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Author Topic: Bitcoin Created by the CIA!  (Read 6610 times)
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August 13, 2011, 09:11:56 AM

I seriously think that bitcoin was created by the CIA. It's very possible. Not necessarily for nefarious purposes but possibly to undermine their bankster masters, and use it for untraceable revolution and black ops projects.

Since we do not know who exactly, Satoshi is, it's very possible that the CIA invented bitcoin.

One thing we know for sure, the CIA are Cryptographic masters. Some of the brightest and best in the world.

It's also true some 10 year olds are also as intelligent, but it's more likely the CIA created it.

I would think the best thing to do if I were the CIA would be to create a monetary system that revolutionaries would embrace, the banksters would not control, could not be traced, was based in cryptography and could not be destroyed or taken down.

This is not a bashing of bitcoin at all. Please don't misunderstand my post. I'm just proposing this as a serious possibility, and not necessarily a bad thing at all.

I should also reiterate the fact that the CIA is not all bad, either. There are some really good people in there that do care.

They are just surrounded by many bad folks.

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August 13, 2011, 09:18:48 AM

Why in the world would the CIA try to undermine their "bankster masters" if that is the hand that feeds them? There is really no longer any distinction between big business and government in our corporatist, increasingly statist America. The banksters are the masters just as much as the political elite are. The CIA --- the American gestapo --- are the last people that would spearhead the most anti-statist, anti-bankster invention in the history of man.
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August 13, 2011, 09:30:16 AM

Why in the world would the CIA try to undermine their "bankster masters" if that is the hand that feeds them? There is really no longer any distinction between big business and government in our corporatist, increasingly statist America. The banksters are the masters just as much as the political elite are. The CIA --- the American gestapo --- are the last people that would spearhead the most anti-statist, anti-bankster invention in the history of man.

Because there are factions within the CIA, (there always have been and always will be), that do not agree with the current "plan" or agenda of the New World Order leaders. When you have been in power and had as much control of black ops as the CIA does, the banksters who finance you do not have as much control as they once had, when you are infinitely smarter than they are and more technically savvy. There are rogue CIA factions worldwide and they tend to work together against the current status quo.

 As well, by creating an entirely new crypto currency, they become the new bankers of their own rogue operations.

a ++ win for them

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August 13, 2011, 09:39:36 AM

Does anyone remember the story about he so called "Fifth Column"?

Did anything ever become of it?

They were supposed to be a team of rogue hacker CIA that inserted the PROMIS software into the foreign nations banking systems, and then started to blackmail politicians through their "backdoor", and even liquidated some accounts of major elite players before someone killed some of them.

I remember this was run in Media Bypass magazine many years ago, but I do not remember what ever became of it.

Anyone have any info on it?

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August 13, 2011, 09:43:29 AM

I did find this....but it's not updated.

_ _ _______ _____   ___  ___   ____ _       
      /___/ /___/  /  /  /__)  /_           
 _ __/    _/   \ _/__/ _/__) _/____ _ _  _    _     _      _      _
          /                           I N D U S T R I E S
         /                                   1995
% Probe Industries Magazine Phile # 8 a.k.a. PIMP # 8 %
% ___________________________________________________ %
% In this issue various 1990's Government cover-ups   %
% are discussed.  Nothing can fully be proved, as is  %
% normal in well planned cover-ups, but most of it is %
% true, and pretty pathetic.. yet typikal  - fringe   %

| The following sections are what this phile is div'd  |
| up into; Section 1 and Section 2 relate to the same  |
| topic.                                               |
| Section:        Topic:                               |
|                                                      |
|          1         Trap Doors in Bank Accounts       |
|                                                      |
|          2         PROMIS Software                   |
|                                                      |
|          3         Fifth Column Hackers (CIA info)   |
|                                                      |
|          4         "Fostergate"                      |
|                      -Death of Vincent Foster        |
|                      -Possible Clintons' involvement |


+++ 1. Trap Doors in Bank Accounts.

     In 1981, President Reagan asked Norman A. Bailey, A
monetary specialist if you will, to get involved in a program
that the National Security Council wanted created.  Everyone was
greatly concerned with international terrorism then, as they are
now, and what Bailey was supposedly asked to do was to create a
system of surveillance based on the terrorists' bank account
activity.  In 1989, he testified before Congress about this
operation, but was under legal restraint regarding any public
discussion of its details.  He testified to at least the
existence of the NSC's program when he appeared before the
Senate Judiciary Commitee in August, 1989.  Bailey conceded that
within a few years after the NSC operation was put into action
by the National Security Agency, the government began to obtain
a mountain of records by tapping in to bank-wire traffic.

     Anthoney Kimery, who wrote a story in the magazine "Media
Bypass", identifies the CIA as an agency that has used rigged
software to gain access to bank information.  He said that CIA
Director Bill Casey used to even brag about it!  Kimery went on
to say how proud Casey was that the penetration of the banks had
allowed the CIA to virtually bring the Abu Nidal Organization to
its knees.  Abu Nidal was an organization of terrorists who
posed a huge threat to the United States.  I guess if the United
States wanted to take down any threat to them, the easiest
simplest way would to hurt anyone is to literally "steal" their
money.  In the past month, Kimery, who wrote a very informative
article in Media Bypass, lost his job; one of four journalists
to suffer the consequences of investigating the death of Vincent
Foster.  Information of Vincent Foster comes later in this

   One of the last stories written by Kimery has been
freelance.  It was detailed on the Deposit Tracking System.
This system allows the Internal Revenue System (IRS) to monitor
EVERY BANK ACCOUNT in the country.  There is no such thing as
privacy with today's government.

     In 1994, a russian hacker broke into Citibank and siphoned
out $10 million dollars.  The only reason this individual got
caught was due to the fact he left the safety zone,.. he walked
where there were extradition laws.


+++  2. PROMIS Software.

     James Norman, as of August 16 the Ex-Senior Editor at
Forbes Magazine, said most information he obtained was by
informants connected with the CIA and other intelligence
organizations.  Norman lost his job due to pursuing a story
which I guess the mag received too much heat due to.  One method
he discussed was one adopted by the government and specifically,
the CIA.  This method was a piece of software called PROMIS.  It
was a data-tracking program bought back in 1982 by the Justice
Department.  The company that sold it to the United States was
known as Inslaw.  Inslaw went to court, later on, accusing the
government of having pirated it's software to the sum of about
$6 million dollars!  They went so far as to accuse them of
selling the software to police and military intelligence
agencies in 50 countries!  The judge agreed that there were
violations in the contract.  Inslaw knew what they were going.
Their lawyer was Elliot Richardson, the former attorney general
under Nixon.

   A book written in 1992 by Israeli Ari Ben-Manasche claims
that Robert Maxwell (he's dead now) sold doctored versions of
PROMIS to banks around the world.  The fix in the software was a
backdoor that was installed.  The backdoor allowed outsiders to
fully access and edit any accounts without leaving an audit
trail.  There were ten sources in all to confirm this doctored
version of PROMIS.  Inslaw claims that Maxwell did sell copies
of PROMIS to two U.S. research agencies.  PROMIS essentially
lets the United States tap into anyone's bank account they feel
like.. and they can do whatever they want with whatever they


+++  3.  Fifth Column Hackers  (CIA Info)

     There is a CIA Operative group known as the "Fifth Column"
or the "Fifth Column Hackers".  They are basically all the pist
off agents who are tired of high ranking officials getting paid
off for secrets.  They are known to suck all the money out of
accounts in Switzerland of certain peoples and deposit it
straight into our treasury, with no name as to whom it came
from.  The certain peoples include high ranking U.S. Government
Officials and former officials stretching back to the Reagan
Administration.  So far, $2 Billion dollars has supposedly been
deposited into our treasury by the "Fifth Column".  One high
ranking Reagan official alone got cleaned out to the tune of
$2.3 million dollars.

     On July 1, 1993, Vincent Foster had scheduled a flight to
fly to Switzerland.  This was three weeks before he died.  He
paid for this trip with his own credit card, tis wasn't a
government funded trip.  He had a bank account with $2.7 million
dollars in it, but found it had been wiped out and cancelled his


+++  4.   "Fostergate"

     That's what it has seemingly been deemed.  "Fostergate".
Many, and I mean many reporters have lost their jobs over
following this story.  It's too dangerous.  Vincent Foster was
an Arkansas Lawyer, but yet he had $2.7 million dollars in a
Swiss Bank Account.  Either he was Johnny Cochran in disguise
and got O.J. off, or something's funny.  Supposedly, it's said,
that Foster made his money by selling U.S. nuclear military
secrets to the Israeli Mossad, the Israeli CIA.  Supposedly, as
sources say, the Mossad's banking system was penetrated (how
uncanny eh?) and Foster's info was found out.  Many government
officials were supposedly "found out" and wiped clean. 

     Another reporter, this one from Tyler, Texas, claims that
Foster selling secrets was dis-information from the CIA.  His
death is the cover-up of four administrations in the white

     Foster worked for an software firm, along with Hillary
Clinton.  The firm was a money-laudering outfit.  Foster was
highly affiliated with the CIA.  He was a man who knew too much
about everything.  With the whole whitewater hearings, nothing
damaging has come out against the Clintons' and Foster is dead.
People who have spoken out to reporters have refused to go
public, and have been driving off the road and have had many
death threats.  If a firm was to launder money, the perfect
system to access would be PROMIS, who knows more about it then
CIA and CIA affiliated people.  People in the know can do
whatever please them.  Could it be PROMIS was accessed and
Foster, among others in the firm, laundered money from our
country?  If so, the Fifth Column Hackers would definately made
him as a target in Switzerland; and Foster was a definate
takedown.  Here's the reality of the whole thing:  When Foster
was found dead in Ft. Marcy Park, Police found no car keys on
him.  How the hell did he get to the Park and commit suicide? 

     In the morgue, however, after two White House "Personnel"
had inspected the body, his keys were found in his right hand
pocket.  At the sight where his body originally laid, it was
said he was found with a .38 in his right hand, but eye
witnesses claim they saw no gun.  The report made out also said
there were large amounts of blood and a gaping hole in his head.
Yet eye witnesses claim there was little blood and no large head
wound.  The head wound was the type that would be made by a
little hit pistol.  Like a close range shot from a 1-shot 22.


     Overall,  This phile can raise many questions.. all I can
say is that there are few answers.  Most sources to newpapers
and mags refuse to go public due to fear for their life.  there
is definately corruption in our gov't.. specifically the Clinton
Administration.  If you have illegitimate money stashed away,
and you think you have any reason to be monitored by CIA, i.e.
mob money, etc.. there is always the chance the Fifth Column
Hackers can suck you dry.. they seem to operate only against
people who have large quantities of money due to illegal means.
Foster's death was not suicide like it was written off.. but
this is just my opinion.. our government may always be
financially secure, due to the fact we can steal money whenever
we need it,.. but they'll never be trustworthy again.  If you
ever want to hear more in-depth convo on this subject, read the
posts on alt.current-events.clinton.whitewater.

If you want more info on any of these topics, i STRONGLY urge
you to pick up these books or mags:

Sep25-Oct2 Issue of Insight

October issue of Media Bypass  call 1-800-4-BYPASS
     (Actually the mag just rox, it's 12 issues for $30)

the r-rated book:  Compromised: Clinton, Bush, and the CIA.
     S.P.I. Books, 136 West 22nd St., New York, 10011; $23.95

Citizen's Independent Report 
     (165 pp., $15.45; printing and shipping charges only! 

The New York Times, Mar 8, 1992   v141 

Los Angeles Times, May 6, 1994  v113

The Washington Post, Apr 18, 1994   v117


I would like to give thanx to a friend of mine who only wants
to be known as "Doom and Gloom".. a stock market and government
cover-up buff. 

This phile was not copied but a compilation of various info
I have read in many MANY articles.  Believe or not.. I do..
these people have no reason to lie.


  fRiNgE                                Probe Industries 1995
  any questions or whatever, you can reach me at:

  Apocalypse 2000             H/P         +1-847-831-0484
  Poison Pen                  H/P         +1-847-966-2095
  0 Day Warez Palace          H/P         +1-847-256-5928
  Sillicon Underground        H/P         +1-514-725-0189
  sub terra                   H/P         +1-904-484-5548
P R O B E  I N D U S T R I E S  M A G A Z I N E  P H I L E  8
In any country, Prison is where society sends its failures,
but in this country, society itself is failure.


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August 13, 2011, 09:52:18 AM

some more....

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Spook Wars in Cyberspace--Is the FBI Railroading Charles Hayes ?
by Dick Russell

High Times, June 1997

Why does the international dope trade just keep flourishing, even while major traffickers and their government protectors keep getting exposed and imprisoned? Well, it could just possibly be that the ones going to jail aren't using the right computer software. Here's another murky peek into the legendary PROMIS conspiracy.

Spook Wars In Cyberspace - Is The Government Railroading Charles Hayes ?

This is a story straight from a Tom Clancy novel, or maybe Mission: Impossible. Shortly before last November's election, Kentucky surplus- computer dealer, who claims to be a longtime CIA contract agent, gets arrested by an FBI SWAT team and is charged with hiring an undercover agent- to murder his own son.

At his trial in January, 61-year- old Charles Hayes testifies that he's been set up by the federal government. And why? Because he's part of a team of retired intelligence types calling themselves the "Fifth Column," who've been using a supercomputer to hack into certain secret foreign bank accounts used by numerous US politicians to stash illegal funds garnered mainly from drug and arms dealers.

The prosecution's key witness against Hayes, at the trial in London, KY, turns out to be a right-wing California journalist who occasionally informs for the FBI, a fugitive with a history of mental institutionalization. For the defense, a former senior editor at Forbes magazine vouches for Hayes' credibility. After the jury hears tapes of Hayes discussing a $5,000 payoff for a prospective hit on his estranged son, the defendant responds that he'd known all along he was talking to an FBI undercover, but had been stringing the Bureau along so he could develop evidence against them. When the CIA introduces affidavits disavowing any relationship with Hayes, he takes the stand to provide his cover name, "Charles Lawson," and an ID number.

Following three hours of deliberation, the jury finds Hayes guilty, to the astonishment of nearly 100 supporters present. He says from his jail cell afterwards, while his attorney moves for a new trial, that he anticipates "assistance" from higher powers.

Hayes Gets Around

Is Charles Hayes for real, or merely a con man looking for a get-out- of-jail-free card? For months prior to his arrest last year, revelations about Hayes and his postulated Fifth Column had been circulating on the Internet and in Media Bypass, a colorful "patriot" publication out of Evansville, IN. Not only was this Fifth Column said to have downloaded financial records on government officials from up to 3,000 hidden overseas accounts, but they also allegedly wire-transferred about $4 billion clear out of those accounts into "escrow holding funds" at Federal Reserve banks.

Then, according to Hayes, these alleged Robin Hoods of cyberspace began quietly announcing their findings to certain congress people and foreign governments; which is why, so the yet- undocumented saga brags, a record number of 60-some US senators and representatives announced their retirements just before the 1996 elections. And that also is supposedly how the Mexican federales got turned on to the drug-laundered millions salted away in Switzerland by the family of ex- President Carlos Salinas de Gortari.

On the face of it, these assertions might appear preposterous. But a HIGH TIMES investigation into Hayes' background reveals a tantalizing trail of evidence indicating, at the least, considerable insider knowledge about computers and smuggling.

In 1985, Charles Hayes was a key government witness in a Kentucky trial involving the largest gemstone seizure ever by US Customs-millions of dollars' worth that had been smuggled out of Brazil

In 1991, the telephone records of doomed journalist Danny Casolaro showed numerous phone calls to Hayes in the month before Casolaro was found dead in a West Virginia hotel room. Casolaro had spent the past several years investigating a tangled web of government corruption he called "the Octopus." One of Casolaro's focuses was the Inslaw case, in which the Justice Department stands accused of having stolen the company's PROMIS computer software, which was capable of tracking complicated financial transactions.

In 1992, Hayes testified about the Inslaw matter before a Chicago grand jury. In April '96, he was subpoenaed and gave a lengthy deposition about Inslaw to a Justice Department attorney, who quizzed him about his computer expertise. FBI Special Agent David Keller testified at Hayes' January trial that he knew of him from a previous FBI investigation into the Inslaw matter.

In July 1995, Rep. Jim Leach, chairman of the House Banking Committee, wrote to the director of the National Security Agency, seeking "your agency's help in verifying or laying to rest various allegations of money- laundering in Arkansas in the late 1980s." Among other matters, Rep. Leach asked about Inslaw's PROMIS software- and Charlie Hayes.

Several of Hayes' associates back up his contention that he's being framed, in an attempt to put the Fifth Column out of business. One well-placed source, who requested anonymity, affirms that Hayes was a CIA asset, adding, "I think Hayes has been set up to the nth degree to discredit him."

Mena and the Octopus

Hayes launched the five-member Fifth Column himself, he maintains to HIGH TIMES, primarily to follow the money-laundering of the international drug cartels. It's a personal crusade, according to one of his associates in Kentucky, triggered by the way Hayes' 37-year-old son, John-the alleged murder-for-hire target-supposedly "cooked his mind on drugs." Mark Swaney, whose Arkansas Committee was responsible for much of the early publicity surrounding the notorious CIA drugs-and-arms operation out of Mena, AK, (HighWitness News, Jan. 95) spoke with Hayes on a number of occasions between 1992 and '95: "A lot of what he told me about Mena turned out to be true," says Swaney.

Swaney's notes from a July '92 interview with Hayes contain charges that both the federal government and the Arkansas State Police were involved in distributing cocaine out of Mena. Asked if then-Governor Bill Clinton was aware of the Mena operation, Hayes responded, "No, but his associates were involved." He elaborated that some of the money was laundered through two powerful Arkansas companies with ties to Clinton.

In a five-hour jailhouse interview not long before his trial, Hayes, a former Air Force pilot, described a CIA assignment he'd once undertaken to fly a weapons shipment from Mena to Aruba in the Caribbean. On discovering that the cargo was actually cocaine, Hayes told me, he dumped it on the runway and ended up in a shoot-out that killed several people.

This is one of many stories, such as Hayes' claimed friendships with Fidel Castro and Sen. Edward Kennedy, that prove impossible to verify. But William Hamilton of St. Louis, the president of Inslaw, tells of encounters with Hayes which add credence to the existence of the Fifth Column. Hamilton first became aware of Hayes in 1990, in the midst of Inslaw's legal battle to prove that the Justice Department, FBI, CIA, NSA and other federal agencies had illegally appropriated their PROMIS database- management software for their own purposes.

As recounted in a heavily redacted House Judiciary Committee report, The Inslaw Affair (September 1992): "Mr. Hayes is a surplus computer dealer with alleged ties to both United States and foreign intelligence communities. Mr. Hayes first came to the attention of the Committee during August 1990, following assertions that excess Haris- Lanier word-processing equipment he had purchased from the US Attorney's office for the Eastem District of Kentucky, located in Lexington, contained the PROMIS software." The Justice Department had subsequently seized the equipment back from Hayes, preventing its use as evidence in the Inslaw case. (The computer gear had also allegedly contained sensitive classified material, such as the identities of narcotics informants.)

Hamilton therefore contacted Hayes, who told him the military owed Inslaw plenty of money, because it had secretly distributed his PROMIS software. When Hamilton subsequently learned from a CIA contact that PROMIS had indeed been used aboard US submarines, he visited Hayes in Kentucky in January '91. PROMIS was "in the CIA, DEA, FBI, everywhere," Hayes told him. Checking him out with other sources, Hamilton was told that Hayes and a partner both code- named "Running Fox" had belonged to an elite intelligence unit which "had to be able to take apart and put back together, without any diagrams, the Cray supercomputer."

According to Hayes, this elite spy unit was known as "Squad D." First mentioned in Bob Woodward's book Veil: The Secret Wars of the CIA, 1981-1987, Squad D was established by William Casey, Ronald Reagan's CIA director. Part of its mission was computer hacking. "There was penetration of the international banking system," Woodward wrote, "allowing a steady flow of data from the real, secret sets of books kept by many foreign banks that showed some hidden investing by the Soviet Union."

And not just by the USSR. PROMIS- short for "Prosecutors' Management Information System"-had originally been designed to track complicated illegal currency transactions through intricate systems of laundering and wire- transfers; it could readily be "enhanced" to track transactions by banks and dummy corporations used by terrorists and dope dealers. Hamilton's Inslaw had sold PROMIS to the early Reagan Justice Department, which promptly reneged on a $6 million payment due, asserting that a portion of the contract was not fulfilled. Inslaw went bankrupt, and its ongoing lawsuit against the Feds is still in the US Court of Claims.

Promis Them Anything

Inslaw's attorneys, who include former Attorney General Elliott Richardson, present evidence that a covert intelligence operation in fact transformed PROMIS into an unprecedented high-tech spying tool. It seems a brilliant young CIA contract agent out of Seattle named Michael Riconosciuto, reputedly a past master at clandestine drug chemistry and computer hacking, not only "enhanced" the PROMIS package to implement its use in tracking international currency transfers, but fitted it with a secret "trap-door" access port that enabled US espionage agencies to electronically monitor its use by anyone who bought it.

According to Richardson, PROMIS was peddled to as many as 88 foreign governments by "cut-out" front men working for the Department of Justice, the NSA and CIA. It was also purchased by numerous international banks in Switzerland and elsewhere, which were interested in standardizing their wire- transfer data. None of these buyers knew about Riconosciuto's trap-door application that not only allowed Uncle Sam to monitor their money-laundering in progress, but, whenever desired, to invisibly modify it.

One of the "cut-out" peddlers of this stolen, hyped-up and poisoned money-tracking software took it to Brazil in the mid-'80s, according to Charles Hayes, who was there at the time, as a CIA contract agent, in the matter of the stolen gemstones. Dr. Earl Brian (convicted last year in Los Angeles of multimillion-dollar international financial fraud) had been California Secretary of Health during Reagan's govenorship in the '70s. Michael Riconosciuto has alleged that some time after 1979, Brian was given the PROMIS software to peddle around the world to line his personal pockets. It was during a sales trip to Brazil in 1985 that Dr. Brian allegedly told Hayes about PROMIS.

Shortly after this Brazil adventure, Hayes moved back to his hometown of Nancy, KY, and, as his CIA cover, set up a salvage company specializing in computer parts-and also began working with Riconosciuto. The Fifth Column's Cray Model 3B supercomputer was primarily constructed, it is said, through purchases at Department of Defense auctions.

Initially, Hayes' Fifth Column's work had been done under government sponsorship. Veteran investigative journalist James Norman has written that besides penetrating the international banking system, the Column had initially succeeded in downloading information from over 50 intelligence services around the globe, including the Soviet KGB and the Israeli Mossad.

Then Riconosciuto got busted for running a methamphetamine lab in 1992, and wound up in the federal penitentiary, where he currently resides. Around the same time, Hayes' team discovered that the codes in the PROMIS software featured not just one, but two trap-door ports, suggesting that Riconosciuto had planned to use one of these himself, possibly to raid accounts in banks using PROMIS.

Hayes says the Column shut down Riconosciuto's port and created their own multiple setup, by which through a modem they could dial into a computer's security systems and circumvent them with a few keystrokes. Then Hayes further customized the software to sort through vast amounts of data; using a Cray, the Column could handle astounding data rates, which could be quickly downloaded and analyzed off- line in search of money flows and other connections. (In the virtual-reality realm, "money" is merely stored information; with the proper authorization codes, computers can electronically launch volumes of digitized currency from one bank account to another.)

Charging that the CIA "didn't hold up their end" of some unspecified bargain, Hayes says that he and the other four Fifth Columnists decided to go rogue. Having sole access to their own software modifications, they were now essentially creating their own private currency tracking enterprise.

Plundering The Pirates

Secret "numbered" accounts in Swiss banks, according to Hayes, are not actually numbered but lettered, with codes which appear on the lower right-hand side of their documents; using tracking software and a sufficiently powerful computer, they are not difficult to penetrate. Hayes says the Column uncovered a $1.5 million bribe paid by the Cali cartel to a witness against former Panama dictator Manuel Noriega, who was subsequently convicted in Florida of narcotics crimes the cartel may actually have committed. Then after the Column in 1994 examined the secret accounts of the Salinas family in Europe, he says they passed the incriminating data to the DEA-which promptly alerted the Mexican government.

"On an official basis," says former Wharton School finance professor and money-laundering expert Orlin Grabbe, a friend of Hayes, "people associated with the Fifth Column had tried to take their evidence to the appropriate legislative committees and the Justice Department-and ran into a sea of corruption. So they decided to show them, 'We'll do our job anyway, even if it's in a different form.' "

Others are more skeptical. One well-placed HIGH TIMES source who requested anonymity says he believes Hayes and his associates may indeed have accessed foreign accounts, but may also have kept considerable sums for themselves rather than just transferring money to Federal Reserve accounts.

The Fifth Column first surfaced publicly in 1995, after James Norman, then a senior editor at Forbes, was alerted by Inslaw's Bill Hamilton to Hayes. Having broken a cover story on Iraqi arms-money laundering through oil markets, Norman was tipped by Hamilton to the PROMIS case: "Hamilton said that, as crazy as the things Hayes said seemed to be, they invariably had a way of proving true six months later," Norman recalls.

So Norman, who describes himself as a Liberal Democrat, visited Hayes at the Beckett Hotel in Nancy, where they spent an evening comparing notes. Hayes was interested in connections Norman had already discovered involving the PROMIS software, the NSA and a Little Rock bank-data-processing company then called Systematics (since absorbed by Alltell Information Services). Controlled by Arkansas billionaire Jackson Stephens, Systematics, according to Norman's sources, shuffled money for covert CIA and NSA spying operations, and was also involved in a massive bank-spying effort called "Follow The Money."

Sources also alleged a link to Vincent Foster, the White House deputy counsel whose death on July 20, 1993 was officially labeled a suicide. Foster was said to be a behind-the- scenes overseer for Systematics on behalf of the NSA, even while he was a partner with Hillary Clinton at the Rose Law Firm in Little Rock. (Alltell's chairman, Joe Ford, has denied any connection between Systematics and Vincent Foster.)

"Along about midnight," Norman remembers, "Hayes dropped this bombshel1 on me: 'You know, Vince was under investigation when he died.' I said, 'What investigation?' And Hayes, in his inimitable way, took a long drag on his cigarette, leaned back in his swivel chair, and said, 'Well, it's es- pie-oh-nage.' "

Hayes was only the first of more than a dozen sources that Norman eventually uncovered in reporting his "Fostergate" story-for Media Bypass, after Forbes backed away from publishing it. Initially Hayes did not tell Norman about the Fifth Column, which he learned of from another source. But the article was the first published reference to the Column, which had been monitoring Foster's Swiss bank account.

"They had located it," Norman wrote, "by tracking money flows from various Israeli government accounts, after finding Foster's name while secretly snooping through the electronic files of Israel's Mossad."

Foster, who was said to have had access to highly sensitive US code- encryption and data-security information, allegedly was peddling some of it to the Israelis. Norman continued: "Foster's first indication of trouble came when he inquired about his coded bank account at Banca Della Svizzera Italiana in Chiasso, Switzerland, and found the account empty. Foster was shocked to learn from the bank that someone using his secret authorization code had withdrawn all $2.75 million he had stashed there, and had moved it to, of all places, the US Treasury."

In April 1995, Norman sent a letter to White House press secretary Michael McCurry concerning his article, then slated to appear in that May's issue of Forbes. Among the allegations it spelled out were Foster's having learned from Hillary Clinton, shortly before his death, that he was under investigation by the CIA; that the President's wife was also a beneficiary of funds from Foster's Swiss account; that documents relating to the Systematics company had been removed from his office after his death, and that Systematics was also involved in laundering funds from covert operations, "including drug and arms sales related to activities in and around Mena."

A week later, the White House responded that these allegations were "outrageous" and "baseless." Forbes, at the last minute, killed Norman's story, and so it appeared in the August 1995 issue of Media Bypass. Norman was keeping in touch with Hayes, digging up new information and consulting him for leads.

From another source, months earlier, Norman had acquired some account numbers that had been found among the personal effects of Barry Seal , a cocaine-smuggling CIA asset who'd worked out of the Mena airport, and was murdered by Colombian hitmen in Baton Rouge in 1986. (See HighWitness News, Jun. '86). "In a suitcase in the trunk of Seal's car was a scrap of paper," says Norman, "with a curious string of ten letters. One source who'd been involved in money-laundering in the past was quite confident it was a Swiss bank-account number in encrypted form." Norman passed it-KPFBMMBODB along to Charles Hayes.

It was not long thereafter that Norman was informed that his "Fostergate" story was being abruptly spiked, on orders from the very top: Forbes publisher emeritus Caspar Weinberger, Secretary of Defense under Reagan. Weinberger's motivation was a mystery to Norman until he subsequently learned, from Hayes, that the encrypted number from Barry Seal's effects had led to the Union Bank of Switzerland, and to none other than Caspar Weinberger. The Fifth Column had supposedly raided $2.3 million from that very account, and then left a note in Weinberger's drop- box in Bar Harbor, ME, listing the number and a message: "You have been had."

In August 1995, Norman sent Forbes editor Jim Michaels a memo with further corroboration for his Fostergate piece, including evidence emerging from credit- card and airline frequent flier records indicating that Foster had made periodic one-day trips to Switzerland. Then Norman dropped his bomb on Forbes: "If you have any doubts about the ability of the CIA's Fifth Column to raid foreign bank accounts and withdraw funds, just ask Caspar Weinberger." Enclosing a copy of documents found in Seal's trunk, he added: "The clear implication is that Caspar Weinberger, while Secretary of Defense, was taking kickbacks on drug and arms sales. A cosignatory on this account appears to be connected with [a relative of] Howard Metzenbaum, the retired senator from Ohio. We are talking about bipartisan payola. Which helps explain why Congress is so squeamish about investigating this stuff."

After sending his internal memo, Norman was told to go on indefinite unpaid leave or to resign. As Fortune noted in an article about its rival's imbroglio that fall, "The embarrassing memo was particularly ill-timed. Malcolm S. 'Steve' Forbes Jr., the magazine's 48-year-old editor-in chief, is readying a campaign to run for President on the GOP ticket." Fortune's photo of Norman was captioned: "Ex- reporter Norman's startling sleuthing proved a little too gutsy."

Putting A Stop To It

Days later, the now-unemployed Norman met with Hayes in Pittsburgh, along with Orlin Grabbe of Reno, NV, who had started examining the Foster saga in a lengthy series on his World Wide Web page ( "Hayes made some astounding predictions," Norman recalls about pending unprecedented departures of members of Congress and the Senate. I pooh-poohed the whole thing as ridiculous. He said, 'Wait and see.' " The Fifth Column, Hayes claimed, was sending plain brown envelopes to politicians containing copies of their illicit accounts in Switzerland and offshore banks in places like the Cayman Islands. By early 1996, Hayes' outlandish prognostications indeed seemed to becoming true, as dozens of prominent senators and representatives announced their retirements.

Norman says, "He would make allusions to some geographical area or other way of describing people other than by name, who invariably would announce they weren't going to run again. It became almost like pin-the- tail-on-the-donkey." As his findings continued to appear in Media Bypass, Norman began getting calls from other mysterious sources, who he now believes were government disinformation artists "looking for stuff on Hayes."

Both Norman and Grabbe speak of repeated attempts being made on Hayes' life, including the sabotage of his car's brakes on an occasion when all three were riding in it near Pittsburgh. Grabbe's Web page alleges that one hit plot emanated from Arkansas, farmed out through a New Orleans crime syndicate which contracted with a pair of ex-CIA assassins.

There would certainly appear to be plenty of people with reason to want Hayes and the Fifth Column put into permanent dry-dock. Hayes delights in telling a story in which the Column wire-transferred millions of dollars into the US Treasury out of secret Swiss accounts held by Nancy Reagan, Henry Kissinger and Oliver North , and then proceeded to play them off against one another. This happened, Hayes says, back when North was the front-runner in the polls for a Senate seat from Virginia, which he lost after Nancy got an anonymous call telling her North "had given out her unlisted account number and they got hers and Henry's money." (North's use of secret Swiss accounts in the Iran- Contra affair is notorious.)

Hayes maintains that the Fifth Column has been a leading source for Whitewater investigator Kenneth Starr, having even downloaded "the entire White House database"-with plenty of ammunition that's yet to surface concerning FBI files provided to the Clinton Administration and contributions to Democratic campaigns.

In June last year, just as the Column's purported activities emerged, then-CIA director John Deutsch announced plans to create a "cyberwar center" to protect the nation against the growing security threat posed by computer hackers. Attacks on international wire transfers, he told the Senate, were of special concern. (As to why the banks don't just change their PROMIS software, Hayes says it's not that easy to do. Besides, he claims, the banks have been informed that if they try to do that, their competitors will receive a printout listing all their illicit moneys.)

Then last September, some 16 FBI and Secret Service agents in four cars showed up in Nancy, asking questions about Hayes.Some say they were also searching for the Column's Cray supercomputer, said to have been installed in the back of a 48-foot tractor-trailer complete with backup power supply.

And on October 22, just before a meeting Hayes had arranged with some oil-company executives in the Mellon Bank case, the FBI busted him at his residence on the murder-for-hire charge. It was no secret that Hayes and his son, John Anthony, were involved in an $800,000 court property fight over Hayes' mother's will. But after Charles' arrest, John Anthony Hayes assured a local newspaper that if his dad had really wanted him out of the way, he'd have handled it himself.

Denied bond in federal court nevertheless, Hayes was remanded to the Laurel County Detention Center to await trial. Also denied the right to act as his own counsel, he hired charismatic Lexington attorney Gatewood Galbraith.

The January trial was, to say the least, bizarre. The star prosecution witness, Lawrence W. Myers, had interviewed Hayes for a magazine article last August, and then called the FBI office in Birmingham, AL, to report that Hayes was looking to have someone killed. FBI agent Don Yarborough, posing as a would-be hit man, contacted Hayes, who spoke with him about the prospective murder over an open phone line, and used his own return address on a packet of documents he sent to this make-believe assassin. The phone tapes revealed Hayes offering to provide $5,000, seven days after his son's proposed murder, at "the best place to meet-a funeral office." In his testimony, Hayes said he "figured the government was getting ready to set up something, so I thought it would be a good time to reverse it on 'em... I figured I would be able to get them caught in a trap."

Hayes had been on CIA contract since age 19, he stated under oath. The Fifth Column had "split off" from Bill Casey's Squad D to "champion a lot of peoples' rights." Asked by Galbraith to name names of politicians forced to resign because of the Column's findings, Hayes singled out former Maine senator William Cohen (recently named Secretary of Defense) and Colorado senator Pat Schroeder. (No direct evidence has been produced concerning either of Hayes' courtroom allegations.) When he began describing how Vince Foster "had been relieved of a bank account in Bern, Switzerland," the judge ruled that such detail "must be shown to be necessary" to the defense; Foster's name was not mentioned again.

At the end of the trial's fourth day, new information surfaced concerning Lawrence Myers' background. In 1985, he had been charged with extortion and spent a year in a psychiatric facility; a felony warrant for him remained active in California. It also came out that he had been sharing information on several cases with the FBI, which had doctored "rap sheets" to hide his background.

The judge granted a two-week continuance, but after the trial resumed on January 27, refused to allow most of the damaging information about Myers into evidence. [Kennetta] Williamson, an investigator for the Tennessee attorney general's office, described him in testimony as "a professional and pathological liar." Reporter Norman testified that his investigation confirmed that Hayes "had a long relationship with the CIA as a contract agent"-which was denied in three CIA affidavits later introduced by the prosecution. That was when Hayes took the stand to reveal his alias and contract number.

But the jury believed the tapes incriminated Hayes. "The main thing I can't understand," said one juror after the guilty verdict, "is how he thought he could entrap the government."

Marvin Miller, a prominent Washington criminal-defense attorney with years of experience in espionage cases, is drafting a motion for a new trial. "We believe there are significant errors that occurred at the trial," he says. "The jury simply was not allowed to hear a number of things that could have reasonably changed their decision."

Awaiting his May sentencing, Hayes says from his cell: "Hey, I love my government. They trained me well. And the Fifth Column ain't out of business yet."

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August 13, 2011, 09:58:44 AM

Jan 17, 2011

What Ever Happened To Peter Videnieks and Joseph Cuellar?

The Octopus: Secret Government and the Death of Danny Casolaro
The Octopus: Secret Government and the Death of Danny Casolaroby Kenn Thomas and Jim Keith                             
Copyright (C) 1996                             

    "In the middle of the journey of life, I found myself in a dark wood, having lost the straight path."
-- Quote from Dante's Inferno -- written in Danny Casolaro's notebook.

   Rounded edges of the Octopus tentacles arose briefly from under the relatively calm waters of a new administration's first year in office. Danny Casolaro was two years gone and the key players in the investigation he began ostensibly had left power after the 1993 election. Casolaro's work was left unfinished, however, and his metaphorical sea monster still swam in the sea of current events.

     Columnist William Safire reported [column reprinted below] that Bill Clinton and George Bush struck a secret deal after Clinton's election that the former president would withhold criticism of the new administration for one year in exchange for Clinton's soft-pedaling of the Iran-contra investigations. A month before the end of that deal, a month before the former Arkansas governor's first anniversary as president, the Clinton administration re-opened the Inslaw investigation. In December 1993, the FBI began again to interview Casolaro's close associates and friends with an eye toward resolving the question of his death--was it a suicide or murder?

     Under the new administration, the FBI was not satisfied with the determination of Judge Bua's report. It was still concerned with "Danny's state of mind at the time of his death", Casolaro girlfriend Wendy Weaver told the San Francisco Chronicle. "They said they were going to interview all these people and then bring
the findings back to their experts to determine if he was suicidal... I told them I thought it was murder." Press reports were silent as to why the case was being reopened at this time, indeed few papers other than the Chronicle reported upon it at all. Only the dim political purpose of the coming end to Bush's year of silence even suggested an answer. Did the new administration take interest in this high profle case, touching as it does on the intelligence backgrounds of prominent Republican personalities, as protection against Clinton-bashing from the Bush camp? Or was there more to it?

     The review of the case had been ordered by Associate Attorney General Webster "Webb" Hubbell, then the third-ranking official at the Justice Department (seen by some as the Department's de facto head), a Clinton family friend. In noting that Hubbell had been assigned to review the Inslaw case, long-time Washington watcher Sarah McClendon also noted that Casolaro had maintained that additional details about the Inslaw relationship with the Justice Department could be had from employees in the office of Senator Robert Byrd. According to McLendon, Casolaro had scheduled an interview with these employees for the Friday preceding his death. Senator Byrd's chief of staff was the wife of Peter Videnicks, contracting officer at the Justice Department during the Inslaw period.

McClendon quoted Bill Turner [CCCU note: Was she referring to the same FBI agent who was mentioned in a book by Robert Merritt and Douglas Caddy as having been involved in Cointelpro in the 60's and 70's, or is this another Bill Turner?] as saying that Casolaro told him that he planned to meet with two members of Robert Byrd's staff. McClendon also noted the Hamiltons' complaints that Hubbell and FBI investigator Scott Erskine had plans to release a report without having talked to important Casolaro associates or investigating curious incidents, including a threat against Casolaro made by a friend of Videnieks, Joseph Cuellar, who apparently was also trailing the writer.

    Hubbell himself had already been connected to the Inslaw case through the confessions of Danger Man.  In April 1992 Michael Riconosciuto told Village Voice's Frank Snepp of the link between guns-and-drugs operations at an airstrip in Mena, Arkansas--a story that already loomed as a major Clinton-era scandal because of Clinton's failure to investigate the situation as governor--and Park-On-Meter (POM), a parking meter manufacturer in Russellville, Arkansas, that figured prominently in making Webb Hubbell one of the early victims of another Clinton debacle, the Whitewater affair.  Riconosciuto claimed to have worked with
Terry Reed, the Mena pilot whose revelations first brought the Oliver North-styled smuggling operation to national attention.

Riconosciuto also told Mark Swaney, the head of a University of Arkansas student group responsible for a petition drive to investigate Mena, that he had been involved in developing chemical and biological weapons in a project connected to POM -- apparently never explicit that this was also connected to the work he did on Cabazon tribal lands -- and that the company also manufactured external fuel tanks for C-130 transport planes.

Whiteout: The CIA, Drugs and the Press
The CIA, Drugs...   
Riconosciuto had already confided to Alexander Cockburn that he had supervised high-tech equipment transfers and developed software to help launder money at Mena and explained that POM, in conjunction with the infamous Wackenhut and Stormont Labs in Woodland, California, began production of the delivery system for the new chemical and biowarfare weaponry for use in the Contra war in 1983.  Long-range transport missions require the use of external fuel tanks. Riconosciuto told Cockburn that POM made the tanks for unconventional guerilla warfare against the contras. POM was to receive chemical agents from the 354th Chemical Company of the Army Reserve, located on property across from the corrugated barn housing the POM facilities, for use in small explosive devices made with the same equipment POM used to produce parking meters.

     Stormont Labs acknowledged only discussions with Wackenhut regarding biological weapons and Wackenhut denied working with POM. POM president, Seth "Skeeter" Ward II, also Webster Hubbell's brother-in-law, admitted that the company had some Pentagon contracts, but only for "re-entry nose cones for the nuclear warheads on the MX missile and nozzes for rocket engines", not chemical or biological weapons delivery systems, although he confessed to not knowing what kind of aircraft parts POM made for one of its contracts with McDonnell Douglas.

   Ward also denied another central charge made by Danger Man:  that POM received the first industrial development loan made by the Arkansas Development Finance Authority (ADFA), a controversial state authority co-written by Webster Hubbell in 1985.  Bill Clinton appointed every member of the ADFA's governing board and was required to approve its every bond issue, apparently with no other legislative means of guaranteeing that the money would be spent as intended.

     The ADFA primarily served two masters: the Stephens, Inc., investment bank that received 78 percent of ADFA's underwriting fees and sales of housing and industrial bonds (Clinton had appointed two Stephens associates to the ADFA board); and Clinton crony Dan Lasater, whose Lasater and Company firm underwrote $664 million in municipal bond issues after the creation of the ADFA. Lasater was a party animal renown for cocaine soirees at his Arkansas mansion, who claimed to have paid off drug debts of the President's brother Roger. Even after a police investigation of Lasater in 1985 for drugs, Clinton approved a $30.2 million bond issue to overhaul the state police radio system. In 1986 Lasater was sentenced to 30 months in prison for the distribution of cocaine (Roger Clinton was an unindicted co-conspirator) and was pardoned for it by Clinton. He remains connected to the White House through the person of White House official Patsy Thomasson, manager of Lasater and Company while Lasater was in jail.

The Strange Death of Vincent Foster: An Investigation     In this murky financial atmosphere, and despite Ward's denials, it is probable that the ADFA did issue one of its first bond issues to POM--with Clinton's required approval. For critics who complained about Clinton's passivity in investigating the Mena airstrip, a less passive reason for his inaction emerged, with a tentacle pointing tothe Inslaw affair.

     Mena did not provide the only evidence that the Octopus swam in Whitewater currents, however. It's tentacles also stretched toward the most infamous developing scandal of the Clinton era: the Vince Foster death.

     POM's admitted jobs for the Pentagon and the funny finances of the ADFA remained obscure for the most part in the media as Webster Hubbell's representation of POM became the official reason for his resignation from Clinton's Justice Department, one month after his re-opening of the Inslaw investigation. The Rose Law Firm declared that Hubbell had failed to provide documentation for expenses he had charged to the firm and that POM lost $1 million in litigation expenses when Hubbell unsuccessfully pursued a patent infringement case he took on a contingency basis for his brother-in-law "Skeeter" Ward. "Unfortunately, because of public speculation about me and my former law firm,"  Hubbell said in his resignation letter,  "I will have to spend a significant amount of time on an internal matter with my former partners."

     In addition to bringing POM out of the Washington spotlight, the resignation shielded Hubbell from other accusations regarding the Whitewater Development Corporation real estate investments. Specifically, Hubbell served on the Resolution Trust Corporation during its takeover of the Madison Savings and Loan, owned by
Whitewater partner James McDougal and previously represented by Hubbell. Hubbell failed to inform the RTC of the potential conflict. Unofficially, Hubbell was the second victim of Whitewater, following White House counsel Bernard Nussbaum's forced resignation for questionable meetings with federal regulators looking into the Whitewater Development Corporation real estate investments.

     Nussbaum had been responsible for removing Whitewater files and a diary from the office of White House aide Vincent Foster less than three hours after Foster's death from a gunshot wound. He was accompanied on that visit by Patsy Thomasson.

Friends in High Places: Our Journey from Little Rock to Washington, D.C.   Foster's last weekend had been spent in the company of Webster Hubbell, his wife and another couple, White House counsel Michael Cardozo and his wife. Hubbell joined the group in Maryland after leaving the meeting that informed William Sessions of his dismissal as FBI Director. After returning from a Hawaiian
vacation, Bill Clinton spent that weekend in Arkansas dining with David Edwards, a former Stephens Inc. employee and conduit for $23 million from the king of Saudi Arabia for the Middle Eastern studies program at the University of Arkansas. Clinton had one last twenty minute conversation with Foster the Monday night before his death. Oddly, one of Foster's last phone conversations on the morning of his death was with Brantley Buck, the Rose Law Firm partner assigned to investigate Webster Hubbell and POM.

    In 1995, new suspicions arose concerning the use of PROMIS in the world banking system. One post on the internet charged (or, rather, sarcastically reported the "false" charge) that Systematics, a subsidiary of Alltech Corporation comprised of Systematics Financial Services Inc., Systematics Information Services Inc. of Little Rock, Arkansas, and Systematics Telecommunications Services Inc. of Dallas, Pennsylvania, had
modified the PROMIS software for sale to private banks, with the attendant back doors to allow the NSA to spy on banking operations. The post went on to charge that Webster Hubbell had "helped work out strategies to use Systematics software to spy on commercial and central banks." The anonymous source encouraged
Internet readers to verify the charge (or, "the utter falsehood of these malicious lies"), and attached a long list of bank and financial service addresses, executive names and capsule histories of their conversion to Systematics software, replete with citations in American Banker.

     The Systematics information and Vince Foster's last weekend with Webster Hubbell and Michael Cordoza came together to float the last odd rumors about the PROMIS program. Instead of the recreational affair it was described as during the Congressional Whitewater hearings, the source of this new speculation suggested that the Clinton cronies met to plot damage control over a burgeoning scandal involving PROMIS.

     Nearly $3 billion had been emptied out of Swiss bank accounts belonging to dozens of high-powered political types--both Democrats and Republicans--by a CIA faction known during this period as "the Fifth Column", but obvious Octopus clones.

A Washington Tragedy: How the Death of Vincent Foster Ignited a Political Firestorm     The Fifth Columnists served as expert hackers, collecting routine foreign intelligence data presumably through the PROMIS back door, when they encountered Vince Foster's name in the Mossad system. From there, they tracked Foster's bank trail to the Banca Della Svizzera Italiana, a small Italian border bank, where the Israelis deposited $2.73 million. The rumors only speculated about what Foster gave the Israelis: high level
intelligence information; encryption codes; data on black operations subcontractors--he was dead before it could be figured out. Whatever it was, the Fifth Column tipped its hand to Foster that he was under investigation by removing the money, although according to the story his was not the only account raided. Making another in apparently regular one-day trips to Geneva, Foster discovered the missing money, and later perhaps someone mentioned to him that he was under investigation for espionage, and thereafter he became "suicidal."

THE DEAD (PROMIS/Octopus related)

Danny Casolaro
Frank Nugan
Fred Alvarez, his girlfriend and friend
Paul Morasca
Mary Quick
Larry Guerrin
Abbie Hoffman
Jonathan Moyle
Alan Standorf
Dennis Eisman
Anson Ng
Ian Spiro, His wife, and three daughters
Robert Maxwell
Paul Wilcher
Pete Sandvigen
Alan Michael May
Jonathan Myle
Vali Delahanty
Barry Kusnick

     Sherman Skolnick, a long-time chairman of Chicago's Citizen's Committee to Clean Up the Courts, charged that nearly forty witnesses in the Inslaw case had been murdered and complained that a federal judge appointed to review the case failed to show concern over the safety of other witnesses.

     The body of Alfred [Fred] Alvarez, shot in the head with a .38 caliber bullet, burned in the desert heat for a day. It sat in a wooden chair behind Alvarez's house in a yard on Bob Hope Drive in Rancho Mirage, located in Riverside County. Police discovered the body along with those of two others, friends of Alvarez. Six months later, police broke open a door to a condo on Kearny street and discovered the dead body of  [alleged Gambino Family money launderer] Paul Morasca, hog-tied by a telephone cord strangled slowly as his legs uncurled. Three days later, Mary Quick, a 63 year old school-teacher and head of the Women's Auxiliary of American Legion Post 509 in Fresno, was killed by a shot to the head as she approached the Legion Hall. Investigators came to believe that all three murders were connected.

On September 10, 1993, the Houston Chronicle reprinted an article by William Safire titled
"No wonder Bush is quiet about Clinton."

The New York Times; Section A; Page 25; Column 5
September 9, 1993, Thursday, Late Edition - Final

     George Bush privately assured Bill Clinton that he would not criticize the new President during the first year of his term. I cannot attribute that to any source, but trust me. And Mr. Bush has kept his word.

     In what may be an unspoken quid pro quo, the Clinton Administration has moved to quash any revelations about Bush's Iraqgate scandal.

     You remember Iraqgate: the White House corruption of Agriculture's loan guarantee program to slip foreign aid billions through an Italian bank to Saddam Hussein, which he used to finance his secret nuclear buildup. The Bush Justice Department sought to contain the scandal by pretending the Italian bank knew
nothing of its Atlanta office's huge Iraqi dealings -- despite suppressed C.I.A. evidence to the contrary.

     During the '92 campaign, Al Gore accurately charged that "the C.I.A. reported to Secretary of State James Baker ... that Iraq was clandestinely procuring nuclear weapons" while State was urging more loan guarantees to appease the dictator.  Candidate Clinton, asked if he would favor a special Iraqgate prosecutor
under a new Independent Counsel Act, replied unequivocally: "Yes."

     That was then.  Last week, in Atlanta Federal court, Clinton Justice arranged for the local Banca Lavoro manager to cop a plea on three minor charges of what had been a 347-count indictment, thereby blocking full disclosure of Rome's corrupt involvement -- with guilty knowledge of U.S. officials -- in a public trial.

     John Hogan, Attorney General Janet Reno's longtime assistant in Miami, is the prosecutor who insists that the bank in Rome was innocent, over the plea bargainer's continued disputation. Federal Judge Marvin Shoob, the Sirica in this case, rejects Mr. Hogan's contention as "absurd ... never-never land." He sees a
"wider-ranging sophisticated conspiracy that involved B.N.L.- Rome ... and the Governments of the U.S., England, Italy and Iraq."

     But Ms. Reno's man, who joined Justice on June 7, has conducted what she falsely calls "a thorough independent investigation," resulting in "no reason to change our opinion."

     Thus Clinton appointees at Justice have closed ranks with prosecutors and fixers desperate not to be brought before a grand jury by a truly independent counsel.  Bush Justice appointed the lawyer for Saddam's main arms purchaser as U.S. Attorney in Atlanta; Clinton Justice is appointing a lawyer from King &
Spalding, B.N.L.'s law firm, who previously worked on the case as a prosecutor to be U.S. Attorney there now.

     Reno is unconcerned at how her assertion of B.N.L.-Rome's innocence bolsters the Italian bank's claim against the U.S. for $380 million of the loans to Saddam that James Baker persuaded Agriculture's Clayton Yeutter to guarantee. If the Criminal Division holds that Rome was victimized, shouldn't the U.S. pay up? "Apples and oranges," Hogan tells me; that's the Civil Division's job.

     Hogan is familiar with Italian suits, having once been accused of receiving stolen clothing in a Miami "hot suit" case; he earned a straight-arrow reputation by resigning as prosecutor despite his innocence.

     But now he uses "ongoing investigation" to duck questions, despite St. Janet's claim of his work having already been "thorough"; it is patently not "independent."

     Did Hogan take testimony under oath from ex-Attorney General Dick Thornburgh about a White House meeting with Italian Ambassador Rinaldo Petrignani, directed by Rome to "raise the case to a political level"? Or ask the Criminal Division why an update on the B.N.L. investigation was prepared for the A.G. just
three days before that meeting?

     Did he convene a grand jury to examine the Oct. 26, 1989, memo to Secretary Baker, with attached talking points and Baker notations, showing how commodity credits were abused for Saddam's backdoor financing?

     Is it not a blatant conflict of interest for him to close out the Atlanta case while purporting to investigate the Atlanta prosecutors on whose work he depended?

     Reno's man sayeth not. No wonder we hear not a peep of criticism about Clinton from Bush; the former President and his men are being well protected. Congress should pass the Independent Counsel Act and demand it be used in this case.

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August 13, 2011, 10:02:35 AM

Shirley you cant be serious?

If you like my post please feel free to give me some positive rep;u=18639
Tip me BTC: 1FBmoYijXVizfYk25CpiN8Eds9J6YiRDaX
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August 13, 2011, 10:06:29 AM

Shirley you cant be serious?

Don't call me Shirley, and yes I'm serious.

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August 13, 2011, 10:08:35 AM

I think this is why the link to forum was removed from Smiley
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August 13, 2011, 10:09:08 AM

I'm not saying anything against Bitcoin. I think it's the best thing I have encountered in a long long time.
So good, in fact, that it's creation is intelligent and devious and perfect for a CIA operation.

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August 13, 2011, 10:09:54 AM

I think this is why the link to forum was removed from Smiley

Why? Because some people think for themselves?

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August 13, 2011, 10:19:25 AM

More recently published but no currently updated info.

Quixotic Joust (QJ) decided to reprise the Jim Norman interview after reading Cheri Seymour's recently published updated printed version (by TrineDay) of The Last Circle. Cheri posted her original investigative report online under the pseudonym Carol Marshall to protect herself from being "suicided" like Danny Casolaro, who had kept the results of his own findings secret. Those extensive materials he had accumulated and analyzed were forever lost when he died. It was Cheri's intent to retrace Danny's steps until she could put a face (or faces) on the OCTOPUS. It must be our purpose to continue their work. Only by knowing the components of that many-tentacled metaphorical beast, can we ever hope to prevent the head of the national security state from secretly reaching into the slimy depth of lucrative criminal enterprise to feed the vile creature it has become.

Radio Interview of James Norman by Jim Quinn, DJ of WRRK 96.9 FM in Pittsburgh

The following is a Radio Interview between James Norman, a former Senior Editor of Forbes Magazine and now with Media  Bypass Magazine and Jim Quinn, DJ of WRRK 96.9 FM in Pittsburgh. In this interview from December 7th, they discuss issues ofnational importance and STUNNING IMPACT. Essentially they give out the reason for Vincent Foster's Death, and the fact that the "resignations" of the Congress-persons are NOT for policy reasons but because they have been caught with millions in corrupt funds in Swiss Banks. Read this to learn what the "mainstream media" doesn't ever tell you...

Quinn's Interview with Jim Norman

QUINN: Jim Norman, former Senior Editor at Forbes Magazine, and currently writing for Media Bypass Magazine after having  uncovered Caspar Weinberger's Swiss bank account (we do get punished for some of the truths we uncover, do we not?). Jim is on the phone with us this morning. Good Morning, Jim.

NORMAN: Hi, how are you?

QUINN: Pretty good. I want to give people a chance to get an idea of what it is we are going to launch into after 8 o'clock, and I want to give some background into this. Is it fair to say that since Iran-Contra that the government has sort of been involved in the drug business?

NORMAN: Yes, it goes way back before then, actually. It goes back even to the Vietnam War days -- remember the Golden Triangle, Laos, Cambodia and all that, Pakistan and Afghanistan, but it was always on a much smaller scale. What apparently happened was that in the 80s we got into it in a big way, basically nationalizing the wholesale importation of drugs from Central and South America. The idea was that we control it somehow that way; instead, it has just become the tail wagging the dog, I think.

QUINN: It's become the funding source for just about anything that the government covertly wants to do, and for the moneys that various elements of the government don't want to ask the Congress for, nor do they want Congress to know about.

NORMAN: Right. And it's an arms business, too. They are kind of all tied up together.

QUINN: So it's arms and drugs?

NORMAN: Right.

QUINN: Kenneth Starr is currently our Whitewater prosecutor, and I have long said on this show that I find Ken Starr interesting but also troubling in that there are many elements to the Whitewater scandal. Part of the laments have to do with banking and have to do with Madison Savings and Loan, check kiting, stuff that went on with the Arkansas Development Financial Authority, but basically there are really two elements -- there is Whitewater and then there is all the stuff with Mena Airport, Iran-Contra, drugs into the country, various unexplained deaths, one of them Vince Foster, the possibility of espionage on the part of the first lady, and all of this lies behind a brick wall that Mr.
Starr has been positioned upon to make sure that they get Clinton but that the fire doesn't burn past that wall; because on the other side of that wall are Republicans and Democrats. Am I right?

NORMAN: That's right. He is not looking at Mena; he doesn't have the authority to from Janet Reno. He does have authority to look at the Vince Foster death, but I think only inasmuch as it relates to the Whitewater situation. The whole thing is hemmed in and beyond that is this whole national security blanket that has been thrown over big parts of this thing that you couldn't touch if you wanted to.

QUINN: It's interesting, I find, that Dr. Henry Lee, who was part of the defense team for the Simpson trial, has ended up working on the Vince Foster affair. The word that I get is that he is going to say it was indeed a suicide. You have to remember something about Dr. Henry Lee -- he was, oddly enough, the guy that was called in to do some work on the Danny Casolaro death down in Martinsburg, way back in the early nineties. Was it 1991?

NORMAN: I think it was 1991.

QUINN: This was that reporter that you may have heard about that was found dead in a motel room, supposedly from a self-inflicted wound, even though the papers (a year's worth of investigative reporting) were all missing. He was working on the story that he called the "octopus" and basically it's the same story that you are working on, isn't it?

NORMAN: Yes, I know I'm talking to a lot of the same sources. Danny supposedly slashed his wrists twelve times, sometimes deep enough to cut the tendon.

QUINN: Yeah, right. And his files were all missing. Sure, there's a suicide. Right. And they embalmed his body before they even had a chance to inform his parents that he was dead. So it's another "Arkanside."

NORMAN: George Williamson, who is an investigative reporter out of San Francisco, has been working on that. He has come up with all kinds of stuff -- other witnesses that have disappeared, people in the hotel who just aren't there anymore -- disappeared mysteriously.

Conspiracy - The Secret History: The Secret Heartbeat of America, The C.I.A. and DrugsQUINN: It's interesting. There are a lot of people who are witnesses to various deaths involved with this Arkansas crowd, Danny Casolaro for one. Also, the two young boys on the railroad tracks down in Arkansas who stumbled on the drug operation. A lot of the witnesses around that have met violent and untimely deaths as well. So here are a great deal of ugly people involved in this. We are going to get down to what it all means in terms of government corruption and scandal of immense proportions that touch both parties. This is really nonpartisan. The fact that I don't happen to like "President Pantload" doesn't have a whole lot to do with this; he was just sort of a guy who happened to be there with his hand out at the time. It all goes back to the late 70's, right Jim?

[Note from QJ: Remember that Jimmy Carter was elected in 1976. The CIA had just suffered through Watergate and a threatened impeachment trial in 1974, when Nixon resigned and Gerald Ford became the first and only appointed President. Ford then named George H.W. Bush as Director of the C.I.A. Bush begged Carter to reappoint him after his inaguration in January 1977, but Carter declined, choosing  to name Stansfield Turner, who then started to clean house. Bush moved back to Texas and started his plans to campaign for President in 1980. At that time, he began to consolidate a secret cabal of disgruntled intelligence persons removed from the C.I.A. Covert operations took on a whole new meaning and truly did "go rogue." When Bush lost the nomination in 1980 to Ronald Reagan, he already had his covert infrastructure in place to when Reagan unwittingly put his newly elected Vice President in charge of  operations falling within E.O. 12333.]

NORMAN: Yeah, and even before that. Let's start with the early 80s when Bill Casey came into office in the CIA under Ronald Reagan. That's when our government decided to embark on this amazing and extremely unbelievably successful effort to spy on the world's banks. We did it! We have been spying on world banking transactions [see SWIFT "It was founded in Brussels in 1973, supported by 239 banks in 15 countries. It started to establish common standards for financial transactions and a shared data processing system and worldwide communications network. Fundamental operating procedures, rules for liability etc., were established in 1975 and the first message was sent in 1977."] for more than a dozen years. The way we do it is by basically forcing foreign banks, wittingly or unwittingly, to buy bugged software and bugged computers that let our NSA (National Security Agency) which is the intelligence arm of the government, to basically surveil wire transfers all over the globe.

QUINN: Let me ask you this. How do you sucker the rest of the banking community around the globe into buying the software that you are selling?

NORMAN: First of all you sell to front companies like this company Systematics in Arkansas, now called Alltel Information Services. They had another company called Boston Systematics, an affiliate based in Israel mainly. There is Robert Maxwell, the UK publisher, who is fronting this stuff. There are a whole bunch  of people fronting this.

QUINN: Wait a minute, Robert Maxwell -- isn't he dead?

NORMAN: Yeah, he is now.

QUINN: Didn't he have an unfortunate accident?

NORMAN: Fell off his yacht in the Atlantic Ocean somewhere.

QUINN: Why, isn't that amazing!

NORMAN: The tinkering of it was mainly putting back doors, just a few lines of code, that would allow somebody to dial into a computer without leaving any footprints, any audit trail that you were in there. Then you could go around and look around in files or you could collect information from a system without the user even knowing it.

QUINN: Now this software, which was originally called Promis, was stolen from a company called Inslaw by the Justice Department. It ended up somewhere, probably at E-Systems or somewhere, and it was converted into banking software. It started out as software designed to track prosecutorial cases around the country. My question is -- why didn't Ed Meese just  pay the damn bill, and none of this would ever have come to light! Danny Casolaro was chasing the stolen software when he stumbled on what it was being used for. [QJ note: Cheri Seymour, author of The Last Circle, picked up the trail Danny was following the week prior to his death and spent 18 years on her investigation, in which she brought in numerous other dedicated detectives and prosecutors.]

NORMAN: Well, the trouble with it was that they bought it for use in the Justice Department, but they were going to use it all over the place. If they were paying royalties on it, Inslaw would know just how extensive the use was of the software, and they didn't want people to know how extensively it was going to be used.

QUINN: I see...

NORMAN: Plus, a lot of the profits from the resale of this went back into private profits. It was customized and resold to the intelligence community. It became sort of a basic platform database tracking system for most of our intelligence agencies and many of those abroad. The idea was "Well, we can all talk to each other now." In fact what it has allowed us to do is basically rifle through other people's data files abroad too, because the stuff was apparently being sold to foreign intelligence agencies and it was also bugged. We have other ways of basically surveilling and downloading foreign electronic databases. The whole computer world is much more porous and transparent than anybody wants you to believe.

QUINN: There is a bank here that I know that uses this software right here in this town, and I'm sure that there is probably more than one. Everybody's got it.

NORMAN: In some form or another. It goes under different names now. It's been modified many times. I think when Inslaw had it, it was a half million lines of code. I'm told now it's a couple of million lines anyway. It's gone through many, many modifications over the years.

QUINN: This company, Systematics, which is I believe still 8% owned by Jackson Stevens at Stevens Inc., who, by the way, is one of the backers of Bob Dole -- how troubling is that?

NORMAN: He is the co-chairman of Dole's finance committee.

QUINN: That's right! Bob's in town -- Hi Bob -- You'd better explain this. You'd better explain Mena, too, Bob, or it's going to follow you to the White House. Systematics, I understand, had an attorney who was kind of off the record doing work for them, named Vince Foster. Is that true?

NORMAN: Yep, that's true. We've heard that from many, many sources now. In fact, Jim Leach's committee has established that pretty well with some of the investigation that they have done. Foster was a trusted deal guy for Stevens at the law firm. Although Foster never shows up officially as an attorney of record for Systematics, he was definitely in the loop, basically smoothing out things between Systematics and the NSA, which was the main government agency that was contracting for a lot of this stuff.

QUINN: So this is how Foster got involved in intelligence, right.

NORMAN: Yes, because there is heavy duty code and computer technology stuff involved here. Apparently, some time in the early 80s he developed this relationship with the State of Israel. In fact, some of the same handlers I am told were involved in the Jonathan Pollard case. They basically nurtured him and groomed him for many years and then bingo, they hit the jackpot -- he ended up in the White House. Apparently he
convinced Hillary to help him out on some stuff.

QUINN: So... what is Foster involved in? It's the mid 80s...

NORMAN: Mid 80s. Foster is at the Rose Law Firm. Think of him as a high-level marketing guy between Systematics and the NSA. NSA -- they have all these spooky contracts that they are trying to find contractors for. Foster would have been sort of a go-between there. Plus Hillary was actually an attorney of record for Systematics back in 1978 when Stevens tried to take over the Financial General Bank shares in Washington. Those bank holding companies later became First American - Clark Clifford, Robert Altman, all that crowd.

QUINN: Yeah, the BCCI thing.

NORMAN: Stephens was fronting for the BCCI crowd and trying to take over this Washington bank holding company The SEC blocked him at the time, partly because one of the things he was insisting on was that this company Systematics, which at that time was a tiny little thing in Arkansas, he was insisting that they be brought in to do all of the data processing for this multistate bank holding company in Washington. Hillary represented Systematics in that. Now the thing about Systematics at the time -- it was before they even got involved with the bank spying stuff. Abroad for many years, they had been what amounted to a laundromat for covert funds for the CIA and the intelligence community, quite legally, probably. It was done for the national interest. Somebody had to move this money around and Systematics was in a perfect place to do it because they owned the computers and a whole bunch of small banks. They could move this money around electronically without the bankers even knowing about it necessarily, and it wouldn't go through the normal clearing houses. The regulators wouldn't see it. It would just crop up wherever the CIA needed it in whatever bogus front company account, and it was all just bits and bytes; it was a cyberbank -- it still is.

[Note from QJ: An excerpt follows about the Insight article. Of note is that neither Insight nor the Washington Report appears to have mentioned the names of either Sytematics or Jackson Stephens!]

    Washington Report on Middle East Affairs, June 2000, pages 6, 24

    According to the Insight report, the investigation was launched after a local telephone company manager in the U.S. raised suspicions in late 1996 or early 1997 about an employee of Amdocs, an Israeli company that sells billing software for telephone companies. The Israeli employee worked as a subcontractor on a program for telephone billing for the CIA, and is married to an Israeli woman employed in a diplomatic position in the Israeli Embassy in Washington.

    The Insight reporters said it is not clear whether the husband as well as his wife is a Mossad employee, but noted that husband-and-wife assignments abroad by Mossad are common. The American telephone company manager’s suspicions came to the attention of the CIA, the reporters said, which turned the matter over to the FBI. It was an FBI search of the husband’s workplace that discovered in his possession what Waller and Rodriguez called "a list of the FBI’s most sensitive telephone numbers, including the Bureau’s ‘black’ lines that FBI counterintelligence used to keep track of the suspected Israeli spy operation.” In the words of the Insight investigators, “the hunted were tracking the hunters.”

    Wrote Waller and Rodriguez: “More than two dozen U.S. intelligence, counterintelligence, law-enforcement and other officials have told Insight that the FBI believes Israel has intercepted telephone and modem communications on some of the most sensitive lines of the U.S. government on an ongoing basis. The worst penetrations are believed to be in the State Department. But others say the supposedly secure telephone systems in the White House, Defense Department and Justice Department may have been compromised as well. The problem for FBI agents in the famed Division 5, however, isn’t just what they have uncovered, which is substantial, but what they don’t know yet.”

 QUINN: I'm here with Jim Norman, former Senior Editor at Forbes Magazine. You know, it's interesting, here is a guy who was with Forbes Magazine, a respected senior editor who figured probably this would be his life's work. All of a sudden, he finds himself a defrocked commando journalist working for Media Bypass
Magazine out of what? Evanston, Illinois, or somewhere in Indiana?

NORMAN: Indiana.

QUINN: Yeah, that's right. Now, I've got a question. Before we get into Vince Foster in the mid 80s and Hillary Clinton's role in this, how did you get onto this whole scandal? Where did you walk through the door on this?

NORMAN: I came in the back door completely. Look, I had no ax to grind here against Bill Clinton or the Administration. I hated covering politics. I thought it was all baloney. I'm just a business writer, and I never wanted to get enmeshed in this whole Whitewater/Vince Foster thing, but it started ...  for a couple of years I had been following this oil company bankruptcy up in Stamford, Connecticut, because I had covered oil. This thing never made sense to me. There is no reason why this company went bust and, in fact, when I actually got into it and started redoing the oil trading transactions--the reason they lost money:  They weren't losing it; they were hiding it. They were parking it offshore with another company that was financing arms sales to Iraq, cluster bombs and stuff like that all through the 80s. And, this Chilean arms dealer, Cardone, who was providing weapons, was also, it turns out, brokering some of the sales of this stolen software. Okay, that gets me into the software story.

QUINN: So that gets you onto the Promis software, and you and Danny Casolaro are now on the same road.

NORMAN: Right, and then in the process of that, I started talking to a whole bunch of rather spooky, strange intelligence community characters, and I was sitting at a guy's living room down in Kentucky one day. He was sitting there in the middle of the night blowing smoke rings, and he said, "Yo, by the way, Vince Foster, he was under investigation." I said, "Under investigation, for what?" And, he said, "Well, it's spelled 'Espionage.'" BOINK!!... and that's how I got on this whole Vince Foster thing.

QUINN: So that's how it happened?


QUINN: Okay, now here it is, the mid 80s. Vince Foster is working for Systematics, and he is coming into contact with the intelligence community. How did Hillary Clinton and the Israeli Mossad and all of this come together and what happened?

NORMAN: Well, I think that they had been... look the Israelis were key partners with us in this bank spying effort. This is a joint allied government effort, and the Israelis were one of the key front people in this, in selling and supporting this software all over the world, so that people weren't thinking they were getting the software directly from the U.S. You know, there was an Israeli front company used to sell this stuff to foreign banks.

QUINN: Well, they sold it to the Moscow bank. I know that.

NORMAN: Well, Systematics did, yeah, and Systematics got involved in supporting this stuff all over the world, a little company in Arkansas... Go figure. Come on.

QUINN: Yeah, really.

NORMAN: I mean, main software people, they operate in New York and places like that and not out of Podunk, Arkansas. So, at any rate, the Israelis had ties into this whole thing all along, and, you know, they are our friends. We do give them a lot of stuff and share a lot of stuff.

QUINN: Well, the whole idea was to track terrorist money, and the Israelis have a great interest in that, and rightly so. There is no problem here.

NORMAN: The name of this problem was "follow the money for terrorist reasons," but once you set that up, you can do all kinds of stuff with it. I mean, we were spying on everybody's money. I think that's probably how we helped bust the Soviet Union. We found out just how deep their pockets were, where their money was, who we could bribe. You know, acting as a financial destruction of their society more than anything.

QUINN: So, how does Foster get involved in espionage?

NORMAN: Well, I think it was money. Money, money, money. And, especially you know with this whole political thing, it takes so much money to run for office. I mean, my theory is that the actual spending is probably twice of what anybody declares when you add up all of the soft dollars and everything. I think there is a tremendous need for money there, and they just weren't real cautious about where it was coming from. I think this thing about selling state secrets to the Israelis and other countries was just a business. It was just for money. I don't think there was any ideology involved here at all, and it was one of many businesses. There is also insider trading going on here. There was the kickback on drugs and arms stuff and so the money has to go... you have to hide it some way, so it goes into Swiss bank accounts. And Foster would have known that, yeah, we're tracking this money off shore, but there is such a blizzard of information that unless somebody knows exactly what they are looking for they would never find anything. They thought they could cover this up pretty well so Foster had... actually he had several accounts, and there was one in particular in this bank, bank at Villa Switsaria Italiano in Chaso on the Italian border. It is a little kind of a Mafia kind of community there reputed, and so he was taking the money in there for the payments from the Swiss. He was going to Geneva every six or eight months, and his curious one-day trips --I don't think it was for sightseeing.

QUINN: No. I'm sure he wasn't doing any real estate work for Arkansas.

NORMAN: No. The whole thing about money laundering is ... you know the money would go into a Swiss bank. Somebody would have to go physically and take it out and take it to a friendly bonded dealer or something like that, buy bearer bonds or other kinds of bonds or something that you could pledge as collateral for loans back in the states and turn it back into cash again legitimately, and so that is how money laundering works. Vince, in effect, was a bag man here because when they go to the White House all of a sudden they hit the jackpot. There was so much more goodies there, and, in fact, Deborah Gorham, Foster's executive assistant, testified under oath that Foster had given her two, inch-thick ring binders from the National Security Agency to put in Bernie Nussbaum's safe in the White House. What were these binders? Well, I have talked to brokering experts on this stuff, and they say, "Look, when you are talking NSA binders in the White House, you are talking mainly one thing, and these are the codes and protocols by which the President authenticates himself when he has to call up the Pentagon to say 'let's go nuke somebody'." Now, what was Foster doing with these things? He had no business with them. He would have had no access to them. It would have to come from somebody with access to the Oval Office or the Presidential living quarters.

QUINN: And, who would that be?

NORMAN: Well, I think we know who we are talking about here.

QUINN: We're talking about Hillary Clinton, aren't we?

NORMAN: That's right. She has been under investigation in this whole thing, too, but I think that they had a strong case against Vince and not such a strong case against Hillary. But, you see what happened was, and this is another whole part of the story as to how they got onto Foster. Basically, there was a team of computer hackers and computer intelligence guys in the CIA who were going through most databases. They found names there that they identified as being Foster and Hillary. They put them under surveillance actually before they went to the White House. I think it was between the election and the time that they went to the White House, and that's when the alarm bells went off. They had been surveilling these accounts for a while, and when Foster on July 1, 1993, bought a ticket to Geneva, a round-trip one-day ticket to Geneva, these guys said, "Oops, he's going to take the money. We're going to beat him to it." And, they went in. They hacked their way into the bank and obtained the necessary authorization codes on this coded account for which no signature is required to withdraw money, by the way.

QUINN: Right.

NORMAN: They were able to effect their own technically legitimate wire transfer of this money back to the U.S. Treasury, where it sits in a holding account escrowed for use by the CIA.

QUINN: So, the CIA empties Vince Foster's Swiss bank account of its ill-gotten money.

NORMAN: Yeah, actually it wasn't the CIA. It was this sort of renegade vigilante group of guys they called the Fifth Column that has been out doing this stuff. They don't take any of the money for themselves. The money goes to the...

QUINN: They just do it for fun?

NORMAN: The CIA only gets the money. It is escrowed for use by the CIA but only when the CIA gets rid of a bunch of its bad apples there who've got dirty hands from drug kickbacks, arms.

QUINN: Let's pick this story up. There was a meeting just before Vince Foster died on the eastern shore of Maryland in which Webster Hubbell, Vince Foster, and some others were present. Okay, this was just before Foster died. Pick up the story here.

NORMAN: All right. Well, we mentioned July 1, 1993. Foster buys this round-trip ticket to Switzerland. They raid his account. They take out $2.73 million. Foster apparently calls up the bank to let them know he was coming. They say, "Oh, Vince don't you know you took the money out already?" Boing... that's when he found out he was under investigation. That's when he got so mysteriously depressed. It had nothing to do with editorials in the Wall Street Journal. He had his bank account raided big time, and he knew he was under surveillance, or he knew he was under investigation. And, that started this curious chain of events. Webster Hubbell testified that not so much Vince was depressed, but he was worried. He was afraid to use the White House telephones. The guy had heart palpitations. He couldn't sleep at night. His doctor gave him a prescription for sleeping pills. His sister tried to get him to talk to some psychiatrist. He never got in touch with them. Instead, he hired a high-powered lawyer in Washington, Jim Hamilton, this big deal white-collar crime fix-it guy who handles people who get hauled up for Congressional hearings.

And, then there is this curious meeting the weekend before Foster died. He and his wife, Lisa, go down to the eastern shore of Maryland for a getaway weekend, and then, by coincidence, they meet Hubbell and his wife down there. Hubbell, also from the Rose Law Firm, at the time the country's de-facto top law enforcement law officer because Janet Reno in effect was taking her orders from Hubbell. They go over to the estate of Michael Cardozo, who is the son-in-law of Nathan Landau, a big deal Democratic fund-raiser, and Cardozo is also the head of Clinton's legal defense fund. Supposedly, this was all poolside chit chat. Baloney, it was damage control. They were trying to figure out how to contain this scandal from spreading to other people in the White House, and they were trying to lean on Vince to get him to, you know, cop a plea, go quietly, or shut up and don't talk about it. And, in fact, what my sources have told me is that there was actually a huge payment made to an account held by Lisa Foster, with more than $286,000, on the Friday before that meeting.

QUINN: Wait a minute, on the Friday before that meeting, Lisa Foster's bank account gets a deposit of $286 million?

NORMAN: $286 thousand, yeah.

QUINN: I'm sorry, yeah, $286,000. Okay, so does she take it out?

NORMAN: Well, I don't know what ever happened to that money. It is hard to tell where it came from even. It is all very mysterious to me, but it sure smells like hush money to me. It's like, "Look Vince, don't worry, we'll take care of your money."

QUINN: You don't know if she wrote a check on it?

NORMAN: Well, I'm told that it came through the hands somehow of  Sheila Anthony, who was Foster's sister, and at the time she was a "congressional liaison" person at the Justice Department, whatever a congressional liaison is.

QUINN: So she takes the money to Foster, and Foster turns it down?

NORMAN: Well, no... I think he probably accepted it, or it went there. But, apparently, he was having second thoughts, I think. You know, on the Monday after they came back from this meeting, the records showed, the public records showed, that he has a parade of people coming by his office in the White House saying, "Hey, how'd your weekend go, Vince? You cool with this? I mean, you on board with all of this? Everything okay?" you know. Then,...

QUINN: A lot of very nervous people in the White House.

NORMAN: That's right. Then, the day he died he had like a two-hour meeting with another person from the Arkansas contingent there. I think the problem was that they were afraid that Vince was going to talk or that he was going to crack under questioning, and here's a guy who was now, at this point, under intense surveillance. I mean, he had not only CIA counter intelligence people, but you had NSA. You had FBI surveilling him. There was a four-person IRS team we know was assigned to tail this guy, probably in connection with the money laundering aspect of the Swiss bank account.

QUINN: God, this thing's got everything but floats in the... I mean all they need is Goofy, a big balloon with ropes on it following this guy around.

NORMAN: You almost did. I mean, you had the Secret Service with a bomb-sniffing dog squad out there checking his car in the parking lot. The video tapes of that, gone. The video tapes of the room where they are stored, gone. I mean, this whole thing is massively covered up, and I guess it is for national security reasons.

QUINN: Well now, I understand that Foster had a meeting scheduled with Bill Clinton. I believe it was on a Wednesday.

NORMAN: Right.

QUINN: And, it was the Tuesday he was killed.

NORMAN: Right. Exactly. The question is well, gee, was he going to drop something in the President's lap and blow the plausible deniability that he might have on this stuff.

QUINN: Well, this Foster suicide thing is so sloppy. It leads me to believe that on Tuesday they thought he would take the money and shut up, and he didn't take it so they had to do something real quick.

NORMAN: Well, that could be it or that even if he wanted to shut up maybe they were afraid he would crack under interrogation or something. You know, it is just somebody wanted him real dead, and there is a bunch of people who had ample reason for it. This was not suicide. It was not over depression. This was a political assassination carried out on U.S. soil by a foreign government. The Israelis were involved in this. There was apparently a three-person Mossad-contracted team that went into the apartment that Foster had gone to that afternoon where he was apparently lured by a female person from the White House staff who I think still works in the White House.

QUINN: Now, who would that be?

NORMAN: Well, I...

QUINN: Because, he had sex with her?

NORMAN: That's the impression, yeah.

QUINN: I mean, there was semen on his shorts. There was brownish-blonde hair on his clothing and rug fibers all over him which may or may not have had to do with having sex on the floor. It might have been...

NORMAN: No, I think that was because he was rolled up in a rug afterwards and taken over to Fort Marcy Park. Now, the question is, were elements of our intelligence community involved in helping to dispose of the body and cover it up some way?

QUINN: Who is the woman in the White House?

NORMAN: I can't say.

QUINN: Patsy Thomason?

NORMAN: No. I don't want to say. I suspect...

QUINN: Dee Dee. Well, she's not there anymore.

NORMAN: That name is known. I mean, she has been identified on these tapes apparently, but....

QUINN: I think Dee Dee and Bill are doing it, but that's just me. Anyway, let's get back to the story here. Okay, so I understand at least you are claiming that there is a videotape of Foster's murder?

NORMAN: Well, of the people entering and leaving this apartment a few blocks from the White House where it apparently occurred.

QUINN: Has anybody located this apartment? Do you know where it is?

NORMAN: I don't know exactly where it is myself. I am told it is actually within a few blocks of the White House.

QUINN: Okay, so they lure him here, and they pop him, and there is a videotape of it or there is a videotape of the people going in and out. Then, they go to Fort Marcy Park, and they dump him.

NORMAN: Right.

QUINN: Okay, and we've got a witness now that says they saw the two guys that fit the same description that Patrick Knowlton, the other witness, to Foster's car. He describes the one guy that threatens him. One of those people is one of the two that supposedly was walking Foster, who looked drunk to this guy, into the park, but he says that they laid him out.

NORMAN: Yeah. I don't know too much about all that stuff, but what I know is this, that Paul Rodriguez is the Editor of Insight Magazine, that came up with this Mr. X source. When Forbes decided not to run the story for reasons that were kind of mysterious to me at the time, and while I was still there, they gave me permission to publish it elsewhere. And, as I approached Insight, because they are kind of a gutsy magazine, David Rodriguez made a whole bunch of calls around Washington trying to corroborate this stuff, and I think he was making some headway. Then, he gets this visit in person from some military intelligence guy from the Pentagon who comes to him and says, "Paul, lay off this story. You don't know what you're dealing with here."

QUINN: No. I think we do know what we are dealing with here. We're dealing with the biggest scandal since maybe...

NORMAN: And, you've got Israeli relations at stake here. You know, the intelligence community has a lot of joint ventures with the Israelis. They don't want to "queer" those things. I mean, we do business with those people a lot, and you know a lot of it is probably quite necessary, but you know there is a scandal here that dwarfs the Jonathan Pollard case by orders of magnitude really.

QUINN: I want to discuss a couple of things with you. First of all, now it would appear that a bunch of Republicans picking Kenneth Starr to put him in charge of this investigation of Vince Foster and the Whitewater problem in Washington, D.C. On the surface, it looked like they were going for the jugular, but see, Mr. Starr has some background that leads back to the Inslaw case we discussed earlier in the show about the Promis software and stuff. He recused himself from that litigation.

NORMAN: And, the reason was because he was the inside counsel for  William French Smith at the Justice Department in 1982 at the time that the Inslaw software was expropriated by the government...

QUINN: Okay. So he really is not in the position to be the pit bull to expose this. He is in a better position to get Clinton on whatever Republicans need to get him on and make sure that Republicans don't get burned here.

NORMAN: I think that's it. Yeah.

QUINN: Okay, now. Given that that's the case and given that the Washington inside-the-beltway crowd on both sides of the aisle are trying to make sure that the fix is in on this, how do you think or what leads you to believe that this is going to come out, and through what channels?

NORMAN: Well, again, it goes back to resources of mine. Basically, there are a few good guys in the intelligence community, particularly this handful of people in the so-called Fifth Column, who are so incensed about this bipartisan coverup, the government's inability and unwillingness to deal with the high level corruption here, they've just decided to take things into their own hands. They never had government authorization to go raid the foreign bank accounts, but....

QUINN: How many accounts are there? How many people in the government right now have Swiss bank accounts filled with money from BCCI, drug laundering, defense kickbacks, arms trades, I mean all of this nonsense?

NORMAN: Not as many as two years ago. These guys have been out raiding these accounts. They've pulled back $2.5 billion, more than $2.5 billion with a "B" dollars from 300, 400, 500 of these accounts. There is probably 3,000 coded Swiss and other foreign bank accounts that they have been rifling through the computers on.

QUINN: How can there be this many of them and it doesn't come out?

NORMAN: It is because it is endemic corruption. The government is corrupt. Why should we give the President of South Korea $600 million? ... country more powerful, more worth corrupting, more venal and with weaker controls for policing this stuff.

QUINN: Well, because we don't believe it can happen here.

NORMAN: That's right. We're Americans. Well, this is greed and money. But, there is....

QUINN: Well, it's murder too.

NORMAN: That's right, and there have been hundreds of these accounts already raided, and nobody, NOBODY has been able to stand up and say, "I was robbed." Why? Because, the money came from exactly what you said -- kickbacks on drugs, kickbacks on arms, insider trading, and they never paid any taxes on this stuff. They've never disclosed it, and the minimum sentence for willful tax evasion is ten years, that's the minimum. So, what you have going on right now in Congress is basically, there is an Angel of Death. Actually, there are two I'm told. There is one on the Democratic side and one on the Republican side.

QUINN: Now, do they make their rounds together?

NORMAN: No. It's separately. What I'm told is that the people in Congress with these Swiss bank accounts, who have had these accounts, if they haven't already left, if they haven't had the good sense to already get their butts out of there, they have been delivered, hand delivered a brown paper envelope with transaction records of their Swiss bank accounts, and within a day or so they get a visit from this Angel of Death who says it's time for you to go, time to do some career planning, you're out of here, we don't want you in the government when the stuff hits the fan here, as it's gonna do in the spring apparently. The records are going to start coming out. It's going to be obvious. These vigilantes are just going to take this situation into their own hands and release this stuff, I'm convinced.

QUINN: These people are real patriots. They could end up dead doing this.

NORMAN: Some of them may already have. I think... but they've planned this quite well. I think they've got it down now. They know that if anything happens to them, that the stuff would just come out in a gush, so it would be counterproductive for....

QUINN: Yeah, but I mean is it going to come out in the mainstream media. You've got the Mena story being spiked a year ago by Katherine Graham at the Washington Post, and I've uncov... you, what I stumbled on a memo from Paul Keiser yesterday from the editor at the Washington Post who writes me in this memo a flat out blatant lie. He says that the authors of the Mena story, that was supposed to run January 26, 1995, in the Washington Post Outlook Section, had withdrawn the article before the Washington Post had decided to run it, and that's just a flat out lie.

NORMAN: Well, it's technically probably true. But, what they've done, they've left those people dangling by a thread for like 6-8 months. I don't blame them for taking the story elsewhere as the....

QUINN: Yeah, but no, but Jim they didn't. The type galleys had been laid, and the artwork had been done. It was supposed... they didn't pull it until the Thursday before the Sunday it was supposed to run.

NORMAN: Right. Well, technically the Post can say, "Oh, we never quieted you..." That's what they told me at Forbes, too, about my story. Finally, I never got a good reason why my story didn't run at Forbes. Ultimately, they said, "Oh, we didn't trust your sources." But, actually what my immediate supervisor said, "We can't say this about Systematics," which was a big advertiser at Forbes, and we can't say this about the Israelis.

QUINN: Yeah, right.

NORMAN: That's why didn't run in Forbes.

QUINN: Well, there's actually no proof that Systematics has deliberately delivered stolen software. I mean, they may not even know that the software was stolen, and it may be another version of it.

NORMAN: Systematics is under heavy duty investigation, though, right now for money laundering, because once you set up a system for laundering covert funds for the government, who knows what else you can piggyback on top of that. The suspicion is that this was the quid pro quo here in return for laundering, supposedly, call it legitimate funds that the intelligence community can piggyback other stuff to.

QUINN: Let's get back to the Angel of Death here and the resignations in Congress, which have been pretty much attributed by guys like Rush Limbaugh to the fact that Democrats just don't like being in the minority anymore, and they don't have the guts or stamina to stick it out the way the Republicans did for 40 years. And, some of that may be true, but how many of these people who have said that they are pulling their hats out of the ring... And, now we have two Republicans... How many of these people have been visited by this so-called Angel of Death? All of them?

NORMAN: Well, the figures I've heard is that I think there's like 25 or 26 so far since the last election who have decided they are not going to run again or had actually resigned and out of there, like Norman Minetta from Los Angeles[sic]. Of those, I'm told about 21 or 22 so far can be directly attributed to Swiss bank account problems. There is probably another dozen or so that are going to go that way. Again, there is an argument that, "Oh, we just can't stand the nasty politics in Washington anymore." Come on, give me a break.

QUINN: Well, I like Patsy Schroeder. She wanted us to believe that now that the Democratic party is in such good shape she can leave it and it doesn't... did you see that?

NORMAN: No....

QUINN: That was great. Oh yeah, now that....

NORMAN: Patsy Schroeder, somebody noted on the Internet that at the news conference where she was announcing she wasn't going to run, there had already been re-elect Schroeder bumper stickers printed up. I mean, she... take this guy Ron Coleman from Texas, a Congressman down there. He made his announcement at his supposed re-election campaign kickoff party.

QUINN: You're kidding? This is right out of a... this is a movie.

NORMAN: That's right. Listen, these people have been confronted. They've been given 24 hours basically to clean out their desks. That's what it amounts to.

QUINN: So, they're gonna try and get all these people out who have Swiss bank accounts before it hits the fan. Now, when do you suppose that this is going to happen? Can you give us a timetable?

NORMAN: Well, that's happening in tiers. I mean, we've already seen a bunch of departures. I think that the early spring is the timetable. You know, Wall Street is going to get hit with this stuff too. Now, every year in the spring, soon after the first of the year, after these guys collect their year-end bonuses, you have a big exodus. But, I'm told Wall Street is going to get hit with this big time this year because those guys were in it too. You gotta remember, there was so much money sloshing around here...

QUINN: Yeah, really.

NORMAN: ... from arms deals. You could not launder all of that money without the knowing, willing cooperation and participation of major banks, major brokerage houses, and...

QUINN: Goldman Sachs possibly?

NORMAN: Oh yeah. Look, Goldman...

QUINN: I always found it strange that Robert Rubin showed up when he did.

NORMAN: This Goldman, they were the chief investment bankers to Robert Maxwell in the U.K., helped Maxwell loot a half a billion dollars out of his pension funds, and it now costs a huge amount of money for a settlement there.

QUINN: It sounds like somebody's calling you.

NORMAN: They still have the bond for ADFA, the Arkansas Development...

QUINN: Whoa, hold on a second. What's that?

NORMAN: That's another one of these...

QUINN: Well no, I know what it is. You're telling me that Goldman Sachs was holding the bonds for the Arkansas Development?

NORMAN: No, they were the underwriter on a bunch of these $8 billion or so of bonds that ADFA marketed to who knows whom.

QUINN: Oh man. You know, I have transactions on my desk at home, $80 million of money transfers to the Fuji Bank in the Cayman Islands from ADFA, the Arkansas Development Financial Authority, who I believe never had more than $8 million to begin with. I mean, where did they get $80 million, and what's it going to the Fuji Bank for? The interest rate? Come on, the Switzerland of the Caribbean. Jim, I gotta let you go. I gotta wrap this up here, but I want to thank you for joining us this morning.

NORMAN: It's a pleasure. I'll keep you posted as more develops. There's going to be more coming down the pike here soon.

QUINN: Well, I'll tell you what. I'm gonna call you later on today. I'll give you my home number. Let's stay in touch because if what you say is true and if there are truly some patriots in the intelligence community who are finally going to blow the whistle on this. By the way, all of these resignations and the Angel of Death and all of this, I think is evidence that these people know that this is inevitable that this is going to come out.

NORMAN: It's like AIDS. I think there are a bunch of people back before the last election who realized they, in fact, have slept with the wrong woman or person, and they did not run again, but there has been denial, denial, denial by a bunch of these people. Finally, I think it's like the Angel of Death is finally coming around saying, "You gotta go. Bye. You're outta here."

***** CREDITS*******

If you are a talk show host and want to contact either one of these guys for an interview you can reach James Norman at MEDIA BYPASS MAGAZINE, 1-800-4-BYPASS

Jim Quinn can be contacted at WRRK, 7 Parkway Center, Suite 780, Pittsburgh, PA 15220, Fax Number 412-928-9290, Internet address is homepage at or Compuserve 72662,3507.


Publications of the Center for Security Policy                           
No. 00-D 43
7 May 2000

Clinton Legacy Watch # 48:

Nation Will Pay Dearly for Systematic Malfeasance

 Concerning Basic Security Procedures

Insight Magazine Reveals Alarming Compromise of Official Phone Systems

(Washington, D.C.): In an explosive article published Friday, Insight Magazine's J. Michael

Waller and Paul M. Rodriguez reveal a "foreign espionage operation that could dwarf the

other spy scandals plaguing the U.S. government"-- an operation involving the apparent,

wholesale penetration by Israeli intelligence of secure telephone lines and networks serving

the White House, State and Defense Departments and FBI, among other agencies.

Unfortunately, if Insight's characterization of the scope of this sophisticated act of espionage

is confirmed, it will be just the latest evidence that the Clinton-Gore administration is

bequeathing to its successor a legacy of indifference to basic security procedures whose

terrible costs may not be fully understood for years to come.

Highlights of the 'Phonegate' Revelations

The following are among the most important portions of the 15,000-word article published

on Insight's web site on 5 May (an event immediately followed by the crash of its host site,; the likelihood that this was coincidental seems very remote in light of the fact

that TownHall's webmaster discovered shortly thereafter that this password had been

changed, denying him access needed to find and fix the problem):

    More than two dozen U.S. intelligence, counterintelligence, law-enforcement and other officials have told Insight that the FBI believes Israel has intercepted telephone and modem communications on some of the most sensitive lines of the U.S. government on an ongoing basis. The worst penetrations are believed to be in the State Department.

    But others say the supposedly secure telephone systems in the White House, Defense Department and Justice Department may have been compromised as well. The problem for FBI agents in the famed [counterintelligence] Division 5, however, isn't just what they have uncovered, which is substantial, but what they don't yet know, according to Insight's sources interviewed during a year-long investigation by the magazine.

    Of special concern is how to confirm and deal with the potentially sweeping espionage penetration of key U.S. government telecommunications systems allowing foreign eavesdropping on calls to and from the White House, the National Security Council, or NSC, the Pentagon and the State Department.

    The Israeli Connection

    For nearly a year, FBI agents had been tracking an Israeli businessman working for a local phone company. The man's wife is alleged to be a Mossad officer under diplomatic cover at the Israeli Embassy in Washington. Mossad -- the Israeli intelligence service -- is known to station husband-and-wife teams abroad, but it was not known whether the husband is a full-fledged officer, an agent or something else. When federal agents made a search of his work area they found a list of the FBI's most sensitive telephone numbers, including the Bureau's "black" lines used for wiretapping. Some of the listed numbers were lines that FBI counterintelligence used to keep track of the suspected Israeli spy operation. The hunted were tracking the hunters.

    Seasoned counterintelligence veterans are not surprised.

    "The Israelis conduct intelligence as if they are at war. That's something we have to realize," says David Major, a retired FBI supervisory special agent and former director of counterintelligence at the NSC. While the U.S. approach to intelligence is much more relaxed, says Major, the very existence of Israel is threatened and it regards itself as is in a permanent state of war.

    "There are a lot less handcuffs on intelligence for a nation that sees itself at war," Major observes, but "that doesn't excuse it from our perspective."

    'Mission Possible'

    As for how this may have been done technologically, the FBI believes it has uncovered a means using telephone-company equipment at remote sites to track calls placed to or received from high-ranking government officials, possibly including the President himself, according to Insight's top-level sources. One of the methods suspected is use of a private company that provides record-keeping software and support services for major telephone utilities in the United States. [QJ: This appears to have have been referring to Systematics in Arkansas.]

    U.S. officials believe that an Israeli penetration of that telephone utility in the Washington area was coordinated with a penetration of agents using another telephone support-services company to target select telephone lines.

    Suspected penetration includes lines and systems at the White House and NSC, where it is believed that about four specific phones were monitored -- either directly or through remote sites that may involve numbers dialed from the complex.

    "[The FBI] uncovered what appears to be a sophisticated means to listen in on conversations from remote telephone sites with capabilities of providing real- time audio feeds directly to Tel Aviv," says a U.S. official familiar with the FBI investigation. Details of how this could have been pulled off are highly guarded. However, a high-level U.S. intelligence source tells Insight: "The access had to be done in such a way as to evade our countermeasures....That's what's most disconcerting."

    Another senior U.S. intelligence source adds: "How long this has been going on is something we don't know. How many phones or telephone systems we don't know either, but the best guess is that it's no more than 24 at a far as we can tell."

    And has President Clinton been briefed? "Yes, he has. After all, he's had meetings with his Israeli counterparts," says a senior U.S. official with direct knowledge.

    Smoking Guns

    Insight was provided access to virtually every telephone number within the White House, including those used by outside agencies with employees in the complex, and even the types of computers used and who uses them. Just by way of illustration, this information allowed direct access to communications instruments located in the Oval Office, the residence, bathrooms and grounds.

    With such information, according to security and intelligence experts, a hacker or spy could target individual telephone lines and write software codes enabling the conversations to be forwarded in real-time for remote recording and transcribing.

    The White House complex contains approximately 5,800 voice, fax and modem lines. "Having a phone number in and of itself will not necessarily gain you access for monitoring purposes," Insight was told by a senior intelligence official with regular contact at the White House. "The systems are designed to electronically mask routes and generate secure connections."

    That said, coupling a known phone number to routing sequences and trunk lines would pose a security risk, this official says. Add to that detailed knowledge of computer codes used to move call traffic and your hacker or spy is in a very strong position.

    Shown a sampling of the hoard of data collected over just a few months of digging, the security official's face went flush: "How the hell did you get that! This is what we are supposed to guard against. This is not supposed to be public."

    Insight not only was provided secure current phone numbers to the most sensitive lines in the world, but it discovered a remote telephone site in the Washington area which plugs into the White House telecommunications system.

    Given national-security concerns, Insight has been asked not to divulge any telephone number, location of high-security equipment, or similar data not directly necessary for this news story. Concerning the remote telecommunications site, Insight discovered not only its location and access telephone numbers but other information, including the existence of a secret "back door" to the computer system that had been left open for upward of two years without anyone knowing about the security lapse.

    This back door, common to large computer systems, is used for a variety of services, including those involving technicians, supervisors, contractors and security officers to run diagnostic checks, make repairs and review system operations.

    "This is more than just a technical blunder," says a well-placed source with detailed knowledge of White House security issues. "This is a very serious security failure with unimaginable consequences. Anyone could have accessed that [back door] and gotten into the entire White House phone system and obtained numbers and passwords that we never could track," the source said, echoing yet another source familiar with the issue.

    Be Wary of the Denials

    At 1:10 a.m. Saturday, the Associated Press ran a wire story declaring:

    The FBI has all but closed an extensive investigation into allegations that Israeli spies penetrated the White House and other government telephone systems, finding no evidence of a breach, a senior federal law enforcement official said. This official and another senior law enforcement official said Friday that more than a year of investigation failed to substantiate the allegations and that the FBI identified no one to arrest. Both spoke on condition of anonymity.

    There was extensive investigation, and there are just no facts to support the allegation," one of the officials said. This official said the investigation had "100 percent complete support from the Justice Department and every other government agency" that would be needed to check such an allegation. The probe is technically not closed, this official said. But it was described as being in the "pending inactive state because the allegation is so serious and in case something develops."

    At the White House, a senior official said the White House had no indication that its phone system was compromised. One explanation for the disconnect between the detailed and seemingly well substantiated revelations of the Insight article and the disavowal offered by an unnamed "senior law enforcement official" is that the latter was not one of the very few individuals "read-in" on this highly sensitive counter-intelligence operation. If so, he like many other normally reliable sources in the relevant agencies may unwittingly be erring when they claim there is no fire amidst all this smoke.

    Another factor may be the sheer mortification federal counter-intelligence officials understandably feel about having to acknowledge that their own "black" numbers, used to monitor foreign intelligence operatives, were among the phone lines believed to have been compromised.

The Bottom Line

Clearly, the relevant congressional committees must immediately turn to the task of establishing the facts amidst these allegations and begin what will likely prove to be a very difficult and time-consuming job of assessing the damage. This inquiry must not be thwarted, slowed or otherwise compromised, however, because the alleged perpetrator is the intelligence service of one of the United States' most important and valued allies, Israel. The fact is that even friendly countries spy upon each other.

As an organization with a record of strong support for the Jewish State, the Center for Security Policy hopes that the U.S. government has at least as thorough an awareness of the workings of the Israeli government as the latter appears to have of ours. The obligation to prevent espionage against this nation wherever possible -- whether by allies or potential adversaries -- and, where it has occurred, to mitigate its harmful effects, demands that a no-holds-barred examination be conducted into the reported penetration of sensitive communications systems.

In particular, this inquiry cannot be impinged upon by considerations such as the Clinton-Gore Administration's hope to secure untold billions in additional foreign aid and military assistance for Israel as a lubricant for its concessions in the so-called "peace process."

Congress must also take on a larger task, however. In the remaining months of this session, the legislative branch owes the American people as full as possible an accounting of the cumulative damage done to U.S. national s

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August 13, 2011, 12:36:51 PM

I seriously think that bitcoin was created by the CIA. It's very possible. Not necessarily for nefarious purposes but possibly to undermine their bankster masters, and use it for untraceable revolution and black ops projects.

Unlikely. They'd be pissing in the soup to give an incorruptible currency method to the peasants like us. Also, they HAVE an untraceable funding method called the US $100 bill.

One thing we know for sure, the CIA are Cryptographic masters. Some of the brightest and best in the world.

You're thinking of the NSA, but, nice try.

I should also reiterate the fact that the CIA is not all bad, either. There are some really good people in there that do care.

They are just surrounded by many bad folks.

True, but keep in mind that the CIA is fighting in a ring where there are no rules at all. Can't be a nice guy for long in there.

I'm, not criticising, but I cannot agree that the CIA made Bitcoin. It's too much of a game changer.

Annona ad! Please keep in mind that there is nothing wrong with Bitcoin itself. All it's scandals are caused by wonky websites and sleazy people exploiting it. The light attracts bugs.

When all this bullshit drys up and blows away, Bitcoin will be stronger than ever.
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August 13, 2011, 04:13:01 PM


1. smoking weed and discussion of politics/economics don't go well together.

2. bitrebel you should start most of your 'thought' threads in appropriate politics or speculation sub-forums

just my .02 btcs
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August 13, 2011, 04:22:18 PM

Nobody has publicly stated they personally know who Satoshi is or anything about him/her.

Therefore, Satoshi must be the CIA.

Makes perfect sense.

Just kidding, it's stupid.

Also, just for the record, if you're speculating about the CIA you don't necessarily need all the New World Order conspiracy bullshit. The CIA probably has a legitimate need for psuedoanonymous currencies (that can't be easily counterfeit like the US$100 bill), no reason to stick in chaotic and probably imaginary entities. Occams razor and stuff.

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August 13, 2011, 04:53:47 PM

So they invite Mr Anderson to spooksville 2 months ago to give a lecture/presentation to them so they can make it seem like they aren't involved?

Seems likely they would do it that way, that's why they didn't!
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August 13, 2011, 08:36:03 PM


1. smoking weed and discussion of politics/economics don't go well together.

2. bitrebel you should start most of your 'thought' threads in appropriate politics or speculation sub-forums

just my .02 btcs

Thanks Serge, I always appreciate your comments.

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August 13, 2011, 08:37:31 PM

So they invite Mr Anderson to spooksville 2 months ago to give a lecture/presentation to them so they can make it seem like they aren't involved?

Seems likely they would do it that way, that's why they didn't!

When I heard the CIA wanted to talk with someone about bitcoins, I knew from that moment it was a ruse. The CIA knew about bitcoins long before that interview. It's their job. And it's their job to deceive.

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August 13, 2011, 09:38:43 PM


I'm not trying to discourage you from spreading information when it is important, but is there ANY hard evidence that the CIA, NSA, FBI, or anything other than a few part time workers at NASA would ever be interested in Bitcoins other than to regulate them to make money and keep law breakers at bay?

Do you have any knowledge of the current political climate that would give you insight as to how Bitcoin could be used as a seed to create new laws against computer based financial transactions in order to achieve some government benefit down the road? Is there anything other than baseless speculations and walls of text?

I am not saying at all that the NSA couldn't create Bitcoin even better than Satoshi did, but you need to find a solid motive. How would making it even easier to trade funds illegally benefit them in the slightest, unless as I said, it was just to bait the world for a new computer and financial protection law like they've done for drugs, wars, etc?

Hi Matthew,
   I have no reason to believe they created it, other than the fact that I am suspicious by nature, especially of things too good to be true. It's not that bitcoin is "too good to be true", it's just that it's so perfect and awesome in so many ways, it just seems to have been created by higher intelligences, and I don't think it would have been done by someone or any group active in the CIA at this time, but rather retired cryptographers, rogue factions or a revolutionary cell. Could be NSA, of course. It's purely speculation based on knowledge of what goes on the world, not much else.

I find it very peculiar that the founder is completely anonymous.
I do not rule it out, and I would lean in the direction of that belief. That is until It can be shown or proven otherwise.

   I do not think they did it to crack down on alternative currencies though, or implement new financial controls. I think they would do it to keep their own projects off the books. Like a hyper rogue faction.

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