1970 to 1980s - The Development of the Shadow CIA Part 2
During this period, between 1975 and 1979, in Bangkok, Richard Armitage lived in the home of former Brigadier General Harry C. Aderholdt the former US Air Force Air Wing Commander /Special Operations Group in Laos. At the time Shackley was operating in Laos. BG Aderholt, between 1966 and 1968, had served as the immediate superior to Richard Secord, the Deputy Air Wing Commander of MAG / SOG. Secord, in 1975, was transferred from Vietnam to Tehran, Iran.
In May 1975 in four days of intense activity, BG Aderholdt evacuated more than 2,000 Hmong (who made up the US's secret army) from Laos, including general Vang Pao and Jerry Daniels, his CIA case officer in transport planes.
In 1976, Maj. Gen. Richard Secord moved to Tehran, Iran and became the Deputy Assistant Secretary of defense in Iran, in charge of the Middle Eastern Division of the Defense Security Assistance Administration. In this capacity, Secord functioned as the chief operations officer for the U.S. Defense Department in the Middle East in charge of foreign military sales of U.S. aircraft, weapons and military equipment to Middle Eastern nations allied to the US. Secord's immediate superior was Eric Van Marbad the former 40 Committee liaison officer to Theodore Shackley's Phoenix program in Vietnam from 1973 to 1975.
From 1976 to 1979, in Iran, Richard Secord supervised the sale of US military aircraft and weapons to Middle Eastern nations. However, Richard Secord did not authorize direct nation-to-nation sales of such equipment directly from the U.S. government to said Middle Eastern governments. Instead, Richard Secord conducted such sales through a "middle-man", one Albert Hakim. (cheating the US government).
.Between 1976 and 1979, Shackley, Clines, Secord, Hakim, CIA officer Edwin Wilson, and Armitage set up several corporations and subsidiaries around the world through which to conceal the operations of the "Secret Team". Many of these corporations were set up in Switzerland. Some of these were: (1) Lake Resources, Inc.; (2) The Stanford Technology Trading Group, Inc.; and (3) Companie de Services Fiduciaria. Other companies were set up in Central America, such as: (4) CSF, Investments, Ltd. and (5) Udall research Corporation. Some were set up inside the United States by Edwin Wilson. Some of these were: (6) Orca Supply Company in Florida and (7) Consultants International in Washington, D.C. Through these corporations, members of Theodore Shackley's "Secret Team" laundered hundreds of millions of dollars of secret Vang Pao opium money pilfered Foreign Military Sales proceeds between 1976 and 1979.
End of affidavit http://www.ncoic.com/heroin-2.htm
The Development of the Shadow CIA
Mafiosi Meyer Lansky invested $10 million in Italian real estate through Banque de Credit International (BCI) -- Geneva. Tibor Rosenbaum, a Mossad agent, owned the bank. Rosenbaum was close to the Italian royal family. CIA boss James Angelton and Rosenbaum's institution laundered money for the Latin American client of Investors Overseas Service (IOS).
IOS was most likely a CIA front company and was an international mutual fund for anonymous investors in among other things, Vietnamese and Israeli bonds.
1961: Bank of World Commerce -- Bahamas, established by Lansky's point man John Pullman.
1962: Vangard Services, in Honduras was set up by Richard Greenlee, a member of Donovan's law firm and a former OSS officer in Bangkok.
To cover a fraction of the cost of the massive covert operations, Paul L.E. Helliwell , an active leader in the Florida Republican Party, and a friend of Nixon's friend Bebe Rebozo established and directed a string of drug money-laundering banks for the CIA. Helliwell had set up a Bangkok trading company Sea Supply, which provided cover for CIA officers advising the drug-smuggling Thai border police.
In Panama the World Commerce Corporation, the commercially oriented espionage net was formed by William Donovan and British spymaster William Stephenson. In Honduras, Richard Greenlee, a member of Donovan's law firm and a former OSS officer in Bangkok, set up Vangard Services in 1962 as a front for yet another batch of CIA-financed, drug related anti-Castro operations. There were dozens of CIA proprietary (front) companies operating world wide in similar fashion. The head of Federal Narcotics Bureau, Harry Anslinger, stated that the CIA and Hoover subverted a grand jury that had been convened in Miami to probe the financial affairs of dozens of top mobsters. (pgs. 260- 261)
Following the loss of his gambling and vice concessions in Cuba, mafia boss, Meyer Lansky, re-established his gambling business with, among others, Louis A. Chesler and Wallace Groves. Chesler, a Canadian millionaire and a former rumrunner, formed the Grand Bahama Development Company in 1961 with Groves. With the help of Helliwell, Donovan, and other CIA officers, large amounts of Thai, Taiwanese, and Vietnamese drug trafficking profits were allegedly invested (money laundered) in Castle Bank and Florida real estate deals through Chesler`s General Development Company. The CIA hired Groves to suborn the top government officials in the Bahamas. The Bahamas quickly became a major transit point for Latin American drug smugglers. (p. 261)
Lansky's financial aide, John Pullman, incorporated the Bank of World Commerce in the Bahamas to handle the skim from several Los Vegas casinos. The CIA was fully aware of the money laundering banks. The US Treasury Department was aware of the shift in drug money to South America, and that in July 1966, John Pullman was in Bogota, Columbia, negotiating a lucrative mine deal which was an elaborate organized crime network of businesses that permitted enormous flexibility in moving and laundering funds as subsidiaries that were placed in the U.S., Europe, and the Caribbean. It was known that Lansky invested $10 million in Italian real estate through Banque de Credit International (BCI) in Geneva. The problem was that Tibor Rosenbaum, a Mossad agent, owned the bank. Rosenbaum was close to the Italian royal family and James Angelton and Rosenbaum's institution laundered money for the Latin American client of Investors Overseas Service (IOS) . IOS was most likely a CIA front company and was an international mutual fund for anonymous investors in among other things, Vietnamese and Israeli bonds. (p. 373)
Rosenbaum's activities and connections underscore the Mossad's involvement in international narcotics trafficking. Bank Leumi, the Israeli banking giant, served as a major laundering vehicle for drug money. (p. 373)
President Kennedy wanted to expel Air America, the CIA's drug smuggling front company airline from Laos. In 1962, Bobby Kennedy indicted Sea Supply's manager for having bribed a U.S. official in Laos. This prosecution was blocked by JFK's ultra right-wing, political enemies and Air America kept its contract in Laos. (The Strength of the Wolf, p. 262)
CIA officer Paul L.E. Helliwell and William Donovan, and other CIA officers set up Castle Bank, in the Bahamas with almost $5 million of CIA covert operations money. Castle Bank was one of the CIA's finance channels for operations against Cuba." CIA officer Helliwell's financial involvement with the CIA can be gathered from the CIA's laundering black operations funds in a CIA front company, the holding company, Intercontinental Diversified Corporation (IDC).
Paul Helliwell was the CIA paymaster for the Bay of Pigs fiasco. He helped set up tax shelters for Pritzker family using the CIA's Mercantile Bank and Trust and the Castle Bank.
The Pritzker family owns of the Hyatt Hotel chain. The CIA's Mercantile Bank and Trust and the Castle Bank had been set up by Helliwell for 'laundering' profits thru 'skim money' from the Hughes casino operations in Las Vegas. Others who used these banks include Richard Nixon, Bebe Rozo, Robert Vesco, Teamsters Union, etc ..UEB hotel operations to the Singapore front company controlled by the Pritzker family.
and an old family Pritzker family
Between 1970 and 1976, almost $5 million of Intercontinental funds was siphoned out for the CIA or shadow CIA's use. IDC was a spinoff from an Asian company, Benguet Mining partly owned by the Philippine dictator Ferdinand Marcos. Benguet Mining was represented by Helliwell's law firm and partly owned by the Philippine dictator Ferdinand Marcos. Intercontinental Diversified (ID Corp) was a spinoff from Benguet Mining.
An American, Shig Katayama was the sole owner of ID Corp and had an account in Castle Bank in the Cayman Islands. In the early 1950s, Katayama's job was to handle narcotics for the US intelligence operations. Thai, Taiwanese, and Vietnamese drug trafficking profits were allegedly invested (money laundered) thru this bank and Florida real estate deals through Louis A. Chesler`s General Development Company.
During World War Two, US Army Reserve Maj. Gen. George Olmsted, was the Army G-5 (Economic and Political affairs) for General Albert Wedemeyer for the China-Burma-India Theater. This included lend lease operations, training of allied military forces, and clandestine operations. And after the war ended, he was order to take charge of US equipment that had to be left behind in the Theater as American forces departed to come home. Olmsted managed to work out a bulk sale to the Chinese government. Olmsted was also rumored to be a top CIA asset.
The gold looted by the Japanese Army was discovered in the Philoppines by the US and went into a secret CIA bank account and not into the US Treasury or returned to the people from which it was stolen during the war. I wrote about this and Nazi gold in my chapter that covered the end of WWII.
As a civilian prior to his service in World War Two, Olmsted owned and ran Illinois Casualty, an insurance company. In 1955, he purchased of the International Bank in Washington, DC, a well known bank with few assets and a reputation as a CIA bank. In 1959, George Olmsted purchased Financial General Corporation (later known as First American Bankshares) the 7th largest bank holding company in the country. Financial General Corporation was a domestic bank holding company which held controlling interests in 26 banks located in 7 states and the District of Columbia.
In March 1973 Olmsted had the International Bank buy 66 percent of the capital stock of the failing Castle Bank in the Bahamas (formerly know as Mercantile Bank), even though "International's officers knew the actual state of Mercantile's (bad) financial health.
Starting in 1977, International Bank started to sell its stock in Financial General Bankshares to Bank of Credit and Commerce International (BCCI) front men, who later took over First American Bankshares. This bank was/is owned by Jackson Stephens.
In 1948, Olmsted and Secretary of State Edward R. Stettinius created International Registries, Inc. (IRI). After Stettinius died in 1950, ownership of IRI passed to Olmsted's International Bank in Washington, DC. IRI's shipping operations had previously been shifted to the Republic of the Marshall Islands. Liberian International Ship and Corporate Registry, is a contrivance that has masked thousands of questionable shipping and intelligence operations, banks, and corporations.
In 1976, when George H. W. Bush was CIA Director, IRI/Liberian Services moved its headquarters to Reston, Virginia with offices in New York; London; Pireaus, Greece; Hong Kong; Ft. Lauderdale, FL; Singapore; Shanghai; and Tokyo. The entity has long been rumored to be a CIA front, having registered ships owned by Greek shipping tycoon Stavros Niarchos and brokering deals involving George H. W. Bush's Zapata Off-Shore. http://www.waynemadsenreport.com/
As part of the expanded laundry operation, Rockefeller associate Adnan Kashoggi establishes new Australian bank - Security Pacific National Bank (Aust). Equiticorp will be launched with 50% of the stock held by Security Pacific National Bank and Chase Manhattan in the US Equiticorp to registered in Hong Kong to cover up true ownership, and will use the same laundry as Chase Corporation . A maze of shell companies and dummy organizations was set up to disguise operations.
Adnan Khashoggi was/is a George Herbert Walker Bush-allied Saudi billionaire and arms trafficker, founder of the Barrick Gold Corp in Toronto, Canada, in 1983. The majority investment in the firm was held by Khashoggi and his arms-trafficking partners. Bush whose father was a partner in the powerful London-controlled private banking firm Brown Brothers Harriman. George Bush Sr. is Barrick Gold Corp.'s chief lobbyist, a stockholder in Barrick, and honorary senior adviser to Barrick's international advisory board.
"In 1976, Arkansas billionaire Jackson Stephens, Sr. and Indonesian businessman Mochtar Riady formed Stephens Financial Ltd in Hong Kong, which led to a meeting of Stephens and Riady with members of the BCCI."
Stephens Inc. one of the largest clearing firm for banks in the U.S. and the nation's largest investment bank off Wall Street. Stephens Inc. was listed as one of the biggest institutional shareholders in 30 large multinationals including the Arkansas based firms Tyson Food (# 10), Wal-Mart (# 113) and Alltel (# 12).
In 1977, Jackson Stephens invited BCCI into America and helped BCCI bring about the purchase of stock in First American Bankshares. (Another source says that Stephens brought BCCI to US shores in 1979.) Years later the US Senate investigated the role former Director of Central Intelligence Richard Helms played in the 1978 in takeover attempt of First American Bank on behalf of BCCI Ltd, Georgia.
The chief attorney for BCCI's powerful legal team was Clark Clifford, a former Secretary of Defense. His influence stretched even into the Federal Reserve. When Clifford was tried and convicted for his role in BCCI, Clinton himself pardoned him, ostensibly out of concern for the old man's health.
"Jackson Stephens and Mochtar Riady were in business together and paid off politicians from Arkansas to look the other way and ignore the CIA cocaine operation at Mena, Arkansas. The Lippo Group, ( Mochtar Riady), had been involved with Gov. Bill Clinton in Arkansas." Clinton was governer from 1978 to 1988.
"Vincent Foster, a good friend of Governor Bill Clinton, often shuttled vast sums of money around the world that related completely to (shadow CIA's front ) the Enterprise formed by Ollie North and George Bush.,,, The Enterprise was also called "K-Team".
Stephens' principal motive in bringing BCCI to America was apparently to connect up his own financial institutions to the global laundry--not only First American Bankshares, but those in Little Rock also. To avoid the type of SEC scrutiny involved in the Financial General takeover, Webster Hubbell, who had represented Stephens' software company Systematics, was employed to draw up the charter for the Arkansas Development Finance Authority (ADFA). The structure for the laundry was then in place. The participation of the ADFA, a state government institution, eliminated Security and Exchange Commission scrutiny.
Another thing that came later was the BCCI-financed arming of Iraq. What began as a simple US strategy to maintain a balance of power between Iran and Iraq, turned into a vast moneymaking enterprise involving the sale of US nuclear technology and nuclear secrets to both Iraq and Israel. In particular, the participation of Jackson Stephens and Hillary Clinton in the Pittsburgh-based nuclear network, along with the entrepreneurial activities of the Wackenhut Corporation.
Pakistan's finance minister, Sartaj Asis, revealed that local branches of BCCI had laundered drug money for the CIA, channeled covert CIA aid to the Afghan resistance, and also managed a multi-million dollar "slush fund" for covert operations.
I have written a whole chapter in this book about Mena, AR and the corrupt links to Bill and Hillary Clinton.
(Source; Professor John Metzger of Michigan State University.
US Army Special Forces Colonel Al Carone stated, "He worked as a representative of the Bank of Credit and Commerce International (BCCI) which he stated was a bank founded by the US intelligence community in part to finance covert (black) operations worldwide without the approval of the US Congress. He was authorized to withdraw funds from First American Bankshares (part owned by BCCI) account #2843900, which he stated was a black operation fund unknown to the US Congress at the time."
Col. Carone said that he was "the middleman between certain CIA factions and certain Mafia families that operated illegal enterprises in New York City". Carone stated that "the CIA used BCCI, BNL, BCP and Intermaritime Bank to launder money for black operations worldwide and for the Mafia in New York City." Colonel Carone said "the military drug trafficking Operation Watchtower, fitted in the picture in the following fashion. Between 1971 to 1972, BCCI was started primarily as a bank for the US intelligence community to go around Congress in funding so-called 'black operations'"... (Source: the sworn testimony of US Army Special Forces, Specialist 4th Class William "Bill" Tyree)
"In December 1975 to February-March 1976, Operation Watchtower took place that brought over 100 military-style cargo plane loads of cocaine out of Colombia into Albrook Air Station in Panama." I'll get into this drug trafficking more below.
Jackson Stephens had political connections in Panama, which was then becoming the banking center for the Colombian cocaine business. One of these connections was Gabriel Lewis, the Panamanian Ambassador to Washington who had negotiated the Panama Canal Treaty. Another was Manuel Noriega, the head of G-2 (Panamanian military intelligence) who made a deal with the Medellin cocaine cartel.
Stephens was the banker for Gabriel Lewis, who had gotten very rich after he created corrugated banana boxes. Gabriel Lewis' seaside home on Contadora Island, which Lewis then owned, was the site where Canal negotiator Ellsworth Bunker was told in August 1974 that Panama would re-establish diplomatic relations with Cuba. Later the exiled Shah of Iran stayed at Lewis' home from December 1979 to March 1980, while Manuel Noriega provided for the Shah's security. (In his book Crisis, Hamilton Jordan tells how he tried to use Gabriel Lewis to help establish contact with the Iranians in the Iran-hostage crisis.)
Contadora Island would later become a conduit for drug shipments. One of Noriega's pilots, Cesar Rodriquez, became manager of Contadora Island's airline, and would appear at his club atop the Bank of Boston building with suitcases full of $100 bills. Rodriquez told marijuana smuggler Steven Michael Kalish, who wanted to bring $100 million in cash to Panama (whose currency is the U.S. dollar), to use the services of the Panamanian branch of BCCI, which handled both Rodriquez's and Noriega's accounts.
In 1982 Noriega had helped negotiate a truce between the Castro- backed M-19 in Columbia and the beginnings of the Medellin cartel. In subsequent coke shipments through Panama, another Noriega pilot Floyd Carlton Caceres would receive $400 per kilo, while Noriega would receive $100,000 to $200,000 per flight. But Noriega kept raising the transshipment price charged to the cartel under Pablo Escobar.
The feud escalated until in May 1984, Noriega let Escobar's new cocaine processing plant at Darien be destroyed. Noriega, hiding out in Paris, then sent his political strategist Jose Blandon to talk to Castro, who mediated a settlement between Medellin and Noriega.
Subsequently Noriega closed a Panamanian bank for money laundering, because it was owned by a member of the Cali cartel--a Medellin competitor. Noriega also helped out the Medellin cartel by arresting or informing on Cali drug dealers to the DEA. The drug-arms-money laundering connection between Panama and Mena, Arkansas was apparently first cemented in the "Iran"-Contra dealings. Both Panama and Arkansas were used by Oliver North as transshipment points for money and arms to the Contras.
According to what Money Laundering Bulletin calls "The Greatest Story Never Told", an "archive of more than 2000 documents. . . allege that western Arkansas was a center of international drug smuggling in the early 1980s--perhaps even the headquarters of the biggest drug trafficking operation of all time". The degree of Gov. Bill Clinton's knowledge of, and participation in, this operation is not always clear.
The following is from an interview by Rodney Stich of Dee Ferdinand, the daughter of US Army Special Forces Colonel Albert Carone. She described the relationships between her father, the Mafia, and the CIA. He was associated with Jackson Stephens' First American Bankshares.
In Rodney Stich's book, Drugging America the Trogan Horse, he describes his research into the CIA's drug trafficking. Because of Stich's background in aviation as an FAA crash inspector, he come across former CIA contract pilots and others who had information about the CIA.
Al Carone was a member of the Gambino family and had connections to other crime groups in the eastern United States. He was also a detective on the New York City vice squad, a member of the military, and a CIA operative. Ferdinand stated that her father was in the OSS during World War II working in US Army intelligence (CIC). After the war, he returned to New York, continued his relationship with the Mafia families.
She describe how Vito Genovese kind of adopted her father when he was growing up in Brooklyn, and that relationship eventually got him into key positions within the Mafia families. Her father called Genovese, Uncle Vito.
"My father knew Frank Fiorini, (and Frank Sturgis) and Jack Ruby . Marita ( Lorenz) had given me information about traveling by car with three Mafia-CIA figures from New Orleans to Dallas, arriving in Dallas the day before the assassination, and facts that strongly implicate this group with the assassination of President John F. Kennedy".
Marita Lorenz worked for the CIA. She was a girl friend to Fidel Castro and bore a son from their romantic relationship.
Carone was a detective and "bag man" in the New York City police department, collecting money that was distributed to captains and inspectors as payoffs for looking the other way" where drugs were involved. His employment with the NYPD ended in 1966, after which he concentrated on Mafia related (activities relating to being a CIA paymaster). As a CIA paymaster, moved money to and from the Mafia families in New York, New Jersey, and Pennsylvania.
Carone was original and primary connections were with the Genovese family. His cousin was Mafiosi Angelo Ruggiero and he was related to Neil Dellacroce. He was with the Genovese family and the Gambino family as they merged, and had lesser connections to other Mafia groups. Carone was a good friend of Sam Giancana and Santos Trafficante, "Uncle Sonny", as he was called by Dee Carone (Ferdinand) who attended her wedding.
"You have to understand when I was growing up, there was no such thing as
organized crime being spoken. It was a way of life with certain people in
your home, or you were in their home, or whatever. You didn't know what
these people did. Everybody's dad was like everybody else. They went to
work every day and that's it."
Carone started in drug trafficking in the Vietnam days, for the CIA and the Mafia and he had frequent contacts with CIA officer Theodore Shackley relating to drug trafficking. Al Carone carried cash between Mafia figures and the CIA, and he alleges that the money trail went through a bank in England, to the Bahamas, Bank of Zurich in Switzerland, among others.
Ferdinand said, "Sam Giancana did a lot of drug deals with the Agency." She added that organized crime and the CIA had regular drug dealings with Noriega and the Mossad, and that former Mossad operative Michael Harari was routinely involved. "A lot of this money was split with the Mossad and the Agency. They had to use the mob; there isn't too much difference between the CIA and the mob. They worked together." She said she father told her that the drugs coming from South America went to the Colombo, Genovese, and Gambino families, and that it was a joint CIA-Mafia drug operation under the code name Operation Amadeus.
During World War II, Operation Amadeus was involved in transporting Nazi officers from Germany into South American countries. According to her father's notes, Operation Amadeus split into several other operations, including Operation Sunrise and Operation Watchtower
Carone told his daughter, Dee Ferdinand that the Mafia handled assassinations in the United States that were requested by CIA personnel, explaining, "When the Agency needed people assassinated in the United States, the mob was used."
After being ousted from the New York City police department, Carone moved his family to New Mexico (August 1980). He continued his military and CIA connections, traveling frequently to various military bases, including Kirkland Air Force Base, Fort Bliss (El Paso), and others. Eventually Carone fell out of favor with the CIA. Oswald LeWinter, another long-time CIA contract agent told Rodney Stich that he also knew Carone.