N.J. Shah is arrested, but INS agents are able to get him released. Though suspicious, Shah continues laundering activities on a limited basis. They learn Nick has moved to Ecuador, and agents believe Diaz had been tipped off about INS operations. Working through their informant, agents have their first meeting with Nick Diaz in a hotel room in Quito, Equador. Agents agree to smuggle aliens for Diaz.
Entire meeting is recorded.
Operation Seek and Keep begins moving aliens for Diaz by private plane from Nassau to Gainesville, Fla., and then to Dallas. Diaz, pleased with the new arrangement, plans to increase the number of aliens being smuggled. Money is exchanged and plans are made to move 31 aliens. After presenting this and other evidence to a grand jury, INS gets arrest warrants for Diaz and others. Bahamian police and intelligence officers, working with INS agents, arrest Diaz, Gulu and the 31 aliens in a stash house in Nassau.