You have mentioned previously the removal of a package by Mr. Maizel from the zone, under the seat of a car. Would you explain that transaction, please? A. The package was removed around five o'clock on a Tuesday. The exact date, I do not recall. Mr. Maizel told me this was to be delivered by him personally to Mr. Gubbay. Mr. Gubbay at that time was here in Puerto Rico. Cobalex 500, Cobalex 1000, ATIPI ampoules, Rubrohepar, and Neocortisone ampoules, were put into this package. About 8 or 9 different products of 5 or 6 names were put into this box and were put under the seat of Mr. Marcos Maizel's car, a '64 or '65 blue Chevrolet. The box was put there by Mr. Valentine, who is the janitor of the Pharmacal, and Maizel who was there.

Q. Did you observe on that date Mr. Maizel leaving the zone?

A. Yes, as soon as the package was put in, he left in the car to Mayaguez.

Q. Where was the package placed in the car?

A. The package was placed underneath the front right seat.

Q. Did the seat have to be removed?

A. Yes, the seat had to be removed.

Q. Did you accompany Mr. Maizel out of the zone on that particular date?
A. No, Sir. I did not accompany Mr. Maizel on that occasion.

Q. Did you know whether or not the car was searched down at the gate?

A. No, Sir. I do not know if it was searched.

Q. Mr. Pérez, do you know of other instances where finished products were removed from the zone?

A. Yes, there were many occasions. For instance, once, there was a lady who got sick here in Puerto Rico. A package of medicine was taken out by Dr. Rosa in his car, the Mustang which I mentioned before, to a family here, by the name of Arroyo. A lady had some sort of a sickness in her skin. He took quantities of medicines to cure this lady. The box was put in the glove compartment of the car and was then given to these people.

Q. Did these items, to your knowledge, require prescription?

A. Yes, I consider that some tablets which were barbiturates, called Epanal 2, Epanal 3, and Epanal 5, which are sleeping tablets, or a tranquilizer. These tablets were handed over, for try-out to this family.

Q. Do you have actual knowledge of the passing of these items to this family? A. Yes, I do have knowledge of this.

Q. Did you observe such a transaction?

A. Yes, I went to deliver some of these medicines.

Q. Do you know whether or not under Puerto Rico laws a prescription is required for the dispensing of these medicines?

A. As far as I know the law concerning drug is the same as in the United States. Q. Earlier in this interview you mentioned that some samples were taken from the zone and given to Mr. Luis Garraton of San Juan. Would you amplify that statement, please?

A. Yes. At one time Mr. Maizel came over to me and told me to put a certain amount of medicines of various types, about 10 different types of medicines, 4 or 5 jars of each or 4 or 5 packages of each unit. They were put in a box. It was an ampoule box of a size of about 6.5 cubic feet. It was filled up to the top, put in the truck, which was used for bringing the sea water from La Parguera, and I received instructions to take this box to this man.

Q. Did you prepare the packaging of this material and address it to Mr. Garratón?

A. No, I was given an envelope, with the name of Gómez on it, to be given to Mr. Gómez here at Mayaguez at an insurance agency. These men that were there Mr.

and Mr.

Q. Did this material go to Mr. Gómez or to Mr. Garratón? Did you personally deliver this material to Mr. Garratón?

A. Yes, Mr. Garratón was at Mr. Gómez' office. It's an insurance agency in the shopping center, near Pueblo Supermarket. We left the box there at the office.

Q. Could you describe Mr. Garratón, please?

A. Mr. Garratón is a man of about 5'11"; he is a very agreeable person; he is dark haired; and his complexion is olive.

Q. Are there any other distinguishing marks in Mr. Garratón?

A. At the moment, I do not recall.

Q. Does he wear a mustache or he is cleanface?

A. He is clean face. He had the aspect of a businessman.

Q. On this delivery of samples to Mr. Garratón, were these samples declared at the zone?

A. No Sir, they were not declared. At a later date, I was supposed to mail some literature and some boxes, empty boxes of different products that we had at United Pharmacal, and deliver them to a man there by the name of Rodriguez. Q. There being where?

A. At Mr. Gómez' office, at Gómez Hermanos, an insurance agency.

Q. Were these boxes also intended to Mr. Garratón?

A. I do not know exactly if this was intended to Mr. Garratón or not. I was only told by Mr. Maizel to hand this package over to them.

Q. And there were no pharmaceutical in this particular delivery?

A. No., Sir.

Q. I want now to consider the matter of narcotics handled by this company. Do you know, the storage, I should say the receipt and storage, of narcotics by United Pharmacal here in the zone?

A. The only person that keeps records on this is Mr. Rafael Pagán, who is a pharmacist, but the door, where the narcotics are kept, in other words the receiving department, is currently open.

Q. There are narcotics in storage in that place?

A. Yes, there are.

Q. What type of narcotics, if you know, do they have in storage?

A. They have some drums, cardboard drums, of lidocaine. That's at the entrance of the receiving department.

Q. What about phenobarbital?

A. Phenobarbital is also contained in another drum, placed by the store room that can be seen as you walk by.

Q. Do you have knowledge of any occasion where these narcotics of the company were illegally removed from the zone, for any illegal purpose?

A. At different times, I can recall, an occasion where the guard at the gate of the free zone was told to check some people, because he was told that they were missing certain quantity of material. On occasions barbiturates, especially lidocaine was given to people who complained of pains and they wanted something to relief a toothache or what they had.

Q. The guard was asked by officials of United to check person by person? A. Yes. Mr. Maizel asked me to tell the guards about it. I mentioned the matter to Mr. Cuebas, who at that time was in charge of the zone. There is one particular instance when I had a toothache. This was about a week ago. You know, a week ago I was unemployed but I went to United Pharmacal and told them about the toothache. Mr. Alvaro Gazón, who is in charge of the ampoule department, brought me to my house some lidocaine so that I should dissolve in water and use it to relief my toothache.

Q. This was raw material?

A. Yes, Sir, raw material and it is still in my house, in the same way he gave it to me.

Q. Mr. Pérez, I am sure that you are aware that the Federal law requires certain precautions to be taken in the storage of narcotics. I wonder if you can tell me about the control exercised by United in the maintenance and storage of narcotic compounds.

A. On occasions, for instance, when I had to go to get the sea water, in the morning, it was brought in the plant. I had to get the keys, which were all tied together with a piece of wire. There was also the key to the storage room where they keep the alcohol and the barbiturates. If I had wanted to take a drum full of barbiturates, or a handful, or a pound or so, they could have never known it.

Q. What about the maintenance of records? Do you have any knowledge if they have to maintain records of these barbiturates?

A. As far as I know, Mr. Págan had problems with Dr. Rosa, with Dr. Mura and even with Mr. Maizel. He worked from eight o'clock in the morning to five o'clock in the afternoon. After that time either the chemist or Dr. Rosa, or Dr. Mura, anyone of them could stay and make the preparations, pills, tablets, or ampoules, and they needed to get the barbiturates, drugs, or other materials. The next day, when Mr. Págan came this was not informed. Very often, when Mr. Págan did a physical count, he was missing a pound or half a pound, or two pounds, or three kilos or something like that. Later on, Dr. Rosa would come and say, I took this on such and such a date."

Q. Were the records then adjusted?

A. As far as I know, no. They did not correct the record.

Q. But you know actually Mr. Págan having in several instances been concerned over the loss of narcotics.

A. He once quit his job for five weeks. At that time Maizel had to go and talk to him and bring him back to the company. The reason for him leaving, he said was because there was no organization as far as using the materials and he did not want to get involved in problems with internal revenue people. Q. Also, as a licensed pharmacist he is professionally responsible for this maintenance. Furthermore would not he have criminal liability also?

A. Yes, he would.

Q. When we were discussing narcotic preparations you mentioned going to obtain ocean water. Would you explain what the ocean water is used for, please? A. The medical use, I do not know exactly, but I was told it was for the asthma, for people who suffered from asthma.

Q. You mean the ocean water was used in the manufacture of a product? A. Yes, it is, for a product called "Bioceane Oliviero." I used to get this water at La Parguera in Lajas, P.R.

Q. How would you obtain the water?

A. We used to go out in a boat, approximately 2 or 3 miles offshore. There was one fellow who helped me to take the equipment in the boat, and the boat owner. We used to go out and pump the water into carboys with a pump that has a hose, 25 or 30 feet deep, and from there it was brought to United Pharmacal. It was then passed through a process and then put in ampoules.

Q. Was it filtered?

A. It was filtered, yes.

Q. Did you always take the water from a specific spot or did you take it at random?

A. When the sea was a little rough we took it from anywhere. There was no specific place to get it. It could be from deep water or close to shore.

Q. So, water obtained for the manufacture of this product was taken from various points at La Parguera.

A. Yes Sir. This is correct.

Q. Mr. Pérez, I am pursuing this matter of the sea water. I show you several photostatic copies of returned checks from the United Pharmacal obtained from the files this morning and I will ask you to identify the person to whom these checks are made payable. The first is to Claudino Ramos Rosado.

A. Yes, Sir. Claudino Ramos Rosado was the operator of the boat, we called him "Captain Pilica."

Q. And he was the person who operated the vessel.

A. Yes, Sir.

Q. Now, I show you a second check which reflects the payment for 3 or 4 trips for bringing sea water, and I notice that 3 trips of six hours each at $4.00 an hour. To your knowledge did they agree upon this compensation?

A. At one time, directly on order from Mr. Maizel and Mr. Gubbay, I was instructed to take cash money with me and to give the man $8.00 extra besides the regular pay.

Q. So, in other words, he was compensated by cash and by check for this trip. A. Yes, Sir.

Q. Now, I show you two other checks similarly obtained from United this morning. I would ask you to identify the payees of these two checks.

A. Aurelio Lugo Ortiz, who at one time worked for the company, is the payee of the two checks.

Q. Now, these checks are in payment of transportation from Mayaguez to La Parguera.

A. Yes Sir.

Q. Now Mr. Pérez, I want to ask you again regarding the entertainment allowance of Mr. Maizel. I would like to inquire to you how you were advised of this entertainment allowance.

A. Some time ago, at the beginning of my employment at the United Pharmacal I was called to the office and there was Dr. Mura, Dr. Jacques Rosa, and Mr. Maizel, and Mr. Shalom. We had quite an argument because we were supposed to do some work, as a representative, and talk to some people, and this would be done at our own expense. We called it to the attention of Mr. Andre Shalom and had quite a discussion about it, and then he had the authorization for that expenses money for entertainment.

Q. Now, Mr. Pérez, Mr. Maizel denies receipt of $150.00 entertainment allowance, and he further denies that any officer or employee of the company is receiving or has ever received such an allowance.

A. To the best of my knowledge, he received this check and also in the check was included the money for housing. For the house Mr. Maizel receives $200.00, paid by United Pharmacal Laboratory.

Q. Mr. Maizel produced check from the company payable to a gentleman named Cruz, who is the owner of the house and apparently this corroborates that the company pays for his house.

A. I do not know exactly the person that you have named, but I know that the company does give him allowance for the house and for entertainment.

Q. I repeat again, you received an entertainment allowance of $50.00 a month. A. Yes, I did receive this amount when I was working there.

Q. Mr. Pérez, do you have anything else to add to the statement that you have previously given?

A. No, Sir. I do not have anything else to add at the moment.

Q. Due to the lack of time, I must return to Washington and Mr. Cruz to San Juan. We will adjourn this interview with the expectation to have you give a further statement or that if any other fact should come to your attention or to your recollection, we trust that you would advise customs officials either in Mayaguez or in San Juan.

A. Yes, Sir. I will.

Q. I will ask you then Mr. Pérez, do you give this statement voluntarily, and under no threat or coercion?

A. Yes, Sir. I do.

Thank you.

I have read this statement consisting of 22 pages, have initialed or signed each page, and have made and initialed all necessary corrections. The contents of this statement are true and correct to the best of my knowledge and belief.

November 24, 1967.

Witnesses:

I. BAEZA.