NuganHandBank_CIA_Drugs



Do you remember the Nugan Hand Bank?

The Nugan Hand Bank
Michael Hand
Frank Nugan
Admiral Earl P. Yates
USA President George Bush
The Central Intelligence Agency (CIA)
Brigadier General Erle Cocke, former head of Nugan Hand’s Washington branch
 The Nugan Hans Bank's co-founder, former U.S Green Beret Michael Jon "Mike" Hand
The Merchants of Venice
The Secret Team - The Australian Drug Connection
The Crimes of Patriots-
A True Tale of Dope Dirty Laundering and the CIA

 by Jonathan Kwitny
In December 2011, Michael Hand’s military colleague and Nugan Hand ‘fixer’, Douglas Sapper, confirmed that Nugan Hand Bank had been a conduit for CIA money


Stash Prada


Published on May 27, 2016

Nugan Hand Bank was an Australian merchant bank that collapsed in 1980 after the suicide of one of its founders, Australian lawyer Francis John "Frank" Nugan, resulting in a major scandal. News stories suggested that the bank had been involved in illegal activities, including drug smuggling, arranging weapons deals, and providing a front for the United States Central Intelligence Agency. Speculation grew when it became known that the bank had employed a number of retired United States military and intelligence officers, including former CIA director William Colby.
Investors' losses and the speculation surrounding the bank's activities led to three major government investigations over the next five years. The bank's co-founder, former U.S Green Beret Michael Jon "Mike" Hand, and two other bank employees were indicted for conspiring to "pervert the course of justice" by destroying or removing bank records. Hand fled abroad in June 1980. In 1985 a royal commission of inquiry found that while the bank had committed numerous violations of banking laws, the allegations of drug-smuggling, arms dealing, and involvement in CIA activities were not substantiated.[1][2] In 2000, Brigadier General Erle Cocke, former head of Nugan Hand’s Washington branch, gave a court deposition admitting that he carried out long-term, clandestine banking activities for numerous agencies including the CIA and FBI.[3] In December 2011, Michael Hand’s military colleague and Nugan Hand ‘fixer’, Douglas Sapper, confirmed that Nugan Hand Bank had been a conduit for CIA money
In June 1973, Frank Nugan and Mike Hand met up with prominent Australian businessman and racehorse owner John Needham to discuss setting up a company that could act as a merchant bank. On 6 July 1973, the trio incorporated Nugan Hand Needham and took expensive offices at 55 Macquarie Street, in the heart of the Sydney CBD. The first year of operation was so disorganized that Needham asked to be released from the partnership. Following Needham's departure, the firm was renamed Nugan Hand Ltd.[5]
According to writer Alfred W. McCoy, the bank was formed with a fraudulent claim of $1m in share capital: "With only $80 in the company's bank account and just $5 in paid-up capital, Frank Nugan wrote his own company a personal check for $980,000 to purchase 490,000 shares of its stock. He then covered his massive overdraft by writing himself a company check for the same amount."[6] Kings Cross restaurateur Bernie Houghton was also involved in the bank from the beginning.[7]
The Nugan Hand Bank attracted investors with promises of up to 16% interest rates on their deposits and assurances of anonymity, tax-free accounts, specialist investment assistance, along with more surreptitious services such as money laundering.

Category People & Blogs


Murkier Waters than bottom of the harbour- Age from Melbourne, Victoria on May 12, 1989 

May 12, 1989

 A Publisher Extra Newspaper

The Age from Melbourne, Victoria · Page 11

Publication: The Age i

Location: Melbourne, Victoria

Issue Date: Friday, May 12, 1989

Page: Page 11

https://www.newspapers.com/newspage/120597265/

On the surface they will be seen as tax cheats, says DAVID WILSON, but the activities of Francis Ward and Keith Knight raise many more questions than tax avoidance.

In 1977, Ward and Dunn left the bank and a year later set up in the taxation business with Knight. It should be stressed that in no way was Dunn associated with the illegal activities of Ward and Knight. There appears to have been an arrangement, although not documented, whereby the Ward and Knight group took over some of the Nugan Hand clients, particularly in the tax-advice area. In late 1978, a highly unlikely character entered the scene. Brian Raymond Durston had not long been out of jail, after being convicted on a false imprisonment count. Durston, along with a then Melbourne justice of the peace and real estate agent, Guy Keith Campbell, were directors of a $2 company called Camper Timber and Trading. In October 1978 an agreement was reached between Camper Timber and Ward and Knight that the company was to "exclusively service" Ward and Knight in "washing" of income or other services. In effect. Camper Timber became Ward and Knight's "laundering agent". The agreement estimated that the amount of income to go through the businesses was expected to be not less than $150 million. As part of the agreement it was decided that companies associated  with and passing through Ward and Knight which were stripped of their assets would end up with Camper Timber. Durston would then arrange for another company to be issued for arms dealing … investigators, after raiding the Ward-Knight-Dunn Offices investigators found a folder on an Israeli aircraft deal. The folder made reference to a company, Hainan Ltd., which was registered in Hong Kong and of which Ward and Knight were both directors. ON 13 February 1980, Knight- wrote to a colleague in Hong Kong. In the letter, he said: "The negotiations between our Melbourne client and the Israeli arms manufacturer were discontinued and the $750,000 profit did not-eventuate. We were quite incorrectly instructed in this matter, and have voiced our protest quite strongly through our Melbourne office." : . Investigators also found documentation on a Ward-Knight com-, pany which revealed a project to develop gun racks for sale to Indonesia. Another interesting sidelight to Ward and Knight is that they dabbled in industrial and residential projects. On each investment. one company was bought for $440,000, but within two years it was in liquidation and its shares were worthless. A venture into the travel agency industry also flopped. While the tax-avoidance matters were thoroughly and successfully investigated, the other more murky matters remain much of a mystery. Ward: first job at the Bathurst post office. a vacant block, while others were sent to two brothers, known as Johnson, in Brisbane. The Johnsons, according to evidence, did not exist. The worlds of Ward and Knight crashed in May 1983 when they were each declared bankrupt. They have since been discharged. But behind the tax schemes there emerges a shadowy world of much greater concern. Whether or not it was of their own choosing. Ward and Knight allowed well-known criminals to hold ac- Knight: started out in a wholesale vegetable business. counts with them. For example, a long-time convicted drug-runner, said by police to have been responsible for the importation of 12 kilograms of heroin, was found to have bank books in six different aliases with the Ward and Knight group. The assumption at first appears that the drug-runner was using the group for income tax preparation advice. But the person had not filled in a tax form for the better part of a decade and Ward and Knight did not act as tax agents, in Opportunity for a rising star. N the surface, Francis Dennis Ward and Reginald Keith Knight will be seen as tax cheats. Ward and Knight were, like Queenslander Brian James Maher and Sydney-sider John Walker Wynyard, leading lights in the bottom-of-the-harbor tax-avoidance industry: an industry which on some estimates turned over thousands of millions of dollars. But unlike Maher and Wynyard, more and more questions are being asked, and remain unanswered, about Ward and Knight. In a nutshell. Was the Ward-Knight bottom-of-the-harbor business just a sideline to what could have been a vast, flourishing criminal enterprise? Why would Ward and Knight, running a domestic tax business in Sydney and Melbourne, need to establish companies scattered throughout Asia? Why would Knight need to travel abroad almost 30 times, many of them for a few days at a time to Singapore and the Philippines, in the space of a few years? Why would a United States businessman, in an undated telex, outline to Ward and Knight a proposal to supply the Indonesian Government with 250 Corvette destroyers? Why would two supposedly smart money men buy a financially crippled fishing lodge on the tip of North Queensland where access is virtually limited to light aircraft? And why did Ward and Knight allow their Melbourne office to include corporate rogues, like Robert Sterling, convicted of fraud, and Brian Raymond Durston, once nominated as a key figure on the Melbourne waterfront, and in the painters and dockers? Knight was born in Geeveston in northern Tasmania on 26 February 1937. He was the eldest of seven children. An above-average student, he matriculated and moved into insurance before starting a wholesale vegetable business. He married on New Year's Eve 1960. He left the vegetable business to do a part-time economics course at the University of Tasmania in Hobart. He drove taxis to help support his wife and two daughters. His first brush with the law came in November 1968 when he opened bank accounts in false names and then tried to milk them through an unsophisticated round-robin. He was convicted on four charges of obtaining goods by false pretences and was given a suspended sentence of 12 months' imprisonment. Knight returned to his studies. completing the course in 1970. He then moved to Sydney, worked in an accountancy practice and studied law and accountancy part-time. TARD was born at Wel- lington in central New T T South Wales on 2 May 1937. While a toddler, his family moved to Bathurst He left school after gaining his Intermediate Certificate. At 18, he was convicted of fraudulent misappropriation while working at the local post office. He then began work with a food-processing firm, studying accountancy part-time. In 1967 he was posted to Sydney in a middle-level management position. He married in 1970. In the early 1970s, Ward was introduced to Frank Nugan, who was then trying to establish a merchant bank. In November 1974, Ward became a director and company secretary of the then fledging Nugan Hand Bank. In 1975, Ward wooed a colleague, Peter Milton Dunn, to Nugan Hand. ,,, Wakoola Pty. Ltd., to end up with the effective company shells provided by Ward and Knight. The directors of Wakoola were well-known painters and dockers, including Johnny Johanson, a key waterfront criminal. Business boomed. Keith Knight drove a white Rolls-Royce, owned a $500,000 home in Sydney, a share in an ocean-going yacht, and in a bank statement in 1980 estimated his net worth at $1,862 million. Ward also gained sudden wealth, estimating in July 1980 his worth at $2.8 million. Durston and Campbell effectively left the tax-avoidance game by late 1979. Ward and Knight continued. In late 1979, Ward and Knight had a leading Sydney Queen's counsel examine the validity of the Camper Timber scheme. In March the following year, the QC advised that the scheme was highly illegal and Ward and Knight could be charged with conspiracy to defraud the Tax Office. To many, that might have been the end of the rort, but not to Ward and Knight. They continued to market avoidance schemes, deliberately lying to prospective clients that the QC's opinion supported the legality of the schemes. One scheme, which was at the hub of the conspiracy to defraud charges they were sentenced on yesterday, was technically called "a sluzkin". It worked by stripping the assets from companies so the companies still had tax liability but no capacity to pay. The charges against Ward and Knight centred on 71 companies being stripped of their assets between 1978 and 1980 and the Tax Office being deprived of about $21.5 million. The Crown prosecutor, Mr Nicholas Cowdery, QC, told the trial in Sydney that internal documents of Ward and Knight referred to documents being consigned to a "watery grave". Some of the documents ended up at a Sydney address which was Financial Planning Consultant software, proven range of investment products, subsidised loans after short qualifying period, computer leasing, excellent package with productivity incentives. 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Two bankers : found guilty in $21 million tax fraud case

The Age from Melbourne, Victoria · Page 32

Publication: The Age i

Location: Melbourne, Victoria

Issue Date: Tuesday, May 2, 1989

Page: Page 32

https://www.newspapers.com/newspage/122956194/

Two bankers : found guilty in $21 million tax fraud case Two merchant bankers were found guilty yesterday of conspiring to defraud the Commonwealth of more than $21 million In tax. After considering its verdict for six hours, a jury in the Central Criminal Court in Sydney found Francis Dennis Ward, 51, and Reginald Keith Knight, 52, guilty , of the charges against them. The. trial had lasted several weeks. Mr Justice Loveday remanded, the men in custody to be sentenced, with a third man, Paul Richard Russell, 39, of Baulkham Hills, on 11 May. Russell has' pleaded guilty to the same charge. Ward, of Centennial Park In' Sydney's east, and Knight, of the'.' Gold Coast, had both pleaded not guilty to conspiring to defraud the. Commonwealth of tax between 19 April 1978 and 19 December 1980. ; The prosecution alleged that : the pair were principals of the: merchant bank Ward, Knight and Dunn, which marketed tax' schemes aimed at those interested in reducing their tax liability.' Although their scheme was" technically called a "Slutzkin" after a High Court case of the: same name it was also referred to as a "bottom of the harbor". It ' operated by stripping the assets, from companies so they still had a tax liability, but no resources to pay. The Crown Prosecutor, Mr Nicholas Cowdery, QC, said the scheme allowed businessmen,' with a current-year tax liability, to  transfer money. Plant equipment to a new company .' usually with a similar name and carry on with no tax problem.: The original companv. with tax liability, would be sold through a ' second company to a third company or individual. With no assets, no tax could be paid and there could be no recourse against the original . shareholders because of the legal concept of limited liability. Mr Cowdery said there were references in Ward, Knight and Dunn internal, documents to a, "company undertaker" and to a company being consigned to a . "watery grave". There was no evidence that any of the company documents went to the "bottom of the harbor", although many did turn up in a ' caravan on a property west of Sydney, he said. Mr Cowdery said 71 companies were stripped of their assets in two years, depriving the Commonwealth of $21.5 million in tax. Ward and Knight denied any wrongdoing, saying they were acting as agents with the belief that the ultimate owners of the 71 companies would deal with the tax liabilities. Both said there had been administrative inefficiency, but not dishonesty in the bank. No trial date has been fixed for a fourth man, Mr Emod Tarisz-nyas, 55, of Nerang, Queensland, who has pleaded not guilty to the same charge.


CIA-USA Government  Drugs Arms Money-laundering Secret CIA- USA Wars



The Most Secret Place On Earth The ClAs Covert War In Laos 2015

The Most Secret Place On Earth The ClAs Covert War In Laos 2015

Published on Oct 30, 2015

This video is about The most secret places on the earth the Clas Covert war.watch this interesting video.

Category People & Blogs

dang po3 weeks ago

Eventually all of the stories will slowly fade away

AUSTRALIA SUPSPECTS BANK LINK TO C.I.A.

Special to the New York Times

Published: November 13, 1982

http://www.nytimes.com/1982/11/13/business/australia-supspects-bank-link-to-cia.html

SYDNEY, Australia, Nov. 12— Australian detectives are expected to visit the United States and Southeast Asia in the next few weeks as they attempt to determine whether the failed Sydney-based Nugan Hand Merchant Bank was involved in trafficking in heroin and covert activities of the United States Central Intelligence Agency.

Under particular scrutiny will be the work carried out for Nugan Hand by retired United States Government officials and military officers between 1977 and 1980, when one of the bank's founders, Frank Nugan, was found shot dead and the other, Michael Hand, vanished. The bank collapsed following Mr. Nugan's death.

In a report released earlier this week, the Australian Government said it had uncovered evidence of a link between the C.I.A. and Nugan Hand. The report, heavily censored because the Government thought publication might inhibit the investigations, was made by police studying the possible involvement of the bank in drug trafficking.

The report said Mr. Hand, who was born in New York City, and a Nugan Hand associate, Bernard Houghton, a 62-year-old Texan who was the bank's representative in Saudi Arabia, had a background in American intelligence before they arrived in Sydney in 1967.

Mr. Hand, who became an Australian citizen in 1979, is believed to be in the United States, the report said. A 'Strong Inference'

The police report said of Mr. Hand: ''His business activities in the late 1960's and the early 1970's with members of the C.I.A.- controlled airline, Air America, and C.I.A.-connected Continental Air Service, and Agency for International Development led to the strong inference that Hand's intelligence activity was with the C.I.A.

''There is some evidence to suggest that Hand retained his U.S. intelligence ties through the 1970's and probably into the 1980's. Houghton was associated with U.S. intelligence personnel in Southeast Asia and Australia, and had some type of association with personnel in the Australian security and intelligence organization.''

Kevin Newman, Australia's administrative services minister, said in a statement that senior American officials had assured him that the C.I.A. had no involvement in the bank. The report said it was not drawing conclusions about C.I.A. involvement with the bank, and its only recommendation was that further investigation was warranted.

(In Washington Friday, a spokesman for the Central Intelligence Agency said it was his understanding that the Australian investigation had turned up new information suggesting C.I.A. involvement in the bank. But, said Dale Petersen, the spokesman for the agency, ''We've checked everything and have found no linkages.'')

The censored part of the report is believed to discuss links between Nugan Hand and organized crime, establishing that the bank was involved in heroin smuggling. Millions of Dollars Transferred

Among the deletions were nearly two pages following the heading, ''The unfinished investigation. United States personnel involved.''

Almost 40 pages of the 240-page report were devoted to Mr. Houghton. The report said that when Mr. Houghton ran the Saudi Arabian office, the bank transferred millions of dollars out of Saudi Arabia. The money has yet to be traced.

Many pages relating to Mr. Houghton were deleted. The sections include ''The destruction of Nugan Hand records;'' his meetings in 1979 with a former C.I.A. operative, Edwin P. Wilson, who was recently arrested in the United States and charged with exporting explosives to Libya to help train terrorists, and one headed, ''Houghton and two Australian clients of Nugan Hand - a case of fraud?'' Colby Is Named

The report included a list of Americans who worked for Nugan Hand. Among them were Rear Adm. Earl Yates, U.S.N., retired, the first president of Nugan Hand International; William E. Colby, Director of Central Intelligence from 1973 to 1976, who worked as legal adviser to Nugan Hand International after 1979; Walter McDonald, former economist and oil expert at the C.I.A., who joined Nugan Hand International in 1979 as a consultant; Brig. Gen. Edwin Black, U.S.A., retired, the bank's representative in Hawaii; Lieut. Gen. LeRoy Manor, U.S.A.F., retired, the Nugan Hand representative in Manila; Dr. Guy Pauker, a consultant to Nugan Hand International, and Dale Holmgren, the bank's Taiwan representative, who was an Army officer in Taiwan.

Apart from the police investigations, a Royal Commission on drug trafficking is also looking into activites of the Nugan Hand Bank.

Illustrations: Photos of figures in the scandal of the Nugan Hand Merchant Bank



Sydney Solicitor Lennard Keith Knight (formerly known as Reginald Keith Knight)
was jailed for tax fraud to as part of the help ASIO and the Australian Federal Police
gave to help protect CIA Operative Michael Hand...
Sydney Solicitor Lennard Keith Knight (formerly known as Reginald Keith Knight)
was jailed for tax fraud
for two years and eight months, with a minimum prison time of two years, along with his business partner Francis Dennis Ward of Ward, Knight and Dunn for $21.5 million in Australian Taxation Frauds, which was the tip of the iceberg of an estimated over $1 billion in tax fraud and money laundering done for the CIA's controlled Nugan Hand Bank and their major international drug distribution partners..


".... If I wrote a book about what I knew regarding the Nugan Hand Bank I would be rich ..howver I would also be dead in the week...." .. Lennard Keith Knight (formerly known as Michael John Moloney)... International Taxation Solicitor that worked for the Nugan Hand Bank after he was released from prison on fraud charges to help cover up and to help protect CIA Operative Michael Hand...
It is understood that Keith Knight is now living in Gingin, Western Australia and running a blind and security door business....

CIA Operative Michael Jon Hand/Fuller, Patricia Swan (the secretary at the Nugan Hand Bank) and Michael John Moloney (solicitor for the Nugan Hand Bank and CIA Operative Bernie Houghton, the previous owner of the Burbon and Beef Steak Bar in Kings Cross Sydney) ... were the only people charged in connection to the massive Nugan Hand fraud/arms dealing/drug running/money laundering/taxation evasion scandal, which ended up with the Nugan Hand Bank going into liquidation with around $100 in real assets and around $50 million in debts .. leaving a trail of Australians and USA Citizens having lost their life savings .... however CIA Operative Michael Jon Hand/Fuller quickly disappeared after CIA Operative Michael Jon Hand/Fuller, Patricia Swan (the secretary at the Nugan Hand Bank) and Michael John Moloney with the help of other Nugan Hand Staff, destroyed and removed the incriminating filed at the Sydney offices of the Nugan Hand Bank .. with threats being made to the staff that is they did not help with the destruction and removal of incriminating files from the Nugan Hand Office, they will find themselves in body bags and also start to receive body parts of their wife and children in the post  ....

8mm HOME MOVIES FROM THE SECRET WAR IN LAOS 75022

PeriscopeFilm

https://www.youtube.com/watch?v=jtSMZAr9kLY

Published on Jul 29, 2015

These extraordinary Super 8mm home movies from the Vietnam War, come from a member of the "Ravens". The Raven Forward Air Controllers, also known simply as The Ravens, were fighter pilots used for forward air control in a covert operation in conjunction with the Central Intelligence Agency of the United States in Laos during America's Vietnam War. The Ravens provided direction for most of the air strikes against communist Pathet Lao targets and People's Army of Vietnam's infiltrators in support of the Laotian Hmong guerrilla army.

SCENE #1: (00:00:00) T-28 on ramp at Pakse, loaded with Napalm. … (00:26:10) T-28 taking off at Pakse.
 
SCENE #2: (01:37:00) T-28’s bombing target on Bolavens Plateau. … (03:38:05) T-28 shooting rockets on target. Target is a PL (Pathet Lao) village. Ravens did not direct airstrikes on villages, but would monitor the strikes to make sure the Lao Pilots were hitting the village they wanted to target. However, the Ravens had no control over the T-28’s.
 
SCENE #3: (04:59:10) PL antiaircraft locations (the round holes in the ground).
 
SCENE #4: (05:50:10) T-28’s on target on the Eastern foot of the Bolavens Plateau. (06:47:10) When 2 smokes (WP’s, Willie Petes, White Phosphorus) are used, the fighters are to drop their ordnance anywhere between the 2 smokes. … (07:01:15) As here, the 2 smokes mark the area for the dropping of CBU’s (Cluster Bomb Units). … (07:26:10) Here, 500# bombs are dropped. … (07:48:00) Here, Napalm is dropped. … (08:52:00) More 500# bombs. … During these bombing runs, T-28’s are shown making their run-in on target. … (10:05:00) Another CBU run. This is a good shot of the CBU’s.
 
SCENE #5: (11:03:00) Saravane, Laos, burning. Saravane was overrun by the N. Vietnamese, who set the town on fire.
 
SCENE #6: (12:06:05) Passengers at Saravane Airport waiting to load onto plane.
 
SCENE # 7: (13:20:00) School children in Saravane, Laos, in marketplace. As always, they all want their picture taken.
 
SCENE #8: (13:59:05) Shop along road in Laotian town and the pedestrian traffic, bicycles, and cyclos (taxis), women carrying firewood on their back, etc. A lot of “village activity”. … (16:25:05) Laotian soldiers in café for coffee. … (16:45:00) Boys playing soccer at school.
 
SCENE #9: (18:31:00) Military compound at Saravane, Laos, with women walking down road. Gasoline drums are seen lined up on the ground ready to be used to refuel aircraft. All refueling is done manually with a hand-pump. Airline Stewardess and Pilot are seen on ramp at Saravane. … (20:07:05) Royal Lao Air Force plane landing at Saravane. … (20:51:05) Konty (Raven 58’s GIB [Guy-in-the-Backseat]) is shown at Saravane holding Raven 58’s Chicom SKS that was given to him by General Phasouk, the MR-4 Commander (Military Region). He is standing in front of the Lao Airlines sign at Saravane.
 
SCENE #10: (21:19:10) Raven 58’s O-1 and looking toward the mist-shrouded mountains south of Saravane. When flying over the northern part of the Bolavens Plateau, breaking out below the clouds, it was a very “prehistoric”-type site. In fact, unknown at the time, Ravens spotted what would eventually be determined to be a previously unknown huge water buffalo. It turned out to be an unknown species that is about twice the size of water buffalos commonly seen in the rice fields. … (21:45:10) A village along the runway at Saravane complete with water buffalo (the normal size).
 

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This film is part of the Periscope Film LLC archive, one of the largest historic military, transportation, and aviation stock footage collections in the USA. Entirely film backed, this material is available for licensing in 24p HD and 2k. For more information visit
 http://www.PeriscopeFilm.com

Category Education


FOUND After 35 Years: CIA’s Fugitive Banker

http://www.thedailybeast.com/found-after-35-years-cias-fugitive-banker

FOUND After 35 Years: CIA’s Fugitive Banker

How Michael Jon Hand, who founded an Australian bank with ties to American military and intelligence officials

 that defrauded depositors and investors, was tracked to Idaho.

PROPUBLICA

By Raymond Bonner, Special to ProPublica


It was one of the greatest disappearing acts of modern times.

Amid a swirl of allegations and rumors that the Nugan Hand Bank was involved in arms smuggling, drug-running, and covert operations for the CIA, the institution’s American founder vanished from Australia. Thirty-five years later, that man, Michael Jon Hand, was tracked to a small town in Idaho where he has been living under the name of Michael Jon Fuller.

Hand was found by an Australian writer, Peter Butt, whose just-released book, Merchants of Menace, discloses Hand’s whereabouts after decades of mystery.

If finding Hand, now 73, solves one mystery, it raises another. How could he have lived in the United States so long without being detected? He changed his name only slightly, from Hand to Fuller, and did not get a new Social Security number, according to Butt.

Hand’s company, G.M.I. Manufacturing, is registered with the Idaho secretary of state. The company “now manufactures tactical weapons for US Special Forces, special operations groups and hunters,’’ Butt writes. Has Hand/Fuller been brazen, foolish, or, as Butt asks, does he belong “to a protected species, most likely of the intelligence kind?”

Two years after fleeing Australia, in 1982, when the CIA was involved in a covert operation to overthrow the left-wing Sandinista government in Nicaragua, Hand was working as a military adviser in the region where the anti-Sandinista “contras” were based, according to an Australian intelligence document, which was declassified earlier this year.


Nugan Hand bank mystery: Michael Hand found living in the United States

Damien Murphy

http://www.smh.com.au/business/banking-and-finance/nugan-hand-bank-mystery-michael-hand-found-living-in-the-united-states-20151107-gkthas.html

One of Australia's most wanted fugitives, Michael Hand, the co-founder of the Sydney-based international merchant bank Nugan Hand, has been found alive and well and living in small-town America.

http://www.smh.com.au/national/a-decorated-green-beret-with-pie-in-sky-schemes-20151109-gku2zs.html

NOVEMBER 9 2015

With news that one of Australia's most wanted fugitives has been found living in the United States, we revisit a 1985 profile of Michael Hand, co-founder of the notorious Nugan Hand merchant bank

 

Lindsay Murdoch, Denis Muller and Rod Frail
First published in The Sydney Morning Herald on November 28, 1985

Michael Jon Hand and his partner, Frank Nugan, were as different as chalk and cheese.

People who worked with them characterised Hand as very much the motivator, a gung-ho pusher of people who played a promotional role in the bank. Hand seemed to regard Nugan as his intellectual superior.

He implied, at a company conference in the Gazebo Hotel in Sydney in 1979, that in their early days it was Nugan who had the technical expertise, while his contribution was that he knew how to deal with people. By then, however, they complemented each other: "I have become a first-class pencil pusher and Frank has turned into a Dale Carnegie."



A gung-ho pusher of people... Michael Hand, part owner of Nugan Hand bank Photo: Supplied

Admiral Earl Yates, the retired US Navy officer whom Hand recruited to work for the bank, told the royal commission Hand was a practising Christian Scientist. Whenever they travelled together they would attend church services on Wednesdays and Sundays. Hand would occasionally address the congregation.

"In the mornings when we would travel, he would ask me to come up go his hotel room ... and have a devotional, and he would take a  reading from his religious doctrine and put it on the tape recorder, and we would listen to the tape and have a moment of silent prayer, and then charge off for the day."

Hand was born in New York on December 8, 1941. Twenty years later he graduated from the University of Syracuse, New York, with a degree in forestry.

He enlisted with the US Army in 1963 and served until 1966. During the Vietnam War he was in the Green Berets, the elite airborne unit, and won the Distinguished Service Cross, America's stand highest award for bravery.

He once told William Colby, former director of the CIA, that in Vietnam he had some "loose connection" with the CIA.

He came to Australia on rest and recreational leave in the late sixties and met Bernie Houghton, proprietor of the Bourbon and Beefsteak restaurant in Kings Cross, where many of those involved in Nugan Hand were to first meet.

Hand emigrated to Australia in September 1967, and Houghton got him a job with Parkes Developments, selling land on the NSW North Coast. He met Nugan in 1968. They soon became close friends and shared a flat in the eastern suburbs of Sydney. Hand's first business involvement with Nugan on a more or less equal footing was when Nugan formed a company called Yorkville Nominees Pty Ltd, to buy and sell real estate. Hand was a director for three months in 1972.

Hand and Nugan became partners in another company which in July 1973 changed its name to Nugan Hand Ltd. The company dealt in real estate and silver bullion. It was heavily involved, until December 1973, is the sale of land at Brunswick Heads.

 "The little f----r, he's gone and got out of this mess and left me to clean it up."

Michael Hand, on Frank Nugan

Hand went to South Africa in 1974, and from there he continued to maintain a close working relationship with Nugan, even though Hand once told the NSW Corporate Affairs Commission that they had "separated company" for about 15 months.

In March 1976 he returned to Australia and apparently resumed his role as equal partner in Nugan Hand Ltd. By 1979, however, the relationship between Hand and Nugan soured. Nugan had, for two years, been on the grog to an extent which worried and irritated Hand.

There was, by then, another source of irritation. Nugan and his brother, Ken, were involved in committal proceedings in NSW over matters arising from the Nugan Fruit Group, a Griffith based produce distributor.

Hand described the whole affair as like a cancer and early in 1979 he told Admiral Yates he had a plan to ease Nugan out.

Yates himself gave an unflattering character assessment of Hand to the royal commission.

Citing billion dollar oil deals, loans and weapons sales, Yates described Hand as having delusions of grandeur, becoming involved in "pie in the sky schemes" and of "chasing rainbows".

When Frank Nugan was found shot dead in his car near Lithgow in January, 1980, Ken Nugan rang Hand in London to tell him. Ken Nugan said Hand's reaction was: "The little f----r, he's gone and got out of this mess and left me to clean it up." 

First published in The Sydney Morning Herald on November 28, 1985

One of Australia's most wanted fugitives, Michael Hand, is 'tracked down in the U.S.' after 35 years on the run following the collapse of the infamous Nugan Hand Bank and apparent suicide of its co-founder

Michael Hand disappeared after collapse of the infamous Nugan Hand Bank

Fellow co-founder of bank, Frank Nugan, found shot dead shortly after

Hand has been tracked down after 35 years on run in U.S. town Idaho Falls

Reporters approached a man who they claimed was Hand outside chemist 

By Jenny Awford For Daily Mail Australia

PUBLISHED: 13:06, 8 November 2015 | UPDATED: 15:20, 8 November 2015



Read more:
 http://www.dailymail.co.uk/news/article-3309110/Michael-Hand-tracked-35-years-collapse-Nugan-Hand-Bank.html#ixzz4qCbmw0gN 
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http://www.dailymail.co.uk/news/article-3309110/Michael-Hand-tracked-35-years-collapse-Nugan-Hand-Bank.html

He has been on the run for 35 years since the collapse of the infamous Nugan Hand Bank - which wiped out hundreds of millions of dollars - and the apparent suicide of its co-founder Frank Nugan.

But former CIA agent Michael Hand, who helped set-up the Sydney-based business, has allegedly been tracked down in a small U.S. town.

Hand, 73, who is one of Australia's most wanted fugitives, is allegedly living under the name Michael Jon Fuller in Idaho Falls, author Peter Butt has claimed in his new book. 

The former U.S. Special Forces soldier disappeared in June 1980 following the collapse of the bank which had debts of more than $50million.

Scroll down for video 

+4

Michael Hand, the co-founder of the Sydney-based international merchant bank Nugan Hand, has allegedly been tracked down (pictured) in small U.S. town Idaho Falls

His business partner, Mr Nugan, 37, was then found shot dead beside a 30-calibre rifle in his Mercedes-Benz just outside Lithgow, NSW, in what was ruled as a suicide by a coroner.

Reporters from 60 Minutes approached a man who they claimed was Hand outside a chemist on Sunday night's program, but the man refused to comment.

 

They were tipped off about his location by Sydney-based author Mr Butt, who revealed where the fugitive was living in his book Merchants of Menace.

Mr Butt claimed that Hand had been living in the United States as a 'protected species' since he vanished from Australia. 

+4

Hand, a former U.S. Special Forces soldier, disappeared in June 1980 following the collapse of the bank which had debts of more than $50million

+4

Reporters from 60 Minutes approached a man who they claimed was Hand outside a chemist on Sunday night's program, but the man refused to comment 

'The fact that Hand has been allowed to live the free life in the United States suggests that he belongs to a protected series, most likely of the intelligence kind,' he said.

'Indeed, an intelligence document I found places Michael Hand back working for the CIA in Central America 18 months after his disappearance.'  

Mr Butt said he would inform the Australian Federal Police and the NSW Police of Hand's new identity and whereabouts.

He claimed that a simple background check revealed Hand's new assumed identity as Michael Fuller's social security number is allegedly identical to the one allocated to Michael Hand in 1960. 

The author said he would like to see Hand extradited from the U.S. but acknowledged that it would take a 'serious measure of political will'.  

+4

Hand's business partner, Frank Nugan, 37, was then found shot dead beside a 30-calibre rifle in his Mercedes-Benz

just outside Lithgow, NSW, in what was ruled as a suicide by a coroner

Nugan Hand Bank, Fri Jun 27, 2003

http://www.takeoverworld.info/Nugan_Hand_Bank_afpn.htm

Elias Alias
Nugan Hand Bank
Fri Jun 27 15:25:31 2003
216.166.170.11

Maybe this relates to the wonderful Interview William Rivers Pitt has posted here, as well as showing yet more need for "rope".

Elias
http://www.thementalmilitia.org 

~

taken from pages 461-472 in Alfred W. McCoy's bombshell book, "The Politics of Heroin: CIA Complicity In The Drug Trade", (published by Lawrence Hill Books, Chicago, by arrangement with Harper and Row, Publishers, Inc., New York; ISBN: 1-55652-125-1; this is the second edition, copyrighted by Alfred W. McCoy 1991; first edition copyrighted by Alfred W. McCoy and Cathleen B. Read, 1972.) 

~ ~ ~ 


At 4:00 a.m. on January 27, 1980, a state police officer patrolling a country road west of Sydney, Australia, noticed a late-model Mercedes sedan parked by the side of the road and stopped to examine it. Inside the constable found the body of a middle-aged male slumped forward, still holding the rifle he had apparently used to shoot himself in the head. Searching his wallet, the police found personal identification for one Frank Nugan, a merchant banker of Sydney, and a calling card from one William Colby, a New York lawyer who had recently retired as director of the U.S. Central Intelligence Agency. 

The circumstances of Nugan's suicide and the bank's spectacular collapse only six months later have inspired hundreds of press probes, three major Australian government investigations, and a lengthy book by one of America's best investigative reporters. All have asked the same basic question: What was the relationship between the Nugan Hand Bank and the CIA? Although we have more details about the bank than about any other company with similarly ambiguous CIA conections, the question still defies a concise answer. The Nugan Hand Bank remains a great espionage mystery. 

Although the large question about the bank and the agency will probably never be answered, Nugan Hand's twisted history does offer insights into the world of CIA espionage---in particular, that gray area of alumni, allies, assets, and affiliated companies that do so much of the agency's covert work. In his memoirs and public statements, William Colby has portrayed his CIA colleagues as "honorable men", patriots who simply would not, could not tolerate any involvement in drugs by either agency personnel or covert assets. Whatever it may or may not have been, the Nugan Hand Bank was certainly two things: (1)an employer of many retired CIA agents and (2) heavily involved in narcotics trafficking. Unlike most of the agency's faceless espionage, the carefully documented Nugan Hand case affords a close look at the moral universe of covert operations, particularly the gray sector of CIA proprietaries and affiliates. The Nugan Hand case shows how the CIA's secret war in Laos, interwoven with the tribal opium trade, produced a covert action cadre with a tolerance for drug dealing. 

The Nugan Hand Bank served several constituencies simultaneously, and its various relationships reveal a good dal about the operations of this clientele. Based in Sydney, the bank was a partnership between Australian lawyer Frank Nugan and an ex-Green Beret businessman named Michael Hand. Both worked closely with one of their senior managers, a mysterious American expatriate with impeccable intelligence contacts, Maurice Benard Houghton. Through the three men and their separate, sometimes overlapping networks, the bank cultivated corrupt Australian politicians, Sydney crime syndicate, a fraternity of ex-CIA arms dealers, and the U.S. Central Intelligence Agency. 

In less than a decade after its incorporation in Sydney in 1973, Nugan Hand Limited went through a complete cycle from modest origins to spectacular global expansion to precipitous collapse. During its eight-year life, the bank's character was shaped by its three principals. Son of a Spanish migrant fruit packer, Francis Nugan grew up in Griffith, New South Wales, in the coutry west of Sydney, graduated in law from Sydney University, and did some spotty postgraduate legal studies in California and Canada. Nugan would later claim that he played a major role in rewriting Canada's tax law while studying abroad, but records show that he was employed as a minor clerical assistant. His name does appear among the twenty-seven listed in the tax review's final report. While his brother Ken built the family produce business, the Nugan Group Limited, into one of Australia's largest, Frank practiced law in Sydney without much success in the late 1960s. Stripped of his inflated credentials, Frank Nugan was known to be an abrasive alcoholic, an incompetent manager, a mediocre lawyer, and a "pathological liar". 

The other founding partner, Michael Jon Hand, was born in New York in 1941, son of a senior state civil servant, and raised in the Bronx. In 1963 he finished a year's vocational course in forestry at Syracuse University, graduating thirty-eighth among forty-nine students, and joined the U.S. Army's Special Forces, the Green Berets. After training at Fort Bragg, he was sent to Vietnam where he won the army's second highest decoration, the Distinguished Service Cross, for gallantry in fighting northwest of Saigon. Sometime in 1965-1966 Hand joined the CIA for two years as a contract operative fighting with Hmong guerrillas in the mountains of northern Laos. While serving with the CIA, Hand met Theodore Shackley, the agency's Vientaine station chief in 1966-1968, and befriended a crack Air America pilot, Kermit "Buddy" King, who often flew him to remote tribal outposts. The various official reports do not mention whether Hand also met Shackley's friend and deputy CIA statcion chief Thomas Clines, later a close associate of both Hand and his partner Bernie Houghton. Although Hand's Hmong allies grew opium and shipped it to market on Air America, it is not known whether it was here that Hand acquired the expertise in narcotics that he later applied to building the bank. 

Sometime in 1967 Hand finished his CIA contract and moved to Sydney, where he met American expatriate Bernie Houghton, who was then running the Bourbon and Beefsteak restaurant in the city's Kings Cross vice district. Through Houghton and other contacts,Hand soon became involved in selling Australian real estate to Americans serving in Southeast Asia. In early 1968 the pilot Buddy King joined Hand in Australia and eventually settled with his Thai housekeeper several hours up the coast from Sydney, where their land sales were located, often flying Hand up to the property in a private aircraft for weekends. As an indication of their CIA contacts, in September 1969 Hand formed Australasian and Pacific Holdings Ltd., a real estate company whose seventy-one shareholders included nineteen people then employed by the CIA's contract airlines in Indochina, Air America and Continental Air Services. Sometime in the late 1960s Hand met Frank Nugan and the two are believed to have shared an apartment before they both married. Crude in manner, violent in speech, and poorly educated, Hand had no banking experience and would bring little more than his cunning and covert contacts to the building of Nugan Hand Bank. 

The key figure in much of the bank's history, Maurice Bernard Houghton, is a mysterious Texan who arrived in Sydney from Southeast Asia in 1967 with an impressive list of references from senior U.S. military officers. Born in Texas in 1920, Houghton finished a semester at Southern Methodist University; served in the military during World War II; and knocked bout the country for twenty years in various jobs with no particular direction. In 1964 Houghton moved to Southeast Asia, where he remained for the next three years during the escalation of the Viet Nam war, engaged in activities that remain unclear. Australia's Joint Task Force into the bank's affairs reported that Houghton was "part of the intelligence community" in Southeast Asia before coming to Australia. Wall Street Journal reporter Jonathan Kwitny interviewed former U.S. intelligence officers who claimed, on the record, that Houghton was a wheeler-dealer in Southeast Asia who traded in slot machines, opium---anything. 

Soon after arriving in Sydney, Houghton formed a business association with a prominent Hungarian emigre, Sir Paul Strasser, owner of one of Sydney's leading property companies. With support from Strasser and his associates, Houghton opened the Bourbon and Beefsteak restaurant in October, 1967, just weeks before the first American soldiers began arriving on R&R leave from Vietnam. Among Houghton's private guests at the club were the CIA's Australian station chief from 1973 to 1975, John D. Walker; the state's Premier Sir Robert Askin, a corrupt politician notorious for his contacts with criminal syndicates; and Abraham Saffron, Sydney's leading gangster and vice lord of Kings Cross. Unlike his future partners, Houghton maintained excellent contacts with the most senior U.S. military and intelligence personnel in the Asia-Pacific region. His intelligence contacts were such that when hereturned to Australia from a business trip without a visa in 1972, he rang the state director for the clandestine Australian Security Intelligence Organization (ASIO). The director, Leon Carter, vouched for Houghton and the American received an immediate visa. In dealing with his male friends, Houghton seems to have been a man of strong loyalties and antipathies. "I had a personality problem with Nugan", Houghton later told the Australian Joint Task Force. "He was harsh, abrasive, arrogant and inconsiderate." By contrast, Houghton remained very close to Michael Hand, who seemed to regard the older man as a "father figure". Hand would eventially tire of Frank Nugan's alcoholism and costly flamboyance, but he remained close to Bernie Houghton until the end. 

In 1973, Nugan Hand Limited was born, as it would die, through a gross financial fraud. With only $80 in the company's bank account and just $5 in paid-up capital, Frank Nugan wrote hs own company a personal check for $980,000 to purchase 490,000 shares of its stock. He then covered his massive overdraft by writing himself a company check for the same amount. Through this elementary accounting fraud, Nugan could claim that the company's paid-up capital was a million dollars. The bank's start also coincided with the first of many allegations of drug dealing against Michael hand. Injured in an accident, Buddy King's Thai houskeeper met a Sydney lawyer to sue for compensation. The lawyer was, for reasons never explained, phoned the Australian Bureau of Narcotics to report that King, Air America's former ace pilot, was flying heroin into Australia for Michael hand. Soon after his housekeeper's lawyer made these allegations, King fell to his death from the tenth floor of a Sydney apartment building. 

Over the next four years, the bank gfrew at a remarkable rate by providing a bridge between larger, legitimate banks and a shadow universe of organized crime, illegal money laundering, and intelligence operations. Even at its peak in 1979 with dozens of emplyees and a global network of offices, the bank never really made a proper profit. Most employees were not clerks or investment counselors, but salespeople who csrambled desperately to keep new deposits coming in the front door faster than the bank's officers could take them out the back---through lavish expenses, high salaries, and simply fraud. Nugan Hand was a carnival shell game, courting depositors for cash and moving money from branch to branch to conceal one fundamental fact---the bank simply had no assets behind it. 

Like many corporate confidence men, Frank Nugan and Michael Hand were obsessed with creating the illusion of propriety and prosperity. Without any capital or customers, Frank Nugan's first act in opening the company was to lease expensive, well-appointed offices at 55 Macquarie Street, a prestigious address in the heart of the Sydney business district. Nugan hired a reputable money market manager who found that he could get an hour or two of credit every day from personal contacts in the business, just long enough to buy and sell. Although the trading incurred a real loss of $18, 373, the total volume of transactions reached $2.4 million dollars, giving the new company the aura of doing big business. As the bank grew, so did the scale of its illusions. The bank issued glossy annual reports claiming, in 1976 for example, $22 million in "total assets", $26 million in "gross proceeds from sales of securities", and approval of its bookkeeping by reputable auditors. A lavish promotional brochure described the bank as part of the Nugan Hand Group, "with assets exceeding US $20,000,000 and a turnover exceeding US $1,000,000,000 per annum." Assuring potential clients "absolute security, anonymity and confidentiality", the brochure promised customers "the utmost in personal service and attentive specialist assistance." With what now seems wry irony, the bank offered, as a special service for valued customers, child welfare accounts that would "give faithful and attentive care and supervision to all aspects of education, health, welfare and advancement in life off the children of the beneficiary." All of these claims, financial and moral, were knowing lies. 

While Frank Nugan concentrated on courting business clients in Sydney, other associates, Hand included, took the bank abroad. The group's first breakthrough to something approaching profit came in 1974-1975 when it opened a legal Hong Kong branch. By offering Sydney depositors a money-laundering facility for illegal transfers of Australian money to Hong Kong and reciprocally allowing Hong Kong clients a higher rate of interest for funds deposited ni Sydney, the bank began to move large funds for the first time. 

As these global activities grew over the next six years, Nugan Hand Limited gradually divided, formally and informally, into two almost separate companies: the Sydney-based Nugan Hand Limited under Frank Nugan's control and the international branches of Nugan Hand Bank, later registered as a Cayman Islands corporation, managed largely by Michael hand. As Hand grew tired of Frank Nugan's incessant drinking and mounting legal problems, the ex-Green Beret pulled away from his Australian partner and drew Bernie Houghton into the international side fo the business. While Frank Nugan's Sydney office concentrated on tax fraud and money laundering, the Hand-Houghton partnership led the bank's international division into new fields---drug finance, arms trading, and support work for CIA covert operations. 

During the bank's early days in Sydney, Michael Hand had told his junior colleagues that "it was his ambition that Nugan Hand become banker for the CIA. In southern Africa during the mid-1970s, Hand, the former CIA operative, seems to have realized his ambition. At that time southern Africa was in the throes of decolonization, with guerrilla groups fighting the Portugese in Angola and British colonials in Rhodesia. When the Portuguese regime began to crumble in Angola, rival guerrilla groups turned to their great power patrons for more arms, making Angola a cockpit of cold war confrontation. As CIA covert arms shipments began flowing into Angola in 1974-1975, first to Holden Roberto and then to UNITA, Michael Hand left Sydney in January 1975 for southern Africa, where he remained for more than a year, trading in arms and munitions. During his fifteen months in Africa, Hand telexed and telephoned the bank's Sydney headquarters repeatedly, speaking with Frank Nugan and employee, Wilhemus Hans, about shipments of pistols, helicopters, and munitions. After Nugan's death, investigators found what appeared to be phone notes in his handwriting from this period, one of which read: 

Military weapons Rhodesia 
Pay in Gold 
Recoilless Rifles 
Morters 60/80 ml 
M79 Granade launchers 
Quad .50 Caliber machine guns 

Although it has never been clearly established what, if any, arms were actually shipped from Australia, there is no doubt about the sincerity of Michael Hand's intentions. In Pretoria, South Africa, Hand incorporated a trad 

Predatory Practices Nugan Hand Trick Bank

Con Front Nugan Hand - Nugan Hand Trick Bank

The Crime Bankers-Frank Nugan and Michael Hand/Fuller

More CIA Treachery: Nugan Hand Bank Ltd
By Elias Alias, 2015

This latest version of the selected excerpts from Alfred McCoy’s masterpiece on the CIA’s dope dealing escapades is more complete than previous postings. I have typed in passages from pages 461-472 in Alfred W. McCoy’s bombshell book, “The Politics of Heroin: CIA Complicity In The Drug Trade“, (1991; first edition 1972.)

At 4:00 a.m. on January 27, 1980, a state police officer patrolling a country road west of Sydney, Australia, noticed a late-model Mercedes sedan parked by the side of the road and stopped to examine it. Inside the constable found the body of a middle-aged male slumped forward, still holding the rifle he had apparently used […] Searching his wallet, the police found personal identification for one Frank Nugan, a merchant banker of Sydney, and a calling card from one William Colby, a New York lawyer who had recently retired as director of the U.S. Central Intelligence Agency.

The circumstances of Nugan’s [death] and the bank’s spectacular collapse only six months later have inspired hundreds of press probes, three major Australian government investigations, and a lengthy  book by one of America’s best investigative reporters. All have asked the same basic question: What was the relationship between the Nugan Hand Bank and the CIA? Although we have more details about the bank than about any other company with similarly ambiguous CIA connections, the question still defies a concise answer.

[…] Nugan Hand’s twisted history does offer insights into the world of CIA espionage—in particular, that gray area of alumni, allies, assets, and affiliated companies that do so much of the agency’s covert work. In his memoirs and public statements, William Colby has portrayed his CIA colleagues as “honorable men”, patriots who simply would not, could not tolerate any involvement in drugs by either agency personnel or covert assets. Whatever it may or may not have been, the Nugan Hand Bank was certainly two things: (1)an employer of many retired CIA agents and (2) heavily involved in narcotics trafficking.

Unlike most of the agency’s faceless espionage, the carefully documented Nugan Hand case affords a close look at the moral universe of covert operations, particularly the gray sector of CIA proprietaries and affiliates. The Nugan Hand case shows how the CIA’s secret war in Laos, interwoven with the tribal opium trade, produced a covert action cadre with a tolerance for drug dealing.

The Nugan Hand Bank served several constituencies simultaneously, and its various relationships reveal a good deal about the operations of this clientele. Based in Sydney, the bank was a partnership between Australian lawyer Frank Nugan and an ex-Green Beret businessman named Michael Hand. Both worked closely with one of their senior managers, a mysterious American expatriate with impeccable intelligence contacts, Maurice Benard Houghton. Through the three men and their separate, sometimes overlapping networks, the bank cultivated corrupt Australian politicians, Sydney crime syndicate, a fraternity of ex-CIA arms dealers, and the U.S. Central Intelligence Agency.

In less than a decade after its incorporation in Sydney in 1973, Nugan Hand Limited went through a complete cycle from modest origins to spectacular global expansion to precipitous collapse. During its eight-year life, the bank’s character was shaped by its three principals. [Following is excepted] Francis Nugan was known to be an abrasive alcoholic, an incompetent manager, a mediocre lawyer, and a “pathological liar”. Michael Jon Hand, was born in New York in 1941, had joined the U.S. Army’s Special Forces, the Green Berets. Sometime in 1965-1966 Hand joined the CIA where he met Theodore Shackley and befriended a crack Air America pilot, Kermit “Buddy” King. Hand also met deputy CIA station chief Thomas Clines. In 1967 Hand finished his CIA contract and moved to Sydney, where he met American expatriate Bernie Houghton.

As an indication of their CIA contacts, in September 1969 Hand formed Australasian and Pacific Holdings Ltd., a real estate company whose seventy-one shareholders included nineteen people then employed by the CIA’s contract airlines in Indochina, Air America and Continental Air Services. Sometime in the late 1960s Hand met Frank Nugan and the two are believed to have shared an apartment before they both married. Crude in manner, violent in speech, and poorly educated, Hand had no banking experience and would bring little more than his cunning and covert contacts to the building of Nugan Hand Bank.

The key figure in much of the bank’s history, Maurice Bernard Houghton, is a mysterious Texan who arrived in Sydney from Southeast Asia in 1967 with an impressive list of references from senior U.S. military officers. […] Australia’s Joint Task Force into the bank’s affairs reported that Houghton was “part of the intelligence community” in Southeast Asia before coming to Australia. Wall Street Journal reporter Jonathan Kwitny interviewed former U.S. intelligence officers who claimed, on the record, that Houghton was a wheeler-dealer in Southeast Asia who traded in slot machines, opium—anything.

Soon after arriving in Sydney, Houghton formed a business association with a prominent Hungarianemigre, Sir Paul Strasser, owner of one of Sydney’s leading property companies. With support from Strasser and his associates, Houghton opened the Bourbon and Beefsteak restaurant in October, 1967, just weeks before the first American soldiers began arriving on R&R leave from Vietnam. Among Houghton’s private guests at the club were the CIA’s Australian station chief from 1973 to 1975, John D. Walker; the state’s Premier Sir Robert Askin, a corrupt politician notorious for his contacts with criminal syndicates; and Abraham Saffron, Sydney’s leading gangster and vice lord of Kings Cross.

Unlike his future partners, Houghton maintained excellent contacts with the most senior U.S. military and intelligence personnel in the Asia-Pacific region. His intelligence contacts were such that when he turned to Australia from a business trip without a visa in 1972, he rang the state director for the clandestine Australian Security Intelligence Organization (ASIO). The director, Leon Carter, vouched for Houghton and the American received an immediate visa. In dealing with his male friends, Houghton seems to have been a man of strong loyalties and antipathies. “I had a personality problem with Nugan”, Houghton later told the Australian Joint Task Force. “He was harsh, abrasive, arrogant and inconsiderate.” By contrast, Houghton remained very close to Michael Hand, who seemed to regard the older man as a “father figure”. Hand would eventually tire of Frank Nugan’s alcoholism and costly flamboyance, but he remained close to Bernie Houghton until the end.

In 1973, Nugan Hand Limited was born, as it would die, through a gross financial fraud. With only $80 in the company’s bank account and just $5 in paid-up capital, Frank Nugan wrote his own company a personal check for $980,000 to purchase 490,000 shares of its stock. He then covered his massive overdraft by writing himself a company check for the same amount. Through this elementary accounting fraud, Nugan could claim that the company’s paid-up capital was a million dollars.

The bank’s start also coincided with the first of many allegations of drug dealing against Michael hand. Injured in an accident, Buddy King’s Thai house-keeper met a Sydney lawyer to sue for compensation. The lawyer was, for reasons never explained, phoned the Australian Bureau of Narcotics to report that King, Air America’s former ace pilot, was flying heroin into Australia for Michael hand. Soon after his housekeeper’s lawyer made these allegations, King fell to his death from the tenth floor of a Sydney apartment building.

Over the next four years, the bank grew at a remarkable rate by providing a bridge between larger, legitimate banks and a shadow universe of organized crime, illegal money laundering, and intelligence operations. Even at its peak in 1979 with dozens of employees and a global network of offices, the bank never really made a proper profit. Most employees were not clerks or investment counselors, but salespeople who scrambled desperately to keep new deposits coming in the front door faster than the bank’s officers could take them out the back—through lavish expenses, high salaries, and simply fraud. Nugan Hand was a carnival shell game, courting depositors for cash and moving money from branch to branch to conceal one fundamental fact—the bank simply had no assets behind it.

Like many corporate confidence men, Frank Nugan and Michael Hand were obsessed with creating the illusion of propriety and prosperity. Without any capital or customers, Frank Nugan’s first act in opening the company was to lease expensive, well-appointed offices at 55 Macquarie Street, a prestigious address in the heart of the Sydney business district. Nugan hired a reputable money market manager who found that he could get an hour or two of creditevery day from personal contacts in the business, just long enough to buy and sell. Although the trading incurred a real loss of $18, 373, the total volume of transactions reached $2.4 million dollars, giving the new company the aura of doing big business.

As the bank grew, so did the scale of its illusions. The bank issued glossy annual reports claiming, in 1976 for example, $22 million in “total assets”, $26 million in “gross proceeds from sales of securities”, and approval of its bookkeeping by reputable auditors. A lavish promotional brochure described the bank as part of the Nugan Hand Group, “with assets exceeding US $20,000,000 and a turnover exceeding US $1,000,000,000 per annum.” Assuring potential clients “absolute security, anonymity and confidentiality”, the brochure promised customers “the utmost in personal service and attentive specialist assistance.” […] All of these claims, financial and moral, were knowing lies.

While Frank Nugan concentrated on courting business clients in Sydney, other associates, Hand included, took the bank abroad. The group’s first breakthrough to something approaching profit came in 1974-1975 when it opened a legal Hong Kong branch. By offering Sydney depositors a money-laundering facility for illegal transfers of Australian money to Hong Kong and reciprocally allowing Hong Kong clients a higher rate of interest for funds deposited in Sydney, the bank began to move large funds for the first time.

As these global activities grew over the next six years, Nugan Hand Limited gradually divided, formally and informally, into two almost separate companies: the Sydney-based Nugan Hand Limited under Frank Nugan’s control and the international branches of Nugan Hand Bank, later registered as a Cayman Islands corporation, managed largely by Michael hand. As Hand grew tired of Frank Nugan’s incessant drinking and mounting legal problems, the ex-Green Beret pulled away from his Australian partner and drew Bernie Houghton into the international side of the business. While Frank Nugan’s Sydney office concentrated on tax fraud and money laundering, the Hand-Houghton partnership led the bank’s international division into new fields—drug finance, arms trading, and support work for CIA covert operations.

During the bank’s early days in Sydney, Michael Hand had told his junior colleagues that “it was his ambition that Nugan Hand become banker for the CIA. In southern Africa during the mid-1970s, Hand, the former CIA operative, seems to have realized his ambition. At that time southern Africa was in the throes of decolonization, with guerrilla groups fighting the Portugese in Angola and British colonials in Rhodesia. When the Portuguese regime began to crumble in Angola, rival guerrilla groups turned to their great power patrons for more arms, making Angola a cockpit of cold war confrontation.

As CIA covert arms shipments began flowing into Angola in 1974-1975, first to Holden Roberto and then to UNITA, Michael Hand left Sydney in January 1975 for southern Africa, where he remained for more than a year, trading in arms and munitions. During his fifteen months in Africa, Hand telexed and telephoned the bank’s Sydney headquarters repeatedly, speaking with Frank Nugan and employee, Wilhemus Hans, about shipments of pistols, helicopters, and munitions. After Nugan’s death, investigators found what appeared to be phone notes in his handwriting from this period, one of which read:

Military weapons Rhodesia
Pay in Gold
Recoilless Rifles
Morters 60/80 ml
M79 Granade launchers
Quad .50 Caliber machine guns

[…] In Pretoria, South Africa, Hand incorporated a trading company, Murdoch Lewis Proprietary Ltd., to take delivery of the arms shipments. At one point Hand summoned his Sydney employee Wilhemus Hans to Africa for discussions about formation of a helicopter squadron for the white [illegal occupiers]. Hand also made frequent phone calls to another bank employee, Frank Ward, later charged with arms dealing by Australian authorities in court proceedings that remained classified.

While Hand waited in southern Africa to take delivery of arms, his close friend Bernie Houghton flew to Washington DC, with two Nugan Hand employees to arrange shipments. Significantly, Houghton made direct contact with CIA agent Edwin Wilson, then working for Task Force 157, a covert action arm of the Office of Naval Intelligence (ONI). With vast profits from his contract covert operations work, Wilson had purchased Mt. Airy Farms, a thousand-acre estate in northern Virginia where he often entertained his close comrades Thomas Clines and Theodore Shackley, Hand’s former CIA superiors back in Laos who were now rising fast in the agency’s Langley headquarters. After fifteen years as a career CIA officer, Wilson had transferred to Task Force 151 in 1973 and was operating from the offices of a cover company, World Marine Inc., at 1425 K Street in Washington. It was there that Wilson would meet Houghton and the two Nugan Hand men to arrange the African arms deal.

Australia’s Joint Task force investigating the bank later learned details of the meetings from Dennis Schlachter, a World Marine employee whose evidence as a protected federal witness would lead to Wilson’s 1982 conviction for illegal arms sales to Libya. Sometime in 1975 or early 1976 Schlachter first learned of the African arms deal when two CIA agents based in Indonesia, James Hawes and Robert Moore, called on Wilson at World Marine in Washington to discuss “an African arms deal” that, in these agents’ words, “had to be put together”. Sometime later, Houghton arrived from Sydney and came into World Marine’s offices with the two Nugan Hand men to order the arms.

Schlachter recalls chauffeuring Wilson and Hawes out to the agency’s headquarters in Langley while the two discussed using Nugan Hand Bank to finance the shipments. Under the “cover of Task Force 157,” ammunition, 3,000 weapons including machine guns, M-1s, carbines and others”. With an end-user’s certificate showing World Marine as the purchaser and an Australian company as the buyer, the arms left the United States from Boston for southern Africa in three separate shipments.

The Australian Joint Task Force found that Ed Wilson and Bernie Houghton were also involved in the ONI operation to transfer a highly classified spy ship to the Shah of Iran. Soon after joining Task Force 157 in 1973, Wilson had earned a $500,000 fee by delivering an earlier spy ship to Iran under the cover of World Marine. According to the witness Schlachter, in 1975 the U.S. Navy assigned Wilson to deliver another high-technology spy ship to Iran. Schlacter recalls that Houghton “was involved” in this deal, working with “funds…and…payouts”.

Significantly, Australian immigration records show that Houghton flew to Iran in March 1975 in the company of a U.S. Army Colonel. Working through Task Force 157, Wilson purchased the ship and ordered it to sail from England around Africa to Iran. When some “mix-up” developed, Schlachter recalls that “Wilson flew to Iran to correct it.” Australian immigration records show that in January 1976 Wilson flew into Sydney and stayed in Australia for three days before flying on to Iran.”

After fourteen months in Africa, Michael Hand returned to the bank’s Sydney headquarters in March 1976 and dedicated his trade skills to a new constituency—Australia’s leading international heroin smugglers. After nearly fifty years without a serious narcotics problem, Australia showed signs of spreading addiction in the late 1970s as Sydney’s criminal syndicates began organizing regular heroin shipments from Southeast Asia. In a March, 1977 report, for example, Sydney’s Crime Intelligence Unit monitored a series of meetings between the city’s leading illegal bookmaker, George Freeman, and California crime figure Danny Stein:

“Information was received that Stein was here for the purpose of organizing a network for the reception of heroin into this country from the Golden Triangle and for subsequent distribution on thelocal market and in the United States.”

Would-be Sydney heroin smugglers faced Australia’s stringent currency control laws that made it difficult to export the hard cash for heroin buys in Bangkok. After two years of active money laundering through Hong Kong, Nugan Hand was becoming known in the underworld as a reliable money mover. Sometime in early 1976 George “the Duke” Countis, an American crime figure who “owned” a gaming table in an illegal Sydney casino, brought Murray Riley to the headquarters of Nugan Hand Limited. A former Sydney constable, Riley had quit the police to become a “patron” in the criminal underworld and a close associate of leading criminals like George Freeman. Just back from Africa, Hand quickly developed what the Australian police Joint Task Force called “a close business and social relationship with Riley”.

Starting in April 1976, only four weeks after his arrival from Africa, Hand made five cash transfers to Hong Kong for Murray Riley totaling $295,000. After each transfer, one of Riley’s underlings would call at Nugan Hand’s Hong Kong office to pick up the money, later using the cash to take delivery of a heroin shipment. Through this procedure, Nugan Hand handled $4.3 million in identifiable drug money for twenty-six known dealers between 1976 and 1980. Studying Hand’s memorandum to his Hong Kong office about a $60,000 cash transfer for Riley’s October shipment, the Task Force concluded “that Hand was aware that Riley was involved in significant illegal activity”.

As an indication of their closeness, in late 1986, acting on Riley’s advice, Hand opened bank branches in Thailand, in the words of his Chiangmai branch manager, “to attract drug money”. Two years later, when a yacht was seized south of Sydney with 4.3 tons of high-grade cannabis and Riley was charged, Michael Hand ordered the bank’s Hong Kong office to destroy all incriminating records of Riley’s money transfers. Reviewing this period in the bank’s history, Australia’s Joint Task Force concluded:

“Throughout 1976 Hand was knowingly involved in drug activity with the ‘Riley’ group in that he permitted and even encouraged the use of Nugan Hand facilities for the movement of ‘drug’ money.

In October 1976 Hand decided to leave the Sydney office to Frank Nugan and move to Hong Kong, where he could build the bank’s international division. Over the next two years, Hand worked with some success to develop a global network of twelve branches that covered Asia, Africa, and the Americas. After months of failure, Hand’s break had come in June 1976 when the Cayman Islands, a British colonial tax haven in the Caribbean, decided to charter the Nugan Hand Bank, finally giving the company the legal right to advertise itself as a “merchant bank”.



Partying At The Nugan Hand Bank And The Misadventures In The Pacific

James Ambas

https://www.youtube.com/watch?v=kQBOMNCncVw&app=desktop

Published on Jul 13, 2011

This is part 1 of a show Dave Emory and Nip Tuck did on December 3, 1986.

Websites:
http://spitfirelist.com/anti-fascist-...
http://spitfirelist.com/

Categor News & Politics

More Nugan Hand Partying, Falcon's Trip The Rio Grande, And The Meditteranean Connection

James Ambas

Published on Jul 13, 2011

This is part 2 of a show Dave Emory and Nip Tuck did on December 3, 1986.

Websites:
http://spitfirelist.com/anti-fascist-...
http://spitfirelist.com/

Category News & Politics



Subject: Wisdom- CIA- Nugan Hand Bank- Michael John Moloney , and
Lennard Keith Knight (formerly known as Reginald Keith Knight)




Wisdom is the highest level of knowledge 
Wisdom is aquired by experience gained by normal natural living.
The wise individual constantly satisfies their natural needs and therefore experiences a major saturation 
They have everything that they need, irrespective of the quality and quantity of what they have and are.
Therefore satisfied by overcoming the inconveniences ..  the conveniences also lose their importance. ..
In otherwords, where differences get smaller between the possible conveniences and the inconveniences .... the needs also get smaller ... the more the individual knows ... the less needs they have.... which means that by living they come closer to freedom ... in it's broadest sense but..
Taken from. . The Report On Humanism by Aleksandar Sarovic

.....
Sydney Morning Herald
Thursday October 15th, 1981- Page 17.

Witness in conspiracy case said Hand Feared for His Life..

T.C. Davidson QC - acting for the Corporate Affairs Commissioner ... questioned Mr Gilder at the committal of Nugan Hand Bank'the secretary, Patricia Mary Swan and solicitor for the Nugan Hand Bank and Bernie Houghton, Michael John Moloney (now known as Lennard Keith Knight ..)..
Mr Gilder said that on Tuesday, January 31st 1980  .. at a meeting in the Nugan Hand Bank offices in at 15 Macquarie Street, Sydney ... he (Mr Gilder) proposed that the company (Nugan Hand Ltd) suspend operations until the financial state of Nugan Hand Ltd had been clarified ... 
Mr Gilder told the Court that Michael John Hand then spoke for about 20 minutes   .. saying that they (Nugan Hand Ltd) must stay in business ... that (if not) his (Mr Gilder 's) wife would suffer greatly ... and that she (Mr Gilder 's wife) would be mutilated and send to him (Mr Gilder) in packages ...
Michael John Hand had also said that his (Gilder's) picture was well known in South East Asia and that he (Gilder) should also fear for his family too ... 
Mr Gilder said Michael John Hand/Fuller repeated several times. .  that he had received death threats   . .. as a result the suggestion that trading (in Nugan Hand Ltd)
 was not discussed further ...
The now missing Director and Part Owner of the failed Nugan Hand Bank ... Michael John Hand/Fuller ... told employees that he had received death threats ... and that he (Michael John Hand/Fuller) expected to be killed within the next 24 hours ....
A witness told the Committal Hearing of a conspiracy case yesterday ..
 the witness Mr Jeremy Mackenzie Gilder of Moruben Road, Moiman ... was giving evidence at the Sydney Court of Pretty Sessions in Phillip Street at the Committal Hearing of Nugan Hand Bank's secretary, Patricia Mary Swan, and Nugan Hand Bank's solicitor, Michael John Moloney (now known as Lennard Keith Knight) ... who have been both charged with conspiring to pervert the course of justice  . .. with contravening Sections 174 and 179A of the Companies 
Act   ... and falsely swearing oaths relating to the disappearance of documents belonging to the Nugan Hand Group of Companies ... in answer to questions from Mr   ..  
... Mr Gilder then gave evidence ...
".. about the use of a Hi Ace Van used to transport cartons containing files from the offices of the late Frank Nugan ... out of the offices of the Nugan Hand Group ... 
Mr Gilder said that the defendant Swan helped pack the files and papers in Mr Nugant's Office into cartons.  ... along with himself, Hand, Moloney, Mr Stephen Hill (former director and company secretary of Nugan Hand Ltd), Admiral Yates, Mr George Shaw and possibly Mr Quentin George...
Mr Gilder said that he saw the van the following day. ... and the cartons were no longer inside the van ...
Mr Gilder told Mr I.S. Ward QC acting for the defendant Michael John Molony (known as Lennard Keith Knight) ...that he ( Gilder) had never been in any discussions about whether the Nugan Hand Group of Companies had anything to hide or the documents and files belonging to the Nugan Hand Group should be secreted or distoroyed ...
Mr Gilder also gave evidence concerning the Nugan Hand Solicitor, Michael John Moloney's position in the Nugan Hand Group of companies.
Mr Gilder said that he first met the Nugan Hand Solicitor, Michael John Moloney/Knight, at the Sydney Airport on Tuesday, January 29th, 1980 ...when he (Mr Gilder) went out to the Sydney Airport to collect Michael John Hand/Fuller ....
Michael John Hand/Fuller was returning to Sydney after the death of his partner to collect Francis John Nungan, on Sunday January 27th, 1980. 
Mr Gilder stated that members of the Nugan family were there and also the Nugan Hand Solicitor, Michael John Moloney (now known as Lennard Keith Knight) ...and Mr Bernie Houghton...
Mr Ward QC asked Mr Gilder if Michael John Moloney (now known as Lennard Keith Knight) had been introduced to Michael John Hand/Fuller by Mr Bernie Houghton .... Mr Gilder said ... "...quite possibly..." ...
Mr Gilder then drove Michael John Hand/Fuller and Michael John Moloney (now known as Lennard Keith Knight) back to Sydney .... it was hard to say whether Hand and Molony knew each other before that day.
At the meeting in the Nugan Hand Offices om Tuesday January 29th, 1980, Hand had said the principle of the group, should follow Moloneys instructions ... the hearing continues..

Subject: Wisdom- CIA- Nugan Hand Bank- Michael John Moloney (Lennard Keith Knight)



Wisdom is the highest level of knowledge 
Wisdom is aquired by experience gained by normal natural living.
The wise individual constantly satisfies their natural needs and therefore experiences a major saturation 
They have everything that they need, irrespective of the quality and quantity of what they have and are.
Therefore satisfied by overcoming the inconveniences ..  the conveniences also lose their importance. ..
In otherwords, where differences get smaller between the possible conveniences and the inconveniences .... the needs also get smaller ... the more the individual knows ... the less needs they have.... which means that by living they come closer to freedom ... in it's broadest sense but..
Taken from. . The Report On Humanism by Aleksandar Sarovic

.....
Sydney Morning Herald
Thursday October 15th, 1981- Page 17.

Witness in conspiracy case said Hand Feared for His Life..

T.C. Davidson QC - acting for the Corporate Affairs Commissioner ... questioned Mr Gilder at the committal of Nugan Hand Bank'the secretary, Patricia Mary Swan and solicitor for the Nugan Hand Bank and Bernie Houghton, Michael John Moloney (now known as Lennard Keith Knight ..)..
Mr Gilder said that on Tuesday, January 31st 1980  .. at a meeting in the Nugan Hand Bank offices in at 15 Macquarie Street, Sydney ... he (Mr Gilder) proposed that the company (Nugan Hand Ltd) suspend operations until the financial state of Nugan Hand Ltd had been clarified ... 
Mr Gilder told the Court that Michael John Hand then spoke for about 20 minutes   .. saying that they (Nugan Hand Ltd) must stay in business ... that (if not) his (Mr Gilder 's) wife would suffer greatly ... and that she (Mr Gilder 's wife) would be mutilated and send to him (Mr Gilder) in packages ...
Michael John Hand had also said that his (Gilder's) picture was well known in South East Asia and that he (Gilder) should also fear for his family too ... 
Mr Gilder said Michael John Hand/Fuller repeated several times. .  that he had received death threats   . .. as a result the suggestion that trading (in Nugan Hand Ltd)
 was not discussed further ...
The now missing Director and Part Owner of the failed Nugan Hand Bank ... Michael John Hand/Fuller ... told employees that he had received death threats ... and that he (Michael John Hand/Fuller) expected to be killed within the next 24 hours ....
A witness told the Committal Hearing of a conspiracy case yesterday ..
 the witness Mr Jeremy Mackenzie Gilder of Moruben Road, Moiman ... was giving evidence at the Sydney Court of Pretty Sessions in Phillip Street at the Committal Hearing of Nugan Hand Bank's secretary, Patricia Mary Swan, and Nugan Hand Bank's solicitor, Michael John Moloney (now known as Lennard Keith Knight) ... who have been both charged with conspiring to pervert the course of justice  . .. with contravening Sections 174 and 179A of the Companies 
Act   ... and falsely swearing oaths relating to the disappearance of documents belonging to the Nugan Hand Group of Companies ... in answer to questions from Mr   ..  
... Mr Gilder then gave evidence ...
".. about the use of a Hi Ace Van used to transport cartons containing files from the offices of the late Frank Nugan ... out of the offices of the Nugan Hand Group ... 
Mr Gilder said that the defendant Swan helped pack the files and papers in Mr Nugant's Office into cartons.  ... along with himself, Hand, Moloney, Mr Stephen Hill (former director and company secretary of Nugan Hand Ltd), Admiral Yates, Mr George Shaw and possibly Mr Quentin George...
Mr Gilder said that he saw the van the following day. ... and the cartons were no longer inside the van ...
Mr Gilder told Mr I.S. Ward QC acting for the defendant Michael John Molony (known as Lennard Keith Knight) ...that he ( Gilder) had never been in any discussions about whether the Nugan Hand Group of Companies had anything to hide or the documents and files belonging to the Nugan Hand Group should be secreted or distoroyed ...
Mr Gilder also gave evidence concerning the Nugan Hand Solicitor, Michael John Moloney's position in the Nugan Hand Group of companies.
Mr Gilder said that he first met the Nugan Hand Solicitor, Michael John Moloney/Knight, at the Sydney Airport on Tuesday, January 29th, 1980 ...when he (Mr Gilder) went out to the Sydney Airport to collect Michael John Hand/Fuller ....
Michael John Hand/Fuller was returning to Sydney after the death of his partner to collect Francis John Nungan, on Sunday January 27th, 1980. 
Mr Gilder stated that members of the Nugan family were there and also the Nugan Hand Solicitor, Michael John Moloney (now known as Lennard Keith Knight) ...and Mr Bernie Houghton...
Mr Ward QC asked Mr Gilder if Michael John Moloney (now known as Lennard Keith Knight) had been introduced to Michael John Hand/Fuller by Mr Bernie Houghton .... Mr Gilder said ... "...quite possibly..." ...
Mr Gilder then drove Michael John Hand/Fuller and Michael John Moloney (now known as Lennard Keith Knight) back to Sydney .... it was hard to say whether Hand and Molony knew each other before that day.
At the meeting in the Nugan Hand Offices om Tuesday January 29th, 1980, Hand had said the principle of the group, should follow Moloneys instructions ... the hearing continues..


Merchants of Menace review: What really went on with the Nugan Hand Bank swindle

DECEMBER 16 2015- Wayne Grogan

Merchants of Menace: The True Story of the Nugan Hand Bank Scandal
PETER BUTT
BLACKWATTLE PRESS, $29.99

 

http://www.smh.com.au/entertainment/books/merchants-of-menace-review-what-really-went-on-with-the-nugan-hand-bank-swindle-20151214-glmzy4.html

 



Merchants of Menace by Peter Butt traces a negative space of deep politics. Photo: Supplied

 

The recent discovery by documentary maker Peter Butt that Michael Hand was living in Idaho reawakens the mystery of the Nugan Hand Bank, a CIA front that stole more than $50 million from investors in arguably Australia's greatest criminal conspiracy.

In 35 years since escaping Sydney, all that has been revealed about Hand is his drug-running modus operandi, via the exposed work of CIA clone Ollie North. But Hand was the prototype "action officer".

Butt's book about the bank's operations, Merchants of Menace, traces a negative space of deep politics, where a rogue club can access a secret global network to implement illegal programs and remain outside any government overview.

With pinning clarity, Butt also accounts for Hand's undercover mission in Angola. Using Frank Nugan in Sydney to shelter the money flow, Hand delivered weapons to the white buffer states of Rhodesia and Mozambique. Any stifling of communism was fine with Hand. 

Hand also loved killing commies. We get a close-up of his fearsome Vietnam exploits in interviews with Douglas Sapper, a combat buddy from the days of Special Forces training. Sapper, an admirer of Hand but sharp on the folly of his appetites, became a Nugan Hand fixer and occasional soldier of fortune. He is a reliable narrator, cynical enough to be unaffiliated and real enough to let the truth breathe.

In using Sapper's confessional detail to counterpoint a documentary timeline of the bank's crimes, Butt gives the reader an intimate seat at the conspirators' table. What shocks is the level of damage they were prepared to cause in Australia, revealed here for the first time.

Operating in such a weightless space was perfect for Nugan's lust to become the richest man in Sydney. Nugan is outlined as willing enough to do people in, and by the late 1970s heroin in Sydney had become a flood through the bank's laundering of drug-dealer profits.

In using Sapper's confessional detail to counterpoint a documentary timeline of the bank's crimes, Butt gives the reader an intimate seat at the conspirators' table. What shocks is the level of damage they were prepared to cause in Australia, revealed here for the first time.

Operating in such a weightless space was perfect for Nugan's lust to become the richest man in Sydney. Nugan is outlined as willing enough to do people in, and by the late 1970s heroin in Sydney had become a flood through the bank's laundering of drug-dealer profits.

To the cold eye of Bourbon & Beefsteak owner and CIA point-man Bernie Houghton, sketched like someone with a dead heart, Nugan was an accident waiting to wreck everything. 

The good timing of Nugan's death is the other big mystery accorded fresh eyes and more detail here. Overwhelming pressures – suspicious heavy criminals, advanced alcoholism and deteriorating control over the bank's fraudulence – pushed Nugan to get religion. It's moot whether or not the Spirit moved him towards redemption, but he did start to protest the bank's darkness to his machiavellian American friends. 

Interest now lies in an explanation from the found Hand. What's likely is the blankety-blank of US "national security".

Wayne Grogan's 2008 novel, Heavy Allies (Brandl & Schlesinger), is about the Nugan Hand Bank.

AUSTRALIA SUPSPECTS BANK LINK TO C.I.A.

Special to the New York Times

Published: November 13, 1982

http://www.nytimes.com/1982/11/13/business/australia-supspects-bank-link-to-cia.html

SYDNEY, Australia, Nov. 12— Australian detectives are expected to visit the United States and Southeast Asia in the next few weeks as they attempt to determine whether the failed Sydney-based Nugan Hand Merchant Bank was involved in trafficking in heroin and covert activities of the United States Central Intelligence Agency.

Under particular scrutiny will be the work carried out for Nugan Hand by retired United States Government officials and military officers between 1977 and 1980, when one of the bank's founders, Frank Nugan, was found shot dead and the other, Michael Hand, vanished. The bank collapsed following Mr. Nugan's death.

In a report released earlier this week, the Australian Government said it had uncovered evidence of a link between the C.I.A. and Nugan Hand. The report, heavily censored because the Government thought publication might inhibit the investigations, was made by police studying the possible involvement of the bank in drug trafficking.

The report said Mr. Hand, who was born in New York City, and a Nugan Hand associate, Bernard Houghton, a 62-year-old Texan who was the bank's representative in Saudi Arabia, had a background in American intelligence before they arrived in Sydney in 1967.

Mr. Hand, who became an Australian citizen in 1979, is believed to be in the United States, the report said. A 'Strong Inference'

The police report said of Mr. Hand: ''His business activities in the late 1960's and the early 1970's with members of the C.I.A.- controlled airline, Air America, and C.I.A.-connected Continental Air Service, and Agency for International Development led to the strong inference that Hand's intelligence activity was with the C.I.A.

''There is some evidence to suggest that Hand retained his U.S. intelligence ties through the 1970's and probably into the 1980's. Houghton was associated with U.S. intelligence personnel in Southeast Asia and Australia, and had some type of association with personnel in the Australian security and intelligence organization.''

Kevin Newman, Australia's administrative services minister, said in a statement that senior American officials had assured him that the C.I.A. had no involvement in the bank. The report said it was not drawing conclusions about C.I.A. involvement with the bank, and its only recommendation was that further investigation was warranted.

(In Washington Friday, a spokesman for the Central Intelligence Agency said it was his understanding that the Australian investigation had turned up new information suggesting C.I.A. involvement in the bank. But, said Dale Petersen, the spokesman for the agency, ''We've checked everything and have found no linkages.'')

The censored part of the report is believed to discuss links between Nugan Hand and organized crime, establishing that the bank was involved in heroin smuggling. Millions of Dollars Transferred

Among the deletions were nearly two pages following the heading, ''The unfinished investigation. United States personnel involved.''

Almost 40 pages of the 240-page report were devoted to Mr. Houghton. The report said that when Mr. Houghton ran the Saudi Arabian office, the bank transferred millions of dollars out of Saudi Arabia. The money has yet to be traced.

Many pages relating to Mr. Houghton were deleted. The sections include ''The destruction of Nugan Hand records;'' his meetings in 1979 with a former C.I.A. operative, Edwin P. Wilson, who was recently arrested in the United States and charged with exporting explosives to Libya to help train terrorists, and one headed, ''Houghton and two Australian clients of Nugan Hand - a case of fraud?'' Colby Is Named

The report included a list of Americans who worked for Nugan Hand. Among them were Rear Adm. Earl Yates, U.S.N., retired, the first president of Nugan Hand International; William E. Colby, Director of Central Intelligence from 1973 to 1976, who worked as legal adviser to Nugan Hand International after 1979; Walter McDonald, former economist and oil expert at the C.I.A., who joined Nugan Hand International in 1979 as a consultant; Brig. Gen. Edwin Black, U.S.A., retired, the bank's representative in Hawaii; Lieut. Gen. LeRoy Manor, U.S.A.F., retired, the Nugan Hand representative in Manila; Dr. Guy Pauker, a consultant to Nugan Hand International, and Dale Holmgren, the bank's Taiwan representative, who was an Army officer in Taiwan.

Apart from the police investigations, a Royal Commission on drug trafficking is also looking into activites of the Nugan Hand Bank.

Illustrations: Photos of figures in the scandal of the Nugan Hand Merchant Bank






Secret War in Laos Documentary Film: Laotian Civil War and U.S. Government Involvement

The Film Archives

https://www.youtube.com/watch?v=R0t1AZXRogU&app=desktop

Published on Aug 27, 2012

The Laotian Civil War (1953--75) was a fight between the Communist Pathet Lao (including many North Vietnamese of Lao ancestry, and the Royal Lao Government in which both the political rightists and leftists received heavy external support for a proxy war from the global Cold War superpowers. Among United States Central Intelligence Agency Special Activities Division US and Hmong veterans of the conflict, it is known as the Secret War.[8]

The Kingdom of Laos was a covert theatre for battle for the other belligerents during the Vietnam War. The Franco--Lao Treaty of Amity and Association signed 22 October 1953, transferred remaining French powers -- except control of military affairs -- to the Royal Lao Government -- which did not include any representatives from the Lao Issara anti-colonial armed nationalist movement[9] — and otherwise establishing Laos as an independent member of the French Union.[10]

The following years were marked by a rivalry between the neutralists under Prince Souvanna Phouma, the right wing under Prince Boun Oum of Champassak, and the left-wing Lao Patriotic Front under Prince Souphanouvong and future Prime Minister Kaysone Phomvihane. A number of attempts were made to establish coalition governments, and a "tri-coalition" government was finally seated in Vientiane.

The fighting in Laos involved the North Vietnamese Army, American, Thai, and South Vietnamese forces directly and through irregular proxies in a battle for control over the Laotian Panhandle. The North Vietnamese Army occupied the area for use as the Ho Chi Minh Trail supply corridor and staging area for offensives into South Vietnam. There was a second major theatre of action on and near the northern Plaine des Jarres.

The North Vietnamese and Pathet Lao emerged victorious in 1975, as part of the general communist victory in Indochina that year.

http://en.wikipedia.org/wiki/Laotian_...

Category Education


Welcome to the Sydney Crime Museum, 
the history site of a city founded by criminals.

The Nugan Hand Connection- the Sydney Crime Museum

http://www.sydneycrimemuseum.com/crime-stories/the-nugan-hand-connection/

Merchant banker Frank Nugan viewed the world of high finance like a game of chess. For every move there was always a countermove — until checkmate. If outmanoeuvred when actually playing chess, he would sit back imperiously and utter his favourite saying: ‘so I’m in a corner. So what?’ If he lost he was eager to play again, to try to win another game.

But checkmate came for Frank Nugan on a lonely road west of the Blue Mountains, near Sydney, early on the morning of Sunday, 27 January 1980. A passing police patrol car found his body slumped across the front seat of his white Mercedes sedan. His right hand rested neatly on the butt of a .30 mm rifle, his left hand on the barrel, with the muzzle centimetres away from the side of his bullet-holed head.

Later a coroner found that Nugan, crushed by the strain of walking a business tightrope, had committed suicide.

Like his merchant banking activities, Nugan’s death at first appeared a mystery. There was suspicion that he may have been murdered, but the weight of evidence does point to suicide. An audit of the Nugan Hand Bank books was due within a week and Frank Nugan knew his global billion-dollar empire would be exposed for what it was — an empty sham.

During those last few weeks, Nugan’s behaviour became more frenetic. Already facing conspiracy charges resulting from alleged irregularities in the affairs of a fruit- and vegetable-packing company run by his brother Ken, he now also faced a forced admission of failure and, more shattering, allegations that he had plundered millions of dollars of clients’ funds.

Two days before his death, at least one director threatened to resign unless Nugan could produce securities to match depositors’ funds.

An immensely proud man with an obsession for appearances, Nugan was told he would have to put up his Vaucluse mansion and other assets. He replied: ‘I may as well shoot myself.

Both Nugan and his partner, Michael Jon Hand, who has disappeared, turned to religion as their problems grew. Nugan believed that, all else having failed, he could get God onside. Inside the cover of a pocket edition of the New Testament and Psalms found on his body, he had written: ‘God is our partner — GNH and Co. Isaiah 41.10’. GNH apparently meant God, Nugan, Hand and Co.

The extraordinary cast of people associated with the bank — from a former head of the CIA to prominent members of the Sydney underworld — Nugan’s death, the coroner’s inquiry, the sensational collapse of the bank and Hand’s disappearance have aroused tremendous interest and comment. But so far little information has come forward which explains these events fully.

Days before his death, Nugan went to communion at St. Andrew’s Cathedral, Sydney, where other communicants noticed him sitting by himself, weeping quietly.

Nugan had befriended a lay preacher, Paul Owens, who would often receive a call to go to Nugan’s Macquarie Street office to pray, or spend time with him after morning church services which Nugan attended sometimes three times a week. Once, he confided to Owens: ‘Paul, I’m working my guts out and I just don’t seem to be getting anywhere’.

Owens gave Nugan a Bible, inscribed ‘To Frank from your friend Paul. Mathew 16 — Lo, I am with you always’.

The coroner, Mr Derek Hand SM, found that Nugan had committed suicide because of an ‘accumulation of strain’ which had pushed him beyond breaking point. The inquest had been told of ‘gross and systematic defalcation of gargantuan proportions’.

However, at the inquest, Michael Hand claimed that the prospect of being discovered would not have caused him to commit suicide. ‘I don’t believe he could have given up the ship . . . Frank Nugan was a fighter and I do not believe he would have taken his own life’.

The Nugan Hand Bank was involved extensively in drug activities, including the laundering of drug money.

The explanation for this lies in Frank Nugan’s ambition to make $100 million. To achieve this end he believed the bank would grow quickly with the right ‘front’ — connections with prominent people. He flaunted success in the firm belief — common to many self-made men — that the appearance of success breeds success.



AFR Review Illustration by Michael Fitzjames - The Devil with an apple


Nugan luxuriated in a chauffeur-driven Mercedes, a yacht and his water-front home at Vaucluse.

These trappings were immensely important to him and were reflected in his remarkably gauche suggestion to a Financial Review journalist in 1978: ‘Any time you want to be picked up in front of the Herald (the Sydney Morning Herald) building by the driver and the Merc, just give us a hoy and I’ll send him straight around. That’ll show your mates you’re cutting it with the big time’.

But even though Frank Nugan was unreliable, pushy and boastful, people liked him. The fact that his insecurity and vulnerability were so close to the surface gave him curious charm and appeal. As he said: ‘I’m just a poor Spanish boy battling to make a quid’.

One former employee said: ‘It was quite a sight to see Frank at the end of a day, in full flight, with the best part of a bottle of Johnny Walker Black Label under his belt, cursing his enemies, giving his views on the state of the world or seeking advice from colleagues on how best to tackle his problems — advice which he rarely had the patience to hear all the way through’.

On the other side, the decade of the Nugan Hand Bank paralleled the explosion of illegal drug trafficking into Australia and the increasing financial sophistication of organised crime in Sydney.

Francis John Nugan, the son of immigrant parents from Valencia, Spain, was born in Griffith, NSW, where his father set up his own fruit-packing and distribution business. Frank and his brother, Ken, did well at school and went to Sydney University. Ken graduated in economics and took over the running of the family fruit-packing business.

Frank finished law and, following a stint with the prominent Sydney firm of Dawson Waldron as an articled clerk, gained a Masters Degree in Law at the Berkeley campus of the University of California. From there he began studying for a doctorate in Canada and, though he never completed the degree, years later he would on occasion introduce himself as ‘Dr Nugan’.

Returning to Australia in 1968, aged twenty-six, Nugan spent a year with Freehill, Hollingdale and Page, a large Sydney law firm. Lured by the mining boom, Nugan helped to float Meekatharra Minerals, capitalising his investment after the shares moved from 10 cents to $7.

Flush with his first million, Nugan met Michael Jon Hand. A year older, Hand was a forestry graduate from Syracuse University in New York State and had served as a Green Beret in the US special forces in Vietnam. According to contemporary reports, Hand was one of six survivors of a 200-member unit which held out against 1200 North Vietnamese at Dong Xoai, 135 kilometres north of Saigon, in one of the first major battles of the Vietnam War. He was awarded America’s second highest gallantry award, the Distinguished Service Cross.

In 1969, Hand established a local company, Australasian and Pacific Holdings Ltd, ostensibly to promote tourism and business in the Pacific area. Shareholders included four other Americans — Grant Walters, Robert Petersen, David Houston and Spencer Smith — who all gave as their address the San Francisco office of Air America, since identified as a CIA-controlled airline used for clandestine operations in Vietnam and Laos.

Hand introduced Nugan to some associates whose names have since cropped up in the various royal commissions established to investigate organised crime in NSW and the State’s burgeoning illicit drug trade.

In 1970, Nugan and Hand formalised their relationship by establishing Yorkville Nominees Pty Ltd, an investment advisory company. Three years later they launched Nugan Hand Ltd as a public company, with paid-up capital of $1 million, increased to $2 million four years later.

The new venture was established as an investment banking firm and took over the clients and business developed by Yorkville Nominees.

After less than twelve months, the two expanded to Asia and established Nugan Hand [Hong Kong] Ltd, although it was not until 1976 that they registered the company with the Hong Kong Commissioner of Banking as a deposit-taking company. At the same time, the Nugan Hand Bank was incorporated in Grand Cayman, a British dependency and offshore tax haven in the West Indies.

The Cayman operation was established soon after another venture, the Castle Bank, had been forced to close following revelations that it had been used as a conduit for CIA funds used in undercover operations. According to the Wall Street Journal, the US Internal Revenue Service also found evidence that the Castle Bank had been used for tax evasion by American organised crime.

An investigation by Internal Revenue was abandoned, according to the paper, after the CIA intervened on the grounds that the probe could jeopardise national security. The head of the CIA at that time was William Colby, who subsequently became a legal representative for Nugan Hand in Washington.

However, so far no link has been made between Colby’s CIA role and his legal appointment.

In 1978, Nugan Hand acquired control of the small F. A. Neubauer Bank in Hamburg. The bank now had branches in Sydney, Hong Kong, the Cayman Islands and Germany, operating under the umbrella of a master company, Nugan Hand International, headquartered in Singapore.

Representative offices were also established in Malaysia, the Philippines, Thailand, Taiwan, Saudi Arabia, Panama, Chile, Argentina, Britain and the US.

Nugan modelled his operation on the secretive banks which handled the private affairs of wealthy clients in 18th century Europe.

Once clients passed money to the bank they were identified solely by a numbered code. Frank Nugan and Michael Hand had their own numbers — 536 and 537. A tiny red dot alongside the code indicated a sensitive client.

A special code was used for money transfers between Sydney and overseas offices, ‘hides’ being used for Australian dollars, ‘latest’ for US dollars, ‘glassware’ for Singapore dollars, ‘radies’ for gold, ‘televisions’ for silver, and ‘raw material’ for cash.

On the surface, Nugan Hand operated the same as any other merchant bank — accepting deposits, re-investing the money, arranging the transfer of money and advising on takeovers. According to bank publicity, it concentrated on the short-term money market. However, the generous rates — offering interest on depositors’ funds three or four per cent higher than ruling rates — was one of the initial reasons for rousing the suspicions of other bankers who speculated openly that Nugan Hand was not engaged in legitimate activities.

Since the collapse of the bank, it has become apparent that much of the money was not re-invested but simply disappeared. On the surface it was all accounted for, but Nugan, in fact, was playing the oldest commercial trick — robbing Peter to pay Paul.

The fiction was developed through the employment of prestigious ‘front’ staff and extraordinary publicity. In 1976, the bank’s Australian turnover was claimed to be $26 million. A year later, according to bank handouts, it had increased eightfold to reach $220 million. Less than twelve months later, Nugan was proclaiming it had passed $1000 million.

However, it was not until late in 1977 that Nugan Hand [Hong Kong] Ltd, supposedly the bank’s biggest money-spinner, secured its first deposit of $1 million. This inclusion gave the group such a boost that Nugan telexed his congratulations and gave the local representative, Leslie Collings, a directorship and salary of $50000 a year. Shortly afterwards, eyebrows were raised in the Hong Kong banking fraternity when it was reported in a radio news broadcast that the group had accepted a deposit of $700 million. The true figure was $700000.

Bank staff in Hong Kong witnessed little first-hand evidence of the billion-dollar turnover. What money they did see arrive was transferred quickly to Sydney, Singapore or the Cayman Islands. The balance sheet for the Hong Kong office at the end of December 1977 disclosed the holding of only $953 903 in deposits.

Although the transactions confused official investigators, the process of one particular deposit in Sydney, unearthed by my investigations, provides an insight into the operations of the bank.

A Sydney security firm, K. & R. Cash, was called to Nugan’s office to deliver a large amount of cash to the South Hurstville branch of the Commercial Bank of Australia. Once the cash was deposited, cheques were made out at Nugan’s direction. For one consignment of $350000 — $300000 in $50 notes and $50000 in $20 notes — Nugan directed K. & R. Cash to make out two cheques in favour of F. J. Nugan. One, dated 4 November 1977, was for $250000 and the other, dated 7 November, was for $100000.

When K. & R. Cash had deposited $109000 for Nugan Hand with the CBA Bank seven months previously — on 4 April 1977 — it had made out the cheque to Nugan Hand. On presentation to the bank, the cheque had been changed, with Nugan Hand altered to Yorkville Nominees Pty Ltd, Frank Nugan’s private company. Other cheques covering deposits for similar amounts were changed in the same way. Thus Yorkville Nominees became the major conduit for the extraction of funds placed with Nugan Hand companies.

It has been discovered that, through Yorkville, Nugan took $500000 to buy his mansion in Coolong Road, Vaucluse, at least $400000 to remodel and furnish it and an estimated $900000 to mount a defence against charges involving his brother Ken’s fruit- and vegetable-packing company at Griffith.

Frank and his brother Ken, along with two ex-NSW detectives Fred Krahe and Keith Kelly, were charged in May 1978 with conspiracy to defraud the Nugan Group Ltd, the family fruit and vegetable empire at Griffith. The charges against Krahe and Kelly were later dismissed, but a magistrate found that a prima facie case existed against Frank and Ken Nugan. Final hearings against the brothers were scheduled when Frank was found dead. Ken Nugan was subsequently convicted and served a gaol sentence.

The remarkable lack of interest in the fate of much of the money lodged with the bank has been attributed by official investigators to the fact that much of it was ‘black’, or obtained illegally.

The involved financial transactions apparently did not stop after Nugan died. Among other deposits under claim in Hong Kong is one for $HK1250000 accepted from Whitehall Finance on 28 January 1980 — the first business day after Nugan’s body was discovered.

Lodged with the group for investment at short notice at an interest rate of 14·75 per cent, it was apparently transmitted from Hong Kong to the Cayman Islands. According to Mr Mike Woollard, a banking expert in the Official Receiver’s Office in Hong Kong, Nugan Hand’s Hong Kong operation acted merely as a ‘conduit of funds for the Cayman Island company’.

In a ‘strictly private and confidential’ report tendered before the Hong Kong Supreme Court by the Colony’s Financial Secretary, Mr David Jefferson, it is disclosed that no record of some deposits existed in company books.

However, to impress and maintain appearances, both Nugan and Hand promoted political connections. As the Washington Post has reported, Nugan arranged to be photographed with President Jimmy Carter. In the Philippines, he befriended President Marcos and in late 1970s the bank hosted an international congress on new enterprises in Manila, Nugan outlaid $75 000 on one Manila ‘bash’ — hiring helicopters to fly in guests from surrounding islands. He announced he was working out details of loans for Filipino firms amounting to $200 million but nobody could explain where the money was coming from.

In another incident involving the bank’s office in Thailand, elaborate arrangements were made to ship about $100 million in gold out of Bangkok. As a former employee relates the story, the deal was arranged through a contact of Imelda Marcos, wife of the Philippines President. Nugan Hand’s Hong Kong office sent an armed van to the Hong Kong airport to take delivery of the expected shipment but it failed to arrive.

Throughout 1977 and 1978, the bank maintained an office not only in Bangkok but also in Chiang Mai, at the heart of the Golden Triangle, the notorious source of much of Asia’s heroin, which lies at the meeting point of Burma, Thailand and Laos. Curiously, its Chiang Mai office was next door to the office of America’s Drug Enforcement Agency.

Nugan Hand’s man, Neil Evans, and DEA’s man, Chuck Wilson, answered each other’s phones and played cards together.

Suspicions about the bank’s involvement in laundering drug money were privately voiced for years and can now be supported in some detail. Police found on Nugan’s body a 15-page list of 194 names of companies and individuals. The money mentioned in the list amounted to several million dollars. Various names were repeated and next to them were comments such as ‘uncollectable’, ‘nil’ or ‘paid in’. Fearing the approaching bank audit, Nugan apparently had prepared the list in a desperate bid to call up funds.

Names in the list included Reg Parkin, gaoled with former NSW policeman Murray Stewart Riley over the much-publicised importation of $46 million worth of buddha sticks from Thailand in the yacht Anoa in 1978. Two references were made to a Ken Dooley — an alias for Kenneth Derley, also convicted with Riley over the Anoa deal. James Randolph Sweetman, who also appears in the list, was convicted in 1970 with Stanley John Smith, better known as ‘stan the Man’, over the attempted sale of amphetamines following a haul from a May & Baker warehouse in Sydney.

Riley and Dooley were observed by authorities entering Nugan Hand’s Sydney office, yet the former denied to the NSW Woodward Royal Commission on drugs that he had any dealings with Nugan Hand. Riley had extensive dealings with the bank in both Sydney and Hong Kong. On his first visit to the Hong Kong office he called himself ‘Mr Murray’ and on his following visit ‘Mr Riley’. When asked what his real name was he replied that it was both, if put together. Riley finally became so well known to the staff that he was given the nickname ‘Mr Blue Eyes’.

Parkin is also remembered well by the bank’s former Hong Kong staff. He left a printed calling card. On his first call, he is believed to have collected $8000 transmitted from Sydney.

On a subsequent visit, he discussed the purchase of a boat with Hand. The Sydney office arranged the transaction of $18000 to Hong Kong for the purchase of a boat — a twin-diesel motor cruiser known as ‘Mashkee Two’. Parkin told the royal commission he had never met Nugan but when the Hong Kong staff refused to advance him money for the boat without authority, he said: ‘I’ll go down to Sydney and see Frank’.

These anecdotes reflect the schizophrenic nature of the operation. At one end there was a legitimate bank with honest, dedicated employees; at the other, a secretive structure designed to work outside the law. As one former employee put it, ‘It often seemed that there were two distinctive operations — the fledgling merchant bank with all its ancillary services, and Frank’s activities, about which little was known’.

The mystery surrounding Nugan continued after his death. At his funeral, as the body was lowered into the grave, Hand turned to an associate and said: ‘I could have sworn I heard the bastard laughing at me’.

from Connections 1 by Bob Bottom

Illustrations by Michael Fitzjames


Frank Nugan  - Background

http://www.sourcewatch.org/index.php/Frank_Nugan




Frank Nugan

Frank Nugan and Michael Jon Hand/Fuller

Frank Nugan "was born in Griffith in 1942, the son of a Spanish migrant who started a fruit packing business there. The playboy heir to a modest food processing fortune, Nugan got a law degree in 1963 from Sydney University and a Master of Law from Berkeley University in 1965. After working in Canada, he returned to Australia in 1968 and met Bernie Houghton and Michael Hand with whom he established a number of companies, including the Nugan Hand Bank. By the late 1970s, Frank Nugan was calling himself ‘one of the wealthiest men in Sydney’. He drove a gold Mercedes and lived in a million dollar mansion in Vaucluse with a harbour view and its own beach. Half owner of the Nugan Hand Bank, at its prestigious 55 Macquarie Street address, he shared offices overlooking Circular Quay with Sir Robert Askin, recently-retired Premier of New South Wales.

"Askin and his powerful circle were Frank Nugan’s sponsors. Admiral Yates, the President of Nugan Hand Bank, said he accepted the position as Nugan Hand president on the advice of Sir Robert Askin. Admiral Yates said he trusted Askin’s opinion about the bank principals, Frank Nugan and Michael Hand, because Askin knew them well and shared an office with them. Yates said: ‘I inquired of Sir Robert Askin, who had a private office at 55 Macquarie Street with them, and he gave them very strong credentials’. Yates said Askin had told him Nugan and Hand were ‘good solid business people — a little flamboyant, but that was because they were so successful’.

"Nugan touted his skills as a tax consultant and a financial adviser, but his genius lay in deception. Secret accounts were his trademark, and he was gifted at losing money in elaborate deceipts, scattering cheques to create bewildering paper trails. Stewart, in his report into the Nugan Hand Bank, had a diagram of one $30,000 diversion of funds from the Nugan Hand Bank to the Nugan Group in Griffith which Frank Nugan sent through eleven transactions between the source (the Nugan Hand Bank) and its destination in the Nugan Group.

"The Nugan Group, Frank Nugan’s family company, began in 1941 in a primitive shed in Banna Avenue in Griffith, packing fresh fruit and vegetables. By 1977 the Nugan Group was valued at $11 million; it operated a major 5 acre factory complex in Griffith and ran factories in Casino, Lismore and Brisbane. It was one of Australia’s major fruit juice producers, and the largest proprietary fresh fruit and vegetable packers and distributors in the country." 

"Frank attended Griffith High School, the University of Sydney (LL.B., 1964) and the University of California at Berkeley (LL.M., 1965), United States of America. After spending some years in Canada, he returned to Sydney in 1968. He was admitted as a solicitor on 22 November and set up practice. In New York on 23 May 1970 he married Charlotte Lee Sofge, who came from Tennessee.

"That year Nugan was involved, as a director (1970-72), in floating Meekatharra Minerals N.L. to mine nickel, cobalt and copper in Western Australia; its shares rose to $6.90 then fell sharply. With a New Yorker named Michael Hand, Nugan engaged in land-deals and share-trading. In 1973 they set up a merchant bank, Nugan Hand Ltd, with a nominal paid-up capital of $1 million. Between 1976 and 1979 'turnover' reportedly rose from $30 million to $1000 million; the bank opened offices to accept deposits in Hong Kong, Singapore, the Cayman Islands and Saudi Arabia...

"Meanwhile, his elder brother Kenneth had expanded their father's firm, the Nugan Group Ltd, into one of Australia's largest fruit and vegetable distributors; Frank was one of its directors. In 1978 he, Ken and others were charged with conspiracy to defraud the Nugan Group." 

                                                                                    


More CIA Treachery: Nugan Hand Bank

NuganHand_Crimes-of-Patriots-Jonathan-Kwitny

Nugan Hand Bank Laundering money  for major illegal drug dealers and a front for the CIA

to move illegal drugs, arms dealing, money laundering,

tax and other fraud, paying off assassins, murderers for hire and paying off people

and to influence the outcome of state and federal elections in Australia and around the world

Editor’s Note: I posted the below article at the American Patriot Friends Network way back in 2003 Part 1 Here; Part 2 Here), and have re-posted it elsewhere over the years. This latest version of the selected excerpts from Alfred McCoy’s masterpiece on the CIA’s dope dealing escapades is more complete than previous postings. Professor McCoy’s book is “The Politics of Heroin: CIA Complicity In The Drug Trade”.  (See below)

But first a word about the book pictured above: Jonathan Kwitny was sent by the Wall Street Journal to Australia to cover a breaking story about one of the CIA;s drug-smuggling, money-laundering, and arms dealing proprietaries, a bank named Nugan Hand, Ltd. Mr. Kwitny gave us the “story behind the story” regarding the Iran-Contra scandal which disgraced the Ronald Reagan White House. His coverage of the Australian government’s investigation of the Nugan Hand Bank, Ltd, led to the free wheeling dope-dealing escapades of the CIA’s drug dealing, arms trafficking, and money laundering at a larger CIA proprietary bank named BCCI, which the U.S. Senate investigated.

I have typed in passages from pages 461-472 in Alfred W. McCoy’s bombshell book, “The Politics of Heroin: CIA Complicity In The Drug Trade“, (published by Lawrence Hill Books, Chicago, by arrangement with Harper and Row, Publishers, Inc., New York; ISBN: 1-55652-125-1; this is the second edition, copyrighted by Alfred W. McCoy 1991; first edition copyrighted by Alfred W. McCoy and Cathleen B. Read, 1972.)

Nugan Hand_Politics of Heroin



 The Politics Of Heroin -

CIA Complicity In The Global Drug Trade by Alfred McCoy

Nugan Hand Bank

At 4:00 a.m. on January 27, 1980, a state police officer patrolling a country road west of Sydney, Australia, noticed a late-model Mercedes sedan parked by the side of the road and stopped to examine it. Inside the constable found the body of a middle-aged male slumped forward, still holding the rifle he had apparently used to shoot himself in the head. Searching his wallet, the police found personal identification for one Frank Nugan, a merchant banker of Sydney, and a calling card from one William Colby, a New York lawyer who had recently retired as director of the U.S. Central Intelligence Agency.

The circumstances of Nugan’s suicide and the bank’s spectacular collapse only six months later have inspired hundreds of press probes, three major Australian government investigations, and a lengthy book by one of America’s best investigative reporters. All have asked the same basic question: What was the relationship between the Nugan Hand Bank and the CIA? Although we have more details about the bank than about any other company with similarly ambiguous CIA connections, the question still defies a concise answer. The Nugan Hand Bank remains a great espionage mystery.

Although the large question about the bank and the agency will probably never be answered, Nugan Hand’s twisted history does offer insights into the world of CIA espionage—in particular, that gray area of alumni, allies, assets, and affiliated companies that do so much of the agency’s covert work. In his memoirs and public statements, William Colby has portrayed his CIA colleagues as “honorable men”, patriots who simply would not, could not tolerate any involvement in drugs by either agency personnel or covert assets. Whatever it may or may not have been, the Nugan Hand Bank was certainly two things: (1)an employer of many retired CIA agents and (2) heavily involved in narcotics trafficking. Unlike most of the agency’s faceless espionage, the carefully documented Nugan Hand case affords a close look at the moral universe of covert operations, particularly the gray sector of CIA proprietaries and affiliates. The Nugan Hand case shows how the CIA’s secret war in Laos, interwoven with the tribal opium trade, produced a covert action cadre with a tolerance for drug dealing.

The Nugan Hand Bank served several constituencies simultaneously, and its various relationships reveal a good dal about the operations of this clientele. Based in Sydney, the bank was a partnership between Australian lawyer Frank Nugan and an ex-Green Beret businessman named Michael Hand. Both worked closely with one of their senior managers, a mysterious American expatriate with impeccable intelligence contacts, Maurice Benard Houghton. Through the three men and their separate, sometimes overlapping networks, the bank cultivated corrupt Australian politicians, Sydney crime syndicate, a fraternity of ex-CIA arms dealers, and the U.S. Central Intelligence Agency.

In less than a decade after its incorporation in Sydney in 1973, Nugan Hand Limited went through a complete cycle from modest origins to spectacular global expansion to precipitous collapse. During its eight-year life, the bank’s character was shaped by its three principals. Son of a Spanish migrant fruit packer, Francis Nugan grew up in Griffith, New South Wales, in the country west of Sydney, graduated in law from Sydney University, and did some spotty postgraduate legal studies in California and Canada. Nugan would later claim that he played a major role in rewriting Canada’s tax law while studying abroad, but records show that he was employed as a minor clerical assistant. His name does appear among the twenty-seven listed in the tax review’s final report. While his brother Ken built the family produce business, the Nugan Group Limited, into one of Australia’s largest, Frank practiced law in Sydney without much success in the late 1960s. Stripped of his inflated credentials, Frank Nugan was known to be an abrasive alcoholic, an incompetent manager, a mediocre lawyer, and a “pathological liar”.

The other founding partner, Michael Jon Hand, was born in New York in 1941, son of a senior state civil servant, and raised in the Bronx. In 1963 he finished a year’s vocational course in forestry at Syracuse University, graduating thirty-eighth among forty-nine students, and joined the U.S. Army’s Special Forces, the Green Berets. After training at Fort Bragg, he was sent to Vietnam where he won the army’s second highest decoration, the Distinguished Service Cross, for gallantry in fighting northwest of Saigon. Sometime in 1965-1966 Hand joined the CIA for two years as a contract operative fighting with Hmong guerrillas in the mountains of northern Laos. While serving with the CIA, Hand met Theodore Shackley, the agency’s Vientaine station chief in 1966-1968, and befriended a crack Air America pilot, Kermit “Buddy” King, who often flew him to remote tribal outposts. The various official reports do not mention whether Hand also met Shackley’s friend and deputy CIA station chief Thomas Clines, later a close associate of both Hand and his partner Bernie Houghton. Although Hand’s Hmong allies grew opium and shipped it to market on Air America, it is not known whether it was here that Hand acquired the expertise in narcotics that he later applied to building the bank.

Sometime in 1967 Hand finished his CIA contract and moved to Sydney, where he met American expatriate Bernie Houghton, who was then running the Bourbon and Beefsteak restaurant in the city’s Kings Cross vice district. Through Houghton and other contacts, Hand soon became involved in selling Australian real estate to Americans serving in Southeast Asia. In early 1968 the pilot Buddy King joined Hand in Australia and eventually settled with his Thai housekeeper several hours up the coast from Sydney, where their land sales were located, often flying Hand up to the property in a private aircraft for weekends. As an indication of their CIA contacts, in September 1969 Hand formed Australasian and Pacific Holdings Ltd., a real estate company whose seventy-one shareholders included nineteen people then employed by the CIA’s contract airlines in Indochina, Air America and Continental Air Services. Sometime in the late 1960s Hand met Frank Nugan and the two are believed to have shared an apartment before they both married. Crude in manner, violent in speech, and poorly educated, Hand had no banking experience and would bring little more than his cunning and covert contacts to the building of Nugan Hand Bank.

The key figure in much of the bank’s history, Maurice Bernard Houghton, is a mysterious Texan who arrived in Sydney from Southeast Asia in 1967 with an impressive list of references from senior U.S. military officers. Born in Texas in 1920, Houghton finished a semester at Southern Methodist University; served in the military during World War II; and knocked bout the country for twenty years in various jobs with no particular direction. In 1964 Houghton moved to Southeast Asia, where he remained for the next three years during the escalation of the Viet Nam war, engaged in activities that remain unclear. Australia’s Joint Task Force into the bank’s affairs reported that Houghton was “part of the intelligence community” in Southeast Asia before coming to Australia. Wall Street Journal reporter Jonathan Kwitny interviewed former U.S. intelligence officers who claimed, on the record, that Houghton was a wheeler-dealer in Southeast Asia who traded in slot machines, opium—anything.

Soon after arriving in Sydney, Houghton formed a business association with a prominent Hungarian emigre, Sir Paul Strasser, owner of one of Sydney’s leading property companies. With support from Strasser and his associates, Houghton opened the Bourbon and Beefsteak restaurant in October, 1967, just weeks before the first American soldiers began arriving on R&R leave from Vietnam. Among Houghton’s private guests at the club were the CIA’s Australian station chief from 1973 to 1975, John D. Walker; the state’s Premier Sir Robert Askin, a corrupt politician notorious for his contacts with criminal syndicates; and Abraham Saffron, Sydney’s leading gangster and vice lord of Kings Cross. Unlike his future partners, Houghton maintained excellent contacts with the most senior U.S. military and intelligence personnel in the Asia-Pacific region. His intelligence contacts were such that when here turned to Australia from a business trip without a visa in 1972, he rang the state director for the clandestine Australian Security Intelligence Organization (ASIO). The director, Leon Carter, vouched for Houghton and the American received an immediate visa. In dealing with his male friends, Houghton seems to have been a man of strong loyalties and antipathies. “I had a personality problem with Nugan”, Houghton later told the Australian Joint Task Force. “He was harsh, abrasive, arrogant and inconsiderate.” By contrast, Houghton remained very close to Michael Hand, who seemed to regard the older man as a “father figure”. Hand would eventually tire of Frank Nugan’s alcoholism and costly flamboyance, but he remained close to Bernie Houghton until the end.

In 1973, Nugan Hand Limited was born, as it would die, through a gross financial fraud. With only $80 in the company’s bank account and just $5 in paid-up capital, Frank Nugan wrote hs own company a personal check for $980,000 to purchase 490,000 shares of its stock. He then covered his massive overdraft by writing himself a company check for the same amount. Through this elementary accounting fraud, Nugan could claim that the company’s paid-up capital was a million dollars. The bank’s start also coincided with the first of many allegations of drug dealing against Michael hand. Injured in an accident, Buddy King’s Thai house-keeper met a Sydney lawyer to sue for compensation. The lawyer was, for reasons never explained, phoned the Australian Bureau of Narcotics to report that King, Air America’s former ace pilot, was flying heroin into Australia for Michael hand. Soon after his housekeeper’s lawyer made these allegations, King fell to his death from the tenth floor of a Sydney apartment building.

Over the next four years, the bank grew at a remarkable rate by providing a bridge between larger, legitimate banks and a shadow universe of organized crime, illegal money laundering, and intelligence operations. Even at its peak in 1979 with dozens of employees and a global network of offices, the bank never really made a proper profit. Most employees were not clerks or investment counselors, but salespeople who scrambled desperately to keep new deposits coming in the front door faster than the bank’s officers could take them out the back—through lavish expenses, high salaries, and simply fraud. Nugan Hand was a carnival shell game, courting depositors for cash and moving money from branch to branch to conceal one fundamental fact—the bank simply had no assets behind it.

Like many corporate confidence men, Frank Nugan and Michael Hand were obsessed with creating the illusion of propriety and prosperity. Without any capital or customers, Frank Nugan’s first act in opening the company was to lease expensive, well-appointed offices at 55 Macquarie Street, a prestigious address in the heart of the Sydney business district. Nugan hired a reputable money market manager who found that he could get an hour or two of credit every day from personal contacts in the business, just long enough to buy and sell. Although the trading incurred a real loss of $18, 373, the total volume of transactions reached $2.4 million dollars, giving the new company the aura of doing big business. As the bank grew, so did the scale of its illusions. The bank issued glossy annual reports claiming, in 1976 for example, $22 million in “total assets”, $26 million in “gross proceeds from sales of securities”, and approval of its bookkeeping by reputable auditors. A lavish promotional brochure described the bank as part of the Nugan Hand Group, “with assets exceeding US $20,000,000 and a turnover exceeding US $1,000,000,000 per annum.” Assuring potential clients “absolute security, anonymity and confidentiality”, the brochure promised customers “the utmost in personal service and attentive specialist assistance.” With what now seems wry irony, the bank offered, as a special service for valued customers, child welfare accounts that would “give faithful and attentive care and supervision to all aspects of education, health, welfare and advancement in life off the children of the beneficiary.” All of these claims, financial and moral, were knowing lies.

While Frank Nugan concentrated on courting business clients in Sydney, other associates, Hand included, took the bank abroad. The group’s first breakthrough to something approaching profit came in 1974-1975 when it opened a legal Hong Kong branch. By offering Sydney depositors a money-laundering facility for illegal transfers of Australian money to Hong Kong and reciprocally allowing Hong Kong clients a higher rate of interest for funds deposited ni Sydney, the bank began to move large funds for the first time.

As these global activities grew over the next six years, Nugan Hand Limited gradually divided, formally and informally, into two almost separate companies: the Sydney-based Nugan Hand Limited under Frank Nugan’s control and the international branches of Nugan Hand Bank, later registered as a Cayman Islands corporation, managed largely by Michael hand. As Hand grew tired of Frank Nugan’s incessant drinking and mounting legal problems, the ex-Green Beret pulled away from his Australian partner and drew Bernie Houghton into the international side fo the business. While Frank Nugan’s Sydney office concentrated on tax fraud and money laundering, the Hand-Houghton partnership led the bank’s international division into new fields—drug finance, arms trading, and support work for CIA covert operations.

During the bank’s early days in Sydney, Michael Hand had told his junior colleagues that “it was his ambition that Nugan Hand become banker for the CIA. In southern Africa during the mid-1970s, Hand, the former CIA operative, seems to have realized his ambition. At that time southern Africa was in the throes of decolonization, with guerrilla groups fighting the Portugese in Angola and British colonials in Rhodesia. When the Portuguese regime began to crumble in Angola, rival guerrilla groups turned to their great power patrons for more arms, making Angola a cockpit of cold war confrontation. As CIA covert arms shipments began flowing into Angola in 1974-1975, first to Holden Roberto and then to UNITA, Michael Hand left Sydney in January 1975 for southern Africa, where he remained for more than a year, trading in arms and munitions. During his fifteen months in Africa, Hand telexed and telephoned the bank’s Sydney headquarters repeatedly, speaking with Frank Nugan and employee, Wilhemus Hans, about shipments of pistols, helicopters, and munitions. After Nugan’s death, investigators found what appeared to be phone notes in his handwriting from this period, one of which read:

Military weapons Rhodesia

Pay in Gold

Recoilless Rifles

Morters 60/80 ml

M79 Granade launchers

Quad .50 Caliber machine guns

Although it has never been clearly established what, if any, arms were actually shipped from Australia, there is no doubt about the sincerity of Michael Hand’s intentions. In Pretoria, South Africa, Hand incorporated a trading company, Murdoch Lewis Proprietary Ltd., to take delivery of the arms shipments. At ione point Hand summoned his Sydney employee Wilhemus Hans to Africa and met him in Rhodesia for discussions about formation of a helicopter squadron for the white settlers. Hand also made frequent phone calls to another bank employee, Frank Ward, later charged with arms dealing by Australian authorities in court proceedings that remained classified. While Hand waited in southern Africa to take delivery of arms, his close friend Bernie Houghton flew to Washington DC, with two Nugan Hand employees to arrange shipments. Significantly, Houghton made direct contact with CIA agent Edwin Wilson, then working for Task Force 157, a covert action arm of the Office of Naval Intelligence (ONI). With vast profits from his contract covert operations work, Wilson had purchased Mt. Airy Farms, a thousand-acre estate in northern Virginia where he often entertained his close comrades Thomas Clines and Theodore Shackley, Hand’s former CIA superiors back in Laos who were now rising fast in the agency’s Langley headquarters. After fifteen years as a career CIA officer, Wilson had transferred to Task Force 151 in 1973 and was operating from the offices of a cover company, World Marine Inc., at 1425 K Street in Washington. It was there that Wilson would meet Houghton and the two Nugan Hand men to arrange the African arms deal.

Australia’s Joint Task force investigating the bank later learned details of the meetings from Dennis Schlachter, a World Marine employee whose evidence as a protected federal witness would lead to Wilson’s 1982 conviction for illegal arms sales to Libya. Sometime in 1975 or early 1976 Schlachter first learned of the African arms deal when two CIa agents based in Indonesia, James Hawes and Robert Moore, called on Wilson at World Marine in Washington to discuss “an African arms deal” that, in these agents’ words, “had to be put together”. Sometime later, Houghton arrived from Sydney and came into World Marine’s offices with the two Nugan Hand men to order the arms. Schlachter recalls chauffeuring Wilson and Hawes out to the agency’s headquarters in Langley while the two discussed using Nugan Hand Bank to finance the shipments. Under the “cover of Task Force 157,” ammunition, 3,000 weapons including machine guns, M-1s, carbines and others”. With an end-user’s certificate showing World Marine as the purchaser and an Australian company as the buyer, the arms left the United States from Boston for southern Africa in three separate shipments.

The Australian Joint Task Force found that Ed Wilson and Bernie Houghton were also involved in the ONI operation to transfer a highly classified spy ship to the Shah of Iran. Soon after joining Task Force 157 in 1973, Wilson had earned a $500,000 fee by delivering an earlier spy ship to Iran under the cover of World Marine. According to the witness Schlachter, in 1975 the U.S. Navy assigned Wilson to deliver another high-technology spy ship to Iran. Schlacter recalls that Houghton “was involved” in this deal, working with “funds…and…payouts”. Significantly, Australian immigration records show that Houghton flew to Iran in March 1975 in the company of a U.S. Army Colonel. Working through Task Force 157, Wilson purchased the ship and ordered it to sail from England around Africa to Iran. When some “mix-up” developed, Schlachter recalls that “Wilson flew to Iran to correct it.” Australian immigration records show that in January 1976 Wilson flew into Sydney and stayed in Australia for three days before flying on to Iran.”

After fourteen months in Africa, Michael Hand returned to the bank’s Sydney headquarters in March 1976 and dedicated his trade skills to a new constituency—Australia’s leading international heroin smugglers.After nearly fifty years without a serious narcotics problem, Australia showed signs of spreading addiction in the late 1970s as Sydney’s criminal syndicates began organizing regular heroin shipments from Southeast Asia. In a March, 1977 report, for example, Sydney’s Crime Intelligence Unit monitored a series of meetings between the city’s leading illegal bookmaker, George Freeman, and California crime figure Danny Stein: “Information was received that Stein was here for the purpose of organizing a network for the reception of heroin into this country from the Golden Triangle and for subsequent distribution on thelocal market and in the United States.”

Would-be Sydney heroin smugglers faced Australia’s stringent currency control laws that made it difficult to export the hard cash for heroin buys in Bangkok. After two years of active money laundering through Hong Kong, Nugan Hand was becoming known in the underworld as a reliable money mover. Sometime in early 1976 George “the Duke” Countis, an American crime figure who “owned” a gaming table in an illegal Sydney casino, brought Murray Riley to the headquarters of Nugan Hand Limited. A former Sydney constable, Riley had quit the police to become a “patron” in the criminal underworld and a close associate of leading criminals like George Freeman. Just back from Africa, Hand quickly developed what the Australian police Joint Task Force called “a close business and social relationship with Riley”.

Starting in April 1976, only four weeks after his arrival from Africa, Hand made five cash transfers to Hong Kong for Murray Riley totaling $295,000. After each transfer, one of Riley’s underlings would call at Nugan Hand’s Hong Kong office to pick up the money, later using the cash to take delivery of a heroin shipment. Through this procedure, Nugan Hand handled $4.3 million ni identifiable drug money for twenty-six known dealers between 1976 and 1980. Studying Hand’s memorandum to his Hong Kong office about a $60,000 cash transfer for Riley’s October shipment, the Task Force concluded “that Hand was aware that Riley was involved in significant illegal activity”. As an indication of their closeness, in late 1986, acting on Riley’s advice, Hand opened bank branches in Thailand, in the words of his Chiangmai branch manager, “to attract drug money”. Two years later, when a yacht was seized south of Sydney with 4.3 tons of high-grade cannabis and Riley was charged, Michael Hand ordered the bank’s Hong Kong office to destroy all incriminating records of Riley’s money transfers. Reviewing this period in the bank’s history, Australia’s Joint Task Force concluded: “Throughout 1976 Hand was knowingly involved in drug activity with the ‘Riley’ group in that he permitted and even encouraged the use of Nugan Hand facilities for the movement of ‘drug’ money.

In October 1976 Hand decided to leave the Sydney office to Frank Nugan and move to Hong Kong, where he could build the bank’s international division. Over the next two years, Hand worked with some success to develop a global network of twelve branches that covered Asia, Africa, and the Americas. After months of failure, Hand’s break had come in June 1976 when the Cayman Islands, a British colonial tax haven in the Caribbean, decided to charter the Nugan Hand Bank, finally giving the company the legal right to advertise itself as a “merchant bank”.

As the bank expanded dramatically in 1977-1978, Michael Hand recruited some of the most famous names in U.S. national security circles to join the bank as employees or associates. The key figure in making these contacts for Hand was Bernie Houghton, who had taken a more active role in the bank in 1976 after his bar business went bankrupt with debts of nearly a million dollars. In early 1977 Houghton recruited an old friend, Admiral Earl Yates, retired chief strategist for the U.S. Pacific Command, to serve as president of the Nugan Hand Bank. Through the admiral’s influence, a succession of such senior appointments followed:

General Leroy J. Manor, former Pentagon counterinsurgency specialist and chief of staff of the U.S. Pacific Command, manager of the bank’s Manila branch;

General Edwin F. Black, former OSS officer and commander of U.S. forces in Thailand, president of Nugan Hand, Inc., of Hawaii;

Dr. Guy Pauker, Asia expert for the Rand Corporation, a research firm under contract to the U.S. Defense Department, bank consultant.

Dale Holmgren, former chairman of the CIA’s Civil Air Transport, [a CIA proprietary airline similar to Air America], manager of the bank’s Taiwan branch;

William Colby, retired CIA director, Nugan Hand’s legal counsel.

The pattern of events surrounding this expansion indicates that Michael Hand may have realized his dream of becoming the “CIA’s banker”. Both Sydney police and Wall Street Journal reporter Jonathan Kwitny came away from their long investigations of Nugan Hand convinced that there may well have been some connection between the bank’s sudden rise and the antecedent demise of a CIA proprietary, the Castle Bank and Trust of Nassau. After retiring from the CIA, Paul Helliwell, founder of such agency “proprietaries” as SEA Supply Inc. of Bangkok and Air America, opened a law office in Miami and formed Castle Bank offshore in nearby Nassau to cover the agency’s covert money movements. In 1973 agents of the Internal Revenue Service were able to photograph the Castle Bank’s customer list while a bank executive dined in a posh Key Biscayne restaurant with a woman described as an IRS “informant”. Reviewing the purloined documents, IRS investigators found that the 308 Castle Bank customers on the list had moved $250 million to foreign numbered accounts. Depositors included Playboy publisher Hugh Hefner, Penthouse magazine publisher Robert Guccione, and some major organized crime figures—Morris Dalitz, Morris Kleinman, and Samuel A. Tucker. Eleated by the find, investigators formed Project Haven to make “the single biggest tax-evasion strike in IRS history.” Suddenly, the IRS announced that it was dropping the investigation because of “legal problems”. According to a later investigation by the Wall Street Journal, “pressure from the Central Intelligence Agency … caused the Justice Department to drop what could have been the biggest tax evasion case of all time.” The CIA invoked “national security” since it was using the Castle Bank “for the funding of clandestine operations against Cuba and other intelligence operations directed at countries in Latin America and the Far East.” By the time Helliwell died from emphysema on Christmas Eve, 1976, Castle Bank had been liquidated.

Simultaneous with the closure of Castle Bank’s Nassau office, Nugan Hand Bank launched its formal “banking” operations in the nearby Cayman Islands. The opening of Caribbean branches, a new area for Nugan Hand, and recruitment of retired CIA officers gave it a corporate structure similar to the collapsed Castle Bank. Indeed, a former CIA agent named Kevin Mulcahy, a key witness in the Edwin Wilson case, gave details to the National Times of Sydney “about the Agency’s use of Nugan Hand for shifting money for various covert operations around the globe”.

Working through Houghton, moreover, the Nugan Hand Bank deepened its contacts with the network of ex-CIA officials surrounding Edwin Wilson. After helping Hand informally with the bank’s operations for the previous five years, Houghton finally joined Nugan Hand’s staff in late 1978 and opened a branch in Saudi Arabia to collect deposits from American contract employees. Under Houghton’s management, the Saudi branch ran the bank’s biggest — and simplest — fraud. With introductions from Beck Arabia of Dallas, a leading engineering firm with major Middle East contracts, Houghton flew into Saudi Arabia in January 1979 and rented a villa at Al-Khobar to serve as both office and residence for the bank. Over the next twelve months, Houghton and his aides circulated through the U.S. construction camps along the Persian Gulf, issuing bank receipts for cash deposits from American contract workers. Paid in cash and unable to make deposits in Saudi Arabia’s backward banking system, American expatriate workers needed the deposit-taking service that Nugan Hand pretended to provide. Houghton then bought bundles of Thomas Cook traveler’s checks and sent them off in commercial courier parcels to Michael Hand’s new office in Singapore. Through this simple system, Houghton and Hand collected collected at least $5 million from their fellow Americans—all of which simply disappeared when the bank collapsed a year later.

Houghton’s presence in Arabia brought Nugan Hand Bank into closer contact with Wilson’s network of former CIA officials, now moving its base of operations to nearby Libya. When Houghton opened his Saudi office in 1979, Wilson’s network seemed a step away from unprecedented power, and Houghton apparently decided to join their rise. Within months, however, both Wilson’s group and Nugan Hand were plunging precipitously toward a collapse.

After decades inside the CIA, Wilson and his closest associates were finally forced out in the late 1970s, losing the mantle of CIA protection that had long masked their operations. In February 1976, Admiral Bobby Ray Inman, the new head of the Office of Naval Intelligence, ran into Ed Wilson by chance and learned to his surprise that this wheeler-dealer was one of his own operatives in Task Force 157. When Wilson’s contract came up for renewal a few months later, ONI canceled it on Inman’s orders, pushing the ex-CIA man into the private sector. There he prospered. Between June and September 1976 Wilson supplied Libya with thousands of CIA-designed bomb timers and more than 21 tons of Composition C-4, the most powerful nonnuclear explosive in America’s arsenal–thereby providing Colonel Muammar al-Qaddafi with a potent weapon for his terrorist campaign in Europe and the Middle East. Over the next four years, Wilson recruited U.S. Green Berets to train Libyan commandos, delivered weapons for Qaddafi’s terrorists, and even arranged assassinations for the Libyan dictator. One of Wilson’s employees, former CIA officer Kevin Mulcahy, became concerned by these shipments and reported them to the CIA. But Wilson’s old friend Theodore Shackley, now deputy director for Clandestine Services [at CIA], blocked any internal investigation. In April 1977 The Washington Post published an article on Wilson’s activities stating that he “may have had contact with one or more current CIA employees”, and the agency’s new director, Admiral Stansfield Turner, started asking questions. He soon learned about Wilson’s close friendship with his former CIA colleagues Clines and Shackley, then high in the Langley hierarchy. Over the opposition of senior CIA bureaucrats, Turner transferred the two to secondary jobs. A year later Thomas Clines resigned from the CIA after thirty years’ service, borrowed $500,000 from Wilson to set up his own company, and soon won a $71 million contract for arms delivery to Egypt. No longer heir-apparent to the post of CIA director, Theodore Shackley resigned in Septermber 1979 and followed Clines into the consulting business.

(end excerpts from Alfred McCoy’s book, “The Politics of Heroin”)

Notes:

I do have the book by Jonathan Kwitny of the Wall Street Journal, pictured atop this page, but I do not have Sleight Of Hand by Owen.  Therefore I cannot say much about it, other than it is on my “wish list” at Amazon dot com.  Anyone who has read this book is invited to post their take in the comments section below this article. Thank you.

http://www.amazon.com/Sleight-hand-million-Nugan-scandal/dp/0863990231

Alfred McCoy’s book, The Politics of Heroin, is at Amazon dot com —  http://www.amazon.com/Politics-Heroin-Complicity-Global-Trade/dp/1556521251/ref=sr_1_2?s=books&ie=UTF8&qid=1446552531&sr=1-2&keywords=Alfred+mccoy+Politics+of+Heroin

However, one should know that not all editions of the book have the chapter on Nugan Hand. My copy of the book is the 2nd edition, and contains the material I typed in above for this article.

https://www.oathkeepers.org/wp-content/uploads/2017/07/animated-banner-1.gif
The Nugan Hand
and How the CIA Moves Drugs and Money

Further Reading
In Banks We Trust by Penny Lernux published in 1994

"A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The ''United States of America'', for an amount of ''up to and including his life.''" – Author Unknown 

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"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it.” – Thomas Paine


Veterans, you swore an Oath...

Oath of Enlistment

I, (NAME), do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; and that I will obey the orders of the President of the United States and the orders of the officers appointed over me, according to regulations and the Uniform Code of Military Justice. So help me God.



Officers Oath

I, [name], do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God.


Your Oath NEVER expires! 
It''s time to keep it!

OATH KEEPERS: 
ORDERS WE WILL NOT OBEY

Click here to read full length version.

1. We will NOT obey orders to disarm the American people.


2. We will NOT obey orders to conduct warrantless searches of the American people
.

3. We will NOT obey orders to detain American citizens as “unlawful enemy combatants” or to subject them to military tribunal.


4. We will NOT obey orders to impose martial law or a “state of emergency” on a state.


5. We will NOT obey orders to invade and subjugate any state that asserts its sovereignty.


6. We will NOT obey any order to blockade American cities, thus turning them into giant concentration camps.

7. We will NOT obey any order to force American citizens into any form of detention camps under any pretext.


8. We will NOT obey orders to assist or support the use of any foreign troops on U.S. soil against the American people to “keep the peace” or to “maintain control."


9. We will NOT obey any orders to confiscate the property of the American people, including food and other essential supplies.


10. We will NOT obey any orders which infringe on the right of the people to free speech, to peaceably assemble, and to petition their government for a redress of grievances.


Click here to read full length version.



Site Dedication


This site is dedicated to the memory of 
John William Adams (1925-2006), 
Marine and Oath Keeper extraordinaire.


John Adams, at the age of 16, lied about his age to join the Marines so he could fight against Imperial Japan in the Pacific. His enlistment date was December 10, 1941, just three days after the attack on Pearl Harbor (see below). As a Marine rifleman, he fought the Japanese from island to island, across the pacific, including at Iwo Jima. We may have good men, but we never had better.


Until his death in 2006, he was a dedicated 
patriot who still took his oath to defend the 
Republic deadly serious. May God grant you the courage to do likewise.



FOUNDER STEWART RHODES

Stewart is the founder and Director of Oath Keepers. He served as a U.S. Army paratrooper until disabled in a rough terrain parachuting accident during a night jump.

He is a former firearms instructor and former member of Rep. Ron Paul’s DC staff.

Stewart previously wrote the monthly Enemy at the Gates column for S.W.A.T. Magazine

Stewart graduated from Yale Law School in 2004, where his paper “Solving the Puzzle of Enemy Combatant Status” won Yale’s Miller prize for best paper on the Bill of Rights. He assisted teaching U.S. military history at Yale, was a Yale Research Scholar, and is writing a book on the dangers of applying the laws of war to the American people.


Board of Directors

Stewart Rhodes, Army Airborne Veteran, Yale Law School Graduate, OK Founder and President

John D. Shirley, Retired Duty Peace Officer - Houston, TX. National Lead Liaison to Peace Officers.

Jay Stang, Veteran US Marine Corps - Texas Chapter President

Jim Ayala, EMT Veteran, Oath Keepers Treasurer, Merchandise

Michele Imburgia, Texas State VP

Sheriff Denny Peyman, Retired Jackson County, KY Sheriff, OK National Peace Officer Liaison

John Kerriman, Current Missouri police academy instructor, police veteran, OK National Peace Officer/LEO Liaison





Air America _One man's story

David Quam

https://www.youtube.com/watch?v=V0jlBB9t3Ao&app=desktop

Published on Dec 31, 2011

Air America_One man's story of his experiences with Air America By Dave Quam

Category Education


 Allegations of CIA drug trafficking 

 

https://www.revolvy.com/topic/Allegations%20of%20CIA%20drug%20trafficking&item_type=topic

 Allegations of CIA drug trafficking 

A number of writers have claimed that the United States Central Intelligence Agency (CIA) is or has been involved in drug trafficking.

Books on the subject that have received general notice include works by historian Alfred McCoy, English professor and poet Peter Dale Scott,

and journalists Gary WebbMichael C. Ruppert and Alexander Cockburn. These claims have led to investigations

 by the United States government, including hearings and reports by the United States House of Representatives, Senate,

Department of Justice, and the CIA's Office of the Inspector General. The subject remains controversial.

Following is a summary of some of the main claims made by geographical area.

Afghanistan

For eight years, (until October 2009), Ahmed Wali Karzai, brother of the then-newly elected President of Afghanistan Hamid Karzai,

was on the payroll of the CIA - but is also alleged to have been involved in opium trafficking in the Middle East.[1] [2]

Golden Triangle

While the CIA was sponsoring a Secret War in Laos from 1961 to 1975, it was accused of trafficking in opium

 (an area known as the Golden Triangle).

In response to accusations by Rolling Stone magazine in 1968, and Alfred W. McCoy in 1972,

 the CIA made its own internal inquiries of its staff and clients in Laos concerning the drug trade. It noted that trading in opium was lega

l in Laos until 1971. Cultural background was also explored. Opium served the isolated Lao hill tribes as their sole cash crop. Additionally,

it was one of the few medicines available in their primitive living circumstances.

Nevertheless, the CIA had its own internal security agents investigating any possible commercial exports from mid-1968 onwards.

An American single plane airline was barred from CIA airfields on suspicion of drug smuggling.

 A guerrilla commanding officer was pressured into giving up dealing in opium.

The CIA's own conclusion was that small amounts of opium might have been smuggled via their contract aircraft, given wartime conditions.

The Agency's case officers even staged a couple of impromptu raids on drug refineries, only to be reined in by their Office of General Counsel.[3]

During its involvement, the CIA used the Meo (Hmong) population to fight Pathet Lao rebels. Because of the war against Pathet Lao rebels,

 the Hmong depended upon poppy cultivation for hard currency. The Hmong were very important to CIA operations and the CIA

was very concerned with their well-being. The Plain of Jarshad been captured by Pathet Lao rebels in 1964, which resulted in the

Laotian Air Force not being able to land their C-47 transport aircraft on the Plain of Jars for opium transport.

 The Laotian Air Force had almost no light planes that could land on the dirt runways near the mountaintop poppy fields.

Having no way to transport their opium, the Hmong were faced with economic ruin. Air America was the only airline available in northern Laos.

"According to several unproven sources, Air America began flying opium from mountain villages north and east of

the Plain of Jars to Gen Vang Pao's headquarters at Long Tieng."[4]

The CIA's front company, Air America was alleged to have profited from transporting opium and heroin on behalf of

 Hmong leader Vang Pao,[5] [6] [7] or of "turning a blind eye" to the Laotian military doing it.[8] [9] This allegation has been supported by

 former Laos CIA paramilitary Anthony Poshepny (aka Tony Poe), former Air America pilots, and other people involved in the war.

It is portrayed in the movie Air America. However, University of Georgia historian William M. Leary, writing on behalf of Air America,

claims that this was done without the airline employees' direct knowledge and that the airline did not trade in drugs.[10] Curtis Peebles 

denies the allegation, citing Leary's study as evidence.[11]

Historian Alfred W. McCoy stated that:[12]

In most cases, the CIA's role involved various forms of complicity, tolerance or studied ignorance

about the trade, not any direct culpability in the actual trafficking ...

[t]he CIA did not handle heroin,

 but it did provide its drug lord allies with transport, arms, and political protection.

In sum, the CIA's role in the Southeast Asian heroin trade involved indirect complicity rather than direct culpability.



United States

Mena, Arkansas

A number of allegations have been written about and several local, state, and federal investigations have taken place related to the alleged use

of the Mena Intermountain Municipal Airport as a CIA drop point in large scale cocaine trafficking beginning in the early 1980s.[13]

Some conspiracy theories regarding the airport extend to alleging the involvement of figures such as Oliver North and former presidents George H. W. Bush and Bill Clinton.[14]

An investigation by the CIA's inspector general concluded that the CIA had no involvement in or knowledge of any illegal activities that may have occurred in Mena.

The report said that the agency had conducted a training exercise at the airport in partnership with another

Federal agency and that companies located at the airport had performed "routine aviation-related services on equipment owned by the CIA".[15]

Hollywood film director Ron Howard is currently making a movie about these events, called 'Mena',[13] and

 focusing on the notorious pilot and Medellin cartel drug smuggler Adler Berriman Seal, a.k.a. Barry Seal, in which Seal is played by actor Tom Cruise.

 The film has been renamed American Made and is set for release in September 29, 2017.[16]

Mexico

In October 2013, two former federal agents and an ex-CIA contractor told an American television network that CIA operatives were involved in the kidnapping and murder of DEA covert agent Enrique Camarena, because he was a threat to the agency's drug operations in Mexico. According to the three men, the CIA was collaborating with drug traffickers moving cocaine and marijuana to the United States, and using its share of the profits to finance Nicaraguan Contra rebels attempting to overthrow Nicaragua's Sandinista government.

A CIA spokesman responded, calling it "ridiculous" to suggest that the Agency had anything to do with the murder of a US federal agent or the escape of his alleged killer.[17]

Honduras

The Honduran drug lord Juan Matta-Ballesteros was the owner of SETCO, an airline which the Nicaraguan Contras used to covertly transport military supplies and personnel in the early 1980s.[18] Writers such as Peter Dale Scott and Jonathan Marshall have suggested that the U.S. government's desire to conceal or protect these clandestine shipments led it to close the DEA office in Honduras when an investigation began into SETCO, allowing Matta-Ballesteros to continue and expand his trafficking.[19]

Nicaragua

In 1986, the United States Senate Committee on Foreign Relations began investigating drug trafficking from Central and South America and the Caribbean to the United States. The investigation was conducted by the Sub-Committee on Terrorism, Narcotics, and International Operations, chaired by Senator John Kerry, so its final 1989 report was known as the Kerry Committee report. The Report concluded that "it is clear that individuals who provided support for the Contras were involved in drug trafficking, the supply network of the Contras was used by drug trafficking organizations, and elements of the Contras themselves knowingly received financial and material assistance from drug traffickers."[20]

In 1996 Gary Webb wrote a series of articles published in the San Jose Mercury News, which investigated Nicaraguans linked to the CIA-backed Contras who had smuggled cocaine into the U.S. which was then distributed as crack cocaine into Los Angeles and funneled profits to the Contras. His articles asserted that the CIA was aware of the cocaine transactions and the large shipments of drugs into the U.S. by the Contra personnel and directly aided drug dealers to raise money for the Contras. The Los Angeles TimesThe New York Times, and The Washington Post launched their own investigations and rejected Webb's allegations.[21] In May 1997, the Mercury News executive editor Jerry Ceppos, who had approved the series, published a column that acknowledged shortcomings in the series reporting, editing, and production, while maintaining the story was correct "on many important points."[21] Webb later published a book based on the series, Dark Alliance: The CIA, the Contras, and the Crack Cocaine Explosion.[22]

Panama

The U.S. military invasion of Panama after which dictator Manuel Noriega was captured.

In 1989, the United States invaded Panama as part of Operation Just Cause, which involved 25,000 American troops. Gen. Manuel Noriega, head of government of Panama, had been giving military assistance to Contra groups in Nicaragua at the request of the U.S.—which, in exchange, allowed him to continue his drug-trafficking activities—which they had known about since the 1960s.[23] [24] When the DEA tried to indict Noriega in 1971, the CIA prevented them from doing so.[23] The CIA, which was then directed by future president George H. W. Bush, provided Noriega with hundreds of thousands of dollars per year as payment for his work in Latin America.[23] However, when CIA pilot Eugene Hasenfus was shot down over Nicaragua by the Sandinistas, documents aboard the plane revealed many of the CIA's activities in Latin America, and the CIA's connections with Noriega became a public relations "liability" for the U.S. government, which finally allowed the DEA to indict him for drug trafficking, after decades of allowing his drug operations to proceed unchecked.[23] Operation Just Cause, whose ostensible purpose was to capture Noriega, pushed the former Panamanian leader into the Papal Nunciowhere he surrendered to U.S. authorities. His trial took place in Miami, where he was sentenced to 45 years in prison.[23]

Noriega's prison sentence was reduced from 30 years to 17 years for good behavior.[25] After serving 17 years in detention and imprisonment, his prison sentence ended on September 9, 2007.[26] He was held in U.S. custody before being extradited to France where he was sentenced to 7 years for laundering money from Colombian drug cartels.[27]

Venezuela

A failed CIA anti-drug operation in Venezuela resulted in at least a ton of cocaine being smuggled into the United States and sold on the streets. The incident, which was first made public in 1993, was part of a plan to assist an undercover agent to gain the confidence of a Colombian drug cartel. The plan involved the unsupervised shipment of hundreds of pounds of cocaine from Venezuela. The drug in the shipments was provided by the Venezuelan anti-drug unit which was working with the CIA, using cocaine seized in Venezuela. The shipments took place despite the objections of the U.S. DEA. When the failed plan came to light, the CIA officer in charge of the operation resigned, and his supervisor was transferred.[28]

In addition, the former Venezuelan anti-narcotics chief General Ramon Guillen Davila and his chief civilian aide were both indicted in connection with the shipments.[29] Because Venezuela does not extradite its citizens, Guillen was not tried in the U.S., but his civilian aide was arrested while in the United States and sentenced to 20 years.[30]

See also

  • CIA transnational anti-crime and anti-drug activities
  • War on Drugs
  • Project MKULTRA
  • Air America (airline)
  • Air America (non-fiction book)
  • Air America (film)
  • Castle Bank & Trust (Bahamas)
  • Nugan Hand Bank
  • Bank of Credit and Commerce International (BCCI)

References

1.     http://www.thedailybeast.com/articles/2009/10/28/the-karzai-brothers-fight-back.html

2.     https://www.nytimes.com/2009/10/28/world/asia/28intel.html?_r=0

3.     Ahern, Thomas L. Jr. (206). Undercover Armies: CIA and Surrogate Warfare in Laos. Center for the Study of Intelligence. pp. 535–547. Classified control no. C05303949.

4.     McCoy, Alfred (1972). The Politics of Heroin in Southeast Asia. Harper & Row. pp. 263–264,. ISBN 0060129018. Air America began flying opium from mountain villages north and east of the Plain of Jars to Gen. Vang Pao's headquarters at Long Tieng.

5.     "Opium Throughout History"PBS. Retrieved July 15, 2013.

6.     Cockburn, AlexanderJeffrey St. Clair (1998). "9". Whiteout, the CIA, drugs and the press. New YorkVersoISBN 1-85984-258-5.

7.     Blum, William. "The CIA and Drugs: Just say "Why not?"". Third World Traveller. Retrieved May 26, 2013.

8.     Robbins, Christopher (1985). The Ravens. New York: Crown. p. 94. ISBN 0-9646360-0-X.

9.     "Air America and Drugs in Laos"Los Angeles Times. Retrieved July 16, 2013.

10.   "History of CAT/Air America". Air-america.org. Archived from the original on April 24, 2011. Retrieved April 29, 2011.

11.   Peebles, Curtiss. Twilight Warriors: Covert Air Operations Against the USSR. pp. 254–255. ISBN 1591146607.

12.   p. 385 of The Politics of Heroin: CIA Complicity in the Global Drug Trade, by McCoy, with Cathleen B. Read and Leonard P. Adams II, 2003, ISBN 1-55652-483-8

13.   http://www.arktimes.com/RockCandy/archives/2014/02/13/ron-howard-to-direct-movie-about-arkansass-most-notorious-drug-smuggler-barry-seal

14.   Schneider, Howard (1994-07-21). "Clandestination: Arkansas; Mena Is a Quiet Little Place. So How Did It Become the Cloak-and-Dagger Capital of America?". Washington Post. pp. –01. ISSN 0190-8286. Retrieved 2017-06-14.

15.   Rothberg, Donald (9 November 1996). "Investigation Absolves CIA in Alleged Drug Smuggling". Associated Press. Retrieved 26 May 2013.

16.   http://www.imdb.com/title/tt3532216/.

17.   ""Te CIA helped kill DEA agent Enrique ‘Kiki’ Camarena," say witnesses"El País (Spain) (in Spanish). 15 October 2013. Retrieved 21 October 2013.

18.   Bunck, Julie M. & Fowler, Michael R. (2012). Bribes, Bullets, and Intimidation: Drug Trafficking and the Law in Central America. Penn State Press. p. 274. ISBN 9780271048666.

19.   Scott, Peter Dale & Marshall, Jonathan (1998). Cocaine Politics: Drugs, Armies, and the CIA in Latin America. University of California Press. p. 57. ISBN 9780520921283.

20.   "Subcommittee on Terrorism, Narcotics and International Operations of the U.S. Senate Committee on Foreign Relations" (April 1989). Drugs, Law Enforcement And Foreign Policy. p. 86. Retrieved 2015-04-25.

21.   Daunt, Tina (March 16, 2005). "Written in Pain". Los Angeles Times. Los Angeles. Retrieved April 3, 2015.

22.   Template:Cite url=http://catalog.sevenstories.com/products/dark-alliance-the-cia-the-contras-and-the-cocaine-explosion-movie-tie-in-edition

23.   Cockburn, Alexander; Jeffrey St. Clair (1998). Whiteout: The CIA, Drugs and the Press. New York: Verso. pp. 287–290. ISBN 1-85984-258-5.

24.   Buckley, Kevin (1991). Panama: The Whole Story. Simon and Schuster. ISBN 978-0-671-72794-9.

25.   Schpoliansky, Christophe (2010-04-27). "Panama's Ex-Dictator Manuel Noriega Extradited from U.S. to France"Abcnews.go.com. Retrieved 2012-07-20.

26.   "Manuel Noriega scheduled for September release". USA Today. 24 January 2007.

27.   "Manuel Noriega sentenced to 7 years". Reuters. 7 July 2010.

28.   Chua, Howard G. (1993-11-29). "Confidence Games". TIME. Retrieved 2012-07-20.

29.   "Venezuelan pleads innocent to drug-smuggling charges". Tampa Tribune. January 29, 1997. p. 7.

30.   "Man Gets 20 Years in Drug Smuggling". Sun Sentinel (Final ed.). Fort Lauderdale. 1997-12-11. p. 11.

Further reading

  • Scott, Peter Dale; Marshall, Jonathan (1998). Cocaine Politics: Drugs, Armies, and the CIA in Central America. University of California Press. ISBN 0-520-21449-8.
  • Scott, Peter Dale (2003). "11, "Opium, the China Lobby, and the CIA"". Drugs, oil, and war: the United States in Afghanistan, Colombia, and Indochina. Rowman & Littlefield. ISBN 978-0-7425-2522-1.
  • Kruger, Henrik. (1980). The Great Heroin Coup: Drugs, Intelligence, and International Fascism. South End Press. ISBN 0-89608-031-5.
  • Kwitny, Jonathan (1988). The Crimes of Patriots: A True Tale of Dope, Dirty Money, and the CIA. Touchstone Books. ISBN 978-0-671-66637-8.
  • Levine, Michael (1993). The Big White Lie: The Deep Cover Operation That Exposed the CIA Sabotage of the Drug War. Thunder's Mouth Pr. ISBN 978-1-56025-084-5.
  • McCoy, Alfred W.; Read, Kathleen B. (1972). The Politics of Heroin in Southeast Asia. Harper & Row. ISBN 0060129018. Archived from the original on 2015-02-16. (The link is to the complete text of this book.)
  • McCoy, Alfred W. (2003). The Politics of Heroin: CIA Complicity in the Global Drug Trade, Afghanistan, Southeast Asia, Central America, Columbia. Lawrence Hill & Co. ISBN 1-55652-483-8.
  • Webb, Gary (1999). Dark Alliance: CIA, the Contras and the Crack Cocaine Explosion. Seven Stories Press,U.S. ISBN 1-888363-93-2.
  • Cockburn, Alexander; St-Clair, Jeffrey (1998). Whiteout: The CIA, Drugs, and the Press. Verso. ISBN 9781859841396.

CIA & DOJ Reports

  • Overview of CIA/IG Investigation (January 29, 1998) — A short summary of The Inspector General's Report of Investigation regarding allegations of connections between CIA and the Contras in cocaine trafficking to the United States.

1.     Report of Investigation--Volume I: The California Story (January 29, 1998) —The Inspector General's Report of Investigation regarding allegations of connections between CIA and the Contras in cocaine trafficking to the United States. Volume I: The California Story.

2.     Report of Investigation -- Volume II: The Contra Story (October 8, 1998) — The Inspector General's Report of Investigation regarding allegations of connections between CIA and the Contras in cocaine trafficking to the United States. Volume II: The Contra Story.

  • USDOJ/OIG Special Report. THE CIA-CONTRA-CRACK COCAINE CONTROVERSY: A REVIEW OF THE JUSTICE DEPARTMENT’S INVESTIGATIONS AND PROSECUTIONS (December, 1997)

External links

  • Frontline: Guns, Drugs, and the CIA
  • Congressional Testimony of Peter Kornbluh

 


Jim Kilcullen Air America

David Quam

https://www.youtube.com/watch?v=4wus8pdFNNI&app=desktop

Published on Aug 7, 2014

Jim Kilcullen's Air America story..

Category Education


Predatory Practices Nugan Hand Trick Bank

Con Front Nugan Hand - Nugan Hand Trick Bank

The Crime Bankers-Frank Nugan and Michael Hand/Fuller

More CIA Treachery: Nugan Hand Bank Ltd
By Elias Alias, 2015

This latest version of the selected excerpts from Alfred McCoy’s masterpiece on the CIA’s dope dealing escapades is more complete than previous postings. I have typed in passages from pages 461-472 in Alfred W. McCoy’s bombshell book, “The Politics of Heroin: CIA Complicity In The Drug Trade“, (1991; first edition 1972.)

At 4:00 a.m. on January 27, 1980, a state police officer patrolling a country road west of Sydney, Australia, noticed a late-model Mercedes sedan parked by the side of the road and stopped to examine it. Inside the constable found the body of a middle-aged male slumped forward, still holding the rifle he had apparently used […] Searching his wallet, the police found personal identification for one Frank Nugan, a merchant banker of Sydney, and a calling card from one William Colby, a New York lawyer who had recently retired as director of the U.S. Central Intelligence Agency.

The circumstances of Nugan’s [death] and the bank’s spectacular collapse only six months later have inspired hundreds of press probes, three major Australian government investigations, and a lengthy  book by one of America’s best investigative reporters. All have asked the same basic question: What was the relationship between the Nugan Hand Bank and the CIA? Although we have more details about the bank than about any other company with similarly ambiguous CIA connections, the question still defies a concise answer.

[…] Nugan Hand’s twisted history does offer insights into the world of CIA espionage—in particular, that gray area of alumni, allies, assets, and affiliated companies that do so much of the agency’s covert work. In his memoirs and public statements, William Colby has portrayed his CIA colleagues as “honorable men”, patriots who simply would not, could not tolerate any involvement in drugs by either agency personnel or covert assets. Whatever it may or may not have been, the Nugan Hand Bank was certainly two things: (1)an employer of many retired CIA agents and (2) heavily involved in narcotics trafficking.

Unlike most of the agency’s faceless espionage, the carefully documented Nugan Hand case affords a close look at the moral universe of covert operations, particularly the gray sector of CIA proprietaries and affiliates. The Nugan Hand case shows how the CIA’s secret war in Laos, interwoven with the tribal opium trade, produced a covert action cadre with a tolerance for drug dealing.

The Nugan Hand Bank served several constituencies simultaneously, and its various relationships reveal a good deal about the operations of this clientele. Based in Sydney, the bank was a partnership between Australian lawyer Frank Nugan and an ex-Green Beret businessman named Michael Hand. Both worked closely with one of their senior managers, a mysterious American expatriate with impeccable intelligence contacts, Maurice Benard Houghton. Through the three men and their separate, sometimes overlapping networks, the bank cultivated corrupt Australian politicians, Sydney crime syndicate, a fraternity of ex-CIA arms dealers, and the U.S. Central Intelligence Agency.

In less than a decade after its incorporation in Sydney in 1973, Nugan Hand Limited went through a complete cycle from modest origins to spectacular global expansion to precipitous collapse. During its eight-year life, the bank’s character was shaped by its three principals. [Following is excepted] Francis Nugan was known to be an abrasive alcoholic, an incompetent manager, a mediocre lawyer, and a “pathological liar”. Michael Jon Hand, was born in New York in 1941, had joined the U.S. Army’s Special Forces, the Green Berets. Sometime in 1965-1966 Hand joined the CIA where he met Theodore Shackley and befriended a crack Air America pilot, Kermit “Buddy” King. Hand also met deputy CIA station chief Thomas Clines. In 1967 Hand finished his CIA contract and moved to Sydney, where he met American expatriate Bernie Houghton.

As an indication of their CIA contacts, in September 1969 Hand formed Australasian and Pacific Holdings Ltd., a real estate company whose seventy-one shareholders included nineteen people then employed by the CIA’s contract airlines in Indochina, Air America and Continental Air Services. Sometime in the late 1960s Hand met Frank Nugan and the two are believed to have shared an apartment before they both married. Crude in manner, violent in speech, and poorly educated, Hand had no banking experience and would bring little more than his cunning and covert contacts to the building of Nugan Hand Bank.

The key figure in much of the bank’s history, Maurice Bernard Houghton, is a mysterious Texan who arrived in Sydney from Southeast Asia in 1967 with an impressive list of references from senior U.S. military officers. […] Australia’s Joint Task Force into the bank’s affairs reported that Houghton was “part of the intelligence community” in Southeast Asia before coming to Australia. Wall Street Journal reporter Jonathan Kwitny interviewed former U.S. intelligence officers who claimed, on the record, that Houghton was a wheeler-dealer in Southeast Asia who traded in slot machines, opium—anything.

Soon after arriving in Sydney, Houghton formed a business association with a prominent Hungarianemigre, Sir Paul Strasser, owner of one of Sydney’s leading property companies. With support from Strasser and his associates, Houghton opened the Bourbon and Beefsteak restaurant in October, 1967, just weeks before the first American soldiers began arriving on R&R leave from Vietnam. Among Houghton’s private guests at the club were the CIA’s Australian station chief from 1973 to 1975, John D. Walker; the state’s Premier Sir Robert Askin, a corrupt politician notorious for his contacts with criminal syndicates; and Abraham Saffron, Sydney’s leading gangster and vice lord of Kings Cross.

Unlike his future partners, Houghton maintained excellent contacts with the most senior U.S. military and intelligence personnel in the Asia-Pacific region. His intelligence contacts were such that when he turned to Australia from a business trip without a visa in 1972, he rang the state director for the clandestine Australian Security Intelligence Organization (ASIO). The director, Leon Carter, vouched for Houghton and the American received an immediate visa. In dealing with his male friends, Houghton seems to have been a man of strong loyalties and antipathies. “I had a personality problem with Nugan”, Houghton later told the Australian Joint Task Force. “He was harsh, abrasive, arrogant and inconsiderate.” By contrast, Houghton remained very close to Michael Hand, who seemed to regard the older man as a “father figure”. Hand would eventually tire of Frank Nugan’s alcoholism and costly flamboyance, but he remained close to Bernie Houghton until the end.

In 1973, Nugan Hand Limited was born, as it would die, through a gross financial fraud. With only $80 in the company’s bank account and just $5 in paid-up capital, Frank Nugan wrote his own company a personal check for $980,000 to purchase 490,000 shares of its stock. He then covered his massive overdraft by writing himself a company check for the same amount. Through this elementary accounting fraud, Nugan could claim that the company’s paid-up capital was a million dollars.

The bank’s start also coincided with the first of many allegations of drug dealing against Michael hand. Injured in an accident, Buddy King’s Thai house-keeper met a Sydney lawyer to sue for compensation. The lawyer was, for reasons never explained, phoned the Australian Bureau of Narcotics to report that King, Air America’s former ace pilot, was flying heroin into Australia for Michael hand. Soon after his housekeeper’s lawyer made these allegations, King fell to his death from the tenth floor of a Sydney apartment building.

Over the next four years, the bank grew at a remarkable rate by providing a bridge between larger, legitimate banks and a shadow universe of organized crime, illegal money laundering, and intelligence operations. Even at its peak in 1979 with dozens of employees and a global network of offices, the bank never really made a proper profit. Most employees were not clerks or investment counselors, but salespeople who scrambled desperately to keep new deposits coming in the front door faster than the bank’s officers could take them out the back—through lavish expenses, high salaries, and simply fraud. Nugan Hand was a carnival shell game, courting depositors for cash and moving money from branch to branch to conceal one fundamental fact—the bank simply had no assets behind it.

Like many corporate confidence men, Frank Nugan and Michael Hand were obsessed with creating the illusion of propriety and prosperity. Without any capital or customers, Frank Nugan’s first act in opening the company was to lease expensive, well-appointed offices at 55 Macquarie Street, a prestigious address in the heart of the Sydney business district. Nugan hired a reputable money market manager who found that he could get an hour or two of creditevery day from personal contacts in the business, just long enough to buy and sell. Although the trading incurred a real loss of $18, 373, the total volume of transactions reached $2.4 million dollars, giving the new company the aura of doing big business.

As the bank grew, so did the scale of its illusions. The bank issued glossy annual reports claiming, in 1976 for example, $22 million in “total assets”, $26 million in “gross proceeds from sales of securities”, and approval of its bookkeeping by reputable auditors. A lavish promotional brochure described the bank as part of the Nugan Hand Group, “with assets exceeding US $20,000,000 and a turnover exceeding US $1,000,000,000 per annum.” Assuring potential clients “absolute security, anonymity and confidentiality”, the brochure promised customers “the utmost in personal service and attentive specialist assistance.” […] All of these claims, financial and moral, were knowing lies.

While Frank Nugan concentrated on courting business clients in Sydney, other associates, Hand included, took the bank abroad. The group’s first breakthrough to something approaching profit came in 1974-1975 when it opened a legal Hong Kong branch. By offering Sydney depositors a money-laundering facility for illegal transfers of Australian money to Hong Kong and reciprocally allowing Hong Kong clients a higher rate of interest for funds deposited in Sydney, the bank began to move large funds for the first time.

As these global activities grew over the next six years, Nugan Hand Limited gradually divided, formally and informally, into two almost separate companies: the Sydney-based Nugan Hand Limited under Frank Nugan’s control and the international branches of Nugan Hand Bank, later registered as a Cayman Islands corporation, managed largely by Michael hand. As Hand grew tired of Frank Nugan’s incessant drinking and mounting legal problems, the ex-Green Beret pulled away from his Australian partner and drew Bernie Houghton into the international side of the business. While Frank Nugan’s Sydney office concentrated on tax fraud and money laundering, the Hand-Houghton partnership led the bank’s international division into new fields—drug finance, arms trading, and support work for CIA covert operations.

During the bank’s early days in Sydney, Michael Hand had told his junior colleagues that “it was his ambition that Nugan Hand become banker for the CIA. In southern Africa during the mid-1970s, Hand, the former CIA operative, seems to have realized his ambition. At that time southern Africa was in the throes of decolonization, with guerrilla groups fighting the Portugese in Angola and British colonials in Rhodesia. When the Portuguese regime began to crumble in Angola, rival guerrilla groups turned to their great power patrons for more arms, making Angola a cockpit of cold war confrontation.

As CIA covert arms shipments began flowing into Angola in 1974-1975, first to Holden Roberto and then to UNITA, Michael Hand left Sydney in January 1975 for southern Africa, where he remained for more than a year, trading in arms and munitions. During his fifteen months in Africa, Hand telexed and telephoned the bank’s Sydney headquarters repeatedly, speaking with Frank Nugan and employee, Wilhemus Hans, about shipments of pistols, helicopters, and munitions. After Nugan’s death, investigators found what appeared to be phone notes in his handwriting from this period, one of which read:

Military weapons Rhodesia
Pay in Gold
Recoilless Rifles
Morters 60/80 ml
M79 Granade launchers
Quad .50 Caliber machine guns

[…] In Pretoria, South Africa, Hand incorporated a trading company, Murdoch Lewis Proprietary Ltd., to take delivery of the arms shipments. At one point Hand summoned his Sydney employee Wilhemus Hans to Africa for discussions about formation of a helicopter squadron for the white [illegal occupiers]. Hand also made frequent phone calls to another bank employee, Frank Ward, later charged with arms dealing by Australian authorities in court proceedings that remained classified.

While Hand waited in southern Africa to take delivery of arms, his close friend Bernie Houghton flew to Washington DC, with two Nugan Hand employees to arrange shipments. Significantly, Houghton made direct contact with CIA agent Edwin Wilson, then working for Task Force 157, a covert action arm of the Office of Naval Intelligence (ONI). With vast profits from his contract covert operations work, Wilson had purchased Mt. Airy Farms, a thousand-acre estate in northern Virginia where he often entertained his close comrades Thomas Clines and Theodore Shackley, Hand’s former CIA superiors back in Laos who were now rising fast in the agency’s Langley headquarters. After fifteen years as a career CIA officer, Wilson had transferred to Task Force 151 in 1973 and was operating from the offices of a cover company, World Marine Inc., at 1425 K Street in Washington. It was there that Wilson would meet Houghton and the two Nugan Hand men to arrange the African arms deal.

Australia’s Joint Task force investigating the bank later learned details of the meetings from Dennis Schlachter, a World Marine employee whose evidence as a protected federal witness would lead to Wilson’s 1982 conviction for illegal arms sales to Libya. Sometime in 1975 or early 1976 Schlachter first learned of the African arms deal when two CIA agents based in Indonesia, James Hawes and Robert Moore, called on Wilson at World Marine in Washington to discuss “an African arms deal” that, in these agents’ words, “had to be put together”. Sometime later, Houghton arrived from Sydney and came into World Marine’s offices with the two Nugan Hand men to order the arms.

Schlachter recalls chauffeuring Wilson and Hawes out to the agency’s headquarters in Langley while the two discussed using Nugan Hand Bank to finance the shipments. Under the “cover of Task Force 157,” ammunition, 3,000 weapons including machine guns, M-1s, carbines and others”. With an end-user’s certificate showing World Marine as the purchaser and an Australian company as the buyer, the arms left the United States from Boston for southern Africa in three separate shipments.

The Australian Joint Task Force found that Ed Wilson and Bernie Houghton were also involved in the ONI operation to transfer a highly classified spy ship to the Shah of Iran. Soon after joining Task Force 157 in 1973, Wilson had earned a $500,000 fee by delivering an earlier spy ship to Iran under the cover of World Marine. According to the witness Schlachter, in 1975 the U.S. Navy assigned Wilson to deliver another high-technology spy ship to Iran. Schlacter recalls that Houghton “was involved” in this deal, working with “funds…and…payouts”.

Significantly, Australian immigration records show that Houghton flew to Iran in March 1975 in the company of a U.S. Army Colonel. Working through Task Force 157, Wilson purchased the ship and ordered it to sail from England around Africa to Iran. When some “mix-up” developed, Schlachter recalls that “Wilson flew to Iran to correct it.” Australian immigration records show that in January 1976 Wilson flew into Sydney and stayed in Australia for three days before flying on to Iran.”

After fourteen months in Africa, Michael Hand returned to the bank’s Sydney headquarters in March 1976 and dedicated his trade skills to a new constituency—Australia’s leading international heroin smugglers. After nearly fifty years without a serious narcotics problem, Australia showed signs of spreading addiction in the late 1970s as Sydney’s criminal syndicates began organizing regular heroin shipments from Southeast Asia. In a March, 1977 report, for example, Sydney’s Crime Intelligence Unit monitored a series of meetings between the city’s leading illegal bookmaker, George Freeman, and California crime figure Danny Stein:

“Information was received that Stein was here for the purpose of organizing a network for the reception of heroin into this country from the Golden Triangle and for subsequent distribution on thelocal market and in the United States.”

Would-be Sydney heroin smugglers faced Australia’s stringent currency control laws that made it difficult to export the hard cash for heroin buys in Bangkok. After two years of active money laundering through Hong Kong, Nugan Hand was becoming known in the underworld as a reliable money mover. Sometime in early 1976 George “the Duke” Countis, an American crime figure who “owned” a gaming table in an illegal Sydney casino, brought Murray Riley to the headquarters of Nugan Hand Limited. A former Sydney constable, Riley had quit the police to become a “patron” in the criminal underworld and a close associate of leading criminals like George Freeman. Just back from Africa, Hand quickly developed what the Australian police Joint Task Force called “a close business and social relationship with Riley”.

Starting in April 1976, only four weeks after his arrival from Africa, Hand made five cash transfers to Hong Kong for Murray Riley totaling $295,000. After each transfer, one of Riley’s underlings would call at Nugan Hand’s Hong Kong office to pick up the money, later using the cash to take delivery of a heroin shipment. Through this procedure, Nugan Hand handled $4.3 million in identifiable drug money for twenty-six known dealers between 1976 and 1980. Studying Hand’s memorandum to his Hong Kong office about a $60,000 cash transfer for Riley’s October shipment, the Task Force concluded “that Hand was aware that Riley was involved in significant illegal activity”.

As an indication of their closeness, in late 1986, acting on Riley’s advice, Hand opened bank branches in Thailand, in the words of his Chiangmai branch manager, “to attract drug money”. Two years later, when a yacht was seized south of Sydney with 4.3 tons of high-grade cannabis and Riley was charged, Michael Hand ordered the bank’s Hong Kong office to destroy all incriminating records of Riley’s money transfers. Reviewing this period in the bank’s history, Australia’s Joint Task Force concluded:

“Throughout 1976 Hand was knowingly involved in drug activity with the ‘Riley’ group in that he permitted and even encouraged the use of Nugan Hand facilities for the movement of ‘drug’ money.

In October 1976 Hand decided to leave the Sydney office to Frank Nugan and move to Hong Kong, where he could build the bank’s international division. Over the next two years, Hand worked with some success to develop a global network of twelve branches that covered Asia, Africa, and the Americas. After months of failure, Hand’s break had come in June 1976 when the Cayman Islands, a British colonial tax haven in the Caribbean, decided to charter the Nugan Hand Bank, finally giving the company the legal right to advertise itself as a “merchant bank”.

As the bank expanded dramatically in 1977-1978, Michael Hand recruited some of the most famous names in U.S. national security circles to join the bank as employees or associates. The key figure in making these contacts for Hand was Bernie Houghton, who had taken a more active role in the bank in 1976 after his bar business went bankrupt with debts of nearly a million dollars. In early 1977 Houghton recruited an old friend, Admiral Earl Yates, retired chief strategist for the U.S. Pacific Command, to serve as president of the Nugan Hand Bank. Through the admiral’s influence, a succession of such senior appointments followed:

– General Leroy J. Manor, former Pentagon counterinsurgency specialist and chief of staff of the U.S. Pacific Command, manager of the bank’s Manila branch;
– General Edwin F. Black, former OSS officer and commander of U.S. forces in Thailand, president of Nugan Hand, Inc., of Hawaii;
– Dr. Guy Pauker, Asia expert for the Rand Corporation, a research firm under contract to the U.S. Defense Department, bank consultant.
– Dale Holmgren, former chairman of the CIA’s Civil Air Transport, [a CIA proprietary airline similar to Air America], manager of the bank’s Taiwan branch;
– William Colby, retired CIA director, Nugan Hand’s legal counsel.

The pattern of events surrounding this expansion indicates that Michael Hand may have realized his dream of becoming the “CIA’s banker”. Both Sydney police and Wall Street Journal reporter Jonathan Kwitny came away from their long investigations of

 

The Crimes Of Patriots _ A True Tale of Dope, Dirty Money, and the CIA by Jonathan Kwitny

Nugan Hand convinced that there may well have been some connection between the bank’s sudden rise and the antecedent demise of a CIA proprietary, the Castle Bank and Trust of Nassau.

After retiring from the CIA, Paul Helliwell, founder of such agency “proprietaries” as SEA Supply Inc. of Bangkok and Air America, opened a law office in Miami and formed Castle Bank offshore in nearby Nassau to cover the agency’s covert money movements. In 1973 agents of the Internal Revenue Service were able to photograph the Castle Bank’s customer list while a bank executive dined in a posh Key Biscayne restaurant with a woman described as an IRS “informant”. Reviewing the purloined documents, IRS investigators found that the 308 Castle Bank customers on the list had moved $250 million to foreign numbered accounts. Depositors included Playboy publisher Hugh Hefner, Penthouse magazine publisher Robert Guccione, and some major organized crime figures—Morris Dalitz, Morris Kleinman, and Samuel A. Tucker.Elated by the find, investigators formed Project Haven to make “the single biggest tax-evasion strike in IRS history.”

Suddenly, the IRS announced that it was dropping the investigation because of “legal problems”. According to a later investigation by the Wall Street Journal, “pressure from the Central Intelligence Agency … caused the Justice Department to drop what could have been the biggest tax evasion case of all time.” The CIA invoked “national security” since it was using the Castle Bank “for the funding of clandestine operations against Cuba and other intelligence operations directed at countries in Latin America and the Far East.” By the time Helliwell died from emphysema on Christmas Eve, 1976, Castle Bank had been liquidated.

Simultaneous with the closure of Castle Bank’s Nassau office, Nugan Hand Bank launched its formal “banking” operations in the nearby Cayman Islands. The opening of Caribbean branches, a new area for Nugan Hand, and recruitment of retired CIA officers gave it a corporate structure similar to the collapsed Castle Bank. Indeed, a former CIA agent named Kevin Mulcahy, a key witness in the Edwin Wilson case, gave details to the National Times of Sydney “about the Agency’s use of Nugan Hand for shifting money for various covert operations around the globe”.

Working through Houghton, moreover, the Nugan Hand Bank deepened its contacts with the network of ex-CIA officials surrounding Edwin Wilson. After helping Hand informally with the bank’s operations for the previous five years, Houghton finally joined Nugan Hand’s staff in late 1978 and opened a branch in Saudi Arabia to collect deposits from American contract employees. Under Houghton’s management, the Saudi branch ran the bank’s biggest — and simplest — fraud. With introductions from Beck Arabia of Dallas, a leading engineering firm with major Middle East contracts, Houghton flew into Saudi Arabia in January 1979 and rented a villa at Al-Khobar to serve as both office and residence for the bank. Over the next twelve months, Houghton and his aides circulated through the U.S. construction camps along the Persian Gulf, issuing bank receipts for cash deposits from American contract workers. Paid in cash and unable to make deposits in Saudi Arabia’s backward banking system, American expatriate workers needed the deposit-taking service that Nugan Hand pretended to provide. Houghton then bought bundles of Thomas Cook traveler’s checks and sent them off in commercial courier parcels to Michael Hand’s new office in Singapore. Through this simple system, Houghton and Hand collected collected at least $5 million from their fellow Americans—all of which simply disappeared when the bank collapsed a year later.

Houghton’s presence in Arabia brought Nugan Hand Bank into closer contact with Wilson’s network of former CIA officials, now moving its base of operations to nearby Libya. When Houghton opened his Saudi office in 1979, Wilson’s network seemed a step away from unprecedented power, and Houghton apparently decided to join their rise. Within months, however, both Wilson’s group and Nugan Hand were plunging precipitously toward a collapse.

After decades inside the CIA, Wilson and his closest associates were finally forced out in the late 1970s, losing the mantle of CIA protection that had long masked their operations. In February 1976, Admiral Bobby Ray Inman, the new head of the Office of Naval Intelligence, ran into Ed Wilson by chance and learned to his surprise that this wheeler-dealer was one of his own operatives in Task Force 157. When Wilson’s contract came up for renewal a few months later, ONI canceled it on Inman’s orders, pushing the ex-CIA man into the private sector. There he prospered. Between June and September 1976 Wilson supplied Libya with thousands of CIA-designed bomb timers and more than 21 tons of Composition C-4, the most powerful nonnuclear explosive in America’s arsenal–thereby providing Colonel Muammar al-Qaddafi with a potent weapon for his terrorist campaign in Europe and the Middle East. Over the next four years, Wilson recruited U.S. Green Berets to train Libyan commandos, delivered weapons for Qaddafi’s terrorists, and even arranged assassinations for the Libyan dictator. One of Wilson’s employees, former CIA officer Kevin Mulcahy, became concerned by these shipments and reported them to the CIA. But Wilson’s old friend Theodore Shackley, now deputy director for Clandestine Services [at CIA], blocked any internal investigation. In April 1977 The Washington Post published an article on Wilson’s activities stating that he “may have had contact with one or more current CIA employees”, and the agency’s new director, Admiral Stansfield Turner, started asking questions. He soon learned about Wilson’s close friendship with his former CIA colleagues Clines and Shackley, then high in the Langley hierarchy. Over the opposition of senior CIA bureaucrats, Turner transferred the two to secondary jobs. A year later Thomas Clines resigned from the CIA after thirty years’ service, borrowed $500,000 from Wilson to set up his own company, and soon won a $71 million contract for arms delivery to Egypt. No longer heir-apparent to the post of CIA director, Theodore Shackley resigned in Septermber 1979 and followed Clines into the consulting business.

(end excerpts from Alfred McCoy’s book, “The Politics of Heroin”)

Jonathan Kwitny was sent by the Wall Street Journal to Australia to cover a breaking story about one of the CIA;s drug-smuggling, money-laundering, and arms dealing proprietaries, a bank named Nugan Hand, Ltd. Mr. Kwitny gave us the “story behind the story” regarding the Iran-Contra scandal which disgraced the Ronald Reagan White House. His coverage of the Australian government’s investigation of the Nugan Hand Bank, Ltd, led to the free wheeling dope-dealing escapades of the CIA’s drug dealing, arms trafficking, and money laundering at a larger CIA proprietary bank named BCCI, which the U.S. Senate investigated.



The Crime of Patriots – 

A True Story of Dope, 

Dirty Money and the CIA

BY Jonathan Kwitny

https://www.scribd.com/doc/95815512/Kwitny-The-Crimes-of-Patriots-A-True-Tale-of-Dope-Dirty-Money-and-the-CIA-Iran-Contra-Scandal-1987

The Crime of Patriots – A True Story of Dope, Dirty Money and the CIA

BY Jonathan Kwitny

The Crimes of Patriots will reveal how an obscure Australian bank, Nugan Hand Ltd., came to occupy the central position in a vast network of drug transactions, fraud, secret arms deals, and  covert intelligence operations.

"The Crimes of Patriots is a masterpiece, pulling together previously  unavailable do c u m e n t a t I o n  in  a  m o s  t c r e  a t i v e   w a y  a  n d —t h r o u g h  K w I t n y' s  o r ig i n a l  r e s e a r c h—

addressing the crucial questions to the most mysterious collection of intelligence hands ever caught in a single scandal. The answers Kwitny gathers and the new questions he raises are a road map for a major Congressional investigation yet to come."—Scott Armstrong

"As this book so clearly demonstrates, Jonathan Kwitny  is  a peerless investigative r e p o r  t e  r."—Peter Maas

In a government of laws, the existence of the government will be imperiled if it fails to observe the law scrupulously. Our government is the potent, the omnipotent, teacher. For good or ill, it teaches the whole people by its example. If government becomes a lawbreaker it breeds contempt for law: it invites every man to become a law unto himself. It invites anarchy.

Justice Louis D. B RANDEIS

For some time I have been disturbed by the way [the] CIA has been diverted from its original assignment. It has become an operational arm and at times a policy-making arm of the Government. This has led to  trouble and may have compounded our difficulties in several explosive areas. I never had any thought when I set up the CIA that it would be injected into peacetime cloak and dagger operations. Some of the complications and embarrassments that I think we have experienced are in part attributable to the fact that this quiet intelligence  arm of the President has been so removed from its intended role that it is being interpreted as a symbol of sinister and mysterious foreign intrigue—and a subject for Cold War  enemy propaganda. With all the nonsense put out by Communist propaganda about "Yankee imperialism," "exploitive capitalism," "war-mongering," "monopolists" in their name-calling assault on the West, the last thing we needed was for the CIA to be seized upon as something akin to a subverting influence in the affairs of other people. . .  . But there are now some searching questions that need to be answered. I, therefore, would like to see the CIA be restored to its original assignment as the intelligence arm of the President, and whatever else it can properly perform in that special field, and that its operational duties be terminated or properly used  elsewhere. We have grown up as a nation, respected for our free institutions and for our ability to maintain a free and open  society. There is something about the way the  CIA has been functioning that is casting a shadow over our historical position, and I feel that we need to correct it. 

HARRYS. TRUMAN, December 22, 1963

"There  is  a  secret  g ove r n me n t  in America. It  operates with  the  explicit  and  I mp l i e d    authority of the highest officials, and in the name of America's interests it has inflicted  great damage on the unsuspecting peoples of other countries and on our own  f u n d a m e n  t  a l   p r i  n c  i  p l  e s...   I   w i  sh    e v e r  y o n e   wo u l d    r e ad    The   C ri m e s   of   Pat r i o t s .    Perhaps t hen  the  current  hearings  on  the  Iran-Con t r a  aff a i r—for  Ro n a l d  Rea g a n  is  the   latest to wield this secret weapon and to perish by it—will be the last. An informed people  might  become  an  outraged   people  and  finally  put  a  stop  to  our  own sel f -  destruction.   If so, we  will owe much to Jonathan Kwitny's reporting." —Bill Moyes

"It is unusual to commend a book of investigative journalism that leaves some questions unanswered, but Jonathan Kwitny's account of the Nugan Hand affair transcends ordinary journalism. The Crimes of Patriots is the story of a reporter at work trying to balance issues of criminality and national security, and Kwitny left me with the sense that no one could have done it better."—Seymour Hersh

"This is a superbly researched and exceptionally well-told story."—John Kenneth Galbraith

"Jonathan  Kwitny  is  the  John  Le  C ar re  of  nonfiction  crime.  Sometimes  when  I  was w a ll o wing  I n The Crimes  of  Patriots  I  burst  out laughing  (perversely)  because  the  kings  of  this complicated idyl  are such shameless rogues. Is there no limit to their white-collar mischief?  Kwitny has raised the question again, as only he can."—Robert Sherrill

The Crimes of Patriots is the story behind the story revealed in the Iran-contra investigation. It is a chilling glimpse into the workings of the secret government that has operated  ruthlessly  in  this  country  and  around  the  world  for  the  last  forty  years, unchecked, answerable only to itself. It is a masterpiece of investigative journalism that  reveals the sordid truths shrouded within the "national security interest."

A rifle blast  blows off the  head of an  Australian banker in his Mercedes—and a tale of the whole Cold War begins to unravel. The death of Frank Nugan exposes the  massive fraud at the  heart  of  his empire, the  Nugan  Hand  Bank; but it also exposes the real power of  the  bank—a  network of  U.S.  generals,  admirals, and  CIA  men,  including  a  former  director  of  that  organization.  As the colourful story of the Nugan Hand Bank unfolds, we learn that there have been many similar operations.  Patterns  and  eerie  resonances  emerge,  and  the   names  of  those  who  later  masterminded  the Iran-contra  fiasco  lurk  in  the  shadows  cast  by  Nugan Hand: Clines, Shackley, Secord. We are slowly brought to a greater truth.  In his last book, Endless Enemies, Jonathan Kwitny showed how our anti-communist based  foreign policy undermines American security.  Here  he exposes  at  last  the  crimes   committed  against  American  citizens  in  pursuit  of  that  policy.  He  shows  how some  of   the biggest  names  in  American  defense  and  intelligence  were  involved  in  an  operation  that promoted the dope trade, tax evasion, and gun running, and swindled American citizens, and citizens of allied countries,  out  of  millions  of  dollars.  Kwitny  lays  out  a  mystery  filled   with questions whose answers—so far—have stayed locked in the U.S. government's  vault of secrets.

JONATHAN  KWITNY ,

 

a  Wall  Street Journal reporter for sixteen years, is one of America's foremost journalists and holds the honor  medal for career achievement  from  the  University  of Missouri  School  of Journalism . His  reporting  exposed former Reagan adviser Richard Allen's conflicts of interest, and forced the resignation of Lynn Helms, Reagan's Federal Aviation administrator. This  is Jonathan  Kwitny's  sixth  book. His fifth, Endless Enemies:  The Making of  an Unfriendly World, was runner-up for the Pulitzer Prize in general non fiction in 1985. Mr. Kwitny has lived or travelled  in more than ninety countries. A native of Indianapolis, he works from t he Journal's New York bureau.

Author's Note for The Crimes of Patriots

For five years prior to the publication of this book, the author tried repeatedly and fruitlessly to interview and obtain comment from Richard Secord, Theodore Shackley, and Thomas Clines, former high federal officials connected to Edwin Wilson, the traitor and convicted death merchant. Some of these efforts are described in the book. At the eleventh hour, as books were sitting on the warehouse loading docks waiting to be shipped to bookstores, Clines, Shackley, and Secord's lawyer, Thomas Green, contacted the publisher, stating that they had obtained a proof copy of the book and alleged that there were numerous errors in it. I have reviewed these specifics, along with my own sources, and I find that the men were, on the whole, treated fairly. As usually happens, comment from the subjects being written about did reveal a few erroneous details and  conflicting versions of events.— J.K. August 12, 1987

 

Contents

P R   O   L   O   G    U   E   11

CAST OF CHARACTERS   131.

 

The End  of  the  Rainbow  192.

 

The Cover-Up  343.

 

The Golden Triangle  434.

 

The Education of a Banker  S35.

 

Corporate Veils  696.

 

Sleight of Hand  817.

 

Terrorists and  Patriots 958.

 

Into Africa 1109.

 

The Spooking of Australia 12610.

 

The Un-Bank 14311.

 

Laughing at the Law 16512.

 

The Asia Branches 18113.

 

The U.S. Branches 19414.

 

Banking in Opiumland 20615.

 

Officers and Gentlemen 21716.

 

The Drug Bank 22917.

 

The "Mr. Asia" Murders 24318.

 

Bernie of Arabia 25719.

 

The Admiral's Colors 27220.

 

Men of Substance 28621.

 

What the Tape Recorder Heard 296

 

The Wilson Connection 30823.

 

The Explosion 32424.

 

Thwarting the Investigators 34025.

 

"Everybody Left Alive Is Innocent" 35526.

 

The Agency's Assets 362

APPENDIX

The Questions Whose Answers Are Secret 382

AFTERWORD

 by Admiral Earl P. Yates, USN (ret.) 391

ACKNOWLEDGMENTS   398

IN  D   E   X             401

Photographs appear following page 198

Prologue

As this book goes to press, the United States Government is consumed with a foreign policy scandal. Arms were secretly sold to an Iranian government that the U.S. administration publicly preached against, and there was at least the intention to divert some of the proceeds to evade a Congressional prohibition on aiding rebels trying to overthrow the Government of Nicaragua. To keep the activity secret, the White House conducted its arms sales and Contra supply operations through a network of supposedly private citizens, most of whom had recently held jobs with the armed forces or Central Intelligence  Agency. Not only were laws broken governing the conduct of foreign policy, but private profits were evidently made in the process, of a size still being determined. There are daily expressions of shock and outrage about the "privatization" of foreign policy, and about the White House's obsession with covert activity, as if these were inventions of the Reagan Administration. They weren't. The need, claimed by the past eight presidents, to pursue a perpetual and largely secret global war by fair means or foul against what is said to be are relentlessly expanding Soviet empire has justified gross violations of American law against the interests of American citizens for forty years. What is happening new in1987 is that a window has suddenly been opened on this shadow world before the spooks who inhabit it could completely take cover. By dealing with such an unreliable co-conspirator as Iran, some of whose leaders delighted in exposing the arms sales, the Reagan Administration allowed its secret operations to be blown with unprecedented prematurity. Yet it is important to keep in mind that what we are seeing is not an aberration; the aberration is only that we are seeing it, and what we are seeing is still not the most of it. Nevertheless, some good may come from the unpleasant sight of so many greedy arms dealers and callous and bumbling ex-generals. Some good may come from the sense that all we achieved by sneaking.

COLBY:      T h  o  u  g h     n  o  w     a    l  a  w  y  e  r         I n    pr  i v  a t e    p  r a c t  i  c  e,    C o  l  b y   w  a s     a    c  a  r  e  e r    p  r o  f  e s s  i  on a  l    covert   operator    of    the    highest   order.   A long   rise   thr ough   the   ranks   had   b rough t   him   to   command of the CIA's station in Saigon in the 1960s. He ran all U.S. "intelligence"  operations in the Vietnam War  theater, including Operation Phoenix, a Stalin-like program that fingered

The End of the Rainbow

"A .30-calibre rifle was held by him," Sergeant Brown went on, "the butt resting inthe passenger-side floor well. His left hand held the barrel, three or four inches from themuzzle, and near the right side of his head. His right hand rested near the trigger. Therewas lots of blood over the console, the front seats, and front and rear floor wells. Therewas lots of blood on the head of the person. The rifle had a live round in the breech, onein the magazine. There was a spent cartridge in the right passenger-side floor well."Of the throng that crammed the little courthouse that week, Sergeant Brown andConstable Cross were among the few who believed that Francis John Nugan, the man inthe Mercedes, had committed suicide. In the three months since the body had beenfound, facts had leaked out about Frank Nugan's life that led most people to suspect,even presume, murder.But whatever the facts of Nugan's life, the facts of his death told the local policeotherwise. The autopsy had found no trace of drugs, poison, or prior injury. Nugan diedof a single gunshot wound. Given the moat of undisturbed gore that surrounded hisbody, there seemed to be no way that someone else could have gotten into the car, killed him, and left. Later, all this would be of great interest to politicians. But at this juncture the debate was being staged by insurance lawyers. They had been hired to try to establish facts that would relieve their clients, various companies, of responsibility under Nugan's millions of dollars in insurance policies. One large creditor had himself taken out a $1-million policy on Nugan; this policy, which Nugan's intimates weren't aware of, now stood to make the creditor rich for the first time in his life, unless it was challenged."Would you agree it is almost impossible to get yourself into that position?"pressed lawyer Barry Edmund Mahoney of Commonwealth Assurance Ltd."What position?" replied Sergeant Brown."The one you describe, with the head about a foot below the muzzle, which was itself being held by the left hand," said Mahoney. Then he spoke the words the gallery had been waiting for: "I suggest to you one would have to be a contortionist!"The reporters had their lead. Sergeant Brown, unfazed, replied, "It didn't appear to be any great distortion, viewing it." But in the newspapers his reply got second billing to the lawyer's "

contortionist" remark. So did Sergeant Brown's further observation that he had plotted a trajectory from the rifle, through Nugan's head, to the bullet mark in the roof of the Mercedes."They were all very close to being in alignment," Brown said.That all pointed to suicide—a scenario the United States Central Intelligence Agency would be able to live with. Other aspects of Brown's testimony, however, were much more disturbing, to the CIA and others. For example, there was a list found in Nugan's briefcase—it came to be known as "the body list"—containing scores of typed names of prominent Australian political, sports, business, and entertainment personalities. Next to the names were hand written dollar amounts, mostly five- and six-figure sums. Were these debtors? Creditors?  No one knew yet. Then there was the Bible, a New Testament, found on the body. It bore, in Nugan's handwriting, the inscription, "I place this day my life, my work, my loved ones in the Lord's hands, He is so good and it will be a good day I believe, I believe this will be a glorious magical miraculous day, he is with me now, Jesus walks with me now. Visualize one hundred thousand customers world-wide, prayerize, actualize."Interleaved at page 252 of the Bible were two pieces of paper. One bore a telephone number in Long Beach, Florida. Nugan had just been negotiating the purchase both of a swank home near Long Beach and of controlling interest in a nationally chartered U.S. bank near there; the bank's best-known customer was the U.S. Air Force. The other piece of paper, by Sergeant Brown's description, was "what looks like the remnants of a meat pie bag." On it, Brown testified, were written "the names of Congressman Bob Wilson—and Bill Colby.

"WILSON:  The  ranking  Republican  on  the  U.S.  House  of  R e p r esentatives  Armed  Services Committee. A few weeks before Nugan's death, Congressman Wilson, his wife, fellow Congressman Richard Ichord, and their staff had been out dining with Nugan's American business partner, who had himself worked for the CIA






The Crime of Patriots –

A True Story of Dope,

Dirty Money and the CIA

BY Jonathan Kwitny

https://www.scribd.com/doc/95815512/Kwitny-The-Crimes-of-Patriots-A-True-Tale-of-Dope-Dirty-Money-and-the-CIA-Iran-Contra-Scandal-1987

The Crime of Patriots – A True Story of Dope, Dirty Money and the CIA

BY Jonathan Kwitny

The Crimes of Patriots will reveal how an obscure Australian bank, Nugan Hand Ltd.,came to occupy the central position in a vast network of drug transactions, fraud, secretarms deals, and  covert intelligence operations.

"The Crimes of Patriots is a masterpiece, pulling together previously  unavailable do c u m e n t a t I o n  in  a  m o s  t c r e  a t i v e   w a y  a  n d —t h r o u g h  K w I t n y' s  o r ig i n a l  r e s e a r c h—

addressing the crucial questions to the most mysterious collection of intelligence handsever caught in a single scandal. The answers Kwitny gathers and the new questions heraises are a roadmap for a major Congressional investigation yet to come."—Scott Armstrong

"As this book so clearly demonstrates, Jonathan Kwitny  is  a peerless investigative r e p o r  t e  r."—Peter Maas

In a government of laws, the existence of the government will be imperiled if it fails toobserve the law scrupulously. Our government is the potent, the omnipotent, teacher.For good or ill, it teaches the whole people by its example. If government becomes alawbreaker it breeds contempt for law: it invites every man to become a law untohimself. It invites anarchy.

Justice Louis D. B RANDEIS

For some time I have been disturbed by the way [the] CIA has been diverted from itsoriginal assignment. It has become an operational arm and at times a policy-making armof the Government. This has led to  trouble and may have compounded our difficulties inseveral explosive areas.I never had any thought when I set up the CIA that it would be injected intopeacetime cloak and dagger operations. Some of the complications and embarrassmentsthat I think we have experienced are in part attributable to the fact that this quietintelligence arm of the President has been so removed from its intended role that it isbeing interpreted as a symbol of sinister and mysterious foreign intrigue—and a subjectfor Cold War  enemy propaganda.With all the nonsense put out by Communist propaganda about "Yankeeimperialism," "exploitive capitalism," "war-mongering," "monopolists" in their name-calling assault on the West, the last thing we needed was for the CIA to be seized uponas something akin to a subverting influence in the affairs of other people. . .  .But there are now some searching questions that need to be answered. I, therefore,would like to see the CIA be restored to its original assignment as the intelligence armof the President, and whatever else it can properly perform in that special field, and thatits operational duties be terminated or properly used  elsewhere.We have grown up as a nation, respected for our free institutions and for our abilityto maintain a free and open  society. There is something about the way the  CIA has beenfunctioning that is casting a shadow over our historical position, and I feel that we needto correct it.

HARRYS. TRUMAN, December 22, 1963

 

"There  is  a  secret  g ove r n me n t  in America. It  operates with  the  explicit  and  I mp l i e d   authority of the highest officials, and in the name of America's interests it has inflicted great damage on the unsuspecting peoples of other countries and on our own  fundamental  p r i  n c  i  p l  e s...   I   w i  sh    e v e r  y o n e   wo u l d    r e ad    The   C ri m e s   of   Pat r i o t s .   Perhaps then  the  current  hearings  on  the  Iran-Con t r a  aff a i r—for  Ro n a l d  Rea g a n  is  the  latest to wield this secret weapon and to perish by it—will be the last. An informed people  might  become  an  outraged  pe o p l e  and  finally  put  a  stop  to  our  own self -  destruction.  If so, we  will owe much to Jonathan Kwitny's reporting."—Bill Moyes

"It is unusual to commend a book of investigative journalism that leaves some questions unanswered, but Jonathan Kwitny's account of the Nugan Hand affair transcends ordinary journalism. The Crimes of Patriots is the story of a reporter at work trying to balance issues of criminality and national security, and Kwitny left me with the sense that no one could have done it better."—Seymour Hersh

"This is a superbly researched and exceptionally well-told story."—John Kenneth Galbraith

"Jonathan  Kwitny  is  the  John  Le  C ar re  of  nonfiction  crime.  Sometimes  when  I  was w a ll o wing  I n The Crimes  of  Patriots  I  burst  out laughing  (perversely)  because  the  kings  of  this complicated idyl  are such shameless rogues. Is there no limit to their white-collar mischief?  Kwitny has raised the question again, as only he can."—Robert Sherrill

The Crimes of Patriots is the story behind the story revealed in the Iran-contra investigation. It is a chilling glimpse into the workings of the secret government that has operated  ruthlessly  in  this  country  and  around  the  world  for  the  last  forty  years, unchecked, answerable only to itself. It is a masterpiece of investigative journalism that reveals the sordid truths shrouded within the "national security interest."

A rifle blast  blows off the  head of an  Australian banker in his Mercedes—and a tale of the whole Cold War begins to unravel. The death of Frank Nugan exposes the  massive fraud at the  heart  of  his empire, the  Nugan  Hand  Bank; but it also exposes the real power of  the bank—a  network of  U.S.  generals,  admirals, and  CIA  men,  including  a  former  director  of  that  organization.  As the colourful story of the Nugan Hand Bank unfolds, we learn that there have been many similar operations.  Patterns  and  eerie  resonances  emerge,  and  the  names  of  those  who  later  masterminded  the Iran-contra  fiasco  lurk  in  the  shadows  cast  by  Nugan Hand: Clines, Shackley, Secord. We are slowly brought to a greater truth. In his last book, Endless Enemies, Jonathan Kwitny showed how our anti-communist based foreign policy undermines American security. Here he exposes  at  last  the  crimes  committed  against  American  citizens  in  pursuit  of  that  policy.  He  shows  how some  of   the  biggest  names  in  American  defense  and  intelligence  were  involved  in  an  operation  that promoted the dope trade, tax evasion, and gun running, and swindled American citizens, and citizens of allied countries,  out  of  millions  of  dollars.  Kwitny  lays  out  a  mystery  filled  with questions whose answers—so far—have stayed locked in the U.S. government's vault of secrets.

JONATHAN  KWITNY ,

 

a  Wall  Street Journal reporter for sixteen years, is one of America's foremost journalists and holds the honor  medal for career achievement  from  the  University  of Missouri  School  of Journalism . His  reporting  exposed former Reagan adviser Richard Allen's conflicts of interest, and forced the resignation of Lynn Helms, Reagan's Federal Aviation administrator. This  is Jonathan  Kwitny's  sixth  book. His fifth, Endless Enemies:  The Making of  an Unfriendly World, was runner-up for the Pulitzer Prize in general non fiction in 1985. Mr. Kwitny has lived or travelled  in more than ninety countries. A native of Indianapolis, he works from t he Journal's New York bureau.

Author's Note for The Crimes of Patriots

For five years prior to the publication of this book, the author tried repeatedly and fruitlessly to interview and obtain comment from Richard Secord, Theodore Shackley, and Thomas Clines, former high federal officials connected to Edwin Wilson, the traitor and convicted death merchant. Some of these efforts are described in the book. At the eleventh hour, as books were sitting on the warehouse loading docks waiting to be shipped to bookstores, Clines, Shackley, and Secord's lawyer, Thomas Green, contacted the publisher, stating that they had obtained a proof copy of the book and alleged that there were numerous errors in it. I have reviewed these specifics, along with my own sources, and I find that the men were, on the whole, treated fairly. As usually happens, comment from the subjects being written about did reveal a few erroneous details and conflicting versions of events.— J.K. August 12, 1987


Marijuana Australiana

 

Marijuana Australiana:

 

Cannabis Use, Popular Culture, and the Americanisation  of Drugs Policy in Australia, 1938 - 1988

John Lawrence Jiggens, BA

Centre for Social Change Research

Carseldine Campus

QUT

 

Submitted  in requirement for the degree,

Doctor of Philosophy,  April 2004

Marijuana Australiana

KEY WORDS:

Narcotics, Control of — Australia, Narcotics and crime — Australia, Cannabis use —

Australia, Popular Culture — Australia, Drugs policy — Australia, Organised crime —

Queensland, New South Wales, Cannabis prohibition — Australia, Police

corruption — Queensland, New South Wales, the counter-culture — Australia, Reefer

Madness — Australia, the War on Drugs — Australia, Woodward Royal Commission

(the Royal Commission into Drug Trafficking), the Williams Royal Commission

(Australian Royal Commission into Drugs), the Fitzgerald Inquiry, the Stewart

Royal Commission (Royal Commission into Nugan Hand), Chlorodyne, Cannabis —

medical use, cannabis indica, cannabis sativa, Gough Whitlam, Richard Nixon,

Donald Mackay, Johannes Bjelke- Petersen, Terry Lewis, Ray Whitrod, Fast Buck$,

Chris Masters, John Wesley Egan, the Corset Gang, Murray Stewart Riley, Bela

Csidei, Maurice Bernard 'Bernie' Houghton, Frank Nugan, Michael Jon Hand, Sir

Peter Abeles, Merv Wood, Sir Robert Askin, Theodore (Ted) Shackley, Fred Krahe,

James (Jimmy) Bazley, Gianfranco Tizzoni, Ken Nugan, Brian Alexander.

ABSTRACT

The word 'marijuana' was introduced to Australia by the US Bureau of Narcotics via

the Diggers newspaper, Smith 's Weekly, in 1938. Marijuana was said to be 'a new

drug that maddens victims' and it was sensationally described as an 'evil sex drug'.

The resulting tabloid furore saw the plant cannabis sativa banned in Australia, even

though cannabis had been a well-known and widely used drug in Australia for many

decades.

In 1964, a massive infestation of wild cannabis was found growing along a stretch

of the Hunter River between Singleton and Maitland in New South Wales. The

explosion in Australian marijuana use began there. It was fuelled after 1967 by US

soldiers on rest and recreation leave from Vietnam. It was the Baby-Boomer young

who were turning on. Pot smoking was overwhelmingly associated with the

generation born in the decade after the Second World War. As the conflict over the

Vietnam War raged in Australia, it provoked intense generational conflict between

the Baby-Boomers and older generations. Just as in the US, pot was adopted by

Australian Baby-Boomers as their symbol; and, as in the US, the attack on pot

users served as code for an attack on the young, the Left, and the alternative.

In 1976, the 'War on Drugs' began in earnest in Australia with paramilitary

attacks on the hippie colonies at Cedar Bay in Queensland and Tuntable Falls in

New South Wales. It was a time of increasing US style prohibition characterised by

'tough-on-drugs' right-wing rhetoric, police crackdowns, numerous murders, and a

marijuana drought followed quickly by a heroin plague; in short by a massive

worsening of 'the drug problem'. During this decade, organised crime moved into

the pot scene and the price of pot skyrocketed, reaching $450 an ounce in 1988.

Thanks to the Americanisation of drugs policy, the black market made 'a killing'.

In Marijuana Australiana I argue that the 'War on Drugs' developed — not for

health reasons — but for reasons of social control; as a domestic counter-revolution

against the Whitlamite, Baby-Boomer generation by older Nixonite Drug War

warriors like Queensland Premier, Bjelke-Petersen. It was a misuse of drugs policy

which greatly worsened drug problems, bringing with it American-style organised

crime.  As the subtitle suggests, Marijuana Australiana relies significantly on

'alternative' sources, and I trawl the waters of popular culture, looking for

songs,  posters, comics and underground magazines to produce an 'underground' history of  cannabis in Australia. This 'pop' approach is balanced with a hard-edged,

quantitative analysis of the size of the marijuana market, the movement of price, and  the seizure figures in the section called 'History By Numbers'.

As Alfred McCoy  notes, we need to understand drugs as commodities. It is only through a detailed  understanding of the drug trade that the deeper secrets of this underground world can  be revealed. In this section, I present an economic history of the cannabis market and  formulate three laws of the market.

 

Marijuana Australiana 

In my  opinion, Bottom's great, unstated theme is the Americanisation of organised crime in  Australia in the seventies, though Bottom himself 

does not seem to recognise this.  

The Godfather in Australia is (mostly) an excellent piece of reportage, but the  early chapters are, especially in comparison with Drug Traffic and The Prince and the Premier, an inferior and wrong-headed history of organised crime in Australia.

In these chapters, Bottom suggests that organised crime in Australia is dominated by a secret Italian society, which I find extremely dubious, if not racist. The Italian  presence, like the Lebanese and Chinese, is undeniable; but the Irish — the Kellys  and the Murphys — 

take precedence over the Sergis and the Bellinos; and above all  the ethnics are the corrupt members of the Sydney Establishment 

and their American  gangster friends.  

In this regard, the mirror world of the illegal drug trade simply reflects the power  structures of the public world. 

It is simple economics that the Americans dominate the world illicit drug trade because the US drugs market is the largest

in the world, something like 50% of the world drug trade.

As a consequence, Australia, like many  other countries, finds itself embroiled in the violence and politics of the $200 billion  US drugs black market. It is only our traditional subservience to 'our great and  powerful ally' which makes us shrink from this truth.

In marked contrast to the works of the three blind commissioners, the Sackville

Royal Commission into the Non-Medical Use of Drugs in South Australia

represented a thoughtful examination of the drug problem in Australia. Headed by a

triumvirate consisting of a professor of law, a professor of medicine and a professor  of sociology, and aided by an exceptional research team,

 the various publications of  the Sackville Royal Commission have the advantage of being written by people who were experts in the field, rather than by judges. I would single out two of their  productions for praise: John Lonie's (1978) A Social History of Drug Control in  Australia; 2,1 and Keith Windshuttle' s unpublished monograph Drugs and the Press,

1977-1979 22 . Windshuttle's analysis is that the media play a dubious,

 double role, simultaneously glamorising drugs and drug use while condemning them.

Windshuttle summarised this 'Reefer Madness' style as a formula consisting of titilation, followed by arousal, followed by condemnation.

Predictably, the Sackville  Commission's sensible and intelligent Final Report 33 was savaged by the Murdoch  media with this same formula of moral 

outrage and condemnation. I would like to express my gratitude to the Department of the Premier and Cabinet (South Australia) 

 for granting me access to the Sackville Archives.

Marijuana Australiana is thus a history of an illicit world, the world of cannabisuse and cannabis users in Australia between 1938 and 1988, 

which uses significant illicit sources. It is in five parts. The first part looks at the ending of legal cannabis in  Australia in the years following 1938, 

when the word 'marijuana' was first  introduced into Australia. The second part looks at the rebirth of cannabis use  

amongst the Baby-Boomer young during that decade of dissent (1964 -1975) known  variously as the Vietnam years and the Whitlam years. 

The third part looks at the launch of the War on Drugs in the decade that followed the dismissal of the Whitlam  government in the 'constitutional coup' of 


November 1975, and describes the social  forces that propelled this Americanisation of drugs policy in Australia. The fourth  part is an economic history of the Australian cannabis market in the period 1973-  1998, called 'History By Numbers'. The fifth part synthesises this economic history  with the previous literary history to explain the 'mega-features' of the War on Drugs  period, and to provide an insight into the top of the Australian cannabis trade. While the third part examined the War on Drugs from the bottom level, from the level of  the ordinary cannabis user, the fifth part examines the cannabis trade at the highest  level, the level of international drug traffickers, the level of Nugan Hand and the  Sydney Connection. 


Nugan Hand Bank General Information

https://en.wikipedia.org/wiki/Nugan_Hand_Bank]

Nugan Hand Bank was an Australian merchant bank that collapsed in 1980 after the suicide of one of its founders, Australian lawyer Francis John Nugan, resulting in a major scandal.[1] News stories suggested that the bank had been involved in illegal activities, including drug smuggling, arranging weapons deals, and providing a front for the United States Central Intelligence Agency. Speculation grew when it became known that the bank had employed a number of retired United States military and intelligence officers, including former CIA director William Colby.

Investors' losses and the speculation surrounding the bank's activities led to three major government investigations over the next five years. The bank's co-founder, American Michael Jon Hand, and two other bank employees were indicted for conspiring to "pervert the course of justice" by destroying or removing bank records. Hand fled abroad in June 1980. In 1985, a Royal Commission of Inquiry found that while the bank had committed numerous violations of banking laws, the allegations of drug-smuggling, arms dealing and involvement in CIA activities were not substantiated.[2][3]

Founding

Nugan Hand Ltd. was founded in Sydney in 1973 by Australian lawyer Francis John "Frank" Nugan and former U.S. Green Beret Michael Jon "Mike" Hand. According to writer Alfred W. McCoy, the bank was formed with a fraudulent claim of $1m in share capital: "With only $80 in the company's bank account and just $5 in paid-up capital, Frank Nugan wrote his own company a personal check for $980,000 to purchase 490,000 shares of its stock. He then covered his massive overdraft by writing himself a company check for the same amount."[4] Kings Cross restaurateur Bernie Houghton was also involved in the bank from the beginning.[5]

The Nugan Hand Bank attracted investors with promises of up to 16% interest rates on their deposits and assurances of anonymity, tax-free accounts, specialist investment assistance, along with more surreptitious services such as money laundering. Nugan Hand rapidly gained business and expanded its offices from a single Sydney office to a global network that included branches (registered in the Cayman Islands) in Chiang Mai, Manila, Hawaii, Singapore, Hong Kong, Taiwan, Cayman Islands and Washington D.C..

According to a former employee speaking in 1980, the bank paid commission of up to 2.5% on unsecured investments of $1m or more, when the going rate was around 0.25%. Together with related costs, the bank was paying over 12% to access funds.[6] Yet the bank never became involved in traditional merchant banking activities like equity investment or mortgage financing; instead, its principals sought all manner of unconventional investment opportunities, including gun running and attempts to corner various commodities markets, such as Malaysian rubber and Indonesian oil.[6] Via its Cayman Islands subsidiary it also provided tax avoidance and evasion schemes.[6]

The Nugan Hand Bank gained respectability by the recruitment of a number of retired senior U.S. military and intelligence personnel, such as former Rear AdmiralEarl P. Yates as bank president and ex-CIA head William Colby as legal counsel.[7]

Australian trucking magnate Peter Abeles was also connected with the bank.[8]

Bernie Houghton became the bank's Saudi Arabian representative;[9] but eventually had to flee that country in a hail of bullets, as depositors sought to recover their money.[10]

Michael Hand had formed a close business and social relationship with former Sydney police constable and underworld "patron", Murray Stewart Riley.[11] From April 1976, Hand initiated five cash transfers totaling $295,000 to the Hong Kong office. Riley’s subordinates used these funds to buy heroin that was then shipped to Australia. Upon Riley’s advice, Hand opened branches in Thailand “to attract drug money” and two years later, ordered the destruction of all incriminating records relating to Riley’s money transfers.[12]

Collapse and Scandal

The bank's collapse was precipitated by the death of its founder Frank Nugan in the early hours of 27 January 1980. Nugan (who was facing charges of stock fraud) was found shot dead by a .30-calibre rifle in his Mercedes-Benz outside Lithgow, New South Wales. An inquest later returned a verdict of suicide. However, questions remain unanswered in regard to the lack of fingerprints on the weapon and the probability that the police who found Nugan had prior knowledge of his death.[13]

Suspicions about the bank's activities grew in subsequent days as details of the contents of Nugan's car emerged. Of special interest was the business card of William Colby. Furthermore, Nugan's office had been ransacked and Hand and Yates had ordered important company files destroyed or hidden elsewhere.[14] Peter Butt states that Brian Alexander who was on bail, due to charges related to the Mr Asia drug syndicate, accompanied investigators when they searched the deceased Nugan's home. During the search, the investigators were interrupted by police officers who were responding to an anonymous phone caller who had claimed that police were in trouble at the residence. During this period, Alexander roamed freely and had the opportunity to remove incriminating documents.[15]

The official inquest into Nugan's death in April 1980 made front-page news amid testimony from Hand that Nugan Hand was insolvent, owing at least A$50 million (and as much as hundreds of millions), including $20,000 rent on their Sydney headquarters.

After destroying many of Nugan Hand's records, Hand fled Australia under a false identity in June 1980.[16]

Investigations

Three major government investigations issued reports devoted to the activities of Nugan Hand. Two of these were from bodies specifically created to examine the scandal: the first, the Commonwealth-New South Wales Joint Task on Drug Trafficking, consisted of investigators from federal and state government, and lasted from 1980 to 1983; the second, the Royal Commission of Inquiry into the Activities of the Nugan Hand Group, was headed by Donald G. Stewart, and lasted from 1983 to 1985. In addition, the Corporate Affairs Commission of New South Wales, a state level organ charged with regular oversight of business activities in New South Wales, began looking into the bank almost immediately after Nugan's suicide[17] and issued seven interim reports from 1980 until 1983, when it completed its investigation.

A report by the New South Wales Corporate Affairs Committee linked former Philippine president Ferdinand Marcos to the bank.[18] Melbourne and Manila businessman Ludwig Petre Rocka had an account at the bank, as did his wife Elizabeth E. Marcos, sister of Ferdinand. Rocka had helped set up the Manila branch of Nugan Hand and had his Manila office (International Development & Planning Corporation) in the same office as the bank.

The Royal Commission found that the Nugan Hand Bank was implicated in money-laundering, illegal tax avoidance schemes, and widespread violations of banking laws.[19] One witness, a former Nugan Hand director, stated that Hand threatened bank executives: "If we didn't do what we were told, and things weren't handled properly, our wives would be cut into pieces and put in boxes and sent back to us".[20] However, the Royal Commission did not find credible evidence of drug-smuggling, arms dealing, and CIA involvement.

The Royal Commission found that suggestions of "CIA connections" were widespread, stretching back to an apparent confirmation by a Taiwanese general in 1978. However, the Commission argued there was a lack of specific allegations, let alone evidence to substantiate them.[21] The Commission argued that the CIA would "shy away from having anything at all to do" with such a badly run bank.[22] The Commission dismissed claims that Houghton was a CIA agent, and that the bank was disseminating money for the CIA.[23] The Commission accepted Colby's evidence that he was merely giving legal advice to Nugan and Hand relating to either or both of them taking up residence in the United States.[24][25]

The Commission concluded that Yates, who had apparently been recruited by Hand, was responsible for the involvement of other retired military and intelligence personnel.[26] According to the Commission, Hand believed they would instil confidence in the bank, and their knowledge of South East Asia would be advantageous.[26] Stewart later commented that the involvement of these figures gave the impression that the bank had connections that it did not actually have.[27]Apart from the bank accepting deposits with no questions asked, the Royal Commission found no credible evidence of involvement in the drug trade.[28] However, Stewart stated in his memoirs that he had "no doubt" that Houghton, Nugan, and Hand played a part in drug trafficking at Houghton's Kings Cross establishments.[29]

The Royal Commission's findings conflict with the findings of the 1982 NSW Joint Task Force on Drug Trafficking which found that Hand had encouraged Murray Riley and his associates to use Nugan Hand facilities to move drug money.[30] Task Force investigator, Clive Small, concludes that the Stewart Royal Commission was a whitewash:

The royal commission was so dismissive of an American connection that many people who read it simply felt that it was a cover up, because it was in effect so superficial and so dismissive. It never attempted to put into context its findings with the findings of the Joint Task Force, which have not been found to be in any way, shape or form inaccurate or unreliable”.[31]

No one connected with Nugan Hand has ever been convicted of a crime.

Allegations of CIA Involvement…

Politician and jurist, John Dowd, states that Nugan Hand became the vehicle to quietly move drug industry money. Dowd advises that this led to dealing with corrupt governments and the CIA, but in Australia during the 1970-80s, the CIA was seen as "the good guys".[32] Similarly, former NSW Attorney General, Frank Walker, insists that from the government’s perspective, having good relations between ASIO and the CIA was more important than bringing criminals to justice.[33]

Investigative authors, Kwitney J. (1987) and McCoy A.W. (1991) asserted that Nugan Hand Bank had facilitated the international movement of illegal funds for both drug smugglers and the CIA. The Stewart Royal Commission’s decision that there was no evidence to support these allegations astonished these early investigators.[34]

Revelations by the American defence industry employee, Christopher Boyce, initiated speculation that the CIA and Nugan Hand had also played some part in the dismissal of Australian Prime Minister, Gough Whitlam. For instance, William Blum (1999) states inter alia, that the bank allegedly transferred $2.4 million to the Liberal Party of Australia which contested two forced elections in 1974 and 1975 to oust Whitlam's Labor government. He also states that the Governor General, Sir John Kerr, who was instrumental to the dismissal, was referred to by the CIA as “our man”.[35] The CIA responded to these allegations with an emphatic denial: “The CIA has not engaged in operations against the Australian Government, has no ties with Nugan Hand and does not involve itself in drug trafficking.”[36]

Cooperation from the American agencies did not extend to other Australian investigators. NSW Corporate Affairs investigators, Geoffrey Nicholson and Rick Porter, in association with the Nugan Hand liquidator, John O’Brien, requested documents from the FBI and also the CIA. They received documents from both agencies that were so heavily redacted that they were useless.[37] Joint Task Force investigators also made requests through ASIO to the CIA asking for information. Inexplicably, the requests were never passed on by ASIO.[38]

In 1981, Prime Minister Malcolm Fraser, who had hoped the Nugan Hand controversy would fade away , stood before the parliament and told the Australian public that the CIA had no interest in the bank. However, Fraser’s assurances were challenged by journalist, Brian Toohey, who wrote that a former CIA agent had told him that Patry E Loomis had worked for the CIA and allegedly arranged for huge sums of money to pass through Nugan Hand for various intelligence operations around the world.[39] Details in Seymour Hersh’s (1981) article ‘The Qaddafi Connection’ in The New York Times supported Toohey’s assertions.[40]

In an interview with documentary maker Peter Butt, Michael Hand’s military colleague and Nugan Hand ‘fixer’, Douglas Sapper, claimed that Nugan Hand Bank had been a conduit for CIA money.[41]

Locating Hand

In March 1991, the Australian magazine The Eye reported that Michael Hand was living in the United States, giving an address and other details,[42] but Australian authorities declined to pursue an extradition.[43]

In November 2015, the Sydney Morning Herald reported that Peter Butt had located Hand living under the name Michael Jon Fuller in Idaho Falls, Idaho.[44] Peter Butt queried the failure of the FBI to find him, given that Fuller's social security numbers are identical to Hand's.[45]

References

  1.  Pilger, John, A Secret Country, Vintage Books, London, 1992, ISBN9780099152316, pp. 208, 209-12, 231, 307, 318.
  2. Jump up^ "Royal commission report: Nugan Hand 'not into drugs, arms'". The Canberra Times. ACT. 1985-11-28. p. 8. Retrieved 2015-05-03.
  3. Jump up^ Final report of the Royal Commission of Inquiry into the Activities of the Nugan Hand Group (Report). 2. Sydney: Government Printer. 1985. pp. 859, 930, 744.
  4. Jump up^ McCoy, Alfred W. (1991). The politics of heroin: CIA complicity in the global drug trade. Lawrence Hill Books. pp. 462–478. ISBN 1556521251.
  5. Jump up^ Stewart, Don (2007). Recollections of an Unreasonable Man. Sydney: ABC Books. pp. 164–165. ISBN 9780733318948.
  6. ^ Jump up to:a b c Sydney Morning Herald, 26 September 1980, Ambitious schemes never eventuated: Chase after an elusive 'big deal'
  7. Jump up^ Stewart, Don (2007). Recollections of an Unreasonable Man. Sydney: ABC Books. pp. 166–167, 171–172. ISBN 9780733318948.
  8. Jump up^ Tony Reeves, Mr Sin: The Abe Saffron Dossier, Allen and Unwin, Sydney, 2007, p 84.
  9. Jump up^ Sydney Morning Herald, 25 September 1980, The last 20 frantic day's of Frank Nugan's life: Desperate bid to save bank empire

10. Jump up^ Stewart, Don (2007). Recollections of an Unreasonable Man. Sydney: ABC Books. p. 170. ISBN 9780733318948.

11. Jump up^ NSW Joint Task Force, Report, Vol 2, Nugan Hand, 330.

12. Jump up^ McCoy Alfred W. (1991) 468.

13. Jump up^ Peter Butt (2015). Merchants of Menace. Sydney: Blackwattle Press. pp. 166–168, 192–200.

14. Jump up^ Butt P.2015, 173-179.

15. Jump up^ Butt P. 2015,171- 172.

16. Jump up^ Sheehan, Paul; Tom Ballantyne & Greg Wilesmith (21 August 1981), "How Michael Hand Left Australia"Sydney Morning Herald

17. Jump up^ Kwitny, p. 333

18. Jump up^ Foley, Stephen (8 April 1983), "NSW report shows link with Marcos relatives", The Age

19. Jump up^ "Cabinet Documents on the Inquiry into the Nugan-Hand Group : Government of the Commonwealth of Australia". Internet Archive. Retrieved 2015-10-03.

20. Jump up^ Morton, James & Susanna Lobez (2010), Dangerous to Know: An Australasian Crime Compendium, Melbourne University Publishing, p. unknown, ISBN 978-0-522-85681-1 Morton and Lobez cite John Owen's 1983 book Sleight of Hand: The $25 Million Nugan Hand Bank Scandal for the claim.

21. Jump up^ Final report of the Royal Commission of Inquiry into the Activities of the Nugan Hand Group (Report). 2. Sydney: Government Printer. 1985. pp. 740–741, 744.

22. Jump up^ Final report of the Royal Commission of Inquiry into the Activities of the Nugan Hand Group (Report). 2. Sydney: Government Printer. 1985. p. 744.

23. Jump up^ Final report of the Royal Commission of Inquiry into the Activities of the Nugan Hand Group (Report). 2. Sydney: Government Printer. 1985. pp. 744–745.

24. Jump up^ Final report of the Royal Commission of Inquiry into the Activities of the Nugan Hand Group (Report). 2. Sydney: Government Printer. 1985. pp. 749–750.

25. Jump up^ Stewart, Don (2007). Recollections of an Unreasonable Man. Sydney: ABC Books. pp. 171–172. ISBN 9780733318948.

26. Jump up to:a b Final report of the Royal Commission of Inquiry into the Activities of the Nugan Hand Group (Report). 2. Sydney: Government Printer. 1985. p. 742.

27. Jump up^ name="Stewart 2007 166–167, 171–172"

28. Jump up^ Final report of the Royal Commission of Inquiry into the Activities of the Nugan Hand Group (Report). 2. Sydney: Government Printer. 1985. p. 859.

29. Jump up^ Stewart, Don (2007). Recollections of an Unreasonable Man. Sydney: ABC Books. p. 165. ISBN 9780733318948.

30. Jump up^ Commonwealth-New South Wales Joint Task Force on Drug Trafficking,June 1982, Report. Volume 2. Nugan Hand (Part 1),442.

31. Jump up^ Butt P. 2015, Author’s interview with Clive Small , 236.

32. Jump up^ Butt P. 2015, Author’s interview with John Dowd, 265.

33. Jump up^ Butt P. 2015, Author’s interview with Frank Walker, 264.

34. Jump up^ Butt P. 2015, 233.

35. Jump up^ Blum, W. 1999, 'Australia 1973-1975: Another free election bites the dust' in Killing Hope: US military and CIA interventions since World War II. Maine: Common Courage Press, p. 249.

36. Jump up^ Kwitney J. 1987, 354

37. Jump up^ Butt P 2015,Interview with Rick Porter, 220-223

38. Jump up^ Butt P. 2015, Interview of Clive Small, 228

39. Jump up^ Brian Toohey, National Times, 31 May 1981, p1.

40. Jump up^ Seymour Hersh, New York Times, 14 June 1981.

41. Jump up^ Butt P. 2015, Author’s interview with Doug Sapper,240.

42. Jump up^ Campbell, Rod (1991-03-27). "Notorious banker found, but who cares?". Canberra Times. p. 1. Retrieved 2015-05-03.

43. Jump up^ Campbell, Rod (1991-04-08). "No extradition for Hand". Canberra Times. p. 7. Retrieved 2015-05-06.

44. Jump up^ Murphy, Damien (2015-11-09). "Nugan Hand bank mystery: Michael Hand found living in the United States". Sydney Morning Herald. Retrieved 2015-11-10.

45. Jump up^ Butt P. 2015, 265



Michael J. Hand By John Simkin

August 1, 2006 in JFK Assassination Debate 

http://educationforum.ipbhost.com/topic/7574-michael-j-hand/

John Simkin Admin

There is not a great deal on the web on Michael J. Hand. He has not been seen since disappearing from Australia after the death of his partner, Frank Nugan. It is believed that the CIA arranged for him to start a new life in the US. Anyone know anything about him?

Michael Jon Hand, the son of a civil servant, was born in the Bronx on 8th December, 1941. According to Jonathan Kwitny in his book The Crimes of Patriots: A True Tale of Dope, Dirty Money, and the CIA: "Hand passed every class he took, and was noted for exceptional character, courtesy, cooperation, and appearance. His IQ registered an also exceptional 131."

In 1959 his mother died after falling or jumping from a third-floor window. Soon afterwards he attended a one-year course at the New York State Ranger School. This was followed by a year managing a sports school in Los Angeles.

In May 1963 Hand joined the US Army and started his training at Fort Bragg, North Carolina. During the Vietnam War he won the Distinguished Service Cross (DSC). According to the DSC citation he almost single-handedly held off a fourteen-hour Vietcong attack on the Special Forces compound at Dong Xaoi.

In 1966 he left the army to work "directly for the U.S, Government". Friends of Michael Hand have suggested that he was employed on undercover missions for the Central Intelligence Agency in Vietnam and Laos. One reported that he "helped train the mountain people - Montagnards - and worked closely with the Air America crews that supplied them". According to Jonathan Kwitny Hand worked under William Colby during the Vietnam War.

Michael Hand moved to Australia in September, 1967. At first Hand went to work selling development lots along the Australian coast. The company, Ocean Shores Development, was run by lawyer Fred Miller, a senior executive for the shipping empire owned by Sir Peter Abeles, the longtime business partner, Rupert Murdoch. One of the largest investors in this scheme was the singer Pat Boone. The registered directors included Boone of Beverly Hills, California and Patricia Swan of Sydney, Australia. Swan was Frank Nugan's secretary.

It was while working for Miller that Hand made contact with Bernie Houghton who had also moved to Australia in 1967. Houghton had established the Bourbon and Beefsteak Bar and Restaurant in Sydney. He claimed that he met Hand in the autumn of 1967. However, in one interview he admitted he had been told about Hand in 1964: "I had heard of Mike Hand's great combat exploits and courage, which was well-known in Vietnam."

Regular visitors to the Bourbon and Beefsteak Bar included two Central Intelligence Agency station chiefs in Australia (Milton Corley Wonus and John Denley Walker). Lieutenant Colonel Bobby Boyd, a Texan who was a former U.S. embassy military attaché in Latin America, also went to work for Houghton.

In 1969 Hand formed his own company called Australian and Pacific Holdings. His two partners were Clive Wilfred Lucas and John J. Foley. The plan was to develop an island off Australia's barrier reef. Hand and Lucas visited Vietnam where they raised $16,000 from members of the U.S. Army. On 16th January, 1970, the directors of Australian and Pacific Holdings decided to lend the $16,000 to Frank Nugan.

In May 1970 a list of Australian and Pacific's shareholders was filed with the government. Of the thirty-seven listed shareholders, four had the address c/o Air America whereas another had the address c/o Continental Air Service. Later both Air America and Continental Air Service exposed as a CIA front. Five shareholders were reachable through the U.S. Agency for International Development. This agency posed as a cover for CIA covert operatives such as David Sanchez Morales.

In the early 1970s Hand spent a lot of time travelling. A former CIA colleague, Douglas Sapper, claimed "Michael showed up in Laos a lot. I saw him in Phnom Penh (Cambodia) from time to time." Sapper also saw Hand with Houghton in Vietnam. Bernie Houghton later told the police that he was with Hand buying surplus U.S. war material for resale.

Houghton clearly had important contacts in Australia. When he applied for a new Australian visa in 1972, he gave the immigration officers the name of Leo Carter, director of the Australian Security Intelligence Organization (ASIO) in New South Wales, to support his application. Carter also arranged for him to get permission for unlimited re-entries to Australia in the future.

Allan Parks claims that Houghton was active in the drug trade in the 1970s. "There's no doubt about it, he'd fly anything. The Golden Triangle, that's where he got his opium from. There was one flight, he flew in slot machines. He did some deals over in India."

There is no doubt that Michael Hand and Frank Nugan were involved in promoting anti-socialist political causes. As Jonathan Kwitny points out in The Crimes of the Patriots: “By associating with the more hard-hat attitudes of the right wing of Labour, Nugan and Hand may have done more to help their cause than they could by sticking to the more right-wing parties. Certainly it is a standard ploy of the CIA to work less with the most openly anti-communist parties than with the anti-communist wing of the party on the borderline.”

In 1973 Michael Hand and Frank Nugan, an Australian lawyer, established the Nugan Hand Bank. Another key figure in this venture was Bernie Houghton, who was closely connected to CIA officials, Ted Shackley and Thomas G. Clines.

Nugan ran operations in Sydney whereas Hand established a branch in Hong Kong. This enabled Australian depositors to access a money-laundering facility for illegal transfers of Australian money to Hong Kong. According to Alfred W. McCoy, the "Hand-Houghton partnership led the bank's international division into new fields - drug finance, arms trading, and support work for CIA covert operations." Hand told friends "it was his ambition that Nugan Hand became banker for the CIA."

In 1974 the Nugan Hand Bank got involved in helping the CIA to take part in covert arms deals with contacts within Angola. It was at this time that Edwin Wilson became involved with the bank. Two CIA agents based in Indonesia, James Hawes and Robert Moore, called on Wilson at his World Marine offices to discuss "an African arms deal". Later, Bernie Houghton arrived from Sydney to place an order for 10 million rounds of ammunition and 3,000 weapons including machine guns. The following year Houghton asked Wilson to arrange for World Marine to purchase a high-technology spy ship. This ship was then sold to Iran.

By 1976 the Nugan-Hand Bank appeared to have become a CIA-fronted company. This is reflected in the type of people recruited to hold senior positions in the bank. For example, Rear-Admiral Earl P. Yates, the former Chief of Staff for Policy and Plans of the U.S. Pacific Command and a counter-insurgency specialist, became president of the company. Other appointments included William Colby, retired director of the CIA, General Leroy J. Manor, the former chief of staff of the U.S. Pacific Command and deputy director for counterinsurgency and special activities, General Edwin F. Black, former commander of U.S. forces in Thailand, Walter J. McDonald, retired CIA deputy director for economic research, Dale C. Holmgren, former chairman of the CIA's Civil Air Transport and Guy J. Pauker, senior Republican foreign policy adviser.

One of those that Earl P. Yates brought in to help the Nugan Hand Bank was Mitchell WerBell. Yates later told the Joint Task Force on Drug Trafficking he recruited WerBell as a consultant because he "had extensive experience in Central America".

On 27th November 1979 Michael Hand wrote to Ted Shackley. It concerned a meeting the two men had recently attended in Washington: "The opportunity of meeting you again on different terms was very enjoyable and I sincerely trust that something worthwhile businesswise may surface and be profitable for both of us."

Former CIA agent, Kevin P. Mulcahy later told the National Times newspaper "about the Agency's use of Nugan Hand for shifting money for various covert operations around the globe."

The investigative journalist, Jonathan Kwitny, became convinced that the Nugan Hand Bank had replaced the Castle Bank and Trust Company in Nassau, as the CIA's covert banker. The bank, run by Paul Helliwell, was forced to close after the Internal Revenue Service discovered that he Castle Bank was laundering CIA funds and drug profits.

On 7th January 1980, Robert Wilson (House of Representatives Armed Services Committee) and Richard Ichord (chairman of the Research and Development Subcommittee of the Armed Services Committee) had dinner with Bernie Houghton at the Bourbon and Beefsteak Bar and Restaurant in Sydney.

On 27th January, 1980, Frank Nugan was found shot dead in his Mercedes Benz. With his body was a Bible that included a piece of paper. On it were written the names "Bob Wilson" and "Bill Colby". Robert Wilson was a senior member of the U.S. House of Representatives Armed Services Committee and William Colby was a former director of the CIA.

Bernie Houghton was in Switzerland at the time and he immediately rang his branch office in Saudi Arabia and ordered the staff to leave the country. Houghton also visited Edwin Wilson's office in Geneva and left a briefcase with bank documents for safekeeping. Soon afterwards, a witness saw Thomas G. Clines going through the briefcase at Wilson's office and remove papers that referred to him and General Richard Secord.

Two days after Nugan died, Michael Hand held a meeting of Nugan Hand Bank directors. He warned them that unless they did as they were told they could "finish up with concrete shoes" and would be "liable to find their wives being delivered to them in pieces".

Michael Hand, Patricia Swan, Bernie Houghton and his lawyer, Mike Moloney, spent the next few days removing files from Nugan's office. They also began paying back selected clients. One estimate is that over $1.3 million was paid out in this way.

Frank Nugan's inquest took place in April, 1980. Testimony from Michael Hand revealed that Nugan Hand was insolvent, owing at least $50 million. Hand then promptly fled Australia under a false identity on a flight to Fiji in June 1980. Bernie Houghton also disappeared at this time and it is believed both men eventually reached the United States.

According to one witness, Thomas G. Clines helped Bernie Houghton escape. Michael Hand also left the country accompanied by James Oswald Spencer, a man who served with Ted Shackley in Laos. The two men traveled to America via Fiji and Vancouver. One report published in November, 1980, suggested that Michael Hand was living in South America. It claimed that he had managed to escape with the help of "former CIA employees".

An investigation by the Australia/New South Wales Joint Task Force on Drug Trafficking discovered that the clients of the Nugan Hand Bank included several people who had criminal convictions relating to drug offences including Murray Stewart Riley, Donald William McKenzie, James Lewis Williams, Malcolm Craig Lord, Charles Robertson Beveridge, Barry Graeme Chittem, Murray Don Newman, Bruce Alan Smithers, James Sweetman, James Blacker, Colin Courtney, Stephen Demos, John Brooking and John Ceruto. According to the records the bank was making $100,000 a year from tax advice. In reality, it was receiving it for money laundering.

One right-wing organization called Accuracy in Media defended the Nugan-Hand Bank claiming it was really an honest but hard-luck banking organization that had been maligned by an anti-military press.

The Australian government asked the Royal Commissioner D. G. Stewart to investigate the Nugan-Hand Bank scandal. The Stewart Royal Commission was published in June, 1985. It stated that the "Nugan Hand Ltd. was at all times insolvent... and flouted the provisions of the legislation as it then stood in that large volumes of currency were moved in and out of Australia".

Stewart went on to blame the dead Frank Nugan and the missing Michael Hand for the illegal activities of the bank. Rear-Admiral Earl P. Yates, William Colby, General Leroy J. Manor, General Edwin F. Black, Walter J. McDonald, Dale C. Holmgren, Guy J. Pauker and Bernie Houghton were considered blameless. Despite the evidence, Hand and Patricia Swan, Nugan's secretary, were accused of being the only ones "responsible for the shredding of documents".

http://www.spartacus.schoolnet.co.uk/JFKhandM.htm

 Michael Jon Hand



Paul-Helliwell-meeting-Michael-Hand-and-Frank-Nugan


 

John Kelly Experienced Member

Posted July 7, 2011

Posted July 7, 2011

To give the appearance of normalcy, Hand rented a flat at 35 Union Street Pyrmont but was actually staying at the Sebel Town House or Bernie Houghton's Elizabeth Bay penthouse. He used the name Alan Winter to leave the country. The real Winter was a normal guy, wife two kids, who worked as a butcher in Bexley. An associate of Hand approached Winter claiming he worked for an insurance company and secured his parent's birthdates, their marriage date and mother's maiden name. At the time, this is all one needed to request a birth certificate. This item plus two photographs would secure a passport. Hand donned a false beard to match Winter and without any problems, got a passport under the name Alan Winter. 48 hours later, Hand left the country. He travelled to Vancouver, then to Ohio (where he connected with the family of an Australian business associate) and then onto New York. Hand's aging father, who he was close to, was in a nursing home there. From here, Hand was guided by his Manhattan handler and disappeared into the murky world of intelligence. About a year after Frank Nugan's death, a Sydney business man claimed to have seen Nugan in a Atlanta bistro. He asked Nugan what he was doing here and got a one word reply, "reaping". Rumors abounded that Nugan was not the one killed in Lithgow but an Italian drug dealer. It was Nugan's brother (a man with somewhat of a shady background) who identified the body. FWIW. JK

Zach Robertson Experienced Member

Posted July 8, 2011


On 7/7/2011 at 10:39 PM, John Kelly said:

Hand was guided by his Manhattan handler and disappeared into the murky world of intelligence. JK

Hi Mr. Kelly,

First off, I just want to say that I very much enjoy reading your posts. They are filled with great insight.

I was wondering if you could share who the Manhattan connection to this is? I seem to remember reading about a man by the name of John Martin who was supposedly from NYC and associated with Intel-types. Is this the man you were referring to?

Thanks, Zach

John Kelly Experienced Member

Posted July 8, 2011

 On 7/8/2011 at 1:00 AM, Zach Robertson said:

  On 7/7/2011 at 10:39 PM, John Kelly said:

Hand was guided by his Manhattan handler and disappeared into the murky world of intelligence. JK

Hi Mr. Kelly,

First off, I just want to say that I very much enjoy reading your posts. They are filled with great insight.

I was wondering if you could share who the Manhattan connection to this is? I seem to remember reading about a man by the name of John Martin who was supposedly from NYC and associated with Intel-types. Is this the man you were referring to?

Thanks,

Zach

Excellent, Zach, you are right on the money. John Martin is an alias of course. He was also a sponsor of Robert Emmett Johnson. I very much enjoy your posts. Keep up the great work. JK

Zach Robertson Experienced Member

n 7/8/2011 at 1:19 AM, John Kelly said:

  On 7/8/2011 at 1:00 AM, Zach Robertson said:

  On 7/7/2011 at 10:39 PM, John Kelly said:

Hand was guided by his Manhattan handler and disappeared into the murky world of intelligence.

I was wondering if you could share who the Manhattan connection to this is? I seem to remember reading about a man by the name of John Martin who was supposedly from NYC and associated with Intel-types. Is this the man you were referring to?

Excellent, Zach, you are right on the money. John Martin is an alias of course. He was also a sponsor of Robert Emmett Johnson. I very much enjoy your posts. Keep up the great work. JK

Posted July 8, 2011

  On 7/8/2011 at 1:19 AM, John Kelly said:

  On 7/8/2011 at 1:00 AM, Zach Robertson said:

  On 7/7/2011 at 10:39 PM, John Kelly said:

Hand was guided by his Manhattan handler and disappeared into the murky world of intelligence.

I was wondering if you could share who the Manhattan connection to this is? I seem to remember reading about a man by the name of John Martin who was supposedly from NYC and associated with Intel-types. Is this the man you were referring to?

Excellent, Zach, you are right on the money. John Martin is an alias of course. He was also a sponsor of Robert Emmett Johnson. I very much enjoy your posts. Keep up the great work. JK

Thanks Mr. Kelly!

Here is an forum topic that I think deserves some more attention here:

Clendenin J. Ryan - Baltimore millionaire and CIA funder

While Clendenin Ryan is likely not "John Martin," I think he has plenty of connections to Col. Ulius Amoss, The INFORM intelligence network, and ultimately Robert Emmett Johnson which in turn, will lead to "John Martin's" true identity.

Zach

http://educationforum.ipbhost.com/topic/11614-clendenin-j-ryan-baltimore-millionaire-and-cia-funder/

Clendenin J. Ryan - Baltimore millionaire and CIA funder

By John BevilaquaNovember 18, 2007 in JFK Assassination Debate 

John Bevilaqua Advanced Member

Posted November 18, 2007 (edited)

From a previous posting by Paul Rigby:

p.142: "Who, Amoss wondered, might be willing to invest in such a scheme? [To smuggle Stalin's son out of the Soviet Union – PR] He found the answer through a complicated chain of contacts, beginning with Mrs. Mary Vaughan King, who runs the Baltimore public relations firm, Counsel Services, of which the colonel is a client. It led to Clendenin Ryan, a somewhat quixotic multi-millionaire, who once served as an assistant to Mayor La Guardia, ran for the New York mayoralty himself on an independent ticket and the governorship of New Jersey, published a semi-political magazine, and sent large sums abroad to break communist-inspired strikes and influence voters in favor of anti-communist candidates for high office."

Amoss ran International Services of Information and worked for Frank Wisner of the CIA. Even Carleton S. Coon worked for Amoss at the OSS as a Major under the Colonel. Coon and Amoss later worked with Robert Emmett Johnson in Baltimore at ISI. So now we have Amoss and Coon linked through Clendenin Ryan right into The Richard Condon Manchurian Candidate crowd like Brig Gen Bonner Fellers who was an ISI patron (Fighting Frank Bollinger), and "...that fascinating young man who wrote about man and God at Yale." (William F. Buckley, Jr. founder of YAF which was funded by Clendenin Ryan) and Ray S. Cline who was John Yerkes Iselin himself in Manchurian Candidate. Cline later took over control of R. E. Johnson when Cline ran WACL and murdered Archbishop Romero.

What was the magazine Clendenin Ryan published? The American Mercury from 1950-1952, the Buckley years.

What other groups did he help to start later in his career perhaps using his son Clendenin Ryan, Jr. as a go between and contact point with Doug Caddy his college roommate? The Young Americans for Freedom started at the Sharon estate of William F. Buckley, Jr.

The Conservative Press in Twentieth-Century America - Google Books Resultby Ronald Lora, William Henry Longton - 1999 - Social Science - 744 pages

The new purchaser of the Mercury was Clendenin J. Ryan, an erstwhile reformer who was a prominent financier and the son of an even more prominent financier, ...

books.google.com/books?isbn=0313213909...

The Other Side of the Sixties: Young Americans for Freedom and the ... - Google Books Resultby John A. Andrew - 1997 - Political Science - 287 pages

... David Franke, George Gaines, Robert Harley, James Kolbe, Richard Noble, Suzanne Regnery, Clendenin Ryan, Scott Stanley, John Weicher, and Brian Whelan. ...

books.google.com/books?isbn=0813524016...

Anybody have anything else on this guy Clendenin Ryan? Do a google or a yahoo search on this guy and it may

open your eyes. His family made their money in Copper apparently.

Apparently Clendenin Ryan funded Ulius Amoss and his gang of spies and assassins and somehow Richard Condon found out about Bonner Fellers, Ray S. Cline and Wickliffe Draper and Condon even inserted names of several American

Mercury writers to draw attention to this den of theives and their links to YAF, The American Mercury and The Pioneer Fund. Condon even mentioned American Mercury writers like Arnold Bennett, George Sokolosky, Westbrook Pegler and others from that circle of friends. Clendenin Ryan was involved with the Baltimore & Ohio railroad as well in some form or fashion and Condon mentions that company in ManCand, too.

Richard Condon apparently wanted us to be able to follow the path from Bonner Fellers in Cairo, Egypt through ISI via Amoss and Coon into Baltimore, MD where the trail would be picked up with The American Mercury crowd which was first started in Baltimore by H. L. Mencken then later bought by Clendenin Ryan, who funded several illicit ISI projects. The links back into YAF began with God and Man at Yale (Buckley) via Clendenin Ryan, the publisher of The American Mercury in the early 1950's. Ryan's son also helped start YAF according to Doug Caddy while they were both students at Georgetown. Later the Mercury moved to East 57th Street in NYC when Draper was involved with that publication at the time when he also lived on 57th St in Manhattan. Richard Giesbrecht also isolated American "Mercury" in his statements to the FBI following the Winnipeg Airport Incident.

Will those who could not accept the fact that Richard Condon knew what he was talking about finally admit their

ill conceived or incorrect notions? Does anyone else have any information on Clendenin Ryan to share here?

Edited November 18, 2007 by John Bevilaqua

James Richards Super Member

Posted November 18, 2007 (edited)

During the late 1940's and early 1950's, Clendenin Ryan was the money behind the wiretapping of various government buildings and officials.

His right hand man was an investigator/lawyer named John Broady. Broady was the one who knew where the bodies were buried.

In 1957, Clendenin Ryan allegedly shot himself to death. Some will argue that he had help. Anyway, Broady had connections to Robert Emmett Johnson and to a sophisticated network featuring an intel gathering apparatus that was ultimately recruited by Ulius Amoss.

Clendenin Ryan below.

James

Edited November 18, 2007 by James Richards

Douglas Caddy Super Member

Posted November 18, 2007

  John Bevilaqua said:

From a previous posting by Paul Rigby:

p.142: "Who, Amoss wondered, might be willing to invest in such a scheme? [To smuggle Stalin's son out of the Soviet Union – PR] He found the answer through a complicated chain of contacts, beginning with Mrs. Mary Vaughan King, who runs the Baltimore public relations firm, Counsel Services, of which the colonel is a client. It led to Clendenin Ryan, a somewhat quixotic multi-millionaire, who once served as an assistant to Mayor La Guardia, ran for the New York mayoralty himself on an independent ticket and the governorship of New Jersey, published a semi-political magazine, and sent large sums abroad to break communist-inspired strikes and influence voters in favor of anti-communist candidates for high office."

Amoss ran International Services of Information and worked for Frank Wisner of the CIA. Even Carleton S. Coon worked for Amoss at the OSS as a Major under the Colonel. Coon and Amoss later worked with Robert Emmett Johnson in Baltimore at ISI. So now we have Amoss and Coon linked through Clendenin Ryan right into The Richard Condon Manchurian Candidate crowd like Brig Gen Bonner Fellers who was an ISI patron (Fighting Frank Bollinger), and "...that fascinating young man who wrote about man and God at Yale." (William F. Buckley, Jr. founder of YAF which was funded by Clendenin Ryan) and Ray S. Cline who was John Yerkes Iselin himself in Manchurian Candidate. Cline later took over control of R. E. Johnson when Cline ran WACL and murdered Archbishop Romero.

What was the magazine Clendenin Ryan published? The American Mercury from 1950-1952, the Buckley years.

What other groups did he help to fund and found later in his career? Young Americans for Freedom started at the Sharon estate of William F. Buckley, Jr.

The Conservative Press in Twentieth-Century America - Google Books Resultby Ronald Lora, William Henry Longton - 1999 - Social Science - 744 pages

The new purchaser of the Mercury was Clendenin J. Ryan, an erstwhile reformer who was a prominent financier and the son of an even more prominent financier, ...

books.google.com/books?isbn=0313213909...

The Other Side of the Sixties: Young Americans for Freedom and the ... - Google Books Resultby John A. Andrew - 1997 - Political Science - 287 pages

... David Franke, George Gaines, Robert Harley, James Kolbe, Richard Noble, Suzanne Regnery, Clendenin Ryan, Scott Stanley, John Weicher, and Brian Whelan. ...

books.google.com/books?isbn=0813524016...

Anybody have anything else on this guy Clendenin Ryan? Do a google or a yahoo search on this guy and it may

open your eyes. His family made their money in Copper apparently.

Apparently Clendenin Ryan funded Ulius Amoss and his gang of spies and assassins and somehow Richard Condon found out about Bonner Fellers, Ray S. Cline and Wickliffe Draper and Condon even inserted names of several American

Mercury writers to draw attention to this den of theives and their links to YAF, The American Mercury and The Pioneer Fund. Condon even mentioned American Mercury writers like Arnold Bennett, George Sokolosky, Westbrook Pegler and others from that circle of friends. Clendenin Ryan was involved with the Baltimore & Ohio railroad as well in some form or fashion and Condon mentions that company in ManCand, too.

Richard Condon apparently wanted us to be able to follow the path from Bonner Fellers in Cairo, Egypt through ISI via Amoss and Coon into Baltimore, MD where the trail would be picked up with The American Mercury crowd which was first started in Baltimore by H. L. Mencken then later bought by Clendenin Ryan, who funded several illicit ISI projects. The links back into YAF began with God and Man at Yale (Buckley) via Clendenin Ryan, the publisher of The American Mercury in the early 1950's. Ryan also helped start YAF. Later the Mercury moved to East 57th Street in NYC. Richard Giesbrecht also isolated American "Mercury" in his statement to the FBI.

when Draper was closely involved with that publication.

Will those who could not accept the fact that Richard Condon knew what he was talking about finally admit their

ill conceived notions? Does anyone else have any information on Clendenin Ryan to share here?

Clendenin Ryan was a student at the School of Foreign Service, Georgetown University, at the same time I was (1956-60). He was one of my roommates in a off-campus house during that period, along with David Franke. Our house was the scene of laying the groundwork for the modern Conservative movement that was about to be born.

From what I vaguely remember, as this occurred some 50 years ago, he was the son of Clendenin Ryan, and grandson of Thomas Fortune Ryan. During one of our talks, Clendenin told me that his father had contributed the beautiful stain glass window that adorns to this day the front of St. Patrick's on Fifth Avenue in Manhattan.

Clendenin, my former roommate, was tangentially involved in the founding of YAF. His contribution was in the area of activity, not in funding. YAF was founded by funds advanced by Charles Edison, son of Thomas Edison, for whom I worked following my graduation from Georgetown. Charles Edison, former governor of New Jersay and former Secretary of the Navy under FDR, had his home and office in the Towers of the Waldorf. His philosophy, which I have adopted to this day, is that the American Eagle must have two strong wings to fly a straight course: a left one and a right one. The right wing has been way too strong for the past 30 years; hopefully, the left wing will strengthen in 2008 and the Eagle will again soar straight-away.

Clendenin Ryan, former roommate and friend, died from cancer in the late 1960's, on a date that I cannot pinpoint from memory. My guess is that he was under 30 years of age when he passed.

I never met his father nor, of course, his grandfather. The posting above about his father's political activity comes as news as his son never mentioned any of this to me.

John Bevilaqua Advanced Member

Posted November 18, 2007

From Time magazine...

Behind the pink, tubby façade of rich Clendenin John Ryan, the soul of the selfless public servant throbbed. Unlike many another son of privilege, he did not collect show girls; he devoted himself to business and the sober pursuit of turning rascals out of government.

His credentials were irreproachable: he was Princeton '28, Republican, a grandson of Financier Thomas Fortune Ryan. With other moneyed political innocents (and some toughened professionals), he plunged eagerly into the Fusion movement which made Fiorello La Guardia mayor of New York in 1934. The Little Flower made him his secretary, later gave him a couple of city posts, until the two reformers had a falling out in 1940.

Noisy & Hopeful. Not until two months ago did Clen Ryan return to New York politics. This time his entry was noisy and his ambitions were high; he might even be a mayor-maker again.

Ryan dumped $500,000 into something he called the National Foundation for Good Government. It would scotch corruption not only in New York but elsewhere. He railed at Governor Tom Dewey for not investigating Mayor Bill O'Dwyer's administration. He trotted down to City Hall with ten questions for O'Dwyer. Their substance: Is Slot Machine Tycoon Frankie Costello the real boss of New York City?

Bill O'Dwyer contemptuously snorted "crackpot." Ryan was undismayed. He chirped back: "A question a day might keep Costello away." The next morning, resplendent in pearl-grey Homburg, Ryan was back at City Hall. This time he nailed to the front door of the Hall photostats of some old (and generally discredited) grand jury charges that O'Dwyer had been grossly lax as district attorney of Brooklyn. Ryan happily held every pose the photographers yelled for, withdrew the nail, and went away.

The Wild Plot. Then the pros—Bill O'Dwyer and Tammany Hall—looked Clen up & down without great passion, spit on their hands and went to work. Before they were even half through they had made Clen Ryan look bad. In the dead of night Bill O'Dwyer summoned newsmen to City Hall, himself broke the wildest wiretapping story to hit the town since Justice Aurelio was overheard thanking Frankie Costello for his nomination (TIME, Feb. 7).

A jaunty, 6 ft. ex-city detective and wiretapping expert named Kenneth Ryan (no kin to Clen) had been picked up. The mayor himself had broken him down in his City Hall office; $10,000 worth of telephone and tapping equipment had been found in the detective's Yonkers home. A plot was afoot, said O'Dwyer, to listen in on the telephones of several score of city officials (including his) and some big wheels in the Midwest. A prominent someone had given Ryan $100,000 to do it.

At 7 that morning, after long questioning, Tapper Ryan asked permission to use a ladies' washroom near the mayor's office. Leaving his hat and coat on a chair, the tap expert beat it out a back window of City Hall and got clean away. While the cops bayed after him, Mayor O'Dwyer brought in the "someone" named by Tapper Ryan. This turned out to be a lawyer and private eye named John Broady, who, as it happens, works for none other than do-gooder Clendenin John Ryan and years before had gathered evidence for Ryan's annulment from the Countess Marie Anne Wurmbrand-Stuppach.

This week Bill O'Dwyer and the rest of the pros handed the case over to the grand jury. Tapper Ryan, who surrendered after 48 hours, was indicted. Rich Man Ryan was questioned by the grand jury. Nobody had actually accused the chubby amateur of anything. They had just roughed him up some. New York City will elect a mayor this November and Tammany, it appeared, was bent on wising up simon-pures like Clen Ryan.

John Bevilaquan Advanced Member

Posted November 18, 2007

Condon and Giesbrecht both mentioned: THE AMERICAN MERCURY and George Lincoln Rockwell and William F. Buckley, Jr. worked there at one time or another. Clendenin J. Ryan's ownership of The

Mercury coincided with Buckley's publishing of God and Man at Yale. The fact that Condon knew about Gen Bonner Fellers, Ray S. Cline, Wickliffe Draper, Robert J. Morris and many others from that period leads me to believe he knew what they were up to even then.

During 1923, while he and the noted drama critic George Jean Nathan were still editing the Smart Set, Henry Louis Mencken gleefully anticipated the new monthly to be published the following January by Alfred A. Knopf. Mencken planned "a serious review the gaudiest and damndest ever seen in the Republic."' Theodore Dreiser suggested several flashy titles. ''What we need," Mencken explained to his old friend, "is something that looks highly respectable outwardly. The American Mercury is almost perfect for that purpose. What will go on inside the tent is another story. You will recall that the late P. T. Barnum got away with burlesque shows by calling them moral lectures.''2 During the next decade, Mencken would thrust his arms wide, gather in as much of America as possible, and make it all part of the show. Under his forceful hand, the American Mercury would provide rollicking, highly irreverent commentary upon the American scene. From 1924 to 1933, ''Mencken'' and the ''Mercury" would become synonymous. This coupling would prove to be one of the magazine's greatest strengths as well as a salient factor in its decline.

When the American Mercury was established, Mencken and Nathan were each given twenty-five shares of stockthe remaining one hundred were divided among Knopf, his wife, and his fatheras well as full editorial control.3 The magazine was intended for the intelligent, solvent, urbane American who was skeptical about brummagem utopias and the yearning to save humanity. ''The American Mercury will never have a million circulation,'' Mencken explained. "It is not headed in that direction. Its function is to depict America for the more enlightened sort of Americansrealistically, with good humor and wholly without cant.

It is read wherever a civilized minority survives the assaults of the general herd of lawyers and come-ons. Its aim is to entertain that minority and give it consolation.''4 The American Mercury was called many things, a number of them vicious, but few called it dull.

Even fewer called it unattractive. As Mencken wished, the magazine's rambunctious content was sedately clothed by its respectable title and the distinctive Paris-green cover. The paper was expensive Scotch featherweight, and the Garamond type was set in double columns. There were no illustrations in each issue of 128 pages.5 Mencken had chafed under what he considered the ostentation of the Smart Set's cover and the poor quality of its paper. With the Mercury, he had a magazine whoseunderstated elegance set it apart from many of its competitors.

As he had done when he and Nathan were editing the Smart Set, bMencken continued to live in Baltimore and make periodic trips to New York City. Highly efficient, Mencken and Nathan decided to handle submissions as they had done earlier. If the first reader liked the manuscript, then he forwarded it to his colleague, whose approval was also necessary for a piece to be accepted. Disagreements were rare, and authors received a quick response to their material. Encouragement and incisive criticism accompanied many letters of rejection. This editorial courtesy, the prompt response and payment, and the prestige of appearing in the Mercury helped to atone for the magazine's low rate of pay: two cents per word for prose, and fifty cents per line for poetry.

During Mencken's editorship, the Mercury published William Faulkner, F. Scott Fitzgerald, Theodore Dreiser, Sherwood Anderson, Sinclair Lewis, and Edgar Lee Masters.6 But the magazine was also enlivened by a number of writers not actively courted by other magazines.

Convicts and hoboes and dishwashers wrote for Mencken, as did taxi drivers and businessmen, physicians and clergymen, lawyers and diplomats and outdoorsmen. The Mercury remained open to newspapermen as well as academic critics, and the eclectic nature of its contributors benefited the magazine.

The Smart Set had been primarily a magazine of fiction. But during his decade with the Mercury, Mencken's interest in fiction declined; he published less of it and reviewed it infrequently. The Mercury's nonfiction, as well as some of its more celebrated features, tended to be satirical. In fact, more than one-third of the essays published between 1924 and 1929 lampooned some aspect of the American scene.7 Some of the more vulnerable targets were assaulted repeatedly: pedagogy, chiropractic, Christian Science, Prohibition, puritanism, the sad credulity of rural America.s In "Americana," a feature continued from the Smart Set, the editors offered items gleaned from a variety of newspapers and magazines.

Determined to prove the imbecility of the American mind, Mencken and

Nathan did not lack material. For example, the Mercury recounted the

story of the young man in Oregon who, believing that fasting would

improve his health, died of starvation. And there was the sad tale of the

wife who divorced her husband because, at the breakfast table, he took the

milk for his coffee directly from a goat's udder.9

The initial printing for the Mercury's first issue was five thousand; a

second printing was necessary, then a third. The January 1924 Mercury sold

more than fifteen thousand copies, far surpassing the most optimistic

expectations.'! By the end of the year, circulation had climbed past forty-

two thousand." Nathan's resignation as coeditor in 1925 had no noticeable

impact. (The men were heading in opposite directions: Nathan's interest

remained literature, particularly drama, but Mencken was concerned with

the American scene.)'2 By the end of June 1925, circulation had surpassed

forty-six thousand.'3

April 1926 was marked by the uproar over "Hatrack,'' a chapter from Herbert Asbury's forthcoming book Up from Methodism. This episode brought the magazine and its editor even greater notoriety and placed both in the forefront of the battle against censorship. "Hatrack''then title is taken from an angular prostitute of that name ridicules evangelicalism, hypocritical religion, and the prurience of small-town life.

The Reverend J. Frank Chase, secretary of the powerful Watch and Ward Society in Boston, found ''Hatrack" immoral, and a magazine peddler on Harvard Square was arrested for selling the issue in question. Mencken went to Boston to challenge the ruling, sold Chase a copy of the magazine, and was promptly arrested. Mencken was tried the next day and acquitted the following one. The victory cost over twenty thousand dollars in lost

revenues and legal fees and a substantial loss of advertising, but the Mercury had taken a stand for freedom of speech, a cause that Mencken championed above all others. 14 At the end of 1926, Walter Lippmann called Menckenn"the most powerful influence on this whole generation of educated people.'"5

Circulation approached eighty thousand in 1927 and peaked ateighty-four thousand in early 1928.'6 It has been argued repeatedly that the stock-market crash and the resulting depression began the Mercury's decline.

Certainly, they proved to be major factors. Mencken's decision not to take the depression seriously hurt the magazine's credibility. Moreover, his iconoclasm proved less agreeable to the empty stomachs of the depression years. But circulation figures show that the magazine's popularity had begun to ebb prior to the crash in October 1929.l7 Mencken's satire, it appears, had run its course. It had been soinsistent, and in the end so successful, that there was less real need for it. Circulation continued to decline during the early years of the depression. A Jeffersonian liberal, Mencken defended laissez-faire capitalism and attacked proletarian literature. He was bitterly derided by the Left. In 1932, some of Mencken's old friends turned on him.

May of that year saw the publication of the first issue of the American Spectator, edited by Nathan, Dreiser, Ernest Boyd (an Irish critic who had written a book about Mencken in 1925), James Branch Cabell, and Eugene O'Neill. Some of the American Spectator's features were outright imitations of those in the Mercury.

Mencken resigned as editor of the Mercury in December 1933, and his departure precipitated what Marvin Singleton has called ''the erratic downward course of the monthly.''l9 Henry Hazlitt, formerly of the Nation, edited four issues. When he was replaced by Charles Angoff, previously Mencken's assistant, the magazine moved to the Left. Knopf sold the magazine in December 1934 for only twenty-five thousand dollarsto Paul Palmer, formerly of the Baltimore Sunpapers.20 Never again would the Mercury evidence the quality or stability that it had shown under Knopf.

In October 1936, the magazine was reduced to digest size, and then price was cut from fifty to thirty-five cents. Three years later, Palmer sold the magazine to Lawrence E. Spivak, a Harvard graduate who had become the magazine's business manager in 1933. Some old faces reappeared. In 1940, Nathan returned to his column on the theater. Angoff contributed to

''The Library" and served as both literary editor and managing editor, and Mencken wrote three pieces during 1939 and 1941.2' Under Spivak, the Mercury lacked the vitality that it had shown under Mencken. In 1946, the magazine merged with Common Sense. By December 1950, Spivak was reportedly losing forty thousand dollars an issue, and he sold the Mercury to Clendenin J. Ryan, the wealthy son of Thomas Fortune Ryan.22 Ryan published three issues under the title the New American Mercury and sold the magazine to William Bradford Huie in February 1951. In the issue of October 1951, Huie placed the legend ''Founded by Henry L. Mencken'' beneath the table of contents.23 The magazine reprinted several ofmMencken's articles and ran a story by Herben Asbury about the Hatrack affair. In August 1952, Huie sold the Mercury to J. Russell Maguire, a wealthy oilman and munitions manufacturer.

During Maguire's eight years, the Mercury ran more articles (much shorter ones) per issue and took a pronounced step to the Right. J. Edgar Hoover wrote for the magazine, as did Billy Graham, whose portrait graced the cover in January 1957. The Mercury defended Senator Joseph McCarthy and the doctrine of states' rights and attacked, among other things, the graduated income tax, the NAACP, the United Nations, NATO, the ACLU, and Zionism. In fact, for the remainder of its days the Mercury was engaged in a bitter battle with the Anti-Defamation League over charges of anti-Semitism.

In January 1961, Maguire sold the Mercury to the Defenders of the Christian Faith, Inc., and the editorial offices were moved to Oklahoma City. Whereas earlier the magazine had been shaped by Mencken's skepticism, now it printed moral lectures and ran a number of reprints from fundamentalist periodicals. There was even an advertisement for recordings of Bill Sunday's sermons. Issues were missed now, and the magazine contained only sixty-four pages. In 1963, the Legion for the Survival of Freedom, Inc., bought the magazine and moved its offices to Texas. A religious editor was added to the staff. The magazine, which sometimes appeared late, attacked John F. Kennedy and Martin Luther King. In April 1963, the Mercury became a quarterly. In June 1966, the magazine announced an agreement with the Washington Observor, a four-page, semimonthly publication: the periodicals had to be subscribed to concurrently.24 At the same time, the Mercury announced a merger with Western Destiny, a monthly. The Mercury also inherited Northern World, Folk, and Right, publications that Western Destiny had succeeded.

Beginning with the winter 1966 issue, editorial offices were movedmto Torrance, California. A year later, the Mercury's circulation was under seven thousand.25 The magazine lambasted the Jews and carried articles on eugenics.26 Under Mencken, the Mercury had discussed many aspects of black culture and had published the writing of George Schuyler, James Weldon Johnson, Langston Hughes, W. E. B. Du Bois, Walter White, and Countee Cullen.27 In 1967, the Mercury denounced racial integration and went so far as to state: "Negroes have never, at any time or place in the entire history of the world, created or maintained a culture above that of the stone age" (103:3-5).

With the spring 1974 issue, the Mercury celebrated its fiftieth anniversary. The magazine drew upon its illustrious past in an effort to enhance its popularity. The lead editorial, ''If Mencken Would Return. . . ,'' announced righteously, and wrongly, that Mencken ''would clearly approve of the lonely course [the] Mercury has taken since his departure.'' The editorial spoke confidently of the magazine moving "into its second half- century" and continuing "in [Mencken's] footsteps' ' (110:3-4) . It was a very short half-century, and the magazine ' s course was not one that Mencken had plotted. In 1976, the Mercury published Austin J. App's "H. L. Mencken,

Most Influential German-American Author." Marred by several factual errors, the piece lamented that Mencken's insistence upon freedom of speech had unintentionally "furnished ammunition to the proponents of pornography."28 The Mercury ran anicles attacking black studies, the supposedly pernicious influence of modern art in general and Picasso's paintings in particular, and attempts by homosexuals to gain equality under the law. One editorial questioned the existence of the Holocaust and declared that ''Adolph Hitler had embarked upon the greatest task of any man in history . . . the creation of a new culture on the ruins of the old''

(114:3-4).

In the fall 1979 issue, the editor announced a change in ownership and bravely spoke of returning to monthly publication with a magazine twice as long as the present one.29 With the winter issue, editorial offices were moved to Houston. The next year, 1980, marked the centennial of Mencken's birth, and the spring iSSUe was dedicated to his memory.

Besides reprinting one of Mencken's articles and carrying a centennial graphic, the Mercury ran a lead editorial about Mencken that elegized an earlier, simpler time when "the virus of social, racial and sexual equality did not find fertile soil in the minds of most Amencans" (116:3-4). This issue ended with a special supplement soliciting contnbutions so that computers could index biographical information about Amenca's fifteen thousand most dangerous political activists. This plea marked the magazine's lugubnous end. With no notice of cessation, the Mercury shut

down after publishing one issue in its fifty-seventh year.30

Few Amencan periodicals have changed as drastically as the

Mercury did. At its best, dunng the early years under Mencken, the

magazine stood at the forefront of Amencan culture by examining this

country with an enlightened skepticism. At its worst, the magazine drifted

into the foul backwaters of fear and intolerance. But the Mercury's demise

should not detract from its achievements. Because of its uncompromising

stand against censorship, its positive influence upon other Amencan

magazines, the cogency of its satire, and the opportunities that it offered to

a variety of wnters, the Mercury succeeded, at least for a while, in fulfilling

the high expectations that Mencken held for it in 1923.

John Bevilaqua Advanced Member

Posted November 18, 2007

Clendenin J. Ryan and his Freeport McMoran Copper hidden CIA interests...

led me to find this page which is only included in its entirety because of numerous cross references.

The Benno C. Schmidt Page

Schmidt bio in "Cancer Crusade: The Story of the National Cancer Act of 1971," by Richard A. Rettig (Joseph Henry Press, 1977). "Rockefeller was instrumental in choosing Benno C. Schmidt for the panel. Around 1960, Schmidt had joined the board of trustees of Memorial Sloan-Kettering Cancer Center at the request of [Laurance] Rockefeller, but was relatively inactive until 1965. He then became actively involved with Memorial Hospital for Cancer and Allied Diseases, first as a member of the board of trustees and chairman of the executive committee, and by 1970 as chairman of the board. He also became a member of the board of the Sloan Kettering Cancer Research Institute....

"Schmidt, a lawyer, had been a partner since 1946 of J.H. Whitney & Co., a New York investment firm, and managing partner since 1959. Much to the surprise of his staff, [sen.] Ralph Yarborough knew this New York lawyer-businessman. Schmidt was born in Abilene, Texas, in 1909, had attended the University of Texas, and had received both the A.B. and the L.L.B. degrees in 1936. Yarborough, who had a law practice in Abilene at the time, had taught in the Texas Law School and Schmidt had been in his class....

"But Schmidt was a Republican and his ties to Texas were to Yarborough's political opponents. Schmidt was a friend of John Connally, former governor of Texas, whom he had taught in law school. The conservative Connally wing of the Democratic party in Texas constituted the sworn enemy of the liberal Yarborough wing. Lloyd Bentsen, who defeated Yarborough for the Senate Democratic nomination in 1970, was a Connally Democrat. Schmidt was also close to George Bush, who, as the Republican candidate, ran unsuccessfully against Bentsen for the Senate in 1970...." However, these political differences were put aside, and Schmidt was chosen to chair the Yarborough panel.

"He had worked for the general counsel of the War Production Board in 1941-42. Then, after three years as a colonel in the U.S. Army, he returned to Washington as general counsel to the foreign liquidation commission of the economic division of the State Department." He had also been chairman of the board of the Bedford-Stuyvesant Development and Services Corporation, established by Robert F. Kennedy; and chairman of the Ford Foundation's Fund for the City of New York.

Schmidt - Cancer Crusade, p. 86 / National Academy Press, 1977

In 1967, Schmidt was a citizen participant of the Advisory Board of the Metropolitan New York Regional Medical Program, District 25, Yonkers, along with Mary Lasker and Benjamin Buttenweiser of Kuhn, Loeb & Co. (who was a trustee of Lenox Hill Hospital during 1968-72). ASH founder and AHF research director George James, then Health Commissioner of the City of New York, was on the Advisory Committee.

NY Metropolitan RMP / National Library of Medicine (pdf, 9pp)

Former President George Bush was part of the Lasker network: "Schmidt gave a copy of the 'summary and recommendations' to George Bush, then U.S. Ambassador to the United Nations, just before Thanksgiving. Bush was asked to pass this portion of the report on to the president so he would have it prior to the panel's presentation. The ambassador did convey the 'summary and recommendations' to John Ehrlichman, President Nixon's principal advisor on domestic policy, with the request that Ehrlichman transmit it to the president."

Schmidt - Cancer Crusade, p. 122 / National Academy Press, 1977

Schmidt was chairman of the President's Cancer Panel in 1975, and ex officio member of the President's Panel on Biomedical Research. (FASEB Newsletter, Mach 1975.)

President's Panels, FASEB Newsletter 1975 / tobacco document

Sir Richard Doll's award from the General Motors Cancer Research Foundation: "Some 'old friends' on the committee which picked Doll, by the way, include: Jonathan Rhoads, Benno Schmidt, Lauren Ackerman, LaSalle Leffall, Brian MacMahon, Lewis Thomas, and Arthur Upton." (Memo from Knopick to Kloepfer, Tobacco Institute SVP of Public Relations, May 2, 1979.)

Knopick to Kloepfer, 1979 / tobacco document

The Advisory Committee of the Symposium on Cancer, presented by Memorial Sloan-Kettering Cancer Center, the National Cancer Institute and the American Cancer Society, Sep. 14-18, 1980, included Laurance S. Rockefeller, Chairman of the Board of MSKCC; Benno C. Schmidt, Chairman of the Board of Memorial Hospital; James D. Robinson III, Vice Chairman of the Board of Memorial Hospital; Lane W. Adams, Executive Vice President of the American Cancer Society; Frank J. Rauscher, the ACS's Senior Vice President for Research; and NCI Director Vincent DeVita. The Program Committee included future AHF trustee Jerome J. DeCosse; Mathilde Krim; LaSalle D. Leffall, then immediate past president of the American Cancer Society, who shortly became a trustee of the AHF; and Frank J. Rauscher. Other participants included Sir Richard Doll ("The Interphase Between Epidemiology and Cancer Control"); Arthur C. Upton; Alfred G. Knudson (CTR 1986-94); John Weisburger, longtime research director of the AHF; R. Lee Clark and his assistant, Joseph Painter; and former Rep. Paul G. Rogers.

International Symposium on Cancer, 1980 / tobacco document

Schmidt retired as chairman of the board of overseers of Memorial Sloan-Kettering Cancer Center in 1990. His wife, Nancy, was also a member of its board. Pat Buckley (Mrs. William F. Buckley) and Nan Kempner were chairwomen of the benefit in his honor. (Benefits for Cancer and a Harlem School. New York Times, June 3, 1990.)

CBS Inc.

Benno Schmidt was a director of CBS during the 1980s. Betsey Cushing, a sister of CBS Chairman William S. Paley's second wife, Barbara (Babe), was married to Jock Whitney. Franklin Thomas, President of the Ford Foundation and a director of CBS and Cummins Engine Company, was close to Jock Whitney as well, and Schmidt and Paley had invested in Thomas's Bedford-Stuyvesant Restoration Corporation in the 1960s. CBS director Henry Schacht, the chairman of Cummins Engine Company, was another of Thomas's cronies. (In All His Glory. The Life of William S. Paley. By Sally Bedell Smith. Simon and Schuster, 1990.) Babe Cushing Paley's death from lung cancer was featured in Congressional anti-smoking hearings in 1983. Edson Spencer, the CEO of Honeywell Inc. from 1974 to 1988, who manufactured anti-smoking "clean air" propaganda, was a director of CBS from 1985 until CBS merged with Westinghouse in 1997.

Freeport McMoRan Inc.

In 1935, officers and directors of the Freeport Texas Company included John Hay Whitney, chairman (19,850 common); Langbourne M. Williams Jr., president (1,000 common); Eugene L. Norton, chairman; Monro B. Lanier, vice president (800 common); David M. Goodrich (2,500 common); Godfrey S. Rockefeller (2,600 common); Chauncey D. Stillman (7,100 common); and Frank A. Wills, director (3,600 common). Kidder, Peabody & Co. held 4,728 common and 100 preferred. (78,196 Paid in Year to Grover Whalen. New York Times, May 7, 1935.) Its name was changed to Freeport Sulphur Company the next year. (Freeport Texas Co. Changes Its Name. New York Times, Dec. 10, 1936.) The Cuban-American Manganese Corporation was a subsidiary. M.B. Gentry, who joined Freeport Sulphur in 1935 as assistant to the president, was elected a vice president in 1940. He was a mining engineer who developed the Anaconda Copper Mining Company's Chuquicamata Mine in Chile. (Elected a Vice President Of Freeport Sulphur Co. New York Times, Dec. 27, 1940.)

"Significantly, Freeport-McMoRan, back when it was Freeport Sulphur, positively heaved with CIA and elite heavy-hitters--not to mention persistent whispers of its involvement in the recovery of plundered gold stashed in Indonesia, where Freeport had the world's largest copper mining operation. Over the years, the Freeport senior management has included such luminaries as Augustus 'Gus' Long, Chairman of Texaco, who did 'prodigious volunteer work for Columbia Presbyterian Hospital'--which has been described as a 'hotbed of CIA activity'. Another director was Robert Lovett, who has been described as a 'Cold War architect' and was once an executive at the old Wall Street bank of Brown Brothers Harriman. He also served as an Under Secretary of State, Assistant Secretary of War and Secretary of Defense. He was a best friend of Chase Manhattan Bank Chairman (and Warren Commission member) John J. McCloy. The Chase Manhattan and Citibank connection to Freeport was further enhanced by the board appointment of Godfrey Rockefeller, brother of James Stillman Rockefeller who was appointed Chairman of Citibank (then known as First National City Bank, or FNCB for short) in 1959. (Note, too, that Chase Manhattan and Citibank are the exact same two banks that were to issue the Project Hammer documentary letters of credit.) Godfrey Rockefeller was a one-time trustee of the Fairfield Foundation that financed a variety of CIA 'fronts'. Meanwhile, Stillman's cousin, David Rockefeller, was Chairman of Chase Manhattan and regarded as the 'goliath of American banking'. By a strange coincidence of fate, it was Robert Lovett and John J. McCloy who, together with Robert B. Anderson, formed Secretary of War Henry L. Stimson's team of financial experts concerned with tracking WWII gold looted by the Axis powers. Indeed, Lovett and McCloy were responsible for negotiating the secret agreement hidden behind the Bretton Woods Agreement concerning the establishment of the Black Eagle trust that was to make use of plundered WWII bullion in the postwar years." (Project Hammer Reloaded. By David G. Guyatt. Nexus Magazine Aug.-Sep. 2003;10(5 ).)

Project Hammer Reloaded / Nexus Magazine

Langbourne M. Williams Jr.

Langbourne Meade Williams Jr. was married to Elizabeth Goodrich Stillman, sister of Chauncey Devereux Stillman, daughter of Charles Chauncey Stillman and granddaughter of James Stillman of the National City Bank, and a niece of Percy A. Rockefeller and Mrs. William G. Rockefeller. He attended the University of Virginia. (Elizabeth Stillman Engaged to Marry. New York Times, Apr. 15, 1930.) He was a boyhood friend of Buford Scott of Scott & Stringfellow, who was a director of P. Lorillard Tobacco Co., and they and a third friend were all married the same week. (3 Richmond Chums to Wed. New York Times, Sep. 11, 1930.) "Mr. Williams Sr. occupied an important position in the social world of Virginia and in the financial world of the nation. Born in Virginia on Sep. 12, 1872, he was descended on his paternal side from Col. John Dandridge, father of Martha Washington, and on his maternal side from Edmund Randolph, Attorney General in Washington's cabinet." His father, John Langbourne, established the Richmond investment banking firm of John L. Williams & Sons. His brother, John Skelton Williams, was a partner until leaving to be Controller of the Currency in the Wilson administration. Williams Sr. led a successful fight to oust E.P. Swenson from Freeport Texas Company, and Williams Jr. was installed as vice president and treasurer. (L.M. Williams Dies; Virginia Financier. New York Times, Apr. 3, 1931.) John L. Williams & Sons was the largest stockholder of Freeport Texas. John Tyler "Ty" Claiborne Jr., who was an usher at Williams Jr.'s wedding and his advisor in the proxy contest, was the principle securities analyst at Lee Higginson & Co. and he recruited John Hay Whitney. (Along the Highways and Byways of Finance. By Robert E. Bedingfield. New York Times, Apr. 18, 1954.) Williams graduated from the University of Virginia in 1924, and received a masters degree in business administration from Harvard two years later. He worked at Lee, Higginson in New York fpr a year before returning to his family investment firm. He became chairman as well as president of Freeport in 1957, after Whitney resigned to be ambassador to Great Britain. He was a governor of New York Hospital from 1941 to 1961, then an honorary governor until his death. (Langbourne Williams Is Dead; Retired Businessman Was 91. By John Holusha. New York Times, Sep. 14, 1994.)

Williams was a trustee of the Bank of New York, and a director of the Sulphur Export Co., B.F. Goodrich Co., and United States Guarantee Co. (On Board of Bank of New York. New York Times, Apr. 16, 1941.) He was elected to the board of governors of the Society of the New York Hospital, which operated the New York Hospital and affiliates, including Cornell University Medical College. (On Hospital Board. New York Times, Sep. 12, 1941.) He succeeded James W. Husted [son of U.S. Rep.James W. Husted, Skull & Bones 1892], as secretary. (New Secretary of Society Of the New York Hospital. New York Times, Nov. 13, 1946.) It acquired land for the construction of a new building of the Hospital for Special Surgury. Stanhope Bayne-Jones, Skull & Bones 1910, was president of the joint administrative board of the New York Hospital-Cornell Medical Center. ($400,000 Paid Over For Hospital Site. New York Times, Feb. 27, 1951.) Mrs. Williams, Vassar 1927, was treasurer of the board of managers of the Bellevue Schools of Nursing, a member of the board of the Young Women's Christian Association, and a trustee of Vassar College. Mrs. Morris Hadley, wife of S&B 1916, was chairman of the board. (Leader in Welfare Here Elected Vassar Trustee. New York Times, Oct. 13, 1952; Mrs. Langbourne Williams Dead at 51; Welfare Worker Headed Junior League. New York Times, Nov. 27, 1956.)

In 1948, W. Averell Harriman, S&B 1913, who was ambassador-at-large to Western Europe of the ECA, named Williams a member of his Paris headquarters staff, Alfred Friendly as public relations officer. (Finletter Appointed. New York Times, May 20, 1948.) He was to be a member of the New York City Committee of the Episcopal Church Foundation, headed by Harry M. Addinsell, appointed by Presiding Bishop Henry Knox. Other members were Prescott S. Bush, S&B 1917; Pierpont V. Davis; Russell E. Dill; Gayer G. Dominick, S&B 1909; Jackson A. Dykman; William B. Given Jr.; Eugene W. Stetson; Edwin S.S. Sunderland; Walter C. Teagle; and George Whitney. (Accepts City Leadership Of Episcopal Foundation. New York Times, Dec. 8, 1950.) Circa 1967, Williams was a trustee of the Virginia Institute for Scientific Research, founded in 1948, along with H. Rupert Hamner, former vice president of research of the American Tobacco Co. His boyhood friend, Buford Scott, was a contributor.

Virginia Institute for Scientific Research / tobacco document

The founder of the Institute, Professor of Chemistry Allen T. Gwathmey of the University of Virginia, had been an usher at Langbourne Williams' wedding in 1930. His lifelong research interest was the suface properties of crystals. Gwathmey died in 1963.

Evaluation of Virginia Institute for Scientific Research, 1967 / tobacco document

VISR News, Apr. 1963 No. 13 / tobacco document

VISR News, Nov. 1963 No. 14 / tobacco document

Godfrey S. Rockefeller

Godfrey Stillman Rockefeller was the the grandson of John D. Rockefeller's brother William, and a son of William Goodsell Rockefeller, Yale 1892, whose cousin B. Brewster Jennings was the president of Memorial Hospital from 1958-68. (William Goodsell Rockefeller, B.A. 1892. Bulletin of Yale University. Obituary Record of Yale Graduates 1922-1923, pp. 173-174.)

Obituary Record 1922-1923 / Yale University Library (pdf, 385 pp)

Godfrey S. Rockefeller was on the board of directors of Freeport McMoRan for 50 years. He and his cousin Chauncey D. Stillman were elected together (Freeport Texas Elects 2 to Board. New York Times, Dec. 22, 1931.) He graduated from Yale in 1921, and two classmates in Skull & Bones 1921, Charles Harvey Bradley and John Sidney Acosta, were ushers at his wedding; also Henry Mali, John French, Richardson Dilworth, and his brothers, William A. and J. Stillman Rockefeller. Frederick W. Lincoln was his best man, and his uncle, Percy A. Rockefeller, S&B 1900, attended. (Miss Gratz a Bride. New York Times, Jun. 27 1923.) His wife, Helen Gratz, was from St. Louis, Missouri, and Mrs. Prescott S. Bush of Columbus, Ohio, formerly Dorothy Walker of St. Louis, was supposed to have been an attendant (G.S. Rockefeller to Marry June 26. New York Times, Jun. 7, 1923.) Mrs. Rockefeller was president of the Research In Schizophrenia Endowment (RISE), whose activists included Sen. Prescott S. Bush, Mrs. Prescott S. Bush Jr., and Dr. John Walker, S&B 1931, president of the board of managers of Memorial Hospital in New York City from 1965 to 1974. (Greenwich Fete May 4 to Aid Reasearch in Schizophrenia. New York Times, Apr. 24, 1960.) Mrs. Rockefeller also raised funds for the National Association for Mental Health, with Mrs. Albert D. Lasker as a member of her committee. (New Year's Ball Will Take Place In Grand Central. New York Times, Dec. 9, 1963.)

Godfrey S. Rockefeller was a limited partner in Clark, Dodge & Company from 1936 to at least 1945. (Display Ad. 36. New York Times, Jan. 1, 1936 p. 43; Display Ad 194. New York Times, Aug. 9, 1945.) He was a stockholder in the Enterprise Development Corporation, a closed investment trust of heirs of William Rockefeller and Thomas F. Ryan, whose directors included Clendenin J. Ryan, Frederic W. Lincoln, and Morehead Patterson, S&B 1920. (Trust to Supply Venture Capital. New York Times, Mar. 31, 1948.) He was chairman of the Cranston Print Works, a Rockefeller-owned textile company, since 1946. (Godfrey S. Rockefeller, Dies; Executive in Textiles Was 83. New York Times, Feb. 25, 1983.) Godfrey Rockefeller was also elected a director of Benson & Hedges in 1946. (Other Company Meetings. New York Times, Apr. 12, 1946.) He exchanged his shares for those of Philip Morris in 1954. (Letter from Joseph Cullman to Rockefeller, Jan. 18, 1954.)

Godfrey S. Rockefeller Dies / New York Times, Feb. 25, 1983

Cullman to Rockefeller, Jan. 18, 1954 / tobacco document

"Certainly the real monarch of George Bush's Andover secret society, and George's sponsor, was this "Rocky's" father, 'Godfrey S. Rockefeller.' The latter gentleman had been on the staff of the Yale University establishment in China in 1921-22. Yale and the Rockefellers were breeding a grotesque communist insurgency with British Empire ideology; another Yale staffer there was Mao Zedong, later the communist dictator and mass murderer. While he was over in China, Papa Godfrey's cousin Isabel had been the bridesmaid at the wedding of George Bush's parents." (Excerpt from George Bush: The Unauthorized Biography - Part 2 of 8.)

George Bush: The Unauthorized Biography / Internetpirate.com

Charles A. Wight

Charles A. Wight, a vice president of the Bankers Trust Company, was elected to the board of Freeport Sulphur in 1947. He was a director of Grumman Aircraft Engineering Corp. and McGraw-Hill Publishing Co., Inc. (Banker Elected to Board Of Freeport Sulphur Co. New York Times, Sep. 26, 1947.) In 1950, he was chairman of the executive council of Freeport Sulfur Company, and vice chairman of the 1950 United Hospital Fund Campaign under O. Parker McComas, the president of Philip Morris. Both were trustees of Lenox Hill Hospital, and Wight was treasurer. Wight was also a director of the Grumman Aircraft Engineering Company and McGraw-Hill Publishing Company. (Appointed Vice Chairman Of Hospital Fund's Drive. New York Times, Sep 11, 1950.)

Benno Schmidt was a director of Freeport McMoRan Inc. from 1954 until 1997, when he retired and was named chairman emeritus. (Schmidt's bio also lists him as having been a director of Gilead Sciences Inc., where former AHF Trustee and Secretary of Defense Donald Rumsfeld had been a director since 1988.) Other directors of Freeport McMoRan have included Robert W. Bruce III, president of The Robert Bruce Management Co. investment managers (1989 to the present); former presidential advisor Henry A. Kissinger (1988-1995); George Putnam, chairman of The Putnam Investment Management Co.; and also J. Taylor Wharton, chairman of the Department of Gynecology at the University of Texas MD Anderson Cancer Center, and Chancellor of the University of Texas System William H. Cunningham.

Freeport McMoRan 1994 DEF 14A / Securities and Exchange Commission

In the 1960s and 70s, Jean Mauze, the husband of Abbey Rockefeller, benefactor of the Memorial Center for Cancer and Allied Diseases attack on tobacco, was a director of Freeport Sulfur. (Freeport Sulfur's Powerful Board of Directors; Real History Archive.com; and $10,000,000 Asked in Cancer Attack, by William L. Laurence. New York Times, March 9, 1954.)

Freeport Sulfur's Powerful Board of Directors / Real History Archive.com

$10,000,000 Asked, 1954 / tobacco document

Between 1969 and 1972, Robert C. Hills, the President of Freeport Sulphur, and Charles A. Wight, its retired Vice Chairman, were trustees of Lenox Hill Hospital, whose Chairman expressed the gratitude of its Board of Trustees to the Council for Tobacco Research for funding the work of Sheldon Sommers. Sommers was later a member of the CTR's Scientific Advisory Board. Other trustees of Lenox Hill included Benjamin J. Buttenweiser, Limited Partner, and Thomas E. Dewey, Jr., Partner of Kuhn, Loeb & Co.; and Honorary Life Trustee John J. McCloy, then Chairman of the Salk Institute, whose trustees engaged in assorted anti-smoking activism.

Paul W. Douglas

Paul W. Douglas was the President, CEO, and Chairman of the Executive Committee of Freeport Minerals Company (1975-81) and Freeport McMoRan (1981-83); also Chairman of The Pittston Corp. 1984-91, and a director of Phelps Dodge Corp. from 1983-1999. He was elected to the board of directors of Philip Morris when Mary Woodard Lasker's stepson, Edward Lasker, retired in 1980, and was on the board of Philip Morris until 1995. Paul W. Douglas was the son of Sen. Paul H. Douglas (D-IL), who in 1965 was one of four Senators who urged President Johnson to veto the Cigarette Advertising and Labelling Act because of its provision postponing the Federal Trade Commission's rule requiring health hazard warnings in cigarette advertising. His son, Philip Le Breton Douglas, married Elizabeth S. Kean, the niece of anti-smoker Gov. Thomas H. Kean of New Jersey. (Elizabeth S. Kean Affianced. New York Times, Dec. 12, 1982.)

Genetics Institute Inc.

Schmidt was a director of Genetics Institute Inc. from 1980 until it was acquired by American Home Products. James G. Andress joined the board in 1991; Fred Hassan, later the President and CEO of Pharmacia-Upjohn during its "partnership" in the World Health Organization's Tobacco Free Initiative, joined the board in 1992; and former American Health Foundation Trustee and NHLBI director Robert I. Levy, who was president of AHP's pharmaceutics division, joined the board in 1994.

Genetics Institute Inc. 1996 DEF 14A / Securities and Exchange Commission

OTA - Technology Transfer, 1982

Schmidt assisted in the Office of Technology Assessment project on "Technology Transfer at the National Institutes of Health" in 1982. Other participants included David Baltimore, Lester Breslow, Sir Richard Doll, Maureen Henderson, Joshua Lederberg, Arthur Upton, and Ernst Wynder.

OTA - Technology Transfer / Princeton University

Vertex Pharmaceuticals Inc.

Schmidt was a director since 1989 and retired as Chairman of the Board of Directors of Vertex Pharmaceuticals, March 26, 1997. "'Benno Schmidt was instrumental in the founding and early financing of Vertex,' commented Dr. Joshua Boger, President and CEO of Vertex." Charles A. Sanders, the former general director of Massachusetts General Hospital, emeritus director of Research!America and principal of the Washington Advisory Group, was named to the Vertex board on Dec. 12, 1996. (Mr. Benno C. Schmidt Retires as Vertex's Chairman of the Board of Directors, March 26, 1997. Vertex press release March 26, 1997.)

Schmidt Retires, 1997 / Vertex Pharmaceuticals

Vertex Pharmaceuticals 1997 DEF 14A / Securities and Exchange Commission

Benno Schmidt, Walter Cronkite, and Arthur G. Altschul Sr. were honorary chairs of St. Bernard's School's fundraising campaign, circa 1999?. Altschul was a director of General American Investors since 1954, and chairman since 1961, until he retired in 1995. He was the son of Mary Lasker's friend, Frank Altschul.

Benno C. Schmidt Sr. died in October 1999 at the age of 86.

Benno C. Schmidt Sr. obit / St. Bernard's School

Benno C. Schmidt Jr.

Schmidt's son, Benno C. Schmidt Jr. was the president of Yale University from 1986 to 1992. "During his presidency, Yale's endowment grew from $1.7 billion to nearly $3 billion, the highest rate of growth among the major endowed private universities in this country.... Before joining Yale, Benno was the dean of Columbia University Law School where in 1973 he became, at age 29, one of the youngest tenured professors in Columbia's history." Another story of the remarkable success of people with the right connections.

Benno C. Schmidt Jr. bio / Edison Schools

Schmidt has been chairman of the board of Edison Schools (a private school franchise sort of like an educational McDonalds) since 1997. Cheryl Wilhoyte, Madison, Wisconsin's former Superintendant of Schools from 1992 to 1998, joined the company as Executive Vice President in 1998. Deborah M. McGriff, Milwaukee's former Deputy Superintendant of Schools, was Executive Vice President of Development. Joan Ganz Cooney, founder of the Children's Television Workshop, became a director in 2000.

Edison Schools 1999 Form S-1 / Securities and Exchange Commission

Edison Schools 2003 DEF M14A / Securities and Exchange Commission

John Reed Schmidt

Benno Schmidt Sr.'s son John Reed Schmidt is evidently named after his crony from Memorial Sloan-Kettering, Philip Morris director John Shepard Reed. He was a senior production associate with ABC News Closeup in New York, and a graduate Yale University."The bride, who will keep her name, is an associate with the New York law firm of Donovan, Leisure, Newton & Irvine. She graduated cum laude from Yale University and received her degree from the Northeastern Law School. Her father is a physician in West Hartford." (Wendy Frances Conway Marries John R. Schmidt. New York Times, May 22, 1983.)

Wendy Frances Conway Marries John R. Schmidt, May 22, 1983 / New York Times

James Richards  Super Member

Posted November 18, 2007 (edited)

http://www.enotes.com/twentieth-century-cr...merican-mercury

Trouble for the Mercury from Time Magazine

Monday, Dec. 08, 1952 When William Bradford Huie took over the American Mercury two years ago, he promised to "recreate" the magazine in the great tradition of its first editor, Henry L. Mencken. But Bill Huie, who has been in hot water before with his books and articles (TIME, May 30, 1949 et seq.), found himself in trouble again. Almost at the start, he fell out with his backer, Manhattan Millionaire Clendenin Ryan. Five months ago the Mercury owed so much money that Huie was ready to close down. In time's nick, Huie found an angel: J. (for John) Russell Maguire, of Greenwich, Conn., who was operating principally as a Wall Street broker until the SEC forced him out for "flagrant violations" of the law. Later he made millions in manufacturing (Thompson submachine guns, electrical equipment, etc.) and oil. Last week Maguire's backing cost Huie the top section of his staff.

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Mercury's editors Martin Greenberg, 34, and Gunther Stuhlmann, 26, resigned. Said their joint statement: "It had been our understanding that the magazine would strive to represent dynamic and sophisticated conservatism—in Mencken's words, 'Tory, but civilized Tory'—and that was the direction in which we sought to guide it." But in view of [Maguire's] lack of sympathy [with these views], we feel it impossible to continue."

Recently Maguire put up money to help distribute Iron Curtain over America, by Southern Methodist University Professor John Beaty, a book that the oldest Methodist Church periodical in the U.S., Zion's Herald, calls the "most extensive piece of racist propaganda in the history of the anti-Semitic movement in America." He has also been a supporter of such propagandists as Merwin K. Hart, and worked with Allen A. Zoll, whose American Patriots, Inc. was listed by the U.S. Attorney General as a "Fascist" organization. Zoll at first was an account executive handling the Mercury's ads, later turned up soliciting subscriptions for the Mercury.

To Editor Huie, Maguire's acquaintances came as no surprise. "I knew I was taking a calculated risk," says he. "I knew about Maguire's indiscretions and operations with the Christian Front crowd. But money to me is impersonal. If suddenly I heard Adolf Hitler was alive in South America and wanted to give a million dollars to the American Mercury, I would go down and get it—or Stalin." No matter who the backer is, Huie maintains he can control the Mercury's editorial policy, expects the magazine will ride out this storm, as it has so many others.

Remember it was Russell Maguire who later hired George Lincoln Rockwell to work at The Mercury... Rockwell went to

Brown University along with E. Howard Hunt and Anastase Vonsiatsky. Later Buckley was Godfather to Hunt's children.

Edited November 18, 2007 by John Bevilaqua



JFK counter coup - Ted Shackley  SSCIA Testimony

Ted Shackley SSCIA Testimony 

Saturday, March 23, 2013


 

Ted Shackley (Left) with Thomas Polgar (Far Right) takes command of the CIA Station in Saigon, January, 1972.


The Black Assassins
https://mindcontrolblackassassins.com/2011/01/19/from-the-gregory-files-black-manchurian-candidates-the-enigma-of-billy-mapp-the-zebra-murders-al-constran/

FROM THE GREGORY FILES: BLACK MANCHURIAN CANDIDATES, THE ENIGMA OF ...


[BK Notes: Shackley testified under the alias "Mr. Halley." Excerpts from testimony does not include questions but only Shackley's answers. For complete text see RIF 157-10002-10086 ] 

http://www.maryferrell.org/mffweb/archive/viewer/showDoc.do;jsessionid=0994C0FC7C93364CA9C3267DE7DE71CB?docId=33939

Testimony of Halley, 19 Aug 1975 (163 pages)

Mr  Halley. I became involved with the Cuban affair in approximately February of 1962. At that time, I was in Headquarters. I was Chief of Foreign Intelligence Activities for the Eastern European Division. I was asked to be released from those duties to conduct a survey of the opportunities for running intelligence operations against Cuba. I was released from those duties; I did engage in a survey of the possibilities for running intelligence, counterintelligence, paramilitary operations against Cuba.”

(document page 4 – MF page 9)

I jointed the Agency originally in 1951. When I was first assigned to the Agency I was an Army officer on active duty. I went through the usual Agency training program. I was assigned to Eastern European activities where I originally was focused on Polish and German operations. I subsequently served from 1952 to 1959 in Germany….

[Did not travel to Cuba, except possibly in transit. ]

When I first entered into this (Cuban) survey, it was to do this on a TDY basis, temporary duty assignment, to complete a report on my findings, to report those at that particular juncture to Mr. Harvey who was the head of the Task Force that was attempting to expand intelligence coverage of Cuba and I was not assigned to the station at that particular point in time.

[Joined JMWAVE shortly after completion of survey, before the end of May 1962]

Dp9 – p.14 MF

….matters pertaining to that survey to the team who was then in charge of operational activity in Miami. That team was essentially headed by Mr. Al Cox, who has since died.

Mr. Cox was the head, then, of what would be the equivalent of the JMWAVE station.

He was the head of that unit until such a time as I replaced him.

My understanding at the time that I conducted this survey was that there was a three-man group in existence which was headed by Mr. Robert Kennedy that was conducting a survey to see what kinds of activities could be conducted against Cuba. The other members of that particular group were General Lansdale and Mr. Helms.

[Not familiar with MONGOOSE or aware of it or that acronym, cryptonym ]

As the Task Force commander, he (Harvey) was reporting to the then DDP who was Mr. Helms.

[Shortly after Helms replaced Mr. Bissell]

p. 16 MF

On one occasion I accompanied Mr. McCone to the White House to give a presentation or sit in while the presentation was being made…This was a meeting with President Kennedy and other members of the then-Cabinet were present at that particular meeting.

[That was in 1962. Not sure if it was meeting of Cabinet, NSC or Special Group]

Mr. McNamara, Mr. Rusk, Mr. Kennedy, the Attorney General was present

DCI was present and gave a portion of the presentation….As I recall Mr. FitzGerald gave the other portion of the presentation.

Doc p. 13 MF p. 18

You know, the chronology of the Chiefs of our Task Force were that it was Harvey, then FitzGerald, then Scraber, after that, Hart. I served with all four of those.

This was a general review of activities that were being conducted against Cuba.

[No mention of assassination]

I am aware of the term Special Group. I am aware that the chronology of the 303 Committee, Special Group, 40 Committee and so forth….

MF p. 19

When I entered into this project in February of ’62, the chain of command that I was familiar with was this three-man group in constant contact with Mr. Harvey. The second chain of command, paralleling that, was Mr. Harvey reporting to the DDP and the DDP subsequently reporting through his chain of command to the Director, and that would be the only way that I could characterize that with any accuracy

MF p20

I know that shortly thereafter I was in Miami, General Lansdale came down to visit me, to talk with me, about the progress that was being made in the operational program. At some point after that, this three-man group for all intents and purposes disappeared. General Lansdale was reassigned, the group broke up; subsequent review of the program were made at the Special Group level. As an example, we would have to submit every month the number of operations that were going to run, such as infiltrations into Cuba through what would be paramilitary means, and these were approved by the Special Group. There was an approval procedure for setting those up, so subsequently the three-man group disappeared and the regular mechanism of the Special Group came into play.

In other words, if we were going to run an operation that was gong to be a cache replacement in the Cuban mainland, that had to be put in, say in our October schedule, that October schedule had to be submitted to the Washington headquarters so they could make it available to the Special Group sometime in September. So I would regard a cache, say the lowest kind of operation in terms of sensitivity, and then you could move up from team infiltrations that had to be approved in advance, resupply missions, paramilitary operations against fixed installations would all be approved.

[Involved in Cuban operations from Feb ’62 – June or July of ‘65]

If it was something that certainly would – for some reason might not be committed to paper, somebody may have wanted to discuss it orally from Miami, the chain of command would have been from me to whoever was the head of the Task Force in Washington, or later, when the Task Force became reintegrated into the Western Hemisphere Division, I would have had to talk to the Chief of the Western Hemisphere Division, who at one time was FitzGerald.

[Talk to Mr. Harvey or Mr. Screbar ]

MF p23

[No knowledge of any assassination plots run out of Miami ]

You have to put yourself in the historical context of that particular time. Thousands of refugees were coming out of Cuba, coming into Miami, Dade County and up and down the Florida Keys.

There was a regular mechanism to screen these people. Any number of these people had plans or ideas for changing the situation in Cuba, among those ideas for changing the situation in Cuba were plans to assassinate any number of people in Cuba. This was something that was talked about, you could go down to any coffee house in downtown Miami and Cubans would be talking that kind of language. So I do not want to leave you with the impression that the word assassination never came across my radar screen, but we are talking about, and my answer was geared to a planned operation by the CIA.

CIA involvement? I know of no operation that was a planned operational activity, you know, for the sole purpose of assassinating, you know, Mr. A, B or Mr. C. This was the x xxx allente of the time. People were talking about these things in the refugee community, these kind of things were being discussed

This was the mood of the Latin American revolutionary where a coup, you know, is a way of life, where restaurants and coffee houses abound with conversation about how to run a coup. In the running of a coup, one of the things that people talk about is how do you control the leadership which then exists at that time.

During my tenure in Miami, I did not put forth any proposals to mount an assassination operation. In other words, there was no formal plan. I did not put forth any operational proposals along this line.
Secondly, I am not aware of any assassination plans being put forth, you know, by Mr. Harvey or by anyone else at that particular time. That is the way I would prefer to answer that. 

…I did not put forth any plans. On the other hand, I do not want to be held responsible for such things as CIA being held in touch with a paramilitary group in Cuba whose primary mission was the collection of intelligence, whose secondary mission might be to organize a resistance and, unbeknownst to me, might have had their own idea which were never consulted with us, you know, never discussed with us, through the communications channels that we had, who may have been thinking, may have planned, and may have attempted, to implement assassination operations.

I do not feel under the command and control mechanisms that existed that I could exercise through the station over such a situation that I could be held responsible for that. Therefore, I cannot accept your question on the secondary or tertiary situation because I have no knowledge of those. You may have some knowledge and you can confront me with some statement by some Cuban who said that this was part of his mission. I have to look at that at the time.

And I will stand by my answer, that is, I put forth no plans, I know of no plans put forth, you know, during my tenure in Miami in which assassination was part of the operational rationale. You know, the only way we can clarify this perhaps to your satisfaction is to discuss some specifics. If you are prepared to talk about specifics, maybe I can deal with those within the framework of that general statement that I made, you know. I know how Cubans talk. I know the rumors that have existed over the years. I simply do not want to be identified with any action conducted by some group over which I had no knowledge or control. That is my key point.

My requirements for reporting really stemmed in the early days from Harvey. If there were any special requirements, he was taking them from the three-man group and translating them and, in fact, much of the system of reporting in those early days was generated by me and what I thought was required to keep Mr. Harvey as a Task Force Commander fully informed. I think that you undoubtedly know from the record that I worked for Mr. Harvey prior to 1962 and therefore I was familiar, you know, with his style of operations and though I had a clear understanding of what he needed in an informational sense. So when I went to Miami, I organized much of the reporting flow upward, if you will, from the field unit to Headquarters.

 No, I do not deserve any credit for the tunnel operation. That is Mr. Harvey’s activity. He kept that very tightly compartmented and in the days when that was going on, I was involved primarily with Eastern European activities.

Yes, I would like to say I am a personal friend of Mr. Harvey.

I want to make a point. Insofar as the three-man group was concerned, I would see Helms in his role as the DDP in the three-man group. I would see Lansdale - - as I told you, Lansdale came down to visit me in Miami on one occasion. He came as part of that three-man group. But my chain of command during my visit was still from me to Harvey.Lansdale was down there, I was to be, you know, straightforward, candid, discuss plans, programs, problems. But I received my orders and instructions, the control of money and so forth was vested in Task Force Commander, Mr. Harvey.

Therefore, I have never dealt with this three-man group as a body. I dealt with the individuals, you know, and various mutations.

I would have to say that the total reporting became more formalized the longer we stayed in business. I cannot ascribe this to the difference of style of the three-man group as opposed to the Agency chain of command or subsequent with the requirements of the Special Group. This evolved from a body of experience that was gained as the operation was established and got some experience.

 So I would not want to characterize that as being a result of the groups.

I had no reason to believe that it was not a duly constituted body. In other words, these officers that I reported to in that particular case, Mr. Harvey, Mr. Helms, were my chain of command at that particular point, were the ones who briefed me on the existence of this three-man body and I felt that was a perfectly legitimate function of that body.

My recollection of the initial briefing was from Mr. Harvey.

[p. 34. MF Did not meet personally, one on one with the Attorney General RFK. The briefing at the White House was only time he met with RFK. ]

Throughout that whole period of time, that was the only, if you will, direct contact with him that I can remember. You know, unless you can show me something.

[Bruce Cheaver….at metting]

Again, I put it in this overall context of the times. We were running Foreign-Intelligence collection operations against Cuba with Classical agent means. We were running collection against Cuba through paramilitary teams. We were involved in paramilitary operations that could be described as commando raids. Those were the kinds of activities. We were dealing with exile groups, we were debriefing refugees and in all of this conversations of assassination, the Cuban penchant for it had to come up. I cannot pinpoint…

Even such things as discussions of various types of weapons, you know, people, as you probably know from this experience, every individual who deals with weapons has a different view on what is the ideal weapon. If you took a squad of ten men and gave them the free choices, I’m sure all ten of them would come up with a different weapon.

Therefore, when we were standardizing weapons to our paramilitary teams, things like that, weapons would be discussed in terms of, you know, muzzle velocity, rate-of-fire, weight of the weapon for the Cuban to carry, because many of them were quite small. In this context, people would discuss what is the range, can a guy use it to shoot somebody at a particular range? Is this an assassination weapon? Is this a good weapon for close combat?

Therefore the term assassination was just part of the life, of the fabric at that time. That is what I am trying to get across. I just cannot articulate any more eloquently than that.

If you are planning a commando raid against something like an oil refinery, you have to think about how are you going to get across the guard force that is around the refinery? One of the questions you have, of course, is if you bypass them, you are successful to get in without a trail or any kind of struggle, that is great. But what happens if you are implanting your target and the guard stumbles on you, you know, the guard forces then becomes an immediate risk to your operation and usually there is a fire fight. Therefore, this becomes a question of weapons. In other words, what weapon is going to give the highest muzzle velocity and make the largest amount of noise? Therefore, if you have two weapons of co-equal cyclic rate of fire and one made less rate of noise than the other for that job you would pick the weapon with the lowest noise. You might even silence it. You may make a silenced submachine gun out of it.

These are the kinds of things that go into these discussions of weapons.

In this particular context, I think most people felt that the Cuban penchant for assassination, for discussing assassination, was the kind that would have to be done from a long range. You know, I think that it is generally an accepted thesis that a group of dedicated men who are prepared to give their lives can in time assassinate almost anybody. Now, the Cuban was not that kind of person. That was not his psychology make-up. He tends to want to live to enjoy life, to talk about his accomplishment. Therefore, while they were brave and dedicated, they were the kind of people who would probably engage in something like this in the context of using the sniper weapon as a vehicle for assassination, long distance.

Therefore, in this context you are talking about range, you know, one of the key factors becomes what is the accurate range of a weapon if fired by an expert marksman. Therefore, that is the kind of thing that would go into, you know, discussions of weapons.

The perspective really starts with the failure of the Bay of Pigs Operation. After the failure of the Bay of Pigs, the Kennedy Administration wanted another look taken at the problem of Cuba. In order to get that other look started, the Kennedy Administration created this three-man task force or this three-man group and wanted to see what else could be done against Cuba, and that is when I came into this problem, in February of ’62.

This three-man group stemmed out of that [Robert Kennedy-Maxwell Taylor Board of Inquiry into Bay of Pigs] inquiry. What its relationship was to the inquiry, I do not know, because I was not involved and I never had an opportunity once I plunged into this job, to go back and read those historical documents. You know, I am sure there is a Maxwell Taylor Report and so forth, but I have never read it.

Therefore, my first task when I became involved in this was the task of coming up with an operational plan to see what kinds of intelligence could be collected in Cuba, so that by collecting this intelligence, an assessment could be made based on hard facts as to what could be done against Cuba. In other words, the difference here was that people thought that the Bay of Pigs operation was not soundly grounded in intelligence. Therefore, this was an attempt to start the collection of intelligence to see what could be done.

In order to collect intelligence at that particular time, it was believed that all avenues of approach should be used, so that meant classical foreign intelligence operations, counterintelligence operations, the debriefing of refugees, and the use of paramilitary means to put teams into Cuba to collect intelligence on that part of the island that could not be covered by what you would call the classical means of foreign intelligence collection.

As the program was started essentially by me or accelerated by me, was in fact got caught up with the Cuban Missile Crisis – that is, the advent of the Soviet intervention into Cuba – and our whole effort shifted to covering that Soviet build-up in Cuba, and this was an integral part of our having detected the Soviet build-up and the Untied States government taking the actions which they did, that is, to verify this.

There was a great problem for a while we were all taking about hard intelligence, the President, John Kennedy, was telling us, give us hard intelligence. We thought we were giving him hard intelligence. What we meant, in his definition of hard intelligence, as it turned out to be, was a U-2 photograph. He never articulated that to us in those terms.

Then we got caught up into the eyeball to eyeball confrontation of the Cuban Missile Crisis. When that was over, we got caught up with the problem of monitoring the disengagement of the Soviet presence in Cuba. That took us up through sometime into early ’63.

Then we took a look again, because we knew an awful lot more about hem than we had when we started in February of ’62, to see what could be done against Cuba, and it was clear at that point that no external invasion was going to be possible, because that was something that was excluded by the Khruschev-Kennedy agreement and then it was not feasible. In any event, therefore it was a question of what could be done. So we were collecting intelligence to continue to stay on top of the situation. We were attempting to establish contact with the military establishment in Cuba to see if there was any force that was opposed to Castro within the military establishment that would be used to alter the situation and continue to see whether there were any economic pressures that could be brought on Cuba that would accelerate the whole problem of creating an environment in which a resistance could be created on an island.

In addition, we were continuing to support certain elements of resistance, you know, that were still there that were not in the Army.

There were paramilitary forces that were in Cuba, that we had put in or established contact with, or people who were already in the bush who we had already established contact with or they had established contact with us, and we were providing them with food, weapons and so forth so that they could survive. So that it was a multifaceted approach at that particular time.

That went on from the middle of ’63 until the middle of ’65, and these are two distinct phases of this operation.

[Structure of JMWAVE]

The Station started expanding in whatever timeframe it was, somewhere after the survey was completed. It must have started expanding sometime in March of 1962. You know, by the time that it was at its peak, which was probably somewhere just before the Cuban Missile Crisis, July, August of 1962, it was either the largest or second largest – my recollection was it was the second largest station in existence at that time.

There would be for instance, maritime case officers. We hired people who had specialized skills, that is, that they could manage a series of vessels for us, but they were not longtime staff employees. Thee would be people who would be used, if you will, in a management organization, basic implementation of the program.

When I talk about the Station, as such, I would say that is roughly in the neighborhood of [REDACTED] people, and that was those people who would be involved in the management effort, the direction effort, the financial logistics, cover procedures, security, that kind of thing. All right? Flowing out from that were people whom we would call agents, that is, people who were not knowledgeable necessarily of whom they worked for or where the cover officers were located and so forth. Let us say, in the maritime parts of the operation we might have had at any one point in time, you know, up to five hundred people involved in maritime activities, you know?

….These would be essentially Cubans who were the captains of the vessels that were used in infiltration operations to put people on the shore of Cuba, and there were a variety of techniques. In other words, you might start with the mother ship, which would be an LCI – I am not sure how familiar you are with various kinds of vessels.

[An LCI is a] Landing craft kind of vessel, or patrol craft, a PC, 110-foot vessel that would be a mother ship. This is the kind of ship that would take fuel supplies and water, so that other smaller vessels could be serviced by it. So you might start an operation of a mother ship towing a smaller boat, or having it on its decks and going down to fifteen or twenty miles from Cuba, putting the smaller boat over the side, which was a faster boat, lower silhouette, less likely to be picked up by a Cuban coastal radar, and then that would take the team in close to the shore where we might finally put them in rubber rafts, where they would paddle in or use a silent outboard motor if the surf was high.

…In other words, I am only using this as an example. Let us say we had the ABC Shipping Company. That shipping company was a subsidiary of the Station, if you sill, and the ABC Shipping Company ran maybe one LCI and maybe two or three smaller boats which it could deck load and that company might have fifty or seventy-five employees, as an example, all Cubans, maybe some of them were Nicaraguan or Costa Rican…We are talking about all of these companies, they probably went up into the hundreds….

There was a Chief of Station, which was myself. I had a Deputy Chief of Station for operations. That is the gentleman who is now retired. I think he is still alive, by the name of Moore, Robert Moore. I had a second Deputy Chief of Station and he was for Support Patterns. That is a gentleman who is also retired, a Mr. Corris.

Then the rest of the Station was organized into a number of branches. Each branch was organized along functional lines….There was a Foreign Intelligence Branch. These were people in, what in my terminology would be classical foreign intelligence operations. That is, trying to recruit a Cuban diplomat abroad, as an example, dealing with, you know, a Uruguayan diplomat in the Uruguayan Embassy in Havana. They are working with resident agents in Cuba who might live in some city like Havana and have a legal  job as a baker or butcher or something but had a radio set in which they could communicate with us, through which they could communicate with us.

Then there was the Paramilitary Branch. This was the group that ran the command o operations. This was the group that ran, and put people back in Cuba, into resistance groups, or established contact with resistance groups. This was a group that also worked in putting in caches that would supply people, either paramilitary forces in Cuba or agents that were being run by the Foreign Intelligence Group.

All right. Then there was a Covert Action, people who dealt with exiled refugee groups that were involved in radio activities, publications, that kind of thing. Then there is a whole panoply of – then there was Maritime, in terms of finance, and so on. Security was a branch. Obviously, under that kind of system, no executive, whether he is president of a corporation or a Chief of Station, can see every single piece of paper that comes in or out, but clearly there was a review procedure whereby program reviews were conducted, individual operational reviews were conducted.

….During this period of time there were a lot of independent Cuban groups who claimed that they had sponsorship from the Agency but did not, and were operating, and there was a period of time when these groups could not run their operations from Florida without running the risk of being picked up by Customs, Immigration, Coast Guard, the FBI, or if we had information on it, you know, we might pass the information to the Coast Guard so that they could keep them from going…..somebody like Alpha 66 or Commando L or somebody like that, they were not part of the CIA apparatus.

Washington, Task Force W, essentially did not run any paramilitary operations where they took command and control fro sending people to Cuba. For instance, if Task Force W in Washington wanted to plant a radio in Cuba which was to be picked up by foreign intelligence agents who could report, they would task us to implant that radio in a cache in a particular area in Cuba, for instance, Oriente province. We would know simply that it was a radio perhaps. We would put it into Oriente province, write up the site, give them the rip cord. They would communicate to the agents in Cuba who would go recover the cache.

I had no contact with the Artime group, as a general rule. They  [Task Force W] also had contact with Manolo Ray which I did not have contact with….

You know, the Agency had a highly compartmented mechanism. You know, let us dispel one thing very promptly here. If you are asking me was I aware of all these contacts, you know, with the Mafia – and I think I can tell you frankly at that time I was not - Harvey would come to Miami to visit me to review the activities of the station, and while there would go off on his own and make his contact with whomever he was meeting. I knew he was meeting somebody, but it was not up to me to find out with whom he was meeting or why he was meeting them or what he was doing with them.

…In this business you just do not ask your superior, what are you doing? That is just not cricket; that is not the way the game is played.

….I had the impression from Harvey going off that he was meeting with somebody, and at one point in time I came to the impression that he was meeting a guy by the name of John. Who John was, I had no idea. We were involved in an attempt to try to find two Soviets at one point who were of interest. The fellow who provided the lead to that had been a member of one of the casinos in Cuba at some time.

I do not remember the man’s name. It may come to me…..

[ Called back for a second session, a seven page transcript, the name of this person is REDACTED but is probably John Martino.]

[Miami station had no direct relationship with Tony Verona]

My recollection of this AMLASH case is as follows. At some point in time, I had a conversation with Desmond FitzGerald in Washington during one of my periodic visits to Washington from Miami. We discussed at that meeting the nature of our approach to the military establishment in Cuba. In the context of this conversation, Mr. FitzGerald asked me if I thought whether it would be a good idea for him to meet one of these Cuban military personalities, and he subsequently identified to me the personality he was talking about was AMLASH-1.

My advice to him was that it would probably not be a good idea for him to meet him, and the only thing that I could see coming out of that king of contact would be that he, Mr. FitzGerald, would get a personal feel for what makes some of these people tick, in human terms, and that that probably was too high a price to pay for the prospect if anything went wrong, an individual as prominent in Washington as, both within the Agency and the social world of Washington, would be exposed in the Press. That would create a flap that I thought was not worth what would be gained from that meeting.

This gentleman, being AMLASH-1, was met in Spain. I also recall after having left the Cuban activity that I read a Press article showing that he had been apprehended and I remember reading the publicity of that particular activity. It is also my recollection that we put in a cache for him.

…I was later Chief of the WH Division from 1972 to 1973, and I did read some of the files….

…FitzGerald and his staff wee working on what I was doing in Miami to try to establish contacts with the Cuban military. In other words, we saw this as a multi-faceted approach. First, we wanted penetration of the Cuban military so that we could collect intelligence. What were their strengths, weaknesses, what was their mood, where were things going? Secondly, we wanted from these sources operational intelligence. Who – in other words, who in these groups were dissatisfied as Fidel consolidated. Who could provide leadership for a counter-movement against Fidel?

We were looking for people, once we had identified them, to see if we could establish contacts with any of those leaders so we could see whether there was a basis for working toward an overthrow of the Castro government. You know, those were the basic steps.

Now as you got down to talking about how you overthrow Castro, obviously the question comes in of how does a group who wants to run a coup or take power take power, and obviously one of the things that has to be looked at is where does the existing leadership going to be during this event, who has control of the various units? So our discussions were all in that context.

[There are fourteen folders in the AMLASH file]

MF p. 103

For most of those commando teams, you were looking for a different kind of weapon. You are looking for a weapon with a high range of fire power over a short distance to deal with an emergency situation rather than the kind of, you know, weapon that we are talking about. In other words, you would find that type of group armed with a submachine gun, as for example.

…Most of the missions that were run were run against targets that were in fairly close proximity to the shore. If you are going to put a party to attack your objective, let us say this objective was a petroleum storage tank, if you were going to do this by putting charges up against the petroleum storage tank that meant that you had to have a group infiltrate close enough to put the charge on the tank. Some distance away from them you would give them a second element of the commando team which would be providing covering fire for this group in case they got into trouble and cannot handle it on the ground. This covering fire group might have had a light machine gun, a Belgian weapon. They could have these kinds of weapons and they did have these kinds of weapons which in the definition you are using could be used as a sniper weapon or whatever, but the basic reason for having that weapon was to provide fire support for the other members of the commando team

[Rolando Martinez “More than once he was given personal charge of weapons drops in which special rifles with silencers and telescopic sights were left at designated inland spots.”  “I took a lot of weapons to Cuba, some of them were very special weapons for special purposes. They were powerful rifles with sophisticated scopes, Springfields with bolt action, rifles only used by snipers.  They were not sent to shoot pigeons or kill rabbits. Everyone in the Underground was plotting to kill Castro and the CIA was helping the Underground. I was with the Underground as well as the CIA, so you can see I was involved in the plots too, but that is also obvious.” ]

[Mr. Murray, who was in the Havana Station, Arthur Avignon who was head of the Havana Station for awhile -]

MF p. 117

There was an office of ONI, Office of Naval Intelligence representative on Guantanamo….

AMOT. That was a program involving a Cuban émigré group that was used as an operational support mechanism to support the Miami Station. They were interviewers of refugees who came out of Cuba. They provided translator personnel to translate the Spanish language publications that were of interest to us. They provided information on the various mainstream activities that were going on in the Cuban exile community.

[Lansdale arrived in Summer of ’62 in special plane that landed at Homestead AFB]

MF p.130-163 Speech of Fidel Castro? ]

SECOND SESSION

NARA Record Number 157-10014-10046 (7 pages)

Testimony of “Halley” (Alias) In Executive Session

Recalled for more questions.

Monday August 25, 1975

SSCIA

http://www.maryferrell.org/mffweb/archive/viewer/showDoc.do;jsessionid=0994C0FC7C93364CA9C3267DE7DE71CB?docId=33939

Shackley recalled the name of North Miami man who provided info on possible Soviet defectors in Cuba  but the Name is REDACTED.

[BK Notes It is possibly, probably Eddie Bayo or John Martino] 

http://www.spartacus.schoolnet.co.uk/JFKshackley.htm 



https://www.spencorp.info/pine-gap-and-the-whitlam-coup

‘The Dismissal’ when the Governor-General of Australia Sir John Kerr terminated the Prime Minister of Australia Gough Whitlam’s reign and dissolved both houses of parliament. 

https://www.spencorp.info/pine-gap-and-the-whitlam-coup


 

Gough Whitlam
 

Australian Security Intelligence Organisation


Australian Secret Intelligence Service

Ted Shackley - CIA

Augusto Pinochet

Salvador Allende

Aerial View of Pine Gap

Sir Maurice Oldfield

Michael Hand

Frank Nugan

Richard Stallings

Malcolm Fraser

Victor Marchetti

Peter Barbour

The Golden Triangle

Neil Evans

Christopher Boyce

Daulton Lee

Tirath Khemlani

John Kerr

James Jesus Angleton

William Colby

 ‘The Dismissal’ when the Governor-General of Australia Sir John Kerr terminated the Prime Minister of Australia Gough Whitlam’s reign and dissolved both houses of parliament. 

“There is one kind of history – the history in newspapers etc. which are all lies. There is another kind of history which is far more scandalous and it’s the one that tells you how it really happened.” – Unknown Subtle.

Almost all Australians have heard of ‘The Dismissal’ when the Governor-General of Australia Sir John Kerr terminated the Prime Minister of Australia Gough Whitlam’s reign and dissolved both houses of parliament.  Kerr then handed the power over Australia to the opposition Liberal Party, making Malcolm Fraser caretaker Prime Minister. Australians have not ever questioned why; they’ve just accepted the mainstream Media’s vague commentaries. A Coup is something that happens in unstable third world countries, not a comfortable land like the Commonwealth of Australia.

The ‘Baby Boomer’ generation of Australia was busy working hard, trying to pay their new mortgages in the face of ever increasing interest rates, raising their families and relying on the six o’clock news to keep them informed. The talking heads rattled on with talk of the senate’s ‘block of supply’ while the Murdoch media spewed out front page stories about Rex Connor’s involvement in ‘the loans affair’ and Jim Cairns’ personal life. In reality, the truth is far more complicated and disturbing.

To truly understand these events, at its core, I have to demonstrate that Australia is not the free and independent nation its citizens believe it to be and quite a bit of background is required.

Australia has much vulnerability; however, here is what I believe to be its biggest. Australia has a small population considering the huge land mass that it is. Its population is spread out but centralised mainly along the southern and eastern coastlines. Its geographic location in relation to far more dominate financial and populous nations like China and Indonesia is something that our nation needs to be aware of. In World War two, the Japanese made it to Darwin and that is one of the reasons that we have allowed the United States to set up so many military bases on Australian land. In addition to this, we are bonded to Great Britain, both through the Commonwealth and on a deeper level, her Reserve Bank is owned by the same group of people who own the United States Federal Reserve and The Bank of England.

The following critique will provide background for the events leading up to the dismissal of the Whitlam government. I will also trace the history of select interest groups who had/have an interest in the affairs of the Australian government. Furthermore, it will look at the fallout providing probably more questions than answers.

 

At the end of World War Two, the fear of communism ran rampant across the western capitalist world fuelled by what is today referred to as ‘McCarthyism’. It was on this basis Prime Minster of Australia, Ben Chifley, in 1949, established the Australian Security Intelligence Organisation (ASIO). ASIO was basically a spy network established by the government to monitor the Australian people and spy on ‘people of interest’. ASIO was the Australian organisational equivalent to the British MI5 or the United States FBI. Very quickly Australian governments lost control over ASIO. Over the next two decades, ASIO was to spy on and keep detailed dossiers on over 100,000 Australian citizens.

This was only officially confirmed in the 1990’s when ASIO released a significant amount of files, recordings, and films of Australians dating back to the Menzies era.  All the spy files kept by ASIO were negative and in some case, they went as far blacklisting individuals, and therefore these people were unable to obtain work, particularly civil service employment. ASIO at this time was not held to account in any public manner. It was a secret and silent cabal which operated unbeknownst to most Australians. 

  

Three years later Prime Minister Sir Robert Menzies established The Australian Secret Intelligence Service (ASIS) Australia’s international spy network. The organisation operated in extreme secrecy. Very quickly the organisation agreed to information sharing with The United States (CIA) and British (MI6). By this stage the United States government, under the weak presidency of Truman, had already lost control of the Central Intelligence Agency. Under ‘Operation Paperclip’ the CIA was able to set up a huge intelligence network through the entire world immediately follow the Second World War. Over the next 20 years, the CIA started to interfere with global politics worldwide.

In South East Asia the CIA’s involvement prolonged the Vietnam War. Through its airline ‘Air America’ it started to import millions of dollars’ worth of heroin and marijuana from the ‘Golden Triangle’, smuggling it back into the States in the coffins of dead American soldiers. The money obtained from the sale of the illegal drugs trade served as a means of funding other covert operations. The Golden Triangle is the border of Thailand, Laos, and Myanmar (Burma), it is called the Golden Triangle because as the opium trade covers three countries, the opium can’t be paid for by currencies, therefore, all financial transactions are made with gold.

Cambodia’s stable leadership had steadfastly refused to take sides in the Vietnam conflict; unfortunately, this didn’t protect them from Kissinger, Nixon and the CIA. In 1969 The US through Air America started carpet bombing Cambodia under the pretext that the North Vietnamese soldiers were using the country as a staging base for its attacks on the South. The bombing of Cambodia lasted for four years, without official recognition of the US Congress.

The humanitarian cost on Cambodia; a nation who was not involved in any direct war was devastating. The Prince of Cambodia Norodom Sihanouk went into exile while the USA dropped more the two and half million bombs on the country. Upwards of 500,000 people were killed with millions more displaced. In the midst of this chaos the Khmer Rouge, led by Pol Pot rose up and took control of the country which led to one of the worst acts of genocide in modern history. All of this in a country that the US weren’t even at war with. 

  

In 1970, Chile democratically elected Salvador Allende as President. One of Allende’s election promises was to nationalise Chiles copper mines. The nationalising of Chiles resources was a threat to United States industrial interests in Chile. US company IT&T controlled the Chilean telephone network and had a lot to lose under the Allende government. IT&T voices its concern to the US government, Henry Kissinger in particular. Kissinger and Nixon then authorised the CIA, with a budget of $8-10 million to infiltrate and destabilise the Chilean government thereby protecting its interest in Chile via the funding of a military coup.

In 1970 Chilean military commander Rene Schneider was assassinated. In his place, Allende appointed the CIA-backed General Augusto Pinochet. In 1973 Pinochet lead the coup which overthrew the government and led to the death of Allende. Pinochet then backed by the CIA (As supported by declassified CIA documents), took control of the country and brutally tortured and murdered any opposition to his leadership.

The CIA can also lay claim to the Iranian coup d'état on 19th August 1953 which overthrew of the democratically elected Prime Minister of Iran Mohammad Mosaddegh when he attempted to nationalise the countries oil. Iran was then run by the US backed, Shah of Iran Mohammad-Rezā Shāh Pahlavi until the 1979 Iranian Revolution.

Furthermore, The CIA was active in drug smuggling out of a number of Latin American countries, the installation puppet governments, and constant destabilising actions, within these countries. These operations were backed by the US the Military industrial complex and US Corporations commercial interests. (As supported by declassified CIA documents, ex-CIA agents, and CIA leaks).

 

Closer to home, the CIA had spent a decade fighting in Indonesia before they assisted in the installation of dictator President Suharto, a favourable condition for US traders accesses to Indonesia’s lucrative mining operations. 

While the mission of the CIA was supposed to be that of an intelligence network it had quickly morphed into a tool for American Corporatocracy worldwide. While ASIS was sharing information with CIA, the CIA viewed ASIS as satellite intelligence network for itself. It was not as forthcoming in information sharing.

In 1972 Gough Whitlam’s Labour party won the federal election, this was Australia’s first Labour government in 23 years and Australian society was about to change drastically. The Whitlam government reforms included; Wage rises, Pensions and Superannuation, Free health care, Equal pay for women, Free Tuition, Aboriginal land rights and other programs, as well as replacing the old national anthem; ‘God Save the Queen’, with the new ‘Advance Australia fair’.

Henry Kissinger the US National Security Advisor and Secretary of State, and President Richard Nixon mistrusted of the Whitlam government so much that they cut them out of the intelligence loop in breach of the UKUSA Security agreement. They referred to (ALP) Australian Labour Party as a socialist government and were eager to oust it from power.

Much to the anger of the United States, and the private British banking system, the Whitlam government withdrew Australian troops from Vietnam; Voiced support of Palestinian land rights and the proposed the setting up an Indian Ocean peace zone.

Gough Whitlam publicly condemned the Nixon administration for the bombing of Hanoi. Trade Minister Dr. Jim Cairns allegedly called for Australian people to protest through boycotting US goods. Whitlam sent a formal letter of objection, hand delivery to the White House by an Australian diplomat. There are conflicting reports over how informal communications between the Whitlam-Nixon governments regarding the ‘Christmas Bombing’ played out. Kissinger was reportedly infuriated. Ultimately the US Ambassador to Australia Walter Rice was recalled. 

 

As a countermeasure to the Whitlam’s government opposing of the US, The US sent Marshall Green, to Australia as ambassador (1972-75). Green was a CIA agent known as the " "coup master" and had been involved in three coups, including the 1965 Indonesian operation, which killed over a million people, while bringing Suharto to power. Green’s involvement was established to deal with “the Whitlam Problem”.

While all these actions were going on, there were just as many changes behind the scenes both nationally and internationally;

Locally, it has been alleged that the day after Whitlam took government he ordered ASIO boss Director-General of Security Peter Barbour not to vet any of his cabinet and staff. Along with soon to be Attorney General Lionel Murphy, Whitlam informed Barbour that ASIO was going be held to a parliamentary managed level of accountability.

 Despite this, the ASIO hunt for Communist in Australia continued to focus of the Australian Trade Unions. ASIO agreed with the CIA view that Gough Whitlam and his Labor government was a communist / socialist threat.

For years the Australian Communist parties had tried to align themselves with Australian trade unions. The Labour Party had long been aligned with the ACTU (Australian Council of Trade Unions). When questioned by the press about the conduct of the ACTU, Gough Whitlam declared total faith in the ACTU’s leader Bob Hawke. ASIO, on the other hand, were deeply entrenched in spying on members of the ALP and the ACTU. This involved videotaping and phone tapping of students, and party and union members. This conduct was initiated by the heads of ASIO and was not authorised by any government department.

According to Joan Coxsedge, (an Australian activist, former politician and leftist journalist); in 1973, Whitlam went to Bill Robertson, the director-general of ASIS and demanded to know the names of operatives and what operations they were undertaking. Unbelievably, he found out Australia operatives were in Chile, working under the CIA’s direction, to destabilise the government of Salvador Allende. Whitman ordered that they immediately cease these actions. ASIS disregarded the order from Whitlam and at least two Australia ASIS operatives were in Chile during the September Coup that resulted in Allende’s death and Pinochet seizing control of the country.

  

The standoff between Gough Whitlam ASIO & ASIS was brought to a head when Attorney General Lionel Murphy, with Federal Police, raided the ASIO offices in Melbourne. Murphy seized files with a search warrant on the grounds of national security. The government believed ASIO was withholding serious information from the government. As a result of this raid, in August 1974, Whitlam set up the ‘Hope Royal Commission’ to investigate the country's intelligence agencies. (The first report of the finding were not released until 1976. Between 1976 and 1977 eight multi-volume reports of the RCIS were released to the Governor-General, however, only very limited information was made public. Thirty years later a review was undertaken to determine what further pages of the reports could be released to the public. In 2008 much of the remaining records were released via the Australian Governments National Archives. Some information was still considered too sensitive to be released.)

Enter The Nugan Hand Bank:

In 1973 The Nugan Hand Bank was established in Australia by Frank Nugan, an Australian lawyer with a questionable history, and Michael Hand, a former CIA contract operative. The bank's directors were all CIA (current and ex) and US military personnel. Four of them list their postal address as care of Air America. The bank's executives included former Rear Admiral Earl Yates as bank president and ex-CIA head William Colby as legal counsel. The bank offered tax breaks and high interests as a means of encouraging high-flying investors. Furthermore, it made assurances of anonymity via numbered accounts, tax-free accounts, and specialist investment assistance. The bank was backed by nothing and had no reserves.

In 1974 the bank became a financial go-between for the US sales of armoury to Angola. Many CIA and US military individuals including Bernie Houghton, Edwin Wilson, Ted Shackley, Thomas G. Clines were involved in the bank.

Nugan Hand obtained a banking license in the tax haven of the Cayman Islands in 1976.

With its head office in Sydney, it set up branches in Chiang Mai, Manila, Hawaii, Cape Town, Hong Kong, Taiwan, Cayman Islands and Washington D.C.

In offering a secret numbered account, ensuring anonymity for its investors, the bank was soon flooded with deposits. It opened the door for money laundering. It is alleged that local drug dealers started depositing funds in the bank. The huge marijuana traders from the Griffith (Robert Trimbole and family) area of Australia was said to have used the bank to launder its profits. The Griffith drug cartel was part of the huge Mr. Asia drug syndicate.

   

For the next seven years, the CIA used the bank as a means of hiding and laundering their funds from illegal operations such as arms trades and drug dealing. 

 

 Nugan Hand established strategic banks around the world. On the recommendation of Murray Stewart Riley, an ex-NSW police officer who was eventually convicted of importing heroin into Australia, Frank Nugan set up and branch in Chiang Mai. Their Chiang Mai office was primarily involved in the money obtained by the CIA through the trade of huge amounts of marijuana and heroin. The marijuana and heroin were coming out of the ‘Golden Triangle’ on the borders of Thailand, Burma, and Laos.

The CIA had been smuggling drugs out of the Golden Triangle throughout the Vietnam War, sometimes in the coffins of dead US soldiers. It has been estimated that this endeavour earned them $59 million dollars.

Gough Whitlam spent quite a bit of time traveling throughout Europe and South East Asia in his bid to open Australia up to trade and political alliances. Not an unreasonable approach from an open a reformist government. 

 

Friends or Foes:

The CIA’s (America and Britain’s) interest in Australia cannot be understated. Whitlam’s sweeping reforms left the major foreign interests deeply concerned that Australia was looking to relinquish its ties to the Commonwealth and establish an independent nation; the Republic of Australia and closing the foreign espionage bases on its territory. This was never stated publicly; however, Whitlam government was well aware of some of the other local and national events involving CIA influence. The Whitlam government had good reason to be suspicious of the close affiliation between the CIA, ASIS, and ASIO.

Gough Whitlam had spoken publically and repeatedly and was quoted in some Australian newspapers about his dislike of the number American military bases in Australia. At the top of his list was the large a very secretive Pine Gap installation situated just north of Alice Springs. Whitlam had gone as far as stating he wanted to close the Pine Gap installation down.

Buried deep in the middle of Rupert Murdoch and other print media were regular stories about Whitlam’s concern about American spy interests in Australia: “US bases ticklish issue for Labor” “Whitlam undertakes to axe two key US defence bases” “PM rejects Anthony’s denial on CIA” “Anthony CIA Connection” Whitlam’s CIA charges ASIS head resigns” “Whitlam to confront critics on US Bases”

In 1966 the Australian government gave the go ahead to the USA to build the Pine Gap installation. The base was built in 18 months and was functional by 1968. A ‘no fly zone’ of 2.5 miles was established around the secretive base. The base was supposed to be a joint venture between the US and Australian governments. The location of Pine gap was the key to its secrecy. Building it outside of Alice Springs meant that it was impossible for mass protests due to its isolated location. A strength that the instalment maintains today.

   

Richard Stallings, head of Pine Gap (1966-68) (CIA) and Victor Marchetti, Chief Executive Assistant (CIA) drafted the Co-operative treaty for the Joint Defence Space Research Facility between the United States and the Australian Commonwealth governments at Pine Gap. Officially the agreement called for full sharing of intelligence gleaned from satellite intercepts of Eurasian satellite communications. Basically, all information gathered from the base would be shared equally with both governments.

The American arm of the facility was partly run by the U.S. Central Intelligence Agency (CIA), U.S. National Security Agency (NSA) and U.S. National Reconnaissance Office (NRO). The station is a key contributor to the global surveillance network ECHELON a code name operated on behalf of the five signatory nations to the UKUSA Security Agreement—Australia, Canada, New Zealand, the United Kingdom, and the United States, Referred to by a number of abbreviations, including Five Eyes.

After Whitlam’s election in 1972, US policy at Pine Gap (CIA) changed as well as spying on Eurasia, they began spying on Australia. This involved covert interference with the Australian government and The Australian Trade Unions. The US also ceased sharing the information obtained by the satellite intercepts with the Australian Government.  This information was verified in the 1985 Hollywood movie ‘The Falcon and the Snowman’.

In short: The movie follows the story of Christopher Boyce and his childhood friend Daulton Lee.

In real life, In 1974 Boyce’s father, an aerospace security manager and FBI agent helped Boyce get a job at TRW, a Southern California aerospace firm in Redondo Beach, California. Boyce’s job was as cipher his role was to take the information obtained from Pine Gap and reroute it to the appropriate CIA and other government organisations. Not long after starting work in in TRW's "Black Vault" high-security division Boyce started to receive transcripts from Pine Gap discussing the proposed overthrow of the Australian government. Therefore not only was information being withheld from Australia but they were also actively working towards a coup in Australia.

Boyce being outraged by what he saw as the betrayal of the US alliance with it allied nation Australia, wanted to destabilise the CIA actions. To do this he enlisted the help of his childhood friend and minor drug dealer Daulton Lee. Boyce started to sell selective Spy intercepts regarding Australia and “The Whitlam Problem” to Russia, via Daulton Lee. Boyce and Lee were caught, convicted of espionage and jailed. Boyce spent the first ten years of his prison sentence in solitary confinement.

  

Today, Boyce laments his ‘one man’ war as ‘knee jerk’ reactionary behaviour based upon juvenile outrage at the USA military industrial complex conduct.

Boyce lives in a quiet town in the US these days and doesn’t like to speak about the events of the 1970’s, however, in 2009, he granted an interview with Australian SBS documentary crew. The documents Boyce saw and passed on have not been fully released to the public. Boyce expressed complacency toward the people of Australia. Based upon the lack of interest Australians had shown over their own government’s treatment he said “I view Australia as a satellite state (Of the United States) just like Alaska”. 

Boyce was adamant that CIA operatives had infiltrated the ACTU (Australian Council of trade Unions), the heartland of the ALP (Australian Labour Party). Boyce said during the interview, that he heard, during his trial, the ACTU’s then President Bob Hawke had denied that the ACTU had been infiltrated by CIA dissidents to corrupt the Australian union system. Boyce stated that he believed Hawke was corrupt and a liar. He expressed bemusement that Bob Hawke later became the Australian Prime Minister.

This story on its own could be dismissed as conjecture and hearsay, however, when taken in context with other current events it gains greater credibility.

While mainstream Australia remained largely unaware of the serious nature of the espionage being carried out at Pine Gap, and the peril its government was in, by pursuing the matter, which was provoking even more serious interest within the CIA and US Military complex:

James Jesus Angleton, The Head of Counterintelligence for the CIA said: “…and we saw this Whitlam government come into power moving in, barging in. We were deeply concerned.”

“You don’t see the jewels of counter intelligence being placed in jeopardy by a party that was seeking a new way for Australia”.

“…It’s a tender plant that needs nourishment. Some of the major secrets that deal with the world I was once in were given to the Australians services (ASIS and ASIO)”.

On 21st October 1975 Gough Whitlam sacked Head of ASIS Bill Robertson, In September of the same year, Whitlam had sacked ASIO head, Peter Barbour.

There was an allegation that then leader of the Country Party; future Deputy Prime Minister Doug Anthony had close ties to the CIA. Whitlam even stated publically In Alice Springs on November 2nd, 1975 that “…I’ve had no affiliations with CIA money in Australia as Doug Anthony has…”

An October issue of The Australian Financial review cover story banner read “Security Blow-Up” beneath the banner headline the paper contained two stories both at the top and bisected by a partition. The parallel headlines read “Whitlam’s CIA charge; ASIS head resigns” the other “Anthony’s CIA connection”. Allegations went as far as saying CIA agents were living in Doug Anthony’s house. 

Whitlam responded to the pressure by addressing the nation via a speech at a press conference on 14 October 1975, where he stated: “I made it clear that the Government will not yield to pressure. We will not yield to blackmail. We will not be panicked. We will not turn over the government of this country to vested interests, pressure groups and newspaper proprietors whose tactics would destroy the standards and traditions of parliamentary government”.

A telex communication recovered from ASIO read:

Top Secret – Urgent message: -

From: Ted Shackley – CIA East Asia Division

To: Director General ASIO

“On November 2 (1975) the Prime Minister of Australia made a statement at Alice Springs, that the CIA had been funding Anthony’s National Party in Australia…

…On November 6 (1975), the Prime Minister publicly repeated the allegation that he knew of two instances in which CIA money had been used to influence domestic Australian politics.”

CIA cannot see how this dialogue with continued reference to CIA can do other than blow the lid off those installations in Australia where the persons concerned have been working... particularly the installation at Alice Springs...The Director General (ASIO) should be assured that the CIA does not lightly adopt this attitude”.

“Your urgent advice would be appreciated… Reply should be made to the CIA… The US ambassador (Green) is fully informed on this message”

Theodore ‘Ted’ Shackley, then- chief of CIA east Asia division was a hard-core long term CIA agent, He was Involved in the ‘Bay of Pigs’ invasion and was responsible for a number of covert operations in Vietnam.

Add this to the following tape recording and dare I say it, it appears there was a conspiracy at hand.

A Tape recording of Victor Marchetti, Chief Executive Assistant, to the CIA revealed the following quote: “The Cia don’t (sic) do these for their health. Just to play games, there was a goal there and the goal I think was to get rid of Whitlam. That was the whole purpose I think was to bring in someone that they were closer with and feel would be more reliable and see things more their way. In a sense, it’s a Chile but in a much more muted and sophisticated and subtle form”.

 

With the renewal of the Pine Gap treaty lease due in December 1975, the situation was about to reach its climax.

CIA director William Colby called upon his counterpart at MI6 Sir Maurice Oldfield. He stressed the importance of the Pine Gap installations strategic significance in the field of counterintelligence, something that Oldfield and MI6 were also acutely aware of. Colby pointed out that as Australia was part of the British domain then it was his job to keep the Australian government in line. 

What the Australian public generally was hearing via their media:

The Loans Affair: The Whitlam government had big dreams for Australia, which included the construction of a natural gas pipeline from central Australia all the way to the ports of Fremantle. For this and other projects, the ALP’s Minister for Minerals and Energy Rex Connor looked for a loan of $4 billion dollars. It was Connor and the Government’s intention for Australia to own 100% of the new constructions, borrowing from the usual lending partners, Europeans and US would have resulted in having to share ownership of the new construction with the lenders. It was a simple, but dangerous idea.

Rex Connor met with the shady individual, Pakistani broker Tirath Khemlani, Khemlani who claimed he was a loans broker for a number of wealthy Arab investors happy to loan the money to Australian at an attractive interest rate. Khemlani promised everything however he delivered nothing but excuses. Under mounting pressure, with the issue dragging on and amounting to nothing, on 20th May 1975 Whitlam ordered Connor to cease his contact with Khemlani.

Until Connor’s attempt to borrow from the Middle East, Australia had always borrowed money from via the Government Treasury usually from United States banks. Whitlam was threatened by the US; they told him they would not lend Australia any money unless they agreed to not borrow money from any other source.

At some point this chaotic episode involving Rex Connor, Jim Cairns & Khemlani was leaked to the media. The Murdoch Press was relentless in the pursuit of Labour party gossip. This put more pressure on the Whitlam government.

Dirty tricks become rife in the espionage and media game. Former CIA agent Edwin Wilson as part of the secret ‘Task Force 157’ whose job it was to manage numerous CIA properties, including Pine Gap, engaged the services of contract agent Joseph Flynn. Together Wilson and Flynn forged and ‘leaked’ documents which surfaced in 1975, that alleged ALP ministers had received kickbacks from the ‘loans affair’. In 1981 Flynn told the National Times he was the responsible for forged documents, which included telexes. Flynn claim his services were paid for by Michael Hand, co-founder of the Nugan Hand Bank.

It is quite possible that many of the documents that resulted in Rex Connor and Jim Cairns being dismissed came from this source. A proper investigation of the ‘leaked’ files was not possible for the government at the time due to the speed at which ensuing events happened.

     

As a result of the leak which involved Tirath Khemlani providing copies of telex communication between himself and Connors and Jim Cairns, Gough Whitlam was forced to sack both members of the party. The loss of these two ministers seriously weakened the government’s credibility. (It was later revealed that Khemlani was employed by Dalamal and Sons, a London-based commodity-trading firm, unfortunately, I couldn’t find any more relevant information on him).

 

So the Whitlam Government found itself in a financially vulnerable position. With no money from overseas, they were was desperate to push the appropriation bills through the Senate to gain funding from the Treasury.

Newly elected Opposition leader Malcolm Fraser was originally undecided about whether to block supply or not. At some point, he decided he would.

The ‘official’ story goes like this: The Liberal Party blocked the Treasury appropriation bills in the senate, with the intention of forcing an early election. Gough Whitlam having already been forced into one early election refused to call another one. Whitlam believed that if he held out long enough a senator would cross the floor and end the stalemate (On the ABC’s four Corner ‘20 years anniversary of the dismissal’ report senator Neville Bonner said he was ready to cross the floor and pass the bill “that afternoon” [meaning prior to his learning of the dismissal]), however that was not to be. (1979 Bonner was named Australian of the year by the very government he help put in place by not crossing the floor).

I have simplified this scenario and not gone into the high court changes to the laws of the senate and new appointments due to vacancies left in the senate because in the big picture they not really relevant.

According to Journalist and author Steve Gerlach, Whitlam had reached a point where he was going to expose to parliament, the names of CIA operative active within Australia. He was going to give that speech on the afternoon of the 11th November 1975.

Kerr called Whitlam to come and see him at Government house on the 11th of November 1975 and without warning sacked Whitlam and his government. Kerr had already met privately with Malcolm Fraser and told him that he was to form an interim government and Fraser agreed to pass the Bill.