Man or Myth? American Drug Lord 'La Barbie' Fascinates and Terrorizes

May 19, 2010— -- For some along the Texas-Mexico border, Edgar Valdez-Villareal is an American success story.

Valdez-Villareal is a wealthy businessman from Laredo, Texas, who has hit the big time, raking in millions of dollars. Now living the good life in Mexico, he drives fancy cars and has been nicknamed "La Barbie," thanks to his good looks.

Beautiful women want to be with him, and back in Texas, kids say they want to be like him.

For more on La Barbie, watch 'World News with Diane Sawyer' tonight on ABC.

"Guys like money," said one male high school student who had heard stories about Valdez-Villareal. "They get fame, they get girls, they get houses. They get everything they want."

But on both sides of the border, police are watching La Barbie, too. They say they he is involved in drug smuggling, money laundering and murder.

Experts in narco terrorism told ABC News that the 36-year-old modern day mobster is on the verge of becoming a top boss within a Mexican drug cartel, the first American ever to do so.

"La Barbie is a fascinating character that has reached the proportions of myth," said Fred Burton, vice president of intelligence for Stratfor Global Intelligence, who has followed Valdez-Villareal's rise to power. Burton is a former counterterrorism agent with the U.S. State Department.

"He's a kid you would not expect, coming from a nice family, upper-middle class, living the American dream," Burton said. "And the next thing you know, he's swallowed up in this narco business and has become highly successful."

So how did Valdez-Villareal go from being a high school football standout in Texas to one of the most wanted narco bosses in Mexico? Authorities say it all began by selling pot on the streets of Laredo.

"We were going to buy 300 pounds of marijuana. We met up with him, we talked, we negotiated," recalled Webb County Sheriff Martin Cuellar.

When the officers went to complete the deal, Valdez-Villareal never showed up.

"You know, I guess he smelled something," said Cuellar.