Bush Stock Fraud and his link to

BCCI

In this section I explore the connections concerning George Bush II's

ineptitude as a businessman, a man who should have been investigated

for stock fraud and insider trading, as well as his connection to the

now defunct bank, BCCI. BCCI funneled money to Bush to bail out his

company, was alleged to have laundered drug money and later collapsed

in a bank fraud scandal.

Bush was a failed businessman. Every Business he founded folded. The

one successful venture he ever had was one he bought a part ownership

share in the Texas Rangers Baseball team. However, that money was

fraudently obtained from when he sold his share in Harken Energy

stock, just before the company's stock price folded.

Bush was investigated by the SEC for insider trading, but the charges

were dropped. It turns out that the head of the SEC was appointed by

Bush's Father, who was president at the time.

In 1977 Bush founded his first company, Arbusto Energy. Bush's company

struggled and never found any oil. Then Phillip Uzielli a friend of

James Baker bailed Bush out. He gave Bush 1 million dollars in

exchange for 10% of the company. However, Arbusto Energy was only

worth $382,000 according to Time magazine. Uzielli paid 26 times the

market price of Arbusto for his 10% share. Obviously he was paying for

influence.

In 1984 Bush merged Arbusto with another one of his companies,

Spectrum 7. In 1985, Spectrum 7 lost 1.6 million dollars. Bush was

doomed for failure. The oil boom in Texas had long ended. The next

year Spectrum 7 owed over 3 million dollars. Then as if there was

really a stroke of luck, Billionaire financier George Soros bailed him

out and bought his company for 2.25 million. Bush made 600,000 dollars

out of the deal, including a seat on the board of directors making

120,000 dollars a year. In 1989 after Spectrum 7 merged with Harken

energy, Harken lost 12 million dollars. In 1990 Harken lost 40 million

dollars. (Unger, 118)

On June 22nd 1990 Bush sold 212,140 shares of Harkens stock for

$848,560. It turns out Harken's second quarter losses were 23 million

dollars. It was at this point that the SEC decided to investigate Bush

for insider trading. However Bush declined to hand over any documents

citing Attorney Client privilege. August 21st 1991 the SEC decided not

to charge Bush with insider trading.

It turns out that the Chairman of the SEC, Richard Breedon, was a

former lawyer from James Baker's law firm Baker-Botts, and had been

nominated by Bush's Father, the President at the time, to the post as

head of the SEC. (124) James Baker was Bush's father's Secretary of

State. Furthermore the SEC's general counsel, James Doty also belonged

to James Baker's lawfirm. Doty later recused himself. Doty also

represented Bush when he tried to buy the Texas Rangers Baseball team.

Bush's lawyer Robert Jordan was law partners with Doty and Breedon in

the Baker-Botts lawfirm. Bush later appointed him to be ambassador to

Saudi Arabia.

Source: Craig Unger, "House of Bush House of Saud"

It was Paul Krugman, the syndicated columnist for the new york times,

who said that: "Mr. Bush profited personally from aggressive

accounting identical to recent scams [Enron and Arthur Anderson] that

have shocked the nation."

Paul Krugman, "Succeeding in Business," New York Times, July 7, 2002

Obviously Bush circumvented what it takes to achieve the american

dream. He was immune from failure because his father secured investors

to invest in a failing company and when the company folded Bush's

father, the president sheilded him from sanctions by the SEC. Needless

to say the SEC was also packed with Bush supporters. The fact that the

investigation was riddled with conflicts of interests says alot about

the respect that the Bush dynasty has for the rule of law when it

comes to themselves.

Bush was also tied to a bank called BCCI: a bank prosecuted for fraud

and linked to the drug trade

Bank of Credit Commerce International (BCCI)

biggest share holder, Khalid bin Mafouz, (indicted for fraud) founded

by Agha Hasan Abedi notable fact: funneled money to George W. Bush

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History Of BCCI and its Connection to George Bush

At one time BCCI was the fastest growing bank in the world. In 1972 it

was worth 200 million. In 1977 it was worth 2 billion. BCCI laundered

Saudi money to Iraq to faccilitate arms purchases. (78) It was also

used by the US and Saudi Arabia to funnel money to the Afghani

Mujahadin, (112) and the Nicaraguan Contras, the latter were known

drug traffikers. (Unger, 34) BCCI also funneled money to bail out

President George W. Bush's failing company, Harken energy. (112)It was

Arkansas investment banker, Jackson Stephens who managed to raise 25

million to bail out Bush. Money was wired to Bush through the Union

Bank of Switzerland. UBS was linked to BCCI via a joint venture in a

Geneva bank.(121) Bush was also bailed out by, Abdullah Taha Bakhsh.

His investment gave him 17.6% equity in Bush's company. He was also

connected to BCCI, via his control of the Saudi Finance company which

was partly owned by BCCI shareholders.(121) He was also business

associates of Khalid bin Mafouz.

The 1992 Senate investigation into BCCI noted that their common

business practices were to operate through, "shell corporations, bank

confidentiality, and secrecy havens,, layering of corporate structure,

front men and nominees,..kickbacks and bribes, intimidation of

witnesses, and retention of well placed insiders to discourage

govermental action." (121-122)

There were also credible reports that suggested BCCI laundered drug

money and that the Justice Dept. impeded Congressional investigations

regarding BCCI's link to drug traffiking.(126)

BCCI went out of business in 1991.

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see Bert Lance

also see a Wall Street Journal article, "Family Ties" written by

Thomas Petzinger, Peter Truell, and Jill Abramson pg. A1

Also see:

"Outlaw Bank," Financial Times, July 13th, 1992

The BCCI Affair: A Report to the Committee on Foreign Relations,

Senator John Kerry, and Sen. Hank Brown, December 1992, 102nd

Congress, 2nd session,, Senate print 102-140

Google search terms:

James Bath, BCCI, Ghaith Pharon, Sheik Zayed bin Sultan al-Nahayan

(United Arab Emirates)

James Bath was friends with, James Baker III, and Bush when he served

in the Texas National Guard. He was also business associates with

Khalid bin Mafouz. Bath was also Salem Bin Laden's personal

representative to America when hefunneled 50,000 dollars to bush to

help him set up Arbusto energy in 1978 and 1979.

Book Source: Unger, Craig. "House of Bush House of Saud," 2004

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BCCI The Bush CIA drug bank

http://www.geocities.com/s011023/The_BCCI_Debacle.html

Bush Stock Fraud and his link to BCCI

BACK HOME

BCCI: THE ARABS AND BUSH'S DRUG BANK?

BCCI FUNNELED MONEY TO BUSH'S COMPANY HARKEN. BCCI LAUNDERED

PANAMANIAN & COLUMBIAN DRUG MONEY, ARMS SALES TO PAKISTAN, ACTED AS A

BANKER TO THE ABU NIDAL TERRORIST ORGANIZATION, 'MANAGED

PROSTITUTION,' & FUNNELED MONEY TO THE (DRUG RUNNING CONTRA DEATH

SQUADS. <--(GHWB'S PET PROJECT!))

EXCERPTS from: "The BCCI Affair - BCCI's Criminality"

from (Federation of American Scientists)

Source: BCCI's Criminality

A SHOCKING DISCOVERY

(BCCI: management of prostitution) [Notable Excerpt]

"According to one U.S. investigator with substantial knowledge of

BCCI's activities, some BCCI officials have acknowledged that some of

the females provided some members of the Al-Nahyan family were young

girls who had not yet reached puberty, and in certain cases, were

physically injured by the experience. The official said that former

BCCI officials had told him that BCCI also provided males to

homosexual VIPs.(74) "

74. Staff interviews, U.S. investigator, February, 1992. "

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Summary Excerpts from BCCI's Criminality

"BCCI's founder, Agha Hasan Abedi and his assistant, Swaleh

Naqvi" (Pakistani Bank)

"made up of multiplying layers of entities, related to one another

through an impenetrable series of holding companies, affiliates,

subsidiaries, banks-within-banks, insider dealings and nominee

relationships. By fracturing corporate structure, record keeping,

regulatory review, and audits, the complex BCCI family of entities

created by Abedi was able to evade ordinary legal restrictions on the

movement of capital and goods as a matter of daily practice and

routine. In creating BCCI as a vehicle fundamentally free of

government control, Abedi developed in BCCI an ideal mechanism for

facilitating illicit activity by others, including such activity by

officials of many of the governments whose laws BCCI was breaking. "

"Though fragmentary, these records are also voluminous, amounting to

at least 9,000 boxes in New York and Miami alone, and several million

pages. Foreign BCCI document repositories of BCCI, especially in the

United Kingdom, the Grand Caymans, and "Abu Dhabi," are even larger,

with access for U.S. investigators limited by foreign bank

confidentiality, privacy laws, and the willingness of the foreign

jurisdictions to cooperate. "

"largest case of organized crime in history, spanning over some 72

nations, " "involving billions of dollars; money laundering in Europe,

Africa, Asia, and the America"

"BCCI's bribery of officials in most of those locations; its support

of terrorism, arms trafficking, and the sale of nuclear technologies;

ITS MANAGEMENT OF PROSTITUTION; its commission and facilitation of

income tax evasion, smuggling, and illegal immigration; its illicit

purchases of banks and real estate"

"shell corporations, bank confidentiality and secrecy havens, layering

of corporate structure, front-men and nominees"

""kick-backs and bribes, intimidation of witnesses, and retention of

well-placed insiders to discourage governmental action.

---------------------------------------------------------------------------­---------------------------------

"Senate investigator Jack Blum... it had 3,000 criminal customers."

"On December 18, 1991, in an agreement with the Justice Department and

New York District Attorney, BCCI's liquidators pled guilty to having

engaged in a criminal conspiracy through financial fraud, and thereby

constituting a Racketeering Influenced and Corrupt Organization

(RICO), whose entire assets, legitimate and illegitimate, were subject

to confiscation by the government. " "Specific crimes admitted to by

BCCI's liquidators in the agreement included:

** Seeking deposits of drug proceeds and laundering drug money" AMONG

OTHER CRIMES.. see: Superseding Information, U.S. v. BCCI, Crim. No.

91-0655, U.S. District Court for the District of Colombia, December

19, 1991.

"its chief executive officer in the Americas, knowledge of money

laundering, drug trafficking, loans created in "bogus" names, and

advances of funds to non-existent companies in London, Luxembourg,

Cyprus, Malta, the Channel Islands, "

"BCCI's financial empire was built on the fiction that it was heavily

capitalized by oil-rich Arab leaders, when the reality was that most

of them -- and according to some credible information, all of them --

were acting as nominees, providing either their names to BCCI, or

their names plus their funds in the form of deposits to BCCI to get a

guaranteed no-risk return, rather than as actual investors at risk. "

"Not having the actual capital base, BCCI simply pretended it was

there, and enlisted the reputations of its shareholders to assist it

in so pretending, in order to lure others to deposit their funds with

BCCI."

"Manhattan prosecutor Robert Morgenthau[Hans Morgenthau's

cousin?]..BCCI's liquidators plead guilty as part of the December,

1991 plea agreement, "

"[BCCI's] scheme was premised on the fact that banks rely on credit.

The essence of the scheme was to convince depositors and other banking

and financial institutions, by means of false pretenses,

representations, and promises that the BCC Group was a safe financial

repository and institution for funds, and thereby defendants acted to

persuade depositors and banking and other financial institutions to

provide the BCC Group banks with deposits and credit" (People v. BCCI,

Supreme Court of the State of New York, County of New York, July 29,

1991. )

"Employing the ruling families of a number of Middle Eastern states as

nominees for BCCI, who pretended to be at risk in BCCI but who were in

fact guaranteed to be held harmless by BCCI for any actual losses. "

"Using bank secrecy havens including Luxembourg and the Cayman Islands

to avoid regulation on a consolidated basis by any single regulator of

BCCI, and thereby to permit BCCI to transfer assets and liabilities

from bank to bank as needed to conceal BCCI's true economic status. "

People v. BCCI, Supreme Court of the State of New York, County of New

York, July 29, 1991.

"BCCI's own auditors, PRICE WATERHOUSE" (now TD Waterhouse) June 22,

1991, the "Sandstorm Report," (provided to the Bank of England) was

the final evidence that lead to the shutdown of BCCI globally on July

5, 1991 (Price Waterhouse, Draft Report on Sandstorm SA Under S. 41 of

the Savings Act of 1987. )

"$600 million of BCCI deposits not recorded in BCCI's books"

"Other major losses related to BCCI accounts in related entities,

including ICIC in the Grand Caymans, sometimes know as BCCI's "bank-

within-a-bank," the Bank de Commerce et Placements, a BCCI subsidiary

in Switzerland, the Kuwaiti Investment Finance Company (KIFCO), a

secret BCCI subsidiary ostensibly owned by a BCCI nominee. "

"The Sandstorm report -- prepared by Price Waterhouse for the benefit

of BCCI's final group of managers, brought in for the purpose of

finding a way to help BCCI survive as a wholly-owned subsidiary of

"ABU DHABI" -- describes BCCI's fraud, rather kindly, as originating

in BCCI's sense of vulnerability in case of any losses because of its

lack of any lender of last resort and the hostile attitude of the

international banking community"

Price Waterhouse, Draft Report on Sandstorm SA Under S. 41 of the

Savings Act of 1987.

"BCCI's losses grew, so did its manipulation of accounts and its

frauds, as well as its use of affiliated and related entities such as

ICIC in the Grand Caymans, the Banque de Commerce et Placements in

Geneva, the National Bank of Oman, and the Kuwaiti Investment Finance

Corporation (KIFCO). " (Offshore Banks?)

Massihur Rahman, who was BCCI's chief financial officer (FOLLOWING

QUOTES ARE NOT FROM HIM)

"In its 1991 review, Price Waterhouse found that among the specific

techniques used by BCCI to hide its losses were:

** misappropriation of deposits without depositors knowledge to

provide funds to adjust non-performing and bogus loan accounts, and

Treasury losses.

** misappropriation of external funds deposited under trust with

Sandstorm [BCCI] and Fork [ICIC] to be managed on behalf of a few

prominent people who are also shareholders of [BCCI] Holdings.

** the creation of loans with no commercial substance in the names of

people without their knowledge.

** selling certificates of deposit placed with the Central Treasury

without informing the depositors, and using the proceeds to fund

adjustments.

** routing funds through [ICIC], LOANS, KIFCO, SDCC and other

affiliates and third parties to make adjustments prior to accounting

reference dates and audit confirmation dates, which were often

reversed at a later date.(29) "

Staff interviews, Akbar Bilgrami, July 13-14, 1992; Amjad Awan, July

20-21, 1992.

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"As BCCI liquidators in the Grand Caymans found, ICIC was not really a

bank at all, but a post-office box location to "book" transactions

that were initiated, organized, and approved in other parts of BCCI.

In essence, ICIC was a "conduit" or mechanism for BCCI's fraud" (also

used holding companies, "Big Brother and the Holding Company")

Report of Grand Caymans Liquidators to Grand Caymans Court, August 30,

1991, Deloitte Ross Tohmatsu, International Credit and I nvestment

Company (Overseas) Ltd.

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"ICIC lending included millions to major front-men for BCCI including

Ghaith and Wabel Pharoan, Faisal al Fulaij, Prince Turki, and Mohammed

Hammoud."

"Clark Clifford and Robert Altman in First American in 1988 with funds

lent him by BCCI" ????? (S&L) Price Waterhouse, Report to the Director

on ICIC Group, June 17, 1991, Sec. 1.

Money Laundering

"From the time of BCCI's indictment on drug money laundering charges

in Tampa, Florida in October, 1988, there was little doubt to anyone

looking at the facts that BCCI had been used to launder drug money. "

"The Customs agents working on the "C-Chase" case against BCCI, moved

millions of dollars in U.S. currency, representing the proceeds of

cocaine sales through BCCI Panama, BCCI Luxembourg, and LOANS

Switzerland as a result of the knowing participation of several BCCI

officials."

In regards to Panama and the Manuel Noriega CIA Cocaine connection to

BCCI see a book called "Divorcing the Dictator"

also see this quote available also further down the page:

"BCCI's clients for money laundering included Panamanian General

Manuel Noriega, [(CIA Link)] for whom it managed some $23 million of

criminal proceeds out of its London branches; Pablo Escobar, of the

Medellin cartel; Rodriguez Gacha, of the Medellin cartel; and several

members of the Ochoa family.(48) "

"As Robert Mazur, the Customs agent in Tampa who selected BCCI as the

target of the Customs money laundering sting testified, BCCI bank

executives volunteered methods to enhance and improve his techniques

for money laundering, and shortly before the sting ended the

operation, offered to introduce Mazur to other potential "cash"

customers for money laundering services from Bogota, Colombia.(38) "

Testimony of Robert Mazur, S. Hrg. 102-350, Pt. 3, p. 682.

"BCCI itself pled guilty to money laundering in January, 1990"

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Testimony of Grant Smith, Deputy Assistant Secretary of State, S. Hrg.

102-350, Pt. 3, p. 579. "Setting aside those instances where BCCI

managers knowingly promoted money laundering, BCCI seemed attracted to

traffickers for the same reasons that other banks have been found

attractive. First, traffickers seek international banks that are

sophisticated in wire transfers, that have branches in those parts of

the world where they operate, and which permit quick retrieval of

funds. Second, traffickers seek banks in those countries where

national banking laws afford maximum secrecy to depositors, permit

nominee accounts, and do not provide for close monitoring of cross

border transactions of currency movements"

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(search terms: Akbar Bilgrami, Colombia, Pakistan)

also see columbia cocaine, pakistan-afghanistan heroin, then MEXICALI

---------------------------------------------------------------------------­-----------------------------

"Abedi told him that he needed to increase BCCI's activity in Colombia

to $1 billion in local currency in deposits, and $1 billion in U.S.

denominated deposits -- funds which obviously could only be generated,

directly or indirectly, from the drug trade.(40) " Staff interviews,

Akbar Bilgrami, July 13-14, 1992.

US indictment of: Superseding Information, U.S. v. BCCI, Crim. No.

91-0655, U.S. District Court for the District of Colombia, December

19, 1991.

excerpts:

"1991 plea agreement with U.S. law enforcement outlines the systematic

nature of the money laundering as follows:

40. The BCCI Defendants and their affiliates . . . would and did

formulate and implement a corporate strategy for increasing BCCI's

deposits by encouraging placements of funds from the proceeds of drug

sales, in conscious disregard of the currency regulations, tax laws,

and anti-drug laws of the United States, and of other nations;

41. In furtherance of the BCCI Group's corporate strategy to pursue

deposits in disregard of United States and foreign law, the BCCI

Defendants . . . would knowingly offer a full range of services to

drug importers, suppliers and money launderers;

42. Co-conspirators would and did conduct . . . financial transactions

with narcotics drug proceeds including the wire transfer of said

proceeds from places in the United States to and through other places

outside the United States, with the intent to conceal and disguise the

nature, location, source and ownership of these drug proceeds.(41) "

""counter-balancing loan proceeds" its technique of crediting "counter-

balancing loan proceeds" to foreign corporate bank accounts designated

by drug traffickers; "

"Abdur Sakhia, formerly BCCI's chief officer in the United States

testified, it been obvious within BCCI as of 1983 that the bank had

adopted a conscious policy of soliciting drug funds when it decided to

purchase a bank in Colombia. It was obvious to Sakhia and other BCCI

officers then that BCCI's motivation for obtaining the Colombia bank

was its recognition that enormous amounts of U.S. currency were being

generated as a result of narcotics trafficking, and that Colombia

could become an extremely profitable operation for BCCI. "

Sakhia's Testimony:

We knew that the money that we would be getting in Colombia would be

drug money. We knew that all the dollar deposits we would be getting

would be drug money.(43) "

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BCCI was getting branches in: "getting branches in lawless areas like

Cartegena, Cali and Medellin."

"BCCI's clients for money laundering included Panamanian General

Manuel Noriega, for whom it managed some $23 million of criminal

proceeds out of its London branches; Pablo Escobar, of the Medellin

cartel; Rodriguez Gacha, of the Medellin cartel; and several members

of the Ochoa family.(48) " 48. BCCI Records and customer lists, LACRO,

Federal Reserve, Miami.

"When it came to General Noriega, bribes were unnecessary, as BCCI

provided the far more important service of laundering $23 million of

his money and keeping it safe from other governments and his eventual

successors in Panama by insuring its disappearance following his

indictments. But to demonstrate BCCI's hospitality, the bank still

made sure that it provided Noriega with an expensive gift -- a $25,000

persian carpet, hand delivered with Abedi's regards to Noriega by

Alauddin Sheikh.(52) ""

51. Staff interview, Nazir Chinoy, March 9-16, 1991; BCCI documents,

Andrew Young trip to Nicaragua.

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Support of Terrorism and Arms Trafficking

"First, as a principal financial institution for a number of Gulf

sheikhdoms, with branches all over the world, it was a logical choice

for terrorist organizations, who received payment at BCCI-London and

other branches directly from Gulf-state patrons, and then transferred

those funds wherever they wished without apparent scrutiny."

"Arms trafficking involving BCCI included the financing of Pakistan's

procurement of nuclear weapons[Abdul Khan, Iran, DPRK] through BCCI

Canada, as documented in the Parvez case, involving a Pakistani who

attempted to procure nuclear related materials financed by BCCI

through the United States. (61) " 61. Testimony of Alan Kreczo, Deputy

Legal Adviser, Department of State, S. Hrg. 102-350, Pt. 3, p. 599.

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Palestinian terrorist Abu Nidal and his link to BCCI

67. Testimony of Laurence Pope, Associate Coordinator for Counter-

Terrorism, Department of State, S. Hrg. 102-350, Pt. 3, p 580.

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Training of Cartel Death Squads

ISRAEL ARMS SALES TO LATIN AMERICA (UZI's for LA street gangs? CIA,

Contras, LA Crack epidemic)

"The principals in the arms trafficking included Yair Klein, who had

previously been identified in Colombian drug enforcement documents as

involved in training paramilitary squads for the cocaine cartel in

Medellin; Pinchas Shahar, an Israeli intelligence operative, and

Maurice Sarfati, an Israeli "businessman" operating out of Miami and

Paris. "

---------------------------------------------------------------------------­-------------------------------

Prostitution

"BCCI's involvement in prostitution arose out of its creation of its

special protocol department in Pakistan (ISI, BCCI) to service the

personal requirements of the AL-NAHYAN family of ABU DHABI, and on an

as-needed basis, other BCCI VIPs, including the families of other

Middle Eastern rulers."

SEE: Abdur Sakhia and Nazir Chinoy TESTIMONY & see (Begum Asghari

Rahim (United Bank) <-the Pimp "The prostitution handled by BCCI was

carried over from practices originally instituted by Abedi at the

United Bank, when working with a woman, Begum Asghari Rahim, he

cemented his relationship with the Al-Nahyan family through providing

them with Pakistani prostitutes. " (Nazir Chinoy)

"Among BCCI bank officials in Pakistan, Begum Rahim was reputed to

have in United Bank first won the favors or attention of the royal

family by arranging to get virgin women from the villages from the

ages of 16 to 20. " (child prostitution, AL-NAHYAN family of ABU

DHABI?)

"According to one U.S. investigator with substantial knowledge of

BCCI's activities, some BCCI officials have acknowledged that some of

the females provided some members of the Al-Nahyan family were young

girls who had not yet reached puberty, and in certain cases, were

physically injured by the experience. The official said that former

BCCI officials had told him that BCCI also provided males to

homosexual VIPs.(74) " 74. Staff interviews, U.S. investigator,

February, 1992.

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"None of the BCCI officers interviewed by the Senate claimed to have

knowledge of a "black network" (sidenote: aka Louis Farrakhan,

hahaha... who killed Malcolm X, aw shit!) of intelligence operatives,

arms dealers, drug traffickers, burglars, or assassins employed by

BCCI, as described in a Time magazine cover-story on BCCI on August

15, 1991. " (Abedi)

websources: http://www.fas.org/irp/congress/1992_rpt/bcci/04crime.htm