Notes on Kennedy's assassination
1. Kennedy was pressuring for a full
inspection of Dim0na, which some in the CIA and Mossad couldn't allow.
Soon after taking office in 1961, President Kennedy pressured Israel to
allow an inspection. Ben Gurion agreed, and an American team visited the
installation that May.
In
the 1960's Americans visited the first floor,
which is actually the 2nd floor of the brown building without windows.
They saw the restaurants and the offices.
A special wall had been
constructed hiding the elevators to the underground levels.
1963: Kennedy refuses to sign any security arrangement with
Israel. After Kennedy assassination brings the very pro-Israel
Lyndon Johnson to power. (Not surprisingly there is an
assassination conspiracy theory that the
Mossad killed Kennedy.)
2. E Howard
Hunt's deathbed confession circa Jan 2004: former
CIA agent and Watergate conspirator E. Howard Hunt admits he was
approached to be part of a CIA assassination team to kill JFK.
He loved action as much as he hated communism, and he soon began
operating with a level of arrogance entirely typical of the CIA. He was
instrumental, for instance, in planning the 1954 coup in Guatemala that
overthrew the left-leaning, democratically elected president, Jacobo
Arbenz, and ushered in forty years of military repression, which
ultimately cost 200,000 Guatemalans their lives. Years later, when asked
about the 200,000 deaths, E. Howard said, "Deaths? What deaths?"
Hunt alleges on the tape that then Vice President Lyndon B. Johnson was
involved in the planning of the assassination and in the cover-up,
stating that LBJ, "Had an almost maniacal urge to become president, he
regarded JFK as an obstacle to achieving that." Shortly before his
death, his father had felt "deeply conflicted and deeply remorseful"
that he didn't blow the whistle on the plot at the time and prevent the
assassination, but said that everyone in the government hated Kennedy
and wanted him gone in one way or another. Kennedy's promise to "shatter
the CIA into a thousand pieces and scatter the remnants to the wind" was
being carried out and this infuriated almost everyone at the agency.
Read the Rolling Stone article regarding Hunt's confession to his
son.
“LBJ was the
head of a long list of those who were waiting for a change in the
executive branch.”
Brief
history Cord Meyer:
Allen W. Dulles made contact
with
Cord Meyer
in 1951. He accepted the invitation to join the CIA. Cord was a graduate
of Yale, and a darling of the East Coast elite in power at the time.
Dulles told Meyer he wanted him to work on a project that was so secret
that he could not be told about it until he officially joined the
organization. Meyer was to work under
Frank Wisner,
director of the Office of Policy Coordination (OPC). This became the
espionage and counter-intelligence branch of the CIA.
Wisner was told to create an organization that concentrated on
"propaganda, economic warfare; preventive direct action, including
sabotage, anti-sabotage, demolition and evacuation measures; subversion
against hostile states, including assistance to underground resistance
groups, and support of indigenous anti-Communist elements in threatened
countries of the free world."
But by
August, 1953,
Joseph McCarthy
had accused
Cord Meyer of being a communist! By 1954,
Cord Meyer
became disillusioned with life in the
CIA.
It would not be the last time.
In
November, 1954, Meyer replaced
Thomas
Braden
as head of
International Organizations Division. Meyer began spending a lot of time
in Europe.
One of Meyer's
tasks was to supervise Radio Free Europe and Radio Liberty, the United
States government broadcasts to Eastern Europe. According to
Nina
Burleigh (A
Very Private Woman) Meyer was "overseeing a vast 'black'
budget of millions of dollars channeled through phony foundation of a
global network of associations and labor groups that on their surface
appeared to be progressive".
On 18th December,
1956, Mary and Cord's nine-year-old son, Michael, was hit by a car on
the curve of highway near their house and killed. It was the same spot
where the family's golden retriever had been killed two years earlier.
In 1958, Mary filed for divorce, citing In her divorce petition
"extreme cruelty, mental in nature..."
In
October 1961, Mary Pinchot (Meyer) began visiting
John F.
Kennedy in the
White House. She had been friends with Jackie, and knew JFK as a
neighbor from when they lived near each other. It was about this time
she began an affair with the president. Mary told her friends, Ann and
James
Truitt,
that she was keeping a diary about the relationship.
James
Angleton began bugging Mary's telephone and bedroom after she left
Cord Meyer.
This information came from an interview with Joan Bross, the wife of
John Bross, a high-ranking
CIA
official. Angleton became a regular visitor to the family home and took
Mary's sons fishing.
By 1963, LBJ had settled on Cord Meyer,
Jr. as an opportunist, who had little left to live for, to head another
secret organization. The night before the Kennedy assassination, Lyndon
Baines Johnson met with Dallas tycoons, FBI moguls and organized crime
kingpins - emerging from the conference to tell his mistress Madeleine
Duncan Brown that "those SOB's" -the "Irish Mafia" that he called the
Kennedy family-would never embarrass him again.
"Edward Clark, acting on orders from Lyndon Johnson,
had arranged for all the parties who wanted Kennedy killed to contribute
either cash or manpower. It was like a poker game with each player
putting his chips in the pot. Oswald was the CIA's contribution. Malcolm
Wallace was Johnson's chip. The mob contributed two expert hit men to
take the head-on shot as a back-up to Oswald and Wallace. Big oil,
namely Murchison, put up the cash.
In return, big oil got their Oil Depletion Allowance
and the Military Industrial economy they dreamed about; the CIA
maintained their stonghold on power and escalated the Vietnam conflict
to a full blown war, the mob silenced Attorney General Robert Kennedy's
pressure on Hoover to combat their criminal activities; Lyndon Johnson
avoided being indicted for his corruption with Billy Sol Estes and Bobby
Baker, almost certain imprisonment, and gained his zenith as the
president of the United States. Not bad- eh?" more at the website
LBJ killed Kennedy
In
March, 1976,
James
Truitt, a former
senior member of staff at the Washington Post,
gave an interview to the National Enquirer.
Truitt told the newspaper that Meyer was having an affair with
John F.
Kennedy
when he was assassinated. He also claimed that Meyer had told his wife,
Ann Truitt, that she was keeping an account of this relationship in her
diary. Meyer asked Truitt to take possession of a private diary "if
anything ever happened to me".
Meyer was murdered on 12th October, 1964.
In
February, 2001, the writer,
C. David
Heymann, asked
Cord Meyer
about the death of
Mary
Pinchot Meyer: "My father died of a heart attack the same year Mary
was killed, " he whispered. "It was a bad time." And what could he say
about Mary Meyer? Who had committed such a heinous crime? "The same sons
of bitches," he hissed, "that killed John F. Kennedy."
DIAGRAM OF A
PRESIDENTIAL ASSASSINATION
E. Howard Hunt scribbled the initials
"LBJ,"
standing for Kennedy's ambitious vice president, Lyndon Johnson.
I'm happy, are you happy?
Under "LBJ," connected by a line, he wrote the name Cord Meyer. Meyer
was a CIA agent whose wife had an affair with JFK; later she was
murdered, a case that's never been solved.
Next, his father connected to Meyer's name the name
Bill Harvey, another CIA agent;
Harvey was in constant conflict with Bobby Kennedy, who micromanaged
operations against Fidel Castro. Harvey profanely insulted the
president’s brother during a tense meeting, which led to Harvey’s
reassignment to Rome. His alcoholism worsened in Italian exile, and he
was forced to retire. He became a nonperson. When his supervision of the
plots to assassinate Castro was revealed, many labeled Harvey the
epitome of CIA excess.
also connected to Meyer's name was the name
David
Morales, yet another CIA man and a well-known, particularly vicious
black-op specialist.
David Sanchez Morales, aka "El Indio,"
worked for the CIA under the cover of Army employment. He was involved
in PBSUCCESS, the CIA's 1954 overthrow of the Guatemalan government, and
rose to become Chief of Operations at the CIA's large JMWAVE
facility in Miami. In that role, he oversaw operations undertaken
against the regime of Fidel Castro in Cuba.
Morales was involved in other covert operations of the
CIA, reportedly including plots to assassinate Fidel Castro, training
intelligence teams supporting the Bay of Pigs invasion of Cuba, the
CIA's secret war in Laos and its controversial Operation Phoenix in
Vietnam, and the hunting down of Che Guevera in Bolivia.
After Morales' retirement in 1975 he
returned to his native Arizona, and died of a heart attack in 1978. HSCA
investigator Gaeton Fonzi traced Morales to Wilcox, Arizona shortly
after Morales' death, and talked to his lifelong friend Ruben Carbajal
and a business associate of Morales' named Bob Walton. Walton told Fonzi
of an evening, after many drinks, when Morales went into a tirade
about Kennedy and particularly his failure to support the men of the Bay
of Pigs. Morales finished this conversation by saying "Well, we took
care of that son of a bitch, didn't we?" Carbajal, who had been
present at the confession, corroborated it.
And then his father connected to
Morales' name, with a line, the framed words "French Gunman Grassy
Knoll."
LBJ had Kennedy killed. It had long
been speculated upon. But now E. Howard was saying that's the way it
was. And that Lee Harvey Oswald wasn't the only shooter in Dallas. There
was also, on the grassy knoll, a French gunman, presumably the Corsican
Mafia assassin Lucien Sarti,
who has figured prominently in other assassination theories.
Lucien Sarti
worked for the French-Corsican heroin trafficker and convicted Nazi
collaborator, Auguste Joseph Ricord. It was claimed by the journalist
Stephen
Rivele, that
Antoine
Guerini organized the assassination of President
John F.
Kennedy. According
to his contact, Christian David, the killing was carried out by Sarti
and two other members of the Marseilles mob. It is believed Sarti fired
from behind the wooden fence on the grassy knoll. The first shot was
fired from behind and hit Kennedy in the back. The second shot was fired
from behind, and hit
John
Connally. The third
shot was fired from in front, and hit Kennedy in the head. The fourth
shot was from behind and missed
About
two (2) weeks before the assassination, Sarti flew from France to Mexico
City, from where he drove or was driven to the U.S border at
Brownsville, TX. Sarti crossed at Brownsville where he was picked up by
someone from the Chicago mafia [confirmed in the book "DOUBLE CROSS" in
Chapter 15]. This person drove him to a private house in Dallas rather
than his staying in a hotel where records would be left; Sarti traveled
on an Italian passport. It is believed the CIA were behind his death at
the hands of Mexican police.
"Cord Meyer discusses a plot with [David Atlee]
Phillips...
As for Dave Phillips he made himself useful to the agency working on
Guatamalan operations. In the CIA, he'd helped mastermind the violent
removal of a duly elected leftist president in Guatemala and assisted in
subterfuges that led to the murder of Che Guevara. A
CIA and Bay of Pigs veteran. Recruited William Harvey (CIA) and
Cuban exile militant Antonio Veciana.
a Miami Cuban named Antonio Veciana, the founder and chief finance
officer of Alpha 66, one of the most militant anti-Castro groups in
action at the time of Kennedy’s assassination.
He meets with Oswald in Mexico City. . . . Then
Veciana meets w/ Frank Sturgis
in Miami and enlists David Morales in anticipation of killing JFK
there. But LBJ changes itinerary to Dallas, citing personal reasons."
Sturgis had been the man contacted about devising a plot to murder
Castro. He had played both sides successfully, running guns to Castro's
revolutionaries and was now in charge of post-Castro gambling, as
Castro's Minister of Games of Chance. The new Cuban government didn't
know it yet, but Sturgis had turned against Castro and begun an
undercover dialogue with both the Havana Mob and the CIA.
David Atlee Phillips, the CIA's Cuban operations chief
in Miami at the time of JFK's death, knew E. Howard from the
Guatemala-coup days. Veciana is a member of the Cuban exile community.
Sturgis, like Saint's father, is supposed to have been one of the three
tramps photographed in Dealey Plaza. Sturgis was also one of the
Watergate plotters, and he is a man whom E. Howard, under oath, has
repeatedly sworn to have not met until Watergate, so to Saint the
mention of his name was big news.
In the next few paragraphs, E. Howard goes on to
describe the extent of his own involvement. It revolves around a meeting
he claims he attended, in 1963, with Morales and Sturgis. It takes place
in a Miami hotel room. Here's what happens:
Morales leaves the room, at which point
Sturgis makes reference to a "Big Event" and asks E. Howard,
“Are
you with us?”
E. Howard asks Sturgis what he's talking about.
Sturgis says, "Killing JFK."
E. Howard, "incredulous," says to Sturgis, "You seem
to have everything you need. Why do you need me?" In the handwritten
narrative, Sturgis' response is unclear, though what E. Howard says to
Sturgis next isn't: He says he won't "get involved in anything involving
Bill Harvey, who is an alcoholic psycho."
"Actually, there were probably
dozens of plots to kill Kennedy, because everybody hated Kennedy but the
public"
"If the United States ever experiences an attempt
at a coup to overthrow the government, it will come from the CIA. The
agency represents a tremendous power and total unaccountability to
anyone."
--JFK McClellan Sr has been gaily
telling interviewers that LBJ resorted to murder because he was worried
about being dropped as vice-president by Kennedy. "I knew LBJ well. He
was very brutal," McClellan Sr said. -Bush
aide embarassed by Dad's LBJ killed JFK theories.
When president Kennedy was shot in Dallas, Texas in
1963, police and the FBI stormed the Texas Book Depository and located a
rifle near an open window. The so-called "sniper's nest" had been made
by arranging several cardboard boxes so as to both hide the shooter from
anyone who might have been on the 6th floor at the time and also to
support the rifle while the shooter took aim from the window overlooking
the president's motorcade.
Investigators scoured the scene for fingerprints but the
rifle and the boxes had apparently been wiped clean. The only forensic
element that could possibly identify the killer was a partial
fingerprint that was lifted from one of the cardboard boxes.
The print, as it turns out, belongs to Malcolm Wallace, the
long time friend and associate of president Lyndon Baines Johnson. -LBJ killed Kennedy
Oswald was going to be caught and they knew
it...better to lose him than not to get it done. He was nothing to them.
The way
in which Mac Wallace and Oswald met is not known. We know they did meet
and that they were together on the 6th floor of the Texas School Book
Depository when Kennedy was shot.
Johnson's attorney, Edward Clark
also brought in two (2) other participants, one a backup shooter
[Richard Cain] and the other a guard disguised as a Secret Service agent
[Charles "Chuckie" Nicoletti].
ASSASSINATION PAYMENT:
Each man involved in the JFK assassination plot received $50,000. The
money raised for the hit on the president had come from wealthy
right-wing Texas oilmen like Syd Richardson, H L Hunt, Clint Murchison
and Mike Davis.
On Aug. 16, 1978, Liberty Lobby Inc. published an article by former CIA
officer Victor Marchetti in its magazine, The
Spotlight.
In that article, Marchetti stated that E. Howard Hunt, also a former CIA
officer, was involved in the JFK assassination. Hunt sued Liberty Lobby
for libel in federal district court and won. However, in the appeals
trial, former CIA asset Marita Lorenz testified that on Nov. 21, 1963,
the day before the assassination, E. Howard Hunt was in Dallas, where he
delivered "sums of money for the so-called operation" to a small group
of men that included former CIA agent Frank Sturgis of Watergate fame
and Oswald killer Jack Ruby. The federal jury found for Liberty Lobby
Inc. and awarded costs to be assessed against Hunt.
The mastermind and
primary driving force behind the JFK assassination -- LBJ's personal
attorney -- Edward Clark, though he never directly admitted a payoff for
the assassination, told confidantes at his law firm that the total was
$2 million cash for him alone from the Texas right-wing oilmen. -
Robert Gaylon Ross' 1½-hr interview with Lyndon
Johnson's mistress, Madeleine Duncan Brown
Who exactly is Malcolm Wallace?
Malcolm
Wallace was born and educated in Texas. He was an intelligent man who
graduated from the University of Texas and it was
Edward Clark
who
introduced Wallace to
Lyndon
B. Johnson
and in October, 1950, he
began working with the United States Department of Agriculture in
Texas.
He first came to the attention of authorities when he was arrested in
1951, tried and convicted of killing a professional golfer named John
Douglas Kinser. At the time, Kinser was having an affair with Lyndon
Johnson's sister, Josefa -- and was also involved with Wallace's wife.
Josepha was an alcoholic and drug user. She had a reputation for being
promiscuous and, especially when she was high, she disclosed personal
information and stories about Lyndon. It was feared that she might have
already disclosed some illegal acivities about Johnson to Kinser,
specifically certain activities he had engaged in during his race for
the Senate.
In 1984, Estes' lawyer, Douglas Caddy, wrote to the
Department of Justice claiming that Estes, Lyndon B. Johnson,
Malcolm "Mac" Wallace, and
Cliff Carter had been involved in the murders of
Henry Marshall, George Krutilek, Harold Orr, Ike Rogers and his
secretary, Coleman Wade, the president's sister
Josefa Johnson, John Kinser and
John F. Kennedy. Caddy added, "Mr. Estes is willing to testify that
LBJ ordered these killings, and that he transmitted his orders through
Cliff Carter to Mac Wallace, who executed the murders."[6]
Estes agreed to provide supporting proof to the FBI, which proffered
immunity in exchange but Estes ultimately refused to produce any
evidence.
This,
then is the solution to the case: LBJ had Kennedy killed to save his
political career and stay out of prison. It was just business as usual
for LBJ and his little group; Texas was a rough old place in 1963 and
LBJ was, in effect, running his own crime syndicate. And, of course, he
became president.
Estes
was accused of swindling investors, banks and the federal government of
at least $24 million through false
agricultural subsidy claims on cotton production and the use of
non-existent supplies of anhydrous ammonia fertilizer as
collateral for loans. He was eventually found guilty of additional
federal charges and sentenced to fifteen years in prison.
The "Arranger" -- Edward Clark
If the decision to murder Kennedy was made that night at the
Murchison mansion, the plans must have been ready much earlier. This
meeting in Dallas, the night before the assassination, was merely the
failsafe point where the crafted and pre-meditated murder was given the
"go ahead." It was a done deal.
From the testimony of Billy Sol Estes, a close associate of Johnson,
we learn that the plot was coordinated by a man named Clark.
Edward
Aubrey Clark [right] was born San Augustine, Texas on 15th July,
1906. He obtained his first degree from Tulane University in New
Orleans. In 1927 Clark married Anne Metcalfe of Greenville, Mississippi,
and heir to the largest cotton plantation system in the South.
Clark received a law degree in 1928 from the University of Texas.
After leaving law school, Clark became a county attorney in San
Augustine. In 1932 he moved to Austin and served as assistant attorney
general of Texas.
In 1935 Clark became assistant to Governor James Allred. Soon after
he met Lyndon B. Johnson and the two men became close friends. The
governor appointed Clark secretary of state in 1937. The following year
Clark opened a private law practice with Everett Looney. He also worked
as a political lobbyist for the oil industry. One of his main clients
was Big Oil, a company owned by Clint Murchison. He was one of
the "guests" at the Del Charro Hotel, owned by Murchison, and was known
as the "arranger."
A few years after the assassination, Clark's law firm partner
couldn't resist bragging about Clark's involvement in the affair. He
told Barr McClellan, who worked at the firm, "I'm the only living man
who knows what happened in Box 13..." (Referring to Johnson's rigged
senate election) "But Clark took care of things in Dallas."
3. By early 1963 Havana Mobster Santo
Trafficante had given up his attempts to assassinate Castro and turned
his attention to JFK. Kennedy had angered two powerful underworld
constituencies—the anti-Castro Cuban exiles, who felt he had betrayed
them by withholding crucial air support during the Bay of Pigs invasion,
and the Mob, who were on the receiving end of a relentless judicial
assault engineered by the president's brother Attorney General Robert
Kennedy.
According to many subsequent histories of
the JFK assassination, Trafficante played a key role in the conspiracy
to kill the president, along with New Orleans mafioso Carlos Marcello.
In his memoir, attorney Frank Ragano contends that Trafficante virtually
confessed the mob's role in the Kennedy assassination. "We shouldn't
have killed Giovanni (John); we should have killed Bobby, " said
Trafficant to Tagano many years after the fact.
SAM GIANCANA: "The
politicians [LBJ and Clark] and the CIA made it real simple. We'd each
provide men for the hit ... I'd oversee the Outfit [Mafia] side of
things and throw in Jack Ruby and some extra backup and the CIA would
put their own guys in to take care of the rest."
The nuts-and-bolts
planning had involved some of the top people on the Dallas police force;
most conveniently the mayor, Earle Cabell, was the BROTHER of former CIA
deputy director Charles
Cabell. As the man responsible for citywide security, the mayor provided
the police protection for the presidential motorcade.
Giancana grinned:
"They made sure it was so loose down there [Dealey Plaza] on the day of
the hit, shit, a 4-year-old could've nailed Jack Kennedy!"
Nicholas Katzenbach-Bill Moyers memo: Nothing to see here —
On the day of JFK's funeral, Nov. 25, 1963, this document was sent from
Assistant Attorney General Katzenbach to Bill Moyers, press secretary to
the newly sworn-in President Johnson. It states, "The public must be
satisfied that Oswald was the assassin; that he did not have
confederates who are still at large; and that evidence was such that he
would have been convicted at trial."The Warren Commission was created
four days later.
RICHARD NIXON'S connections to organized crime and the JFK assassination
But Wait, There's More! CIA and mob links
continue...or the so called Watergate Scandal
According to the FBI’s Watergate investigation, John Mitchell, the
director of the Committee to Re-elect the President (CREEP), and his
aide Jeb Stuart Magruder discuss the proposal made by G. Gordon Liddy to
plant electronic surveillance devices on the phone of the chairman of
the Democratic Party, Lawrence O’Brien (see
March 20, 1971). Magruder telephones President Nixon’s chief of
staff, H. R. Haldeman, and Haldeman confirms that Nixon wants the
operation carried out.
According to Watergate burglar Eugenioby his old CIA code name
“Eduardo” (see
September 9, 1971), is ratcheting up the activities of the White
House “Plumbers” operation. Martinez is not yet aware of the nature of
the team’s operations, but believes he is part of a black-ops,
CIA-authorized organization working to foil Communist espionage
activities. Hunt gives team member Bernard Barker $89,000 in checks from
Mexican banks to cash for operational funds, and orders Barker to
recruit new team members. Barker brings in Frank Sturgis, Virgilio
Gonzalez, and Reinaldo Pico, all veterans of the CIA’s activities
against Cuba’s Fidel Castro. On May 22, the six—Hunt, Barker, Gonzalez,
Martinez, Pico, and Sturgis—meet for the first time at the Manger
Hays-Adams Hotel in Washington for Hunt’s first briefing. By this point,
Martinez will later recall, G. Gordon Liddy, who had been involved in
the burglary related to Pentagon Papers leaker Daniel Ellsberg, is
involved. Hunt calls Liddy “Daddy,” and, Martinez recalls, “the two men
seemed almost inseparable.” They meet another team member, James McCord,
who unbeknownst to Martinez is an official with Nixon’s presidential
campaign (see
June 19, 1972). McCord is introduced simply as “Jimmy,” an “old man
from the CIA who used to do electronic jobs for the CIA and the FBI.”
McCord is to be the electronics expert.
Plans to Break into McGovern HQ - Martinez says that the group is
joined by “a boy there who had infiltrated the McGovern headquarters,”
the headquarters of the campaign of Democratic presidential candidate
George McGovern. According to Hunt, they are going to find evidence
proving that the Democrats are accepting money from Castro and other
foreign governments. (Interestingly, Martinez will write that he still
believes McGovern accepted Cuban money.) Hunt soon aborts the mission;
Martinez believes “it was because the boy got scared.”
New Plans: Target the DNC - Instead, he and Liddy begin planning
to burglarize the headquarters of the Democratic National Committee (DNC)
in the Watergate hotel and office complex. They all move into the
Watergate to prepare for the break-in. Martinez will recall: “We brought
briefcases and things like that to look elegant. We registered as
members of the Ameritus Corporation of Miami, and then we met in
Eduardo’s room.” The briefing is “improvised,” Martinez will recall.
Hunt says that the Castro funds are coming to the DNC, not McGovern’s
headquarters, and they will find the evidence there. The plans are
rather impromptu and indefinite, but Martinez trusts Hunt and does not
question his expertise. [Harper's,
10/1974]
Entity Tags:
Frank Sturgis,
Democratic National Committee,
Central Intelligence Agency,
Bernard Barker,
’Plumbers’,
E. Howard Hunt,
Fidel Alejandro Castro Ruz,
George S. McGovern,
James McCord,
G. Gordon Liddy,
Virgilio Gonzalez,
Eugenio Martinez Category Tags:
'Plumbers',
Nixon Campaign 'Dirty Tricks',
Watergate Burglary
Maurice Stans, the financial chief for the Committee to Re-elect
the President (CREEP), launches a final fundraising swing across the
Southwest on behalf of Richard Nixon. Stans solicits contributions
from Republicans and Democrats alike, and tells reluctant
contributors that if they do not want their donations traced back to
them, their anonymity can be ensured by moving their contributions
through Mexican banks. Mexico does not allow the US to subpoena its
bank records.
Laundering - “It’s called ‘laundering,’” Miami investigator
Martin Dardis later tells Washington Post reporter Carl Bernstein on
August 26, 1972. “You set up a money chain that makes it impossible
to trace the source. The Mafia does it all the time. So does Nixon.…
This guy Stans set up the whole thing. It was Stans’s idea.… Stans
didn’t want any way they could trace where the money was coming
from.” The same money-laundering system allows CREEP to receive
illegal contributions from corporations, which are forbidden by law
to contribute to political campaigns. Business executives, labor
leaders, special-interest groups, even Las Vegas casinos can donate
through the system. Stans uses a bank in Mexico City, the Banco
Internacional; lawyer Manuel Ogarrio Daguerre handles the
transactions. Stans keeps the only records.
Nixon and Haldeman, three days after the June 23 meeting.
[Source: Washington Post]With the FBI tracing the
Watergate burglars’ $100 bills to GOP fundraiser Kenneth Dahlberg
(see
August 1-2, 1972), President Nixon orders the CIA
to attempt to stop the FBI from investigating the Watergate
conspiracy, using the justification of “national security.”
White House aide Charles Colson and Watergate burglar E. Howard Hunt
discuss Hunt’s demand for “hush money” (see
June 20-21, 1972 and
March 21, 1973) in a telephone call. Hunt says he called “because
the commitments that were made to all of us [Hunt and the other six
burglars, all of whom are facing trial] have not been kept.” He
continues: “There’s a great deal of concern on the part of the seven
defendants. There’s a great deal of financial expense here that is not
covered. What we’ve been getting has been coming in very minor drips and
drabs. We’re now reaching a point at which—” “Don’t tell me any more,”
Colson interjects. Hunt says, “[T]his thing should not break apart for
foolish reasons,” which Colson interprets as a veiled threat that Hunt
will begin talking to prosecutors about his involvement in the Watergate
conspiracy. Colson seems to get the message: “Christ no.… You’ve told me
all I need to know… the less I know really about what happened, the more
help I can be to you.” Hunt says: “We’ve set a deadline now for the
close of business on November 25 for the resolution, the liquidation of
everything that’s outstanding.… I’m talking about promises from July and
August. We could understand some hesitancy prior to the election (see
November 7, 1972), but there doesn’t seem to be any of that now. Of
course, we’re well aware of the upcoming problems of the Senate” (see
February 7, 1973). Colson replies, “That’s where it gets hairy as
hell.” Hunt continues: “We’re protecting the guys who were really
responsible. That’s a continuing requirement. But this is a two-way
street.… We think now is the time when some moves should be made, and
surely your cheapest commodity is money.” [Reston,
2007, pp. 186-190] Shortly thereafter, Hunt receives more
money from secret White House sources (see
January 8-9, 1973).
Feb 7th 1973
all the presidents men = Thugs
The US Senate votes 77-0 to create the Select Committee on Presidential
Activities, which comes to be known as the Senate Watergate Committee.
The chairman is Sam Ervin (D-NC), Ervin, already chosen to head the
committee, told fellow senator Edward Kennedy (D-MA), who held his own
ineffective senatorial investigation, that he knew little more about the
Watergate conspiracy than what he read in the papers, but “I know the
people around [President] Nixon, and that’s enough. They’re thugs.”
[Bernstein
and Woodward, 1974, pp. 247]
In the wee hours in a deserted garage on Oct. 8, 1972
Deep Thoat (Felt) comments to Woodward:
how politics had infiltrated every corner of government—a strong-arm
takeover of the agencies by the Nixon White House…. [Felt] had once
called it the ‘switchblade mentality’—and had referred to the
willingness of the president’s men to fight dirty and for keeps….
The Nixon White House worried him. ‘They are
underhanded and unknowable,’ he had
said numerous times. On June 19, 1972, two days after the botched
break-in, Felt assured Woodward that The Post could safely make a
connection between burglars and a former CIA agent linked to the White
House, E. Howard Hunt.
He says, “In 1969, the first targets of aggressive wiretapping were
the reporters and those in the administration who were suspected of
disloyalty. Then the emphasis was shifted to the radical political
opposition during the [Vietnam] antiwar protests. When it got near
election time [1972], it was only natural to tap the Democrats (see
Late June-July 1971 and
May 27-28, 1972). The arrests in the Watergate (see
2:30 a.m.June 17, 1972) sent everybody off the edge because the
break-in could uncover the whole program.” [Bernstein
and Woodward, 1974, pp. 271]
he is referring to the
The NSA, working with British intelligence, begins secretly
intercepting and reading millions of telegraph messages between US
citizens and international senders and recipients. The clandestine
program, called Operation Shamrock and part of a larger global
surveillance network collectively known as Echelon (see
April 4, 2001 and
Before September 11, 2001), begins shortly after the end of World
War II, and continues through 1975, when it is exposed by the “Church
Committee,” the Senate investigation of illegal activities by US
intelligence organizations (see
April, 1976). [Telepolis,
7/25/2000] The program actually predates the NSA, originating
with the Armed Forces Security Agency (AFSA) then continuing when that
turned into NSA (see
1952). [Pensito
Review, 5/13/2006] The program operates in tandem with
Project Minaret (see
1967-1975).
Together, the two programs spy on both foreign sources
and US citizens, especially those considered “unreliable,” such as civil
rights leaders and antiwar protesters, and opposition figures such as
politicians, diplomats, businessmen, trades union leaders,
non-government organizations like Amnesty International, and senior
officials of the Catholic Church. The NSA receives the cooperation of
such telecommunications firms as Western Union, RCA, and ITT. [Telepolis,
7/25/2000] (Those companies are never required to reveal the
extent of their involvement with Shamrock; on the recommendations of
Defense Secretary Donald Rumsfeld and presidential chief of staff Dick
Cheney, in 1975 President Ford extends executive privilege to those
companies, precluding them from testifying before Congress.) [Pensito
Review, 5/13/2006] In the 1960s, technological advances make
it possible for computers to search for keywords in monitored messages
instead of having human analysts read through all communications. In
fact, the first global wide-area network, or WAN, is not the Internet,
but the international network connecting signals intelligence stations
and processing centers for US and British intelligence organizations,
including the NSA, and making use of sophisticated satellite systems
such as Milstar and Skynet.
The Senate votes 55-24 to pass a resolution opposing any more
Watergate pardons (see
September 8, 1974) until defendants can be tried, rendered a
verdict, and exhaust their appeals process, if appropriate.
In 1977 the commentators were shocked when Nixon said about his
burglaries and wiretaps, ‘If the president does it, that means it’s not
illegal’ (see
April 6, 1977).… These brazen words… come eerily down to us through
the tunnel of the last thirty years.” -
Reston
on
Presidential Immunity
“In the area of criminal activity, Nixon argues, the president
is immune. He can eavesdrop; he can cover up; he can approve burglaries;
he can bend government agencies like the CIA and the FBI to his own
political purposes. He can do so in the name of ‘national security’ and
‘executive privilege.’ And when these acts are exposed, he can call them
‘mistakes’ or ‘stupid things’ or ‘pipsqueak’ matters. In the 21st
century, Nixon’s principle has been extended to authorizing torture,
setting up secret prisons around the world, and ignoring the requirement
for search warrants. A president can scrap the Geneva Convention and
misuse the Defense Department and lie about the intelligence analyses.
He is above the law. This is especially so when the nation is mired in
an unpopular war, when the country is divided, when mass protests are in
the streets of America, and an American president [Bush] is pilloried
around the world.
_______________
Savings and Loan scandal
Subject: more S&L links CIA money
laundering
Keywords: more of Pete Brewton's uncovering of CIA-MOB-S&L
connections
The following article appeared in the August edition of "The Monthly
Planet, a publication of the Nuclear Weapons Freeze of Santa Cruz
County, Box 8463, Santa Cruz, CA 95061, 408/429-8755. This is a very
useful and informative alternative media source offering an 11-
issue/year subscriptions for $15. ($10 for student/senior/low
income)
-------------------------------------------------------------------------
CIA Links to the Savings &
Loan Scandal
by Joseph A. Palermo
The federal government is now just beginning to sift through the
wreckage of what appears to be the largest crime in American
history. The Office of Thrift Supervision, which oversees the
nation's savings and loans, is barely able to record the collapse of
over 1,300 financial institutions, let alone do anything to arrest
it. Congress has done little to spotlight the full scope of the
savings and loan fraud, even though it has estimated the cost to
taxpayers will be $500 billion over the next 40 years.
In other words, it will cost every American man, woman, and child at
least $2,000 to pay for what "Time" magazine called "a decade-long
orgy" of wild spending and speculation resulting in the
establishment of government guarantees that "privatized profits and
socialized losses." The Justice Department estimates that massive
fraud caused the failure of 450 savings and loans seized so far by
the federal government. It also estimates that it will take over
five years to prosecute the 100 institutions on its priority list.
Most of the money lost in S&L failures has yet to be traced to its
ultimate destination.
Worthless loans, kickbacks, false appraisals, and insider fraud
have accounted for much of the misspent funds. Federal and
congressional investigators who have the subpoena power to trace the
money have shown little interest in doing so. Federal regulatory
agencies have suffered enormous cutbacks in recent years as part of
the Reagan-Bush legacy of deregulation, and are hopelessly
understaffed and underfunded to take on a financial crisis of this
magnitude. Most of the billions of dollars "lost" have been so
expertly laundered or tied to assets through shell companies and
off- shore banks that the Justice Department predicts that hundreds
of cases will go unprosecuted. Criminal activity was the primary
cause in the collapse of two of every five S&Ls that failed. A
significant number of insolvent thrifts which could cost taxpayers
as much as $75 billion have been linked to the activities of
organized crime figures and CIA operatives. In a series of
articles published in the "Houston Post" earlier this year,
investigative reporter Pete Brewton unearthed numerous ties with the
CIA, the Mafia, or both in the failure of at least 25 savings and
loans, including 16 in Texas. Some of the players have also been
involved in gun-running, drug- smuggling, money laundering, and
covert aid to the Nicaraguan Contras. Fraud was the key factor
in the failure of each of these S&Ls. Richard Brenneke, a CIA
contract agent for eighteen years and a Portland, Oregon arms
dealer, testified during a federal court trial in Denver in 1988
that the CIA effort to raise money for covert operations involves a
number of schemes to siphon funds from financial institutions "at
the expense of an insurance company," meaning the federal deposit
insurance program. After the trial, Brenneke told the "Houston Post"
that banking and S&L officials involved in such schemes were
required to sign "secrecy agreements" with the CIA. Evidence
obtained from court documents, sworn testimony, law enforcement
records and interviews with government investigators and prosecutors
suggests that the CIA may have used part of the proceeds from S&L
fraud to help pay for covert operations and other activities that
Congress was unwilling to support. Brewton following an 18-month
investigation, also found evidence that the CIA may have intervened
in criminal investigations involving agency operatives accused of
S&L fraud. Lloyd Monroe, a former prosecutor with the Justice
Department's organized crime strike force, said federal agencies
responsible for investigating S&L fraud are "being precluded from
investigating wrongdoing that is possibly being conducted in the
name of national security." The former prosecutor said he was told
by FBI agents to drop an investigation of one individual connected
to bank failure because that individual had "CIA connections" and
therefore held a "get-out-of-jail-free card." A former FBI agent has
corroborated the prosecutor's statements. Brewton's articles in the
"Houston Post" eventually caught the attention of Rep. Frank
Annunzio (D-IL) who chairs the financial institutions subcommittee
of the House Banking, Finance and Urban Affairs Committee. The
subcommittee has jurisdiction over all legislation affecting banks,
thrifts, credit unions and the federal agencies that regulate them.
Annunzio has asked CIA Director William Webster to appear before the
panel in a closed-door session to address the evidence of CIA
involvement in S&L fraud. But CIA Director Webster has refused to
testify before Annunzio's subcommittee and the CIA has only provided
vague denials of its involvement through its public relations
office. In response to the allegations, CIA spokesperson Mark
Mansfield said that S&L fraud "would be a violation of U.S. laws,
and we do not violate U.S. laws." CIA Public Affairs Director James
Greenleaf sent a letter to the "Houston Post" in response to
Brewton's article of February 4, 1990, which first made the
connection between the CIA and some failed thrifts, stating that
"for the record, such a claim is not true; the CIA would not
participate in fraudulent activities." Because CIA Director Webster
refused to testify and because Rep. Annunzio's subcommittee staff is
limited, Annunzio has asked Rep. Anthony Beilenson (who chairs the
House Permanent Select Committee on Intelligence, which has
jurisdiction over the CIA) to undertake a complete investigation of
the various allegations involving the CIA and failed financial
institutions. Annunzio wrote to Beilenson: "In the face of the
billions of dollars that are being paid to protect depositors, we
cannot allow any suggestion that the Central Intelligence Agency was
behind the failure of any financial institution not to be
investigated." Annunzio also wrote referring to the derailed
criminal investigations, "I do not think a well-respected former
justice Department prosecutor and a former FBI agent would make up
something so serious as the CIA charges." The CIA has promised to
"fully cooperate" with any investigation by the intelligence
committee. If the intelligence committee decides to pursue a serious
investigation, a number of connections between individual CIA
operatives, organized crime figures, and failed financial
institutions will have to be explored. For example, Robert L.
Corson, a Houston developer connected with the fraud-related
failures of several S&Ls, has been identified by a former CIA
operative as a "mule," meaning that he carried large sums of
unaccountable cash from country to country for the agency. The CIA
would neither confirm nor deny whether Corson had a relationship
with the agency, a common agency practice. Lawrence Freeman, a
lawyer who helped engineer a fraudulent Florida land transaction
that caused the collapse of two savings and loans, allegedly has
ties to both the CIA and organized crime. Freeman, a twice-convicted
money launderer, has ties to the CIA dating back to the early 1960s
when he worked with the late Paul Helliwell. Helliwell was a top
officer in southeast Asia in World War II with the Office of
Strategic Services, the wartime predecessor of the CIA, and was a
close associate of the late William Casey, Reagan's CIA director.
Helliwell was a founding member of the CIA and participated in many
covert operations including efforts to overthrow Cuban leader Fidel
Castro. Freeman and Helliwell were senior partners in Castle Bank
and Trust in the Bahamas during the early 1970s when it was used by
the CIA and organized crime to launder money. Freeman pleaded
guilty to laundering money for a convicted drug smuggler and was
sentenced to three years in prison. He is now out on parole but is
barred from practicing law. Freeman and Helliwell's Castle Bank and
Trust folded in 1977, following Helliwell's death. According to
journalist Jonathan Kwitny, the author of "The Crimes of Patriots,"
it was then that the CIA and the Mafia turned over their money
laundering operations to the infamous Nugan Hand Bank in Australia
and to companies in the English Channel tax haven of the Isle of
Jersey. Freeman allegedly wired millions of dollars to shell
companies on the island as part of the land transaction that played
a role in the failure of two thrifts. Some of the money from this
deal may have been diverted for use in CIA-sponsored covert
operations. Officers of these companies were also reportedly used by
Freeman to launder drug smuggling proceeds.
But Freeman's biggest money
laundering client, according to Florida Department of Law
Enforcement records, was an organized crime figure called "the
Cobra" by Freeman and his associates. Law enforcement sources in
Florida and Texas have identified "the Cobra" as Mafia boss
Santo Trafficante.
Trafficante's
involvement in the CIA's attempt to assassinate Fidel Castro in the
early 1960s is well documented.
During this period, he was also involved with Helliwell in
CIA-sponsored anti-Castro activities. A close associate of
Trafficante who also participated in CIA anti- Castro plots was New
Orleans Mafia boss Carlos Marcello. Marcello has extensive business
ties with fellow Louisiana organized crime figure Herman Beebe.
Beebe pleaded guilty to fraud in connection with a loan at State
Savings in Dallas and has twice been successfully prosecuted. He was
involved in a scheme in the early 1970s to smuggle guns and
explosives to anti-Castro Cubans operating in Mexico. Beebe also had
business dealings with Edward "Fast Eddie" Susalla, whose son Scott
pleaded guilty to possession of cocaine in 1985 in one of the
largest drug busts in southern California history. It was Herman
Beebe who provided the seed capital for the creation of Palmer
National Bank in Washington, D.C., which was controlled by two
officials of the George Bush 1980 presidential campaign, Stefan
Halper and Harvey McLean. Halper was policy director for Bush's 1980
campaign, while McLean was southern finance chairman and a Bush
fundraiser. McLean became a major player in a number of failed
savings and loans in Texas where fraud was a factor and has been
placed in involuntary bankruptcy. McLean owned Paris Savings and
Loan in Paris, Texas, which failed in 1988 and was merged with 11
other insolvent Texas S&Ls at a total cost to the federal government
of $1.3 billion. The "New York Times" and the "Washington Post"
reported that Palmer National Bank actively arranged loans for
wealthy, right-wing Republicans and their pet projects. Halper
and McLean first met while they were working on the Bush 1988
presidential campaign. Palmer National loaned money to individuals
and organizations that were involved in covert aid to the
Nicaraguan Contras. In February 1985 the National Endowment for
the Preservation of Liberty (NEPL), a conservative foundation run by
Iran-Contra figure Carl "Spitz" Channell, secured $650,000 from
Palmer National to illegally purchase weapons for the Nicaraguan
Contras. Channell was one of the few private citizens convicted of
crimes in the Iran-Contra scandal. He was the first to plead guilty
to illegal activities in the scandal, and was placed on two years'
probation for illegally using NEPL to help Oliver North raise
donations for military supplies for the Contras. Channell recently
died of pneumonia while recovering from a car accident. The money
went through NEPL's account at Palmer National to a Swiss bank
account used by North for Contra funding and the secret arms deals
with Iran. NEPL raised about $10 million for the Contras after
Congress had banned such military aid. While Stefan Halper was
helping NEPL secure loans at Palmer National to buy guns for the
Contras, his father-in-law Ray Cline, a former deputy director of
intelligence in the CIA, was an adviser to a firm associated with
retired Major General John Singlaub, one of the principal leaders of
private efforts to supply the Contras. In addition, the National
Conservative Political Action Committee (NCPAC) borrowed more than
$400,000 from Palmer National, as did political action committees
for Senator Bob Dole (R-KS.) and then-Rep. Jack Kemp (R-NY). Palmer
National co-founder Halper also helped set up Oliver North's legal
defense fund. Halper's name appears in North's final entry in his
White House notebook the day he was fired by the president on
November 25, 1986, under the heading "Legal Defense Fund." "Ollie is
a friend of mine and at the time I thought we might be able to help
him," Halper later recalled. Finally, Palmer National, although
still solvent, held a $250,000 note on a California beach house that
was used by organized crime associates and figured in the criminal
convictions of two savings and loan figures. Halper's
connections to the intelligence community were primarily through his
former father-in-law Cline, a career CIA officer. Cline became a top
foreign policy and defense adviser to George Bush during the 1980
campaign. According to an article which appeared in the "Village
Voice" in 1988, when Bush was seeking the Republican presidential
nomination, Cline boasted during the 1980 primaries that he intended
to "organize something like one of my old CIA staffs" to help Bush
win. The "New York Times" reported that Bush, who was CIA director
from January 1976 to January 1977, received offers of campaign
assistance from many former CIA officials. The "Village Voice"
reported that even active CIA agents may have worked for the Bush
campaign. Some key operatives who were linked to the CIA and played
significant roles in failed thrifts in Texas also worked for George
Bush's Presidential campaign. For example, Halper, in addition to
being a co-founder of Palmer National Bank and policy director for
the Bush campaign, was allegedly part of the Reagan-Bush election
team that participated in the October 1980 Paris negotiations with
representatives of Iran that has come to be known as the "October
Surprise." Halper worked with long-time CIA official Robert Gambino
in an intelligence operation guided by Reagan-Bush campaign director
William Casey (who went on to become CIA director). According to
former CIA agent Richard Brenneke and several independent
researchers, there was a secret effort by the Reagan-Bush
campaign to make contacts with Iranian government officials to offer
arms and other concessions if Iran agreed to hold the American
hostages until after Jimmy Carter's defeat in the November 1980
election, thus avoiding an "October Surprise" release of the
hostages. William Casey, Richard Allen (who became Reagan's first
National Security Adviser), George Bush, and Stefan Halper were all
allegedly involved in the plan, which involved super-secret meetings
in Paris in October 1980. Halper also emerged as a key figure in the
so-called "Debategate" scandal. A House subcommittee concluded
that James Baker, who was in charge of the Reagan debate group,
obtained then-President Jimmy Carter's briefing materials for the
upcoming debates with Ronald Reagan from William Casey, who was then
the Reagan-Bush campaign director. Someone within the Carter
White House pilfered Carter's debate briefing notes and passed them
on to the Reagan-Bush team. Halper allegedly played a role in both
the "October Surprise" and "Debategate," and was rewarded after the
election with the appointment of Deputy Director of
Politico-Military Affairs for the State Department. William Casey
went on to become CIA director, James Baker became Reagan's chief of
staff, then Treasury Secretary, and then Bush's Secretary of State.
Baker was instrumental in first bringing Halper into the Reagan-Bush
campaign. Meanwhile, charges of conflict of interest against Neil
Bush, the President's son, will be taken up at a September hearing
by federal regulators. The younger Bush served on the board of
directors of Silverado Banking, Savings and Loan Association of
Denver, Colorado, which collapsed in December 1988 at an estimated
cost to taxpayers of $1.3 billion. The charges accuse Bush of
voting to loan over $100 million to business associates who
subsequently defaulted, and failing to properly disclose the extent
of his business dealings with the borrowers. Federal regulators may
file a $200 million lawsuit against Neil Bush and other Silverado
directors and officers. The Office of Thrift Supervision released
documents stating that the 34-year-old Bush was "unqualified and
untrained" to be a director of Silverado. "He had no experience
managing a large corporation, especially a financial institution
with almost $2 billion in assets," the OTS documents said. With
the president's son involved in the failure of one of the larger
S&Ls, the crisis has received more attention in Washington and in
the media. So far both Democrats and Republicans have pointed
the finger at each other. Democratic National Committee Chair Ron
Brown said that Republicans cannot escape the fact that "George
Bush, Ronald Reagan and their high-roller friends ran the
government, designed the S&L policy and handpicked the people that
gutted the oversight agencies. They are now being forced to take
responsibility for the greatest rip-off in American history." It
will be difficult for the Republicans to skirt this issue in the
upcoming mid-term elections and therefore the savings and loan
crisis may have immediate political effects. Time will tell whether
or not the American taxpayer will be able to bear the burden of yet
another expensive scandal. Joseph A. Palermo teaches United States
History at Hartnell Community College in Salinas, and Gavilan
Community College in Gilroy. -- daveus rattus yer friendly
neighborhood ratman KOYAANISQATSI ko.yan.nis.qatsi (from the Hopi
Language) n. 1. crazy life. 2. life in turmoil. 3. life out of
balance. 4. life disintegrating. 5. a state of life that calls for
another way of living.
---------------------------------------------------------------------------
One White House, many gates By Joel
Bleifuss
The "Houston Post"'s Pete Brewton
continues to report on CIA and organized crime involvement in the
failure of 25 federally insured financial institutions, the bailout
of which will cost the taxpayers an estimated $75 billion. Though
this time the money trail leads straight to the White House door,
the papers of record--the "New York Times," "Washington Post" and
"Los Angeles Times," upon which we must unfortunately depend to set
the national agenda--continue to ignore the "Houston Post" series.
Brewton's latest installment details the story of a solvent
institution, the Palmer National Bank of Washington, D.C. Founded in
1983 by two men active in George Bush's failed 1980 presidential
campaign, Palmer was the bank of choice for right-wing organizations
and Republican officials. The National Conservative Political Action
Committee borrowed more than $400,000 from Palmer. It also lent
money to PACs headed by Republicans Sen. Bob Dole of Kansas and
former Rep. Jack Kemp of New York. And Palmer was one of the
financial institutions where convicted Irangate felon Oliver North's
contra-aid network stashed its cash. Palmer has assets of less than
$100 million, a surprisingly meager amount for a bank that occupies
a modern 11-story building three blocks from the White House.
IRANGATE: Brewton reports that in February 1985, the contra-support
organization National Endowment for the Preservation of Liberty (NEPL)
opened its first of four accounts at Palmer. In April 1986, NEPL
transferred $650,000 from one of those accounts to a Swiss bank
account that North used to deal arms to Iran and thus fund the
contras. NEPL was founded by the late Carl "Spitz" Channell, who
died this year of pneumonia. This crack fundraiser brought in about
$10 million for the ClA's anti-Sandinista army, including $5 million
that Channell charmed out of two right-wing dowagers whom he
code-named "Dog Face" and "Ham Hocks." As a token of NEPL's
appreciation, large donors were able to meet privately with
then-President Reagan. After the Iran-contra scandal broke, it was
discovered that not all the NEPL money had reached the contras--some
of it had been siphoned off for Channell's and his boyfriend's
personal use. But Channell was not sentenced to two years' probation
for this diversion of funds. (Contra dollars were used to purchase
silk underwear and a condo, among other things.) He was convicted
for helping the Reagan-Bush White House arm the contras at a time
when Congress had outlawed such military support. A HALPER HAND:
Brewton reports that a former high-level Palmer employee told him
that Channell established his NEPL accounts at Palmer with the help
of Stefan Halper, one of the bank's two founders and a friend of
North's. Halper was policy director of Bush's 1980 presidential
campaign. Halper was connected to the intelligence community through
his father-in-law, Ray Cline, a former CIA deputy director who also
advised Bush during his 1980 campaign. The "Village Voice" reported
in 1988, "Any inquiry into the 1980 Bush campaign would have to
begin with Dr. Ray S. Cline. ... Cline boasted during the primaries
that he intended to 'organize something like one of my old CIA
staffs' to help Bush win." DEBATEGATE: Well, Bush didn't win, but
the Reagan-Bush ticket did. When Reagan named Bush as his running
mate, Halper was brought on the 1980 Reagan-Bush campaign by another
former Bush campaign official, James Baker, current secretary of
state. According to a 1983 story in the "New York Times," Halper's
role on the campaign was to gather intelligence on then-President
Jimmy Carter's foreign-policy objectives. The "Times" reported that
Halper was assisted by retired CIA officers and quoted an unnamed
source in the 1980 Reagan-Bush campaign as saying, "There was some
CIA stuff coming from Halper, and some agency guys were hired."
Halper was particularly interested in Carter's attempts to gain the
release of the 52 American hostages held in Iran prior to the
November election. (Hostagegate: It has been alleged that the 1980
Reagan-Bush campaign cut a secret arms-for-hostages deal with the
government of Iran to keep the hostages held in Iran until after the
election to prevent Carter from benefiting from their pre-election
release. See "In Short," June 24, 1987, Oct. 12, 1988, and "The
First Stone," May 9 and 16). Halper's intelligence-gathering work
during the 1980 Reagan-Bush campaign apparently involved the theft
of the Carter campaign's debate briefing books, a scandal that came
to be known as Debategate. The Reagan-Bush campaign used these books
to prepare its candidate for the 1980 presidential debates. The man
in charge of the Reagan debate team was Baker, whose name has come
up as a likely Republican candidate for president in 1996. A BANK IS
BORN: After the 1980 election, the Reagan administration appointed
Halper deputy director of the State Department's Bureau of
Politico-Military Affairs, the division of the State Department
responsible for international weapons-trading and military exercises
oversees. Brewton reports that Halper left the State Department in
1983 to become chairman of Palmer National Bank. Halper founded
Palmer with Harvey McLean Jr., a man he had met during the 1980 Bush
campaign. The "New York Times" has described McLean as "a Dallas
real-estate developer who was Southern finance chairman for George
Bush's campaign for the Republican presidential nomination in 1980."
Halper and McLean came up with their idea for Palmer National Bank
during a State Department business trip to Southeast Asia on which
McLean accompanied Halper. Halper told Brewton the following story:
"Somewhere over the Pacific, we got into a conversation about
banking. Now, mind you, I had never been a banker. I was one of
those guys who had a checking account with $71.38 in it, and banks
frightened me a little bit. But Harvey said, 'Well, got to have a
good bank in Washington.' He was sort of bemoaning the fact that
banks were not as strong or responsive as they should be. And as the
conversation unfolded, he basically said, 'Look, if you'll create
the bank I'll put up the money.'" McLean certainly had access to
money at that time. Brewton reports that McLean owned Paris Savings
and Loan of Paris, Texas. During the '80s McLean also borrowed more
than $38 million from three other S&Ls--Vernon Savings and
Independent American Savings in Dallas and Continental Savings in
Houston. All four later failed, and the latter three are included on
Brewton's list of failed S&Ls that had links to the mob and the CIA.
In 1989 federal receivers placed McLean in involuntary bankruptcy.
S&LGATE: Brewton reports that when Palmer National Bank was founded,
it was not McLean who put up the money but Herman K. Beebe Sr., a
shadowy Louisiana organized-crime figure who was a close friend and
business associate of McLean. Brewton reports that Beebe has
numerous connections to New Orleans Mafia boss Carlos Marcello,
associations with Mafia families in New York and California and
links to the Teamsters. In 1983 Beebe loaned McLean and Halper
$2.8 million from his Bossier Bank and Trust in Shreveport, La. This
loan provided the majority of the money that was used to initially
capitalize Palmer. A 1985 report by the comptroller of the
currency listed Palmer as one of 12 national banks that Beebe has
possible influence or control over. Further, Beebe has been
implicated in the failure of at least 12 savings and loans
(including Vernon Savings in Dallas and Continental Savings in
Houston). In April 1985, just after Beebe had been convicted of
defrauding the Small Business Administration and two months before
the Federal Deposit Insurance Corporation shut down Bossier, the
$2.8 million loan from Bossier that established Palmer was
transferred to San Jacinto Savings of Beaumont, Texas. GOING, GOING
...: San Jacinto, a subsidiary of the Dallas-based real- estate
investment firm Southmark Funding, is now on the verge of collapse.
When San Jacinto topples, federal regulators say its bailout could
cost taxpayers more than the estimated $2 billion that was paid to
bail out Charles Keating's Lincoln Savings of Irvine, Calif., which
currently holds the honor of being the most expensive S&L failure.
Brewton reports that in September 1988 an S&L regulator in Dallas
wrote to Darrel Dochow, a federal bank regulator, expressing
concerns about the "significant number and volume" of loans between
Silverado Savings of Denver (Neil Bush's failed S&L) and M.D.C.
Holdings of Denver (owned by Colorado GOP fundraiser Larry Miezel)
and between San Jacinto Savings of Houston and Lincoln Savings of
Irvine, Calif. The regulator also said he was concerned about "the
apparent shifting of such loans among those institutions." ANOTHER
HALPER HAND: Brewton reports that Halper left his position as
chairman of Palmer early in 1985 to become chairman of National Bank
of Northern Virginia. Halper, however, did not sever his ties with
his friend Oliver North. In the last entry of North's diary--dated
Nov. 25, 1986, the day that the lieutenant colonel was fired by the
president he had served so faithfully--North wrote "Legal Defense
Fund--Stefan Halper, Chris Lehman [a Halper associate]." As Halper
told Brewton, "We got trustees and put it in place."
=============================================================================
Perelman first entered what became known as the
Savings & Loan crisis in 1988 when along with
Gerald J. Ford he bought five insolvent
thrifts with $12.2 billion in assets and $5.1 billion in federal aid for
$315 million.[13]
The five banks originally operated as a single entity named First Texas Bank,
but the name changed to First Gibraltar after about a week.[14]
Perelman's turn-around manifested as trimming the payroll, selling branches, and
dumping of $2.5 billion of underperforming assets. In 1990, Perelman added San
Antonio Savings Association and Sooner Federal to First Gibraltar for $10.1
million and $5.1 million, respectively. The purchase of San Antonio added $1.1
billion of healthy assets, $1.2 billion unhealthy assets, and a $1.3 billion
government cash advance to Perelman's larder while Sooner only provided $1.2
billion in assets along with the typical government guarantees.[15][16]
Sooner Federal was not only the last S&L Perelman bought, but the first he sold;
In August 1992, he sold the pieces of Sooner to Bank of Oklahoma and
Fourth Financial Corporation for $31.4 million.[15]
The following month he sold the rest of First Gibraltar to
BankAmerica for $110 million, retaining four branches in
Plano,
Texas and $1.2 billion of assets in the mortgage and property management
sectors.[17]
He renamed the four branches First Madison.[18]
It's unclear how much money Perelman made from his savings & loan deals, but
it's estimated that he made anywhere from $600 million to $1.2 billion with most
of the profits manifesting as tax breaks elsewhere in his empire.[19]
In essence, by owning First Gibraltar he was able to avoid paying hundreds of
millions in federal taxes.[20]
The following article, summarizing Pete Brewton's, ("Houston Post's"
investigative reporter) continuing examination of CIA and organized
crime involvement in the failure of various S&Ls, appeared in "IN
THESE TIMES", July 18-31
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