Vargas v. United States

114 Fed. Cl. 226, 2014 U.S. Claims LEXIS 33, 2014 WL 320782
CourtUnited States Court of Federal Claims
DecidedJanuary 27, 2014
DocketNo. 12-508C
StatusPublished
Cited by34 cases

This text of 114 Fed. Cl. 226 (Vargas v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vargas v. United States, 114 Fed. Cl. 226, 2014 U.S. Claims LEXIS 33, 2014 WL 320782 (uscfc 2014).

Opinion

OPINION AND ORDER DENYING DEFENDANT’S MOTION TO DISMISS

KAPLAN, Judge.

This case is before the Court on the motion of the defendant, the United States of America (hereinafter “the government”), to dismiss for failure to state a claim upon which relief can be granted under Rules of the Court of Federal Claims (“RCFC”) 12(b)(6). The plaintiff, Claudia Astrid Hurtado Vargas (“Hurtado”), a Colombian citizen, alleges that the government breached express and/or implied contracts it entered into with her to secure her services as a confidential informant in connection with criminal investigations that U.S. law enforcement authorities conducted in Colombia between 1998 and 2001. Specifically, Hurtado claims that the government violated its contractual obligation to provide her with protection and judicial assistance in exchange for her services, when it failed to timely and effectively notify the Colombian government of her status as a confidential informant for U.S. law enforcement. As a result of this breach, she claims, Colombian authorities subjected her to a criminal investigation, which resulted in her arrest, trial, conviction, and incarceration. Hurtado seeks $15 million in damages with interest and the costs of this suit.

The government has moved to dismiss the complaint for failure to state a claim upon which relief can be granted. The government’s central argument is that Hurtado has not alleged sufficient facts to show that the government officials with whom she dealt had actual authority to obligate the United States to provide her with the kind of protec[229]*229tion and assistance she claims she was promised. Def.’s Mot. to Dismiss at 1. It contends that “the gravamen of the breach [Hurtado] alleges” is “the failure of the United States to intervene in foreign litigation,” which “involves a matter committed by [28 U.S.C. § 516] exclusively to the discretion of the Attorney General.” Id. Accordingly, the government argues that, as a matter of law, the officials with whom Hurtado allegedly contracted lacked the authority to bind the United States to act to protect her in connection with her investigation, prosecution, and incarceration by the Colombian government. Id. at 4.

For the reasons set forth below, the Court concludes that Hurtado has alleged sufficient facts to state a claim for breach of contract. Accordingly, the Court denies the government’s motion to dismiss.

BACKGROUND1

A. The Alleged Agreement

Hurtado alleges that in 1997 and 1998, she entered written agreements with U.S. authorities to serve as a confidential informant in connection with two separate law enforcement investigations. Compl. ¶2. The first agreement, entered with the Internal Revenue Service in 1997, provided that Hurtado would serve as a confidential informant on an investigation of tax evasion operations by U.S. persons connected to Colombia. Compl. ¶ 6. In late 1998, after her work for the IRS ended, Hurtado entered a second written agreement, under which she served as a confidential informant for the United States Customs Service (“USCS”), in connection with the activities of the El Dorado Task Force. It is this agreement that gave rise to Hurtado’s allegations of breach in this case.2

According to the complaint, the El Dorado Task Force was created in 1992 “to address the prolific money laundering threat in New York.” Id. at ¶ 13. The Task Force was operated out of the USCS’s Special Agen1>in-Charge Office in New York; it targeted money laundering systems and financial crimes through undercover investigations, outbound operations, regulatory interventions, and other techniques. Id. at ¶ 13. By 2001, the Task Force was comprised of 185 individuals from 29 federal, state, and local agencies, including the FBI, the New York Police Department, and the New York State Banking Department. Id.

The 1998 agreement contemplated that Hurtado would perform acts in Colombia that would be considered criminal offenses there. Compl. ¶ 36. According to Hurtado, the government agreed to “protect [her] and provide her judicial assistance in relation to the activities that she would perform as a confidential informant.” Id. at ¶ 16. Hurtado alleges that she entered the agreement with the understanding that she would have the “absolute protection and assistance of the United States in relation to her work, and that the Colombian government was fully informed and aware of operations with confidential informants” in Colombia. Id. at ¶ 18.

B. Hurtado’s performance under the contract

In accordance with the 1998 written agreement, Hurtado served as a confidential informant supporting the work of the El Dorado Task Force from 1998 to 2000. Compl. ¶ 22. She alleges that she performed her work under the direction of agents with the Task Force, with the consent and approval of the United States Attorney’s Office for the Eastern District of New York. Id. at ¶ 24.

As part of her services, Hurtado impersonated a money launderer in Colombia and provided information regarding drug money [230]*230in the United States to USCS officials and to Bonnie Klapper, an Assistant United States Attorney (“AUSA”) in New York. Id. at ¶¶ 15, 25. Hurtado “direet[ed] the individuals with whom she contracted to deliver money to individuals who were in fact undercover agents.” Id. at ¶ 25. Once the drug proceeds were delivered, the United States opened investigations into the individuals who delivered the money. Id.

The El Dorado Task Force and the Department of Justice Forfeiture Fund paid Hurtado a percentage of the dollars delivei’ed to the undercover agents as well as a percentage of any other dollars seized during the investigation in which she served as a confidential informant. Id. at ¶ 32. Hurtado alleges that the United States has acknowledged that her work as a confidential informant led to the investigation, prosecution, and conviction of at least three criminals. Id. at ¶ 27.

C. The Alleged Breach of Contract

Money laundering and some of the other activities in which Hurtado participated pursuant to her agreement with the United States are criminal offenses in Colombia. Compl. ¶ 36. During the time that Hurtado worked as a confidential informant, the U.S. government did not officially notify Colombian authorities of Hurtado’s activities; nor did it request support or cooperation from the Colombian government. Compl. ¶¶ 38-39.

In 2001, Colombian authorities launched an investigation of the money laundering activities in which Hurtado had participated in connection with her service as a confidential informant. Id. at ¶ 40. On or around September 26, 2001, the Office of the Colombian Attorney General sent a letter to the United States requesting information about proceedings in the Eastern District of New York related to money laundering of funds from cocaine sales in Colombia. Id. at ¶ 41. Hurtado alleges that the information requested was to be used by the Colombian authorities to inform investigations for money laundering taking place in Colombia in which Hurtado was identified as a suspect. Id. at ¶ 41.

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Cite This Page — Counsel Stack

Bluebook (online)
114 Fed. Cl. 226, 2014 U.S. Claims LEXIS 33, 2014 WL 320782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vargas-v-united-states-uscfc-2014.