Floyd Carlton Caceres served as [[Panama|Panamanian]] dictator [[Manuel Noriega]]'s personal pilot and ran his drug transportation network. Carlton also managed the drug operation's logistics, flying cocaine and moving money between the United States and Panama. The operation unraveled when Carlton lost $1.8 million in cash entrusted to him by [[Colombia|Colombian]] drug lords to fly from [[Los Angeles]] to [[Panama City]]; he had delegated the task to an underling who absconded with the money.[^1] ### Disappearance of Teofilo Watson To repay the debt, Carlton arranged to fly a drug load north for free, but again delegated the mission to his partner Teofilo Watson, who disappeared with 530 kilos of cocaine. Carlton suspected [[Costa Rica|Costa Rican]] [[Contras|Contra]] leader [[Sebastian Gonzalez|"Guachan" Gonzalez]] and his M-3 Contra group had killed Watson in an ambush at an airstrip owned by [[Central Intelligence Agency]] operative [[John Hull]]. "They killed him and then took the airplane and the drugs to Mr. Hull's ranch," Carlton testified. The plane was cut up and thrown into a river on Hull's property, and the cocaine was spirited to the United States.[^1] The Colombians sent a hit man named Alberto Aldimar after Carlton, who kidnapped and beat Carlton's friends and employees, then brought power shovels to dig up Carlton's ranch searching for hidden cash. The Colombians also kidnapped Hull's daughter; Hull ransomed her back and blamed the Communists.[^1] ### Connection to Hugo Spadafora Carlton fled to [[Miami]] where he was found by Dr. [[Hugo Spadafora]], a Contra fighter who was gathering evidence of Noriega's drug trafficking. Carlton shared intimate details of Noriega's drug trade with Spadafora, giving him the names of pilots and dates of drug flights through Costa Rica, and implicating Gonzalez. "Dr. Spadafora was a very honest man," Carlton said. "He was an idealist and he tried to get the best for anyone needing justice." Spadafora announced he was going to "have a bomb explode in Panama" with the information. Shortly afterward, Spadafora was murdered, tortured and decapitated, by Noriega's agents.[^1] ### Government Witness Carlton would later astonish [[DEA]] officials with his photographic recall of Noriega's drug deals and became the U.S. government's star witness against the Panamanian dictator at his trial on drug charges. Carlton testified he tried to inform the DEA about Noriega's drug dealing in January 1986 but was rebuffed: "When I mentioned the name of General Noriega, they immediately became upset." The DEA agents "did not try to contact me again."[^1] ### DIACSA Connection Carlton's drug operations were run through [[DIACSA]], a Miami aircraft company he used as the U.S. headquarters for his Panamanian smuggling venture with Noriega. He and his partners plotted drug flights and arranged cocaine profit laundering through DIACSA's offices. The company was later hired by the [[State Department]]'s NHAO to deliver "humanitarian" aid to the Contras, despite being penetrated by an undercover DEA agent at the time.[^1] ### Footnotes [^1]: Gary Webb, *Dark Alliance*, Chapter 12: "This guy talks to God"