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This
article comes
from
Tom Flocco.com
http://tomflocco.com/
Profits Of Death - Insider
Trading And 9-11 Part
I
Date: Friday,
September 26 @ 08:29:32 EDT
Topic: 9-11 Insider Trading
PROFITS OF
DEATH
INSIDER TRADING AND 9-11 Part I
by
Tom Flocco - Edited by Michael C. Ruppert
CIA Does Not Deny Stock
Monitoring Outside
U.S.
(Part I
in a
series)
In a returned phone
call from the Central
Intelligence Agency, press spokesman Tom Crispell denied that the
CIA was monitoring "real-time," pre-September 11, stock option
trading activity within United States borders using such software
as the Prosecutor's Management Information System (PROMIS).
"That would be illegal. We only operate outside the United States,"
the intelligence official said.
However, when asked whether the CIA had been using PROMIS beyond
American borders to scrutinize world financial markets for national
security purposes, Crispell replied, "I have no way of knowing what
operations are [being affected by our assets] outside the
country."
Extensive media reporting confirms that investors at Deutsche
bank-Alex Brown and other global financial entities may have
profited from prior knowledge of the attacks while purchasing
disproportionate pre-attack put option contracts on targeted U.S.
airlines and related insurance or investment firms. All of these
firms suffered serious losses resulting from the September 11th
attacks and their stocks abruptly plummeted. Confirmation that the
CIA or other U.S. intelligence agencies were monitoring financial
markets and had seen these trades before the attacks would have
staggering implications for thousands of victims' families.
Click on "Read
More"
below for the full story...
Editor's Notes:
PROFITS OF DEATH
INSIDER TRADING AND 9-11 Part I
by
Tom Flocco - Edited by Michael C. Ruppert
[© Copyright
2001. From The Wilderness
Publications, www.copvcia.com. All Rights Reserved. May be
recopied, distributed or posted on the worldwide web for non-profit
purposes only.]
FTW, December 6, 2001 -- On October 9th, FTW broke a story on
insider trading connected to the 9-11 attacks on the World Trade
Center that sparked worldwide controversy. In that story we
reported how the Israeli Herzliyya Institute for Counterterrorism
had documented that unknown individuals -- with accurate
foreknowledge of the attacks -- had purchased an obvious and
unusually large number of "put" options on United and American
Airlines shortly before the attacks.
Additional companies hit hard by the insider trading included Axa
Re(insurance) and Munich Re as well as American investment giants
Merrill Lynch and Morgan Stanley.
Put options are essentially a bet that a stock's price will fall
abruptly. The seller, having entered into a time-specific contract
with a buyer, does not need to own the actual shares at the time
the contract is purchased. Therefore, if a holder of the put option
has a contract to sell a stock such as American Airlines for (e.g.)
$100 a share on a Friday and the stock falls to $50 on Wednesday,
they can purchase the stock, sell it on Friday and double their
money. The person on the other end of the contract (the call) has
an obligation to buy the shares at the agreed upon price. The bank
handling the transaction as a broker is the only entity knowing the
identities of both parties.
FTW also revealed that the A.B. Brown (Alex Brown) investment arm
of the banking giant Deutsche bank /A.B. Brown had been headed
until 1998 by the man who is now the Executive Director of the
Central Intelligence Agency - A.B. "Buzzy" Krongard. In fact,
Krongard is but one name in a long history of CIA interconnections
to stock trading and the world's financial markets. We also
discussed, in detail, the evidence indicating that the CIA and
other intelligence agencies monitor stock trading in real time for
the purpose of identifying potential attacks of any nature that
might damage the U.S. economy.
The original FTW story is located at:
http://www.fromthewilderness.com/free/ww3/10_09_01_krongard.html.
Critics of FTW's initial story - not having read any of five
related stories dating back to an October 2000 piece on PROMIS
software - claimed that we had not made the links to establish
culpability. But we knew that the links were there, that our case
was solid, and that new evidence would not go undiscovered for
long.
Now, investigative reporter Tom Flocco digs deep and strikes pay
dirt in a three-part series that reveals not only deeper links
between the CIA, Wall Street and the insider trades of 9-11, but
also discloses that a key executive at Deutsche bank - an American
- became, just weeks before the attacks, a convicted felon. His
crime: conspiracy to launder drug money to arrange the purchase of
U.S. weapons - in association with two Pakistanis who also
attempted to acquire nuclear bomb components - for use by Islamic
fundamentalist terrorists. - MCR
Story continued....
CIA Does Not Deny Stock
Monitoring Outside
U.S.
(Part I
in a
series)
The CIA official also
declined to comment on the
actual capabilities of PROMIS. The highly technical software has
been described as a system that "interfaces with any database...as
police can input an alleged terrorist's name or credit card, and
the software will provide details of the person's movements through
purchases...," according to an 11-10-01 Toronto Sun report.
The importance of PROMIS is that it is not only capable of
interfacing with a wide variety of data bases in different computer
languages and then integrating the data, but it has also been
modified for intelligence purposes. It has then been sold
throughout the world by spy agencies through third parties to
clients such as banks and investment houses envious of its unique
capabilities. One key modification by agencies such as the CIA and
Mossad - not disclosed to most users -- is a secret "back door"
that permits those with the right codes to enter databases
undetected, retrieve and/or alter information, and leave without a
trace. PROMIS has been extensively reported as being used
throughout the world's financial markets because of its versatility
in facilitating international transactions.
Further clouding the issue of pre-attack stock screening by U.S.
intelligence, the Canadian daily revealed that U.S. police said
many of the suspected terrorists were apprehended (and detained)
"through use of the state-of-the-art computer software program
PROMIS."
In March 2000, CIA director George J. Tenet told the Senate that
Osama bin Laden's group (Al Q'aeda) was "embracing the
opportunities offered by recent leaps in information technology." A
FOX News story and stories in FTW disclosed in November that Osama
bin Laden was believed to have the software.
The issue of CIA monitoring of stock trades follows on the heels of
wide reports indicating that investigators are carefully probing
the insider trading with its resultant profits, reported to be in
the 10's of millions of dollars -- some of which a Deutsche bank
investor has yet to claim.
A promis
is a promis
Crispell also declined
comment when asked whether
the Treasury Department or FBI had questioned CIA Executive
Director and former Deutsche bank-Alex Brown CEO, A.B. "Buzzy"
Krongard, about CIA monitoring of financial markets using PROMIS
and his former position as overseer of Brown's "private client"
relations. [Note: Krongard stayed with
A.B. Brown
to head "private client" operations after it was acquired by
Banker's Trust in 1997. As Krongard was leaving in 1998 to join the
CIA as counselor to Director George Tenet, Banker's Trust was
acquired by Deutsche bank. Banker's Trust had been previously
criticized by the U.S. Senate and regulators for money laundering.
Krongard was promoted to Executive Director at CIA in March 2001. -
MCR]
Wide reports -- including a 9/28/01 story in the Asian Wall Street
Journal and a 10/1/01 story in The Guardian -- indicate that
investigators are checking Deutschebank's alleged links to Saudi
"private banking," terrorist bank accounts, and $2.5 million in
unclaimed United Airlines (UAL) put options profits; however, no
government acknowledgement had ever been given of CIA's alleged use
of PROMIS software prior to the attacks.
In a recent phone conversation, when asked about alleged terrorist
ties to Deutsche-bank and potential pre-attack CIA trade monitoring
via PROMIS, Treasury Department spokesman Rob Nichols remarked,
"This is clearly an interesting line of questioning regarding
conflicts of interest."
However, news searches indicate that no member of Congress has
publicly questioned whether wealthy terrorist-connected Saudi
nationals participated in the private client operations of Deutsche
bank-Alex Brown. Osama bin Laden and almost all of the alleged 9-11
hijackers are of Saudi nationality. Also, no member of Congress
expressed public interest in asking Krongard about whether or not
the CIA affected "real-time" pre-attack trade monitoring using
PROMIS software at any location.
[Note: Under a program known as Echelon,
the
governments of the U.S., Britain, Canada, Australia and New Zealand
routinely circumvent prohibitions on domestic electronic spying by
having the agencies of the other governments do it for them. -
MCR]
Michael Ruppert, editor
and publisher of From The
Wilderness (FTW) newsletter (www.copvcia.com), has been interviewed
by both the House and Senate for his expertise on illegal covert
CIA operations. He said recently that, "It is well documented that
the CIA has long monitored such (suspicious or unusual) trades --
in real time -- as potential warnings of terrorist attacks and
other economic moves contrary to U.S. interests."
Ruppert was the first to point out after 9-11 that CIA Executive
Director Buzzy Krongard has extensive past ties to Deutsche
bank-Alex Brown. Ruppert added, "There is abundant and clear
evidence that a number of transactions in financial markets
indicated specific [criminal] foreknowledge of the September 11
attacks...and the firm which was used to place put options on UAL
stock was, until 1998, managed by the man who is now in the number
three position at the CIA."
Ruppert also confirmed that two October 17 calls to the FBI
resulted in spokespersons declining to give their names after
revealing that "the FBI has discontinued use of the PROMIS
software." Moreover, on October 24, Justice Department spokesperson
Loren Pfeifle declined to answer any questions about where, when,
or how PROMIS had been used and would only say, "I can confirm that
the DOJ has discontinued use of the program." This followed almost
17 years of denials by the FBI and the Department of Justice -- in
court and under oath -- that they used the software at all in a law
enforcement or intelligence capacity.
Krongard's current lofty intelligence community position, combined
with his prior leadership of a financial institution allegedly
connected to terrorist hijacker bank accounts [see Part II],
suspicious UAL options contracts, and "private banking" is so
controversial that it has not as yet sparked any official
investigation. That said, the evidence is substantial enough to
potentially expose the prior-knowledge issue -- if Congress chooses
to act.
And while Treasury Department official Rob Nichols agreed that
unresolved conflict of interest questions remain, the CIA Executive
Director is still currently charged with supervision of the U.S.
intelligence investigation of his former firm and its "private
banking" operations.
Reuters has reported that Krongard "was [also] involved in setting
up the CIA experiment into investing in high-tech companies with
the goal of acquiring innovative technology for its own use."
Commenting on the CIA's venture capital firm In-Q-Tel, started in
1999 to encourage development of private-sector technologies for
use in the intelligence world, Krongard said on August 1, 2001 --
just 5 weeks before the Trade Center attacks -- "I think In-Q-Tel's
a wonderful model...in accessing the capabilities of the private
sector."
On October 16, Fox News reported that, according to sources,
accused Russian spy and FBI agent Robert Hanssen sold high-tech
PROMIS software to Russia, and that Osama bin Laden allegedly
purchased it from Russian organized crime sources.
Fox reported that, "Government officials suspect bin Laden may have
the highly sophisticated U.S. government software that has been
used by several other governments, including the United States, for
classified intelligence and law enforcement information."
The admission by U.S. government officials that PROMIS was widely
used by a number of governments further blurs the pre-attack stock
monitoring issue since intelligence officials will likely continue
to decline comment, save for closed-door congressional oversight
hearings or challenges by those victims' families choosing to
bypass settlements adjudicated by the Attorney General's office in
favor of direct intervention by the courts.
The
buck stops
where?
Tom
Crispell, the CIA
official, was cooperative while attempting to maintain intelligence
confidentiality in the face of what he termed as "ongoing
investigations surrounding the Twin Towers tragedies by the CIA,
FBI, Justice, and Treasury Departments." However, this was in great
contrast to an FBI spokesperson who refused to offer either his
first or last name, while declining comment on any matter related
to events of September 11.
During a series of calls, some spokespersons quickly attempted to
defer and deflect questions to another government agency, i.e. "We
don't deal with that issue. Call the other [entity]."
However, many would agree, given the evidence, that the 9-11
terrorism is closely linked to economic issues. President Bush has
stated that this is "economic warfare." Yet few appear to be
questioning an apparent paucity of critical information sharing
among key government agencies on the issue.
As U.S. investigators retrace the financial trails connecting the
Twin Towers, terrorist hijackers and their accomplices, many of
whom may still be in the country, evidence is being turned up by
FBI, CIA, Justice, Treasury and NSA that does involve global
banking conglomerate Deutschebank-Alex Brown.
$2.5
million unclaimed
UAL investor profits
For
example, according to a 10-19-2001 Wall Street Journal
report, an unnamed investor purchased 2,000 United Airlines (UAL)
put option contracts through Deutsche Bank-Alex Brown on September
6 -- betting the stock would shortly plummet. And USA Today
reported that an individual purchased 810 UAL puts on August 6.
A Baron's source claimed on 10-8-2001 that the pre-attack UAL order
placed through Deutsche Bank was for 2,500 contracts which were
"split into 500 chunks each, directing each order to different U.S.
exchanges around the country simultaneously."
According to San Francisco Chronicle reporters Christian Berthelsen
and Scott Winokur a source familiar with the UAL trades said
investors have yet to claim $2.5 million in profits on contracts
purchased before United airliners crashed into a New York Trade
Tower and a deserted Pennsylvania field on September 11.
The Chronicle source also identified Deutsche bank-Alex Brown as
the investment firm used to purchase some of the UAL options; and
Rohini Pragasam, a bank spokeswoman, declined to comment on the
transaction.
The source (who requested anonymity) said, "Usually, if someone has
a windfall like that, you take the money and run. Whoever did this
thought the Exchange [NYSE] would not be closed for four days. This
smells real bad."
The German news weekly Der Spiegel revealed that Deutsche bank also
handled accounts worth about $100 million for Osama bin Laden's
family. These were part of 10 accounts it suspected were linked to
terrorists or terrorist activities and which it later handed over
to German authorities after the attacks, according to a report in
Britain's The Guardian. But no further comments have been
forthcoming from the financial giant.
German Central Bank President Ernst Welteke said a study --
concerning principal hijack subjects residing in Germany and
unusual patterns in short-selling of insurance, airline and other
financial company shares -- pointed to "terrorism insider trading"
in those stocks.
The SEC
Is
Investigating
A
phone
interview with Securities and Exchange Commission (SEC) press
spokesman John Nester, of the Washington, DC office, revealed that
the Commission, "has already forwarded a general request to
Deutsche bank-Alex Brown and other investment firms for unspecified
information related to the suspicious put option contracts placed
prior to the attacks on the Trade Towers and the Pentagon." But the
spokesman declined comment regarding the identities of complying
banks or the contents of any information obtained.
Nester augmented his response by adding that "according to SEC
Associate Director of Enforcement Bill Baker -- who just spoke on a
panel outside New York last week -- our SEC probe is much broader
than investigations made by countries in Europe (who also lost
citizens), many of whom have already closed their financial
investigations of investment banks like Deutsche bank." No results
of those probes have been made public.
While the SEC media director said "the investigation is still
ongoing with no current conclusions," Nester (speaking for the
SEC), had difficulty explaining the job deion of current New York
Stock Exchange (NYSE) Executive Vice President for Enforcement,
David P. Doherty. He would only say that the NYSE "regulates itself
as an SRO or self-regulating organization...." This vague answer is
all the more provocative because Doherty is a retired General
Counsel of the Central Intelligence Agency.
Nester added, "The SEC has oversight responsibility regarding the
NYSE, and we are also working with Justice, Treasury, and the FBI,
having set up professional point men at each firm we are looking at
-- so we don't have to reinvent the wheel every time we call a
company [related to the attacks] to get an answer to a
question."
The "reinvent the wheel" statement raised an eyebrow regarding the
level of corporate cooperation in the investigation, although
Nester declined to add further comment.
In
Spite of CIA Ties the NYSE
Is Little Help
When
asked
about the status of the investigation into the disproportionate
pre-attack stock option trades involving United and American
Airlines, Merrill Lynch, Marsh and McLennan Insurance, Morgan
Stanley, Citigroup, Bear Stearns, and American Express, etc. -- all
icons of American capitalism -- NYSE Communications Director Ray
Pellecchia said, "We don't even confirm that there is an ongoing
investigation."
"We report to the SEC as a matter of course," Pellecchia added. But
after being referred to as a "persistent piece of work," this
writer asked Pellecchia to discuss Doherty's role in the
investigations. He said, "We stand by this statement."
And after pressing for information about what the NYSE is actually
doing to investigate the suspicious trades on behalf of thousands
of victims' families who may be concerned about the
"prior-knowledge" issue, Pellecchia still declined to confirm that
Doherty's enforcement office had even sent a report to the SEC.
When asked why so many former key CIA executives currently hold, or
have held in the past, top level executive management positions
connected in some way to the stock market via either the SEC, NYSE,
or other investment banking entities, Pellecchia replied tersely,
"I am quite aware of Mr. Doherty's background and experience."
Pellecchia also declined to discuss anything related to current CIA
Executive Director A.B. "Buzzy" Krongard and his past relationship
with Alex Brown.
Expecting
Miracles?
Questions remain as to
who will ultimately take
center stage in investigating conflicts of interest or the
real-time monitoring of world financial markets by U.S.
intelligence entities to protect national security; let alone
terrorist ties to wealthy Saudi private clients at global financial
institutions having direct access (via correspondent banking
relationships) to U.S. banks.
For while thousands of American families, victimized by terrorism,
still remain numb with grief, information is being advanced daily
regarding what could be described by some as casual, if not
negligent, long-term, slipshod governmental responsiveness to
fundamental internal national security and safety questions -- or
worse.
Stories in the PROFITS
OF DEATH -- INSIDER TRADING
AND 9-11 series:
Part I -- CIA Does Not Deny
Stock Monitoring Outside U.S.
Part II --
Trading With The
Enemy
Part III -- All Roads Lead To Deustchebank
And Harken Energy, W's Own 1991 Insider Trading Scam, The Mother Of
Enrons
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