek terrorist clients