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Schwartz' challenge: "Kosovo 'Freedom Fighters' financed by organized crime" -- from Iran/Contra to Enron

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  • David Crockett Williams
    Stephen Schwartz wrote: I challenge...[anyone]...to cite ...a serious investigation that includes names, dates, and places of alleged actions, to back up the
    Message 1 of 1 , Jan 23, 2002
      Stephen Schwartz wrote:

      "I challenge...[anyone]...to cite ...a serious investigation that includes
      names, dates, and places of alleged actions, to back up the Serb propaganda
      about the KLA being involved in heroin..."

      "> I lived in Kosovo for a year. I could never even score a joint, and I
      speak Albanian. The centers of heroin usage are among Slavs in Skopje,
      Macedonia, and Belgrade, Serbia."

      "> David, do not send me any more communications that are not personal to
      me."


      I suspect this was addressed to another David, but, just in case, this is
      personal to Schwartz since his seems to be the primary influence in this
      arena behind Jack's cursory analysis of the material at www.copvcia.com as
      "lies", which is absurd to anyone who can read carefully. When you see BCCI
      below, think about Enron as a sequel.

      Schwartz (dis)misses the main point here, that it is not heroin usage but
      funding from drug smuggling corruption of people in power that is at the
      root of the problem here. It is this corruption that is the problem and
      can't be solved until recognized and acknowledged through the veil of blind
      "patriotism".

      Following is one of several articles found at below website searched for
      articles containing "KLA", an article which addresses Schwartz' challenge
      above, if and when he has time to review this site whose journalism Jack
      dismisses as "lies" -- in this case an article by a prominent Canadian
      economics professor with 33 footnoted references.

      As is his pattern Jack will probably devote 30seconds to skimming the below
      and then a few minutes to compose another screedmail in response, but facts
      are facts.

      How deep and wide is this corruption of "organized crime"? Appended below
      is overview from former GHW Bush HUD official and longtime Ira Einhorn
      acquaintance Catherine Austin Fitts relating to "behind the scenes" data
      manipulation programs of which Enron will perhaps be recognized as the "tip
      of the iceberg".

      Fitts:

      "The Administration and Congress know exactly what to do if they want to
      control the money for honest and law abiding Americans. They are not doing
      it because they believe that we are too stupid to understand that they are
      running a distraction on purpose and because they believe that their bread
      is buttered by buttering up the guys who now have all the cash. There is an
      important reason they are not holding hearings on over $3 trillion of money
      and gold missing from HUD, DOD and the US Treasury over the last three
      years.

      "Our Congressman with a very few minor exceptions are selling us down the
      river. We are paying them $150,000 a year plus to distract us and help the
      criminals who took us down for $500 billion on Iran Contra/S&L fraud, do it
      again."



      from http://www.copvcia.com search for "KLA" containing articles,

      http://www.copvcia.com/free/regional/kosovo1.html


      KOSOVO 'FREEDOM FIGHTERS'
      FINANCED BY ORGANIZED CRIME

      By Michel Chossudovsky


      Department of Economics, University of Ottawa
      Ottawa, CANADA K1N6N5
      Voice box: 1-613-562-5800, ext. 1415
      Fax: 1-514-425-6224
      E-Mail: chossudovsky@...

      Wednesday, 7 April 1999

      -----

      Heralded by the global media as a humanitarian peace-keeping mission, NATO's
      ruthless bombing of Belgrade and Pristina goes far beyond the breach of
      international law. While Slobodan Milosevic is demonized, portrayed as a
      remorseless dictator, the Kosovo Liberation Army (KLA) is upheld as a
      self-respecting nationalist movement struggling for the rights of ethnic
      Albanians. The truth of the matter is that the KLA is sustained by organized
      crime with the tacit approval of the United States and its allies.

      Following a pattern set during the War in Bosnia, public opinion has been
      carefully misled. The multibillion dollar Balkans narcotics trade has played
      a crucial role in "financing the conflict" in Kosovo in accordance with
      Western economic, strategic and military objectives. Amply documented by
      European police files, acknowledged by numerous studies, the links of the
      Kosovo Liberation Army (KLA) to criminal syndicates in Albania, Turkey and
      the European Union have been known to Western governments and intelligence
      agencies since the mid-1990s.

      ...The financing of the Kosovo guerilla war poses critical
      questions and it sorely test claims of an "ethical" foreign
      policy. Should the West back a guerrilla army that appears
      to partly financed by organized crime.1

      While KLA leaders were shaking hands with US Secretary of State Madeleine
      Albright at Rambouillet, Europol (the European Police Organization based in
      the Hague) was "preparing a report for European interior and justice
      ministers on a connection between the KLA and Albanian drug gangs."2 In the
      meantime, the rebel army has been skillfully heralded by the global media
      (in the months preceding the NATO bombings) as broadly representative of the
      interests of ethnic Albanians in Kosovo.

      With KLA leader Hashim Thaci (a 29 year "freedom fighter") appointed as
      chief negotiator at Rambouillet, the KLA has become the de facto helmsman of
      the peace process on behalf of the ethnic Albanian majority and this despite
      its links to the drug trade. The West was relying on its KLA puppets to
      rubber-stamp an agreement which would have transformed Kosovo into an
      occupied territory under Western Administration.

      Ironically Robert Gelbard, America's specialenvoy to Bosnia, had described
      the KLA last year as "terrorists". Christopher Hill, America's chief
      negotiator and architect of the Rambouillet agreement "has also been a
      strong critic of the KLA for its alleged dealings in drugs."3 Moreover,
      barely a few two months before Rambouillet, the US State Department had
      acknowledged (based on reports from the US Observer Mission) the role of the
      KLA in terrorizing and uprooting ethnic Albanians:

      ...the KLA harass or kidnap anyone who comes to the police,
      ... KLA representatives had threatened to kill villagers and
      burn their homes if they did not join the KLA [a process
      which has continued since the NATO bombings]... [The KLA
      harassment has reached such intensity that residents of six
      villages in the Stimlje region are "ready to flee.4

      While backing a "freedom movement" with links to the drug trade, the West
      seems also intent in bypassing the civilian Kosovo Democratic League and its
      leader Ibrahim Rugova who has called for an end to the bombings and
      expressed his desire to negotiate a peaceful settlement with the Yugoslav
      authorities.5 It is worth recalling that a few days before his March 31st
      Press Conference, Rugova had been reported by the KLA (alongside three other
      leaders including Fehmi Agani) to have been killed by the Serbs.

      COVERT FINANCING OF 'FREEDOM FIGHTERS'

      Remember Oliver North and the Contras? The pattern in Kosovo is similar to
      other CIA covert operations in Central America, Haiti and Afghanistan where
      "freedom fighters" were financed through the laundering of drug money. Since
      the onslaught of the Cold War, Western intelligence agencies have developed
      a complex relationship to the illegal narcotics trade. In case after case,
      drug money laundered in the international banking system has financed covert
      operations.

      According to author Alfred McCoy, the pattern of covert financing was
      established in the Indochina war. In the 1960s, the Meo army in Laos was
      funded by the narcotics trade as part of Washington's military strategy
      against the combined forces of the neutralist government of Prince Souvanna
      Phouma and the Pathet Lao.6

      The pattern of drug politics set in Indochina has since been replicated in
      Central America and the Caribbean. "The rising curve of cocaine imports to
      the US", wrote journalist John Dinges "followed almost exactly the flow of
      US arms and military advisers to Central America."7

      The military in Guatemala and Haiti, to which the CIA provided covert
      support, were known to be involved in the trade of narcotics into Southern
      Florida. And as revealed in the Iran-Contra and Bank of Commerce and Credit
      International (BCCI) scandals, there was strong evidence that covert
      operations were funded through the laundering of drug money. "Dirty money"
      recycled through the banking system-often through an anonymous shell
      company-became "covert money," used to finance various rebel groups and
      guerilla movements including the Nicaraguan Contras and the Afghan
      Mujahadeen. According to a 1991 Time Magazine report:

      Because the US wanted to supply the mujehadeen rebels in
      Afghanistan with stinger missiles and other military
      hardware it needed the full cooperation of Pakistan. By the
      mid-1980s, the CIA operation in Islamabad was one of the
      largest US intelligence stations in the World. 'If BCCI is
      such an embarrassment to the US that forthright
      investigations are not being pursued it has a lot to do with
      the blind eye the US turned to the heroin trafficking in
      Pakistan', said a US intelligence officer.8

      AMERICA AND GERMANY JOIN HANDS

      Since the early 1990s, Bonn and Washington have joined hands in establishing
      their respective spheres of influence in the Balkans. Their intelligence
      agencies have also collaborated. According to intelligence analyst John
      Whitley, covert support to the Kosovo rebel army was established as a joint
      endeavour between the CIA and Germany's Bundes Nachrichten Dienst (BND)
      (which previously played a key role in installing a right wing nationalist
      government under Franjo Tudjman in Croatia).9 The task to create and finance
      the KLA was initially given to Germany: "They used German uniforms, East
      German weapons and were financed, in part, with drug money."10 According to
      Whitley, the CIA was, subsequently instrumental in training and equipping
      the KLA in Albania.11

      The covert activities of Germany's BND were consistent with Bonn's intent to
      expand its "Lebensraum" into the Balkans. Prior to the onset of the civil
      war in Bosnia, Germany and its Foreign Minister Hans Dietrich Genscher had
      actively supported secession; it had "forced the pace of international
      diplomacy" and pressured its Western allies to recognize Slovenia and
      Croatia. According to the Geopolitical Drug Watch, both Germany and the US
      favoured (although not officially) the formation of a "Greater Albania"
      encompassing Albania, Kosovo and parts of Macedonia.12 According to Sean
      Gervasi, Germany was seeking a free hand among its allies "to pursue
      economic dominance in the whole of Mitteleuropa."13

      ISLAMIC FUNDAMENTALISM IN SUPPORT OF THE KLA

      Bonn and Washington's "hidden agenda" consisted in triggering nationalist
      liberation movements in Bosnia and Kosovo with the ultimate purpose of
      destabilising Yugoslavia. The latter objective was also carried out "by
      turning a blind eye" to the influx of mercenaries and financial support from
      Islamic fundamentalist organisations.14 Mercenaries financed by Saudi Arabia
      and Kuwait had been fighting in Bosnia.15 And the Bosnian pattern was
      replicated in Kosovo: Mujahadeen mercenaries from various Islamic countries
      are reported to be fighting alongside the KLA in Kosovo. German, Turkish and
      Afghan instructors were reported to be training the KLA in guerilla and
      diversion tactics.16

      According to a Deutsche Press-Agentur report, financial support from Islamic
      countries to the KLA had been channelled through the former Albanian chief
      of the National Information Service (NIS), Bashkim Gazidede.17 "Gazidede,
      reportedly a devout Moslem who fled Albania in March of last year [1997], is
      presently [1998] being investigated for his contacts with Islamic terrorist
      organizations."18

      The supply route for arming KLA "freedom fighters" are the rugged
      mountainous borders of Albania with Kosovo and Macedonia. Albania is also a
      key point of transit of the Balkans drug route which supplies Western Europe
      with grade four heroin. 75% of the heroin entering Western Europe is from
      Turkey. And a large part of drug shipments originating in Turkey transits
      through the Balkans. According to the US Drug Enforcement Administration
      (DEA), "it is estimated that 4-6 metric tons of heroin leave each month from
      Turkey having [through the Balkans] as destination Western Europe."19 A
      recent intelligence report by Germany's Federal Criminal Agency suggests
      that: "Ethnic Albanians are now the most prominent group in the distribution
      of heroin in Western consumer countries."20

      THE LAUNDERING OF DIRTY MONEY

      In order to thrive, the criminal syndicates involved in the Balkans
      narcotics trade need friends in high places. Smuggling rings with alleged
      links to the Turkish State are said to control the trafficking of heroin
      through the Balkans "cooperating closely with other groups with which they
      have political or religious ties" including criminal groups in Albanian and
      Kosovo.21 In this new global financial environment, powerful undercover
      political lobbies connected to organized crime cultivate links to prominent
      political figures and officials of the military and intelligence
      establishment.

      The narcotics trade nonetheless uses respectable banks to launder large
      amounts of dirty money. While comfortably removed from the smuggling
      operations per se, powerful banking interests in Turkey but mainly those in
      financial centres in Western Europe discretely collect fat commissions in a
      multibillion dollar money laundering operation. These interests have high
      stakes in ensuring a safe passage of drug shipments into Western European
      markets.

      THE ALBANIAN CONNECTION

      Arms smuggling from Albania into Kosovo and Macedonia started at the
      beginning of 1992, when the Democratic Party came to power, headed by
      President Sali Berisha. An expansive underground economy and cross border
      trade had unfolded. A triangular trade in oil, arms and narcotics had
      developed largely as a result of the embargo imposed by the international
      community on Serbia and Montenegro and the blockade enforced by Greece
      against Macedonia.

      Industry and agriculture in Kosovo were spearheaded into bankruptcy
      following the IMF's lethal "economic medicine" imposed on Belgrade in 1990.
      The embargo was imposed on Yugoslavia. Ethnic Albanians and Serbs were
      driven into abysmal poverty. Economic collapse created an environment which
      fostered the progress of illicit trade. In Kosovo, the rate of unemployment
      increased to a staggering 70 percent (according to Western sources).

      Poverty and economic collapse served to exacerbate simmering ethnic
      tensions. Thousands of unemployed youths "barely out of their Teens" from an
      impoverished population, were drafted into the ranks of the KLA.22

      In neighbouring Albania,the free market reforms adopted since 1992 had
      created conditions which favoured the criminalisation of State institutions.
      Drug money was also laundered in the Albanian pyramids (ponzi schemes) which
      mushroomed during the government of former President Sali Berisha
      (1992-1997).23 These shady investment funds were an integral part of the
      economic reforms inflicted by Western creditors on Albania.

      Drug barons in Kosovo, Albania and Macedonia (with links to the Italian
      mafia) had become the new economic elites, often associated with Western
      business interests. In turn the financial proceeds of the trade in drugs and
      arms were recycled towards other illicit activities (and vice versa)
      including a vast prostitution racket between Albania and Italy. Albanian
      criminal groups operating in Milan, "have become so powerful running
      prostitution rackets that they have even taken over the Calabrians in
      strength and influence."24

      The application of "strong economic medicine" under the guidance of the
      Washington based Bretton Woods institutions had contributed to wrecking
      Albania's banking system and precipitating the collapse of the Albanian
      economy. The resulting chaos enabled American and European transnationals to
      carefully position themselves. Several Western oil companies including
      Occidental, Shell and British Petroleum had their eyes rivetted on Albania's
      abundant and unexplored oil-deposits. Western investors were also gawking
      Albania's extensive reserves of chrome, copper, gold, nickel and platinum...
      The Adenauer Foundation had been lobbying in the background on behalf of
      German mining interests.25

      Berisha's Minister of Defence Safet Zoulali (alleged to have been involved
      in the illegal oil and narcotics trade) was the architect of the agreement
      with Germany's Preussag (handing over control over Albania's chrome mines)
      against the competing bid of the US led consortium of Macalloy Inc. in
      association with Rio Tinto Zimbabwe (RTZ).26

      Large amounts of narco-dollars had also been recycled into the privatisation
      programmes leading to the acquisition of State assets by the mafias. In
      Albania, the privatisation programme had led virtually overnight to the
      development of a property owning class firmly committed to the "free marke."
      In Northern Albania, this class was associated with the Guegue "families"
      linked to the Democratic Party.

      Controlled by the Democratic Party under the presidency of Sali Berisha
      (1992-97), Albania's largest financial "pyramid" VEFA Holdings had been set
      up by the Guegue "families" of Northern Albania with the support of Western
      banking interests.

      VEFA was under investigation in Italy in 1997 for its ties to the Mafia
      which allegedly used VEFA to launder large amounts of dirty money.27

      According to one press report (based on intelligence sources), senior
      members of the Albanian government during the Presidency of Sali Berisha
      including cabinet members and members of the secret police SHIK were alleged
      to be involved in drugs trafficking and illegal arms trading into Kosovo:

      (...) The allegations are very serious. Drugs, arms, contraband cigarettes
      all are believed to have been handled by a company run openly by Albania's
      ruling Democratic Party, Shqiponja (...). In the course of 1996 Defence
      Minister, Safet Zhulali [was alleged] to had used his office to facilitate
      the transport of arms, oil and contraband cigarettes. (...) Drugs barons
      from Kosovo (...) operate in Albania with impunity, and much of the
      transportation of heroin and other drugs across Albania, from Macedonia and
      Greece en route to Italy, is believed to be organised by Shik, the state
      security police (...). Intelligence agents are convinced the chain of
      command in the rackets goes all the way to the top and have had no
      hesitation in naming ministers in their reports.28

      The trade in narcotics and weapons was allowed to prosper despite the
      presence since 1993 of a large contingent of American troops at the
      Albanian-Macedonian border with a mandate to enforce the embargo. The West
      had turned a blind eye. The revenues from oil and narcotics were used to
      finance the purchase of arms (often in terms of direct barter): "Deliveries
      of oil to Macedonia (skirting the Greek embargo [in 1993-4] can be used to
      cover heroin, as do deliveries of kalachnikov rifles to Albanian 'brothers'
      in Kosovo".29

      The Northern tribal clans or "fares" had also developed links with Italy's
      crime syndicates.30 In turn, the latter played a key role in smuggling arms
      across the Adriatic into the Albanian ports of Dures and Valona. At the
      outset in 1992, the weapons channelled into Kosovo were largely small arms
      including Kalashnikov AK-47 rifles, RPK and PPK machine-guns, 12.7 calibre
      heavy machine-guns, etc.

      The proceeds of the narcotics trade has enabled the KLA to rapidly develop a
      force of some 30,000 men. More recently, the KLA has acquired more
      sophisticated weaponry including anti-aircraft and anti-armor rockets.
      According to Belgrade, some of the funds have come directly from the CIA
      "funnelled through a so-called "Government of Kosovo" based in Geneva,
      Switzerland.

      Its Washington office employs the public-relations firm of Ruder
      Finn-notorious for its slanders of the Belgrade government".31

      The KLA has also acquired electronic surveillance equipment which enables it
      to receive NATO satellite information concerning the movement of the
      Yugoslav Army. The KLA training camp in Albania is said to "concentrate on
      heavy weapons training - rocket propelled grenades, medium caliber cannons,
      tanks and transporter use, as well as on communications, and command and
      control." (According to Yugoslav government sources).32 These extensive
      deliveries of weapons to the Kosovo rebel army were consistent with Western
      geopolitical objectives. Not surprisingly, there has been a "deafening
      silence" of the international media regarding the Kosovo arms-drugs trade.
      In the words of a 1994 Report of the Geopolitical Drug Watch: "the
      trafficking [of drugs and arms] is basically being judged on its
      geostrategic implications (...) In Kosovo, drugs and weapons trafficking is
      fuelling geopolitical hopes and fears"...33

      The fate of Kosovo had already been carefully laid out prior to the signing
      of the 1995 Dayton agreement. NATO had entered an unwholesome "marriage of
      convenience" with the mafia. "Freedom fighters" were put in place, the
      narcotics trade enabled Washington and Bonn to "finance the Kosovo conflict"
      with the ultimate objective of destabilising the Belgrade government and
      fully recolonising the Balkans. The destruction of an entire country is the
      outcome. Western governments which participated in the NATO operation bear a
      heavy burden of responsibility in the deaths of civilians, the
      impoverishment of both the ethnic Albanian and Serbian populations and the
      plight of those who were brutally uprooted from towns and villages in Kosovo
      as a result of the bombings.

      NOTES

      1. Roger Boyes and Eske Wright, Drugs Money Linked to the Kosovo Rebels The
      Times, London, Monday, March 24, 1999.

      2. Ibid.

      3. Philip Smucker and Tim Butcher, "Shifting stance over KLA has betrayed'
      Albanians", Daily Telegraph, London, 6 April 1999.

      4. KDOM Daily Report, released by the Bureau of European and Canadian
      Affairs, Office of South Central European Affairs, U.S. Department of
      State, Washington, DC, December 21, 1998; Compiled by EUR/SCE (202-647-4850)
      from daily reports of the U.S. element of the Kosovo Diplomatic Observer
      Mission, December 21, 1998.

      5. "Rugova, sous protection serbe appelle a l'arret des raides", Le Devoir,
      Montreal, 1 April 1999.

      6. See Alfred W. McCoy, The Politics of Heroin in Southeast Asia Harper and
      Row, New York, 1972.

      7. See John Dinges, Our Man in Panama, The Shrewd Rise and Brutal Fall of
      Manuel Noriega, Times Books, New York, 1991.

      8. "The Dirtiest Bank of All," Time, July 29, 1991, p. 22.

      9. Truth in Media, Phoenix, 2 April, 1999; see also Michel Collon, Poker
      Menteur, editions EPO, Brussels, 1997.

      10. Quoted in Truth in Media, Phoenix, 2 April, 1999).

      11. Ibid.

      12. Geopolitical Drug Watch, No 32, June 1994, p. 4.

      13. Sean Gervasi, "Germany, US and the Yugoslav Crisis", Covert Action
      Quarterly, No. 43, Winter 1992-93).

      14. See Daily Telegraph, 29 December 1993.

      15. For further details see Michel Collon, Poker Menteur, editions EPO,
      Brussels, 1997, p. 288.

      16. Truth in Media, Kosovo in Crisis, Phoenix, 2 April 1999.

      17. Deutsche Presse-Agentur, March 13, 1998.

      18. Ibid.

      19. Daily News, Ankara, 5 March 1997.

      20. Quoted in Boyes and Wright, op cit.

      21. ANA, Athens, 28 January 1997, see also Turkish Daily News, 29 January
      1997.

      22. Brian Murphy, KLA Volunteers Lack Experience, The Associated Press, 5
      April 1999.

      23. See Geopolitical Drug Watch, No. 35, 1994, p. 3, see also Barry James,
      In Balkans, Arms for Drugs, The International Herald Tribune Paris, June 6,
      1994.

      24. The Guardian, 25 March 1997.

      25. For further details see Michel Chossudovsky, La crisi albanese,
      Edizioni Gruppo Abele, Torino, 1998.

      26. Ibid.

      27. Andrew Gumbel, The Gangster Regime We Fund, The Independent, February
      14, 1997, p. 15.

      28. Ibid.

      29. Geopolitical Drug Watch, No. 35, 1994, p. 3.

      30. Geopolitical Drug Watch, No 66, p. 4.

      31. Quoted in Workers' World, May 7, 1998.

      32. See Government of Yugoslavia at

      http://www.gov.yu/terrorism/terroristcamps.html

      33. Geopolitical Drug Watch, No 32, June 1994, p. 4.

      Copyright by Michel Chossudovsky, Ottawa, 1999.

      Permission is granted to post this text on non-commercial

      internet sites, provided the essay remains intact and the

      copyright note is displayed. To publish this text in printed

      and/or other forms contact the author at

      chossudovsky@...

      Recent articles by Chossudovsky on the global economic crisis at:

      http://wwwdb.ix.de/tp/english/special/eco/6373/1.html

      http://www.transnational.org/features/chossu_worldbank.html

      http://www.transnational.org/features/g7solution.html

      http://www.twnside.org.sg/souths/twn/title/scam-cn.htm

      http://www.interlog.com/~cjazz/chossd.htm

      http://www.heise.de/tp/english/special/eco/

      http://heise.xlink.de/tp/english/special/eco/6099/1.html

      ----------end article



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      ---------end copvcia.com entries

      See former GHWBush's asst. HUD secretary Catherine Austin Fitts' take on
      this issue and related global economic implications when combined with stock
      market "pop" dynamics combined with effects of huge laundered drug profits
      into Wall Street capitalizations at http://www.solari.com


      From: "Catherine Austin Fitts" <catherine@...>
      To: "Solari Action Network" <catherine@...>
      Subject: Enron: Get the Data on the Money, Get the Money, Get it Now---If
      Not, Go Home, Ballgame's Over
      Date: Thursday, January 24, 2002 8:34 AM

      Report to the Solari Action Network
      Date: January 25, 2002

      The San Francisco Chronicle reported this morning that former Enron chief
      executive Kenneth L. Lay once had a pillow that read: "Happiness is a
      positive cash flow."

      Let me explain what Ken Lay would do if he were a former employee or
      shareholder who had been harmed, or an American citizen who was concerned
      about serious financial fraud.

      He would demand two things.

      First, that the Department of Justice move immediately to seize all paper
      and digital records, including digital data storage, of Enron, Enron On
      Line, their accountants and other key vendors. This would include taking
      physical possession of whatever offices are necessary to effect this
      immediately. They did all of these thing to Hamilton knowing we were
      innocent. How come they can't do it to Enron, when Enron and their
      accountants admit to fraud and obstruction of justice?

      The fact that this was not done months ago is an outrage and speaks to the
      fact that the Department of Justice has indeed become a complicit criminal
      enterprise.

      Second, that the Department of Justice and FINCEN with help from the
      appropriate intelligence agencies using PROMIS software and any successor
      systems such as SMART, move immediately to seize all offshore deposits of
      Enron and their subsidiaries and special purpose subs, just as they seized
      $2 billion of Noriega's deposits in the early 90's. We have the technical
      tools and the legal authority to do this now.

      Here is what Ken Lay would not do. He would not spend a year investing a lot
      of time learning about what had happened without benefit of all the
      accounting, trading and banking records that were shredded while he enjoyed
      all the C-Span coverage and who might be to blame, while the cash got away.
      The winner in this game is the guy who ends up with the cash.

      The Administration and Congress know exactly what to do if they want to
      control the money for honest and law abiding Americans. They are not doing
      it because they believe that we are too stupid to understand that they are
      running a distraction on purpose and because they believe that their bread
      is buttered by buttering up the guys who now have all the cash. There is an
      important reason they are not holding hearings on over $3 trillion of money
      and gold missing from HUD, DOD and the US Treasury over the last three
      years.

      Our Congressman with a very few minor exceptions are selling us down the
      river. We are paying them $150,000 a year plus to distract us and help the
      criminals who took us down for $500 billion on Iran Contra/S&L fraud, do it
      again.

      Get the data on the money. Get the money. Get it now.

      It is that simple.

      If not, its time to decide that the Congress, the Administration and
      national media are no longer worth our time and attention. We are too busy
      to invest massive amount of our time watching their intentionally fraudulent
      and ludicrous distractions if it is not going to get any of our money back.

      "What the gods will destroy, they will first make ludicrous."


      From: "Catherine Fitts" <catherine@...>
      To: <gear2000@...>
      Subject: New Insight Article
      Date: Tuesday, July 17, 2001 10:00 AM


      ============================================================================
      ========

      http://www.insightmag.com/archive/200107309.shtml


      HUD Gives Up With Fitts


      ----------------------------------------------------------------------------
      ----
      By Paul M. Rodriguez
      prodriguez@...
      ----------------------------------------------------------------------------
      ----

      Following an Insight story exposing a possible political vendetta, HUD
      dropped its five-year investigation of Hamilton Securities, finding no
      evidence of wrongdoing.

      The Department of Housing and Urban Development (HUD) has closed with
      prejudice a nearly five-year investigation after finding no evidence of
      wrongdoing by Hamilton Securities Inc., a now-defunct government-mortgage
      portfolio seller owned by Catherine Austin Fitts. The decision of HUD's
      Office of the Inspector General (OIG) to close the case followed by weeks an
      investigative cover story by Insight that explored details of this affair
      many inside both HUD and the Justice Department regarded as a political
      vendetta against Fitts (see "Thankless Task," May 21).

      The Fitts affair resulted when a streamlined mortgage-selling program
      she pioneered in 1995 and 1996 ended bloated contracts awarded for decades
      to firms that suddenly stood to lose millions. Fitts had found an efficient
      way for the government to unload hefty loan portfolios instead of managing
      them, and apparently some who had profited on the old deal set out to get
      her.

      Insight discovered that despite the flamboyant allegations of
      wrongdoing levied against Fitts personally, and against Hamilton Securities,
      the Justice Department's Criminal, Civil and Antitrust divisions determined
      there was no evidence of wrongdoing. The FBI and the Securities and Exchange
      Commission came to the same conclusion, Insight learned. Only HUD's OIG, led
      by Inspector General Susan Gaffney, pursued Hamilton and Fitts in
      conjunction with its "bounty hunter," John Ervin, who heads Ervin &
      Associates, a firm that just happens to specialize in HUD mortgage-loan
      portfolio management.

      Despite five years of digging and legal harassment that drove Fitts
      and her company to the wall, OIG kept the case open in hopes that the
      "stained blue dress" alleged metaphorically by Ervin would emerge. It never
      did. Once Gaffney quit in late spring after finding no wrongdoing, Insight
      has learned, the case quickly was closed with approval from the highest
      levels at HUD.

      It began as a qui tam case filed by Ervin. He accused Hamilton
      Securities and Fitts of fraud and conspiracy associated with an alleged
      bid-rigging scheme in two multibillion-dollar mortgage-portfolio sales held
      by HUD. A preliminary finding by a HUD OIG audit team affirmed that the
      complicated sales program was a well-managed success that recovered upwards
      of 70 cents on the dollar. It saved taxpayers more than $2 billion by
      unloading costly mortgage loans held by HUD and managed by private firms
      such as the one belonging to Ervin.

      Despite the draft report, OIG continued its probe while Ervin pressed
      his case in addition to a separate Bivens action against HUD officials he
      accused of being involved in the alleged conspiracy. A qui tam is a secret
      filing in federal court by a private citizen on behalf of the United States
      that is supposed to be, in effect, a whistle-blower action aimed at proving
      allegations of wrongdoing by government contractors or officials. A Bivens
      action is a lawsuit filed against individual government officials on
      allegations of corruption.

      Although HUD denied any wrongdoing in federal court, it settled its
      part of the Bivens case for an estimated $2 million, based on alleged bias
      against Ervin by HUD officials. According to HUD and lawyers for both Fitts
      and Ervin, this fueled the OIG's suspicion that former HUD secretary Andrew
      Cuomo either kept or hired crooked HUD officials to cover up the alleged
      conspiracy. That spurred Gaffney's office to pursue Hamilton Securities for
      suspected complicity to hide the truth. However, despite continued
      allegations of wrongdoing claimed by Ervin in secret qui tam filings, the
      combined investigators of the Justice Department, the FBI and HUD auditors
      could find no wrongdoing by Fitts personally or by Hamilton Securities.

      Ervin and Fitts now are in federal mediation to resolve his
      continuing qui tam case, as amended at least two times, and her own
      counterclaims for millions of dollars in legal bills she has incurred to
      defend her company from allegations that have proved false. Insight sources
      say Fitts expects to file a civil lawsuit against HUD if it does not move
      quickly to compensate Hamilton Securities for the millions of dollars it
      lost from canceled contracts and spoiled business resulting from the
      "unwarranted" federal investigation.

      HUD's OIG had no comment on its settlement of the Hamilton
      Securities/Fitts case and neither did Ervin or Fitts through their
      attorneys. However, an official at HUD says privately that the department
      and HUD Secretary Al Martinez are glad to be out of it. "Your article
      brought this to our attention, and we are grateful," the official said.

      A lawyer familiar with the case adds, "Now that the matter has been
      fully investigated by the government with no finding of wrongdoing by
      Hamilton, the Justice Department should now do the right thing and also move
      to have the qui tam case dismissed."



      Copyright © 2000 News World Communications, Inc.
      Web site developed by Griffin Strategy Group




      From: "Catherine Austin Fitts" <catherine@...>
      To: "Solari Action Network" <catherine@...>
      Subject: Pug Winokur, PROMIS and the flow of data and dollars at SEC, HUD,
      DOJ, Treasury, NY Fed Banks and Enron
      Date: Saturday, January 19, 2002 6:09 PM

      "In a digital economy, data about money is worth more than money."
      ---Nicholas Negroponte

      ============================================================================
      ===========

      CRIMINAL SYNDICATE MANAGEMENT 101 QUIZ

      Which would you rather have? A million dollars or access to the data about
      the closing prices of all listed NYSE stocks a week from now?

      Which would you rather have? A million dollars or access to knowledge about
      what the US Treasury was planning to do in the gold market through NY fed
      dealers on its account for the next week?

      Which would you rather have? A million dollars or access to knowledge about
      what the NY Fed was planning to do in the open markets for the next week?

      Which would you rather have if you were a major investor and the chairman of
      Enron's Finance Committee....a million dollars or a flow of inside
      information about all the federal regulatory and enforcement decisions
      effecting you and your company?

      Which would be better for your bottom line? To pay someone to get such data
      for you, or to have the government pay you to manage such data for them with
      one of your other companies?

      ENRON's END RUN by Kelly O'Meara, Insight Magazine

      Kelly O'Meara's article on Enron is copied with a link below. The article
      notes the linkage between Enron's board finance chairman and his role as
      lead investor in a company that controls the flow of highly valuable data
      that supports the US enforcement establishment.

      "Although the UBS/Andersen twist definitely is one for investigators to
      contemplate, in the end it may prove only half as interesting as some of the
      apparent conflicts of key Enron board members. Take for instance Herbert
      "Pug" Winokur, who chaired the board's finance committee, which was
      responsible for ensuring the financial arrangements of the company were
      prudent and sound. A Harvard Ph.D., Winokur is the former chairman of
      Dyncorp, one of the federal government's biggest contractors. He remains
      chairman of DynCorp's compensation committee and is a major investor in that
      company. There is concern bordering on alarm among investigators that
      through this connection Winokur is in a position to obtain inappropriate
      information about the Enron investigations. According to DynCorp's Website,
      that company has the contracts for information-technology services at the
      SEC and the U.S. Department of Justice (DOJ), including all 93 U.S.
      attorneys' offices. This means that DynCorp manages all e-mail and digital
      communications of the federal agencies now investigating Enron."

      REAL DEAL QUESTION

      Trap doors, hackers, spooks and all that aside, who do you think is reading
      and listening to what the SEC and DOJ enforcement teams are doing on Enron?
      How do you think the GS-15 attorneys at the SEC feel about going after the
      guy who owns a piece of the company that controls their computer systems?
      How do you think they feel about going after someone who is a powerful board
      member in the flow at the highest levels on all sorts of sensitive contracts
      and infromation for the CIA and military intelligence?

      DATA $'S

      When I left the Bush Administration in 1990, I was persuaded that the
      internet and telecommunications could revolutionize our world in a positive
      way. I started a company that was a leader in creating financial software
      tools using relational databases and new ways of networking companies
      working together to reengineer community and government investment.

      My business was organized around being a leader about data about money. When
      we designed Community Wizard, our goal was to create widespread access for
      citizens to "how the money works". When we helped HUD achieve much greater
      illumination and disclosure about "how the money works" in the single family
      and multifamily mortgage markets, our goal was to create the access to data
      about government investment that generates substantially better performance
      for taxpayers and communities.

      What I discovered in that process was that the growing gap between rich and
      poor in America and worldwide was a growing discrepancy between who had
      access to the data about how money and resources worked and who did not. The
      folks who did were moving to grab the money for themselves. Corporations use
      government to collect and manage data funded by taxpayers who then use it
      for the benefit of their investors and not for the benefit of the citizens
      or the intended purpose. The continued growth of access to inside
      information through government (military, intelligence and enforcement)and
      increasingly highpowered surveillance and software tools is an important
      driver of the financial fraud that we are seeing today, including Enron.

      One thing that will help each of us understand the Enron story and
      understand our world is to start looking at a situation and think about how
      the money works. Part of that is understanding who controls the data about
      how the money works and how they use that data, including for their own
      purposes.

      PROMIS

      When the DOJ investigators seized my office and ripped apart and destroyed
      our computer systems, one of my attorneys told me that what was happening
      reminded him exactly of what had happened to a company named Inslaw, run by
      Bill Hamilton, who had built the PROMIS software system.

      My understanding is that PROMIS is used by the US intelligence and
      enforcement community to track money in the global banking system and to
      seize money from overseas banks that are on the main settlement systems.

      I called Bill Hamilton and in the course of several conversations, he told
      me three things.

      First, the company that had taken over the building of PROMIS was now
      becoming the leader in mortgage servicing software.

      Second, that one of the companies that had taken over the responsibility for
      managing PROMIS for DOJ and the intelligence community was DynCorp.

      Third, if I wanted to understand PROMIS, I should read Black Money by
      Michael Thomas.

      Since then I have read and listened to many stories about PROMIS and various
      successor systems that combine powerful database technology and artificial
      intelligence with a variety of surveillance technologies, to give the people
      who use these systems tremendous power in business and in government. I have
      listened to many people tell me that PROMIS was very much involved in
      compromising HUD and HUD transactions.

      Among those is a report from Mike Ruppert in From the Wilderness last year
      that Bill Tyree has reported that Pug Winokur's role with DynCorp at HUD is
      to use PROMIS to compromise the HUD accounts.

      BILL CRIST, PRESIDENT OF CAL PERS, THE LARGEST US PENSION FUND, 1997

      In April 1997, Bill Crist, President of Cal Pers, the largest pension fund
      in the US told me that "they have given up on the country and were going to
      move all the money out the country in the fall."

      That fall, immediately following the time when DOJ managed to get me and my
      team pushed out of working for the federal government, money started going
      missing across the federal government. I have sent out numerous Solari
      Action Reports to the effect that over $3 trillion is now missing from HUD,
      DOD and a number of other agencies.

      GATA has reported the diminution of the Treasury gold stocks as well as
      disturbing patterns of manipulation of the gold and stock markets. These
      could only happen with the support of the Department of Justice, the
      Treasury, and the NY Fed and its large members, Morgan-Chase, Citigroup,
      Bank of New York, Goldman Sachs, AIG, etc.

      While this sounds implausible to most Americans, it's not. Not when you
      consider that essentially all of the federal computer systems in question
      have been turned over to the corporate control over the last two decades.
      Given recent GAO and insider reports about the control of accounting systems
      and information systems by Lockheed, DynCorp, AMS and other key private
      corporations servicing federal systems, and the lack of federal government
      employee supervision, it is increasingly likely that large sums could be
      moved out with very few --if any-- government career employees knowing what
      is happening. Those who suspected anything would have good reason to not
      saying anything. What happened to me and people like me was quite visible
      and quite effective at getting the message across, "see no evil, hear no
      evil, speak no evil."

      The patterns are compatible with the movement of significant resources out
      of the US.

      Of course, this raises the question as to how a group of large NY Fed banks
      might launder several trillion of dollars of money safely into offshore
      accounts without anyone being able to get it back.

      So let me ask you the question. Just a hypothesis. If you were a criminal
      syndicate who had gotten tired of financing the US government as it is, how
      would you pull out money before you reengineered the system and launder it
      abroad into private and corporate control?

      RECOMMENDATION

      Understanding PROMIS and the use of advanced computer and surveillance
      systems is very useful in understanding the Enron story.

      I think the way to start is to read Black Money by Michael Thomas. It's pulp
      fiction. But it will help you get a sense of how useful PROMIS may have been
      in stealing $500 billion from the American people through the Iran
      Contra/S&L fraud which was also centered in the Bush networks in Houston,
      Texas and Denver.

      If PROMIS + Iran Contra cost us $500 billion in the 1980's, what might the
      same networks of people have managed to come up with in ten years of
      evolution to far more sophisticated technologies and control of government
      information systems by a handful of military and intelligence contractors
      whose investors are some of the most powerful people on the planet?

      BIBLIOGRAPHY

      Here are some books that will help you understand the Enron story:

      I. Black Money, by Michael Thomas

      II. False Profits: The Inside Story of BCCI, the World's Most Corrupt
      Financial Empire, Peter Truell & Larry Gurwin. Boston: Houghton Mifflin
      Company, 1992.

      III. Hot Money and the Politics of Debt, R. T. Naylor. Montreal: Black Rose
      Books, 1994.

      IV. The Money and the Power: The Making of Las Vegas and Its Hold on
      America, Sally Denton and Roger Morris

      V. The Mafia, CIA and George Bush, Pete Brewton. New York: S.P.I., 1992.

      And some videos:

      Enemy of the State, Gene Hackman and Will Smith

      Anti-Trust, Gary Robbins

      ============================================================================
      ======


      http://www.insightmag.com/main.cfm/include/detail/storyid/166216.html


      Issue Date: February 4, 2002
      Sneak Preview

      Enron's End Run
      From the Feb. 11, 2002 issue
      By Kelly Patricia O'Meara

      The questions surrounding the implosion of Enron Corp. are increasing as the
      number of lawmakers, class-action attorneys and criminal, civil and
      regulatory investigators looking into the sudden death of the energy giant
      easily could fill the 40-story glass towers that housed the headquarters of
      what once was the seventh-largest U.S. corporation. But while investigators
      seem fixed on papering the port city of Houston with subpoenas, Wall Street
      insiders suggest that they may be better served taking a short cruise to the
      Cayman Islands, a secrecy and money haven in the Caribbean where, according
      to records filed with the Securities and Exchange Commission (SEC), Enron
      set up nearly 700 accounts, or "subsidiaries."

      The Cayman Islands should be just the first port of call in the search for
      the buried treasure of Enron, as SEC records further reveal that more than
      3,000 "subsidiaries" were created by the company worldwide in exotic venues
      such as the Turks and Caicos Islands, Argentina, Mexico, the Netherlands,
      Barbados, Jamaica, Barranquilla (Colombia), and Venezuela, to name but a
      few.

      Just what "business" was taking place in the infamous money laundries is
      anyone's guess. No detail is provided to the SEC about these offshore
      corporations and, for all intents and purposes, the corporate octopus to
      which the tentacles lead is little short of Winston Churchill's riddle
      wrapped in a mystery inside an enigma (see "Requiem for Enron," Jan. 7).
      While the financial data of this extraordinary number of "subsidiaries" may
      for the moment be safe, the lessons of the search for the Osama bin Laden's
      al-Qaeda financial network are not likely to be lost on authorities. At
      least one dramatic clue about the offshore corporations already has
      surfaced.

      Recall that the Dec. 2, 2001, bankruptcy of Enron was explained as resulting
      from a handful of years of failing to report profits and loses of certain
      companies, particularly subsidiaries known as LJM1, LJM2 and Chewco (Cayman
      Islands corporations). According to the SEC filings by Enron these companies
      were "potential sources of capital to buy assets from Enron, potential
      equity partners for Enron investments and counterparties to help mitigate
      risks associated with Enron investments."

      It's presumed that the wizards of Wall Street understand this explanation,
      but for those who aren't routinely betting the family farm on predicting the
      weather three months into the future, what these corporations were doing
      might seem vague. In short, according to one investment banker, "usually
      subsidiaries are set up offshore for the purpose of raising money through
      private investors, which then can be lent back to the corporation and used
      for future investments with no disclosure or oversight from U.S. tax and
      regulatory authorities." The difference between this and a Ponzi scheme
      apparently is one of intent, a dicey thing at best, say critics.

      The Cayman Islands long have been a favorite location for corporations and
      individuals looking to escape taxation in the United States or to hide
      ownership or other activities. It is a problem so serious that last month
      Treasury Secretary Paul H. O'Neill signed an agreement with the island
      paradise to begin cooperating with U.S. tax investigators by 2004. Manhattan
      District Attorney Robert Morgenthau complained that the starting date of
      2004 gives those cheating on taxes time to move their assets to new havens,
      and called on the Bush administration to activate the agreement immediately.
      Some in Congress agree.

      While it still is unclear why the Houston-based darling of Wall Street chose
      to form thousands of subsidiaries in the Cayman Islands and other offshore
      lairs of the illicit, insiders agree that LJM1, LJM2 and Chewco appear to be
      only the tip of the iceberg. And if funny accounting on one or two
      questionable subsidiaries could sink this Titanic of corporate ships,
      congressional investigators ask, what other financial disasters are likely
      to surface when the sun shines on the others?

      When Enron spokesmen attempted to explain, they said in November that the
      company used subsidiary "partnerships" to overstate its profits by about
      $600 million, then backed loans through these to get cash with which the
      fronts bought Enron assets at prices that made the company's investments
      look profitable. This goosed the price of the Enron stock and the worth of
      stock options, which company insiders were selling hand over fist. Who the
      "partners" were might prove interesting, especially if they lead from the
      launderers to Wall Street lenders and their friends.

      At the top of the list of questions investigators will be asking are how
      much cash flowed through Enron via the subsidiaries, where it came from, who
      got it and where that money is now. But sources inside the world of high
      finance tell Insight that without a serious review of the company's trading
      records from Enron Online - reported to be a cash cow accounting for 90
      percent of its business - and the corporation's bank and accountancy
      records, answers to these questions are unlikely to be uncovered.

      It gets even more complicated. The purchase of Enron Online in early January
      by Union Bank of Switzerland (UBS), one of Enron's leading lenders, adds a
      new dimension to the already conflict-ridden investigation. Lawrence A.
      Weinbach, board member and vice chairman of the audit committee for UBS, was
      for nearly four decades with the accounting firm of Arthur Andersen. He
      retired in 1997 from Andersen Worldwide as its managing partner and chief
      executive.

      Representatives of Arthur Andersen already are being accused of having
      cooked Enron's books. But it is Andersen's recent revelation that employees
      were instructed by a company attorney in an Oct. 12 memo to destroy all
      Enron audit materials, except for the most basic "work papers," that has put
      the once-respected accounting firm under a dark cloud. Investigators wonder
      what Andersen was so concerned about that it was willing to face charges of
      obstruction of justice rather than let anyone see those accounting records.

      Furthermore, with the purchase of Enron Online, UBS not only takes control
      of the trading operations but of the trading records - crucial evidence in
      the investigation. Given the limbo between UBS and Arthur Andersen, many in
      the financial community wonder if investigators should subpoena the whole
      package to ensure against further destruction of records. Although the
      UBS/Andersen twist definitely is one for investigators to contemplate, in
      the end it may prove only half as interesting as some of the apparent
      conflicts of key Enron board members.

      Take for instance Herbert "Pug" Winokur, who chaired the board's finance
      committee, which was responsible for ensuring the financial arrangements of
      the company were prudent and sound. A Harvard Ph.D., Winokur is the former
      chairman of Dyncorp, one of the federal government's biggest contractors. He
      remains chairman of DynCorp's compensation committee and is a major investor
      in that company. There is concern bordering on alarm among investigators
      that through this connection Winokur is in a position to obtain
      inappropriate information about the Enron investigations.

      According to DynCorp's Website, that company has the contracts for
      information-technology services at the SEC and the U.S. Department of
      Justice (DOJ), including all 93 U.S. attorneys' offices. This means that
      DynCorp manages all e-mail and digital communications of the federal
      agencies now investigating Enron.

      Winokur also serves on the Harvard Corporation Board, which oversees Harvard
      University and its $18 billion endowment. According to Harvard's 1999 tax
      filing, its most significant vendor relationship is with Highfields Capital
      Management, a hedge fund that had large Enron holdings created in 1998 by
      Harvard Management money manager Jon Jacobson.

      During an April 2001 conference call among large investors, Jeff Skilling,
      then chief executive officer of Enron, got in a contretemps with Richard
      Grubman, managing director of Highfields, who was unhappy about Enron not
      producing certain financial information. Grubman declared: "You're the only
      financial institution that can't come up with a balance sheet or cash-flow
      statement after earnings!" Annoyed, the Enron chief called the money manager
      for the Harvard-connected firm a name and countered: "I don't think it is
      fair to our shareholders to give someone a platform like that for some
      personal, vested interest related to their stock position," inferring
      according to insiders that Highfields may have been short-selling the stock
      for Harvard - making money by trashing Enron.

      Grubman's discomfort perhaps is even more interesting when one considers
      that Winokur, as chairman of Enron's finance committee responsible for the
      lack of financial information by Enron, is the same Winokur who oversees
      Harvard's investments. Whether Highfields was guessing about the looming
      meltdown of Enron or had inside information is a subject of interest to
      investigators of the growing scandal. A number of Harvard alums with inside
      connections to Enron also were active with Highfields, and at this level the
      players are well-known to each other.

      For example, Winokur's partner at another investment firm called Capricorn
      Holdings is Harvard alum Dudley Mecum, who sits on the board of DynCorp. He
      also is on the board of one of Enron's leading lenders, Citigroup, which was
      put on the hook by the energy giant for $800 million. Mecum is joined at
      Citigroup by former Harvard board member and Clinton Treasury secretary
      Robert Rubin, whose alarm about the pending collapse of Enron led him to
      place calls to Peter Fisher, undersecretary for domestic finance at
      Treasury. Rubin asked "what he [Fisher] thought of the idea" of getting help
      with Enron's credit rating. Rubin reportedly said "this is probably not a
      good idea," and Fisher firmly agreed.

      That it was not "a good idea" may be a Krakatoan understatement considering
      that Fisher may have been selected because someone thought he had conflicts
      in the Enron matter. Before becoming Treasury undersecretary, he was
      executive vice president of the New York Federal Reserve Bank under Chairman
      Peter G. Peterson. Peterson's position at the top of the U.S. establishment
      includes service as the current chairman of the Council on Foreign Relations
      and as a top financial adviser to Enron through his investment company, the
      Blackstone Group.

      A senior banking analyst who asked not to be identified tells Insight that
      the incestuous connections surrounding the Enron debacle "provide a good
      clue about what was going on." The analyst says: "It is impossible for
      directors of this caliber, being so well-versed in finance, not to have
      known what was going on. Even though Enron hid most of what its trading
      operations were doing, there still would have been bells and whistles going
      off because of the sheer number of offshore subsidiaries and the closeness
      of the banking community at this level."

      When you see all those subsidiaries in tax havens such as the Caymans, the
      analyst says, you have to ask why. "The fact that Enron had so much
      financial information hidden suggests fraud, and that's the public's
      perception. But right now there isn't enough information to be sure what
      Enron was doing and what caused the crash. Enron Online, which accounted for
      90 percent of its business, was unique because not only does no one know how
      the trades worked, it was all but free from regulatory oversight. The fact
      that Enron would lobby for special regulatory treatment, even so, is
      interesting in and of itself. Why would an ethical company want to avoid
      basic reporting? In many ways, at this level, regulators provide feedback
      and often facilitate the way business is done. The question for all the
      finance guys, including the board at Enron, is why they were avoiding
      regulators and why they were hiding books and records on the sideline."

      Allen "Sandy" Williams, an attorney with the law firm of Foley & Lardner,
      chairs that firm's regulatory-practice department, specializing in the
      energy industry. He tells Insight that "Enron was a very complex business,
      and I don't believe there was one person inside who knew everything that was
      going on. They had so many business ventures, trading desks and business
      startups that it would have been very difficult to track them all. In many
      ways, it appears as though the company believed that the Enron way was the
      unique and better way, and having that opinion may have allowed them to
      think that they could defy Newtonian principles of management."

      Hubris is familiar enough. "In retrospect," Williams concludes, "you can
      look back and say Enron was a disaster, but whether the conduct was
      nefarious or negligent, purposeful or inadvertent, is still to be
      determined. Every day new information is coming out creating a lot of
      important questions that need to be answered. It's very hard in a publicly
      traded company not to be able to account for the dollars."

      Meanwhile, an army of investigators is attempting to follow the money. They
      tell Insight they will be looking hard at the connections of Enron's board
      of directors to its lenders and investors. Naturally they will want to know
      about the more than $1 billion worth of Enron stock cashed out by Enron
      directors and executives between October 1999 and November 2001. They no
      doubt will want to know why friends among the Wall Street bankers kept
      lending huge sums to a company that was cooking its books. And they are
      certain to ask about $600 million in "losses" through those suspicious
      offshore subsidiaries in countries notorious for money laundering.

      Kelly Patricia O'Meara is an investigative reporter for Insight.

      ============================================================================


      ============================================================================
      ===============


      Listed below, and hyperlinked for your convenience to individual websites,
      is an extensive sampling of DynCorp's Public Sector clients:

      http://www.dyncorp.com/world/public.htm

      Department of Justice
      Bureau of Prisons
      Drug Enforcement Administration
      Federal Bureau of Investigation
      Immigration and Naturalization Service
      U.S. Attorneys
      U.S. Marshals


      MEGA I

      LITIGATION SUPPORT SERVICES (LSS)

      Administered by: Department of Justice

      Who can use: All federal agencies

      Contract type: IDIQ/task order

      Contract number: 97-C-0027




      The Department of Justice (DOJ) MEGA I contract provides a wide range of
      information technology and automated litigation support services to help
      your agency investigate, litigate and settle legal cases. Although created
      primarily to serve the Department of Justice's Antitrust, Civil, Civil
      Rights, Criminal, Environmental and Natural Resources and Executive Office
      of the U.S. Attorneys Divisions, MEGA I can be used to obtain support
      services for all agency litigations.

      Through MEGA I, DynCorp provides automated products and services to help
      attorneys and legal staff acquire, organize, develop and present evidence.
      We locate and classify evidence during the discovery stage, scan and
      microfilm documents, code and index documents to on-line repositories,
      develop and maintain databases of evidentiary data, and provide pretrial and
      trial support.

      SERVICES PROVIDED UNDER MEGA I

      DynCorp provides a full range of litigation support services, including:


      Document Acquisition
      Document Processing
      Database Creation and Utilization
      Electronic Data Acquisition
      Pretrial and Trial Support
      Contract and Project Management
      Professional Services, Such as Language Translation, Auditing and
      Accounting, Damage Assessment, and Statistical Analysis.
      Additionally, DynCorp offers a comprehensive Litigation Support System, a
      project team with unsurpassed credentials, and available, in-depth corporate
      resources. We provide:


      A capable MEGA I team knowledgeable and experienced in litigation support
      Advanced document processing technology
      A breadth and depth of personnel, equipment and facilities available only
      from a large, technically diverse organization
      The flexibility to assemble an optimal mix of effective products and
      services to meet your specific needs
      USING MEGA I IS EASY

      DynCorp will guide you through the entire procurement process, from your
      decision to use the contract vehicle through award and performance, our
      staff will be available to answer your questions. Contact us today and let
      us show you how we can quickly and efficiently help accomplish your business
      goals.

      GETTING STARTED

      Contact DynCorp
      MEGA1 Manager: Kathleen Vivian
      Telephone: 703-261-4723
      Facsimile: 703-261-5070
      E-mail: kathy.vivian@...



      DynCorp Information & Enterprise Technology (I&ET) has been awarded a
      seven-year task order to provide information technology support services to
      the U.S. Securities and Exchange Commission (SEC). Under the agreement,
      DynCorp I&ET and its key teaming partner, PlanetGov, will manage and operate
      all SEC infrastructure facilities, hardware, software and systems relating
      to non-EDGAR systems. (EDGAR is the SEC's Electronic Data Gathering,
      Analysis and Retrieval system.) Services will include help desk operations,
      data center support and operations, technology deployment support and
      technology test lab support. Work will be performed at locations in
      Alexandria, Va., Washington, D.C., and at the SEC's 11 regional and district
      offices around the country.
      Contact: Ruth Bowers, (703) 261 - 5140




      DynCorp will continue to provide the FCC with comprehensive programming and
      analysis services. Additionally, DynCorp will provide the management and
      technical personnel required to analyze, design, develop, test, implement,
      document and maintain the build- out of existing and future automated
      information systems. This work will be performed at the Washington, DC;
      Gettysburg, Pa.; and Columbia, Md. locations.
      Contact: Lisa Douds, (703) 261 - 5110



      DynCorp Information & Enterprise Technology subsidiary has been awarded a
      contract to provide the Information Presentation Component (IPC) and
      Transportation Network Component (TNC) portions of the Trilogy
      infrastructure modernization project for the Federal Bureau of Investigation
      (FBI). The work will be performed by DynCorp Information Systems, LLC and
      teammates Getronics, CACI, GTSI, Oracle Services, Baltimore Technologies,
      Orizon and Trusted Computer Systems. Under the award, DynCorp Information
      Systems will upgrade approximately 27,000 FBI desktops and 350 servers at
      650 locations worldwide to a common system and provide training support.
      DynCorp Information Systems also will implement high-speed local- and
      wide-area network communications at the agency. The task order is scheduled
      to be completed within two to three years. Work will be performed at FBI
      locations, including major operations in New York, Chicago, Los Angeles and
      Washington, D.C.
      Contact: Rob Keith: (703) 461-2229








      DynCorp TechServ will standardize and consolidate the Federal Highway
      Administration's (FHWA) distributed computing environment under the GSA Seat
      Management master con<br/><br/>(Message over 64 KB, truncated)
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