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11
10 - PEOPLE/(A-G)/Abraham Feinberg.md
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@ -10,13 +10,18 @@ died: 1998
location: "New York City, New York"
---
Abraham Feinberg was a wealthy New York businessman and ardent advocate of statehood for [[Israel]]. By 1947, he played a major and discreet role in fundraising and [[White House]] lobbying for [[Israel]] and the Democratic Party. He would operate at the highest levels between [[Washington, D.C.]] and [[Jerusalem]] for two decades.[^1]
Abraham Feinberg was a wealthy New York businessman and ardent advocate of statehood for [[Israel]]. By 1947, he played a major and discreet role in fundraising and [[White House]] lobbying for Israel and the Democratic Party. He would operate at the highest levels between [[Washington, D.C.]] and [[Jerusalem]] for two decades.[^1]
Feinberg was a close friend of [[Ernst David Bergmann]], and in the fall of 1947, Bergmann indiscreetly revealed to Feinberg that there was uranium in the [[Negev Desert|Negev]] desert, implying a path for [[Israel]] to develop the atomic bomb. Feinberg was astonished by this talk and "shushed him up."[^1]
Feinberg was a close friend of [[Ernst David Bergmann]], and in the fall of 1947, Bergmann indiscreetly revealed to Feinberg that there was uranium in the [[Negev Desert|Negev]] desert, implying a path for Israel to develop the atomic bomb. Feinberg was astonished by this talk and "shushed him up."[^1]
Feinberg was recruited by [[David Ben-Gurion]] in 1945 to help raise money for guerrilla operations against the British mandatory power in [[Palestine]]. He recalled that the kibbutz's administrative building, constructed near a large British military base, was a "fraud," serving as a cover for a secret underground plant producing bullets for the Hagannah. The facility was "scooped out" in twenty-seven days, with workers alternating between farming and arms production to maintain the deception.[^2]
### Truman Library oral history
Feinberg gave an oral history interview to the [[Harry S. Truman Library]], conducted by [[Richard D. McKinzie]] on August 23, 1973. He was a business executive and philanthropist active in the cause of immigration to Palestine and in the creation of the State of Israel, 1945 to 1948, and a friend of President [[Harry S. Truman]].[^3]
### Footnotes
[^1]: Hersh, Seymour M. *The Samson Option: Israel's Nuclear Arsenal and American Foreign Policy*. Random House, 1991. Chapter 2.
[^2]: Hersh, Seymour M. *The Samson Option: Israel's Nuclear Arsenal and American Foreign Policy*. Random House, 1991. Chapter 15.
[^2]: Hersh, Seymour M. *The Samson Option: Israel's Nuclear Arsenal and American Foreign Policy*. Random House, 1991. Chapter 15.
[^3]: Harry S. Truman Library, "Abraham Feinberg Oral History Interview," interview of August 23, 1973 by Richard D. McKinzie, biographical note. https://trumanlibrary.gov/oralhist/feinberg.htm

52
10 - PEOPLE/(A-G)/Christopher Drogoul.md
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@ -10,46 +10,60 @@ tags:
- Banking
- Atlanta
- KissingerAssociates
summary: "Manager of the Atlanta branch of Banca Nazionale del Lavoro who extended more than four billion dollars in unreported credit to Iraq and testified that his superiors in Rome and Kissinger Associates knew of the business."
summary: "Manager of the Atlanta branch of Banca Nazionale del Lavoro who extended billions of dollars in unreported credit to Iraq; Judge Shoob recorded his plea testimony that his superiors should have known of it."
location: "Atlanta, Georgia"
created: 2026-09-21
updated: 2026-09-21
relations:
- type: employed_by
with: "[[Banca Nazionale del Lavoro]]"
role: "manager of the Atlanta branch"
start: 1985
end: 1989
fn: 2
---
Christopher P. Drogoul managed the [[Atlanta]] branch of the Italian state-owned [[Banca Nazionale del Lavoro]], which between 1985 and 1989 extended more than four billion dollars in unreported loans and credits to [[Iraq]], a portion of them backed by the [[Commodity Credit Corporation]] of the [[United States Department of Agriculture|Department of Agriculture]]. The FBI and the [[Federal Reserve]] raided the branch on August 4, 1989. Drogoul was indicted on February 28, 1991, the day after President [[George H.W. Bush]] ordered the ceasefire in the [[Gulf War]]. He pleaded guilty, withdrew the plea, pleaded guilty again to three counts, and was sentenced in December 1993 to 37 months. The government's position throughout was that he acted without the knowledge of the bank's headquarters. The first judge assigned to the case concluded otherwise.[^1][^2][^3]
Christopher P. Drogoul managed the [[Atlanta]] branch of the Italian state-owned [[Banca Nazionale del Lavoro]], which between 1985 and 1989 extended more than four billion dollars in unreported loans and credits to [[Iraq]], a portion of them backed by the [[Commodity Credit Corporation]] of the [[United States Department of Agriculture|Department of Agriculture]]. FBI agents raided the branch on August 4, 1989 and seized its records.[^1] Drogoul was indicted on February 28, 1991, the day after President [[George H.W. Bush]] ordered the ceasefire in the [[Gulf War]]. He pleaded guilty, withdrew the plea, pleaded guilty again to three counts, and was sentenced in December 1993 to 37 months. A Central Intelligence Agency memorandum of November 6, 1989 put the branch's unauthorized letters of credit for Iraq at $3.2 billion in 2,500 letters between February 1988 and July 1989.[^2] The government's position throughout was that he acted without the knowledge of the bank's headquarters. The first judge assigned to the case concluded otherwise.[^3][^4][^5]
### The Indictment
The indictment, No. 1:91-CR-078 in the [[United States District Court for the Northern District of Georgia|Northern District of Georgia]], charged Drogoul on 347 counts together with two branch officers, [[Therese Barden]] and [[Amedeo DeCarolis]]; the [[New York City|New York]] trading company [[Entrade International]] and its manager, [[Yavuz Tezeller]]; the Iraqi state [[Rafidain Bank]]; and four Iraqi officials, among them [[Safa al-Habobi]], who ran Iraq's front companies in [[London]]. The government's list of unindicted co-conspirators, filed by Assistant U.S. Attorney [[Gale McKenzie]] on September 12, 1991, named an employee of the [[Central Bank of Iraq]] and [[Amir al-Saadi]] of the [[Ministry of Industry and Military Industrialization]]. [[United States Attorney General|Attorney General]] [[Richard Thornburgh]] said the defendants had been able "to silently pick the pockets of a major Italian bank of more than $4 billion in loans and credits, almost by the push of a button."[^1][^4]
The indictment, No. 1:91-CR-078 in the [[United States District Court for the Northern District of Georgia|Northern District of Georgia]], charged Drogoul on 347 counts together with two branch officers, [[Therese Barden]] and [[Amedeo DeCarolis]]; the [[New York City|New York]] trading company [[Entrade International]] and its manager, [[Yavuz Tezeller]]; the Iraqi state [[Rafidain Bank]]; and four Iraqi officials, among them [[Safa al-Habobi]], who ran Iraq's front companies in [[London]]. The government's list of unindicted co-conspirators, filed by Assistant U.S. Attorney [[Gale McKenzie]] on September 12, 1991, named an employee of the [[Central Bank of Iraq]] and [[Amir al-Saadi]] of the [[Ministry of Industry and Military Industrialization]]. [[United States Attorney General|Attorney General]] [[Richard Thornburgh]] said the defendants had been able "to silently pick the pockets of a major Italian bank of more than $4 billion in loans and credits, almost by the push of a button."[^3][^6]
Tezeller left for [[Turkey]] after the raid and did not return. A [[Department of Justice|Justice Department]] letter of January 9, 1990, said he could "provide information regarding after sales services (a fancy word for bribes, kickbacks), unearned consulting fees, and other payments to Iraqis as well as kickbacks paid by [[United States]] and multinational companies to obtain Iraqi contracts." Entrade was an affiliate of the Turkish conglomerate [[Enka]] and had handled 52 guaranteed transactions for Iraq. An Agriculture Department inquiry found no evidence that the commodities in those transactions reached Iraq. Representative [[Henry Gonzalez]], chairman of the [[House Committee on Banking, Finance and Urban Affairs|House Banking Committee]], said on the House floor that the [[State Department]] had kept the Atlanta investigators from traveling to Turkey to question Tezeller, and that the Justice Department had discouraged the indictment of the Central Bank of Iraq and of [[Wafai Dajani]], a Jordanian businessman close to King [[Hussein of Jordan|Hussein]], on grounds of foreign policy.[^5]
Tezeller left for [[Turkey]] after the raid and did not return. A [[Department of Justice|Justice Department]] letter of January 9, 1990, said he could "provide information regarding after sales services (a fancy word for bribes, kickbacks), unearned consulting fees, and other payments to Iraqis as well as kickbacks paid by [[United States]] and multinational companies to obtain Iraqi contracts." Entrade was an affiliate of the Turkish conglomerate [[Enka]] and had handled 52 guaranteed transactions for Iraq. An Agriculture Department inquiry found no evidence that the commodities in those transactions reached Iraq. Representative [[Henry Gonzalez]], chairman of the [[House Committee on Banking, Finance and Urban Affairs|House Banking Committee]], said on the House floor that the [[State Department]] had kept the Atlanta investigators from traveling to Turkey to question Tezeller, and that the Justice Department had discouraged the indictment of the Central Bank of Iraq and of [[Wafai Dajani]], a Jordanian businessman close to King [[Hussein of Jordan|Hussein]], on grounds of foreign policy.[^7]
[[Joseph D. Whitley]] became acting United States attorney in Atlanta on June 1, 1990, and recused himself from the case the same day because his former law firm had represented [[Matrix Churchill]], the Iraqi-owned machine tool company that the branch had financed.[^6]
[[Joseph D. Whitley]] became acting United States attorney in Atlanta on June 1, 1990, and recused himself from the case the same day because his former law firm had represented [[Matrix Churchill]], the Iraqi-owned machine tool company that the branch had financed.[^8]
### Shoob
Drogoul pleaded guilty to 60 counts in June 1992. At the sentencing hearing before Judge [[Marvin Shoob]] he testified that the branch had been "a tool of the U.S. and Italian governments" and that "one has to consider it a foreign policy matter and not a banking matter." On September 14, 1992, Gonzalez announced that the [[Central Intelligence Agency|CIA]] had told his committee it had good evidence that officials of the bank in [[Rome]] knew of the Atlanta lending, which contradicted what the agency's general counsel had told the prosecutors. On October 1 Shoob allowed Drogoul to withdraw the plea and removed himself from the case, stating his conclusion "that officials at BNL-Rome were aware of and approved Mr. Drogoul's activities."[^1][^2][^7]
Drogoul pleaded guilty to 60 counts in June 1992. At the sentencing hearing before Judge [[Marvin Shoob]] he testified that the branch had been "a tool of the U.S. and Italian governments" and that "one has to consider it a foreign policy matter and not a banking matter." On September 14, 1992, Gonzalez announced that the [[Central Intelligence Agency|CIA]] had told his committee it had good evidence that officials of the bank in [[Rome]] knew of the Atlanta lending, which contradicted what the agency's general counsel had told the prosecutors. On October 1 Shoob allowed Drogoul to withdraw the plea and removed himself from the case, stating his conclusion "that officials at BNL-Rome were aware of and approved Mr. Drogoul's activities." The written order of October 5 records that Drogoul "testified only that his superiors should have known."[^3][^4][^9][^10]
Attorney General [[William Barr]] declined to seek an independent counsel and on October 16, 1992, appointed a retired federal judge, [[Frederick Lacey]], as special counsel. Lacey reported after 54 days. "I find Judge Shoob's specific charges against the USAO to be inaccurate," he wrote. Of the national security adviser and the deputy secretary of state, both formerly of [[Kissinger Associates]], he wrote: "It is clear that, while at Kissinger Associates, Scowcroft and Eagleburger came into contact with BNL management. I have seen nothing, however, to suggest that they knew of BNL-Atlanta's wrongful loans to Iraq or influenced the prosecution of this matter." The second part of his report was classified top secret. Gonzalez called it "the Lacey Job" and said: "At best Lacey's probe was a whitewash." In December 1992 prosecutors in [[Venice]] indicted 59 people, including executives of the bank, for financing arms sales to [[Iran]].[^6][^7]
Attorney General [[William Barr]] declined to seek an independent counsel under the statute and on October 16, 1992, appointed a retired federal judge, [[Frederick Lacey]], as "independent counsel" under Justice Department regulations. Lacey's report states that on October 27 Barr authorized a preliminary investigation and asked for a report by December 8, 1992; the Senate staff record that Lacey submitted it on December 9.[^1] "I find Judge Shoob's specific charges against the USAO, and his concern about the interference of other agencies, to be inaccurate," he wrote. Of the national security adviser and the deputy secretary of state, both formerly of [[Kissinger Associates]], he wrote: "It is clear that, while at Kissinger Associates, Scowcroft and Eagleburger came into contact with BNL management. I have seen nothing, however, to suggest that they knew of BNL-Atlanta's wrongful loans to Iraq or influenced the prosecution of this matter." The second part of his report was classified top secret. Gonzalez called it "the Lacey Job" and said: "At best Lacey's probe was a whitewash." In December 1992 prosecutors in [[Venice]] indicted 59 people, including executives of the bank, for financing arms sales to [[Iran]].[^8][^9]
The staff of the [[Senate Select Committee on Intelligence]] reported in February 1993 that the intelligence agencies and the Justice Department had coordinated poorly and that the CIA's reasoning for withholding its reports from the prosecutors had "no legal support." It did not find that information had been concealed to protect senior officials.[^8]
In written answers submitted to the House committee, Drogoul stated that his attorney, [[Robert M. Simels]], had been in contact with [[Ross Perot]], that Perot told Simels he thought Drogoul's pretrial detention was "un-American" and that if bail were set he was prepared to aid in his release, and that although bail was set after these discussions, Perot offered no assistance.[^11]
The staff of the [[Senate Select Committee on Intelligence]] reported in February 1993 that the intelligence agencies and the Justice Department had coordinated poorly and that the CIA's reasoning for withholding its reports from the prosecutors had "no legal support." It did not find that information had been concealed to protect senior officials.[^12]
### The Italian Witnesses
Drogoul's lawyer, [[Bobby Lee Cook]], named three officials in Rome, [[Giacomo Pedde]], [[Teodoro Monaco]], and [[Angelo Florio]], as the men who had authorized the loans. The government sought to depose thirteen Italian bank officers in Rome. Seven, including Pedde, Florio, and [[Nerio Nesi]], refused to testify in the United States. The defense told the court of appeals that "the testimony of these thirteen witnesses lies at the very core of the charges in the indictment, and its refutation the heart of the defense." The [[United States Court of Appeals for the Eleventh Circuit|Eleventh Circuit]] ordered the depositions on September 2, 1993, six days before the trial date. Drogoul then pleaded guilty to one count of wire fraud and two of making false statements to the Federal Reserve. A Justice Department review filed with the court on August 23 had found that six employees in Atlanta were responsible and that neither Rome nor Washington knew. "The evidence never gets on the books," Gonzalez said, "and the public will never know for certain what the Bush administration did for [[Saddam Hussein]] before the war."[^1][^2]
Drogoul's lawyer, [[Bobby Lee Cook]], named three officials in Rome, [[Giacomo Pedde]], [[Teodoro Monaco]], and [[Angelo Florio]], as the men who had authorized the loans. The government sought to depose thirteen Italian bank officers in Rome. Seven, including Pedde, Florio, and [[Nerio Nesi]], refused to testify in the United States.[^13] The defense told the court of appeals that "the testimony of these thirteen witnesses lies at the very core of the charges in the indictment, and its refutation the heart of the defense." The [[United States Court of Appeals for the Eleventh Circuit|Eleventh Circuit]] ordered the depositions on September 2, 1993, six days before the trial date. Drogoul then pleaded guilty to one count of wire fraud and two of making false statements to the Federal Reserve. A Justice Department review filed with the court on August 23 had found that six employees in Atlanta were responsible and that neither Rome nor Washington knew. "The evidence never gets on the books," Gonzalez said, "and the public will never know for certain what the Bush administration did for [[Saddam Hussein]] before the war."[^3][^4]
### Testimony on Kissinger Associates
Drogoul testified under oath to the [[House Banking Committee]] on November 9, 1993, with five other former employees of the bank. He said he learned at a business meeting in [[Italy]] in 1987 that [[Henry A. Kissinger|Henry Kissinger]] sat on the bank's international advisory board. "As we became involved in the medium-term lending," he said, "it became clear to us that the people at Kissinger and Associates were somehow assisting clients of Iraq in further developing business." He added: "By the time we moved into the 1988 period or early 1989 period, it was fairly clear to me that Kissinger and Associates' people were involved in some way in trying to enhance and develop a relationship between Iraq and the United States. I really shouldn't go farther than that, because the rest is probably speculation."[^9]
Drogoul testified under oath to the [[House Banking Committee]] on November 9, 1993, with five other former employees of the bank. He said he learned at a business meeting in [[Italy]] in 1987 that [[Henry A. Kissinger|Henry Kissinger]] sat on the bank's international advisory board. "As we became involved in the medium-term lending," he said, "it became clear to us that the people at Kissinger and Associates were somehow assisting clients of Iraq in further developing business." He added: "By the time we moved into the 1988 period or early 1989 period, it was fairly clear to me that Kissinger and Associates' people were involved in some way in trying to enhance and develop a relationship between Iraq and the United States. I really shouldn't go farther than that, because the rest is probably speculation."[^14]
### Footnotes
[^1]: "Drogoul gets 37 months in BNL bank scandal," *United Press International,* December 9, 1993; "Was Banker Just Fall Guy in Loans to Iraq?" *Deseret News,* December 5, 1993.
[^2]: United States v. Drogoul, 1 F.3d 1546 (11th Cir. 1993).
[^3]: Gonzalez, Henry B. "Kissinger Associates, Scowcroft, Eagleburger, Stoga, Iraq, and BNL," *Congressional Record,* House, April 28, 1992, pp. H2694-H2701. https://www.globalsecurity.org/military/library/congress/1992_cr/h920428g.htm
[^4]: "Government's Response to Defense Motions for List of Unindicted Co-Conspirators," United States v. Drogoul, No. 1:91-CR-078 (N.D. Ga. September 12, 1991), reproduced in House Committee on Banking, Finance and Urban Affairs, *Testimony of Former Employees of the Banca Nazionale del Lavoro,* Serial No. 103-95, November 9, 1993.
[^5]: Gonzalez, Henry B. "Efforts to Thwart Investigation of the BNL Scandal," *Congressional Record,* House, March 30, 1992. https://www.globalsecurity.org/military/library/congress/1992_cr/h920330g.htm
[^6]: Lacey, Frederick B. "The Banca Nazionale del Lavoro Investigation: Report of the Independent Counsel," reproduced in House Committee on Banking, Finance and Urban Affairs, Serial No. 103-95, pp. 514-15. https://archive.org/details/testimonyofforme1994unit
[^7]: Gonzalez, Henry B. "Update on BNL Investigation," *Congressional Record,* House, January 21, 1993.
[^8]: Senate Select Committee on Intelligence, *The Intelligence Community's Involvement in the Banca Nazionale del Lavoro (BNL) Affair,* staff report, S. Prt. 103-12, February 1993.
[^9]: Testimony of Christopher P. Drogoul, House Committee on Banking, Finance and Urban Affairs, *Testimony of Former Employees of the Banca Nazionale del Lavoro,* Serial No. 103-95, November 9, 1993.
[^1]: Senate Select Committee on Intelligence, *The Intelligence Community's Involvement in the Banca Nazionale del Lavoro (BNL) Affair,* Committee Print S. Prt. 103-12, February 1993, pp. 4-5, 10; Lacey, Report of the Independent Counsel, Serial No. 103-95, pp. 344-345. https://www.intelligence.senate.gov/sites/default/files/publications/10312.pdf
[^2]: Central Intelligence Agency, Directorate of Intelligence, "Iraq-Italy: Repercussions of the BNL-Atlanta Scandal," November 6, 1989, printed in Serial No. 103-95, pp. 194-195 (the branch's letters of credit and its debt limits). https://archive.org/details/testimonyofforme1994unit
[^3]: "Drogoul gets 37 months in BNL bank scandal," *United Press International,* December 9, 1993; "Was Banker Just Fall Guy in Loans to Iraq?" *Deseret News,* December 5, 1993.
[^4]: United States v. Drogoul, 1 F.3d 1546 (11th Cir. 1993).
[^5]: Gonzalez, Henry B. "Kissinger Associates, Scowcroft, Eagleburger, Stoga, Iraq, and BNL," *Congressional Record,* House, April 28, 1992, pp. H2694-H2701. https://www.globalsecurity.org/military/library/congress/1992_cr/h920428g.htm
[^6]: "Government's Response to Defense Motions for List of Unindicted Co-Conspirators," United States v. Drogoul, No. 1:91-CR-078 (N.D. Ga. September 12, 1991), reproduced in House Committee on Banking, Finance and Urban Affairs, *Testimony of Former Employees of the Banca Nazionale del Lavoro,* Serial No. 103-95, November 9, 1993.
[^7]: Gonzalez, Henry B. "Efforts to Thwart Investigation of the BNL Scandal," *Congressional Record,* House, March 30, 1992. https://www.globalsecurity.org/military/library/congress/1992_cr/h920330g.htm
[^8]: Lacey, Frederick B. "The Banca Nazionale del Lavoro Investigation: Report of the Independent Counsel," reproduced in House Committee on Banking, Finance and Urban Affairs, Serial No. 103-95, pp. 514-15. https://archive.org/details/testimonyofforme1994unit
[^9]: Gonzalez, Henry B. "Update on BNL Investigation," *Congressional Record,* House, January 21, 1993.
[^10]: Order of Judge Marvin H. Shoob, October 1, 1992 (dated October 5, 1992), United States v. Drogoul, printed in House Committee on Banking, Finance and Urban Affairs, *Testimony of Former Employees of the Banca Nazionale del Lavoro,* Serial No. 103-95 (1994), pp. 205-206. https://archive.org/details/testimonyofforme1994unit
[^11]: Answers submitted by Mr. Drogoul in response to questions on pages 20, 21 and 24 of the hearing text, printed insert in Serial No. 103-95, p. 153. https://archive.org/details/testimonyofforme1994unit
[^12]: Senate Select Committee on Intelligence, *The Intelligence Community's Involvement in the Banca Nazionale del Lavoro (BNL) Affair,* staff report, S. Prt. 103-12, February 1993.
[^13]: United States v. Drogoul, 1 F.3d 1546 (11th Cir. 1993), listing the seven who would not testify (Angelo Florio, Nerio Nesi, Giacomo Pedde, Giovanni D'Ercole, Marco Lunazzi, Francesco Bignardi and Gerardo Ruggero; the opinion spells the second name "Nero Nesi") and noting that Pedde and Florio were among them, and recording Drogoul's assertion that Pedde, Teodoro Monaco and Florio gave the authorizations. https://static.case.law/f3d/1/cases/1546-01.json
[^14]: Testimony of Christopher P. Drogoul, House Committee on Banking, Finance and Urban Affairs, *Testimony of Former Employees of the Banca Nazionale del Lavoro,* Serial No. 103-95, November 9, 1993.

58
10 - PEOPLE/(A-G)/Clark Clifford.md
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@ -16,30 +16,30 @@ relations:
with: "[[Bank of Credit and Commerce International]]"
start: 1978
role: "American counsel"
fn: 10
fn: 12
- type: director_of
with: "[[Credit and Commerce American Holdings]]"
fn: 8
fn: 10
- type: head_of
with: "[[First American Bank]]"
role: "chairman"
fn: 10
fn: 12
- type: partner_of
with: "[[Robert Altman]]"
role: "law partner"
fn: 10
fn: 12
- type: prosecuted
with: "[[Robert Morgenthau]]"
reverse: true
start: 1992-07-29
end: 1993-11-30
fn: 4
fn: 6
- type: investigated
with: "[[Federal Reserve Board]]"
reverse: true
start: 1992-07-29
end: 1998-02
fn: 8
fn: 10
---
Clark McAdams Clifford was born December 25, 1906, in Fort Scott, Kansas. He earned a B.A. from Washington University in St. Louis in 1927 and an LL.B. from Washington University School of Law in 1928, after which he practiced law in St. Louis through [[World War II]]. He served in the Navy during the war, rising to captain, and arrived at the [[White House]] in 1946 as naval aide to President Harry S. Truman. He died October 10, 1997, in Bethesda, Maryland, at age 90.[^1]
@ -53,7 +53,7 @@ In 1950, Clifford left government and founded the Washington law firm Clifford &
### Later Government Service
Clifford served as an informal advisor to President [[John F. Kennedy]] following the [[Bay of Pigs Invasion|Bay of Pigs]] failure in April 1961. President [[Lyndon B. Johnson]] appointed him Secretary of Defense in January 1968, replacing [[Robert S. McNamara|Robert McNamara]]. In what became his most consequential decision in public life, Clifford convened a private reassessment of Vietnam strategy and concluded the war was unwinnable at any politically acceptable cost. His recommendations shaped Johnson's March 1968 decision to seek negotiations and decline to seek re-election. Clifford later served President [[Jimmy Carter]] as a diplomatic troubleshooter, negotiating the [[Panama Canal]] Treaties and serving as special envoy to Cyprus, Greece, Turkey, and India.[^1]
Clifford served as an informal advisor to President [[John F. Kennedy]] following the [[Bay of Pigs Invasion|Bay of Pigs]] failure in April 1961. President [[Lyndon B. Johnson]] announced on January 19, 1968 that Clifford had accepted the post of Secretary of Defense,[^3] and Clifford was sworn in on March 1, 1968, replacing [[Robert S. McNamara|Robert McNamara]].[^4] In what became his most consequential decision in public life, Clifford convened a private reassessment of Vietnam strategy and concluded the war was unwinnable at any politically acceptable cost. His recommendations shaped Johnson's March 1968 decision to seek negotiations and decline to seek re-election. Clifford later served President [[Jimmy Carter]] as a diplomatic troubleshooter, negotiating the [[Panama Canal]] Treaties and serving as special envoy to Cyprus, Greece, Turkey, and India.[^1]
### BCCI and First American Bank
@ -63,7 +63,7 @@ In 1978, BCCI orchestrated a hostile bid for Financial General Bankshares using
The bank was subsequently renamed [[First American Bank|First American Bankshares]], Inc. Clifford became chairman of the board; Altman became president. Both men received substantial legal fees for their continued representation of BCCI's interests. In 1986, the Central Intelligence Agency issued an internal report stating that BCCI had in fact owned First American since 1982, a report that was not acted on.[^2]
In February 1988, Clifford and Altman sold a large portion of their First American stock to [[Mohammed Hammoud]], a BCCI front man, for substantial profits.[^3]
In February 1988, Clifford and Altman sold a large portion of their First American stock to [[Mohammed Hammoud]], a BCCI front man, for substantial profits.[^5]
### Indictment and Resolution
@ -71,46 +71,48 @@ In 1989, Senate investigator [[Jack Blum]] brought evidence of BCCI's operations
In July 1992, a New York state grand jury convened by Morgenthau indicted Clifford and Altman on charges of bribery, fraud, and receiving benefits from BCCI in exchange for allowing BCCI to secretly own and control First American while representing to regulators that it did not. The Federal Reserve Board simultaneously brought civil charges.
Clifford, then 85 and suffering from serious heart disease, asserted that he had been deceived by Abedi and the other BCCI principals and had no knowledge of BCCI's actual ownership of First American. New York courts severed his case from Altman's on health grounds; Clifford was never tried. Altman was acquitted by a Manhattan jury on August 14, 1993, and the charges against Clifford were dismissed on November 30, 1993.[^4][^5] In 1992, BCCI's liquidators had pleaded guilty and agreed to forfeit $550 million to settle criminal charges; the BCCI settlement fund ultimately recovered approximately $880 million, including the $225 million settlement by [[Khalid bin Mahfouz]] in December 1993.[^6][^7]
Clifford, then 85 and suffering from serious heart disease, asserted that he had been deceived by Abedi and the other BCCI principals and had no knowledge of BCCI's actual ownership of First American. New York courts severed his case from Altman's on health grounds; Clifford was never tried. Altman was acquitted by a Manhattan jury on August 14, 1993, and the charges against Clifford were dismissed on November 30, 1993.[^6][^7] In 1992, BCCI's liquidators had pleaded guilty and agreed to forfeit $550 million to settle criminal charges; the BCCI settlement fund ultimately recovered approximately $880 million, including the $225 million settlement by [[Khalid bin Mahfouz]] in December 1993.[^8][^9]
Clifford died October 10, 1997. He maintained his innocence to the end. The Federal Reserve's civil proceeding against him and Altman was settled by a consent order dated February 1998.[^8]
Clifford died October 10, 1997. He maintained his innocence to the end. The Federal Reserve's civil proceeding against him and Altman was settled by a consent order dated February 1998.[^10]
### The Sami Memo and the Legal Bills
Clifford told the [[Federal Reserve Board|Federal Reserve]] in 1981, and the Senate on October 24, 1991, that [[Kamal Adham]]'s interest in Financial General had come "from a friend who was associated with the Saudi Arabian embassy," a man who, he testified, "looked into [FGB] in more detail and concluded that it might be an attractive acquisition. Apparently, that was one of his functions in the Saudi Arabian Embassy, to pass information of that kind back to [[Saudi Arabia]]." He and Altman told the Senate that they had not advised BCCI or its investors until the litigation with the Securities and Exchange Commission and the Middendorf group began in mid-February 1978.[^9][^10] The [[BCCI Kerry-Brown Senate Report|Kerry-Brown Senate Report]] found this account contradicted by the memo of the BCCI officer [[Abdus Sami]] to Agha Hasan Abedi of January 30, 1978, found by the Federal Reserve in BCCI's files in [[Abu Dhabi]], which reported that Bert Lance had suggested retaining Clifford as chief counsel "in view of the possibility of this [takeover] contest and also for presentation of the holding company application to Fed[eral Reserve]," and that Sami had "met Clark Clifford and explained to him our strategy and goal. He was happy to know the details and has blessed the acquisition." A bill from Clifford's firm to BCCI dated May 24, 1978, dated its services from January 1978.[^9][^10]
Clifford told the [[Federal Reserve Board|Federal Reserve]] in 1981, and the Senate on October 24, 1991, that [[Kamal Adham]]'s interest in Financial General had come "from a friend who was associated with the Saudi Arabian embassy," a man who, he testified, "looked into [FGB] in more detail and concluded that it might be an attractive acquisition. Apparently, that was one of his functions in the Saudi Arabian Embassy, to pass information of that kind back to [[Saudi Arabia]]." He and Altman told the Senate that they had not advised BCCI or its investors until the litigation with the Securities and Exchange Commission and the Middendorf group began in mid-February 1978.[^11][^12] The [[BCCI Kerry-Brown Senate Report|Kerry-Brown Senate Report]] found this account contradicted by the memo of the BCCI officer [[Abdus Sami]] to Agha Hasan Abedi of January 30, 1978, found by the Federal Reserve in BCCI's files in [[Abu Dhabi]], which reported that Bert Lance had suggested retaining Clifford as chief counsel "in view of the possibility of this [takeover] contest and also for presentation of the holding company application to Fed[eral Reserve]," and that Sami had "met Clark Clifford and explained to him our strategy and goal. He was happy to know the details and has blessed the acquisition." A bill from Clifford's firm to BCCI dated May 24, 1978, dated its services from January 1978.[^11][^12]
At the Federal Reserve hearing of April 23, 1981, on the application of [[Credit and Commerce American Holdings]] (CCAH), Clifford described BCCI's role as: "None. There is no function of any kind on the part of BCCI . . . I know of no present relationship. I know of no planned future relationship that exists." The Federal Reserve approved the application on August 25, 1981.[^9][^10]
At the Federal Reserve hearing of April 23, 1981, on the application of [[Credit and Commerce American Holdings]] (CCAH), Clifford described BCCI's role as: "None. There is no function of any kind on the part of BCCI . . . I know of no present relationship. I know of no planned future relationship that exists." The Federal Reserve approved the application on August 25, 1981.[^11][^12]
### Fees and Stock
Clifford testified that his firm received "maybe $1 million a year" from First American. The Senate report found that Clifford & Warnke had billed First American and related entities about 11 million dollars over about eight years and BCCI about 6 million dollars over twelve years, 17 million dollars in all; the firm also led the defense of the BCCI officers indicted in [[Tampa, Florida|Tampa]] in 1988. As chairman of First American, Clifford said, he was paid 50,000 dollars a year.[^10] In a rights offering, the BCCI nominee Masriq waived its rights so that Clifford and Altman could buy CCAH shares at book value, 2,216 dollars a share, one day after Masriq had bought other shares at 4,044.20 dollars. In 1988 the two men sold their CCAH stock to the BCCI nominee Mohammed Hammoud at 6,800 dollars a share, "the highest price ever paid for CCAH stock," for a combined gross profit of 9.5 million dollars; the Senate report found that the price "was set not by Hammoud, and not even by BCCI, but by Clifford and Altman, who told Naqvi the amount of net profit they wanted on the sale, after all taxes had been paid."[^10]
Clifford testified that his firm received "maybe $1 million a year" from First American. The Senate report found that Clifford & Warnke had billed First American and related entities about 11 million dollars over about eight years and BCCI about 6 million dollars over twelve years, 17 million dollars in all; the firm also led the defense of the BCCI officers indicted in [[Tampa, Florida|Tampa]] in 1988. As chairman of First American, Clifford said, he was paid 50,000 dollars a year.[^12] In a rights offering, the BCCI nominee Masriq waived its rights so that Clifford and Altman could buy CCAH shares at book value, 2,216 dollars a share, one day after Masriq had bought other shares at 4,044.20 dollars. In 1988 the two men sold their CCAH stock to the BCCI nominee Mohammed Hammoud at 6,800 dollars a share, "the highest price ever paid for CCAH stock," for a combined gross profit of 9.5 million dollars; the Senate report found that the price "was set not by Hammoud, and not even by BCCI, but by Clifford and Altman, who told Naqvi the amount of net profit they wanted on the sale, after all taxes had been paid."[^12]
### Indictment and Dismissal
On July 29, 1992, a federal grand jury in Washington and a New York State grand jury indicted Clifford and Altman simultaneously, one year after Morgenthau opened his BCCI investigation. "We said then that BCCI was the largest bank fraud in world history," Morgenthau said. "Now we know it is also one of the biggest criminal enterprises in world history." The state indictment, which also named Abedi, [[Swaleh Naqvi]], [[Ghaith R. Pharaon]] and [[Faisal Saud al-Fulaij]], charged Clifford and Altman with receiving millions of dollars in bribes through their affiliation with BCCI, including about 10 million dollars in profits on stock they had not paid for and about 17 million dollars in legal fees; Clifford faced a maximum of eight years. The three-count federal indictment charged them with conspiring to defraud the Federal Reserve and concealing facts from investigators. Clifford's lawyer, Carl Rauh, had met Morgenthau the day before to argue that Clifford "would not be able to survive a prosecution" and that "it would kill him," according to the *New York Post* as quoted by United Press International. At his arraignment Clifford stood and said, "I plead not guilty, your honor," and Justice John Bradley released both men without bail.[^11]
On July 29, 1992, a federal grand jury in Washington and a New York State grand jury indicted Clifford and Altman simultaneously, one year after Morgenthau opened his BCCI investigation. "We said then that BCCI was the largest bank fraud in world history," Morgenthau said. "Now we know it is also one of the biggest criminal enterprises in world history." The state indictment, which also named Abedi, [[Swaleh Naqvi]], [[Ghaith R. Pharaon]] and [[Faisal Saud al-Fulaij]], charged Clifford and Altman with receiving millions of dollars in bribes through their affiliation with BCCI, including about 10 million dollars in profits on stock they had not paid for and about 17 million dollars in legal fees; Clifford faced a maximum of eight years. The three-count federal indictment charged them with conspiring to defraud the Federal Reserve and concealing facts from investigators. Clifford's lawyer, Carl Rauh, had met Morgenthau the day before to argue that Clifford "would not be able to survive a prosecution" and that "it would kill him," according to the *New York Post* as quoted by United Press International. At his arraignment Clifford stood and said, "I plead not guilty, your honor," and Justice John Bradley released both men without bail.[^13]
Clifford was too ill to stand trial with Altman, who was acquitted in Manhattan on August 14, 1993. On November 30, 1993, on a motion made jointly by Morgenthau and Clifford's lawyer, Charles Stillman, Justice Bradley dismissed the indictment against Clifford, finding that "Clifford's age and ill health prevent his being brought to trial on this indictment and will likely always do so." "In a sense, today's dismissal is the ultimate anti-climax," Stillman said.[^4][^5]
Clifford was too ill to stand trial with Altman, who was acquitted in Manhattan on August 14, 1993. On November 30, 1993, on a motion made jointly by Morgenthau and Clifford's lawyer, Charles Stillman, Justice Bradley dismissed the indictment against Clifford, finding that "Clifford's age and ill health prevent his being brought to trial on this indictment and will likely always do so." "In a sense, today's dismissal is the ultimate anti-climax," Stillman said.[^6][^7]
### Federal Reserve Consent Order
The Federal Reserve's civil proceeding, opened on July 29, 1992, continued after the criminal cases ended. Its Second Amended Notice of Intent to Prohibit of January 14, 1997, charged that Clifford and Altman, as directors of CCAH and First American, had caused CCAH to borrow from BCCI beyond the acquisition debt allowed by the 1981 order, and had breached their fiduciary duties by accepting preferential loans and stock profits from BCCI and by failing to disclose BCCI's role in the purchase of the [[National Bank of Georgia]]. The settlement recited that "Clifford has submitted medical opinions to the Board of Governors indicating that because of his advanced age and ill health, there is no reasonable prospect that he will ever participate in any manner in the conduct of the affairs of a bank holding company or insured depository institution," and the two men relinquished 1,802 (Clifford) and 895 (Altman) CCAH shares to the court-appointed trustee of First American or the fiduciaries of BCCI; the payments, the order stated, "are not fines or civil money penalties." The order is dated effective February 1998, four months after Clifford's death, and carries a signature block in his name; the document does not state when he signed it.[^8][^11]
The Federal Reserve's civil proceeding, opened on July 29, 1992, continued after the criminal cases ended. Its Second Amended Notice of Intent to Prohibit of January 14, 1997, charged that Clifford and Altman, as directors of CCAH and First American, had caused CCAH to borrow from BCCI beyond the acquisition debt allowed by the 1981 order, and had breached their fiduciary duties by accepting preferential loans and stock profits from BCCI and by failing to disclose BCCI's role in the purchase of the [[National Bank of Georgia]]. The settlement recited that "Clifford has submitted medical opinions to the Board of Governors indicating that because of his advanced age and ill health, there is no reasonable prospect that he will ever participate in any manner in the conduct of the affairs of a bank holding company or insured depository institution," and the two men relinquished 1,802 (Clifford) and 895 (Altman) CCAH shares to the court-appointed trustee of First American or the fiduciaries of BCCI; the payments, the order stated, "are not fines or civil money penalties." The order is dated effective February 1998, four months after Clifford's death, and carries a signature block in his name; the document does not state when he signed it.[^10][^13]
### USS Liberty, June 1967
Notes of the National Security Council Special Committee meeting of June 9, 1967 record Clifford saying of the attack on the [[USS Liberty Incident|USS Liberty]]: "My concern is that we're not tough enough. Handle as if Arabs or USSR had done it. Manner egregious. Inconceivable that it was accident. 3 strafing passes, 3 torpedo boats. Set forth facts. Punish Israelis responsible." The note-taker, [[Harold H. Saunders]], wrote in the margin next to Clifford's remarks: "President subscribed 100%."[^12][^13]
Notes of the National Security Council Special Committee meeting of June 9, 1967 record Clifford saying of the attack on the [[USS Liberty Incident|USS Liberty]]: "My concern is that we're not tough enough. Handle as if Arabs or USSR had done it. Manner egregious. Inconceivable that it was accident. 3 strafing passes, 3 torpedo boats. Set forth facts. Punish Israelis responsible." The note-taker, [[Harold H. Saunders]], wrote in the margin next to Clifford's remarks: "President subscribed 100%."[^14][^15]
### Footnotes
[^1]: Clifford, Clark, with Richard Holbrooke. *Counsel to the President: A Memoir.* Random House, 1991.
[^2]: Beaty, Jonathan, and S.C. Gwynne. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI.* Random House, 1993.
[^3]: Beaty, Jonathan, and S.C. Gwynne. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI.* Random House, 1993, p. 215.
[^4]: "Charges dropped against Clark Clifford in BCCI case," United Press International, November 30, 1993. https://www.upi.com/Archives/1993/11/30/Charges-dropped-against-Clark-Clifford-in-BCCI-case/6641754635600/
[^5]: "Altman Acquitted on BCCI Counts," *The Washington Post,* August 15, 1993. https://www.washingtonpost.com/archive/politics/1993/08/15/altman-acquitted-on-bcci-counts/33f3090f-0a02-4934-9c81-37f843aaead7/
[^6]: U.S. Senate, Committee on Foreign Relations. *The BCCI Affair: A Report to the Committee on Foreign Relations.* 102nd Congress, 2nd Session, December 1992. (Kerry-Brown Report.)
[^7]: "Saudi to Pay $225 Million in BCCI Settlement," *The Washington Post,* December 24, 1993.
[^8]: Board of Governors of the Federal Reserve System, *In the Matter of Clark M. Clifford and Robert A. Altman, Institution-Affiliated Parties of Credit and Commerce American Holdings, N.V.,* Docket Nos. 92-080-E-I1, 92-080-B-I1, 92-080-CMP-I1, 92-080-E-I2, 92-080-B-I2, 92-080-CMP-I2, consent order, "effective this [day, illegible in the scan] day of February, 1998," with the Second Amended Notice of Intent to Prohibit of January 14, 1997 (Federal Reserve press release of February 3, 1998). https://www.federalreserve.gov/boarddocs/press/enforcement/1998/19980203/Attachment.pdf
[^9]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 6, "BCCI in the United States: Initial Entry." https://irp.fas.org/congress/1992_rpt/bcci/06early.htm
[^10]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 13, "Clark Clifford and Robert Altman." https://irp.fas.org/congress/1992_rpt/bcci/13clifford.htm
[^11]: "Clifford, Altman indicted in BCCI bank fraud," United Press International, July 29, 1992. https://www.upi.com/Archives/1992/07/29/Clifford-Altman-indicted-in-BCCI-bank-fraud/5122712382400/
[^12]: Foreign Relations of the United States, 1964-1968, vol. XIX, Document 236, Notes of a Meeting of the Special Committee of the National Security Council, June 9, 1967 (Saunders's handwritten notes). https://history.state.gov/historicaldocuments/frus1964-68v19/d236
[^13]: Hersh, Seymour M. *The Samson Option: Israel's Nuclear Arsenal and American Foreign Policy*. Random House, 1991. Chapter 12, p. 168, footnote, quoting the same notes from the LBJ Library.
[^3]: Lyndon B. Johnson, "The President's News Conference," January 19, 1968 ("I asked Mr. Clark Clifford to serve as Secretary of Defense this morning, and he has accepted"), The American Presidency Project. https://www.presidency.ucsb.edu/documents/the-presidents-news-conference-1201
[^4]: Lyndon B. Johnson, "Remarks at the Swearing In of Clark Clifford as Secretary of Defense," March 1, 1968, The American Presidency Project. https://www.presidency.ucsb.edu/documents/remarks-the-swearing-clark-clifford-secretary-defense
[^5]: Beaty, Jonathan, and S.C. Gwynne. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI.* Random House, 1993, p. 215.
[^6]: "Charges dropped against Clark Clifford in BCCI case," United Press International, November 30, 1993. https://www.upi.com/Archives/1993/11/30/Charges-dropped-against-Clark-Clifford-in-BCCI-case/6641754635600/
[^7]: "Altman Acquitted on BCCI Counts," *The Washington Post,* August 15, 1993. https://www.washingtonpost.com/archive/politics/1993/08/15/altman-acquitted-on-bcci-counts/33f3090f-0a02-4934-9c81-37f843aaead7/
[^8]: U.S. Senate, Committee on Foreign Relations. *The BCCI Affair: A Report to the Committee on Foreign Relations.* 102nd Congress, 2nd Session, December 1992. (Kerry-Brown Report.)
[^9]: "Saudi to Pay $225 Million in BCCI Settlement," *The Washington Post,* December 24, 1993.
[^10]: Board of Governors of the Federal Reserve System, *In the Matter of Clark M. Clifford and Robert A. Altman, Institution-Affiliated Parties of Credit and Commerce American Holdings, N.V.,* Docket Nos. 92-080-E-I1, 92-080-B-I1, 92-080-CMP-I1, 92-080-E-I2, 92-080-B-I2, 92-080-CMP-I2, consent order, "effective this [day] day of February, 1998," with the Second Amended Notice of Intent to Prohibit of January 14, 1997 (Federal Reserve press release of February 3, 1998). https://www.federalreserve.gov/boarddocs/press/enforcement/1998/19980203/Attachment.pdf
[^11]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 6, "BCCI in the United States: Initial Entry." https://irp.fas.org/congress/1992_rpt/bcci/06early.htm
[^12]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 13, "Clark Clifford and Robert Altman." https://irp.fas.org/congress/1992_rpt/bcci/13clifford.htm
[^13]: "Clifford, Altman indicted in BCCI bank fraud," United Press International, July 29, 1992. https://www.upi.com/Archives/1992/07/29/Clifford-Altman-indicted-in-BCCI-bank-fraud/5122712382400/
[^14]: Foreign Relations of the United States, 1964-1968, vol. XIX, Document 236, Notes of a Meeting of the Special Committee of the National Security Council, June 9, 1967 (Saunders's handwritten notes). https://history.state.gov/historicaldocuments/frus1964-68v19/d236
[^15]: Hersh, Seymour M. *The Samson Option: Israel's Nuclear Arsenal and American Foreign Policy*. Random House, 1991. Chapter 12, p. 168, footnote, quoting the same notes from the LBJ Library.

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10 - PEOPLE/(A-G)/Faisal Saud al-Fulaij.md
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@ -38,15 +38,15 @@ Faisal Saud al-Fulaij was a Kuwaiti businessman who acted as a nominee for the [
### Nominee
In his memo to Abedi of January 30, 1978, Sami wrote: "We have already given the names of Sheikh Kamal Adham and Mr. Fulaig [sic]. We want two other names immediately." Part of the money for Fulaij's share purchases was borrowed from the [[Kuwait International Finance Company]] (KIFCO), which, according to the [[BCCI Kerry-Brown Senate Report|Kerry-Brown Senate Report]], BCCI "purportedly had a 49 percent interest in, but actually owned and controlled through its nominee, Faisal al-Fulaij." Clifford's firm represented him, with [[Bert Lance]], Abedi, BCCI and members of the [[Abu Dhabi]] ruling family, in the litigation brought by Financial General in 1978.[^1] A [[Price Waterhouse]] report to the [[Bank of England]] of June 1991 listed him among "the four investors" used "to keep individual ownership below 5% and to ensure that BCCI's name did not appear."[^3]
In his memo to Abedi of January 30, 1978, Sami wrote: "We have already given the names of Sheikh Kamal Adham and Mr. Fulaig [sic]. We want two other names immediately." Part of the money for Fulaij's share purchases was borrowed from the [[Kuwait International Finance Company]] (KIFCO), which, according to the [[BCCI Kerry-Brown Senate Report|Kerry-Brown Senate Report]], BCCI "purportedly had a 49 percent interest in, but actually owned and controlled through its nominee, Faisal al-Fulaij." Clifford's firm represented him, with [[Bert Lance]], Abedi, BCCI and members of the [[Abu Dhabi]] ruling family, in the litigation brought by Financial General in 1978.[^1] A [[Price Waterhouse]] report to the [[Bank of England]] of June 1991 listed him among "the four investors" used "to keep individual ownership below 5% and to ensure that BCCI's name did not appear."[^3] Clark Clifford's written testimony to the Senate listed Fulaij among the defendants his firm was retained to represent, and Clifford testified that the representation began in February 1978.[^4]
### The 1981 Hearing
At the Federal Reserve hearing of April 23, 1981, Fulaij followed [[Kamal Adham]] in assuring the regulators that future relations with BCCI would be for the new management to decide. According to Robert Altman, Fulaij had asked his representatives to find investments in the [[United States]] and BCCI had brought Financial General to their attention. When the Federal Reserve's counsel, Robert Mannion, asked whether it was a coincidence that BCCI had first analysed Financial General for Adham and then advised "several of their investment clients" to invest in it, the transcript records "MR. FULAIJ: (Nods in the affirmative.)" and Adham's reply, "That is very possible. Such things happen in our parts of the world." Adham told the Federal Reserve that he had not met Fulaij for ten years; the Senate report called this false and said the two had acted together as BCCI nominees in dealings in the shares of BCCI's oil company, [[Attock Oil]].[^1]
The Federal Reserve found in 1991 that Adham, Fulaij, [[A. R. (Abdul Raouf) Khalil|Khalil]] and the other Middle Eastern nominees "had secretly done precisely what the Federal Reserve had sought to assure they would not do." After the acquisition BCCI added capital to First American partly through loans to its nominees Fulaij, Khalil and Shorafa, and in later planning for the purchase of the Eagle Bank in Florida, Naqvi and BCCI's New York manager [[Abdur Sakhia]] discussed using Fulaij as the nominee in place of Pharaon, in Altman's presence.[^1][^4][^5]
The Federal Reserve found in 1991 that Adham, Fulaij, [[A. R. (Abdul Raouf) Khalil|Khalil]] and the other Middle Eastern nominees "had secretly done precisely what the Federal Reserve had sought to assure they would not do." After the acquisition BCCI added capital to First American partly through loans to its nominees Fulaij, Khalil and Shorafa, and in later planning for the purchase of the Eagle Bank in Florida, Naqvi and BCCI's New York manager [[Abdur Sakhia]] discussed using Fulaij as the nominee in place of Pharaon, in Altman's presence.[^1][^5][^6]
The Senate report also recorded that the [[Central Intelligence Agency|CIA]] did not tell the Federal Reserve that Adham and Fulaij had been the subjects of a [[Securities and Exchange Commission]] inquiry under the [[Foreign Corrupt Practices Act]] into arms sales to [[Saudi Arabia]] by [[Boeing]] and [[Lockheed Corporation|Lockheed]].[^6]
The Senate report also recorded that the [[Central Intelligence Agency|CIA]] did not tell the Federal Reserve that Adham and Fulaij had been the subjects of a [[Securities and Exchange Commission]] inquiry under the [[Foreign Corrupt Practices Act]] into arms sales to [[Saudi Arabia]] by [[Boeing]] and [[Lockheed Corporation|Lockheed]].[^7]
### Indictment
@ -57,6 +57,7 @@ On July 29, 1992, the New York County District Attorney, [[Robert Morgenthau]],
[^1]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 6, "BCCI in the United States: Initial Entry." https://irp.fas.org/congress/1992_rpt/bcci/06early.htm
[^2]: "Clifford, Altman indicted in BCCI bank fraud," United Press International, July 29, 1992. https://www.upi.com/Archives/1992/07/29/Clifford-Altman-indicted-in-BCCI-bank-fraud/5122712382400/
[^3]: Kerry and Brown, *The BCCI Affair,* ch. 14, "Abu Dhabi: BCCI's Founding and Majority Stockholders." https://irp.fas.org/congress/1992_rpt/bcci/14abudhabi.htm
[^4]: Kerry and Brown, *The BCCI Affair,* ch. 7, "BCCI in the United States: Later Acquisitions." https://irp.fas.org/congress/1992_rpt/bcci/07later.htm
[^5]: Kerry and Brown, *The BCCI Affair,* ch. 13, "Clark Clifford and Robert Altman." https://irp.fas.org/congress/1992_rpt/bcci/13clifford.htm
[^6]: Kerry and Brown, *The BCCI Affair,* ch. 11, "BCCI, the CIA and Foreign Intelligence." https://irp.fas.org/congress/1992_rpt/bcci/11intel.htm
[^4]: Kerry and Brown, *The BCCI Affair,* ch. 6, "BCCI in the United States: Initial Entry" (Clifford's written testimony listing Faisal al Fulaij among the defendants his firm was retained to represent, note 44; Clifford's testimony that the representation began in February 1978, note 43). https://irp.fas.org/congress/1992_rpt/bcci/06early.htm
[^5]: Kerry and Brown, *The BCCI Affair,* ch. 7, "BCCI in the United States: Later Acquisitions." https://irp.fas.org/congress/1992_rpt/bcci/07later.htm
[^6]: Kerry and Brown, *The BCCI Affair,* ch. 13, "Clark Clifford and Robert Altman." https://irp.fas.org/congress/1992_rpt/bcci/13clifford.htm
[^7]: Kerry and Brown, *The BCCI Affair,* ch. 11, "BCCI, the CIA and Foreign Intelligence." https://irp.fas.org/congress/1992_rpt/bcci/11intel.htm

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10 - PEOPLE/(A-G)/Jonathan Beaty.md
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@ -30,15 +30,17 @@ Jonathan Beaty is an American journalist who, with [[S. C. Gwynne]], wrote the *
### "The Dirtiest Bank of All"
The archived copy of the article on the Time website carries the byline "TIME Staff" and the date July 29, 1991.[^3]
The article carried the byline "Jonathan Beaty and S.C. Gwynne/New York" and a deck describing "How B.C.C.I. and its black network became a financial supermarket for crooks and spies" and "how the U.S. is trying to cover up its role." It opened with two unnamed sources. A former senior officer of the bank said: "I could tell you what you want to know, but I must worry about my wife and family," adding that "they could be killed." A Manhattan investigator said: "We better not talk about this over the phone. We've found some bugs in offices that haven't been put there by law enforcement."[^1]
The story called BCCI "the $20 billion rogue empire that regulators in 62 countries shut down early this month," and stated that "From interviews with sources close to B.C.C.I., TIME has pieced together a portrait of a clandestine division of the bank called the 'black network,'" which it described as a 1,500-employee unit "operating primarily out of the bank's offices in [[Karachi]], [[Pakistan]]," that used "sophisticated spy equipment and techniques, along with bribery, extortion, kidnapping and even, by some accounts, murder." It reported, citing its own earlier reporting that month, that the [[National Security Council]] had used BCCI "to funnel money for the Iran-contra deals" and that the [[Central Intelligence Agency]] "maintained accounts in B.C.C.I. for covert operations," and that investigators had said the [[Defense Intelligence Agency]] kept "a slush-fund account" at the bank.[^1]
A self-described former operative, given the pseudonym "Mustafa," told the magazine: "I was recruited by the black network in the early 1980s." He described training in Pakistan and an operation of April 1989 in which crates from a Colombian container ship were unloaded at Karachi and flown out aboard an unmarked 707 to [[Czechoslovakia]] and then to the [[United States]], supervised by an American the operatives believed to be a CIA agent. The article quoted the Manhattan district attorney, [[Robert Morgenthau]]: "We have had no cooperation from the Justice Department since we first asked for records in March 1990. In fact they are impeding our investigation, and Justice Department representatives are asking witnesses not to cooperate with us." It also stated that the [[Department of Justice|Justice Department]]'s main probe of BCCI was "being handled by a sole Assistant U.S. Attorney in [[Tampa, Florida|Tampa]], who has recently been assigned another major case," and that "one of B.C.C.I.'s Washington representatives distributed millions of dollars in payoffs to U.S. officials during the past decade."[^1][^3]
A self-described former operative, given the pseudonym "Mustafa," told the magazine: "I was recruited by the black network in the early 1980s." He described training in Pakistan and an operation of April 1989 in which crates from a Colombian container ship were unloaded at Karachi and flown out aboard an unmarked 707 to [[Czechoslovakia]] and then to the [[United States]], supervised by an American the operatives believed to be a CIA agent. The article quoted the Manhattan district attorney, [[Robert Morgenthau]]: "We have had no cooperation from the Justice Department since we first asked for records in March 1990. In fact they are impeding our investigation, and Justice Department representatives are asking witnesses not to cooperate with us." It also stated that the [[Department of Justice|Justice Department]]'s main probe of BCCI was "being handled by a sole Assistant U.S. Attorney in [[Tampa, Florida|Tampa]], who has recently been assigned another major case," and that "one of B.C.C.I.'s Washington representatives distributed millions of dollars in payoffs to U.S. officials during the past decade."[^1][^4]
### The Senate Response
The report of Senators [[John Kerry]] and [[Hank Brown]] to the [[Senate Foreign Relations Committee]] addressed the story directly, dating it "a Time magazine cover-story on BCCI on August 15, 1991." The report stated that "None of the BCCI officers interviewed by the Senate claimed to have knowledge of a 'black network' of intelligence operatives, arms dealers, drug traffickers, burglars, or assassins employed by BCCI," and that "They declared, to a person, that they did not believe such a network existed at the bank," though several suggested that a smaller team "carrying out Abedi's most secret missions" could have existed.[^4] The former United States Attorney in Miami, [[Dexter Lehtinen]], whose request to bring BCCI-related indictments in Miami was held back by the Justice Department until November 1991, told the subcommittee, implying that the reversal was the result of Congressional and media pressure: "There had been significant, Time Magazine and New York Times articles, very critical of the Department."[^5] See [[BCCI Kerry-Brown Senate Report]].
The report of Senators [[John Kerry]] and [[Hank Brown]] to the [[Senate Foreign Relations Committee]] addressed the story directly, dating it "a Time magazine cover-story on BCCI on August 15, 1991." The archived article is dated July 29, 1991.[^3] The report stated that "None of the BCCI officers interviewed by the Senate claimed to have knowledge of a 'black network' of intelligence operatives, arms dealers, drug traffickers, burglars, or assassins employed by BCCI," and that "They declared, to a person, that they did not believe such a network existed at the bank," though several suggested that a smaller team "carrying out Abedi's most secret missions" could have existed.[^5] The former United States Attorney in Miami, [[Dexter Lehtinen]], whose request to bring BCCI-related indictments in Miami was held back by the Justice Department until November 1991, told the subcommittee, implying that the reversal was the result of Congressional and media pressure: "There had been significant, Time Magazine and New York Times articles, very critical of the Department."[^6] See [[BCCI Kerry-Brown Senate Report]].
### The Outlaw Bank
@ -48,6 +50,7 @@ The report of Senators [[John Kerry]] and [[Hank Brown]] to the [[Senate Foreign
[^1]: Beaty, Jonathan, and S. C. Gwynne. "B.C.C.I.: The Dirtiest Bank of All," *Time,* July 29, 1991. https://content.time.com/time/subscriber/article/0,33009,973481,00.html ; archive copy https://time.com/archive/6718229/b-c-c-i-the-dirtiest-bank-of-all/
[^2]: Beaty, Jonathan, and S. C. Gwynne. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI.* New York: Random House, 1993. Internet Archive catalogue record, identifier outlawbank00jona. https://archive.org/details/outlawbank00jona
[^3]: Beaty, Jonathan, and S. C. Gwynne. "B.C.C.I.: The Dirtiest Bank of All," *Time,* July 29, 1991, p. 8 of the online edition. https://content.time.com/time/subscriber/article/0,33009,973481-8,00.html
[^4]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 4, "BCCI's Criminality." https://irp.fas.org/congress/1992_rpt/bcci/04crime.htm
[^5]: Kerry and Brown, *The BCCI Affair,* ch. 8, "BCCI and Law Enforcement: The Justice Department and the US Customs Service." https://irp.fas.org/congress/1992_rpt/bcci/08just.htm
[^3]: "B.C.C.I.: The Dirtiest Bank of All," *Time*, July 29, 1991. Archive copy, time.com/archive/6718229, byline "TIME Staff." https://time.com/archive/6718229/b-c-c-i-the-dirtiest-bank-of-all/
[^4]: Beaty, Jonathan, and S. C. Gwynne. "B.C.C.I.: The Dirtiest Bank of All," *Time,* July 29, 1991, p. 8 of the online edition. https://content.time.com/time/subscriber/article/0,33009,973481-8,00.html
[^5]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 4, "BCCI's Criminality." https://irp.fas.org/congress/1992_rpt/bcci/04crime.htm
[^6]: Kerry and Brown, *The BCCI Affair,* ch. 8, "BCCI and Law Enforcement: The Justice Department and the US Customs Service." https://irp.fas.org/congress/1992_rpt/bcci/08just.htm

18
10 - PEOPLE/(A-G)/Kamal Adham.md
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@ -24,7 +24,12 @@ relations:
with: "[[United States Department of Justice]]"
reverse: true
end: 1992-07-29
fn: 16
fn: 17
- type: investigated
with: "[[Securities and Exchange Commission]]"
reverse: true
role: "probe under the Foreign Corrupt Practices Act into Boeing and Lockheed arms sales to Saudi Arabia; Federal Reserve staff learned of it in 1981"
fn: 15
---
Kamal Adham was the former head of [[Saudi Arabian intelligence]] and brother-in-law of the late [[King Faisal]]. He was a significant shareholder in [[Bank of Credit and Commerce International|BCCI]] and [[First American Bank]]. Adham was a shrewd and jovial figure who straddled the worlds of Middle Eastern business and politics for decades. He was considered one of the true inside power players of the [[Middle East]].[^1]
@ -54,13 +59,15 @@ Adham was one of four original investors, with [[Faisal Saud al-Fulaij]], Sheikh
In a letter to the Federal Reserve of April 10, 1991, Adham gave another account of the investment's origin: a friend, Hasan Yassin, had told him Financial General would be a good investment, and he had brought it to BCCI "as his business agent." The Senate report called this "completely inconsistent" with the accounts of [[Bert Lance]], the *[[The Washington Post|Washington Post]]* and Robert Altman, and noted that Lance had never heard of Yassin.[^12]
The Senate report states that the Federal Reserve asked the Central Intelligence Agency in 1981 whether it held derogatory information on the Middle Eastern shareholders of CCAH. The CIA replied that it had none, and did not tell the Federal Reserve that Adham and [[A. R. (Abdul Raouf) Khalil|Abdul Raouf Khalil]] were intelligence liaisons of the United States. Adham had also been the subject of a [[Securities and Exchange Commission]] probe under the [[Foreign Corrupt Practices Act]] into [[Boeing]] and Lockheed arms sales to Saudi Arabia. The report states that Federal Reserve staff learned of the intelligence contacts and of the commission's probe into Adham's and Faisal al-Fulaij's alleged receipt of bribes in 1981.[^15]
### Intelligence Background
The Senate report recorded that the CIA, asked about the CCAH shareholders, told the Federal Reserve it had no derogatory information on them, without telling it that Adham and [[A. R. (Abdul Raouf) Khalil|Abdul Raouf Khalil]] were "the past and then-current Saudi intelligence liaisons to the United States," or that Adham and Fulaij had been the subject of a [[Securities and Exchange Commission]] inquiry under the [[Foreign Corrupt Practices Act]] into arms sales to Saudi Arabia by [[Boeing]] and [[Lockheed Corporation|Lockheed]]. Paul Volcker, who as chairman of the Federal Reserve signed the 1981 approval, testified in 1991 that he "wasn't aware" of Adham's intelligence background and that it "might send an eyebrow or two up." The Virginia bank regulator Sidney Bailey asked the [[State Department]] and the CIA for information on the shareholders and received none; "at the time," the report found, "the CIA knew precisely who Adham was."[^12][^15]
The Senate report recorded that the CIA, asked about the CCAH shareholders, told the Federal Reserve it had no derogatory information on them, without telling it that Adham and Abdul Raouf Khalil were "the past and then-current Saudi intelligence liaisons to the United States," or that Adham and Fulaij had been the subject of a Securities and Exchange Commission inquiry under the Foreign Corrupt Practices Act into arms sales to Saudi Arabia by Boeing and [[Lockheed Corporation|Lockheed]]. Paul Volcker, who as chairman of the Federal Reserve signed the 1981 approval, testified in 1991 that he "wasn't aware" of Adham's intelligence background and that it "might send an eyebrow or two up." The Virginia bank regulator Sidney Bailey asked the [[State Department]] and the CIA for information on the shareholders and received none; "at the time," the report found, "the CIA knew precisely who Adham was."[^12][^16]
### Plea
On July 29, 1992, the [[United States Department of Justice|Justice Department]] announced that Adham and his accountant, Sayed Jawhary, had pleaded guilty to charges arising from the BCCI case, and that Adham had agreed to cooperate with investigators and to pay 105 million dollars in reparations and fines.[^16]
On July 29, 1992, the [[United States Department of Justice|Justice Department]] announced that Adham and his accountant, Sayed Jawhary, had pleaded guilty to charges arising from the BCCI case, and that Adham had agreed to cooperate with investigators and to pay 105 million dollars in reparations and fines.[^17]
### Footnotes
@ -78,5 +85,6 @@ On July 29, 1992, the [[United States Department of Justice|Justice Department]]
[^12]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 6, "BCCI in the United States: Initial Entry." https://irp.fas.org/congress/1992_rpt/bcci/06early.htm
[^13]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 14, "Abu Dhabi: BCCI's Founding and Majority Stockholders." https://irp.fas.org/congress/1992_rpt/bcci/14abudhabi.htm
[^14]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 13, "Clark Clifford and Robert Altman." https://irp.fas.org/congress/1992_rpt/bcci/13clifford.htm
[^15]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 11, "BCCI, the CIA and Foreign Intelligence." https://irp.fas.org/congress/1992_rpt/bcci/11intel.htm
[^16]: "Clifford, Altman indicted in BCCI bank fraud," United Press International, July 29, 1992. https://www.upi.com/Archives/1992/07/29/Clifford-Altman-indicted-in-BCCI-bank-fraud/5122712382400/
[^15]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 11, "BCCI, the CIA and Foreign Intelligence" (the CIA's reply to the Federal Reserve; the Foreign Corrupt Practices Act probe; text following notes 10 to 12). https://irp.fas.org/congress/1992_rpt/bcci/11intel.htm
[^16]: Kerry, Senator John, and Senator Hank Brown. *The BCCI Affair: A Report to the Committee on Foreign Relations, United States Senate.* December 1992, ch. 11, "BCCI, the CIA and Foreign Intelligence." https://irp.fas.org/congress/1992_rpt/bcci/11intel.htm
[^17]: "Clifford, Altman indicted in BCCI bank fraud," United Press International, July 29, 1992. https://www.upi.com/Archives/1992/07/29/Clifford-Altman-indicted-in-BCCI-bank-fraud/5122712382400/

11
10 - PEOPLE/(A-G)/Lawrence Eagleburger.md
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@ -21,17 +21,20 @@ Lawrence Eagleburger was president of [[Kissinger Associates]] from 1984 to 1989
The [[Banca Nazionale del Lavoro]] was a client of Kissinger Associates while he was its president. In 1986 he helped establish LBS, the [[New York City|New York]] subsidiary of [[Ljubljanska Banka]] of [[Yugoslavia]], and sat on its board until he returned to government. Representative [[Henry B. Gonzalez]] quoted a [[Federal Reserve]] inspection report showing that from 1986 to 1989 the Italian bank supplied more than 20 percent of LBS's New York business. At a meeting in New York in 1987 [[Henry A. Kissinger|Henry Kissinger]], [[Brent Scowcroft]], Eagleburger, and the firm's economist [[Alan Stoga]] advised the bank's officers. Between 1985 and 1989 its [[Atlanta]] branch lent [[Iraq]] some five billion dollars off its books.[^1][^2]
The Italian Senate commission of inquiry's final report of April 22, 1992 described Eagleburger as an adviser to the Ljubljanska Banka, and named Scowcroft and Kissinger as BNL consultants.[^3]
### The State Department
As acting secretary on May 10, 1989, Eagleburger signed the certificate that allowed the Iraqi-owned [[Matrix Churchill]] Corporation of [[Ohio]] to open a branch in [[Baghdad]]. That fall, when the [[United States Department of the Treasury|Treasury]] and the [[Office of Management and Budget]] opposed a further billion dollars in [[Commodity Credit Corporation Iraq Program|agricultural credit guarantees]] for Iraq, he "made phone calls and sent letters to his counterparts" to overcome them.[^2][^3]
As acting secretary on May 10, 1989, Eagleburger signed the certificate that allowed the Iraqi-owned [[Matrix Churchill]] Corporation of [[Ohio]] to open a branch in [[Baghdad]]. That fall, when the [[United States Department of the Treasury|Treasury]] and the [[Office of Management and Budget]] opposed a further billion dollars in [[Commodity Credit Corporation Iraq Program|agricultural credit guarantees]] for Iraq, he "made phone calls and sent letters to his counterparts" to overcome them.[^2][^4]
### Testimony
Before the [[House Banking Committee]] in 1992 he said: "Quite frankly, the selective disclosure, out of context, of classified documents has led, knowingly or otherwise, to distortions of the record, half-truths, and outright falsehoods, all combined into spurious conspiracy theories and charges of a cover-up." Of the bank he said: "Although the records at Kissinger Associates indicate that I may have attended one luncheon in 1986 at which two representatives of BNL Rome were present, I do not recall this luncheon nor any substantive meetings, conversations, or other contacts with anyone from BNL." Representative [[Bernie Sanders]] asked him about a transfer of American bombs from [[Saudi Arabia]] to Iraq in 1986. He answered "No, I am not aware of anything," conferred with an aide, and said he would reply in writing. "The answer, when it was eventually supplied in writing, confirmed the Saudi transfer." The special counsel [[Frederick Lacey]] reported in December 1992 that Scowcroft and Eagleburger "came into contact with BNL management" at the firm and that he had seen nothing to suggest they knew of the Atlanta loans.[^2][^4]
Before the [[House Banking Committee]] in 1992 he said: "Quite frankly, the selective disclosure, out of context, of classified documents has led, knowingly or otherwise, to distortions of the record, half-truths, and outright falsehoods, all combined into spurious conspiracy theories and charges of a cover-up." Of the bank he said: "Although the records at Kissinger Associates indicate that I may have attended one luncheon in 1986 at which two representatives of BNL Rome were present, I do not recall this luncheon nor any substantive meetings, conversations, or other contacts with anyone from BNL." Representative [[Bernie Sanders]] asked him about a transfer of American bombs from [[Saudi Arabia]] to Iraq in 1986. He answered "No, I am not aware of anything," conferred with an aide, and said he would reply in writing. "The answer, when it was eventually supplied in writing, confirmed the Saudi transfer." The special counsel [[Frederick Lacey]] reported in December 1992 that Scowcroft and Eagleburger "came into contact with BNL management" at the firm and that he had seen nothing to suggest they knew of the Atlanta loans.[^2][^5]
### Footnotes
[^1]: Gonzalez, Henry B. "Kissinger Associates, Scowcroft, Eagleburger, Stoga, Iraq, and BNL," *Congressional Record,* House, April 28, 1992, pp. H2694-H2701.
[^2]: Friedman, Alan. *Spider's Web: The Secret History of How the White House Illegally Armed Iraq*. Bantam, 1993, pp. 145, 223-225.
[^3]: Gonzalez, Henry B. "Details on Iraq's Procurement Network," *Congressional Record,* House, August 10, 1992.
[^4]: Lacey, Frederick B. "The Banca Nazionale del Lavoro Investigation: Report of the Independent Counsel," reproduced in House Committee on Banking, Finance and Urban Affairs, Serial No. 103-95, pp. 514-15.
[^3]: Senato della Repubblica, X Legislatura, Doc. XXII-bis n. 4 (Relazione conclusiva, relatore Carta), April 22, 1992, p. 23. https://www.senato.it/documenti/repository/relazioni/archiviostorico/commissioni/X%20LEG_BNL.ATLANTA_DOC_RELAZ/X_%20LEG_BNL-ATLANTA_DOC%20XXIIBIS_4_22.4.92.pdf
[^4]: Gonzalez, Henry B. "Details on Iraq's Procurement Network," *Congressional Record,* House, August 10, 1992.
[^5]: Lacey, Frederick B. "The Banca Nazionale del Lavoro Investigation: Report of the Independent Counsel," reproduced in House Committee on Banking, Finance and Urban Affairs, Serial No. 103-95, pp. 514-15.

18
10 - PEOPLE/(A-G)/William J. Casey.md
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@ -17,10 +17,17 @@ tags:
- OctoberSurprise
- IranContra
- DarkAllianceInvestigation
summary: "William J. Casey was Reagan's 1980 campaign manager and CIA Director from 1981 to 1987 who, among other disputed roles, is alleged to have secretly negotiated with Iranian representatives in Madrid and Paris in 1980 to delay the release of American hostages past Election Day -- the core allegation of the October Surprise -- and who died of a brain tumor in May 1987 as the Iran-Contra scandal unfolded."
summary: "Reagan's 1980 campaign manager and CIA Director from 1981 to 1987, alleged to have negotiated with Iranian representatives in 1980 to delay the release of American hostages; died in May 1987 as Iran-Contra unfolded."
born: 1913-03-13
died: 1987-05-06
location: "Elmhurst, Queens, New York"
relations:
- type: head_of
with: "[[Securities and Exchange Commission]]"
role: "chairman"
start: 1971-04-14
end: 1973-02-02
fn: 16
---
William Joseph Casey was born March 13, 1913, in Elmhurst, Queens, New York. He attended [[St. John's University]] and Fordham Law School, becoming a corporate and tax attorney. During World War II he served in the [[Office of Strategic Services]] (OSS) under [[William J. Donovan|William "Wild Bill" Donovan]], rising to head the OSS's Secret Intelligence operations in Europe and coordinating the infiltration of agents into Nazi-controlled territory. After the war he became a wealthy lawyer and author of tax shelter guides. President [[Richard Nixon|Nixon]] appointed him Chairman of the [[Securities and Exchange Commission]] in 1971, a post he held through 1973. He managed [[Ronald Reagan]]'s 1980 presidential campaign. Reagan appointed him [[Director of Central Intelligence]] in January 1981, and he served as DCI until resigning due to illness in January 1987. He died May 6, 1987, at a hospital in Glen Cove, New York, having suffered a seizure in December 1986 and subsequently undergone brain surgery. He was subpoenaed to testify before the Senate [[Iran-Contra Affair|Iran-Contra]] investigating committee but died before he could appear.[^1]
@ -64,6 +71,12 @@ Casey is listed on the advisory board of the [[National Intelligence Study Cente
The Senate Select Committee on Intelligence, in its October 24, 1991 report on the nomination of Gates, named Casey as one of three CIA officials involved in the recruitment and selection of [[James D. Theberge]] for the Senior Review Panel, with Deputy Director [[John McMahon]] and Executive Director [[James Taylor]].[^12] The report states that "the Committee's documentary evidence makes clear that Director Casey was the CIA official most instrumental in recruiting Mr. Theberge."[^12] The report records that Theberge disclosed his consulting work for a Cardoen subsidiary in the personal history statement he submitted to the CIA in December 1985, and that he was hired on a three-days-per-week basis.[^12] CIA visitor records held in the reading room list Theberge as meeting the director at headquarters in November 1984 and, as "Ambassador Theberge," calling on the director on September 23, 1985.[^13] A routing sheet of August 12, 1985 confirms a courtesy call on the director at 1100 hours on August 14, 1985, twelve days after Theberge left his post in Chile, stating that he "has completed his tour in Chile and has no particular items to discuss."[^14] In a memorandum of August 19, 1985 titled "Soviet Game Plan," Casey told the Vice Chairman of the [[National Intelligence Council]]: "You will get in touch with Theberge, talk about the project generally, see what he has to contribute and perhaps have him do some work on the Latin America phase of it."[^15]
### Securities and Exchange Commission, 1971 to 1973
Casey served as chairman of the Securities and Exchange Commission from April 14, 1971 to February 2, 1973.[^16] During his chairmanship the commission was investigating the 1970 takeover of [[Investors Overseas Services]] by [[International Controls Corporation]]. The complaint filed in November 1972 described transfers of International Controls assets to entities controlled by [[Robert Vesco]].[^17]
The New Jersey Supreme Court's disciplinary opinion on [[Harry L. Sears]], a former majority leader of the New Jersey Senate, records that Sears conveyed Vesco's requests to [[John N. Mitchell]], then attorney general, in two letters and three meetings, and that Vesco hoped Mitchell could induce Casey "to monitor and limit the investigation." The opinion records that Mitchell telephoned Casey and arranged a meeting between Sears and the chairman. At that meeting Casey gave assurances that International Controls could respond to the investigation, and that he would personally review its claims of SEC harassment.[^18]
### Footnotes
[^1]: Persico, Joseph E. *Casey: From the OSS to the CIA*. Viking, 1990.
@ -81,3 +94,6 @@ The Senate Select Committee on Intelligence, in its October 24, 1991 report on t
[^13]: Central Intelligence Agency, "American Ambassadors" visitor log, November 1984 (1045), CREST document CIA-RDP93-00415R000100040012-4, https://archive.org/details/cia-readingroom-document-cia-rdp93-00415r000100040012-4; visitor record, September 23, 1985 (1645), CREST document CIA-RDP93-00415R000200230005-0, https://archive.org/details/cia-readingroom-document-cia-rdp93-00415r000200230005-0.
[^14]: Central Intelligence Agency, "DCI 14 August 1985 Meeting with Mr. James D. Theberge, Former U.S. Ambassador to Chile," August 12, 1985, CREST document CIA-RDP87M00539R000801050023-0. https://www.cia.gov/readingroom/document/cia-rdp87m00539r000801050023-0
[^15]: Central Intelligence Agency, "Soviet Game Plan," memorandum from the Director of Central Intelligence to the Vice Chairman, National Intelligence Council, August 19, 1985, signed William J. Casey, CREST document CIA-RDP97M00248R000500220030-9. https://archive.org/details/cia-readingroom-document-cia-rdp97m00248r000500220030-9
[^16]: U.S. Securities and Exchange Commission, "Historical Summary of Chairmen and Commissioners" (William Casey, Chairman, April 14, 1971 to February 2, 1973). https://www.sec.gov/about/sec-commissioners/sec-historical-summary-chairmen-commissioners
[^17]: U.S. Securities and Exchange Commission, News Digest, November 28, 1972 (complaint of November 27, 1972 against Robert L. Vesco and 41 other defendants; transfers from International Controls Corp.; purchase in early 1971 of 6,000,000 shares of Investors Overseas Services). https://www.sec.gov/news/digest/1972/dig112872.pdf
[^18]: In re Sears, 71 N.J. 175 (1976) (Supreme Court of New Jersey, disciplinary opinion; the requests conveyed by Sears to Mitchell, and the meeting Mitchell arranged between Sears and Casey). https://static.case.law/nj/71/cases/0175-01.json