Tuesday, February 14, 2012

Jim Norman on Mossad Role in Inslaw Theft

Danny Casolaro
Quixotic Joust 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
     © 1993 by MEDIA BYPASS MAGAZINE      

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 of national 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...

Jim 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.
(from left to right) Secretary of State Alexander Haig, National Security Adviser Richard Allen, President Reagan, Deputy Secretary of State William Clark, Chief of Staff James Baker III and Secretary of Defense Caspar Weinberger. 5/28/81. photo: Ronald Reagan Presidential Library

Arms and Drugs -- Government's Funding Source for Covert Ops?

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.

QUINN: 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?

Forcing Banks to Buy Bugged Software

[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 soon would name George H.W. Bush as Director of the C.I.A. Bush begged Carter to reappoint him after his inauguration 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 for Reagan, who wittingly or 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 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.
[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."]
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?

Cell Phone Mergers Begin

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.

Jackson Stephens

QUINN: This company, Systematics, which is I believe still 8% owned by Jackson Stephens at Stephens 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?

Vince Foster, Attorney for Systematics

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 Stephens 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.

BCCI and Stephens, Inc.

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 multi-state 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?

Oil Company Gone Bust Actually Hiding Money

Carlos Cardoen
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, Cardoen, 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.

Jim Norman's discovery while at Forbes
David Bay Chalmers, Jr.






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?

NORMAN: Yeah.

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?

Israeli Front Company

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?

Money, Money, Money

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.

How Money Laundering Works

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.

The Fifth Column?

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.

Hush Money

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.

Somebody Wanted Him Real Dead

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.

There was semen on his shorts...

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.

Mr. X source

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?

Back To the Fifth Column

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.

Angel(s) of Death

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.

Goldman Helped Maxwell Loot Half a Billion

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."



Publications of the Center for Security Policy
No. 00-D 43
DECISION BRIEF
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, TownHall.com; 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 time...as 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 security by the Clinton-Gore Administration's seven-years of inattention to -- if not utter contempt for -- the most elementary of physical, personnel and information security practices. It is not enough to address in isolation the litany of bugged conference rooms, missing laptops, improperly "shared" intelligence, individuals with ties to Chinese intelligence granted access to the White House and high office in the Commerce Department, etc., etc., etc. The public is entitled to, and must have as it considers to whom to give a mandate for governance over the next four years, a full accounting of this ominous aspect of the Clinton legacy. 

NOTE: The Center's publications are intended to invigorate and enrich the debate on foreign policy and defense issues. The views expressed do not necessarily reflect those of all members of the Center's Board of Advisors. © 1988-2000, Center for Security Policy


What did Gary Cartwright and 'Mad Dog' Know in 1963?

Notes on Mad Dogs: On Being Young, Talented, and Slightly Insane in Old Austin


Originally published in The Austin Chronicle

Anyone who has tried to write about Mad Dog, a bizarre moment of this state's literary history, can lay claim to the same feelings Susan Sontag experienced when she wrote "Notes on 'Camp'" in 1964. "It's embarrassing to be solemn and treatise-like about Camp," she declared right off the bat, and proceeded to sketch the sensibility of camp in the form of descriptive notes because "to snare a sensibility in words, especially one that is alive and powerful, one must be tentative and nimble." The essay form is too definite, too knowing, perhaps, to snare a sensibility. Mad Dog is not a sensibility that is alive and powerful, but it was at one time. But the rules are the same for snaring lost or living sensibilities, and in the case of Mad Dog, for which there is not an abundance of recorded history, the effort of resuscitating its lost sensibility can be addressed most effectively by making notes about it. 

These notes are for Bud Shrake
"There were people who refused to join Mad Dog. ... I think they thought it was too elitist. So we decided it was: It was too elitist for them."
-- Bud Shrake being interviewed, Jan. 13, 2001

Defining "Mad Dog"

1. An attempt at definition: Mad Dog is the chosen name of a band of rebellious artists -- mainly writers and journalists but also musicians and painters -- who lived in Texas, mostly in Austin, in the late Sixties and early Seventies who partied and wrote in an identifiably Texan, outlaw manner. Members include  
  • Texas Monthly senior editor Gary Cartwright and his wife Phyllis; 
  • novelist and screenwriter Bud Shrake (Shrake and Cartwright were the founders); 
  • Dennis Hopper, who starred in Kid Blue (1973), a movie that Shrake wrote; 
  • Marvin Schwarz, who produced the movie; 
  • actors Peter Boyle and Warren Oates, also in Kid Blue
  • Willie Nelson; 
  • Jerry Jeff Walker (and later, his wife Susan); 
  • Peter and Jody Gent (Peter Gent is the author of the classic football satire North Dallas Forty and a former Dallas Cowboys wide receiver); 
  • Bill Brammer, author of The Gay Place
  • painter and sculptor Fletcher Boone; 
  • labor lawyer David Richards and his wife Ann, who would become the governor of Texas; 
  • Larry L. King; and 
  • Threadgill's proprietor Eddie Wilson, among others. 

Once a Mad Dog always a Mad Dog, but the hotbed of Mad Dog activity has long since passed. The unofficial anthem of Mad Dog is said to be "Up Against the Wall, Redneck Mother," by Ray Wylie Hubbard, but the Jerry Jeff Walker version. 
Holding a booksigning at Scholz Garten (in this case, for Larry L. King's  <i>… and other dirty stories</i> in 1968) is the epitome of Mad Dog style:  a little beer with your books. The man smoking behind King (seated)  is artist Fletcher Boone, and behind him, Bill Brammer.
<p>(Larry L. King Archives, Southwestern Writers Collection, Southwest Texas State University)
Holding a book-signing at Scholz Garten (in this case, for Larry L. King's … and other dirty stories in 1968) is the epitome of Mad Dog style: a little beer with your books. The man smoking behind King (seated) is artist Fletcher Boone, and behind him, Bill Brammer. (Larry L. King Archives)

Trying to define the sensibility of Mad Dog in one statement would betray the spirit of the group, since harboring anything as sophisticated as a "sensibility" is not what Mad Dogs were after. There was no purpose to Mad Dog (more on this later); its motto was "Doing Indefinable Services to Mankind" and its credo was "Everything that is not a mystery is guesswork.

Sunday, February 12, 2012

Canadian Radium and Uranium Role in American Conspiracy and Crime


It seems helpful to review the history of oil, radium and uranium production in Canada before proceeding with research into what was going on in southern Florida in 1959 and later. All history is a study of what people DO, not just what they admit to doing. The best way to figure out what they actually did is to intersect dots showing who they make connections with and then explore how those connections fit into an historical timetable.

Below are excerpts extracted from a paper called "Grandfather and the Bear," presented by H. J. M. Spence at the Fourteenth International Symposium held by the Uranium Institute in London, September 1989. 

Click to enlarge
  
Gilbert Labine, a partner with his brother and others in a relatively flush but young and momentarily mineless mining firm called Eldorado Gold Mines Limited, spotted the site of what was to become Canada's first uranium mine from the air in 1929. Following up on a tip from a fur trapper and other rumours, characteristic of the times, he was looking mainly for silver, and was attracted by cobalt bloom and other coloured stains, which were easily visible from the aircraft while overflying the Great Bear area....
Gilbert Labine at Great Bear Lake mine

Labine discovered pitchblende, as well as the silver he was seeking, at what was to become Port Radium on Labine Point....

Initial confirmation of what Labine had found - ore containing up to 53 per cent uranium oxide - came by radio in August following analysis in Toronto of hand-picked samples flown out from the site by a rival firm. The message was in code, which was common in the mining industry of the day, but which could not disguise the word 'uranium'....

The prize, of course, was radium, a gram of which was then valued at more than 50 times the average Canadian's annual income. This miracle substance had captured the fancy of the world for its proven use in the battle against cancer. We shudder today in the knowledge that it was also touted for use in treating such things as birthmarks, eczema, ringworm, psoriasis, acne, warts and neuralgia, and was even claimed 'to cause the menopause to be prompt and not distressing'....

In any case, it was the demand for uranium for weapons development that revived the Port Radium mine in 1942. The project was given government priority for men and materials, and it took just four months to recommission the workings. The immediate, urgent requirement for uranium was met by collecting the bagged ore and concentrates which had been abandoned at the mine and various points along its access waterway in 1940.

After a year and a half of intrigue and manoeuvering, on 28 January 1944 the government announced in the House of Commons that Eldorado Mining and Refining Limited, and its Port Radium mine, had been nationalized 'in the interests of military secrecy', which must have caused distress amongst the Allies' security and intelligence communities. It is well known that, at the urging of the United States, security surrounding the uranium bomb project was extraordinary. As a consequence, mistrust strained the relations between friendly nations, and those involved with the work were kept on a short leash - to the extent that one of the small band of US Army scientific experts with the Manhattan project was followed on a visit to his Canadian fianc?by what could only have been a security agent.

The activities at Great Bear Lake retreated into shadow for some three years, while the world sorted out the good guys from the bad....Following the war, uranium mining in Canada was characterized by a boom-bust-boom cycle reflecting the effects of politics and technological developments on the world marketplace. Amateur prospecting really took off in 1948 when the government lifted a partial ban on private involvement in uranium exploration and replaced it with a guaranteed minimum price for acceptable uranium ores. The advent of the Cold War meant there was a market for as much uranium as Canada could produce. There were many promising uranium discoveries in the decade after the war, one of the most significant being that at Beaverlodge on the north shore of Saskatchewan's Lake Athabasca

Occurrences first reported in 1934 were pursued in 1944, and underground development began in 1949. The discovery of uranium deposits in northern Saskatchewan was the beginning of a major expansion of the uranium mining industry in Canada, including the establishment of the first open-pit and the first private enterprise uranium mine in the post war period, the Gunnar mine, which was discovered in July 1952. The Bancroft area occurrences first picked over by grandfather Spence in 1922 were tapped for development beginning in 1949....
[Note: see Mr. Spence's references at above link.]

It should be noted here that Bryan W. Newkirk made a huge discovery of uranium at Bancroft in November 1954 through his company, Faraday Uranium. In 1943 it had been reported in the press that monopolistic control of the Vermilion oilfield, had been alleged by Elmer E. Roper, a Canadian representative from Edmonton in an address in the legislature. The charge had been denied in a telegram from Bryan W. Newkirk, Toronto, member of a group operating the field, stating: "there is no monopolistic control of the Vermilion field." 

Newkirk had also been involved with companies named Marigold Oils Limited and Barclay Oil Company, Limited, reputedly licensed by an Israeli man named Arie Ben-Tovim, a chemical engineer by profession, who, after the establishment of the State of Israel in 1948 had been appointed consul of Israel in Canada during 1949-50, and then as consul in New York during 1951-52, when Ben-Tovim returned to his professional and private occupation and to engage in a joint oil project with Newkirk, with T. R. Harrison (of Trans-Era Oils Limited and Wilrich Petroleums Limited), and with  A. M. Abernethy (of Minerva Mining Corporation Limited). Abernethy was in business with James Crisona of New York, with whom he had purchased controlling interest in the uranium company owned by D. Harold Byrd of Dallas, Texas, in 1956. 

A few years after the Israel venture, Newkirk would also be connected with stock promoter /hockey player Eric Cradock in Marigold Oils Limited, while another Canadian representative made allegations in the legislature that stocks were being rabidly promoted by gangsters who were associated by Cradock and others in sports clubs. These gangster/ gamblers had invaded Canada following a crackdown on organized crime by the United States following Robert F. Kennedy's participation with Roy Cohn on the Senate Committee staff chaired by Senator Joseph McCarthy, and then his appointment to the position of Attorney General under his brother, President John F. Kennedy in January 1961. 

Robert Kennedy had resigned from McCarthy's committee and became Lead Council in the Senate Subcommittee Hearings on Racketeering and Corruption in the Teamsters Union. As Gordonskene reported at Crooks and Liars newstalgia website:
During a panel interview on Meet The Press from 1959, Kennedy is asked by Lawrence Spivak if he was worried regarding Hoffa's threat to sue, from some remarks Kennedy made during a recent Jack Paar Show appearance.
Robert F. Kennedy: “I feel that in our investigation that we have shown that Mr. Hoffa has made collusive deals with employers, that he’s betrayed the Union membership, that he sold out the Union membership, that he’s put gangsters and racketeers in important positions of power within the Teamsters Union, that he’s misused Union funds. I say that and I will say it again. If Mr. Hoffa wishes to sue me I think we can take that to a court and allow it to be decided by a jury. ...That if he loses that case, that he should resign as President of the Teamsters. Because if he is guilty of any one of these things he is not worthy to be International President of that Union.”
Needless to say, the news didn't get any better for Hoffa when Kennedy became Attorney General a little over a year later.




The crackdown against organized crime by Bobby Kennedy led first to the flight of the criminals into Canada and later to Bobby Kennedy's enforced impotence cause by the murder of his brother, the President. Did Bobby's old nemesis Roy Cohn have a hand in that? Was he assisted in any way by his friend and associate Bryan Newkirk,  who developed the island resort of Duck Key south of the most southern tip of mainland Florida, one of the closest points to Cuba, where Roy Cohn was often in residence? Were Newkirk and Cohn connected by their relationship with other Canadian and Israeli members of organized crime who were incidentally out to regain control of Cuban gambling by Meyer Lansky? These questions are yet to be answered.

Saturday, February 11, 2012

Canadian Organized Crime and Florida Land Development

WINNIPEG FREE PRESS- APRIL 14, 1952
EDMONTON, April 14 (CP) —Hon. N. E. Tanner, mines minister, has announced the first entry of Quebec mining interests into the Alberta oil picture. Quebec mining interests are financing Marigold Oils limited, which has an interest in 10,612 acres of oil rights in the Barrhead area, about 60 miles northwest of Edmonton. The group financing Marigold includes:
  • East Sullivan Mines limited,
  • Louvicourt Goldfields corporation,
  • Bibis Yukon Mines limited,
Eric Cradock and Bryan W. Newkirk.
So, who were those guys?


Mr. Wintermeyer: —Mr. McNamara was a defence witness, so to speak, at closed hearings on February 11, 1960, and on February 17, 1960, before the Deputy Provincial Secretary to show cause why the Centre Road club's provincial charter should not be cancelled on the ground that it was being used for illegal gambling.

Perhaps the hon. Provincial Secretary will remember the fantastic story Mr. McNamara told at those hearings about how the president of the army, navy and air force veterans association had conducted an investigation into allegations against the club and had given it a clear bill of health and how he took his position in the club to keep an eye on things because it had been more or less forced on him as the decent thing to do. And perhaps the hon. Provincial Secretary can explain why no cancellation was ordered for months and that, in fact, the charter was not dissolved until June 14, 1960, after Robert Wright was arrested and everybody knew the jig was up.

Perhaps Mr. McNamara can explain how the vice-presidency of the gamblers' mining company was forced on him in February of 1961, several months after it was known that everything had not been so decent at the Centre Road club after all.

Mr. Speaker, one of the characteristics of organized crime demonstrated by the New York crime commission was the use of violence. The commission said that beatings and even murder were the consequences of the presence of organized crime in a community. There has been evidence in Ontario that physical violence and murder are associated with the activities of gamblers. I will cite several cases:

On March 21, 1961, Max Bluestein, a convicted gambler, was savagely beaten by a number of men in the Town Tavern in downtown Toronto. He was beaten with brass knuckles, iron bars and fists. He was knocked down and kicked and a broken bottle was ground into his mouth and face. According to reports, Mr. Bluestein was beaten by a group of men acting for rivals who wanted to share the enormous profits of Bluestein's illegal gambling enterprises in Toronto.

Mr. Speaker, let me outline a little of Mr. Bluestein's background. In December of 1960 he was convicted along with Sam Binder of operating a common gaming house in the Lakeview club on Bathurst Street near Eglinton Avenue. Magistrate Addison in passing sentence of a fine of $15,000, or four months in jail estimated Mr. Bluestein's Lakeview club did an annual volume of gambling in excess of $13 million with a profit to Mr. Bluestein of more than $1 million. Mr. Bluestein obviously could pay the fine but it was reported in the press that he chose to go to the Ontario Reformatory at Mimico because paying the fine would cause him an income tax problem. While at Mimico a trusted lieutenant told him that rivals wished to take over four large floating crap games which Mr. Bluestein controlled in Toronto hotels. At this point Mr. Bluestein decided to pay his fine in order to gain his freedom and the opportunity to meet the challenge to his gambling empire. It was curious that when Mr. Bluestein came to pay his fine, it was discovered that a clerical error in the court record made him liable only for a fine of $4,000 and not $5,000.

It was reported in the press at the time of Mr. Bluestein's beating at the Town Tavern that almost half of the hundred people present had been invited to witness what subsequently took place. This was a public demonstration to the gambling fraternity of Toronto that violence would be used to capture and control illegal betting here. Despite the fact that a hundred persons were in the tavern no one came forward to give evidence to the police. The tavern's hat check girl and doorman, as well as the customers were thoroughly intimidated.

One month later, after the police held in camera hearings with 12 witnesses, warrants were issued for men— for four men— on a charge of assault causing bodily harm. These men were Jack Weaver, Frank Marchildon, Fred Gabourie and John Papalia. The first three, arrested April 23, 1961, have already been identified as convicted gamblers and members of various social clubs convicted or suspected of being gaming houses. The fourth man, Johnny Papalia of Hamilton, gave himself up to police on May 12, 1961, 48 days after the Bluestein beating and at a time when the New York State police had a warrant for his arrest in connection with the largest narcotic ring ever uncovered in the United States.



Mr. Papalia was a member of the veterans club, he was convicted of beating Max Bluestein and is now serving a sentence of 13 months in an Ontario reformatory.

Mr. Speaker, the New York crime commission pointed out that the three principal fonts of revenue for organized crime were illegal gambling, trafficking in narcotics and labour racketeering. In Johnny Papalia we have a direct link between the gamblers and the dope pedlars. The New York District Attorney charged 20 men, four of them Canadians, as being part of the conspiracy which smuggled drugs worth $150 million on the black market into the United States in the course of the past several years.

Of the 20 charged several left the United States forfeiting bail of $20,000 to $50,000 each. One man was murdered in Brooklyn, New York, last summer, another tried to commit suicide, a third was declared insane, and unfit for trial. A fourth was Alberto Agueci of Toronto, whose beaten, strangled and burned body was found last week near Rochester, New York. Some of the men charged in New York have been identified by federal narcotics authorities in the United States as members of the Mafia.

Another characteristic of organized crime as revealed by the New York State commission was that of extortion. Do we have examples of extortion in Ontario, Mr. Speaker? Last April, Toronto Daily Star columnist Pierre Berton published stories about gangland beatings of Toronto stockbrokers who refused to pay protection money. Beatings have been reported in Hamilton. Gwyn Thomas in the Toronto Daily Star on April 10, 1961, reported that beatings and shakedowns had been going on in Toronto for the preceding two years. Attempts to corrupt law enforcement authorities is another characteristic of organized crime.

I have already related the extent to which gamblers corrupted the Ontario Provincial Police anti-gambling squad. Gamblers have also attempted to corrupt magistrates in the Toronto area. It has been widely reported, Mr. Speaker, that Magistrate Fred Thompson was threatened some few years ago on the day before he was to hear a case against a well-known gambler. Magistrate Thompson reported this to the hon. Attorney-General. It would be interesting to know what the hon. Attorney-General did about it.

It has been reported that an attempt to bribe Magistrate Addison with $50,000 was made prior to the trial of another well-known gambler. It would be interesting, Mr. Speaker, to know what steps, if any, the hon. Attorney-General took in this matter.

I have cited the murder of Earl Atwood in connection with the Roseland club, and no doubt the hon. Attorney-General is familiar with that case. I wonder if he is familiar with the case of Peter "Scrit" Mitchell, one of the gang in the old Ramsey club. According to evidence in court Mitchell held his position in the organization by reason of his alleged ability to provide the club with political protection. According to evidence his position became somewhat tenuous and he is said to have talked too much. It is no secret, Mr. Speaker, that Scrit Mitchell disappeared suddenly and has not been seen for a long time. I wonder if the hon. Attorney-General would know where Mitchell is.

Mr. Speaker, physical violence, extortion, intimidation, bribery and attempted bribery, drug trafficking, and even murder, have all accompanied the growth of illegal gambling in Ontario. They are the inevitable corollary of organized crime. In recent years, however, a new and equally frightening aspect has appeared to this relationship between professional gambling and other illegal activity. It is the use of illegal gambling revenues to promote fraudulent stock deals. I will not weary the House with the complicated details of any particular case. Instead I would simply cite some cases of record in which evidence of syndicate money has been found.

There was the case some two years ago of Shoreland Mines Limited, a dormant Toronto firm. There was the case of Manor Securities Limited in the Maritimes. There was the investigation and report of the acting administrator of The Securities Fraud Prevention Act in New Brunswick last year into the activities of Canam Investments Limited, and of a number of related companies and individuals. This investigation found links with racketeers in Toronto and New York.

If time permitted I could show the House an association between some of these racketeers and some of the professional gamblers I have named earlier in my remarks. I have cited the shakedown and attempted shakedown of certain stockbrokers. It is no great secret, Mr. Speaker, that the culprit here, certainly one of the culprits, was Johnny Papalia. It is no great secret that the stockbrokers concerned were really so-called stockateers, the high pressure brokers and dealers who live on the fringes of securities law. At least two of the men coerced by Papalia were frequent visitors at the Centre Road veterans club.


I had occasion to mention Eric Cradock and J. B. Ryan [Joseph Bernard Ryan], the operators of the James Bay goose club. They are associated in Cradock Holdings Limited, Toronto, and both have poor records, to say the least, with the Ontario securities commission. Cradock offices were once used by Jack Weaver and Fred Gabourie for a big backend booking operation.

I can cite the case of Jaylac Mines Limited, a stock promotion which resulted this month in the cancellation by the Ontario securities commission of the registration of two Toronto stock dealers. The commission identified one Ivan Gordon as a representative of Jaylac interests who disappeared in 1960 following the removal and probable disappearance of all Jaylac's liquidated assets. Here again a detailed examination would reveal an association with ventures in which professional gamblers were and may still be involved.

If for no other reason, Mr. Speaker, a Royal commission is necessary to discover and expose the use of illegal gambling revenues in the participation of professional gamblers and their associates in fraudulent stock promotions.

I now come, Mr. Speaker, to the fifth and final question. The New York crime commission found that one of the characteristics of organized crime is its penetration into legitimate business. What evidence is there that this has happened in Ontario? I could give the House a number of references but I will detail only one because it is a classic example of what has happened and what can happen.

Rent-a-Plane Service 

On June 27, this year the chief of police of Metropolitan Toronto told a meeting of law enforcement officers in Buffalo that a questionable group of men were operating an airline service from Toronto to the United States and the Caribbean area. Mr. Mackey said that although no criminal activity had been discovered the airline would be watched closely because of the ease with which private aircraft can cross international borders and evade customs inspections and regulations.

Mr. Speaker, the name of that airline is Airgo Limited and it was run for a considerable period of time by Vincent Feeley and Joseph McDermott. Airgo Limited was incorporated by federal charter on August 11, 1958. The original owners were a Toronto lawyer and his brother-in-law who allegedly were interested in operating a rent-a-plane service at Toronto Island airport.

On July 3, 1959, the Air Transport Board issued a licence authorizing Airgo Limited to operate a flying training school and a commercial passenger and freight service in Canada. This licence became effective when the federal Department of Transport issued an operating certificate on August 21, 1959. On September 15, 1959, the Air Transport Board issued another licence to Airgo Limited authorizing it to make flights to and from the United States. This became effective when the federal transport department issued an operating certificate on October 13, 1959. Mr. Speaker, on October 19, 1959, six days after Airgo Limited was in business to make flights to the United States, the owners sold the airline to two Toronto lawyers who said they were acting for undisclosed principals. Those lawyers were David Humphrey and Hugh Locke of the firm of Humphrey and Locke. The deal was consummated in the lobby of a downtown Toronto bank when Mr. Locke handed over a large sum of cash money to one of the original owners.

Mr. Speaker, in the course of their investigation of Feeley and McDermott on other matters the police executed a search warrant for the law offices of Humphrey and Locke, and it is no great secret that among the other documents seized was a record of meetings in those offices concerning Airgo business. This record shows that those present at the meeting were Hugh Locke and his accountant, Charles Philips, the operations manager of the airline and Vincent Feeley. The Aviation Directory of Canada, a private publication which compiled its listings on the basis of information supplied by the airlines themselves, also listed David Humphrey as vice-president and Hugh Locke as secretary of Airgo Limited for 1960 and 1961.

Nor is it any great secret, Mr. Speaker, that police seized a document in the law offices of Humphrey & Locke drawn up in May of 1960. This document is a conditional sales document whereby David Humphrey, Hugh Locke, Joseph McDermott and Peter Fielding agreed to sell Airgo Limited to Robert S. Wong, subject to the approval of the Air Transport Board and other conditions. Peter Fielding is an alias used by Vincent Feeley and Robert S. Wong is a manager at Toronto Island airport. The deal apparently fell through but the document is at least indicative of the substantial financial interest in Airgo Limited by Vincent Feeley and Joseph McDermott.

I can also tell the House that Feeley and McDermott were frequently seen about Airgo's offices at Toronto Island airport, and that they identified themselves to the employees as the owners and operators of Airgo Limited. Further I can say that George Reid, the trusted lieutenant of Feeley and McDermott in gambling club operations, was placed on the Airgo payroll after the Centre Road veterans club closed down.

Joseph McDermott took a chattel mortgage for $20,000 on certain aircraft when Airgo Limited was sold to the present owners some time last winter. Yet despite all this evidence of participation by Feeley and McDermott in the ownership and control of Airgo Limited for a period of over one year there is no record with either the Air Transport Board or the federal Department of Transport of the sale of the airline from the original owners in October of 1959.

In August of 1960, and I point out, Mr. Speaker, that this would be shortly after Robert Wright was arrested and the gamblers had discovered the police had had an undercover agent in their midst, the Air Transport Board did receive a vague letter from Humphrey and Locke indicating there had been a transfer of ownership, not to Feeley and McDermott, but to the current owners.

Clearly, Mr. Speaker, a serious evasion of law occurred in this case. Federal regulations provide that the air transport board must be informed of any sale or transfer of stock exceeding five per cent of the total stock, and must approve such sale or transfer. Failure to do so can mean cancellation of the airline's licence and legal prosecution. Clearly, the regulations were violated in this case and there can be little doubt the law was evaded in order to conceal Feeley and McDermott's participation in Airgo Limited.

I shall say nothing, Mr. Speaker, about why they wanted to run an airline, nor shall I say anything about the present ownership of Airgo Limited. Chief Mackey's statement can speak for itself. But I do suggest most strongly, Mr. Speaker, that here again is the type of illegal activity requiring investigation by a Royal commission.

Mr. Speaker, this speech has been long and full of detail. The material is complex and technical. For those reasons it presents a special difficulty for the hon. members of the House to grasp all its meaning readily and easily. I am also aware that much of the material is sensitive in nature. However, I want to emphasize, Mr. Speaker, that I have made no charges of culpable wrongdoing against any person. I have not made and I do not now make any judgment about the legal or moral guilt of any man. What I have done is to present in this House a number of facts which I am convinced demonstrates that organized crime exists in Ontario and requires investigation.

I believe that the only satisfactory investigation can be that of a Royal commission.

The characteristics of organized crime which were demonstrated by the New York State crime commission are all manifest in Ontario. I think it is obvious that an investigation of organized crime by the department of the hon. Attorney-General would be in the nature of an internal house cleaning.

That is needed, but it is not sufficient. I think it is obvious that a Royal commission, independent of government, is the only adequate device for investigating organized crime.

Mr. Speaker, I believe that this Royal commission should be headed by a Justice of the Supreme Court of Ontario. He should be aided by a counsel who will be empowered and directed to investigate all aspects of the problem of organized crime. The commission's terms of reference should require investigation into the extent of organized crime in Ontario; the link between professional gamblers and their counterparts and associates in the United States; the records of the department of the hon. Provincial Secretary in its handling of social club charters; the failure of the department of the hon. Attorney-General to carry out government policy and to enforce the laws relating to gambling; the link between illegal gambling and other criminal activity; especially links with trafficking in narcotics; the penetration of legitimate business by professional gamblers; the contamination of our processes of law enforcement by attempts to influence courts and their operation; and finally the use of legal fronts for illegal activities.

The commissioner and chief counsel should be assisted by adequate staff of trained investigators. The commissioner should have the power to subpoena witnesses and to hear their testimony under oath and if necessary at times in camera. The commission should also be empowered to hold public hearings if deemed advisable as a means of bringing home to the general public the nature and scope of the menace which organized crime presents. The commission should be required to prepare a report of its findings for presentation to this House.

Mr. Speaker, I and my party will not be satisfied with anything less than the type of commission and inquiry which I have outlined. I appeal directly to the hon. Prime Minister (Mr. Robarts), to appoint such a commission and to give it terms of reference that encompass the matters I have enumerated. I wish to assure him and all the hon. members of the House that if the present government does not undertake to appoint such a commission and to direct it to undertake such an inquiry, the next Liberal government will do so at the earliest opportunity.

Applause. 


~~~~~~~~~~~~~~~~~

Lethbridge Herald - 12-1-1961
Challenges Political Leader
TORONTO (CP) — Joseph Ryan, general manager of the Edmonton Eskimos football club,
Thursday challenged Ontario Liberal Leader John Wintermeyer to come outside the legislature and repeat remarks he made about Mr. Ryan and stockbroker Eric Cradock.
Mr. Wintermeyer in a speech on gambling to the legislature Wednesday said Joseph McDermott of Port Credit, whom he identified as a notorious gambler, was host to a group of Detroit men at a Moosonee-area hunting club owned by Mr. Cradock and Mr. Ryan.


Mr. Wintermeyer also said that Mr. Ryan and Mr. Cradock were associated in the firm of Cradock Holdings Limited, Toronto, "and both have poor records, to say the least, with the Ontario Securities Commission."


~~~~~~~~~~~~
Winnipeg Free Press - June 10, 1961
Ont. Men Face U.S. Drug Trial

TORONTO (CP)— Three Toronto men Friday were ordered extradited to the United States
to face trial on charges that they were involved in a ring that smuggled millions of dollars
worth of heroin into the country from Italy.


Judge Robert Forsyth directed that Alberto Agueci, 59, his brother, Vito, 41, and Rocco
Scopolletti, 26, be sent to jail for at least 15 days pending possible application before the
Supreme Court of Ontario to decide the merits of the case. A lawyer representing the
U.S. justice department told the court the drug smuggling operation, which involved 110 pounds of heroin valued at between $14,000,000 and 822,000,000, began in 1958.


Part of FBI Report

An Italian baker from Brooklyn, N.Y., in a sworn statement read in court, told how heroin
was sewn into quilted blankets and brought from Italy on boats which he met in New York.
Some of the drugs were hidden in false trunk bottoms. The baker was described as the man
who named the Agueci brothers and Scopoletti as being part of the operation.


Ed Reid wrote about these cases in The Green Felt Jungle and in this issue of the weekend supplement:



 Click on the image you would like to enlarge.



Tuesday, January 31, 2012

Sandusky the Tip of an Iceberg

Nick Bryant - The Franklin Scandal, Child Abuse and Cover-up

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Originally published in USA Today magazine, January 2012, pps 46-47.




BY NICK BRYANT
"The reality is that many perpetrators are not shady men in dirty, threadbare trench coats living in seedy hotels, but are, in fact, pillars of our community."

THE RECENT scandals at Penn State and Syracuse universities, Brooklyn's Poly Prep Country Day School, Fenway Park, and now the Amateur Athletic Union, along with the intimations of possible cover-ups of child sexual abuse, have citizens shocked and outraged. However, these recent allegations only are the latest variations on a theme of abuse by churches and respected organizations like the Boy Scouts.
Sandusky Arrested for sexual child abuse
   Pedophilia seems to exist in a distant parallel universe that is antithetical to the universe of Little League, Disneyland, and the other hallmarks of wholesome, youthful Americana, but the current allegations of pedophilia and the possibility of its cover-up just may be waking up Americans to the reality that this universe may not be as distant as they once thought.
    I have shared the outrage at the reports of sexual abuse but, unlike most people, I have not been shocked, because of my research over the last decade. Prior to 2002, I had written extensively on children's issues, and then I stumbled across a 1987 U.S. Customs report on a "child abuse investigation" that that the agency was conducting, and it described child abuse of the most horrific nature.
~~~~~~~~~~~~
Mugshot of Terrell, arrested in Florida
On February 7th of 1987, the Washington Post ran an interesting story that did not at first seem to have any particularly national significance. The article concerned a case of possible kidnapping and child abuse, and material discovered in the Washington area that they say points to a 1960s style commune called the Finders, described in a court document as a "cult" that conducted "brainwashing" and used children "in rituals." DC police who searched the Northeast Washington warehouse linked to the group removed large plastic bags filled with color slides, photographs and photographic contact sheets. Some showed naked children involved in what appeared to be "cult rituals," bloodletting ceremonies of animals and one photograph of a child in chains.

~~~~~~~~~~~~

    Two men connected to the investigation had been arrested and charged with multiple counts of child abuse, and six children, whose ages ranged from two to six years old, had been placed in Florida's child protective services. The investigation ultimately was quashed by Federal authorities (who should not have had jurisdiction in this situation), and the two men were released from jail and the charges dropped. I was stunned by the report, and it triggered my prolonged odyssey into the depths of child trafficking in America.
    Although witch-hunt hysteria is to be avoided when these accusations come to light, it is important to consider that the cover-up of child abuse may be rife in our society. Sexual-abuse victims often are very reluctant to come forward because they frequently are branded as liars, opportunists, and gold diggers. Such denunciations already have been leveled against the alleged victims of Penn State's Jerry Sandusky and Syracuse University's Bernie Fine.
    Many specialists in the field of child sexual abuse have concluded that it is rare for individuals to fabricate accusations of these crimes. In 2002, The New York Tunes interviewed Patrick Schiltz, former associate dean of the University of St Thomas law school in Minnesota and now a Federal judge, who had defended Catholic dioceses against sexual-abuse lawsuits in more than 500 cases. Judge Schiltz expressed the belief that "fewer than 10” of those cases were based on false accusations.
    Likewise, I have spoken with scores of men and women who claim to have been sexually abused. I also have concluded that the overwhelming majority are telling the truth and, of all the victims I have interviewed, I am not aware of a single abuser who has been indicted for his or her alleged abuse.
    After determining the authenticity of that Customs report, I started to investigate a second pedophile network that reportedly had been sheltered by entities within Federal law enforcement. It was then that I truly entered a parallel universe that encompasses the refined destruction of children along with its cover-up by the very state and Federal authorities who have pledged to protect them from the depravity of evil men – a universe where lies masquerade as truth, shadows reflect light, and innocence is condemned.
    I spent the next seven years researching and writing a book documenting a nationwide pedophile ring that pandered children to a cabal of men with power and prestige. 


The ring's pimps were a pair of political powerbrokers who used a distinguished orphanage as a pedophilic reservoir. 


With access to thousands of documents that were sealed by two grand juries, as well as the sealed testimony of one, I demonstrated that state and Federal grand jury processes in Nebraska played an integral role in the cover-up.
    Instead of indicting the alleged perpetrators, these grand juries indicted the victims who would not recant their accounts of abuse on charges of perjury. In one case, a 21-year-old who bad been abused since adolescence was indicted on eight counts of perjury by both state and Federal grand juries. Facing more than 300 years in prison, she still refused to recant. Her travesty of a trial resulted in a prison sentence of nine to 15 years. She spent nearly two years in solitary confinement.
    This individual was released from prison in 2000, and she has become a model citizen: she is happily married and gainfully employed. Conversely, one of the ring's pedophilic pimps, who was not charged with a single count of child abuse, moved halfway across the country. By 2009, he had enmeshed himself among a new brood of economically disadvantaged children.
Larry King
    Before the book came into print, I attempted to publish an article on the subject matter. After I felt I had collected clear proof of the child abuse and its cover-up, I distilled the information into an article and submitted it to numerous mainstream magazines, but none would go with it. The magazine editors rejected it without even looking at the thousands of pages of corroborating law enforcement and social services documentation I had collected. Although I was put off by the editors' apparent callousness or perhaps fear for their careers, I thought the main problem may have been that I shoehorned such a sprawling story into an article.
    Undeterred, I wrote a rather lengthy book proposal and gave it to the major literary agency representing me. Within weeks, I was dumped as a client. Still determined, I found a second agent who tried to sell the book proposal, but he found no takers. I did meet with one publisher, however; his primary concern was any potential libel action, not the destruction of numerous children. Finally, I found a small publisher on the West Coast who had the fortitude to publish my book, which, in addition to more than 500 pages of narrative, provides 100 pages of documentation, but no one in the mainstream media would review or even mention it I managed to get copies to the producers for television personalities who are child-welfare advocates, and they would not touch the story, either.
    Possibly, most media were scared off by the fact that two grand juries declared that the perpetrators had not abused a single child and a jury had found the young woman guilty of fabricating her story and convicted her of perjury. Juries, after all, are the finders of fact in our system, but it also is true that her charges and those of the other victims implicated some very powerful figures. I also believe that many editors looking at the summary concluded that my tale could not possibly be true, and there was no reason to even look at the book.
    These circumstances, though, are quite different from what we know of the situation at Penn State. If the Sandusky allegations are true, I would guess that his leverage there was the potential besmirching of the reputations of Penn State and his coaching associates. Penn State has prestige, and rightly so. It has done a lot of good. Institutions, however well-intentioned, are made up of individuals. Pedophilic predators are attracted to environments full of prey: schools, churches, youth groups, etc. The mandate of these institutions must be to protect the children in their charge, and to put that imperative ahead of the protection of their own reputations.
    Indeed, Penn State has refused to release records from its 1998 inquiry involving Sandusky, and the state's Office of Open Records recently upheld its decision. The school's refusal to release these records certainly suggests it still is putting its reputation ahead of the alleged victims when common decency demands transparency at this point.
    Another factor that dooms many investigations, and abets corrupt ones, is that victims frequently are from disadvantaged backgrounds, and the adult luring the child frequently introduces the underage individual to drugs or alcohol, further eroding that victim's credibility. Moreover, the abuser often has powerful allies in law enforcement, government, and the media, who decide that the sordid details are too hot to handle. Add into the mix the public's understandable squeamishness toward the entire subject of pedophilia, and we arrive at the perfect recipe for cover-up.
    The reality is that many perpetrators are not shady men in dirty, threadbare trench coats living in seedy hotels, but are, in fact, pillars of our community. Until our society addresses these facts and its institutions are willing to face embarrassment, instead of heaping more abuse upon victims, our national shame of rampant child abuse and its cover-up are unlikely to end.



Nick Bryant interview 21709 : The Franklin Scandal part1of4 MP3 Download