Of Further Interest

Chapter 1

Bush Stock Fraud and his link to BCCI

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BCCI: THE ARABS AND BUSH'S DRUG BANK?

BCCI FUNNELED MONEY TO BUSH'S COMPANY HARKEN. BCCI LAUNDERED PANAMANIAN & COLUMBIAN DRUG MONEY, ARMS SALES TO PAKISTAN, ACTED AS A BANKER TO THE ABU NIDAL TERRORIST ORGANIZATION, 'MANAGED PROSTITUTION,' & FUNNELED MONEY TO THE (DRUG RUNNING CONTRA DEATH SQUADS. <--(GHWB'S PET PROJECT!))

EXCERPTS from: "The BCCI Affair - BCCI's Criminality"

from (Federation of American Scientists)

Source:  BCCI's Criminality

A SHOCKING DISCOVERY

(BCCI: management of prostitution) [Notable Excerpt]

"According to one U.S. investigator with substantial knowledge of BCCI's activities, some BCCI officials have acknowledged that some of the females provided some members of the Al-Nahyan family were young girls who had not yet reached puberty, and in certain cases, were physically injured by the experience. The official said that former BCCI officials had told him that BCCI also provided males to homosexual VIPs.(74) "

74. Staff interviews, U.S. investigator, February, 1992. "

Summary Excerpts from BCCI's Criminality

"BCCI's founder, Agha Hasan Abedi and his assistant, Swaleh Naqvi" (Pakistani Bank)

"made up of multiplying layers of entities, related to one another through an impenetrable series of holding companies, affiliates, subsidiaries, banks-within-banks, insider dealings and nominee relationships. By fracturing corporate structure, record keeping, regulatory review, and audits, the complex BCCI family of entities created by Abedi was able to evade ordinary legal restrictions on the movement of capital and goods as a matter of daily practice and routine. In creating BCCI as a vehicle fundamentally free of government control, Abedi developed in BCCI an ideal mechanism for facilitating illicit activity by others, including such activity by officials of many of the governments whose laws BCCI was breaking. "

"Though fragmentary, these records are also voluminous, amounting to at least 9,000 boxes in New York and Miami alone, and several million pages. Foreign BCCI document repositories of BCCI, especially in the United Kingdom, the Grand Caymans, and "Abu Dhabi," are even larger, with access for U.S. investigators limited by foreign bank confidentiality, privacy laws, and the willingness of the foreign jurisdictions to cooperate. "

"largest case of organized crime in history, spanning over some 72 nations, " "involving billions of dollars; money laundering in Europe, Africa, Asia, and the America"

"BCCI's bribery of officials in most of those locations; its support of terrorism, arms trafficking, and the sale of nuclear technologies; ITS MANAGEMENT OF PROSTITUTION; its commission and facilitation of income tax evasion, smuggling, and illegal immigration; its illicit purchases of banks and real estate"

"shell corporations, bank confidentiality and secrecy havens, layering of corporate structure, front-men and nominees"

""kick-backs and bribes, intimidation of witnesses, and retention of well-placed insiders to discourage governmental action.

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"Senate investigator Jack Blum... it had 3,000 criminal customers."

"On December 18, 1991, in an agreement with the Justice Department and New York District Attorney, BCCI's liquidators pled guilty to having engaged in a criminal conspiracy through financial fraud, and thereby constituting a Racketeering Influenced and Corrupt Organization (RICO), whose entire assets, legitimate and illegitimate, were subject to confiscation by the government. " "Specific crimes admitted to by BCCI's liquidators in the agreement included:

** Seeking deposits of drug proceeds and laundering drug money" AMONG OTHER CRIMES.. see: Superseding Information, U.S. v. BCCI, Crim. No. 91-0655, U.S. District Court for the District of Colombia, December 19, 1991.

"its chief executive officer in the Americas, knowledge of money laundering, drug trafficking, loans created in "bogus" names, and advances of funds to non-existent companies in London, Luxembourg, Cyprus, Malta, the Channel Islands, "

"BCCI's financial empire was built on the fiction that it was heavily capitalized by oil-rich Arab leaders, when the reality was that most of them -- and according to some credible information, all of them -- were acting as nominees, providing either their names to BCCI, or their names plus their funds in the form of deposits to BCCI to get a guaranteed no-risk return, rather than as actual investors at risk. "

"Not having the actual capital base, BCCI simply pretended it was there, and enlisted the reputations of its shareholders to assist it in so pretending, in order to lure others to deposit their funds with BCCI."

"Manhattan prosecutor Robert Morgenthau[Hans Morgenthau's cousin?]..BCCI's liquidators plead guilty as part of the December, 1991 plea agreement, "

"[BCCI's] scheme was premised on the fact that banks rely on credit. The essence of the scheme was to convince depositors and other banking and financial institutions, by means of false pretenses, representations, and promises that the BCC Group was a safe financial repository and institution for funds, and thereby defendants acted to persuade depositors and banking and other financial institutions to provide the BCC Group banks with deposits and credit" (People v. BCCI, Supreme Court of the State of New York, County of New York, July 29, 1991. )

"Employing the ruling families of a number of Middle Eastern states as nominees for BCCI, who pretended to be at risk in BCCI but who were in fact guaranteed to be held harmless by BCCI for any actual losses. "

"Using bank secrecy havens including Luxembourg and the Cayman Islands to avoid regulation on a consolidated basis by any single regulator of BCCI, and thereby to permit BCCI to transfer assets and liabilities from bank to bank as needed to conceal BCCI's true economic status. " People v. BCCI, Supreme Court of the State of New York, County of New York, July 29, 1991.

"BCCI's own auditors, PRICE WATERHOUSE" (now TD Waterhouse) June 22, 1991, the "Sandstorm Report," (provided to the Bank of England) was the final evidence that lead to the shutdown of BCCI globally on July 5, 1991 (Price Waterhouse, Draft Report on Sandstorm SA Under S. 41 of the Savings Act of 1987. )

"$600 million of BCCI deposits not recorded in BCCI's books"

"Other major losses related to BCCI accounts in related entities, including ICIC in the Grand Caymans, sometimes know as BCCI's "bank-within-a-bank," the Bank de Commerce et Placements, a BCCI subsidiary in Switzerland, the Kuwaiti Investment Finance Company (KIFCO), a secret BCCI subsidiary ostensibly owned by a BCCI nominee. "

"The Sandstorm report -- prepared by Price Waterhouse for the benefit of BCCI's final group of managers, brought in for the purpose of finding a way to help BCCI survive as a wholly-owned subsidiary of "ABU DHABI" -- describes BCCI's fraud, rather kindly, as originating in BCCI's sense of vulnerability in case of any losses because of its lack of any lender of last resort and the hostile attitude of the international banking community"

Price Waterhouse, Draft Report on Sandstorm SA Under S. 41 of the Savings Act of 1987.

"BCCI's losses grew, so did its manipulation of accounts and its frauds, as well as its use of affiliated and related entities such as ICIC in the Grand Caymans, the Banque de Commerce et Placements in Geneva, the National Bank of Oman, and the Kuwaiti Investment Finance Corporation (KIFCO). " (Offshore Banks?)

Massihur Rahman, who was BCCI's chief financial officer (FOLLOWING QUOTES ARE NOT FROM HIM)

"In its 1991 review, Price Waterhouse found that among the specific techniques used by BCCI to hide its losses were:

** misappropriation of deposits without depositors knowledge to provide funds to adjust non-performing and bogus loan accounts, and Treasury losses.

** misappropriation of external funds deposited under trust with Sandstorm [BCCI] and Fork [ICIC] to be managed on behalf of a few prominent people who are also shareholders of [BCCI] Holdings.

** the creation of loans with no commercial substance in the names of people without their knowledge.

** selling certificates of deposit placed with the Central Treasury without informing the depositors, and using the proceeds to fund adjustments.

** routing funds through [ICIC], LOANS, KIFCO, SDCC and other affiliates and third parties to make adjustments prior to accounting reference dates and audit confirmation dates, which were often reversed at a later date.(29) "

Staff interviews, Akbar Bilgrami, July 13-14, 1992; Amjad Awan, July 20-21, 1992.

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"As BCCI liquidators in the Grand Caymans found, ICIC was not really a bank at all, but a post-office box location to "book" transactions that were initiated, organized, and approved in other parts of BCCI. In essence, ICIC was a "conduit" or mechanism for BCCI's fraud" (also used holding companies, "Big Brother and the Holding Company")

Report of Grand Caymans Liquidators to Grand Caymans Court, August 30, 1991, Deloitte Ross Tohmatsu, International Credit and I nvestment Company (Overseas) Ltd.

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"ICIC lending included millions to major front-men for BCCI including Ghaith and Wabel Pharoan, Faisal al Fulaij, Prince Turki, and Mohammed Hammoud."

"Clark Clifford and Robert Altman in First American in 1988 with funds lent him by BCCI" ????? (S&L) Price Waterhouse, Report to the Director on ICIC Group, June 17, 1991, Sec. 1.

Money Laundering

"From the time of BCCI's indictment on drug money laundering charges in Tampa, Florida in October, 1988, there was little doubt to anyone looking at the facts that BCCI had been used to launder drug money. "