BIDEN, GEITHNER, EMANUEL TAKING BUSH SR’S BRIBES

chrisstory

FORMAL C.I.A. ELIMINATION ORDER ISSUED AGAINST KEY SETTLEMENTS SIGNATORY

Tuesday 11 May 2010 19:00

ANNOUNCEMENT: 17 MAY 2010: INTERNATIONAL CURRENCY REVIEW RELEASED WORLDWIDE
Outline details of this week’s release of International Currency Review are displayed in the second panel immediately below the NEWS panel on our Home Page. Also released are two further issues of Arab-Asian Affairs. Volume 33, # 5 of this title reveals how the Israeli authorities disguised the physical identity of David Kimche, the Israeli spymaster, drug controller and Director of the Israeli Foreign Office, even after his death, which took place on 8th March 2010.

• BIDEN, GEITHNER, EMANUEL TAKING BUSH BRIBES TO THWART PAYOUTS

• WAFFEN SS FRITZ KRAEMER HELD TOP U.S. N.S.C. POST

• BRIBES FOR BIDEN ET AL. ORDERED BY BUSH SR.

• OUR DEFRANCESCO EXPOSURE FORCES 24/7 BODYGUARD PROTECTION

• FORMAL C.I.A. ELIMINATION ORDER ISSUED AGAINST GOLD BADGE PAYOUTS SIGNATORY
UPDATE: Certain sensitive additional information which we cannot elaborate upon at this time indicates that the leaked promulgation by the CIA of an order to assassinate the US official in question was part of an elaborate Bushite ruse that provided dense cover for an immense heist
operation masterminded by the Bush-CIA deception experts. This operation was BLOWN with
the sudden ‘resignation’ of Gordon Brown and the consequent abrupt switch to the Cameron-Clegg partnership/Coalition arrangement. These developments coincided with certain critical matters that we can’t go into at this juncture (perhaps never), and which triggered these events.

In other words, the switch to Cameron-Clegg was connected to and driven by events behind the scenes which only very few know about, but which were and are of decisive importance.

We have left the segment dealing with the elimination order unchanged, as we are not in the habit of going back and changing what we said earlier, not least because this is the most transparent policy to adopt. But this update is inserted in order to signal to those ‘in the know’ that we are of course aware of what happened, and how it may have changed the course of history: literally.

• E.U. BAILOUT FINANCED BY $1.0 TRILLION DIVERTED FROM THE SETTLEMENTS FUNDS

• WHITE HOUSE CAMPAIGN TO SABOTAGE THE GOLD BADGE SIGNATORY’S PROGRESS

• RON PAUL: ‘YOU CAN’T BAIL OUT DEBT WITH DEBT’

• SEVERE PROBLEMS EMERGE ON THE FOREIGN EXCHANGE MARKETS

• ‘BUSHES SHOULD BE STRUNG UP IN PUBLIC LIKE SADDAM HUSSEIN’

• BUSH SR.’S U.S. AIR FORCE INTELLIGENCE HANDLER
IS ‘OCTOBER SURPRISE’ SR-71 PILOT GORDON SYMMONS

• FATAL MISCALCULATION BY WHITE HOUSE-C.I.A. DESPERADOS

• WORLD COURT ORDERED BREAKUP OF 19 U.S. CRIMINAL FINANCIAL ENTERPRISES

• FURTHER WAVES OF ARRESTS REPORTED:
CORRUPT PENTAGON’S CONSPICUOUS INACTIVITY

• CHENEY HALLIBURTON SCAMMING DETAILS SENT TO WAXMAN IN 2008

• GULF OIL RIG EXPLOSION: A ‘BLACK’ RETALIATION OPERATION AGAINST THE BRITISH

• OUR EXPOSURE OF THE HEMENWAY SHOOTING
LIFTED WITHOUT ATTRIBUTION, AND OUT OF CONTEXT

• WAS THIS ANOTHER C.I.A. ELIMINATION ORDER,
OR WAS THE SHOOTING ORDERED BY OBAMA (OR BOTH)?

• CITIBANK, ATHENS, WHERE WANTA SET UP BUSH ACCOUNTS,
BOMBED, THREE KILLED: NOT A COINCIDENCE

• ‘EUROPEAN CRISIS’ MADE IN WASHINGTON, D.C.

• EARLY BUSH II/MI-6 ATTEMPTS TO STOP OUR INVESTIGATIONS
USING GORDON THOMAS AS DUPLICITOUS INTERMEDIARY

• NOBODY WHO’S NOT IN NEED OF BRAIN SURGERY
WANTS TO BUY THE U.S. TREASURY’S ‘TRASHETS’ ANY LONGER

• U.S. TREASURY’S LIES AND SPIN EXPOSED BY
THE OFFICE OF MANAGEMENT AND BUDGET’S DEBT STATISTICS

• IT’S NOT THE ECONOMY, STUPID: IT’S THE MATHEMATICS

• SOUND MECHANICS OF THE APPROVED PRIVATE SECTOR DOLLAR REFUNDING OPERATION

• UNATTRACTIVE OUTBREAK OF COORDINATED ‘BLANKFEINISM’

• S.E.C. CASE AGAINST GOLDMAN WALKS ROUND THE ELEPHANT IN THE BEDROOM

• SINCE ALL SECURITISATION IS ILLEGAL, ALL DERIVATIVES
CONTRACTS ARE FRAUDULENT AND THEREFORE VOID

• PAUL VOLCKER DESTROYS HIS REPUTATION FOR INTEGRITY

• PUBLIC HAND-WRINGING BY ‘PUT-UPON’ BLANKFEIN

• BUSH II AND CLINTON CAUTION AGAINST GREED IN CHICAGO

• THE CHICAGO MAFIOSO FORK POINTED AT OBAMA

• ONGOING BLACKMAIL OPERATIONS TARGETING OBAMA TO PREVENT HIM SETTLING

• DOCUMENTS PROVE ROUTINE COLLABORATION BETWEEN C.I.A. AND ORGANISED CRIME

• EXPOSURES FORCING AMERICANS TO RECOGNISE THE PERILS OF C.I.A. CRIMINALITY

• MEANWHILE THE SINISTER ‘OFFICE OF FINANCIAL RESEARCH’ IS STILL IN THE WORKS

• POWERS TO TAKE DOWN ANY ENTITY ANYWHERE IN THE WORLD

• DESPERATE E.U. MEASURE TO ‘SAVE THE (PAN-GERMAN) EURO’
INCOMPATIBLE WITH SAVING THE FAILING SATRAP E.U. ‘MEMBER STATES’

• OPEN-ENDED E.U. LIABILITY POTENTIALLY IMPOSED
UPON BRITISH TAXPAYERS EVEN THOUGH BRITAIN IS BUST

• OUTGOING LABOUR GOVERNMENT CORRECTLY REFUSED TO GO ALONG

• OUTCOME OF THE BRITISH GENERAL ELECTION: TEMPORARY CHECK MATE

• GORDON BROWN RESIGNS: CAMERON GOES TO THE PALACE [11th May 2010]

• WELCOMING CAMERON, OBAMA PRAISES
THE ‘SPECIAL RELATIONSHIP’ HE TRASHED EARLIER

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

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• By Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

• AS PREVIOUSLY ANNOUNCED, OUR LANDLINES REMAIN CLOSED BECAUSE OF UNLAWFUL HARASSMENT. WE CAN BE CONTACTED VIA EMAIL OR THE WEBSITE ‘CONTACT US’ FACILITY. Specifically we have closed down all our transatlantic voice communications using our landlines located in the New York office. This followed a 90-minute set-to that occurred on 6th May with a compartmentalised US intelligence organisation called Verizon. Years ago we ordered a 1-800 number so that North American subscribers and new order clients could call us without having to pay the transatlantic costs should we be handling calls in London. After our finding in March 2010 that the harassment calls were being directed via the 1-800 number in some cases, we took steps effective from 29th March to de-activate the landlines based in New York. We then waited to see whether we would be billed for any such calls after 29th March 2010.

The newest Verizon Bill, received late April in London, showed that we were continuing to be billed for the cost of these nuisance calls notwithstanding that the two land lines in New York had been disconnected. On 6th May we attempted to explain to uninterested Verizon personnel, including a so-called ‘Fraud Control’ Office, that since the land lines had been de-activated, it was a physical impossibility for any US calls to be relayed to London via our call forwarding facility in New York.

We therefore needed to know why were were continuing to be billed the cost of such transfers, given that the land lines had been de-activated. This proved to be way, way too complex for the operatives concerned to grasp. But what did emerge is that they could find no trace of our 1-800 number, which has been publicised on our website and in our literature and publications for many years. They then tried to deny that we own the 1-800 number in question, after we asked why we were not being billed for the facility. You would have thought they would have been interested in adding value to our monthly invoices. But no.

And why is this? Almost certainly because the 1-800 number was STOLEN FROM US at the outset by some cadre of criminalised US intelligence. The current position is that Verizon have started billing us FRAUDULENTLY for calls relayed via New York-based landlines received via the 1-800 number which they say they can find no trace of. We shall continue to press these issues until we extract the truth from this particular component of the criminalised US intelligence monstrosity.

NEW REPORT STARTS HERE:

BIDEN, GEITHNER, EMANUEL TAKING BUSH BRIBES TO THWART PAYOUTS
It has transpired via special sources since we last reported that the following top US appointed officials are receiving weekly and monthly bribery cheques ordered by George H. W. Bush Sr. in a desperate ploy to ‘encourage’ them to maintain their sabotage against the Settlements payouts and to ‘encourage’ Bank of America to continue stealing the funds which have been allocated for the purpose, separated out and are ready to be paid:

• Vice President Joseph Biden. It is of course an IMPEACHABLE OFFENCE
for a Vice President of the United States to accept bribery payments.

• Rahm Emanuel, Obama’s White House Chief of Staff.

• Timothy Geithner, Secretary of the US Treasury. This fellow was originally picked by Dr Henry Kissinger, the notorious triple (DVD/STASI-KGB-Mossad) penetration controller, as a compliant, brainwashed US operative who could be relied upon to ensure the perpetuation of Fraudulent Finance derivatives operations based on illegal securitisation, both while serving as President of the Reserve Bank of New York (where Geithner accumulated a vast stash of derivatives estimated to have a notional value of $500 trillion, but probably much more), and when he was transferred seamlessly under Obama to the position of Treasury Secretary.

WAFFEN SS FRITZ KRAEMER HELD TOP U.S. N.S.C. POST
Now in the past we have pointed out that Dr Henry ‘Heinz’ Kissinger ‘filled in’ as the key North American agent of DVD (Deutsche Verteidigungs Dienst) after Admiral Canaris (who was not hanged at Flossenburg in April 1945, as asserted by the Nazi disinformation legend), fell ill in 1974.

Kissinger then persuaded President Gerald Ford (a.k.a. Leslie Lynch King, pornographer) to sack William Colby as Director of Central Intelligence (CIA), and to replace him with the DVD’s primary representative, George H. W. Bush Sr. After Ronald Reagan had been elected President thanks to George H. W. Bush Sr.’s ‘Operation Surprise’ deception [see below], Bush Sr. considered that the Presidency should be his and therefore organised the assassination of Reagan, just as he had been involved many years earlier in implementing the assassination of President John Kennedy.

After George Bush Sr. had been elected to the Presidency in 1988, Senator John Tower sought appointment as Secretary of Defense, which would have destabilised the vast Fraudulent Finance operations and scamming that Bush Sr. intended to institutionalise within the Federal structures: so Mr Bush arranged for the CIA to issue a FORMAL ELIMINATION ORDER against Senator Tower, who duly died in a plane crash on 5th April 1991, along with his daughter and staffers.

Dr Kissinger ‘was’ ‘mentor’ to George H. W. Bush Sr., as to Timothy Geithner. And the ‘mentor’ of Kissinger was Dr Fritz Gustave Anton Kraemer, a special assistant, adviser and strategist serving the US Army Deputy Chief of Staff of Operations (DCSOPS) at the Pentagon. Kraemer, who was buried with full military honours in Arlington Cemetery some years ago, served on the US National Security Council (NSC), modelled after Hitler’s Security Council – with jurisdiction to oversee the Central Intelligence Agency under the National Security Act of 1947 (a.k.a. the ‘criminals’ charter’).

It is almost certain that this Fritz Kraemer, the top Secret Team operative in the United States, was Brigadeführer SS Fritz Kraemer, a very senior Waffen SS officer within the Hitler Nazi hierarchy, responsible for strategic Fascist atrocities during the Second World War.

Initially a war crimes defendant at Nuremberg, Brigadeführer Waffen SS Fritz Kraemer walked away from the Nuremberg trials into the service of the US military.

BRIBES FOR BIDEN ET AL. ORDERED BY BUSH SR.
The likely source of these remittances (although this has not been confirmed) is Deutsche Bank AG, by order of the corrupt Dr Joseph Ackermann, Deutsche Bank’s CEO, partner with the Three Racketeers, Mikhail Gorbachëv, George H. W. Bush Sr. and Dr Helmut Kohl, in Deutsche AG, formerly Barrington Investment Group, St Gallen, Switzerland.

The repeated ongoing bribery remittances are being paid to these corrupt office-holders on the instructions of George H. W. Bush Sr., backed by George W. Bush, who, with the Clintons and their criminal enterprise banking lackeys and Intelligence Power intermediaries, are desperate to hold on to the stolen funds and to prevent the loss of stranglehold control that they fear will ensue on payout and release of the hijacked and effectively diverted/stolen $6.2 trillion loan made available on 19th-20th June 2007 by the British Monarchical Power via the Bank of England to the criminal enterprise Bank of New York (Mellon) which diverted the funds on the instructions of Henry M. Paulson Jr., then US Secretary of the Treasury – who, along with Bush Jr., Clinton (male), and Blankfein (Goldman Sachs), is engaged (see below) ‘as we speak’ in an ongoing PR operation to convey the entirely false impression that he favours financial prudence, rectitude, discipline, integrity, honesty and all the other good things that he disregarded while holding high office.

OUR DEFRANCESCO EXPOSURE FORCES 24/7 BODYGUARD PROTECTION
Furthermore, as a direct consequence (according to a sworn and notarised Affidavit dated 31st March 2010 in this Editor’s possession) of our exposure in these reports of the Mafioso Salvatore R. DeFrancesco, whose name was inserted by the Pennsylvania Department of State Corporation Bureau as ‘Secretary’ of Mr Michael C. Cottrell’s firm Pennsylvania Investments, Inc., THE key US official (Gold Badge) Signatory responsible for and engaged in procuring the finalisation of the Settlements payments has, since that exposure, had to be equipped with bodyguards 24/7, and while present at the bank(s) responsible for the payments.

But it gets worse.

FORMAL C.I.A. ELIMINATION ORDER ISSUED AGAINST GOLD BADGE PAYOUTS SIGNATORY
On 7th May, this key US official was directly threatened on orders issued by the de facto Mafiosi George H. W. Bush Sr. and George Bush Jr.. At 10.45 pm UK time on 8th May, the Editor of this service was, in addition, FORMALLY advised that:

• The threat against the US Gold Badge referenced above (whose identity is known to this service) is an OFFICIAL C.I.A. ELIMINATION ORDER.

• Astonishingly, this intelligence has been leaked to us by a senior C.I.A. operative, also known (personally, in this instance) to this service.

What this means is that the Bush Crime Syndicate, which controls the Central Intelligence Agency, has reached a level of desperation so intense that it has resorted to an OFFICIAL, FORMAL C.I.A. ELIMINATION ORDER against the paymaster Gold Badge Signatory who’s in charge of procuring the necessary outcome, having evidently run out of other malicious options.

E.U. BAILOUT FINANCED BY $1.0 TRILLION DIVERTED FROM THE SETTLEMENTS FUNDS
Over Saturday and Sunday 8th-9th May 2010, the Gold Badge Signatory against whom the CIA has issued a formal elimination order (confirmed to us as stated above) entered into an arrangement with agents reporting ultimately to George H. W. Bush Sr. on the basis of some ‘deal’ or other, as a consequence of which $1.0 trillion was released from earmarked Settlement funds. This money was immediately sucked into the bowels of the Federal Reserve and has disappeared, although since the funds are resident within the central banking /Treasury systems, they can be traced.

The $1.0 trillion was diverted to help fund the purchase of US Government bonds to be deployed in the context of the European bailout operation cobbled together over the weekend.

Irrespective of what alternative explanations for this latest scam may emerge, The New York Times reported on 10th May as follows:

‘European Finance Ministers arrived in Brussels on Sunday with broad agreement on the need for a fiscal contribution from the European Union budget and some kind of fund to stabilize the most troubled markets. By several accounts in Europe, a 500 billion-Euro figure first emerged Sunday afternoon, when Mr Sarkozy called Mrs Merkel after each had spoken with Mr Obama’.

The New York Times then elaborated with convoluted explanations of what was finally agreed. But we need, in fact, go no further than where we stopped quoting the newspaper, above.

• Why on earth would it be necessary for Sarkozy and Merkel to speak to President Obama on a matter involving the raising of funds from European sources?

Answer: Because, contrary to the elaborate spin, the funds weren’t ever going to be raised from European sources (although duplicated ‘shadow’ arrangements implying such an accord, for cover purposes, may have been ‘agreed’) – given that Germany and France are routinely in the habit of deceiving their ‘fellow’ Europeans, especially the stupid British.

No. The funds were diverted from the Settlement resources, following a set-up mounted over the weekend, with the full knowledge and support of the Obama White House, working to instructions ultimately derived from the Bush apparat, against the Gold Badge Signatory named by the CIA as a formal target for elimination, as cited above.

Knowledge of this CIA elimination order, thought to have been gleaned by UK eavesdroppers from a conversation between the Editor of this service and an impeccably informed US source over the weekend, triggered highest-level British protests to the White House on Sunday, we understand. The British authority wished to know why a CIA death warrant had been issued against the Gold Badge Signatory who is equipped with full authority to procure the finalisation and distribution of the Settlements and Dollar Refunding monies.

(Answer: Because the Bush-DVD-CIA apparat has ordered the Obama White House to block the Settlements, of course. In this context we are told that Obama cannot stand the strain of the ‘Black’ forces preying on him and, given that he is blackmailable (see below), hasn’t got the strength or the guts to tell all concerned to cease and desist from these continuing sabotage operations).

WHITE HOUSE CAMPAIGN TO SABOTAGE THE GOLD BADGE SIGNATORY’S PROGRESS
On top of all this, we have been specifically informed that the same Gold Badge Signatory with the necessary Settlements authorities has been systematically sabotaged, diverted, undermined and otherwise gravely abused over the past few days, on orders from the Obama White House – which in turn now OPENLY acknowledges that it takes its orders from the Chicago Mafia and the George Bush-DVD component of the criminalised Intelligence Power, which serves the interests not of the United States and the American people, but of Germany and its twin, France.

Hence, in the above scenario, it was natural and routine for Merkel and Sarkozy to check with President Barack Obama just to make sure that the funds would be/had been diverted from the Settlements resources, so that the latest financial wheeze designed to delay the collapse of the German hegemony project, could be nailed into place, at least for public consumption purposes.

RON PAUL: ‘YOU CAN’T BAIL OUT DEBT WITH DEBT’
One Congressman who does understand the advanced form of madness driving the White House, the Treasury and the Federal Reserve, as they continue wilfully down the wrong path, is of course Representative Ron Paul, who points out that ‘you can’t bail out debt with debt’. No, as we have repeatedly explained, you can’t: but that is precisely what these desperate financial terrorists are doing, in order to keep their hot air balloon in the air and the carousel continuing by exploiting the collective stupidity of foreign central banks.

These include the Bank of Japan, the Bank of England, the Bundesbank, the Banque de France, the Swiss National Bank and the European Central Bank – which, for some unexplained reason, have not yet realised that the Federal Reserve is corrupt and compromised, and that the US authorities are following a course guaranteed to lead to financial and economic catastrophe.

A system effectively of 90-day repos has been arranged whereby these dumb central banks will be printing their own currencies, and stuffing them to the Federal Reserve on behalf of the Treasury, in exchange for Treasuries. But Treasuries are completely worthless: as indicated below, nobody in the marketplace who’s not in need of brain surgery wants US Treasuries these days.

So the crazed US authorities are using up the only undeserved residual source of goodwill they have left – the rather ‘thick’ central banking community. Foreign central bankers need to wake up and come to their senses. By accommodating the US authorities via these exotic operations, the foreign central banks, including the Bank of England which has been repeatedly ripped off by these sheisters, are merely buying more time for the desperate clique in charge of America’s progressive financial and economic destruction, to complete the collapsing of the system.

The right thing to do when confronted with bandits in your front room is to order them out of the room, or to shoot them dead. You hardly invite them to sit down and have a nice cup of tea and cake. The central banks that are accommodating the American official financial criminalists are choosing the easy option: which means that all they are doing is stacking up worse trouble for the future, and guaranteeing that when the US financial balloon explodes, all the subsidiary financial balloons held aloft by these myopic central bankers will explode in tandem.

SEVERE PROBLEMS EMERGE ON THE FOREIGN EXCHANGE MARKETS
There’s also severe trouble on the foreign exchange markets. New York dealers are complaining that only spot forex trades are being handled, because foreign exchange dealers can no longer trust counterparty banks to honour spreads agreed-upon at the time of the transaction.

And with the Federal Reserve arrogating to itself effectively the rôle of the world’s primary foreign exchange centre, as well as the rôle of rediscounter for the central banks, the emerging state of affairs is that the most unsound, decadent, corrupt and failing central banking system in the world believes that it can remain in business sine die by means of these artificial arrangements involving the creation of new debt for old.

Since the named central banks evidently believe that this is possible, they deserve what is coming to them. As for the Bank of England, which knows all about the private sector US Dollar Refunding operation to be conducted out of London (as has been reconfirmed to us on 11th May, by the way), it appears to be no better than Merkel and Sarkozy.

Like elements of MI-6, it is evidently sabotaging the British Monarchical Power. There has always been a serious problem inside the Bank of England: and you’ve only got to observe the lugubrious physiognomy of Mr (still not even knighted) Mervyn King, the Bank Governor, to recognise that this must indeed be the case. Otherwise he’d smile occasionally. But he never does.

‘BUSHES SHOULD BE STRUNG UP IN PUBLIC LIKE SADDAM HUSSEIN’
Reverting to the CIA’s order to assassinate the Gold Badge Signatory authority, it was explained to us on the transatlantic phone between 10.45 p.m. and 11.00 p.m. on Saturday 8th May 2010 that this desperate criminal CIA order reflects the demands of George H. W. Bush Sr. and George W. Bush Jr., whose selfish interests are directly opposed to those of the United States, the American people and the Rest of the World, and that:

• George H. W. Bush Sr. should be arrested as a terrorist and should be made to suffer the same fate before TV cameras as Saddam Hussein, to prevent the further irreparable damage that he is knowingly inflicting on the whole world, and that:

• George W. Bush Jr. should likewise be arrested as a terrorist and should be made to suffer the same fate before TV cameras as Saddam Hussein, to prevent the further irreparable damage that he is knowingly inflicting on the whole world.

This fate should, our transatlantic correspondent explained, be fulfilled in front of the TV cameras so that everyone holding or seeking official positions in the United States is compelled belatedly to understand that public service involves exclusively service to the people of the United States, and not opportunities for personal enrichment.

George Bush Sr.’s possibly prophetic observation, indicative of his innermost fears, that ‘if the American people knew what we’d done, they’d string us up from lamp posts’, may yet be realised.

BUSH SR.’S U.S. AIR FORCE INTELLIGENCE HANDLER
IS ‘OCTOBER SURPRISE’ SR-71 PILOT GORDON SYMMONS
These Fascist criminals are intellectually impaired, just like Mussolini. The reoffending criminal mentality is, by definition, stunted. We are informed that George Bush Sr. is being handled these days by the very same SR-71 stealth plane pilot (US Air Force Intelligence) who flew him to Paris for the ‘October Surprise’ coup designed to deprive Jimmy Carter of re-election, in favour of Ronald Reagan, whom George Bush Sr. soon took steps to try to have assassinated (an operation that was botched), so that he himself could take over as President.

It is this US Naval Intelligence operative, Gordon Symmons, resident in Chesapeake, VA, who is telling Bush Sr. and Jr. what to do, and how to respond to the unprecedented pressures being applied against the Bush Crime apparat and its CIA-DVD satrap community – advising them on how to resist all pressures, come what may, even if this means destroying the entire global financial economy, so that they can keep what they have stolen.

This traitor Symmons is, we understand, the ONLY technician-adviser left serving the nefarious, discredited and loathed serial criminal, George H. W. Bush Sr. Recall that, as we have reported, the heinous ‘Black’ fabrication and disinformation operative Thomas Heneghan’s handler is the US Air Force Intelligence convicted securities fraudster Otis C. Johnston (1). The reason for the central rôle of US Air Force Intelligence is that it is this rogue component of the hideously dangerous, out-of-control US Intelligence Power that controls the United States’ nuclear weapons.

FATAL MISCALCULATION BY WHITE HOUSE-C.I.A. DESPERADOS
This formal CIA elimination order and threat against the Signatory Gold Badge turns out to be a fatal miscalculation – not least because given this posting, the information is now in the public domain. The standard response procedure with the intelligence we publish is as follows:

• The controlled, flaky diversionary fabrication and disinformation websites typically pick up a peripheral point while ignoring the critical information contained in the report; and:

• Because of several successful early operations by MI-6 against the Editor of this service, using that two-faced veteran UK journalist Gordon Thomas as intermediary, the British media, being gullible and ‘unaware’ of dirty tricks, were persuaded to pay no attention to what we publish. The purpose of those operations, involving direct lies about the Editor (which took place back in 2004 and 2005), and a set-up, was to ensure that the British media would disregard the biggest financial corruption exposure reportage operation in world history – as a result of which the ‘mainstream’ has been floundering and barking up the wrong trees ever since.

Nevertheless, we have, as a direct consequence of the miscalculations of Mr Wanta who, in pursuit of his own and Bush Sr.’s objectives, magnified our platform via the French intelligence electronic distribution network in 2006-2007, managed to perform an ‘end-run’ around the sleepy ‘mainstream’ media – despite the 37 threats (of which seven were death threats) received by the Editor of this service in the course of this investigation (over the period 2002-2010).

Now we have hard intelligence that the US Gold Badge official Signatory, who serves the United States, but also has to work with elements of British intelligence as well, is at the receiving end of an OFFICIAL C.I.A. ELIMINATION ORDER, the purpose being to sabotage the Settlements payouts process by killing the holder of the crucial necessary signatory powers.

WORLD COURT ORDERED BREAKUP OF 19 U.S. CRIMINAL FINANCIAL ENTERPRISES
All this is taking place against the background of the fact that about two weeks ago (we now learn), a World Court order was obtained demanding the break-up (i.e., dissolution) of 19 American banks, under the Lien powers held by the Lien holders – which order the banks are defying, just as Bank of America is defying its legal responsibility to disgorge the funds which are ready for disbursal and must be paid out. Transatlantic tensions over this are at the explosion stage.

FURTHER WAVES OF ARRESTS REPORTED:
CORRUPT PENTAGON’S CONSPICUOUS INACTIVITY
Moreover this has remained the case DESPITE further waves of arrests, on top of the previously reported 30 or so arrests which took place in late April, which have been reported to us and were reconfirmed on 7th May 2010. In other words, when you yank a dozen snakes out of the snakepit, a dozen more take their place.

This raises the issue: what is the Pentagon doing about this – admittedly, a pointless question, in view of the control exercised over the Bushsnakes by US Air Force Intelligence operative Gordon Symmons? The US military can, at the drop of a helmet, surround the banks, procure compliance at the barrels of guns with the absolute requirements of the Pay Orders and presumably also of the Basel List including the Line Item covering the Refunding Loan payment – the only problem being that it is presided over by a former CIA Director of Central Intelligence.

But even Mr Gates, having seen his department scammed and ransacked by Halliburton [see the preceding report, on which NONE of the diversionary US websites sponsored by the controlling Intelligence Power have commented, of course], must by now realise that there is no future for the United States if the criminalist behaviour of the Intelligence Power that he fronted in the past is allowed to persist. So is this man the complicit, compromised and controlled wimp he seems?

CHENEY HALLIBURTON SCAMMING DETAILS SENT TO WAXMAN IN 2008
Concerning our Halliburton re-exposure (2), it is to be noted that, as stated in our original report dated 26th May 2008, the information in question was leaked after it had earlier been made available to Congressman Waxman. Which sheds an interesting light, does it not, on the demands made upon Halliburton by Mr Waxman’s Committee, set out in his letter dated 30th April 2010 concerning the cementing operations conducted on the British Petroleum Oil rig in the Gulf of Mexico prior to the blow-out (which we reproduce again as Note (3) below). Given this connection, we prefer to rely on Mr Waxman’s detailed knowledge of the dual scamming operation by Halliburton within the CIA and the Pentagon as the source of his Committee’s obvious immediate suspicions concerning the rôle of Halliburton in the perpetration of this latest abomination.

Of course, Mr Waxman has a severe problem here, as well. Given the devastating corruption exposed in our reiterated Halliburton scamming report, what did he do with this information in 2008? Logic would suggest that it was his Committee which will have made the grotesque, officially condoned scamming information available to a Grand Jury which, we understand, has considered this scandal. But has the information gone nowhere and been sealed, in order to protect Cheney, the Box Gang and the corrupt Intelligence Power of which Halliburton is itself an outgrowth?

GULF OIL RIG EXPLOSION: A ‘BLACK’ RETALIATION OPERATION AGAINST THE BRITISH
Only ten days prior to the blowout, Halliburton conveniently snapped up a giant marine firefighting corporation for $250.00 million. Persistent suggestions that Goldman Sachs shorted Transocean immediately ahead of the blow-out refuse to be erased from the record, although we removed our initial reference to this pending further research. Most tellingly of all, as always occurs after these atrocities, the stories keep a-changing. There was no Deadman switch. Now, all of a sudden, it is reported that there WAS a Deadman blowout preventer. And to rub in BP’s humiliation, corporation executives are now reported to have been on board at a party to celebrate BP’s safety record, and the first explosion occurred in the room next to where the party was being held. This would have been known days ago, one would have thought.

Given former US criminal Vice President Richard B. Cheney’s integration with Halliburton, what are the odds that this was indeed a malicious sabotage operation against this prime British asset by the infuriated and utterly desperate Bush-CIA Crime apparat, in the face of the intense pressure that is continuing to be exerted on the Octopus by the British Monarchical Power? Clearly, they must be rated as exceptionally high. In this connection, given the extent of our partial knowledge of what is taking place behind the scenes in the context alluded to herein, all other ‘explanations’ for the blowout can be seen to serve the usual obfuscation and diversion objectives.

After all, the standard ‘Black’ counterintelligence procedure after each abomination has been perpetrated, is to seek to befuddle and bamboozle the necessarily confused general public with contradictory, conflicting, unprovenanced, anonymous, spoof, partial, inconsequential, fabricated and often deliberately provocative website lies and sequences, in order to ensure that gullible people run after the sterile red herrings served up for that purpose, so that the crucial facts that have been revealed are bypassed and ignored. As we have frequently pointed out, this is a far more sophisticated modus operandi than that applied by Dr Joseph Goebbels, whose method(replicated by the Soviets) was to repeat a single lie so relentlessly that it morphed into ‘the truth’.

With the abuse by malevolent counterintelligence of modern electronic communications, you get untutored people who can’t distinguish between opinion and fact to do your dirty work for you: hence the invention of that diabolical cesspit called ‘the Blog’.

OUR EXPOSURE OF THE HEMENWAY SHOOTING
LIFTED WITHOUT ATTRIBUTION, AND OUT OF CONTEXT
A recent case in point was the irresponsible posting, WITHOUT ATTRIBUTION and completely out of context, by www.freerupublic.com, of our originating briefing report on the assassination of the youngest son of lawyer John Hemenway, who brought a Quo Warranto action against President Obama. John Hemenway Jr., 47, was shot dead in Bedford, VA; and as you must surely be aware, by definition, any atrocity that takes place in Virginia, home of the criminalised US Intelligence Power, is always especially suspect.

Our text having been lifted without attribution, the abomination was then elaborated by people (via that wayward website’s attached ‘Blog’) with absolutely no knowledge of the situation, divesting themselves of knee-jerk reactions to a state of affairs of the utmost gravity, as evidenced by the following circumstances:

• President Obama ‘joked’ about his missing birth certificate at an event for the ‘mainstream’ press on the self-same day as the shooting.

• After we had been informed that an autopsy was taking place, the body of John Hemenway Jr. was cremated the day after he was shot.

• A strange blanket of silence descended on the matter after our initial report, and as far as we can gather, no report about the shooting appeared in any so-called ‘mainstream’ outlet.

• Our impeccable US source informed the Editor on 3rd May: ‘I personally know that John (Jr.) would never commit suicide for any reason, and it’s strange that nobody knows what happened…. I don’t think his family will ever be able to find out what happened to him, and the authorities haven’t disclosed anything which could be helpful to the family’.

Meanwhile John Hemenway Sr., aged 84, bears the burden not only of the Quo Warranto lawsuit against Obama but also of the sudden loss, by an ‘unexplained shooting’ in Bedford, VA, of his youngest son of the same name.

The Memorial took place on 4th May, as we have reported, and we repeat the text of the Memorial as Note (4) below, just in case anybody dares to doubt what we have stated.

WAS THIS ANOTHER C.I.A. ELIMINATION ORDER,
OR WAS THE SHOOTING ORDERED BY OBAMA (OR BOTH)?
Knowing the depths of depravity to which the serpents that we are having to expose routinely descend, it is far from unlikely that the Presidential ‘joke’ referenced above, which the gullible and increasingly discredited US ‘mainstream’ media representatives thought was funny, represented a ‘Black’ act of ‘in-your-face’ defiance by Mr Obama over the legitimacy issue; and if that obvious deduction is correct, then of course the President of the United States, with his known Mafioso links (see below), knew all about the hit, didn’t he?

Which leaves the unresolved issue of why the body was cremated almost immediately after we were told that an autopsy was taking place. This kind of thing only happens when a dirty deed has to be covered up. The suggestion from one of our sources is that John Hemenway Jr.’s wife ordered the immediate cremation: but given the known sunny character of the late Mr Hemenway Jr., a patent attorney described by our main informant as ‘a very kind soul’, none of this ‘stacks’.

As a consequence of which, we entertain the very gravest suspicion about this murder – namely that it was ordered or sanctioned by the President of the United States: or that it was another FORMAL C.I.A. ELIMINATION ORDER. Which amounts to the same thing.

CITIBANK, ATHENS, WHERE WANTA SET UP BUSH ACCOUNTS,
BOMBED, THREE KILLED: NOT A COINCIDENCE
Meanwhile, amid the revolutionary disintegration in Athens recently, it has not passed unnoticed that it was Citibank, in Athens, that was bombed, and where three bankers were killed. It will be recalled that we have repeatedly noted the rôle of Citibank, Athens, as the counterparty holder of a vast stash of worthless derivatives exchanged by complicit Greek personnel for Euros, in trading collaboration with agents of the Bush Financial Crime apparat. And where, inter alia, did the felon, serial fraudster and Bush Sr. courier-lackey, Leo/Lee Wanta, open accounts on behalf of his boss, George Bush Sr.? Why, with Citibank, Athens.

And it was the serial fraudster and felon Leo/Lee Wanta – who deceived the Editor of this service and exploited our publicity platform for 18 months, while scamming him of his $35,000 loan – and who, having established the Ionian Bank in Cyprus on behalf of Bush Sr., worked with the Italian-based CIA counterpart operative, Marco Saba, effectively preparing the bankrupting of Greece.

‘EUROPEAN CRISIS’ MADE IN WASHINGTON, D.C.
So, as you can see, the ‘European crisis’ is directly connected to, and a specific consequence of, the Fraudulent Finance operations mounted by the Bush/CIA/DVD criminal apparat that we alone have been burdened with exposing, and which the so-called ‘mainstream’ media have sidestepped and ignored – thanks, in the case of the British press, to its stupidity in paying any attention to the malicious early operations of MI-6 perpetrated against the Editor of this service, whose job is to go behind the financial news to bring our subscribers intelligence not reflected in the ‘mainstream’.

• In the case of The Daily Telegraph, for which the Editor used to contribute extensive op-ed articles in the 1970s and 1980s, the false witness lies about the Editor were almost certainly fed in by the veteran journalist Gordon Thomas, who writes articles for the newspaper to this day.

EARLY BUSH II/MI-6 ATTEMPTS TO STOP OUR INVESTIGATIONS
USING GORDON THOMAS AS DUPLICITOUS INTERMEDIARY
In late 2004, Gordon Thomas informed the Editor that after George W. Bush was ‘re-elected’ that November, US official sources asked MI-6: ‘What are you going to do about Mr Story?’

MI-6 then responded by mounting an entrapment operation exploiting the fact that the Editor had unfortunately not realised that American Free Press, which had commissioned an article by him, was in fact the phoenix version of the notorious Spotlight publication, run by an anti-Semitic CIA cadre out of an office in lower Pennsylvania Avenue. The simple set-up technique, in which the CIA cadre running the operation directly participated, was to arrange for a Telegraph journalist to call up the Pennsylvania Avenue office during the period when the Editor was in that office (in order to collect a cheque which of course the CIA cadre had failed to pay).

• That conveyed to the Daily Telegraph journalist the false impression that the Editor is anti-Semitic, the object of the discrediting ploy.

MI-6 also disseminated lies to the British media about the Editor’s alleged involvement with Mark Thatcher in connection with the Equatorial Guinea fiasco, and with the dirty drug-dealer and Blair supporter Bernie Ecclestone, in connection with some scamming operation out of Monaco. Gordon Thomas was directly involved as ‘Black’ intermediary in the promulgation to the Editor of these lies, which he said had been disseminated ‘in order to make you sit up’.

• The Editor responded by redoubling his efforts to find out in much greater detail what MI-6 and the Bush II régime were attempting to cover up: hence this investigation and these reports.

The Editor’s personal experience, confirmed by others, is that everyone who ventures to expose these serpents is liable to find himself at the receiving end of malicious lies, false witness, and usually attempts at a set-up. We were set up and exploited by Mr Wanta, and when we severed relations with that snake, the Editor thought that a million emails would arrive from clever-clogs lambasting him with ‘told you so’ messages.

In actual fact, we didn’t receive ONE SINGLE COMMUNICATION to that effect. When the Editor repeatedly asked knowledgeable US sources why this was so, the tired response was this:

‘Wanta is the world’s most accomplished deceiver and liar. He’s deceived everybody. So your experience isn’t even interesting’.

• When MI-6 considered that they had deceived the ‘mainstream’ media by bearing false witness against the Editor of this service, they were able to inform their criminal colleagues in the Bush II Administration that they had successfully ‘handled’ the situation, which turned out to be inaccurate.

NOBODY WHO’S NOT IN NEED OF BRAIN SURGERY
WANTS TO BUY THE U.S. TREASURY’S ‘TRASHETS’ ANY LONGER
On 5th May, the Financial Times reported from New York that the US Treasury had announced the first reduction in US Government debt sales since 2007, reflecting ‘improving economic growth’ which was ‘buoying tax receipts’. The official spin, absorbed lock stock and barrel by the British financial newspaper, was that given an economic turnround, the US Treasury didn’t need to sell as much debt as it needed to previously. Quarterly debt sales due in the week beginning on 10th May would be reduced by $3.0 billion, to $78 billion, compared with the February refunding.

U.S. TREASURY’S LIES AND SPIN EXPOSED BY
THE OFFICE OF MANAGEMENT AND BUDGET’S DEBT STATISTICS
However if we look at the US Office of Management and Budget’s statistics (notwithstanding their notorious unreliability), we find that the Statutory Debt Limit was raised to $6.4 trillion on 28th June 2002, and to $10.6 trillion on 30th July 2008. On 17th February 2009, in parallel with Mr Obama’s first Budget, the Statutory Debt Limit was increased from $11.3 trillion (effective from 3rd October 2008) to $12.4 trillion for the rest of Fiscal Year 2009.

• The estimated figure to which the Statutory Debt Limit will need to be raised in Fiscal Year 2010 is $13.8 trillion, rising to an estimated $19.7 trillion by Fiscal Year 2015.

If we review another OMB series, we find that what the official budgetologists refer to as ‘Gross Federal Debt’, at $9,986,082 billion, is offset by ‘Debt Held by Government Accounts of $4,183,032 billion, falsely implying that the actual indebtedness of the Federal Government at the end of the 2008 Fiscal Year was $5,803,050. However as we have repeatedly explained both here and in our International Currency Review, ‘Debt Held by Government Accounts’ represents the mandatory entitlement obligations of the Federal Government.

This ‘smoke and mirrors’ arrangement hides the enormity of the Government’s true indebtedness (on the basis of the OMB’s official data, which are the only data available, even though they are largely nonsense), under a statutory requirement whereby the surpluses accrued in the so-called Budget ‘Trust Funds’ are ‘invested’ in the ‘Federal Funds’ accounts (current expenditure) – which means that these earmarked surpluses have all been squandered. But the future obligations which the surpluses existed to fund, remain unchanged.

Therefore, instead of being subtracted from the ‘Gross Federal Debt’ data, these amounts (which are referenced by OMB as ‘Debt Held by Government Accounts’) have to be ADDED BACK TO the Gross Federal Debt data. With this necessary adjustment, the ‘Adjusted Federal Debt’ using these numbers amounted to $14,169,114 billion at the end of Fiscal Year 2008. On the same calculations, the ‘Adjusted Federal Debt’ aggregates $18,275,577 billion by the end of Fiscal Year 2010 (30th September 2010), reaching $19,789,733 billion by 30th September 2011 and $25,378,196 billion by 30th September 2015. And, as indicated, these calculations use the OMB’s unreliable statistics.

Just how unreliable they are is now openly acknowledged by the Office of Management and Budget itself, which has XXXXXXXXXed out the later numbers because the OMB seeks to avoid excessive condemnation for misleading the public (which it has in fact been doing at least since President Carter’s time, but never mind). If you press an XXXXXXXXXed line, a number will appear at the top indicating what is hidden. Presumably the idea here is to convey to the fleeting observer that the OMB is hedging its bets, but the ‘experts’ can discover what is being covered up by pressing the hidden number (on the OMB’s website).

There is no difference between these presentations and the fake numbers we used to have to grapple with under overt Communism, when analysts were confronted with the impossible task of making sense of the falsified statistics promulgated by Comecon. For good measure, the OMB’s published budget deficit data, which entail known falsifications, are worth adding here. According to these data, the United States’ published Federal budget deficit for Fiscal Year 2008 was $458,555 billion. The figure for Fiscal Year 2009 rose to $1,412,686 billion, and the OMB’s official projection for Fiscal Year 2010 is $1,555,582 billion.

There is no way that these data can possibly be reconciled with the US Treasury’s 5th May 2010 announcement, heavily spun by ‘Hill and Knowlton’, that it is now possible to reduce quarterly debt sales at all – sales, that is, of debt to GENUINE PURCHASERS. But in order to disguise the reality – that it cannot sell Treasuries into the gullible financial markets as of old, so it has been ‘selling’ Treasuries to the Federal Reserve (and probably to its own accounts) instead – the US Treasury is representing that ‘things are improving’, which will alleviate the pressure to sell more debt.

IT’S NOT THE ECONOMY, STUPID: IT’S THE MATHEMATICS
Unfortunately for the Treasury’s spin-meisters, not everyone is quite as gullible as the financial market gurus so eagerly sought out by ‘mainstream’ financial journalists, as they seek to pad out their dreary reports on such subjects. For it is neither here nor there HOW MUCH THE ECONOMY IMPROVES, even if it IS improving: and who knows, given official, Comecon-style manipulation of the macroeconomic data as well?

It is not variations in economic activity and the consequent increase or decrease in the tax take which are the pertinent factors here. It is the RELENTLESS LOGIC OF THE UNDERLYING DEBT MATHEMATICS, some detail of which we have demonstrated above (albeit having had to use the OMB’s intrinsically unreliable numbers).

What this means is that even if the US economy were to grow at Chinese rates, the TREND of the underlying US debt mathematics would not change for many, many years. Such growth rates would indeed fill gaps and would alleviate the need for the Treasury to issue debt on the permissive scale to which it had become accustomed. But the logic of the mathematics would not be changed: the pace of the deterioration would be reduced, and no time horizon that makes sense could be relied upon to pinpoint the ‘magic’ moment when debt accumulation stalls, and moves into reverse.

Of course there is no prospect of the US economy (now that it’s so irrevocably Third World in so many respects) ever growing at such rates: so further consideration of this model would be futile.

Which reveals what REALLY underlies this PR statement carried in the Financial Times on 5th May: The US Treasury cannot issue Treasuries to marketplace buyers on any meaningful scale, which means that its Treasuries issuance fest has collapsed, as we predicted would happen: all it can do is to issue paper to the Federal Reserve.

And lo! When we review the Office of Management and Budget’s data on this score, we find that the column headed ‘Debt Held by the Public’ is XXXXXXXXXed right the way back to 1983. This was emphatically NOT the case when we last examined these data several months ago.

Within the category ‘the Public’, resides the Federal Reserve itself, as the Fed is a private sector institution. Now the OMB numbers reflecting official debt held by the Federal Reserve ‘remain intact’ (i.e., have not been XXXXXXXXXed). Which means, does it not, that the adjacent column obfuscates the situation: otherwise the OMB would surely not have considered it necessary to XXXXXXXXX these data right back to 1983.

SOUND MECHANICS OF THE APPROVED PRIVATE SECTOR DOLLAR REFUNDING OPERATION
As you know, all this gross deception could have been avoided had the loan made available by the British Monarchical Power on 19th-20th June 2007 via the Bank of England not been hijacked and diverted by Bank of New York (Mellon) on the instructions of then US Treasury Secretary Henry M. Paulson Jr., the former CEO of Goldman Sachs, which is the subject of the SEC’s devastating Civil Complaint [see text in our report dated 18th April 2010].

Those loan funds were intended for the Dollar Refunding operation agreed to by the Group of Seven Financial Powers in both 2006 and 2007, and urged by Her Majesty the Queen ‘for the sake of the whole of humanity’. Since it would appear that, even at this late stage, observers have simply not understood what all this is about, we re-explain it in this segment.

The US Treasury’s decadent intention, held together by the Bush bribes accepted by Geithner, Biden and Emanuel (see above), has been not only to retain the $6.2 trillion loan (i.e. to STEAL the loan funds in perpetuity), but to retain control over the Refunding by performing it below the radar internally – and pulling the wool, as always, over the eyes of the gullible financial markets (Market participants and analysts think they are exceedingly clever at all times, but usually nit-pick around ephemeral data and information, failing to see the density of the wood behind the trees). So here’s an elementary lesson in economic accounting, applicable to the Refunding:

(1): If the Government does the refunding (e.g., by issuing exotic instruments and engaging in ‘creative’ trading with counterparties with incredible rates of return), the accounting position is that the other side of the balance sheet accumulates MORE DEBT to offset the instruments issued.

• Furthermore, as in this context the Government cannot tax itself, NO MEANINGFUL REAL TAX REVENUES ACCRUE ON-BALANCE SHEET to the Treasury, which is the object of the exercise.

(2): By contrast, as the $6.2 trillion sovereign fund is a LOAN, to be used exclusively in the PRIVATE SECTOR (NOT within the Government sector, below the radar where it is open to ongoing abuse) the following entirely opposite accounting situation applies:

• The transparent, taxable securities transactions conducted in the private sector Dollar Refunding operation generate ON-BALANCE SHEET TAX REVENUES payable directly to the Treasury ON-BALANCE SHEET, thereby immediately amortising accumulated ‘background’ debt.

• The other side of the balance sheet to these transactions is the LOAN FUND.

Is it really necessary to acquire First Class degrees in accounting and economics in order to UNDERSTAND that THIS is THE SOLUTION, and THE ONLY SOLUTION?

And is it not a fact that the persistent opposition to this G-7-approved solution by the Bush II and Obama White House, and by the Paulson and Geithner Treasury, represents not merely grotesque dereliction of the incumbents’ duties to serve the interests of the American people and the United States to the absolute exclusion of all other considerations, but also entitles these highest-level operatives to be arrested for TREASON AGAINST THE UNITED STATES?

UNATTRACTIVE OUTBREAK OF COORDINATED ‘BLANKFEINISM’
Meanwhile some of the most egregious perpetrators and financial criminals have been practicising in the mirror of late to perfect their expertise in the art of Leninist ‘contradictions’ – a.k.a. speaking out of the left-hand side of their mouths as though no-one had noticed that their actions have all along diverged from their verbal assertions.

First, the former US Treasury Secretary, Henry M. Paulson Jr., the man who ordered the $6.2 trillion sovereign loan fund to be hijacked, diverted and effectively stolen in 2007 [see above], appeared before the Financial Crisis Inquiry Commission on 6th May to ‘caution’ that all investment banking transactions must be done ‘with the highest standards of fair dealing’.

Observe how this criminal financier and operative made his point: he told the Commission that such transactions ‘must’ conform to high standards, which is not the same thing as acknowledging that Goldman Sachs and the other Fraudulent Finance specialist houses have been engaged in implementing ‘the highest standards of fair dealing’ or are currently so engaged.

In other words, Paulson said nothing at all. He just made a statement to which no objection could be taken and which bore no relationship at all to the routine Fraudulent Finance operations over which he presided as Treasury Secretary and as CEO at Goldman Sachs.

Moreover, like all these criminal financiers, Paulson skated over the fact that under US law, and in all Common Law countries, securitisation is absolutely illegal [see our report dated 18th April 2010]. For Paulson, there was never any problem with securitisation – which, being translated, means that Paulson remains content, to this day, that the Rule of Law should continue to be trampled on, which as we have so extensively exposed, is in any case his normal modus operandi.

S.E.C. CASE AGAINST GOLDMAN WALKS ROUND THE ELEPHANT IN THE BEDROOM
Of course, as we have pointed out, the very Civil Case brought by the Securities and Exchange Commission [SEC] itself against Goldman Sachs [see report, 18th April 2010] addresses alleged fraudulent behaviour by Goldman Sachs but EVADES the broader reality that securitisation is illegal. In other words, the SEC’s case against Goldman Sachs addresses fraudulent operations conducted by the institution within the overall context of illegality. The SEC could perfectly well, in theory, round on all these corrupt speculating Fraudulent Finance institutions on the ground that they have been engaged in marketing fraudulent securities, beginning with the central reality that if the original mortgagor (in the case of mortgage-backed securities (MBS)) had not knowingly given his or her specific written consent to the assignment of the asset, then all derivative transactions have been and are NULL AND VOID.

SINCE ALL SECURITISATION IS ILLEGAL, ALL DERIVATIVES
CONTRACTS ARE FRAUDULENT AND THEREFORE VOID
As previously noted, this is the gigantic elephant in the bedroom. Because what this means is that 100% of derivatives transactions, past and ongoing, are fraudulent; and where a contract is entered into to facilitate fraud, it is automatically voided. So, like former US Treasury Secretary Paulson, the SEC is itself co-conspiring in the perpetuation of the fabrication that securitisation is legal, which is not the case. We explained all this in excruciating detail in International Currency Review, Volume 34, Number 2, the theme of which was ‘The Legalisation of Financial Corruption’.

In fact, the ‘legalisation’ implied is illusory: what has happened is that ‘because everyone was doing it’, the immense breach of the law that this criminal behaviour entailed was simply ‘legalised’ by the authorities turning a blind eye to what was going on – something that came easily, as so many high-level officials were enriching themselves in the process.

PAUL VOLCKER DESTROYS HIS REPUTATION FOR INTEGRITY
On the same date (6th May 2010), the former Chairman of the Federal Reserve Board, Paul Volcker, now Chairman of President Obama’s Economic Recovery Advisory Board, unilaterally destroyed his reputation for integrity by writing a letter to Senators stating that ‘The provision of derivatives by commercial banks to their customers in the usual course of a banking relationship should not be prohibited’. In other words, Volcker agrees with Paulson that the Rule of Law should continue to be disregarded by the banks, thereby destroying his repuation for integrity.

Mr Volcker’s letter, sent from his Fifth Avenue, New York City, apartment, read as follows:

May 6, 2010

Dear Mr Chairman [Senator Dodd]

A number of people, including some members of your Committee, have asked me about the proposed restrictions on bank trading in derivatives as set out in Senator Lincoln’s proposed amendment to Section 716 of S. 3217. I thought it best to write to you directly about my reaction.

I well understand the concerns that have motivated Senator Lincoln in terms of the risks and potential conflicts posed by proprietary trading in derivatives concentrated in a limited number of commercial banking organizations. As you know, the proposed restrictions appear to go well beyond the proscriptions on proprietary trading by banks that are incorporated in Section 619 of the reform legislation that you have proposed. My understanding is that the prohibitions already provided for in Section 619, specifically including the Merkley-Levin amended language clarifying the extent of the prohibition on proprietary trading by commercial banks, satisfy my concerns and those of many others with respect to bank trading in derivatives.

In that connection, I am also aware of, and share, the concerns about the extensive reach of Senator Lincoln’s proposed amendment. The provision of derivatives by commercial banks to their customers in the usual course of a banking relationship should not be prohibited.

In sum, my sense is that the understandable concerns about commercial bank trading in derivatives are reasonably dealt with in Section 619 of your reform bill as presently drafted. Both your Bill and the Lincoln amendment reflect the important concern that, to the extent feasible, derivative transactions be centrally cleared or traded on a regulated exchange.

These are needed elements of reform.

I am sending copies of this letter to Secretary Geithner
and to Senators Shelby, Merkley, Levin and Lincoln.

Sincerely

[Signed] Paul.

No matter, then, that securitisation is illegal so that all derivative transactions are likewise illegal under US and Common Law. Neither Paulson nor, it is now clear, Paul Volcker, are in any way concerned about the fact that these transactions are ALL FRAUDULENT.

So far as Mr Volcker is concerned, the banks should be allowed to CONTINUE ENGAGING IN FRAUDULENT FINANCE. Maybe it’s all got too much for the former Fed Chairman.

Alternatively, he may be indifferent to the fact that, with this single letter, he has unilaterally destroyed his towering reputation for integrity and probity.

PUBLIC HAND-WRINGING BY ‘PUT-UPON’ BLANKFEIN
On 7th May, Mr Lloyd Blankfein addressed investors at Goldman Sachs’ Annual Meeting, behind a significant police presence in the street.

Metaphorically holding his hands out to create an impression of penitence, Mr Blankfein promised a ‘rigorous self-examination’ of his firm’s business practices. He would promote ‘ethical principles’, implying that these had been lacking in the past (accurate). An experienced US annual meetings attendee, Evelyn Davis, branded Blankfein as ‘Lord Goldmine’, suggesting that he should resign by Monday 10th May in order to retain ‘what little dignity’ he had left.

Mr Blankfein was forced to field two hours of hostile questioning from disaffected investors at the meeting, amid reports that Goldman has begun discussions with the SEC in pursuit of a possible out-of-court settlement of the SEC’s Civil Case against the firm. But the Civil Case opens up the prospect of multiple litigation against Goldman, including R.I.C.O. suits: so Goldman’s 259 lawyers may have advised the firm to seek an accommodation with the SEC as quickly as possible.

It is probably unnecessary to over-emphasise the obvious point that a financial institution that needs to employ 259 lawyers must, by definition, be accustomed to sailing ‘close to the wind’.

• Such an enormous contingent of in-house lawyers is clearly ‘telling us something’.

BUSH II AND CLINTON CAUTION AGAINST GREED IN CHICAGO
You may now need to have your private vomitarium handy. To complete this account of highest-level financial fraudsters attempting to transform themselves verbally into paragons of rectitude, Forbes magazine reported on 6th May that former President William Jefferson Rockefeller-Clinton and George W. Bush appeared together at a ‘Biotechnology Conference’ in Chicago held between 3rd and 6th May. It was on 6th May that the Settlements payouts were once again aborted, and the sabotage was committed, we understand, via these criminal Presidents’ Mafiosi associates based in Chicago, where the FBI’s Division Five is allied with the underworld.

The gullible or duplicitous Forbes reporter wrote that ‘on a visit to Chicago on Tuesday, I was very encouraged to hear Bill Clinton and George W. Bush deliver [on 4th May] a remarkably non-partisan message to elected officials regarding future regulatory or tax code changes. Speaking at the Bio International Convention, the two former Presidents suggested that legislators recognize the problems and address the greed, but they cautioned against inhibiting capital formation, since Wall Street is where companies find risk capital to develop the innovations that benefit us all’.

‘The forum where they spoke wasn’t open to the public or the press’ [begging the question of what the Forbes journalist was doing there, then], so there was not a peep about it on the 24-hours-a-day news stations. Too bad. It would be nice for people to learn that when it comes to some of the critical issues, politicians may not be as polarized as skeptics suggest’.

Would you like us to summarise what we think of Forbes magazine on the basis of this offering?

• The level of ignorance of the real criminal world displayed by the author of this verbiage cannot be encapsulated in the English language.

• The two self-acknowledged criminal Presidents’ ‘advice’ to Congress to ‘address the greed’ represented a typical example of ‘Blankfeinist’ deceit. Here are two of the greediest individuals who have ever disgraced the American political scene, whose entire existence both in and out of office has been motivated precisely by GREED, suggesting that Congress should ‘address greed’. Do you now begin to understand the true meaning of double-mindedness, which masks such an unfathomable darkness of the soul?

By ‘recommending’ that greed should be ‘addressed’, these inveterate deceivers convey the impression that they disapprove of greed, when greed is what has driven them all their lives.

• The author’s ignorance incorporates a failure to understand that these two criminal finance operatives have all along been in sync as well as rivals, so when they jointly decide to sing a particular song for the benefit of the dumbed-down goyim, they do so for a reason.

• The naive idea that these operatives are principled people of goodwill, when in fact they are egregious serial financial terrorists driven by GREED who should, we are advised, receive the same treatment as Saddam Hussein, tells you that Forbes either looks the other way, or else languishes in a lazy fantasy world which has no observable connection with reality.

THE CHICAGO MAFIOSO FORK POINTED AT OBAMA
President Obama is reported to rely on five people, of whom four are from Chicago, where Obama knows how ‘the system’ works and is believed to be familiar with the notorious Drake Hotel, where the Mafiosi meet and do their deals with the compromised and blackmailed official structures. They are Rahm Emanuel, his abrasive Chief of Staff, David Axelrod and (until recently) Valerie Jarrett, and Michelle, while the fifth kitchen cabinet member is Robert Gibbs, his chief spokesman.

In Chicago, an early Obama supporter was Alderman Edward Burke, first elected in 1969, who runs the Chicago show for Mayor Richard Daley and chairs the city’s Finance Committee.

To cite the City of Chicago’s website: ‘As Chairman of the City Council’s powerful Committee on Finance, Alderman Burke holds the city’s purse strings and is responsible for all legislative matters pertaining to the city’s finances, including municipal bonds, taxes and revenue matters. Alderman Burke became Chairman for the second time in 1989. He previously served from 1983 to 1987’.

In 2001, the Daily Herald reported that Burke was an early supporter of Mr Rod Blagojevich’s campaign to become Governor of Illinois. On 10th February 1985, a Chicago Tribune article reported how a Chicago mobster, Victor Albanese, wound up on the city payroll, asserting that Alderman Burke performed a favour for John D’Arco, a Democratic Committeeman, by hiring the mobster as a ‘ghost employee’, on $900 a month.

John D’Arco was identified by a former FBI agent, William Roemer, as being a co-opted member of the Chicago Mafia, also known as ‘the Outfit’. At one time, John D’Arco was Chicago’s First Ward Alderman, but was forced to step down after the FBI caught him at a meeting with the ‘Outfit’ boss, Sam Giancana, near Chicago’s O’Hare Airport. D’Arco has been one of Alderman Edward Burke’s links into the Chicago ‘Outfit’.

Another link between Alderman Burke and the Chicago Mafia was Alderman Fred Roti, who died in 1999, who was the most powerful Chicago City Alderman in the 1980s.

In 1989, The Washington Post reported that the former FBI agent, William Roemer, had identified Fred Roti in March 1983 as the ‘Outfit’s’ operative on Chicago’s City Council in testimony before the United States Senate Permanent Subcommittee on Investigations. In 1991, the US Attorney General identified Roti as a member of the Chicago Mafia. In 1999, the US Justice Department described Fred Roti as the Chicago Mafia’s ‘patronage boss’, elaborating as follows:

‘Fred Roti was convicted of RICO conspiracy, bribery and extortion regarding the fixing of criminal cases inside the Circuit Court of Cook County, including murder cases involving organized crime members or associates and was sentenced to 48 months’ imprisonment. Roti was released from prison in 1997. As First Ward Alderman, Roti was a key political patronage boss and, along with his codefendant Pat Marcy, a fixer for the Chicago Outfit. Roti has directly participated in interfering with the rights of the members of LIUNA (Laborers’ International Union of North America) in the selection of their officers and officials in that he has improperly influenced the selection of officers of CIDC (Chicago Laborers’ District Council) and has been responsible for the pervasive hiring of LaPietra crew members and associates at the Chicago Streets and Sanitation Department. Roti is a made member of the Chicago Outfit’.

Alderman Burke, Obama’s champion, regularly met Roti at the Counsellors Row Restaurant across the street from Chicago City Hall. It didn’t bother Alderman Burke that Roti was a mob boss. On the contrary, shortly after Roti’s death, Burke sponsored a City Council resolution honouring Roti’s life, which read as follows [bearing in mind that the phrase ‘family members’ has a double meaning in this context]:

‘Fred B. Roti, a committed public servant, a cherished friend of many and a good neighbour to all, will be greatly missed and fondly remembered by his many family members, friends and associates’.

On 22nd April 2010, Sam Adam Esq., an attorney for Rod Blagojevich, filed a motion in the United States District Court for the Northern District of Illinois, Eastern Division before Judge James B. Zagel, for the Court to issue a trial subpoena to President Obama concerning the disgorging of redacted portions of all tapes and sealed information released under a Protective Order dated 14th April 2009 concerning the scandal surrounding the appointment of Mr Obama’s vacant Senate seat by Illinois Governor Rod Blagojevich [CV 08CR888].

Without going into the convoluted detail of the corruption implied by the Motion, its text states [paragraph 8] that ‘President Barack Obama has stated publicly that he was “confident that no representatives of mine would have any part of any deal related to this seat”. [Press conference by President-elect Obama, 11th December 2008]. The word ‘deal’ is defined by the Merriam-Webster Online Dictionary as a ‘transaction; bargain; contract; an arrangement for mutual advantage’.

Paragraph 9 of the Motion continues:

‘Yet, despite President Obama stating that no representatives of his had any part of any deals, [a] labor union president told the FBI and the United States Attorneys that he spoke to [the] labor union official on November 3, 2008, who received a phone message from Obama that evening’ and that Obama had recommended Jarrett as his Senate replacement.

The case is much more complex than this, but the general flavour can be obtained, for instance, from Pagaraph 14: ‘President Obama has direct knowledge of allegations made in the indictment [against Blagojevich]. In addition, President Obama’s public statements contradict other witness statements, specifically those made by [the] labor union official and Senate Candidate B. It is anticipated that [the] labor union official will be a witness for the Government’.

‘His accounts of events directly related to the charges in the indictment are contradicted by President Obama’s public statement’.

Paragraph 20 reads: ‘President Barack Obama has direct knowledge of the Senate seat allegation [‘deal’]. President Obama’s testimony is relevant to three fundamental issues of that allegation.

First, President Obama contradicts the testimony of an important Government witness. Secondly, President Obama’s testimony is relevant to the necessary element of intent of the defendant. Thirdly, President Obama is the only one who can say if emissaries were sent on his behalf, who those emissaries were and what, if anything, those emissaries were instructed to do on his behalf. All of these issues are relevant and necessary for the defense of Rod Blagojevich’.

Other dimensions involving Obama’s ‘former’ Chicago (mobster) friend Tony Rezko are also raised in the Motion, which also points out that as all these matters occurred prior to President Obama’s Inauguration, none are covered by Executive Privilege.

Paragraph 31: ‘[Federal precedent holds that] no person, even a President, is above the law and that in appropriate judicial proceedings, documents and other tangible evidence within the very office of the President may be obtained for use in those judicial proceedings. Similarly, where the President himself is a percipient witness to an alleged criminal act, the President must be amenable to subpoena as any other person would be’.

Paragraph 32:

‘Here, President Obama is a critical witness. All of President Obama’s testimony would entail evidence he witnessed before he became President and does not involve Executive Privilege’.

ONGOING BLACKMAIL OPERATIONS TARGETING OBAMA TO PREVENT HIM SETTLING
What is the relevance of all this in our broader context? What has been summarised above is evidence of Obama’s Chicago Mafioso connections and background. The whole point about Obama, and why he surfaced in place of Hillary Clinton, is that he can be blackmailed on several levels simultaneously. The best known dimension is the birth certificate/legitimacy issue, which could be used at any time for that purpose.

But an even more potent prospective blackmail dimension is the Chicago ‘Outfit’ connection and background. The Chicago operative Rahm Emanuel was installed as White House Chief of Staff in order to ensure the continued leverage/effectiveness of this prospective blackmail dimension – the objective being to intimidate and control the new President so that he could be relied upon to continue blocking the Settlements payouts (involving many trillions of dollars) in conformity with the Bush-Clinton criminal fraternity’s intention to hold on to what they have stolen, to crash the system and thereafter to pull the off-balance sheet funds onto the ‘books’ buying up the world’s real assets at firesale prices. That is what is in process, and what the Mafiosi have in mind.

Rod Blagojevich’s Motion to subpoena President Obama emerged from a separate blackmail operation against Obama mounted by Blagojevich himself, who is in fact a minor serpent in the Chicago snakepit. More to the point, both Clintons and Joseph Biden were and remain involved in this operation to control Obama by means (as we suggested a long time ago) of blackmail. And it was out of Chicago that George Bush Sr. pulled off the ransacking of Continental Illinois Bank & Trust Company, where the Delmarva funds were placed, where FBI Division Five runs its main criminal operations, and which handles and controls the felon and money thief, Wanta.

DOCUMENTS PROVE ROUTINE COLLABORATION BETWEEN C.I.A. AND ORGANISED CRIME
Documents obtained by this service in the course of research into the Japanese gold buried in the Philippines (‘Yamashita’s gold’) PROVE direct ongoing intense collaboration between the Central Intelligence Agency and the Mafia. One diagram shows that there was (and remains to this day) a division of labour, with the CIA (Intelligence Power) managing, coordinating and manipulating the cooperation of the banks, Lloyds of London and other domestic and foreign institutions, while the mafia is shown as responsible for enforcement of the movement of the ‘recovered’ (i.e., re-stolen) gold to designated refineries and recipients.

There is no question but that this cooperative model applies across the board, not just in the context of moving gold. In other words, the US Intelligence Power works hand-in-glove with organised crime, the capital of which is Chicago. We are now in a position to PROVE this with documents and will do so in due course.

Which means that, supping with the Devil, the Intelligence Power is irreparably criminalised; and since it has long since usurped the Executive Branch (and the other two branches of the Federal Government, more or less), the consequence is that the United States has a criminal government, is driven by organised criminal priorities (Chicago), and is therefore a menace to civilisation.

Needless to say, this state of affairs could not be more perfect from the perspective of the criminal intelligence organisations serving foreign powers bent on the destruction of the United States, of which the ‘Black’ pan-German DVD, and its nefarious French counterparts, are these days by far the most insidious. Nor can ANY reliance be placed upon Chinese undertakings any longer, as we are led to believe that recent developments demonstrate that, while currently sweet-talking the British Monarchical Power, Chinese intelligence elements are simltaneously doing ‘deals’ with Bush Sr.

Any party stupid enough to believe that ‘deals’ can be done with the head of the serpent is in very urgent need of brain surgery. George Bush Sr. and his filthy apparat double-cross EVERYBODY. It is a complete waste of time seeking accommodating with this serpent, who, we are being told by transatlantic phone, should be shot dead on sight immediately, as he is determined, like Sampson, to ensure the ruination of the entire US and global financial economies if he can’t get his way.

EXPOSURES FORCING AMERICANS TO RECOGNISE THE PERILS OF C.I.A. CRIMINALITY
The forces of law and order, and of the Rule of Law and the Constitution, have woken up to this catastrophe so late in the day that they are engaged in a terrible struggle to decapitate the serpent before it destroys the United States and the Rest of the World as it persists in seeking to retain the upper hand. As we have repeatedly seen, crushing the head of the serpent is no easy task – not least because the serpent has beguiled gullible, naïve and ill-informed foreigners, including some ancient European powers which spawned the serpent in the first place (Britain, France, Germany).

The good news, as we have often pointed out, is that because the serpent’s arrogance was such that it never anticipated the remotest possibility of real resistance to the outpouring of its sewage, it has been caught off-balance – and has never recovered from the shock of being faced down. Recall the scripture that we have often cited in the past [John, Chapter 18, verses 1-6]:

‘When Jesus had spoken these words, he went forth with his disciples over the brook Cedron, where was a garden, into the which he entered, and his disciples.

And Judas, which betrayed him, knew the place: for Jesus ofttimes resorted thither with his disciples.

Judas then, having received a band of men and officers from the chief priests and Pharisees, cometh thither with lanterns and torches and weapons.

Jesus, therefore, knowing all things that should come upon him, went forth, and said unto them, Whom seek ye?

They answered him, Jesus of Nazareth. Jesus saith unto them, I am he. And Judas also, which betrayed him, stood with them.

As soon then as he had said unto them I am he, they went backward, and fell to the ground’.

This is what happens when you stand up to these people on the basis of solid faith. They cannot believe that anyone could have the temerity to stand in their way.

MEANWHILE THE SINISTER ‘OFFICE OF FINANCIAL RESEARCH’ IS STILL IN THE WORKS
As discussed in the report of 27th April, the ‘Restoring American Financial Stability Act of 2010’, introduced by Josef Stalin’s grandson (Senator Christopher Dodd) in the US Senate under the geomasonic number S. 3217 (which, according to the esoteric Babylonian numerological drivel and gobbldegook to which these serpents are bound, devolves to their ‘magic’ number 13 (3+2+1+7 = 13)), provides for the establishment of the sinister intelligence unit called the ‘Office of Financial Research’ within the US Treasury – to which all key financial powers will in practice be delegated, enabling the Treasury to continue sponsoring Fraudulent Finance operations beneath the radar with selected corrupt counterparties, with no checks and balances whatsoever.

This all-powerful intelligence unit will be equipped with powers to destroy any entity, whether overtly operating in the financial sector or not, and whether based domestically or abroad, on an arbitrary basis, the blanket cover being that the targeted entity will be deemed to be an actual or prospective threat to the security of the United States (meaning Fraudulent Finance).

POWERS TO TAKE DOWN ANY ENTITY ANYWHERE IN THE WORLD
Since US corporations and financial enterprises, handling dollars, litter the whole world, what this means in practice is that the decadent US dollar will be propped up by this ‘hidden’ arbitrary power buried inside the Treasury. Any corporation handling US dollars could be targeted. As the Office of Financial Research will have unlimited arbitrary powers (more of which may be buried within the pages of the colossal draft Senate Bill that have not been published), it will certainly be equipped with all means necessary to destabilise and destroy entities that it considers to be a threat to the security of the United States – which, in translation, means: threatens the open-ended perpetration with the US Treasury’s connivance, of Fraudulent Finance operations, including securitisation and the proliferation of derivatives ‘products’ based on NOTHING. This explains why Paul Volcker has sacrificed his reputation for integrity, as exposed above.

The US Treasury will therefore be able, with no checks and balances, to implement by stealth an arbitrary pan-German-style ‘coup d’état by installments’ (5).

On 7th May, The Wall Street Journal reported that, following pressure from the Deputy Treasury Secretary, Neal Wolin, and the Chairman of the Federal Reserve Board, Dr Ben Bernanke, an amendment or provision sponsored by Senator Bernie Sanders which would have exposed certain US Federal Reserve decision-making to Congressional auditors, and which would therefore have largely repealed a 32-year-old law shielding Federal Reserve monetary policy from Congressional auditors, was watered down. Dr Bernanke wrote to the Senate Banking Committee Chairman, Mr Dodd, stating that the Sanders measure would ‘seriously threaten monetary policy independence, increase inflation fears and market interest rates, and damage economic stability and job creation’.

This is the standard Fed response to any attempt to prise open its secrecy culture – which masks its illicit financial transactions, creative accounting, operations with corrupted foreign central banks via the Federal Reserve Inter Bank Settlement Fund, and secret deals with the Treasury.

DESPERATE E.U. MEASURE TO ‘SAVE THE (PAN-GERMAN) EURO’
INCOMPATIBLE WITH SAVING THE FAILING SATRAP E.U. ‘MEMBER STATES’
Before we learned that $1.0 trillion had been stolen from the Gold Badge Paymaster as described above, the following ‘straight’ analysis of the European ‘bailout’ operation had been prepared for this report. We leave this text intact, but you should bear in mind the further, sinister dimension elaborated above, when considering what follows. If you read this carefully, you will see that none of this is actually inconsistent with what is reported higher up this analysis. All that was agreed was an intention to ‘create’ a bail-out fund, begging the question: how would this be financed. Mention of the International Monetary Fund is also consistent, as the Fund suddenly expanded one of its facilities from $50 Billion to $500 billion, as we reported earlier, in April, almost certainly covering the placement of a counterparty $500 billion in IMF accounts ‘lifted’ from the Settlements funds.

On the European stage, 16 ‘Member States’ of the European Union Collective ended a 14-hour overnight session at the European Commission (a criminal enterprise: see our report dated 2nd May 2010) in Brussels by ‘agreeing’ to ‘create’ a fund worth some 750 billion Euros ($962 billion), incorporating backing from the International Monetary Fund, to the satrap ‘Member States’ facing financial instability, while the European Central Bank tore up its rulebook, by stating that it will buy up official and private sector debt.

Chancellor Angela Merkel of Germany, the former Secretary of the Agitation and Propaganda Department of the Young Communists at Marx-Lenin University, led the chorus, backed by little José Manuel Barroso, President of the European Commission, in proclaiming that this outcome confirmed that ‘we will do ANYTHING IT TAKES to support the Euro’.

OPEN-ENDED E.U. LIABILITY POTENTIALLY IMPOSED
UPON BRITISH TAXPAYERS EVEN THOUGH BRITAIN IS BUST
Now the Brown Government hastened to ‘ratify’ the Lisbon Treaty, which provides that decisions of this nature are taken by ‘Qualified Majority’, meaning that no satrap ‘Member State’ can veto such decisions of the Collective. Which in turn means that Britain, the Government of which is financially strapped as never before in its history thanks to the permissive cack-handed mismanagement of Gordon Brown, who clings to office in Downing Street, will be called upon to help finance bail-outs for ‘Member States’ which discover that they cannot survive if bound to the Collective Currency régime, which is ‘irrevocable’ under the 1992 Maastricht Treaty – that is to say, they are stuck with the wrong rate of exchange until the end of the solar system.

Therefore, on top of the financial burdens that will have to be borne by the British taxpayer due to Brown’s irresponsible stewardship of the financial economy for generations to come, money will have to be conjured up out of nowhere to help bail out ‘Member States’ the economies of which are being systematically destroyed by their Governments’ brainwashed idolatry of membership of the EU Collective (EUdolatry).

Taken to its logical conclusion, this means that the British Government (when one exists) attaches greater importance at all times to not offending the EU sacred cow, than it does to the welfare of the people of Great Britain. In other words, the interests of the British people are being sacrificed on the altar of the corrupt god of the pan-Germans; while the dense political UK Establishment and the brainwashed Whitehall bureaucracy, wedded to EU membership because they lack the smarts to distinguish between ‘cooperation’ and collectivisation, persist with their sterile internationalist agenda contrary to the wishes or interests of the British people.

OUTGOING LABOUR GOVERNMENT CORRECTLY REFUSED TO GO ALONG
To give the outgoing Labour Government its due, Aleister Darling, the former Chancellor of the Exchequer, refused to go along with any pledge to make available a huge sum of money for the so-called EU bail-out plan. This was perfectly correct, as the Chancellor, like all his colleagues, was denuded of all powers and was merely in situ pending a political resolution. But Europeans, led by the French, not understanding this, or not wanting to bother to try to understand the true situation, responded with an outpouring of vituperative hatred along the lines of ‘when you’re in trouble, don’t come begging to us. Rely on God instead’. Lovely people these EU ‘colleagues!

A piece of work by the name of Jean-Pierre Jouyet, Chairman of the French Financial Services Authority, said: ‘The English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven will help you. If you don’t want to show solidarity to the Eurozone, then let’s see what happens to the United Kingdom’.

OUTCOME OF THE BRITISH GENERAL ELECTION: TEMPORARY CHECK MATE
It is hard to imagine a recipe more likely to morph into a pretext for the wholesale overthrow of the complacent and self-satisfied British political and bureaucratic Establishment. We have obtained a glimpse of the instability to come following the inconclusive outcome of the General Election held on 6th May 2010, following years of Brown’s financial mismanagement and parliamentary sleaze.

The Conservatives could have won the election with an overall majority had they not long since decided to pretend that the issue of Britain’s hugely expensive and sterile relationship with the European Union Collective, involving the illegal remittance of Value Added Tax receipts to the European Commission, a criminal enterprise given that its accounts have been explicitly NOT approved by the Luxembourg-based Court of Auditors for the past 14 years [report of 2nd May 2010], is a non-issue for public consumption and electoral purposes.

Calculations based on votes cast prepared by the former MEP for South-East England, Ashley Mote, have revealed as follows:

• The Conservatives could have had a comfortable working majority if they had made an unequivocal commitment to a referendum on British membership of the EU.

• The UKIP (United Kingdom Independence Party) vote, favouring a much harsher policy towards Britain’s sterile EU participation, would have collapsed and, while not every one of the 25 seats listed below might have been delivered to the ‘Conservatives’, they would have emerged with a working majority of about 40.

In the following table of constituences where the ‘Conservatives’ came second, the first number shown represents the winner’s majority, and the second number shown represents the UKIP vote:

Bolton West 92 901
Derby North 613 829
Derbyshire North East 2445 2636
Dorset Mid 269 2109
Dudley North 649 3267
Great Grimsby 714 2043
Hampstead and Kilburn 42 408
Hull North 641 1358
Middlesbrough South 1677 1881
Morley and Outwood 1101 1506
Newcastle-Under-Lyme 1552 3491
Norwich South 310 1145
Oldham East 103 1720
Plymouth Moor 1588 3188
Rochdale 889 1999
Sheffield Central 165 652
Solihull 175 1200
Somerset and Frome 1817 1932
Southampton and Itchen 192 1928
St Austell and Newquay 1312 1757
St Ives South 1719 2560
Swansea West 504 716
Walsall North 990 1737
Walsall South 800 1711
Wirral South 531 1274

Additionally, the Conservatives should have won Wells, which was lost to the Liberal Democrats with a majority of 800. But the UKIP vote was 1711; so including the promise of a referendum on Britain’s continued sterile membership of the EU could have secured this seat as well.

The Guardian reported on 8th May 2010 that ‘UKIP’s bid to beat the Speaker’ (who is traditionally unopposed by the main parties) in Buckingham, ended in third place. Lessons for the Conservative right, there, perhaps, if they think they can win by tacking to the extremes’.

But the data displayed above reveal that this assessment is the very reverse of the truth. If the ‘Conservatives’ had accommodated the known preferences of adherents of the United Kingdom Independence Party, they would have achieved a comfortable working majority and would not have found themselves on the edge of a deep abyss, as was the case as this report closed.

GORDON BROWN RESIGNS: CAMERON GOES TO THE PALACE
After days of horse-trading, it transpired that the Labour Party could not reach agreement with the Liberal Democrats. Faced with this situation, Mr Gordon Brown revised his intended resignation scenario this evening (11th May) and resigned immediately. As this update is being added, David Cameron has entered Buckingham Palace and is seeing Her Majesty The Queen who is appointing him Prime Minister. At the time of writing, no details of the composition of the new Government are forthcoming. For numerous observers, this is an unexpected development, after many days during which the impression had been formed that the British political impasse resembled ‘check mate’.

• The reasoin for the ‘unexpected development’ is alluded to in the Update above.

WELCOMING CAMERON, OBAMA PRAISES
THE ‘SPECIAL RELATIONSHIP’ HE TRASHED EARLIER
As is well known, President Obama and some of his associates have gone out of their way to trash and ridicule the so-called ‘Special Relationship’, which is a myth desigend to bamboozle the Brits into believing that the United States is the United Kingdom’s most reliable ally: whereas the reality, as is being stripped down to bare metal ‘as we speak’, that the United States remains in thrall to the criminalised Intelligence Power which is controlled and corrupted by the decades-old pan-German penetration alluded to in these reports.

Therefore, the news that President Obama called David Cameron as soon as he stepped into Downing Street to congratulate him on becoming Prime Minister and to pour praise over the so-called ‘Special Relationship’ went down like a thousand lead balloons (as opposed to points of light) in certain London quarters. What this man says usually diverges from what he does. But what this does again illustrate is the brazen gall that these controlled people have when they contradict themselves, on the assumpting that everybody has forgotten what they said earlier.

• It’s called ‘dialectical doublemindedness’. Or Leninist ‘contradictions’.

Notes and References:

••••••••••••••••••••••••••••••••••
(1): From our report dated 27th April 2010 [Archive]:

THE NSA/CIA/USAF HANDLER OF WANTA’S PROMOTER
As these exposures have unfolded, this Editor has been viciously attacked from time to time by a notorious controlled US fabricator and peddler of gross lies on behalf of Wanta, styling himself as an ‘intelligence expert’, named Thomas Heneghan. We have reported separately that Heneghan was authorised, by Wanta, according to documents we hold, to open one or more bank accounts for Marvelous Investments, a vehicle reportedly used inter alia for the financing of Al-Qaeda.

Thomas Heneghan’s disinformation handler is NSA/CIA/USAF Lieutenant General Otis C. Johnson. Concerning this proven criminalist operative (Johnson), The SEC News Digest dated 21st May 1986 reported [page 1] as follows:

Complaint Filed against Otis C. Johnson: The Los Angeles Regional Office [of the SEC] filed a complaint on May 6 in the US District Court for the District of Colorado against Otis C. Johnson seeking a permanent injunction and other equitable relief for violations of the antifraud provisions of the Securities Exchange Act of 1934. The complaint in question alleges that Johnson defrauded N.D. Resources, Inc. (NDR) and its public shareholders. Specifically, the complaint alleges that Johnson provided NDR with a false geological report concerning certain mining claims and, after NDR had entered into a joint venture with an accomplice of Johnson in order to develop the claims, conspired to provide positive drilling reports to NDR when, in fact, no drilling had been done. The complaint further alleges that Johnson sold approximately 240,353 shares of NDR common stock while the stock price was inflated as a result of press releases issued by NDR concerning the drilling reports. [SEC v. Otis C. Johnson, DCO, Civil Action NO 86-945 (LR-11105)].

The SEC News Digest dated 10th July 1989 reported [page 1] as follows:

Otis C. Johnson enjoined: The Los Angeles Regional Office announced that on June 22 Judge Lewis T. Babcock, US District Court for the District of Colorado, signed an Order of Permanent Injunction and Other Equitable Relief against Otis C. Johnson. The Order enjoins Johnson from future violations of the antifraud provisions of the Securities Exchange Act of 1934. The Order directs Otis C. Johnson to disgorge his profits from sales of N.D. Resources, Inc. (NDR), which disgorgement is waived based upon the truth, accuracy and completeness of Johnson’s sworn representations concerning his present inability to pay disgorgement. Johnson consented to the Order without admitting or denying the allegations of wrongdoing in the Complaint.

The Complaint alleges that Johnson defrauded NDR and its public shareholders by, among other things, providing NDR with a false geological report concerning certain mining claims and further conspiring to provide positive drilling reports to the company when, in fact, no drilling had been done, and by selling approximately 240,353 shares of the company’s stock while the stock price was inflated as a result of press releases concerning the drilling reports. [SEC v. Otis C. Johnson, DCO, Civil Action No. 87-B-1693 (LR-12149)].

The SEC News Digest dated 24th August 1992 reported [page 4] as follows:

Otis Johnson III Pleads Guilty: The Commission and Michael J. Norton, US Attorney for the District of Colorado, announced that on July 20, 1992, Otis C. Johnson III (Johnson) of Denver, Colorado, pleaded guilty to two criminal informations. The first such information, filed May 20, 1992, charged violation of 18 U.S.C. § 371, conspiracy to commit mail fraud and securities fraud in the purchase and sale of the securities of Corporate Quest, Inc. (Corporate Quest). The second information, filed July 20, 1992, charged violation of 18 U.S.C. § 371, conspiracy to commit mail fraud, wire fraud, and interstate transportation of stolen property, in the purchase and sale of the securities of United Financial Operations (United Financial).

Johnson admitted in his plea agreement that in 1987 and 1988 [that] he participated in schemes to manipulate and conduct fraudulent transactions in the securities of United Financial and Corporate Quest. Johnson also admitted that he and co-conspirators conducted prearranged trades through controlled and nominee accounts and paid for the trades in Corporate Quest’s securities with worthless checks totaling approximately $313,000. As a result of the co-conspirators’ activities, four brokerage firms lost approximately $262,000.

Johnson is scheduled to be sentenced on September 21, 1992 at 9:00 a.m. [U.S. v. Otis C. Johnson III, Criminal Action No. 92-CR-181, U.S.D.C. Colo. (LR-13345)].

• NSA/CIA/USAF Lieutenant General Otis C. Johnson III did NOT do jail time.

• The penalty for wire fraud in the United States is TWENTY YEARS PER COUNT.

••••••••••••••••••••••••••••••••••
(2): We reproduce herewith again, for convenience AND EMPHASIS, the entire text revealing the Halliburton scamming operations published in our report dated 2nd May 2010, taken originally from our report dated 26th May 2008 [Archive]:

EXPOSURE OF HALLIBURTON’S SCAMMING OPERATIONS: 26 MAY 2008
The following description of the pit of corrupt degradation known as Halliburton is excerpted from our report dated 28th May 2008 [ARCHIVE]. It reflects the detailed inside knowledge of a fearless and serious-minded whistleblower. [Note: The narrative as partially reproduced here starts ‘out of context’. However you can pick up such context as is necessary to be in a position to comprehend the cess-pit of degradation that is being exposed, as you read into the excerpt]:

THE HALLIBURTON DRUG THUG AND THE STOLEN FEDERAL SALARIES SCAM
A former top CIA aide to Tenet and 30-year CIA veteran now reveals the criminal background of ‘HallCIA’, the thug who yanked the officer’s phone from the wall, ransacked the CIA operative’s office, had the officer incarcerated in Halliburton’s own cell in the basement of CIA headquarters and on a separate occasion punched holes in the officer’s office wall, displayed episodes of extreme violence and was observed by many to be high on drugs. He was also a murderer….

This was the criminal whom Cheney asserted to be a friend who could never be arrested. This description leads into a summary of another scam, whereby multiple salaries are paid into corrupt Halliburton employees’ secret Swiss bank accounts:

‘HallCIA’ and the Head Programmer were moved back to Halliburton’s main office, just like the priests sexually abusing children are moved to a different parish.

They were never prosecuted…

[Dressed in FBI uniform provided by Halliburton, the operative is engaged in an FBI action to arrest this Halliburton thug], He was arrested for FIRST DEGREE MURDER OF AN FBI OFFICER. I had proof that the FBI officer that he had murdered was a bona fide one with proper papers and vetting in the FBI’s personnel archives. The FBI had fingerprint and DNA evidence to prove that the Halliburton programmer was the murderer.

They even had a trial and a conviction of the man for that murder.

He had feigned a fainting episode right before the reading of the sentence and been taken to a hospital. He then assaulted the hospital guard inside his room and left him unconscious in his bed. Then he impersonated the guard using his uniform. He later went to a lawyer who put in a motion to declare the trial a mistrial on the grounds of a technicality: the defendant had not been present at the reading of the sentence. The fact that the criminal had committed a second nearly deadly assault the same day in apparent good health, was omitted from that motion.

The FBI-clandestine CIA raid that I organized was on the private flat of ‘HallCIA’. It was not at his house where he lived with a prostitute whom he pimped, according to a CIA file. He did not keep his contraband items there as there were too many unsavory people coming through his house.

WHAT THE FBI FOUND IN THE CIA-HALLIBURTON DRUG THUG’S APARTMENT
At the flat the FBI confiscated drugs in pusher quantities and also illegal weapons, including some unregistered machine guns, explosives and hand-held artillery that could blow big holes through a wall for illegal entry. He had one bedroom devoted just to weapons, with shelves devoted to about half-kilo packages of drugs. It was equipped with a padlock. CIA top secret documents were strewn all over the bed, dresser and floor of the master bedroom.

It looked like a hurricane had hit the bedroom even before we arrived. The padlock was broken on the door to the weapons and drug room and the door was open when we arrived. But all the drugs were still neatly on the shelves. The flat may have been raided by Russian intelligence before we arrived, leaving the CIA documents behind as cover-up after copying them.

The FBI collected fingerprints and I collected the CIA documents. After the raid I returned to the FBI station and filled in the appropriate forms to write a FBI report up on the raid. As I was doing so, the two FBI officers who I had spoken with two days before walked by the desk I was using. They did a double take seeing me in the FBI uniform…. I told them that I had just tested FBI vetting and security procedures for a report I was writing for the CIA. I also explained to them that I had just successfully impersonated an FBI official to the extent of going on a raid with them, and not one had yet asked for my name or run it through a background check. I showed them the CIA top-secret documents the raid had netted and they laughed at the ruse I had played on the FBI.

They were not laughing, however, when I explained how I had gotten that FBI uniform and signed the papers. They checked on their computers; I was not yet registered on the records of the FBI.

I asked them to arrest all of the appropriate Halliburton people involved in that scam. They called the Director of the FBI and I also spoke to him. He refused to authorize the arrests.

He told me: ‘Write up your report and let me read it first’. I offered to drive over immediately with the evidence. He refused to make any time to see me. I immediately faxed him a short report and enough evidence to warrant the arrests. Nothing happened.

MULTIPLE SALARIES PAID INTO SWISS BANK ACCOUNTS
But the next day when the local FBI checked my name again, they called me to let me know that I was officially part of the FBI now per their computer. I promptly sent in a full report to the FBI, the CIA, and the Pentagon on this scam to sign up Halliburton employees as their officers and have the US taxpayer pay their salaries. Just like Halliburton over-billed, some Halliburton employees were
collecting THREE US Government salaries; one from the Pentagon, one from the FBI, and one from the CIA. I wrote in my report that I had signed up in all three places via Halliburton’s scam to see how long it would be before those scams were stopped.

I put on the three forms, separate Swiss bank accounts. The point was to use the accounts as evidence of Halliburton corruption when those cases came to trial; I have not touched a cent of that money. The Directors of the FBI, the CIA, and the Chief of the JCS that I sent those reports to did not implement my list of recommendations; one of them was to shut down all of those public salaries going to Halliburton employees. At least, they had not been implemented as of about Summer 2004 when I last checked those accounts.

Another recommendation was to make sure that everyone in those agencies is properly vetted and drug tested as per that agency’s usual security measures. Because I was concerned that my clear recommendations would not be acted upon, I despatched copies of those letters, the forms that I had signed, and the numbers of the Swiss bank accounts to the GAO. In my covering letter to the GAO I told them that I had given them the authority to check the balances in those accounts by written authorization to the Swiss bank.

I had hoped that seeing US taxpayer’s money streaming into those accounts would give them an incentive to prosecute those cases promptly. Since the banks were not in the United States, I doubt that coercion applied to the bankers will erase those accounts, but I could be wrong. Since I had long been a covert CIA person, those communications with officials and the banks were under aliases. The GAO however has all of the proper information to check those accounts again and to prosecute these cases. I myself no longer remember any of the aliases and account numbers, so I
couldn’t access that money even if I wanted to. I never intended to use that money at all, so I did not record those aliases and numbers into my personal effects.

In 2004 when I checked the accounts, I did so from within the CIA by pulling up the report that I had written to the DCI. I have no way to check those accounts now so I do not know whether that scam, as evidenced by a single person’s accounts, has been stopped. When I checked in 2004, two years had already passed. The US taxpayer had paid [as follows]: via the CIA, about $80,000.00 each year, for a total of about $160,000.00; via the FBI, about $50,000.00 each year, for a total of $100,000.00; and via the Pentagon, about $80,000.00 each year for a total of about $160,000.00, or roughly $420,000.00 total into those three Swiss accounts…

I also checked on whether Halliburton continued paying those employees if it signed them up for a Federal salary. The answer was no, except for rare exceptions. ‘HallCIA’ had continued receiving a Halliburton salary while getting one at the CIA, but the Head Programmer had not.

When I checked in 2004 the number of Halliburton employees getting a CIA salary was over 200, the number receiving an FBI salary was over 400, and the number of Halliburton employees receiving a Pentagon salary, was over 300. Suppose that the total for that is about 1,000 salaries each at, say, $50,000 a year. That would mean that the US taxpayer was being bilked (by Cheney) of $50 million a year of fraudulent salaries. Over the eight years that this Cheney has been in the Vice President’s office, that could easily add up to $400 million in savings for Halliburton in not having had to pay salaries. No wonder it was so easy to get that FBI uniform and salary sent out to me by talking to a Halliburton VP. Other Halliburton programmers had complained to me that they took a ‘cut in pay’ to work at the CIA location. They said that ‘the takings are good’, and ‘Halliburton fences the items for us in a 50-50 split’.

HALLIBURTON’S THIEVES INSIDE THE CIA AND THE INEVITABLE CONSEQUENCES
When I heard that Halliburton’s people were stealing from inside the halls of the CIA, loud alarm
bells went off inside my head. The items inside the CIA which were easiest to carry out were of course its documents.

And any computer that one stole inside the CIA was likely to have top-secret information on it, in spades. It was a counterintelligence person’s nightmare, and now it was mine. The fact that the Head of the Halliburton section offices at the CIA had just sold the CIA’s communication satellite encryption security codes to Moscow burned in my mind.

The Russians had paid him $20,000 for that betrayal.

He had no clue as to their black market value. It made me worry that the Russians and the Chinese could buy every secret inside the CIA for a price that they could afford. More than one Halliburton person inside the CIA had admitted to me that they were stealing to make up for their cut in pay. Halliburton had switched them to Federal salaries, making the CIA pick up the tab [see above].

One Halliburton person at the CIA had told me that they were all stealing enough to make up for that cut in pay. [They were ONLY in it for the money: taking their cue from Cheney and Bush: Ed].

Therefore, the first thing I did was to find out what those 40-odd people used to earn at Halliburton. I had the CIA’s accounting office print out for me what the CIA was now paying them. My mouth then dropped open in shock. Each one of them would have to steal over $10,000 worth of CIA secrets or goods a year to break even. In some cases the cut in pay was much higher. One man took a $50,000 a year cut in pay when he switched to the Federal salary. At the average $23,000 cut in pay, the 40 workers together had sustained a $920,000 cut in pay. I had been told that Halliburton was fencing the goods in a 50%-50% split. So, about 2 million dollars’ worth of good at black market prices would be stolen from the CIA, if they actually made up their lost salaries stealing.

[There followed a summary of the notorious Aldrich Ames, Clyde Conrad, Larry Wu-Tai Chin, John Anthony Walker, and Robert Hanssen espionage cases, omitted here]

On February 22, 1994, Ames and his wife were formally charged by the United States Department of Justice with spying for the Soviet Union and Russia. Mr Ames could have faced the death penalty, since his betrayal had resulted in CIA ‘assets’ being killed. However, he received a sentence of life imprisonment, and his wife received only a five-year prison sentence for her conspiracy to commit espionage and tax evasion as part of a plea bargain by Ames.

TENET AND CHENEY REFUSED TO ADDRESS THESE ISSUES
I walked down to the office a very high-ranking CIA analyst, about third in the hierarchy in that department, a man I trusted. People advance inside the CIA by one of two means normally, being very good at what they do or being very good at lying to please those above them. The heads of each section were often in the latter category, as a general rule. I asked him how many secrets the Russians could buy for $2 million a year, if they had 40 moles able to walk the halls of the CIA. In the posing of the question I explained that the hypothetical moles would be assumed to be ‘efficient’ criminals without formal espionage training. I asked him what effect that would have on national security. He asked me if this was a conversational gambit or a request for a formal report to answer my question. I thought about it a moment and then said the latter.

That meant that I had to go get a signature on a form. By submitting to Mr Tenet new requests for 10 separate reports on a wide variety of important topics, I quickly brought the analyst the signed form that he needed. He whistled in surprise when he reviewed the assignment given to him there in black and white. Then he asked me ‘Is this about the Privatized Employees’ invasion of the CIA?’ I said yes. He said: ‘I have been urging Tenet to let us study that risk for months. No go. How did you get this when I couldn’t?’

I explained to him my method and also that the Head of the Halliburton group had just sold the CIA’s Communication Satellite Encryption Security Codes to the Russians.

He hadn’t heard that [because] Tenet had put a lid on it even within the CIA. I promised to show him the proof. I came back and gave him and a few of his top staff an hour long briefing on what I had learned. One man was actually in tears as I finished.

Another said: ‘This marks the end of US national security’. Another said, ‘No. US honor died already and no memo was sent announcing its funeral’.

I asked them what information they needed to make a proper assessment. They said that it would help them if I could find out how much the 40 people were actually making off their thefts inside the CIA, and a list of what they were stealing. I came back the next day with the list of how much each one had been paid by Halliburton in ‘bonuses’, which was the code word for fenced items, and what each ‘bonus’ was for. That list of what each bonus was for was like what the programmers really did in morphing an appliance rack into a bread slice rack. It was not a specifically accurate description but it related to the item in a fairly straightforward way.

CHENEY WAS INFORMED IN A RECORDED PHONE CALL
I showed the list to Tenet and tried to brief him on how dangerous it was.

He did not want to hear. Tenet had not followed my recommendations, which would have stopped the thefts. And he did not want further reasons why he should do so… I called Cheney and begged him to send a memo over to Halliburton setting up a program to [address these extremely serious issues]. I even faxed him a memo so that all he had to do was sign to get that to happen. He did not deny that Halliburton was selling items stolen from the CIA. He did not deny that he had the power to impose the necessary changes at Halliburton by sending the memo. He did not deny that he had the power to order Tenet to institute effective measures to stem the tide of the thefts.

As the phone recording of that call shows, I kept briefing him on the problem while he kept saying that he refused to discuss the matter with me.

I sent a copy of that call over to the GAO because it showed that I had in fact managed to inform Vice President Cheney of the seriousness of the thefts. In that call [to Cheney] I cited that the likely consequences were the shredding of US national security and the wholly unnecessary deaths of its covert personnel. I also set up a surveillance operation behind Cheney’s and Tenet’s back to actually inspect each item that Halliburton fenced from the CIA.

COUNTERINTELLIGENCE OPERATION AGAINST TENET AND CHENEY BACKFIRES
That is, I had an ex-CIA operative with counter-intelligence experience whom I trusted, apply to Halliburton. I instructed him to offer to ‘help them fence their CIA goods and get higher prices for them’. Call him Alan for short. A Halliburton VP, the same one who sent me the FBI uniform, sent me a ‘thank you’ letter for referring Alan to them. He no doubt believed that I was corrupt and making a kickback. It was to my advantage to foster that image of myself without it actually being true. In my position it was best if everything I did could be interpreted as corrupt at the same time that I was collecting the evidence for prosecution.

That operative, Alan, ended up terribly overworked in no time. The analysts and I had been off by a factor of THREE in the amount that was routinely being stolen by Halliburton from the CIA.

We did not find that out until the Halliburton people realized that they could get more money by making sure that Alan sold the goods for them. That meant Alan had to sell them at on average much higher than twice what they could get for them themselves, even by selling directly to the Russians. That was not as hard as it would have been with regular stolen goods; the Halliburton people did not know their true worth on the black market. Alan could make a better profit selling a document to a rich government such as France, which would have been very bad in the hands of the poorer Chinese or Russians. Before that, Halliburton had sold mainly to the Russians. [Editor: Further allegation that Halliburton has sold CIA secrets to the Russians].

The French were very helpful to us in keeping many things out of the hands of the Russians. They had wised up quickly as to our problem and how to assist us. The United Kingdom was less helpful because they could get that same information by merely filing a request for it.

The French were not as tight into the CIA, though they were still US allies. We needed top dollar for the stolen items because we had to make up for the fact that we were not selling off all of the items due to their national security risk. We were hiding the fact from Halliburton’s management that we were really sending the items back to the CIA.

OVER 50% OF HALLIBURTON SALES BREACHED NATIONAL SECURITY
We could not send computers back, as it was impossible to ensure that the Russians etc. had not altered them in the meantime. Those had to be scrubbed clean using a special erasing procedure. But it was possible to send back documents. We had initially thought that it would be only 10% of the items that had to be vetoed on national security grounds. But as we got a better understanding of what was being sold via Halliburton, that figure went up to a little over 50%

[Editor: More damning allegations against Halliburton as a continuing threat to US national security. George W. Bush authorised this grotesque corruption and treachery via his Executive Orders].

[The high-level operative and source for this information left the CIA for Canada in 2002].

Subsequently, operatives working inside the CIA to address this catastrophic situation] demanded that Tenet should lock the unvetted people out of the building.

In the process of showing how serious the security violations were, they revealed the oversight (or counterintelligence) operation against Tenet and Cheney themselves. That ended up revealing that they were recovering about 50% of the items and about 30% of their black market worth. Tenet informed Cheney of that fact, and Cheney ordered an end to the oversight.

I later sent copies of the relevant telephone calls revealing all this to the GAO. The Russians and Mossad had a complete set of White House calls, including of [calls concerning what was] for sale. The CIA also had a fairly complete set. When I was forced back into the CIA in October 2003 from Canada with threats and worse, I heard about the troubles that the oversight people had suffered over the intervening 16 months. They had been unable to perform oversight for four months.

During that time Halliburton had fired their Private Eyes, the ex-CIA operatives that they had there. Instead, Halliburton had hired its own experts on Black Market Intelligence Pricing and had sold all of the stolen items without regard to US national security. I then despatched over to the GAO about a dozen phone conversations by Halliburton’s high officials demonstrating their reckless disregard for national security and the lives of covert operatives. [Therefore, this information is all available for the Congressional Committee to access immediately: Editor].

But it now gets much, much worse….

THEFTS OF CIA COMPUTERS LEADING TO AN UNIMAGINABLE CATASTROPHE
The next part of the narrative briefing leads into a description of the most ghastly consequences, for which Vice President Richard B. Cheney is clearly indicated by the narrative to be responsible, given his Luciferian greed for ‘profit’ which of course is on its own an impeachable offence:

It was only after a [hitherto unreported: Ed.] colossal national security catastrophe that the [CIA operatives who had carried on trying to get results] managed to get Tenet to insist that Halliburton rehire their ex-CIA ‘Private Eyes’. The oversight people briefed me on [the catastrophe] as soon as I returned. The first day I came back to the CIA’s Headquarters, they kept me up all night telling me about it. I cried many times that night for my country and for the harm that had been done to her. I cried for the people who had died so brutally and unnecessarily.

Many, many more intelligence professionals lost their lives as a consequence of Cheney’s selling secrets than lost their lives because of the traitorous behaviour of Aldrich Ames. Ames is serving a life sentence for what he did. Cheney’s Halliburton people were still working at the CIA and were still stealing there because of Cheney’s protection of them. They were still walking inside the halls of the CIA every day and going into its offices to ‘have a chat’.

It was such an egregious violation of national security that some oversight members quit the CIA. Others said to me: ‘Why should we look like criminals who are enabling this theft’? ‘We are not making a cent off it… Yet we have been threatened by Tenet that we will be put in prison because we know of the thefts and hence must be guilty of them… We are being treated like criminals because we are trying to stop the most dangerous of these sales’.

[Editor: Gross abuse by Tenet of the Misprision of Felony Statute].

I later collected a memo from Cheney to Tenet which stated that the oversight of the sales by the CIA was cutting into profits and had to be stopped. It recommended imprisoning all of those in the CIA suspected of being a bottleneck in [the raking in of] US corporate profits. Tenet prohibited the oversight within a week of receiving that memo. The GAO has a copy of the memo and also of the memo that Tenet sent out threatening imprisonment if anyone was discovered to have decreased US corporate profits. They also have the later memorandum that Mr Tenet sent, which threatened imprisonment if anyone knew about stolen goods and did not report it to the designated official.

Those who had reported thefts to that official had been fired soon afterwards.

Thieves do not report stolen goods; people with integrity do, until it is clear that it is pointless and dangerous to do so. I also sent the GAO the document suggesting this ruse of a new designated official as a way to stop the oversight. That designated official never prosecuted a case of theft against a Halliburton person. He came from Halliburton! He had in fact been recommended for the job by ‘HallCIA’ to Cheney, who then recommended him for the job. I sent over to the GAO a tape of the phone conversation between ‘HallCIA’ and Cheney. On it. ‘HallCIA’ says that the man that he is recommending will stop the losses of revenues ‘from our CIA sales’.

HALLIBURTON CROOK BRAGGED ABOUT LUCRATIVE SALE TO THE RUSSIANS
Later he bragged about one of his sales to Russia of ‘one of our CIA products’, and says, ‘too bad we can’t make more of them’. It was clear that he was referring to the stolen goods that Halliburton stole from the CIA, not products that Halliburton made and sold to the CIA. The designated official was not vetted by the CIA. He was stealing from the CIA while working out of the Halliburton offices. I sent to the GAO a signed statement from a CIA security guard who caught him carrying a computer of the CIA’s out of the front door. That man could have employed the back door out of their offices manned only by Halliburton’s guards. He was so used to stealing from the CIA and getting away with it that he forgot, and used the front door.

That is what he told the guard: ‘I forgot… Give me a hand and we’ll take it out the back door’. The Halliburton guards did just that. They helped the Halliburton thieves load CIA computers into their private cars. I sent the GAO several CIA security camera clips of that happening.

The CIA had massive amounts of security camera data showing that [activity]. The CIA security people were afraid to report the thefts that they saw, because they did not want to lose their jobs without it even cleaning up the problem. By the time I returned to the CIA, 16 people had lost their jobs due to reporting thefts to the designated official that Tenet’s memo had directed them to use. No one at the CIA knew about the item sold during the blackout that caused the national security catastrophe, until after the catastrophe happened. [Details of this national security catastrophe, unfortunately containing graphic and disturbing language, now follow].

THE CATASTROPHE, COURTESY OF THE CORRUPTION OF TENET, CHENEY AND BUSH
The first sign of that Catastrophe [with a capital C: Ed] was a dead body lying on a sidewalk in a foreign city. The body had been the teenage daughter of a CIA officer. The body was no longer recognizable, even by her father. The body was identified definitively by dental records. Her face had been peeled off in small strips. The forensic evidence revealed that she was still able to bleed and struggle during most of the time that was done to her.

The next sign of the Catastrophe was another unrecognizable body. This time, of a 6-year-old boy of a US diplomat. The injuries were the same. The CIA concluded that the murderer was the same man. The next sign was an 11-year-old child of a US school teacher in Africa. She was divorced and her husband had once worked for the US State Department. Perhaps he had been CIA under diplomatic cover, but the CIA refused to comment.

I saw the photographs of the dead bodies. They were too horrible for words. Could it be that I was recalled to the CIA against my will in order to get my special operational skills to track down the villain? The day I got back to the CIA, the first thing Tenet did was hand me these pictures and ask me to find The Killer. He had given me the pictures of 23 victims who had all died the same way. All
of them were children of people who could have been in the CIA. About 22 of them did have a
known parent or guardian in the CIA.

DEATHS DUE TO THE STEALING OF A CIA COMPUTER
What he failed to tell me, or give me the photos for, for was the over 100 adults that had been killed using the exact same modus operandi. One of them was in the CIA’s morgue at that moment [Editor: did you know that the CIA has its own morgue? I didn’t]. ..The item that was stolen from the CIA that was responsible for those deaths was a computer. That computer had not gone through the hands of one of the ex-CIA operatives. Its contents not been thoroughly erased.

It took work and time to do that; the disc had to be erased and written over 50 times. Halliburton’s bosses did not care about national security or the risk to the CIA’s covert operatives, if they were exposed… I was able to prove that it was the same computer. It still had the CIA’s personnel files on it and many of the victims had been selectively deleted from where they should have been in that list. When I then compared that file to the CIA’s current personnel file, the comparison program marked those deletions in red. The selective deletions showed that the owner of the computer was getting tipped off by someone high up in the investigation of the deaths inside the CIA.

The US Administration managed to suppress the news of these murders almost completely, after its ties to the computer started showing up in the CIA’s internal investigations. No-one in the media had connected the isolated cases across the globe [another gross failure by the incompetent and controlled Fourth Estate, which has intelligence cadres sitting in its press rooms: Ed.].

The motivation of the deletions was obviously to try to cover-up the guilt of the owner’s role in those murders. There were about 86 deletions in a file of thousands of names. Each deletion was a victim, as already known by the CIA up to a certain date about two weeks earlier.

ENTER THE ‘DARK LORDS’: DIRECTLY CONNECTED TO BUSH
No victim that the CIA had on its investigation list by that point had failed to be deleted on that stolen computer. The odds of that happening by chance alone was practically speaking, exactly zero. In addition, I later obtained evidence that firmly tied the secondary ownership of that same computer to those who committed the actual tortures and murders. There was many more than one murderer. What they had in common was membership in a kind of paramilitary, quasi-religious cult. The members of that paramilitary cult had a group commitment to kill a person once a month. The Mafia usually only requires its members to kill once to get into it. This satanic group required their members to kill once a month in order to remain in good standing in it.

[Note: The Editor of this service received, between February and mid-May 2008, a large number of evil, unsolicited phone calls from a contrived, deep demonic ‘voice’ referencing ‘the Great Dark Lords’. This harassment [referenced in our report dated 27th April 2010, as the stupid harassment resumed: we have identified the operative concerned as Wanta] continued until shortly after we reported the matter to the head of the US Anti-Terrorism Task Force and also, separately, to law enforcement personnel in contact with the Editor’s own contacts, whereupon they ceased. We have voice recordings of almost all these calls.

Considered in the context of what follows, it would appear that these calls represented threats: one of these was quite specific, along the lines of ‘we have the means of dealing with you’. Given the appearance of the ‘Dark Lords’ in this ‘Cheney’ context, it is likely that the Unterreichsführer’s apparat will indeed, as we suspected, have been responsible for these multiple telephone threats and harassment calls.

It comes as NO SURPRISE whatsoever to the Editor that the veteran CIA investigator came across this ‘Black’ dimension. The harassment calls to the Editor were also interspersed with threatening emails. The content of one of these, containing a very grave threat, was conveyed immediately as referenced above, with the consequence that (at the date of this posting) the harassment ceased].

A Manual on ‘How to Please the Lords of Darkness’ had been published by a member of that cult. It recommended that the best way to do it was to torture people to death using the modus operandi that I have indicated above. That Manual had been distributed by the owner of the aforementioned computer with that CIA Personnel file suggested as the targets. The man who bought the computer was indeed a paramilitary type, with a large collection of weapons, many of them unregistered… He was identified as a fundraiser for Bush.

The literature of the group showed upside-down crosses as an emblem [satanic symbolism: Ed.]. The reason that others in the CIA had not tracked him down and had failed to pin the instigating of the murders on him, was political. Like ‘HallCIA’, and the Head Programmer from our earlier cases, he was well protected. It was not that CIA investigators had not suspected him. It was that they did not know what to do with their suspicions and even their evidence after they got it.

I was the booby prize winner: the fool at the CIA who had before been willing to buck the silence at great risk to myself. There was precedence for giving me a job like this. At one point, a CIA officer had sold a list of MI6 officers to the KGB during the Cold War. The KBG had started killing them off. I was given the job to stop them from continuing. And they had stopped: whether or not it was due to my efforts, was a matter of hot debate within the CIA. But some people credited me with having had some influence in the matter.

The individual who bought that computer was apparently a friend of Cheney and Bush; they had invited him to the White House. They had been present when he picked it out among a number of other CIA stolen computers, paying cash, which Cheney had put in his pocket.

‘CHENEY & BUSH TOOK THE MONEY FOR THE COMPUTERS USED FOR THE MURDERS’
I found the White House Security camera footage of that event. The GAO has a copy of it. The payment is shown on the video. The man took hundred dollar bill(s) out of his pocket and handed that to Bush. Bush hesitated and then handed the money to Cheney. The footage of that computer being carried out of the room by a guard follows about 20 minutes later. The room had about 20 computers from the CIA in it, to start with. [They were all neatly laid out, as at a corporate sales demonstration, for buyers to examine, test, select, and pay for: only cash was accepted: Ed.].

The security camera tape shows Bush Jr. and Mr Cheney repeatedly coming into the room with a prospective buyer and taking cash in varying amounts. That continued until all the computers were gone. Some prospective buyers remained in the room for over an hour exploring the contents of the stolen CIA computers, before deciding on a purchase. I checked with the CIA and found that no CIA vetting of those buyers had occurred. Most did not have security clearances. Some of them had prior felony convictions and had been allowed into the White House ‘on orders from above’. The sale was ‘by invitation only’, with Bush and Cheney controlling the invitation list.

The earlier tape shows Cheney directing Halliburton employees in where to set the computers up. Much care and time was taken to plug them in and connect them to monitors, mice, keyboards, and to arrange the room nicely with a mouse pad under each mouse. The GAO has a copy of that tape too. The manual on how to torture people (in the manner described) and the file of CIA Personnel was sent overseas and domestically through the mail whenever a buyer purchased a snuff film from that man. His poorly kept records showed that he had mailed out at least 2,000 such CDs with the Manual on ‘How to please the Lords of Darkness’.

His records omitted the addresses that he sent them to in about 50% of the cases where he marked payment received and product and ‘How-to’ sent. Thirty of the murders had been solved already by local foreign authorities by the time I was given the case. Of those, the ‘How-to’ CD was found in 28 of them. Presumably it had been overlooked in the other two, or the wrong party may have been charged, or the ‘How-to’ thrown out by the ‘Black’ criminal operative.

Unfortunately, the murders had continued after those arrests.

BUSH AND CHENEY RESPONSIBLE FOR 168 CIA DEATHS, COVERED UP (HITHERTO)
At least 168 CIA officers and their family members were brutally tortured to death as a direct result of this cynical corruption run by Bush and Cheney. The CIA [systematically] covered it all up and pretended that it never happened on Tenet’s orders. The notorious traitor Aldrich Ames had not
sent out instructions to torture and kill anyone. He had sold ONE copy of a list of CIA operatives
in one country to one buyer. He is languishing in prison for life.

[The perpetrator identified here] sent out over 2,000 copies of all the names and addresses of the CIA officers and their families in every country. He had sent them out with hate propaganda and incited others to kill them. He had sent this [Nazi filth] to people who were known murderers who had a commitment to kill again. And he had sent it out as a challenge: are you man enough to kill a CIA person? His group offered ‘Advanced Membership Privileges’ to anyone who succeeded.

It was very curious that someone close and high up in the investigations at the CIA was tipping him off, since he was targeting CIA officers. I was able to supply the GAO with the evidence as to who was doing it. This person was getting calls and faxes directly from Cheney and Tenet. Tenet’s faxes included the names of the victims to date. He was being assisted in his cover-up at a very high US level. I investigated whether the Russians or another foreign group had put him up to this, as his methods seemed too effective to be that of an individual’ alone.

HALLIBURTON LINKED TO THESE MURDERS OF CIA PERSONNEL
I found no such evidence of a foreign government or its operatives being behind it [but] I found many ties to US underworld organizations. Most of the ties, however, were directly to Halliburton. According to Halliburton’s records which I sent the GAO, [the perpetrator of these incitements to murder CIA personnel] had headed one of their subsidiaries before it went bankrupt.

CIA INVESTIGATOR TOLD TO ‘BACK OFF, OR ELSE’
When I looked up that old corporation I did not find a building on the aerial to correspond to the address. That subsidiary had been selling intelligence and paramilitary gear. It had specialized in recruiting mercenaries worldwide. It made me wonder if those killing the CIA had done so, as a kind of recruitment test; those getting away with it and being able to prove it, getting the job. I started looking into whether he was on Halliburton’s books as CEO of a new subsidiary. Just as soon as I started that investigation, Cheney called and told me to ‘back off or else’.

I asked him what the ‘else’ referred to, because it certainly sounded like a death threat to me. He hung up on me. Then he called me back about 10 minutes later and offered to set up a face-to-face meeting with that computer owner. I agreed and asked at once for a time and a place. He hung up: apparently his offer was just to threaten me that he would [impose] that man on me. I sent copies of those calls to the GAO also. They should still have them. The Halliburton mercenary recruiter [who incited the murders] was never prosecuted. Cheney and Bush would not allow it.

BIO-FEEDBACK EQUIPMENT STOLEN BY HALLIBURTON FOR THE RUSSIANS
In about May 2002, a Halliburton person at the CIA had stolen an expensive piece of equipment.
It was an ultra-sophisticated CIA bio-feedback machine that was worth over $5 million.

It had required hundreds of millions of dollars of R & D money for the CIA to develop it. It was custom-made only for the CIA. Its only purpose was to train operatives how to pass a lie detector test. It was only used when they were to be sent on extremely dangerous missions to places like Russia. And it was only used in very critical missions.

There was a high risk that Russian intelligence would figure out how to overcome that training, if they interrogated about five operatives who had used it. That is, if they realised that those 5 had been trained in that fashion. Thus it was TOP SECRET and its manual was also top secret at the time. Loss of that machine and its Manual was the same as potentially losing every secret a given CIA official had in his or her mind when they were in Russia. The head of the CIA station in Russia had been trained on that machine for obvious reasons.

The effect of the training was to give the user control over their automatic nervous system. That meant that they could stop their fear, their sweating, their heart rate increase etc. in response to an interrogation. In addition to those obvious advantages in an interrogation situation, it had a big psychological benefit. It gave those who had used it confidence that they could pass a lie detector test. Thus, they were as if ‘bullet proofed’ against threats and lie detector tests.

Although the signal-to-noise ratio relating to information obtained under torture is so low as to be unusable, that is not true in a ‘friendly’ interrogation. The British had admirably demonstrated the effectiveness of ‘friendly interrogations’ in WWII. An operative who had fear or fear of a lie detector test was more likely to ‘tell all’ in a ‘friendly interrogation’ because of underlying anxiety. I did not find out about that theft until the next day. I then learned from a Halliburton person that it had been stolen and was en route to the Russian Embassy to be sold to them. I was absolutely horrified by the national security implications of that. I rushed up to Tenet’s office to tell him. He already knew.

Cheney had called him and asked him what it was and what it was worth to the Russians. This was after I had set up the system for things to go through Alan so that the oversight committee could intervene to stop the worst violations of national security.

But the thief was a personal friend of Cheney’s and had taken the item straight to the White House to ask him if he wanted to buy it. Cheney had paid him $50,000 for it, he informed me. The copy of the telephone call that I sent to the GAO between Tenet and Cheney showed that Mr Cheney had considered keeping it, so that he could pass lie detector tests.

CHENEY THREATENS TO KILL THE VETERAN CIA OPERATIVE PERSONALLY
They had discussed it and Tenet had promised to find out more about it, how it worked, and how much it was ‘worth outside of the CIA’. He had called him back and told him a figure of $1.2 million. Cheney asked him to find out what was his risk of needing the machine himself. Tenet called him back and said that CIA analysts judged his risk to be about 4%. In front of Tenet with his phone on
speaker, I called Cheney and demanded its return.

He laughed and said, ‘What’s the big deal? It can only be used 5 times total and it has already been used once. We should sell it while it still has value before those 5 times are up’. He had absolutely no understanding of intelligence matters. It was not 5 uses of the machine: it was 5 times a CIA person trained using that machine was interrogated by the Russians. It could be 20 years’ worth of use to prevent the loss of security codes, national secrets, and how a CIA station was operating.

I explained it all quite carefully as Cheney is not a technically minded person. I even asked him questions to make certain that he had understood what I said correctly [Editor: This interesting comment suggests that Cheney is actually not that bright, which may also be judged to be the case, given his behaviour over the Settlements and his repeated thefts of gigantic sums of money. It may be that he progressed to these much larger thefts after getting away with multiple lesser thefts of which examples have been given in this narrative]. Cheney then said: ‘Well, what difference does it make since there are remote viewers like you in Russia who can steal the secrets anyway?’

I then explained that remote viewers were not 100% accurate and that intelligence agencies always had to verify what they said using hard data. Lie detector tests are not 100% accurate either, but they add some signal-to-noise benefit. Mr Cheney replied that torture was generally worthless in getting information [Editor: Amazing! Was not Cheney reported to be adamant that torture MUST be used to extract intelligence from terrorists and from prisoners in US hell holes like Gantanamo and Abu Ghraib?]. That was true. But it was still wrong to sell the Russians the CIA’s very best and most advanced equipment to deter loss of information under interrogation. ‘Friendly interrogations’ do yield valid intelligence.

When I pointed that out, Cheney said that the machine had already been sold to the Russians and that I was too late. I told him that I would figure out some way of prosecuting him, if he ever did that again. He laughed and said, ‘You haven’t got a chance’. I told him that I would try.

Cheney then said: ‘I will kill you myself, if you ever get close to succeeding’.

As we have said before, Cheney is what Malachi Martin would have called ‘perfectly possessed’.

RUSSIA TREATED AS ‘THE ENEMY’ THROUGHOUT: RAPPROCHEMENT IS THEREFORE FALSE
You will have noticed that during the timeframe of this narrative [2002-2005-ish], Russia is considered in this dialogue to be an enemy, just as was the case during the overt Cold War.

This reflects the fact that the dialectical breach created by Lenin’s Revolution and its aftermath has not, in fact, been healed or discarded: exactly as the Soviet defector Anatoliy Golitsyn advised the disinterested CIA: see The Perestroika Deception by Anatoliy Golitsyn, edited by Christopher Story, available from the books [Edward Harle Limited] segment of this website.

••••••••••••••••••••••••••••••••••
(3): Reproduced from our report dated 2nd May 2010 [Archive]:

THE TEXT OF MR HENRY A. WAXMAN’S LETTER TO MR DAVID J. LESAR, C.E.O. OF HALLIBURTON CO., DATED 30TH APRIL 2010, DEMANDING ALL DOCUMENTS.

HENRY A. WAXMAN, CALIFORNIA, CHAIRMAN
JOE BARTON, TEXAS, RANKING MEMBER
COMMITTEE ON ENERGY AND COMMERCE
Congress of the United States
House of Representatives
2125 Rayburn House Office Building
Washington, DC 20515-6115

Majority: (202) 225 2927
Minority: (202) 225 3641

April 30, 2010-05-04

Mr David J. Lesar
Halliburton Co.
US Corporate Headquarters
3000 North Sam Houston Parkway East
Houston, Texas 77032

Dear Mr Lesar

According to a report in The Wall Street Journal today, one possible cause of the explosion that destroyed the Deepwater Horizon drilling rig and led to the oil spill in the Gulf of Mexico could be a problem with the cementing that was supposed to seal the well. In this procedure, cement is used to plug the well and to fill gaps between the well pipe and the hole drilled into the ocean floor in order to prevent combustible oil and gas from escaping.

Problems with the cementing process have frequently been identified as causes of oil well blowouts. The article quoted one independent expert who said: “The initial likely cause of gas coming to the surface had something to do with the cement” (1). Halliburton Co. provided cementing services for the Deepwater Horizon rig.

As part of the Committee’s investigation into the cause of the oil spill, we ask that you take three steps. First, we request that you arrange a briefing on May 5, 2010, for the Committee staff with Halliburton officials knowledgeable about Halliburton’s cementing activities at the Deepwater Horizon oil rig.

Second, we ask you to provide the Committee with all documents in Halliburton’s possession relating to (1) the explosion at the Deepwater Horizon rig; (2) the possibility or risk of an explosion or blowout at the Deepwater Horizon rig; and (3) the status, adequacy, quality, monitoring, and inspection of the cementing work relating to the Deepwater Horizon rig.

We request that you provide these documents on May 7, 2010. An attachment to this letter provides additional information on how to respond to Committee document requests.

Third, we ask that you preserve for potential future production to the Committee all documents relating to Halliburton’s operations at and involvement with the Deepwater Horizon rig.

We appreciate your assistance with the Committee’s investigation. We believe it is essential that the spill and its causes are thoroughly investigated. If you have any questions regarding this request, please contact Meredith Fuchs of the Committee staff at (202) 226-2424.

Sincerely,

[Signed]
Henry A. Waxman, Chairman

[Signed]
Bart Stupak
Chairman, Subcommittee on Oversight and Investigations

Enclosure.

cc. The Honorable Joe Barton, Ranking Member
The Honorable Michael Burgess, Ranking Member,
Subcommittee on Oversight and Investigations.

(1) Drilling Process Attracts Scrutiny in Rig Explosion, The Wall Street Journal, April 30, 2010.

••••••••••••••••••••••••••••••••••
(4): Text of the Memorial Notice for John Hemenway Jr,
reproduced from our report dated 2nd May 2010 [Archive]:

HEMENWAY: JOHN MARTIN HEMENWAY (Age 47) On April 30, 2010 of Bedford, VA. Beloved husband of 7 years to Stephanie; loving father of Andrew Branham Hemenway; devoted son of John and Betty Hemenway; beloved brother of Catherine and Edward Siewick, Jane and John Sullivan, David and Margaret Hemenway and Fielding Williams. Pre-deceased by his beloved sister Mary Joyce Hemenway Williams. Also survived by many loving nieces, nephews, relatives and friends.

Memorial Service on Tuesday, May 4, at 4:30 p.m. at Otterville United Methodist Church, Bedford, VA. In lieu of flowers memorials may be made to the John M. Hemenway Camp CHILD Scholarship for special needs children c/o Bedford Primary School, 807 College Street, Bedford, VA 24523.

••••••••••••••••••••••••••••••••••
(5): ‘Thirty Days: Hitler’s Thirty Days to Power: January 1933’, Henry Ashby Turner, Jr., Addison-Wesley Publishing Company, New York etc., 1996, ISBN 0-201-40714-0, page 164. ‘Coup d’état by installments’, precisely accurate characterization of pan-German power-grabbing methodology. Konrad Heiden, Der Fuehrer, Boston, MA, 1944, page 597.

••••••••••••••••••••••••••••••••••
THE FOLLOWING DATA HAS BEEN PUBLISHED AT THE FOOT OF MOST OF THESE REPORTS FOR THE PAST THREE YEARS++: COMPILED BY U.S. SECURITIES EXPERT MICHAEL C. COTTRELL, B.A., M.S..

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

••••••••••••••••••••••••••••••••••
NOTICES:

BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

Therefore, you should be advised that the GENUINE ORIGINAL REPORT is, by obvious definition, accessible ONLY FROM THIS WEBSITE. If you come across an article elsewhere that is attributed to the Editor of this service, you should refer to the ORIGINAL ARTICLE HERE and you should bear in mind that the illegally duplicated article may contain text that was NOT written by the Editor of this service, but which was inserted for malicious purposes by counterintelligence.

Likewise, although we haven’t yet had time to elaborate this issue, we have taken drastic steps around the world to close off the malicious piracy of our books. One technique used by several disreputable sites (in the United States, the Netherlands and Switzerland) is to copy our title(s) and (a) to display an image of the front cover WITHOUT THE ISBN DATA at the top of the cover; and (b) to DELETE THE COPYRIGHT PAGE. In so doing, the criminal pirates proclaimed that they knew perfectly well that they were/are engaged in theft and can be prosecuted for stealing copyright.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

••••••••••••••••••••••••••••••••••
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NON-U.S. INTERNET SECURITY SOLUTION CD AVAILABLE: FAR BETTER THAN NORTON ETC
It has now been established that the National Security Agency (NSA) works with/controls Microsoft, Norton, McAfee, and others, in pursuit of the Pentagon’s vast BIG BROTHER objective, directed from the ‘highest’ levels (not the levels usually referred to) which seek to have every computer in the world talk direct to the Pentagon or to NSA’s master computers.

This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

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• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

• It is suitable for PC’s but not for Mac computers. As with all such programs, the License is renewable at a modest fee annually. This is done on-line in the usual way [with the supplier direct].

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chrisstory

RECKLESS DODD SENATE BILL WILL MAKE THE CLASSIC GERMAN ‘WHEELBARROW HYPERINFLATION’ LOOK PLEASANTLY BENIGN AND ENJOYABLE BY COMPARISON

Tuesday 27 April 2010 15:00

PERVERSE DEATH-WISH DETERMINATION TO DO THE OPPOSITE OF WHAT IS REQUIRED

RESTORING AMERICA FINANCIAL STABILITY ACT [3217]: A RECIPE FOR TOTAL DISASTER

TITLE SHOULD BE: DESTROYING AMERICA FINANCIAL DICTATORSHIP AND INSTABILITY ACT

The add-ons and updates that accumulated at the top of this report have now been migrated to the foot of the report. This report as originally published on 27th April, with one Update, STARTS HERE:

• WORLD ENGULFED IN TOTAL ECONOMIC AND FINANCIAL WARFARE

• RECENT SERPENTINE SETTLEMENTS-RELATED DEVELOPMENTS

• WAVE OF ARRESTS AGAIN REPORTED IN THE UNITED STATES

• THAT BANK OF ENGLAND MEETING ON 9TH APRIL REVIEWED

• THE ARRESTS AND JAILING OF EDDIE GEORGE AND GREENSPAN

• EARLIER ABORTED PAYOUT AGAIN LINKED TO SERPENTINE SABOTAGE

• UNDECLARED ALL-OUT FINANCIAL WARFARE AGAINST THE REST OF THE WORLD

• U.S. BANKS: WE WON’T PAY WITHOUT A LEGALLY
CODIFIED GUARANTEE THAT WE CAN’T EVER GO TO THE WALL

• ‘CONTRADICTIONS OF ARRESTS’ WITH WHAT THE WHITE HOUSE
IS ACTUALLY DOING AND INTENDING

• LEGISLATING FOR THE U.S. WEIMAR REPUBLIC

• PRECARIOUS SUBSTITUTE FOR ACTUAL WORLD WAR

• OBAMA’S DECEITFUL SPEECH AT THE COOPER UNION, NEW YORK

• GROSS WHITE HOUSE MISREPRESENTATION OF WHAT THE DODD BILL WILL DELIVER

• ‘COUP D’ETAT BY INSTALLMENTS’ BY STALIN’S GRANDSON

• OBAMA’S OUTRIGHT LIES TO THE ASSEMBLED BANKERS

• THE SINISTER OFFICE OF FINANCIAL RESEARCH INSIDE THE U.S. TREASURY:
LOCUS OF THE INTENDED WORLD FINANCIAL DICTATORSHIP

• WHO’LL BE IN CHARGE OF THE OFFICE OF FINANCIAL RESEARCH?
WHY, STALIN’S GRANDSON, OF COURSE

• MAIN PROVISIONS OF THIS INIQUITOUS DRAFT LEGISLATION

• POWERS OF THE OFFICE OF FINANCIAL RESEARCH

• DUPLICITOUS LEGISLATION INSTITUTIONALISES RACKETEERING
• SEE IMPORTANT UPDATE INSERTED 28TH APRIL UNDER THIS SEGMENT

• THE REAL PURPOSE: TO PREVENT THE DOLLAR REFUNDING FROM LONDON

• GENERAL POWERS TO BE TRANSFERRED TO THE U.S. TREASURY

• THE GENERAL POWERS TRANSFER MODEL:
HITLER’S PUTSCH IN 1933 AND THE EUROPEAN UNION COLLECTIVE

• HOW ARE THE MIGHTY IN THE PROCESS OF FALLING

• ‘GREEK CONTAGION’ CONFIRMS THE LONG-TERM
EMBEDDED STUPIDITY OF THE PAN-GERMAN DUMKOPFS

• THE WANTA MONEY-STEALING ROUTE RESURRECTED

• SUMMARY OF THE EDITOR’S WANTA INITIATIVE

• WANTA-GOODWIN FRAUD IN THE INDUCEMENT AGAINST THE EDITOR UNDER DURESS

• FEATURES OF THE FRAUD IN THE INDUCEMENT SCAM
AGAINST THE EDITOR PERPETRATED BY WANTA AND GOODWIN

• WANTA NOW IDENTIFED AS THE ‘GREAT DARK LORDS’ TERRORIST

• THE FAILING ‘COUP D’ETAT BY INSTALLMENTS’

• THE NSA/CIA/USAF HANDLER OF WANTA’S PROMOTER

• UPDATE: As of 8:00 hrs UK time on Wednesday 28th April 2010, the number of links to our report entitled ‘All UK legislation passed since 2000 is null and void’ had DOUBLED overnight to 22,000. For earlier background, see foot of the article itself [Archive: 10th April 2010].

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• ADVERTISEMENT: Details of the INTERNET SECURITY SOLUTION software offered by this service in conjunction with a donation can be accessed immediately: See the Home Page World Reports Limited serials catalogue by clicking World Reports Limited and scrolling to foot of page. Scroll to the foot of THIS page to read our extended Ad. for the INTERNET SECURITY SOLUTION.

• By Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

• AS PREVIOUSLY ANNOUNCED, OUR LANDLINES REMAIN CLOSED BECAUSE OF UNLAWFUL HARASSMENT. WE CAN BE CONTACTED VIA EMAIL OR THE WEBSITE ‘CONTACT US’ FACILITY.

NEW REPORT STARTS HERE:
WORLD ENGULFED IN TOTAL ECONOMIC AND FINANCIAL WARFARE
A state of TOTAL, MULTI-LAYERED, ECONOMIC AND FINANCIAL WARFARE has now developed, characterised by what Lenin and Gorbachëv refer to as ‘contradictions’ – so that what is about to be summarised in outline may well appear to represent irreconcilable developments and conflicts. Being multi-layered, it has become harder than ever to see clearly through the fog of deception, diversion, disinformation and play-acting.

Therefore it is appropriate at the outset to remind you of the cast-iron rule that these Dark Forces operate EXCLUSIVELY on the basis of ‘contradictions’, duplicity, duplication and the dialectic. If you ever lose sight of this CENTRAL REALITY, you will revert to the state of mental confusion that prevailed before you started kindly reading these reports!

In accordance with the above behaviour, the Dark Actors Playing Games are able to say one thing on Monday while fully cognisant of the fact that what they are saying masks the precise opposite of what is intended. By their works, not their words, ye shall know them.

RECENT SERPENTINE SETTLEMENTS-RELATED DEVELOPMENTS
First, though, we have to report certain developments associated with the Settlements theme, which continues notwithstanding what will be revealed below.

To deal with these matters, first, therefore:

• We reported recently that President Obama has inserted himself into the Settlements Release Process by demanding 60% of the proceeds for the quote ‘United States’ unquote (which of course covers the kleptocracy with no checks and balances) rather than 40% (apparently ‘agreed’ earlier).

In this context, we stated that the only number in our vocabulary giving perspective to this was that we had always been informed that the tax payable given on-the-books transactions for the Dollar Refunding purposes (generating taxation accruals from the private sector into the US Treasury, for placement ONTO the Treasury’s books for continuous offsetting against the Federal Government’s colossal and doubled ‘background debt’), would be 35%.

We therefore presumed that this new talk of 60% rather than 40% represented bargaining in the background over the tax level payable. However the more sinister interpretation must be that the President of the United States is demanding 60% of the total Settlements for unspecified purposes (i.e. further illicit self-enrichment and Fraudulent Finance and trading operations).

• It has now been CONFIRMED to us (as of 11:10 hrs UK time on 25th April) that the following US criminalist parties have DEMANDED to be paid $1.3 trillion from the Settlement Funds:

George H. W. Bush Sr.
George Soros
Carlyle Group [of which President Sarkozy’s half-brother Olivier is an executive].

Although we accurately trailered the CIA’s intention to steal $1.3 trillion (reporting it in fact as a fait accompli) many weeks ago [see Archive], further information about this intended OFFICIAL THEFT was first made available to us on 30th March 2010 and has now been CONFIRMED, as indicated above. In other words, the top criminals and their lackeys are being paid off.

WAVE OF ARRESTS AGAIN REPORTED IN THE UNITED STATES
Meanwhile, has been renewed outbreak of arrests of bankers arising from their refusal to carry out payment instructions. Specifically the following arrests were reported to us after finalisation of the preceding analysis in this series:

• Over the ten days to Sunday 25th April approximately THIRTY people were arrested in the United States (no further details). It is understood that there was ‘heavy activity’ over the weekend.

• On Monday 19th April, a number of bank officials at Bank of America, Charlotte, the main base of the CIA’s primary institution were said to have been arrested.

• On Tuesday 20th April a number of arrests of officials at the Federal Reserve Bank of Dallas were reported to have been arrested.

• On Wednesday 21st April, four officials at the Federal Reserve Bank of Richmond were reported to have been arrested. This, of course, is highly significant, in view of the Federal Reserve Bank of Richmond’s Motion to Dismiss on 19th October 2007, in the United States Court for the Eastern District of Virginia, Alexandria, a hearing attended by your correspondent.

• During the IMF Spring Meetings weekend, the entire area around Crystal City was deprived of cell phone and Internet connections for about an hour, during a period when Obama was in North Carolina. The Editor normally stays in the Crystal City area when visiting Washington, DC.

• HOWEVER, we understand that very determined efforts, evident from the roster of arrests, are being made to procure completion of certain Settlements payouts this week. No such ‘indications’ can ever be relied upon, though, as the fog of deception serves the purposes of obfuscation.

THAT BANK OF ENGLAND MEETING ON 9TH APRIL REVIEWED
According to further information received, the Settlements payments were in full swing as of 21st April, there being less than one page of transfer codes remaining before completion.

In the preceding report, we indicated that, at the special meeting convened at the extraordinary hour of 10.00 pm on 9th April 2010, at which all outstanding matters, including the issue of the $6.2 trillion loan money and the restoration of The Queen’s stolen gold, were reported to us to have been ‘resolved’, the funds were duly sent over to the United States to facilitate the payouts.

However with the benefit of ‘further and better particulars’, we are now advised that what actually happened was as follows:

• The meeting ‘resolved’ the outstanding issues as stated above.

• The meeting agreed to or indicated that it would send over the funds.

• Common sense evidently prevailed at the last moment, when it was finally understood, at long last, that THE U.S. AUTHORITIES CANNOT EVER BE TRUSTED, so the funds were NOT SENT OVER. In this context, it is possible (although we don’t know) that the $6.2 trillion may now be lodged outside the United States (hence Citibank’s rapid downsizing).

It is possible that the servants of the British Monarchical Power belatedly saw to it that previous lackadaisical ‘mistakes’ by the Bank of England were not to be repeated. After all, EVERYONE CONCERNED has now, surely, had AMPLE TIME, to grasp and to understand that the criminalist cadres controlling the United States are all DESPERATE MEN and have no other modus operandi but to continue with their scamming and orchestrated thievery and duplicity, with not the slightest intention of ‘going straight’, whatever they may deceitfully profess.

CAUTION; As we stated in Note (9) of the preceding report, such information is extremely hard to come by, and it can only, therefore, be acquired by observation, deduction and, if we are lucky, as a consequence of leaks. However this is the state of affairs ‘to the best of our knowledge and belief’.

THE ARRESTS AND JAILING OF EDDIE GEORGE AND GREENSPAN
It will be recalled that in the summer of 2007, we published, as FACT, that the former Governor of the Bank of England, Lord ‘Eddie’ George, had been arrested and jailed (in July 2007). We did not receive a libel writ from Lord George’s solicitors. Lord George died in April 2009. The reason that we didn’t receive a libel writ was that the information was of course accurate.

What we didn’t know until the first quarter of this year was WHY Lord George had been arrested. And the answer to that is that he was instrumental, in collaboration with Greenspan, in the stealing and alienation the Queen’s gold, effectively swapping it for worthless securities/pieces of paper. We suspected that this was the case, but we only obtained confirmation recently.

In June 2007, we also reported that Dr Alan Greenspan was likewise arrested and jailed. (He is believed to have been arrested several times). We duly reported this information on this website and in International Currency Review. Again, we did not receive a libel writ from Dr Greenspan’s lawyers, because the information was accurate. And one reason for his arrest was that Greenspan had assisted George with the heist of The Queen’s gold, which we alone reported in May 2007.

Our knowledge of this unbelievable abomination arose purely because on 29th-30th March 2007, an unannounced banking ‘blackout’ occurred in the United Kingdom.

• When such abrupt banking ‘blackouts’ occur, someone is usually up to no good.

The Editor became aware of this because he walked into a T-Mobile store on Victoria Street, Central London, to top up his mobile, using a Visa Card, which had good credit, but suddenly wouldn’t approved a payment of a mere £20.00.

On making further enquiries he discovered that this problem had arisen everywhere. Gradually, information about the stealing and diversion of gold belonging to the British Monarchical Power accumulated, so we published this in outline in May 2007 – in response to which a US operative stated: ‘I find that hard to believe’. We therefore told the operative to cease all contact, since if what we say is ‘hard to believe’, by definition there’s no point in having any further conversations.

Dr Alan Greenspan, George H. W. Bush Sr.’s criminal financial ‘technician’, has, we now learn, long been indicted by a Grand Jury, and is therefore a candidate for being ‘taken down’, irrespective of his age (which we suppose might let him off the hook). However mass Holocaust murderers in their eighties have been arrested, put on trial and jailed: so there’s no reason why ANY MERCY should be meted out to this criminal, who has destroyed countless lives and thrown the United States into a terminal tailspin (see below), from which it may only narrowly escape.

EARLIER ABORTED PAYOUT AGAIN LINKED TO SERPENTINE SABOTAGE
Following the further sabotage of the Settlements process on Wednesday 21st April, a renewed outbreak of snake-like behaviour among certain operatives was detected. All of a sudden, the various ‘concrete’ confirmations and undertakings that had been forthcoming two weeks earlier, were reversed, and these people started reverting to earlier delusions and misrepresentations.

Furthermore, there were renewed indications that the felon Lee/Leo Wanta was to be used as a cover to divert key funds, as planned: so, for that reason, we reveal hitherto unpublished detail of Fraud in the Inducement with which Wanta and his CIA lawyer, Steven Goodwin, were involved with respect to the Editor’s stolen $35,000 loan, below – together with further information reconfirming that this man is a recalcitrant, dangerous financial terrorist, assisted by known criminal operatives. We place this information at the end of this report.

UNDECLARED ALL-OUT FINANCIAL WARFARE AGAINST THE REST OF THE WORLD
What has become clearer is that the Obama Administration of the Crooked Continuum is intent on conducting all-out economic and financial warfare against the Rest of the World, while purporting to be collaborating with certain elements of it (especially the Chinese, who appear to have ‘lost their bottle’ and to be scared to utilise the immense powers that they deploy as Lien holders) in order to ‘divide and rule’ – the White House’s main tactical objective having been to try to separate out and isolate the British Monarchical Power and also those components of MI-6 and certain other British intelligence structures who may not be engaged in double-crossing and betraying The Queen out of perverse preference for the fashionable idolatry of German ‘cooperation’, you understand).

U.S. BANKS: WE WON’T PAY WITHOUT A LEGALLY
CODIFIED GUARANTEE THAT WE CAN’T EVER GO TO THE WALL
Within this strategy is a perverse renewed and ongoing White House intent to circumnavigate the Basel List payment instructions and to sidestep Basel-II. The pretext for all this is that the US banks in question are now maintaining that they will not disgorge any of the stolen, diverted and illegally acquired monies, including the monies they have been making from Settlement funds via further trading, without their continued existence being GUARANTEED by the Federal Government, with the necessary provisions codified in law so that they cannot go bankrupt. It will be recalled that Bank of America refused to disgorge on the grounds that it would collapse if it did.

‘CONTRADICTIONS’ OF THE ARRESTS WITH WHAT
THE WHITE HOUSE IS ACTUALLY DOING AND INTENDING
Yet, notwithstanding all of the above, the arrests identified to us on the basis of reports, have been taking place precisely because these US criminal enterprises have been refusing to disgorge the funds. That is just one dimension of the current ‘contradictions’ referenced at the beginning of this report. (Four US institutions reportedly control $7.0 trillion of ‘real money’ – plus 50% of Credit Card business, and 75% of US ‘real money’ liquidity. The institutions concerned are Citibank, the Bank of America, Wachovia, Wells Fargo: Goldman Sachs ought perhaps to be included),

LEGISLATING FOR THE U.S. WEIMAR REPUBLIC
So, on the one hand, the immense pressure being exerted against financial institutions, with no leniency being extended towards complicit Federal Reserve Banks either, continues; while on the other hand – as explained below – legislative measures are being assembled to procure a state of affairs which would get the banks off the hook while at the same time enabling the organised criminal operatives inside the structures:

• To perpetuate the racketeering financial carousel on such a scale as to guarantee that the United States WILL experience a Wiemar-style hyperinflation and currency collapse.

• To perform the US Dollar Refunding operation in a corrupt and wholly counterproductive manner from within the US Treasury, in precise opposition to the necessity for the Refunding to take place SOUNDLY in the private (NOT the Government) sector, so that the resulting accruals are taxed and placed onto the US Treasury’s books – thereby counteracting and diminishing the irresponsibly incurred, wholly unnecessary official debt that has been accumulated since Obama came to power (doubling in two years the aggregate of debt reported by the Office of Management and Budget).

• INSTEAD OF WHICH, in order to RETAIN TOTAL CONTROL and to protect themselves from the consequences of their past serial illegal financial manipulations involving securitisation, which is illegal, and all the other unfettered breaches of the Rule of Law over which they have presided, they are content for ‘background’ debt to be accumulated on a Weimar scale with no thought for tomorrow. So long as they’re off the hook (as they foolishly imagine), that’s all that matters.

• Except that the course they intend will destroy ALL VALUE, will degrade the US dollar, will plunge the world economy into the Grandfather of all depressions, will precipitate uncontrolled physical strife and warfare, will result in the breakup of all multinational institutions, will despatch numerous already bankrupt institutions to the wall, will destroy personal and corporate savings, will decimate whole swathes of the industial and agricultural economy everywhere, and will condemn the world to the possibility that modern civilisation will actually collapse as power supplies will be disrupted and electronic communications and payments systems will cease to function. That’s just a brief summary of HOW EVIL THESE FINANCIAL TERRORISTS ARE, how STUPID AND ARROGANT THEY ARE, and why, for as long as they remain in control, THE WORLD WILL CONTINUE TO DESCEND INTO THIS MAELSTROM OF ALL-OUT ECONOMIC AND FINANCIAL DECADENCE.

• And this is ALL a DIRECT consequence of the takeover of the Central Intelligence Agency by the pan-German cadre, de facto heirs of the Nazi Abwehr (military intelligence), aided and abetted by their Zionazi allies, and their visceral hatred of the ‘Main Enemy’.

You can dismiss this out of hand if you prefer, but you will find to your distress that what we have been saying on this score is has been correct all along.

PRECARIOUS SUBSTITUTE FOR ACTUAL WORLD WAR
THIS ALL-OUT ECONOMIC WARFARE is supposed to substitute for actual violence and military hostilities; but the way things are going, that substitution will collapse.

We turn now to the mechanism whereby the criminalist serpents holding supreme power in the United States intend, as they see it, to ‘slide out from under’ so as to retain total control for themselves and their cronies – ensuring a catastrophic Weimar-style outcome in the process.

OBAMA’S DECEITFUL SPEECH AT THE COOPER UNION, NEW YORK
Speaking at the Cooper Union, New York City on 22nd April, Mr Barack Obama continued with his sudden campaign to ‘control derivatives’ – buttressed by a separate sound-bite observation, for public consumption, that he would veto any financial reform Bill sent to him for signature that does not ‘control derivatives’. In that case, manifestly, the President must veto the convoluted (draft) Bill emerging thanks to Stalin’s grandson, Senator Christopher Dodd, from the Senate Committee on Banking, Housing, and Urban Affairs, labelled as a (draft) Bill: ‘To promote the financial stability of the United States by improving the accountability and transparency of the financial system, to end ‘too big to fail’, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes’.

• This Bill now has a number: 3217, and the title: Restoring America Financial Stability Act.

• The title of this iniquitous draft legislation should read:
Destroying America Financial Dictatorship and Instability Act 2010.

GROSS WHITE HOUSE MISREPRESENTATION OF WHAT THE DODD BILL WILL DELIVER
This draft Bill, as published, runs to 1,336 pages; but according to the respected former Federal Government economist, Lawrence Lindsey, speaking on CNBC between 8:01 hrs and 8:05 hours on 22nd April, the actual length of the Bill is 1407 pages – implying that there are 71 pages containing stuff of such sensitivity that US and foreign observers wont be allowed to read what they contain.
Mr Lindsey made three points, after perusing the text of this iniquitous (see below) Senate Bill:

• The Treasury and the Federal Deposit Insurance Corporation (FDIC) will gain the power to extend UNLIMITED LOAN GUARANTEES to financial institutions.

• The Federal Reserve will gain the codified power to take collateral from the banks and to lend against it (perpetually institutionalising the previously ‘short-term’ TALF arrangements).

• A ‘rainy day’ fund with loan guarantees will constitute a separate Government-administered fund, with a demanded base of $50 billion. This is identical to the ‘rainy day’ fund that the Grand Jury-indicted Greenspan exploited on an open-ended basis on behalf of the CIA/DVD Bush Crime nexus for Fraudulent Finance purposes.

‘COUP D’ETAT BY INSTALLMENTS’ BY STALIN’S GRANDSON
Mr Lindsey didn’t have time during that slot to say more, but he gave the necessary ‘heads-up’ to ensure that those not asleep on their brains would make haste to research the CONtent and the intent of this iniquitous Bill introduced by Stalin’s grandson. In two nutshells, the Dodd Bill:

• Codifies ‘Too Big To Fail’ ensuring that BANKS CAN NEVER GO BANCKRUPT, so that the corrosive Fraudulent Finance carousel racketeering activity can be continued sine die.

• Facilitates the ‘full transparency’ of the banks’ balance sheets by enabling their worthless off-balance sheet accruals to be ‘expunged from the record’ (shoved into an unaccountable black hole) with securitisation assets simply recreated so that the carousel can continue, also sine die. Essentially, the accrued off-balance sheet Fraudulent Finance disappear into a vacuum. But:

• The ‘other side of the Government’s balance sheet accrues debt on a scale with no historical precedent, guaranteeing that Weimar will be recalled as a pleasurable experience.

• As explained above, this is all being arranged amid a barrage of crass double-speak in order to sidestep the Basel List, the Basel-II requirements, the private sector Refunding Programme using the sovereign loan money provided by the British Monarchical Power, and to entice the Chinese, who appear to have lost their nerve, to continue the carousel. (Until the United States and China collapse in tandem, of course).

One can perhaps now more easily understand why President Sarkozy didn’t care if the TV cameras caught him screaming vituperative hatred at Russian President Medvedev, and calling President Obama ‘insane’. Because the covert Soviets haven’t been quite as stupid in this connection as the avaricious and corrupted French and Germans.

In the circumstances, we can now perhaps characterise President Sarkozy as having been rather polite on both occasions. For France is stuffed, like Germany, to the gills with the consequences of US Fraudulent Finance scamming transactions (think the 3,000+ Bush Crime Family-linked accounts an Paribas, and the colossal volume of worthless derivatives assets held by Deutsche Bank AG, Dresdner Bank and Commerzbank).

OBAMA’S OUTRIGHT LIES TO THE ASSEMBLED BANKERS
Mr Lawrence Lindsey’s CNBC observations preceded the address given by President Obama at the Cooper Union, in which Mr Barack Obama – the man who has allowed the entire official debt of the American Treasury incurred over the best part of a century to double in the space of just two years because he perversely refused to permit the transparent, taxable private sector Dollar Refunding Programme using the sovereign loan fund of $6.2 trillion to be implemented because control would have been partly wrested from the hands of the criminal financial enterprises and their cronies holding high office and elsewhere within the structures – made the following weasel statement, which is the precise REVERSE OF THE TRUTH:

‘It is essential that we learn the lessons from
this crisis so that we don’t doom ourselves to repeat it’.

• FACT: The draft Dodd Bill won’t just have the effect of REPEATING the crisis,
it will GUARANTEE A CRISIS 100 TIMES WORSE – AND BY DESIGN.

Now the draft Senate Bill from Dodd establishes (see below) an Office of Financial Research situated INSIDE THE TREASURY. This Office Committee will set up a DICTATORSHIP, as we will be explaining – something, obviously, that Stalin’s grandson could not possibly have any objection to.

But first, Mr Obama’ speech at the Cooper Union (part of a broader campaign by the White House to ensure support for this bad Bill – which is designed to enable the kleptocracy to enjoy unlimited, perpetuated and unquestioned freedom and power to engage in open-ended Fraudulent Finance Racketeering operations, while, in the tradition of DUPLICITOUS DOUBLE-MINDEDNESS, claiming to ensure financial sector and economic stability and no danger of repetition of the 2007-2009 crisis) – embraced several numbered points which we can refute right away:

• First, ‘we need a system [provided via the Dodd Bill] to shut these firms down’. FACT: As will be shown below, the Senate draft will hand the Office of Financial Research UNLIMITED POWERS to close down any bank or other financial (and commercial) entity AT HOME AND ABROAD handling US dollars that they consider to be a ‘threat’ ostensibly to the security of the United States, but in reality to the intended closed Fraudulent Finance carousel institutionalising criminal operations by the organized control kleptocracy. THEY WANT TO ELIMINATE THE COMPETITION.

THE SINISTER OFFICE OF FINANCIAL RESEARCH INSIDE THE U.S. TREASURY:
LOCUS OF THE INTENDED WORLD FINANCIAL DICTATORSHIP
Specifically, the authority to be given to the sinister-sounding intelligence agency to be called the Office of Financial Research, the powers of which will be comprehensive, absolute and arbitrary, will include powers to close down OFFSHORE ENTITIES. Thus ANY financial or business entity that is dealing in or handling US dollars anywhere in the world will be vulnerable to being shut down by the internal US Treasury Committee that will be making all the decisions, behind closed doors, as to which entities should be allowed to exist, and which entities should be closed down – on no basis other that a subjective determination that the entity may be a potential threat to the security of the United States (that is to say, to the closed Fraudulent Finance racketeering, trading and platform operations protected and codified in perpetuity by this iniquitous control legislation).

• A SPECIFIC EXAMPLE would be a Dollar Refunding entity operated from London: see below.

• On the face of it, this drastic, insane (as Sarkozy indicated), apparent own-goal arrangement could ensure that foreigners cease conducting transactions in US dollars altogether – thereby destroying the United States’ hegemony over energy products (denominated in US dollars), and forcing China, Russia, Britain, Japan and European countries to operate using other currencies.

But in practice, given the presence around the world of US corporations trading in US dollars, this provision codifies the power of the US dollar, while at the same time prospectively destroying the Euro, the pound and any other currencies, including the Chinese reminbi, and related structures, standing in its way. In the process, the US dollar system will become a catastrophically decadent, inflation-generating global system under the ‘corporate’ control of the rats – the continuing and successor rats within the Bush-Clinton-Cheney-DVD Box Gang and associated Fascist criminalist components of the Nazi-minded enemies of humanity.

• Secondly ‘the Bill would also enact what’s known as the Volcker Rule’… [which] ‘places some limits on the size of banks and the kinds of risks that banking institutions can take. FACT: The Volcker Rule becomes completely inconsequential in the light of Dodd.

• Thirdly ‘reform would bring a new transparency to many financial markets’. Obama said that ‘many practices were so opaque, so confusing, so complex, that people inside the [trading] firms didn’t understand them, much less those who were charged with overseeing them’ [curious, then, how the SEC joined in the Fraudulent Finance bonanza itself under Mr George W. Bush’s criminal Administration: see CMKX Complaint, 9th January 2010, et seq.: Archive].

‘They weren’t fully aware of the massive bets that were being placed. That’s what led [the CIA operative/asset – Ed.] Warren Buffett to describe derivatives that were bought and sold with little oversight as ‘financial weapons of mass destruction’ – because, as Mr Barack Obama DID NOT SAY, securitisation is illegal in the United States [see Archive].

So, greater transparency? Not at all. On the contrary, the Dodd Bill will MAXIMISE THE POTENTIAL FOR ONGOING CONFUSION, because there will in fact be no clear set of rules (AS THE 1933 AND 1934 SECURITIES ACTS WILL BE OVERRIDDEN UNDER DODD: see below). The only ‘rules’ will be those arbitrarily specified by the new Treasury-based below-the-radar intelligence organisation to be named Office of Financial Research. So, if a financial entity wants to do something, whether new’ or not, it will have to obtain this internal US Treasury Committee’s prior agreement.

And since, as we have amply shown, the US Treasury is a notoriously duplicitous and corrupt institution, engaged ‘as we speak’ in disreputable Fraudulent finance operations, can BRIBERY of officials within the Office of Financial Research be far away? Of course not.

• In the fourth place ‘this plan (Dodd) would enact the strongest consumer financial protections ever’. FACT: Once the ominous-sounding Office of Financial Research has been established and is operative inside the us Treasury, the Consumer Protection Agency (CPA) will have nothing to do. Because it will be up against an arbitrary power centre subject to no checks and balances which will make up the rules as it goes along, thereby ensuring that whatever the CPA imagines that it is supposed to be doing, could be upset and overruled at any moment. And of course the draft Dodd Senate legislation provides that none of the more drastic provisions can be repealed.

• In the fifth place ‘These Wall Street reforms will give shareholders new power in the financial system. They will get what we call a say on pay, a voice with respect to the salaries and bonuses awarded to top executives. And the SEC will have the authority to give shareholders more say in corporate elections, so that investors and pension holders have a stronger rôle in determining who manages the company in which they’ve placed their savings. FACTS: As demonstrated below, not only does the Senate draft Bill override the Securities and Exchange Act, but also NO MENTION whatsoever of what Obama talked about here is found in the published pages of the Bill.

WHO’LL BE IN CHARGE OF THE OFFICE OF FINANCIAL RESEARCH?
WHY, STALIN’S GRANDSON, OF COURSE
Now Senator Christopher Dodd is stepping down from the Legislature and is not standing for re-election. Who do you suppose will emerge as the first Secretary of the Treasury for the Office of Financial Research? Why, Senator Dodd, STALIN’S GRANDSON, himself, don’t you know. As we have repeatedly stated, pan-German and covert Soviet intelligence collaborate and share their common interests at the highest level: and Stalin’s grandson operates at the highest level.

MAIN PROVISIONS OF THIS INIQUITOUS DRAFT LEGISLATION
Pending a planned detailed analysis by this service of this iniquitous and duplicitous legislation, which (in accordance with the double-mindedness dialectical methodology routinely employed by these people, as we have seen) purports ‘to promote the financial stability of the United States by improving accountability and transparency in the financial system’ but does the exact opposite, the Bill promoted by Stalin’s grandson would procure as follows.

The Dodd (Senate) Bill, which analysts are already saying they ‘don’t understand’ and which is already the subject of confusion-mongering and obfuscation by ‘spinmeisters’:

• Will supercede the Securities Acts 1933 and 1934.

• Will, as reported above, establish an unaccountable intelligence and oppression mechanism within the US Treasury with unfettered dictatorial and arbitrary powers that can be applied without checks and balances at home and abroad, ominously called the Office of Financial Research.

• Will place the US Treasury in a position where it can do anything it likes with no checks and balances, with total impunity, so that corrupt finance will be ‘legitimised’ by the co-conspiring US Congress, institutionalising racketeering by the organised criminal cadres operating from within the US structures that have been systematically exposed since 2005-06.

POWERS OF THE OFFICE OF FINANCIAL RESEARCH
The Office of Financial Research will be empowered to:

• Declare any non-bank financial institution or entity ANYWHERE to be a threat to US security.

• Having made such an arbitrary determination without checks and balances, take steps to destroy the entity in question, DECLARING its existence and operations to be null and void.

• Decide, without accountability or regard to the Rule of Law, let alone to so-called ‘alliances’ and the despised ‘Special Relationship’, who and what is ‘an enemy of the United States’.

• Accordingly, arbitrarily target any non-bank financial entity, or ANY entity HANDLING AND TRADING IN U.S. DOLLARS, i.e. ANY FOREIGN CORPORATION, FOR ‘TAKEDOWN’ WITHOUT PRIOR NOTICE OR EXPLANATION. Any entity using US dollars would be vulnerable to such unilateral arbitrary action.

• Put another way and by extension, ‘take down’ any non-United States-based institution, broker-dealer or other entity to which the Office of Financial Research takes objection – which is to say, ANY entity, at home or abroad, that is arbitrarily considered by the Office of Financial Research, with the full authority of the US Secretary of the Treasury, to represent A THREAT TO THEIR ONGOING PERMISSIVE FRAUDULENT FINANCE RACKETEERING OPERATIONS.

THE REAL PURPOSE: TO PREVENT THE DOLLAR REFUNDING FROM LONDON
FACT: As you are aware, the planned fully transparent, taxable, visible on-balance sheet, US Dollar refunding operation is the undisputed solution to the United States’ self-imposed crisis (which it has inflicted for self-interested and revolutionary reasons on the Rest of the World). This Group of Seven-approved mechanism, using sovereign loan funds for the purpose, delivers windfall taxes into the hands and onto the books of the US Treasury in full view, forcing the US Treasury to credit them (so that they cannot be diverted, which is what the corrupt US Treasury objects to) against the permissive, pointless, avoidable, unnecessary and corrosive ‘background’ official Federal debt incurred by this reckless Administration and its predecessors.

• HOWEVER, the hidden intent buried within the draft Dodd Senate Bill is in reality to declare this US Dollar Refunding operation A THREAT TO THE SECURITY OF THE UNITED STATES AND TO HAVE IT CLOSED DOWN. In other words, these criminals intend to procure that the single, agreed-upon and sound, reliable solution to the entire crisis is A THREAT TO THE SECURITY OF THE UNITED STATES, i.e., THE SOUND SOLUTION THREATENS THEIR RACKETEERING OPS.

In summary, therefore, the provisions buried inside the colossal Dodd draft Bill from the Senate which would empower the Office of Financial Research arbitrarily to DECLARE any non-bank entity at home or abroad to be a ‘threat to the security of the United States’ and therefore a candidate for being ‘taken down’ with its operations to be deemed by unaccountable apparatchiks to be null and void, are SPECIFICALLY AND INTENTIONALLY targeted at the planned on-balance sheet US Dollar Refunding Programme deploying the sovereign loan funds provided pro bono humanitas that’s to be managed by the US Securities expert Michael C. Cottrell, B.A., M.S., from London – all necessary arrangements having been made effective from the end of May 2009 for that purpose, given the intransigence of the official US control kleptocracy in this regard.

Moreover the US Treasury Secretary will be empowered to:

• Invest in any asset, activity, operation or programme without visibility, accountability or checks and balances that they like (so much for ‘accountability’).

• Issue arbitrary and CLANDESTINE instructions, as we have seen, to the Treasury’s Office of Financial Research to target and ‘take down’ any entity, whether within the US jurisdiction or offshore, that he considers to be a ‘threat’, i.e. to be getting in the way of them, US Treasury’s unfettered, permissive, hidden trading program and clandestine (CIA) racketeering operations.

DUPLICITOUS LEGISLATION INSTITUTIONALISES RACKETEERING
And it has recently come to light that the US Treasury is so desperate to continue its reckless racketeering activities below the radar, that it is currently, as we speak, engaged in clandestine program trading operations with selected counterparty ‘takers’ involving the arbitrary issuance of Treasury Securities for use as collateral at a de facto interest yield of 50%.

In other words, the Geithner Treasury is ALREADY generating massive volumes of ‘trashets’ below the radar, over and above what is implied by its permissive formal financing operations to ‘manage’ the $4.5 trillion of additional and completely unnecessary debt that the Obama régime is proudly incurring in the space of two years (doubling in just two years the officially REPORTED debt burden accumulated by the Treasury in almost a full century).

It is ALREADY the case that the reckless, ill-advised, permissive measures taken by the Obama Administration to date have condemned American taxpayers to generations of higher taxes than are ‘necessary’, given that NONE OF THIS DEBT need have been incurred AT ALL had the US Dollar Refunding Programme using the sovereign $6.2 loan funds provided pro bono humanitas on 19th-20th June 2007 been used for the purpose for which it was intended – instead of being hijacked by the organised kleptocracy embedded in the US structures, beginning at the White House and the controlling criminalised US Intelligence Power.

But now, with the Republican Party – increasingly seen abroad as a hotbed of dirty dealing and criminality – desperate to continue Fraudulent Finance racketeering as though there had never been any discontinuity – the Dodd Bill, or what emerges from the Senate, is more than likely to be enacted, ‘enabling’ Obama to sign it into law.

• UPDATE, 28th April 2010: A trusted New York US financial expert observer known personally to the Editor of this service provides the following elaboration to the first paragraph under the heading given immediately above. We reproduce his very illuminating observations verbatim:

‘To some degree, this type of percentage return corresponds with what I was told last week with regard to a certain offered Dollar Investment Program that ‘promises’ upwards of an 800% return over a two- to three-year period, the minimum investment being $100 million. I don’t know all the specifics, as yet, though a very trusted and knowledgeable non-USA source says he checked same out, in depth, and it appears to be framed in a very legitimate program’.

• Editor’s comment: OF COURSE! ALL PONZI SCHEMES ARE FRAMED TO APPEAR LEGITIMATE!

Our correpsondent continues that ‘my comment to him was’:

‘In my humble opinion, this Tooth Fairy-promised return can only be possible if one is the owner of a commercial bank utilizing the fractional reserve system, wherein near-zero interest paid for USA Treasury funds is multiplied by a factor of 9x times, then the resultant amount is self-traded at 100x leverage within the foreign exchange spot and forward markets. Add in the advantage of criminal pre-notification of US Treasury and currency decisions as they will affect the dollar exchange rates, telling one where to place their long and short 100-to1 leveraged trading bets, and there you have your ‘guaranteed’ near-infinity return on investment, whereby a ‘nearly free’ borrowed US$1.0 times 9, times 100, yields a US$900 now-leveraged bet that, in turn, earns many multiples of itself. Absent the foregoing, it’s an outright fraud, a planned Ponzi scheme’.

• Editor’s further comment: Under the so-called ‘Restoring America Financial Stability Act’, which means the opposite of what it professes, THE U.S. TREASURY CAN DO ANYTHING, and will MOST CERTAINLY engage in the origination of such contracts, which will degrade the dollar to zero and will GUARANTEE an outcome FAR WORSE THAN WEIMAR, ENGULFING THE WHOLE WORLD.

‘NULL AND VOID’ AND ‘MISPRISION OF FELONY’
The manipulators within the components of the Intelligence Power theoretically retain the option to procure, by whatever means they may deem feasible, to have Obama removed from office as an impostor – although in practice, since he was sworn into office by the Chief Justice (who made a deliberate mistake in the process, but Obama was subsequently re-sworn inside the White House behind closed doors soon afterwards, OSTENSIBLY by the Chief Justice), the Supreme Court would be destroying what remains of its own credibility by concurring in any such process short of actual impeachment. However it remains the case that all laws and Executive Orders signed by Mr Obama could subsequently be found to be null and void – a possibility recently taken up by Mr G. Gordon Liddy, a Box Gang operative, in his broadcast programme on 20th April 2010, taking a leaf out of this Editor’s report revealing that ‘All UK legislation since 2000 is null and void’. Specifically, Liddy (the felon of Watergate and Cheneygate), who is both an attorney and also a ‘former’ FBI agent, asserted, in response to Artie from Chicago who asked what the fate of the Obama health care legislation might be, responded: ‘Any bill signed into law… by non-President Obama would be null and void’. He then repeated the phrase ‘null and void’ shortly afterwards.

And in a separate radio show on the same date, Liddy spent an hour on the case of Colonel Lakin, who is to be court-marshalled because he is refusing deployment orders on the ground that he doesn’t know who his Commander-in-Chief is. In this broadcast, Liddy showed to ‘the interested’ that he had read our report entitled ‘All UK legislation passed since 2000 is null and void’ (which, at 07:51 hrs on 26th April 2010 had accumulated 10,500 links, and was up to no less than 10,900 links by Tuesday morning 27th April, by the way). Specifically, Liddy referred twice to Obama’s legislation and Executive Orders being ‘null and void’, indicating a reference by transference, to our report.

We stress, however, that our study of the way the Soviet Leninists operate (in the context of our work for Soviet Analyst) reveals that what the controllers have procured by placing Obama in the top slot is just AN OPTION to proceed as suggested above, depending (as Lenin would have put it) on the ‘correlation of forces’. For don’t forget, these people all use Lenin’s modus operandi.

Close and reliable observers in the United States have also informed us that reference to ‘Misprision of Felony’ is increasingly noticed in the public domain. Isn’t that interesting?

GENERAL POWERS TO BE TRANSFERRED TO THE U.S. TREASURY
At the Cooper Union, the audience of financiers applauded when Mr Obama ventilated populist sentiments, and failed to grasp that the intended legislation contradicts what came out of his mouth. This is because these people live in a one-dimensional universe and do not, as a rule, understand that policy is dictated by a narrow clique of controlled, organised criminal Fascist revolutionary kleptocrats in their own interests who make common cause with Lenin (globalism being, of course, profoundly Leninist). No doubt among their number will have been bankers who will have ordered the colossal Dodd draft text to be perused with the proverbial fine toothcomb.

It will be interesting to see whether any of their number sticks his head out to warn of the terrible consequences that will ensue, not just for the United States but for the whole world, if this truly iniquitous piece of dirty US legislation reaches the tarnished Statute Book.

More generally, what Stalin’s grandson does in this draft senate Bill is essentially to TRASNFER GENERAL POWERS TO THE U.S. TREASURY – the self-same technique that the covert pan-German Continuum has used to entice the weak European nations into the European Union Collective. What Britain and these countries have blindly done is to confuse ‘cooperation’ with collectivism and entrapment.

On accession, the intended satrap nation state transfers GENERAL POWERS to the unelected control apparat in Brussels, which is devoid of any meaningful checks and balances despite the convoluted arrangements laid down in the 1992 Maastricht Treaty, and is dominated by the Franco-German alliance institutionalised by the treaty of the Elysée of January 1963, of indefinite duration.

THE GENERAL POWERS TRANSFER MODEL:
HITLER’S PUTSCH IN 1933 AND THE EUROPEAN UNION COLLECTIVE
As we have revealed, this apparat is institutionally corrupt, since the European Commission’s accounts have specifically NOT been approved by the EU’s own Court of Auditors located in Luxembourg, for the past 14 years. This means of course that the European Commission [EC] is a criminal enterprise, which is continuing to ‘trade’ using taxpayers’ money when it cannot account for the funds it has consumed for the past 14 years.

The UK Serious Fraud Office has placed on the record through its official John Craig, confirmation of the basic fact that it is a criminal offence for taxpayers’ funds to be remitted into the hands of a criminal enterprise. By extension, therefore, it is also a criminal offence for the British and other governments to continue paying Value Added Tax (VAT) receipts over to the European Commission KNOWING THAT THE E.C.’S ACCOUNTS HAVE NOT BEEN APPROVED FOR THE PAST 14 YEARS.

• Taxpayers are accordingly being defrauded by the British (and other craven) EU satrap regimes.

The earlier version of a catastrophic transference of GENERAL POWERS into the hands of an unaccountable dictatorship occurred on 23rd March 1933, when Adolf Hitler (Schickelgruber), having resorted to intimidation and mendacity and banning the Communist deputies from the Reichstag following the contrived ‘red scare’ triggered by the Reichstag Fire, managed to secure the necessary two-thirds majority in the new Reichstag for an ENABLING ACT that transferred legislative authority from the Reichstag itself to his Cabinet, ostensibly for four years (1).

‘A wave of Nazi purges followed, as one institution after another was subjugated. Arbitrary rule replaced government by law in what has aptly been termed a “coup d’état by installments” (2). By summer, all parties except the Nazis had been dissolved…’.

HOW ARE THE MIGHTY IN THE PROCESS OF FALLING
Our Malaysian correspondent, Matthias Chang, has provided the following description of what happened when Tony Blair appeared at a pyramid-shaped (i.e. globalist-esoteric, as in Las Vegas, Astana (Kazakhstan) and other deluded geomasonic ‘points of light’ locations around the world), on 24th April 2010 to provide a confused audience with the benefit of his sterile prognostications. The following report, which has been widely disseminated, is reproduced verbatim:

War criminal Tony Blair, the keynote speaker at the National Achievers Conference organised by Success Resources, a sycophant Singapore outfit at the Sunway Pyramid Convention Centre in Kuala Lumpur, hid in fear at the threat that members of the Malaysian anti-war NGOs would throw slippers at him and that members of the Kuala Lumpur War Crimes Commission would serve an indictment for war crimes.

Extensive security measures were put in place before his arrival for the three-day event. For the first time, delegates to the conference had no itinerary of the speakers invited to speak at the convention. Organisers and delegates were not even told when speakers were scheduled to speak. There was a total black out!

Delegates have to wear a special wrist band for the entire duration of the convention for identification purposes and anyone without the security wrist band was not allowed to enter the vicinity of the convention hall.

Chairman of the Kuala Lumpur War Crimes Commission, Mr Zainur Zakaria, the Chief Prosecutor of the War Crimes Commission, Mr. Matthias Chang, with two members of the Perdana Global Peace Organisation, Mr. Ram Karthigasu and Mr. Christopher Chang, a representative of the Malaysian Kwong Siew Association, and two representatives of the Iraq Community in Malaysia evaded the security by registering themselves as delegates.

At 8.30 am, members of NGOs gathered at the entrance of the convention center to protest against the visit of war criminal Blair. Undercover teams were dispatched to the three separate entrances to confront and attempt to serve the war crimes indictment on Blair. But he could not be seen entering the convention centre.

He had entered surreptitiously and was hiding in a VIP room just above the convention hall where the function was held. His original schedule was 10.00am this morning. But organisers issued statements that no schedule is available.

British and Malaysian security officers were seen patrolling the corridors and had identified the seven delegates who were waiting for Blair. They kept a close watch on the delegates. Mind games began when rumours were spread that Blair would not be speaking today. Hints were given that Blair would be speaking on Sunday in the hope that the seven delegates would abandon their vigil.

At 11.25am, the seven delegates discovered that Blair was hiding in the VIP room just above the convention hall. They took their positions, with three members tasked with taking photographs.

At 11.30am Blair and his team of goons descended from the VIP room and walked towards the VIP entrance of the convention hall.

Mr. Matthias Chang and Mr. Zainur Zakaria rushed forward to serve the indictment, while the Iraqi representatives loudly denounced former Prime Minister Blair as a “mass murderer, war criminal, shame on you”, repeatedly. Blair was obviously unsettled and put on an embarrassed smile.

Mr. Matthias Chang and Mr. Zainur Zakaria were prevented from handing the indictment to Blair by over 30 British and Malaysian security personnel. Both of them denounced ex-Prime Minister Blair within earshot, “War criminal, shame on you! Mass Murderer!”

Mr. Zainur Zakaria also shouted at the Malaysian security personnel: “Why are you protecting a war criminal?” The security officers could only respond with a silly expression.

The Kuala Lumpur War Crimes Commission stated later that this is only the beginning of a global campaign to ostracise war criminals like Blair and Bush and urge people the world over to adopt similar campaigns against Bush and Blair. ENDS.

• FACTS: Blair and his wife Cherie have ‘certain interests’ in Kuala Lumpur. Back home, Blair has acquired a Jacobean mansion at Weston Underwood, within the Bernwode area adjacent to where the Editor is writing this report in Buckinghamshire. According to recent press reports, he has a staff of more than 130 lackeys, and needs a very large staff to maintain the formal gardens and the mansion (which used to belong to Sir John Gielgud, the actor), in the pristine state to which it is historically accustomed.

Investigative reports have established, by perusing Companies House entries, that the ‘Blair Machine’ operates via a complex, Maxwellian network of interrelated companies and private partnerships. Specifically, there are two tiers of these Blair entities – uemploying geo-esoteric names: Windrush and Firerush (Wind and Fire).

The provocative selection of these names proves that Blair’s religiosity (like Wanta’s: see below) is fraudulent and that in reality he is engaged, when he is not enriching himself further, in promoting the sterile ‘New Age of Aquarius’ World Pantheistic (= pagan) Religion, which seeks to ‘merge’ all organised religions into one – a work of Satan – and to ‘legitimise’ vile abominations such as the primary activity in which these people engage after moneymaking: paedophilia.

Indeed in the vast pyramid structure designed by the agnostic British architect Sir Norman Foster at Astana (anagram of the Russian for Satan, satana), Kazakhstan, is a huge circular meeting room built round a sun image dedicated to meetings of the controllers of organised religions around the world, who meet at this venue, named after Satan, for this very purpose.

A domestic problem all along may well have been how to effect the transfer of any funds received through ‘facilitating’ the then latest version of the EU control mechanism at the time of the rolling European Union Collective’s Treaty in 2005 [see the first report in this series: Archive] plus any corrupt payments that may have been received, as reported, in exchange for ‘facilitation’ of the illegal attack on Iraq, including $136 million reportedly transferred into an account in Abu Dhabi.

Funds reportedly held within the Ansbacher banking network in the British Virgin Islands, Malaysia and elsewhere will also have needed repatriation.

Note that the Windrush entities are DUPLICATED by the Firerush entities. To both groups of Blair corporations, which must file accounts with Companies House, are attached private partnerships, which do not file accounts available for public scrutiny. Any private citizen trying to bamboozle HM Revenue and Customs nowadays with such a complex tax structure would immediately trigger a mandatory investigation. But, as we have repeatedly pointed out, if you wind up belonging to the intergovernmental élite, the Rule of Law doesn’t apply to you.

GERMANS BASICALLY TELL GREECE TO GET OUT OF THE EURO
While the International Monetary Fund grappled during the Spring Meetings in Washington, DC, with the Greek financial meltdown brought about as a direct consequence of Fraudulent Finance transactions via Citibank, Athens (as previously revealed by this service), Hans-Peter Friedrich, a senior official of the CSU, the Bavarian segment of the so-called ‘Christian Democrats’ led by Frau Angela Merkel, the ‘former’ East German Communist Party activist and Secretary for Agitation and Propaganda in the Communist Youth Wing at Karl Marx University, stated pointedly for world public consumption that the possibility of Greece leaving the Euro should no longer be considered taboo. Other German officials have also been making provocative comments on this subject.

In other words, the pan-Germans dancing to the cacophonous, sterile tune piped by the heirs of the Nazi Abwehr, are now predictably scared out of their wits that Germany itself will be brought down by its own mechanistic hegemony and control strategy, designed to enmesh the satrap European ‘Member States’ in a de facto ‘Greater Germany’.

Actually, Friedrich’s remarks were sharper: specifically, Friedrich said that Greece ‘must seriously consider leaving the Eurozone’ and that this subject ‘should not be taboo’. Obviously it must be many years since Herr Friedrich read the Maastricht Treaty, if he ever read it at all, since the Treaty states unequivocally that state participation in Economic and Monetary Union (EMU) on the basis of ‘irrevocable’ exchange rates, cannot be rescinded – so that once a satrap country has been stupid enough to join, it is stuck, like a dead fly in a spider’s web, until the end of the solar system.

The IMF Press Room learned that officials of the Group of Twenty (which has ‘displaced’ the Group of Seven as part of an earlier Brown operation to close down the G-7-approved transparent Dollar Refunding Programme), were now aware that the entire EMU structure may be in jeopardy, and that Germany itself (which harbours the largest concentration of dud derivatives assets worth zilch in the world, having enthusiastically participated in the Fraudulent Finance racketeering fest only to be double-crossed, as usual, by the Bush Crime fraudsters) faced the prospect of having to cough up 45 billion Euros JUST AS A DOWN PAYMENT, in order to help fund Greece’s emergency rescue package, which looked precariously poised at the end of the Spring Meetings weekend.

At these IMF meetings there is usually one critical issue that swamps everything else, and this time it was Greece. But ‘Greece’ in the prevailing context means the continued coherence of the pan-German/French Economic and Monetary Union project that underpins the EU Collective itself.

If Greece pulls out, other increasingly desperate satrap ‘Member States’, such as Spain, Ireland and Portugal, won’t be far behind; and even France, which also itself holds a colossal store of dud derivatives ‘assets’, may have second thoughts. When the Euro was ‘launched’ in 1999, Dr Hans Tietmeyer, then President of the Bundesbank, was asked point blank whether the Bundesbank had taken the precaution of holding in store an adequate stock of Deutschemark banknotes, against the possibility that the European currency union could collapse.

• Significantly, Dr Tiemeyer would not answer the question.

‘GREEK CONTAGION’ CONFIRMS THE LONG-TERM
EMBEDDED STUPIDITY OF THE PAN-GERMAN DUMKOPFS
At all events, in the run-up to the IMF Spring Meetings, and against a background of confusion which has since been exacerbated by the remarks of Herr Friedrich, contagion was spreading all across southern Europe. Specifically, spreads on ten-year Greek bonds soared to almost 600 basis points over German Bunds in ‘panic trading’, pushing Greek borrowing costs up to 9%, while rates on two-year Greek debt rose to 10.6%. On Monday 26th April, following the absence of any clear indication of a ‘resolution’ of the Greek crisis from the IMF/World Bank Spring Meetings, the yield on ten-year Greek Government bonds reached 9.39%, with the spread against ten-year German benchmark bonds (bunds) up to 6.5 percentage points.

Against this background, the IMF’s Managing Director, Dominique Strauss-Kahn, told the press that ‘it’s clear that the Greek situation is a very serious one. There is no silver bullet to solve it in an easy manner’. Credit default Swaps (CDSs) on Portuguese debt surged by 50 basis points within the space of a few hours on 22nd April, to 270, an all-time high, while CDS on Spanish debt reached a new record of 175 basis points. Irish debt CDSs rose to 162, and official bonds issued by Hungary, Bulgaria, Romania, Russia and Argentina rose sharply. Attempts to ‘ring-fence’ Greece appeared to be making little progress; and expectations of some patchwork agreement were expected to leave the frayed financial markets dangerously unimpressed.

While all this was going on, we were being informed by special US sources that the no-holds-barred economic and financial warfare that is now raging, entails an US expectation that the Euro will be destroyed – and that the whole grandiose purpose of the Dodd Bill spewed out by the Senate will be to impose a de facto US dollar dictatorship controlled by the sinister-sounding intelligence cadre within the US Treasury to be known as the Office of Financial Research (OFR).

Since the OFR will report to the US Treasury Secretary, this appointed official will become, by stealth, the actual financial dictator of the whole world – accommodating Fraudulent Finance transactions and open-ended permissive financing and racketeering both above and below the radar, and presiding over a rapidly accelerating domestic and global inflation which will make the Weimar Republic a pleasant memory by comparison.

All because these criminals are jealous of ANY competition, and have refused to contemplate the CORRECT COURSE, agreed four years ago by the Group of Seven Financial Powers (which is why the G-7 has been swamped by the G-20) – namely, transparent, on-the-books Dollar Refunding in the private sector delivering windfall tax accruals onto the US Treasury’s books, offsetting the escalating ‘background’ debt and placing the US Treasury‘s finances on an even keel after a century of uncontrolled deficit-financing profligacy. The US Treasury has a DEATH WISH.

THE WANTA MONEY-STEALING ROUTE RESURRECTED
On 21st April, ‘Princess Paula’, purporting to be sovereign of the fake ‘Principality of Snake Hill’ outside Sydney, was interviewed on BBC-5 Live. This new aberration sent a loud signal to ‘the interested’ that the original criminal intention of diverting funds via the virtual ‘Central Bank of Snake Hill’, which doesn’t exist but which has a Washington, DC, telephone number that ‘just happens’ to be that of the French Embassy in the US capital, was still ‘live’ – even though we have long since debunked the ‘Principality of Snake Hill’ deception as a criminalist operation focused around the renegade felon and deceiver, Lee/Leo Wanta, the courier between George Bush Sr. and President Gorbachëv, and who grew up in Wisconsin with (guess who?) Richard B. Cheney.

• FACT: The use of a French Embassy-provided DC phone number for this Wanta scam is highly revealing. President Sarkozy’s half-brother, Olivier (‘Oliver’), is a senior figure within George Bush Sr.’s money laundry, Carlyle Group. So the French Embassy appears to be a co-conspirator in this fallback contingency plan to seize and divert funds on disbursement for the illicit benefit of the Carlyle operation. As previously stressed, France covers for Germany under the 1963 bilateral.

First of all, the documents that we hold showing Princess Paula having awarded this or that ‘title’ carry a signature which is identical to that of Lee/Leo Wanta (many samples of whose handwriting we possess in our files).

Secondly, you will recall that in a key (23rd September) update to our report dated 20th September 2009 (and in subsequent reprises of that report) we proved that the ‘Principality of Snake Hill ‘is a fraudulent virtual operation lacking all substance, and that the Principality does not exist.

Specifically, we reported as follows:

On Wednesday 23rd September 2009, our Irish friend and associate, Mr Richard Sharpe, obtained independent confirmation from Ms. Brenda Farrell, of the Australian Embassy in Dublin, that ‘The Principality of Snake Hill’ does not exist, thereby reconfirming that the entire ‘Snake Hill’ operation is FRAUDULENT. This is obvious from all the evidence: but we gained OFFICIAL CONFRIMATION.

• This definitively destroys the bona fides and reputations of the poseurs and serial deception operatives that we have exposed, and should terminate the destructive activities of these people once and for all. They are FINISHED. They have been CAUGHT OUT. Before the whole world.

The email from the Australian Embassy in Dublin, dated 23rd September 2009, reads as follows:

Forwarded message
From: <richardsharpe@eircom.net>
Date: Wed, Sep 23, 2009 at 12:25 PM
Subject: Fwd: Principality of Snake Hill [SEC=UNCLASSIFIED]
To: mrrichardsharpe <mrrichardsharpe@gmail.com>

richardsharpe@eircom.net wrote:
Many thanks for your timely response.

Regards
Richard

“Austremb Dublin” <Austremb.Dublin@dfat.gov.au> wrote:

Dear Mr Sharpe,

Thank you for your email.

There is no principality in Australia.

Kind regards

Australian Embassy
Dublin
Tel: +353 (0) 1 664 5300
Fax: +353 (0) 1 678 5185

richardsharpe@eircom.net

Thirdly, if you revisit our report dated 20th September 2009, you will see that we comprehensively debunked and ridiculed all the fake non-existent dummy ‘officials’ with invented and risible names supposedly forming the ‘Government of the Principality of Snake Hill’ – demonstrating the entire operation to represent a crude virtual fabrication, originally intended not just to engineer a virtual conduit enabling funds to be diverted via Wanta’s signature through the virtual central bank into (we now realise) the hands of the Carlyle Group via the corrupt French Embassy thanks to Olivier (Oliver) Sarkozy being a senior executive with Bush Sr.’s money-laundering Carlyle Group, but also as an entrapment mechanism enabling authorities to move in after the funds had been diverted and to ‘take down’ those unwittingly involved, including Wanta himself no doubt.

In the fourth place, you will also recall that we publicised the typically odious letter to the Editor of this service dated 18th September 2009 from one of Mr Wanta’s CIA lawyers, Thomas E. Henry – a foul individual who, in a three-way conversation between the Editor, Wanta and himself several years ago, thought it appropriate to tell a dirty joke about Jesus Christ – in which Henry (known as ‘Mr Nasty’) stated that he had been directed by ‘Leo/Lee Wanta and representatives from the Principality of Snake Hill’ to make demands on the Editor of this service as stated in that letter.

In the fifth place, you may recall that in response we asked Mr Henry to provide us inter alia with copies of the necessary official authority issued by the US Secretary of State (Mrs Hillary Clinton) proving that Wanta is, as he claims, accepted by the US Government (the Obama Administration) as the Ambassador to the United States for the Principality of Snake Hill.

Mr Henry could not provide any such documentation, of course, since none exists; and when we were able to prove definitively that ‘The Principality of Snake Hill’ does not exist because ‘there are no principalities in Australia’ (as every schoolboy except that felon up in the boonies) knows, Mr Nasty of course vanished from sight like a nasty smell.

Yet now, all of a sudden, on 24th April 2010, long after ‘The Principality of Snake Hill’ deception and of Wanta’s participation and sponsorship of this typically crude and ignorant fabrication has been debunked and consigned to the trash, a signal is heard in London to the effect that the operative calling herself ‘Princess Paula’ is ‘alive and well’, and speaking to some ill-informed BBC-5 Live character to a British audience which necessarily has no possible clue about the background to this discredited US criminal intelligence operation.

What this signalled to US was an intent, notwithstanding the above, for the funds to be diverted on payout via the French Embassy (remember again that France and Germany remain locked together under the terms of the indefinite Treaty of the Elyseé) on behalf of the operatives whom Mr Wanta serves, headed by George W. Bush Sr.

Futhermore, as late as 13th March 2010 ‘Ambassador Lee Emil Wanta’ sent an email received in the UK at 17:34 hrs in which he again displayed himself fraudulently as ‘Ambassador Extraordinary and Plenipotentiary’, Lee Emil Wanta, The Principality of Snake Hill, Postal Box No. 488, Baulkham Hills, NSW 2153; Telefon [in German]: 202 379 2904 ext 001. As noted, the Washington, DC, 202 area code phone number is provided by the French Embassy.

This email contained an attachment which a UK forensic expert declared to us to be ‘riddled with code’. The email was sent, like so many other Wanta fabrications, to the FDCI Chairwoman Sheila Bair, to the White House, to ‘First Lady Michelle Obama’, to Attorney General Eric Holder, to Peter Mandelson MP (indicating, typically, that Wanta has no idea that Mandelson ceased to be an MP years ago, spent time as a European Commissioner in Brussels, and was hauled back and ennobled to serve Gordon Brown, so that his correct title these days is LORD Mandelson), ‘Chairman Paul A. Volcker’ ,and all sorts of other figures whose staff will have shoved the email immediately into the trash. The email was signed off , like other such Wanta missives, on a diversionary false-religiosity note: ‘Blessed be God in His Angels and His Saints’, attributed to St Anthony.

Faced with these continuing insults to everyone’s intelligence, we have decided that now is the time to expose the FRAUD IN THE INDUCEMENT perpetrated against the Editor of this service by Lee/Leo Wanta and another of his devious CIA lawyers, Steven D. Goodwin (born in Düsseldorf, see) of Richmond, VA, in respect of the STEALING of the Editor’s bona fide loan of $35,000.

SUMMARY OF THE EDITOR’S ‘WANTA INITIATIVE’
The background, briefly, to this matter, which of course again proves that Wanta is a crook and a financial terrorist, is as follows. After several years of quite hazardous research, in the course of which the Editor – whose job it is to inform our subscribers about what may be going on behind the financial scenes, not just to regurgitate what they can read in the newspapers – had become aware in outline of the endemic financial corruption; and assisted by the Editor’s ongoing knowledge of Soviet developments arising from his editorship of Soviet Analyst, the Editor also became aware of Wanta and managed to discover where he was located.

In 2004, the Editor sent a note to Wanta asking him to call the Editor’s cellphone at 2:30pm (on 23rd May 2004). The Editor had travelled by air to Eau Claire and had hired a taxi for a number of hours at the regional airport. On arrival in Chippewa Falls, the town where Mr Wanta resides, the Editor asked the taxi to pull into a derelict parking lot. At 2:30pm the Editor’s mobile phone rang, and the Editor informed Wanta that he would be at his front door in five minutes. On arrival at the location, the door was opened, and the character illustrated in Claire Sterling’s book ‘Thieves’ World’ (3) (following page 192) opened it. The Editor had hired a taxi at the airport for three hours and had asked the driver to keep the engine running ready to leave instantly should this be necessary.

The Editor recorded an interview with the grossly overweight Mr Wanta for three hours, but as the accent he spoke in was so peculiar, some of what he said has remained almost incomprehensible to this day. Nevertheless, the Editor maintained contact and in the first quarter of 2005, Mr Wanta suggested that the Editor should contact (his CIA) Attorney Steven Goodwin in Richmond, VA.

• It has since transpired, of course, that this was a set-up.

Because during dinner in Richmond (which the Editor paid for) Mr Steven Goodwin related how he had negotiated an arrangement with the Wisconsin Department of Corrections whereby if a certain sum of money was paid (restitution plus fees), the Department would use its best endeavours to procure the termination of Mr Wanta’s probation, which was otherwise scheduled to be terminated on 28th November 2010. Obviously, Goodwin was subliminally suggesting that the Editor himself should provide the necessary funds for this purpose.

After careful consideration for many weeks, and well aware that this was probably a deception, the Editor decided that if further progress was to be made in destabilising and exposing the financial criminality which by now he realised from accumulated materials and research was corrupting the whole world, he needed to remain ‘inside’ the tent, notwithstanding that the entire tent floor area was covered with writhing snakes. He therefore ultimately decided to provide a sum of money from private funds acquired from a successful sale of our London home ($35,000) for the purpose.

Goodwin revealed himself to be dodgy from the outset – failing on several occasions to send the necessary documents, raising early questions in the Editor’s mind as to the man’s bona fides.

In the end, the Editor travelled to Eau Claire again, this time staying overnight, and appeared at the Wanta location on 9th June 2005 inter alia to conduct a further interview and to sign the necessary loan documents, which Goodwin had failed to send to the Editor in advance for his perusal. The Editor was not accompanied by a lawyer, so the risk of being scammed was high.

On arrival, Mr Wanta looked somewhat awkward and nervous, but typically arrogant, and basically motioned the Editor to sit down and to ‘sign here’ without any further ado. The Editor looked at the documents and felt most uncomfortable, and for some minutes debated in his mind whether to get up and walk out. Then he thought that if Wanta and Goodwin were indeed engaged in a scam, the Editor had the means and resolve to expose their duplicity. On this occasion, too, there was no waiting taxi, as Wanta had stated that he would drive the Editor back to the hotel.

Faced with this situation, the Editor signed the Escrow Agreement which according to Wanta would be countersigned by Goodwin after receipt of the Editor’s funds – the Editor remaining motivated by the necessity of having to continue the research from ‘within the tent’, or at least a small corner of it, and by a belief that if this was indeed a typical Wanta scam, the truth of the matter could then be used later to appropriate effect. Which we are doing now.

WANTA-GOODWIN FRAUD IN THE INDUCEMENT AGAINST THE EDITOR UNDER DURESS
And as it turns out [see below], the loan documents were fraudulent, involving FRAUD IN THE INDUCEMENT of the Editor by Wanta and Goodwin UNDER DURESS.

The documents were/are as follows:

PROMISSORY NOTE
US DOLLARS 35,000.00
JUNE 19TH, 2005

FOR VALUE RECEIVED, the undersigned, promises to pay to the order of Christopher Story, the sum of THIRTY FIVE THOUSAND AND 00/100 US Dollars with interest at the rate of seven percent (7%) per annum thereon, the principal being payable, without offset, at [address] World Reports Limited, 108 Horseferry Road, Westminster, London SW1P 2EF, United Kingdom, or at such other place as the holder may designate in writing with payments to begin 365 days from date of this Note and due in full 730 days thereafter.

The payment of the principal balance of this Note may be prepaid in whole or in part, at any time or from time to time, without penalty.

This Note may be accelerated upon the death of any maker or at the option of the holder so that all remaining principal and accrued interest shall be payable upon the later of 30 days after the date of any maker’s or Guarantor’s death or 15 days after the holder provides written notice to the maker at its principal place of business that the holder is exercising his right to accelerate the amounts due hereunder. In the event of default in the payment of any amount due under this Note, the holder may declare the entire unpaid balance, principal and interest, to be immediately due and payable and thereafter may exercise any remedies provided by applicable law.

The holder of this Note shall have the right to enforce any one or more available remedies in whole or in part, successively or concurrently.

The maker of this Note waives presentment, protest, and notice of dishonour; agrees that an extension or extensions of the time of payment of this Note, or any installment or part thereof, may be made before, at or after maturity by agreement with anyone or more of the parties to this Note without notice to and without releasing the liability of the other party under this Note regardless of which parties are notified of the extension or extensions; waives the benefit of all exemptions as to the debt evidence of this Note and any right which it may have to require the holder to proceed against any person; and agrees to pay all the expenses, including reasonable attorney’s fees, in collecting this Note, or any installment or part thereof, which is not paid when due.

[Signed]: Lee E. Wanta.

Address of Notice [added in Wanta’s handwriting]:
C/o Goodwin Sutton & DuVal, Plc.
Old City Hall, Ste No. 350
1001 East Broad Street
Richmond, VA, USA (23219).

Separately the Editor was handed by Wanta the text of an ESCROW AGREEMENT FOR SIGNING BY GOODWIN WHEN THE FUNDS WERE SUPPLIED, as follows:

ESCROW AGREEMENT
RICHMOND, VIRGINIA
Date: 14th July, 2005

TO: Steven D. Goodwin, Trustee for the benefit of Ambassador Leo* E. Wanta [*NOT: Lee E. Wanta]:

The undersigned maker, Christopher Story, does hereby acknowledge that he is placing certain funds in the amount of THIRTY FIVE THOUSAND AND 00/100 DOLLARS ($35,000) into Escrow with Steven D. Goodwin, a discreet and professional attorney-at-law, for the sole and exclusive purpose as stated herein and under the following terms:

1. Said funds shall be used to pay the amount of $30,551.97 to satisfy the court ordered obligations in Wisconsin Case No. 92CF683.
2. Any and all remaining amounts shall be distributed only as directed by Ambassador Leo E. Wanta, to be used for the benefit of, and at the direction of, Ambassador Wanta.

The parties herein acknowledge that the funds paid to, and held in Escrow by, Steven D. Goodwin, under this Agreement are the same funds referenced in a Note in the amount of THIRTY FIVE THOUSAND AND 00/100 DOLLARS ($35,000) made by Ambassador Leo E. Wanta for the benefit of Christopher Story.

[Signed]: Christopher Story, maker [SEAL]

I, the undersigned Trustee, agree to receive, hold and distribute the funds referenced herein upon the terms and conditions stated above.

[Signed]: Steven D. Goodwin, Trustee [SEAL].

FEATURES OF THE FRAUD IN THE INDUCEMENT SCAM
AGAINST THE EDITOR PERPETRATED BY WANTA AND GOODWIN
These documents represent Fraud in the Inducement because:

(1): The Promissory Note has to reference the Escrow Agreement and vice versa. In neither case does this occur. Specifically:

(2): The Promissory Note does not reference the Escrow Agreement.

(3): The Escrow Agreement does NOT reference the Promissory Note. It references ‘a Note’, which could be ANY NOTE. The reference has to be specific, which is not the case.

(4): The Promissory note dated 9th June 2005 is signed by Lee E. Wanta.

(5): The Escrow Agreement references an ‘Ambassador Leo E. Wanta’ making no reference to ‘Lee E. Wanta’. This operative uses two names for obfuscation purposes [DUPLICATION, DIALECTICAL METHODOLOGY: see our repeated reminders that this is the standard modus operandi].

(6): This divergence of names for Wanta widens the fraudulent separation of the Promissory Note from the Escrow Agreement.

(7): Mr Wanta is NOT an Ambassador. To be styled Ambassador, it is necessary to be supported by official credentials issued by the US State Department and renewed by each successive American Administration, confirming that the United States (in this case) recognises that the said individual concerned is an accredited Ambassador. In the case of Mr Wanta’s supposed Ambassadorship for Somalia to Switzerland and Canada, the same criteria apply. Each successive Government of the countries concerned must provide the necessary consent and official acknowledgement of such a person’s status and acceptance as Ambassador. Wanta cannot show such credentials, because this felon’s claims to be an Ambassador are fraudulent and part of his disintegrating cover.

In the United States, there is a convention that a former Ambassador can continue to be adderssed as Ambassador. However Mr Wanta styles himself ‘Ambassador Extraordinary and Plenipotentiary’, Lee Emil Wanta, The Principality of Snake Hill, representing fraudulently that he is the Ambassdaor for the non-existent, cirtual and farudulent ‘Principality’, which is FRAUD.

And as indicated above, when Mr Henry was asked to provide the necessary credentials in respect of Wanta’s spurious (fake) Principality of Snake Hill Ambassadorship to the United States, he was of course unable to comply and was himself therefore exposed as an egregious liar and a fraudster for that reason, and because he stated that he was acting for Leo/Lee Wanta and representatives from ‘The Principality of Snake Hill’, which does not exist.

Mr Steven D. Goodwin likewise fraudulently referenced a spurious ‘Ambassador Leo E. Wanta’ in the Escrow Agreement, thereby exposing himself as a liar and a perpetrator of fraud, as well.

(8): Steven D Goodwin is therefore NOT ‘a discreet and professional attorney-at-law’ but rather a fellow-fraudster with Mr Leo E. Wanta, a.k.a. Lee E. Wanta. Both engaged in gross FRAUD IN THE INDUCEMENT under duress of this Editor, who was not accompanied by a lawyer. Goodwin should be disciplined, debarred and appropriately dealt with both by his profession and by the authorities.

(9): As for Wanta, this case provides further irrefutable PROOF that Wanta is a serial, unrepentant, continuing felon. His felonious status has NOT been altered and he is NOT therefore in a position to own a bank account.

(10): Any funds remitted to Leo E. Wanta or Lee E. Wanta, who handles stolen funds and has STOLEN this Editor’s loan funds plus interest through this inducement fraud, will be at risk. Any party engaged in effecting such a remittance to Wanta, however styled, knowing this background, may place themselves in a situation demanding investigation involving the conveyance of funds into or via the hands of a criminal operative.

WANTA NOW IDENTIFED AS ‘GREAT DARK LORDS’ TERRORIST
As we have had to report herefrom time to time, we have been plagued since February 2008 with extremely unpleasant, often obscene, hateful voicemail messages from a loony-toon calling himself a representative of the ‘Great Dark Lords’. This nutter spiels well-worn demonic claptrap, exposed in part in the Editor’s book The New Underworld Order, mingled with overt homosexual allusions and obscene New Age rants augmented by propaganda to the general effect that the ‘Dark Forces’ are taking over the world, there is nothing you can do about it and ‘you should drop your stupid Christianity’. In other words, the message is the Leninist revolutionary one that the Dark Forces’ success is ‘inevitable’ (the reverse of which is of course the case, as everything they do fails).

In recent months this harassment became so excessive that we took the decision to close down our landlines in the United States, and partially in London as well. We discovered that the calls were being made via our 1-800 number which has effectively been stolen, so WE are being illegally charged to put up with these open-ended obscenities and abuse.

Originally we thought that a corrupt US Psy-Ops cadre was seeking to harass and destabilise the Editor of these services (mindlessly proving, of course, our effectiveness). However since the false voice has never changed, having been consistent throughout for more than two years, it has become apparent that just ONE individual is responsible for this criminal activity.

We have concluded that this individual is the discredited felon Wanta for the following reasons:

• We have recently learned that he has a voice alteration unit which scrambles and alters voice messages, a technique used by criminal intelligence operatives. We didn’t know this until very recently. Had we known this earlier, the present conclusions would have been reached earlier.

• As indicated, the voice is always the same fake altered voice, so there is only one ‘loony-toon’ doing this: Wanta, masquerading as a demonic, homosexual loony-toon.

• This harassment started when severance with Wanta was in process in the first quarter of 2008. It has continued ever since, without a break until we severed the landlines..

• The harassment was especially intense during the Editor’s weeks in New York in March. Wanta is in a position to ascertain the Editor’s movements.

• Wanta, stuck in Chippewa Falls, has time on his hands and has nothing to do other than to dream up fantasies such as the ‘Snake Hill’ deception – via decaying websites very appropriately using the image of the serpent as the motif for that deception operation.

• Wanta ‘works for’ George Bush Sr., facilitating his financial thefts and scams; and Bush Sr. and members of his family are steeped in the Bavarian occult, taking pleasure in rejoicing in evil.

• As exposed in our report dated 20th September 2009, Wanta’s religiosity, like his patriotism, is fake. Not only does he protest too much, but his absurd play-acting when he arrived an hour and a half late for a meeting with the Editor in 2005 and proffered as his excuse that he had been ‘doing his devotions’, i.e. praying to the Virgin Mary, which he tried to emphasise by showing the Editor a tattered piece of paper containing some religious text – confirmed that he is a religious fraud just as he is a fraud in all other respects as well, including his ‘wrapping himself in the flag’ cover.

• Analysis of the structure of phrases and sentences employed by the harassment terrorist in his obscene and demented voicemails reveals close parallels with Mr Wanta’s way of speaking. It is all ‘Black’ play-acting, of course.

• The harassment could only be sustained by a party who was unable to exert any control over the target (the Editor), who lacked the means to procure others to achieve that objective, and who was therefore consequently nervous and in a permanent state of uncontrolled anger, not knowing what to do next. So he had the ongoing motive to resort to, and to persist with, this dirty and extremely crude Psy-Ops activity, which he could easily undertake as he has access to the necessary voice modification equipment in Chippewa Falls, and all the time in the world at his disposal.

• In addition to the obscene and evil phone calls and voicemail messages, this terrorist resorts also to unpleasant, often likewise obscene, emails. No email address source is ever given, and the false provenance of these emails is varied with every such communication. This crass flexibility is characteristic of an intel-linked operation.

• On 6th March 2008, Wanta telephoned the Editor and, using his ‘FBI persona’, started reciting, in a bombastic tone of voice, various US Statutes to which the Editor, who is not a US citizen and not subject to US jurisdiction externally, must comply. The Editor told him to cease and desist and to stop making an idiot of himself, whereupon Wanta screamed:

‘YOU HAVE DESTROYED EVERYTHING’.

• Accordingly, the Editor learned with satisfaction that our exposures had, indeed, completely detabilised operations with which Mr Wanta was associated. Wanta was the courier between Bush Sr. and Gorbachëv, who are partners in Deutsche AG (Barrington Investment Group), located at St Gallen, Switzerland, along with Dr Helmut Kohl (an equally nasty piece of work: see our exposure details on Kohl in the preceding report).

By ‘EVERYTHING’, Wanta meant that the entire Deutsche Verteidigungs Dienst (DVD) subversion and ‘take-down’ operation run through the Bush Crime Syndicate had now been destabilised as a consequence of these exposures. When embarking upon the course described above in 2005, the Editor experienced a powerful sense that the course he was about to follow would indeed lead to the progressive unravelling of the foreign-derived subversion-by-corruption offensive against the United States: and that is indeed what has happened.

THE FAILING ‘COUP D’ETAT BY INSTALLMENTS’
Wanta has been stuck up in the Wisconsin boonies for the convenience of the Bush Sr.-DVD Fifth Column that has tried to destabilise and destroy the American Republic – an offensive from within, and a clandestine ‘coup d’état by installments’ perpetrated on a scale with no historical precedent. He has remained at their beck and call, trying to ingratiate himself with the serpents in question, because they need his signature to enable them to divert and steal the funds over which Wanta’s signature may ostensibly relate.

When it came to stealing Michael C. Cottrell’s contract, the Bush-Ackermann-DVD cadres simply, as we have reported, forged Mr Cottrell’s signature electronically. As so many examples of Wanta’s signature exist, his continued survival cannot be related exclusively to the fact that ‘they need his signature’. However, as the DVD offensive against the United States and Britain is progressively neutralised, and further destabilised, which is what has been triggered, and is happening, Wanta’s usefulness as a supplicating snake serving the nest of vipers will have passed its sell-by date.

THE NSA/CIA/USAF HANDLER OF WANTA’S PROMOTER
Finally, as these exposures have unfolded, this Editor has been viciously attacked from time to time by a notorious controlled US fabricator and peddler of lies on behalf of Wanta, styling himself as an ‘intelligence expert’, named Thomas Heneghan. We have reported separately that Heneghan was authorised, by Wanta, according to documents we hold, to open one or more bank accounts for Marvelous Investments, a vehicle reportedly used inter alia for the financing of Al-Qaeda.

The veteran criminal politics and finance observer Tim White (4) has informed this service that Thomas Heneghan’s disinformation handler is NSA/CIA/USAF Lieutenant General Otis C. Johnson. Concerning this proven criminalist operative (Johnson), The SEC News Digest dated 21st May 1986 reported [page 1] as follows:

Complaint Filed against Otis C. Johnson: The Los Angeles Regional Office [of the SEC] filed a complaint on May 6 in the US District Court for the District of Colorado against Otis C. Johnson seeking a permanent injunction and other equitable relief for violations of the antifraud provisions of the Securities Exchange Act of 1934. The complaint in question alleges that Johnson defrauded N.D. Resources, Inc. (NDR) and its public shareholders. Specifically, the complaint alleges that Johnson provided NDR with a false geological report concerning certain mining claims and, after NDR had entered into a joint venture with an accomplice of Johnson in order to develop the claims, conspired to provide positive drilling reports to NDR when, in fact, no drilling had been done. The complaint further alleges that Johnson sold approximately 240,353 shares of NDR common stock while the stock price was inflated as a result of press releases issued by NDR concerning the drilling reports. [SEC v. Otis C. Johnson, DCO, Civil Action NO 86-945 (LR-11105)].

The SEC News Digest dated 10TH July 1989 reported [page 1] as follows:

Otis C. Johnson enjoined: The Los Angeles Regional Office announced that on June 22 Judge Lewis T. Babcock, US District Court for the District of Colorado, signed an Order of Permanent Injunction and Other Equitable Relief against Otis C. Johnson. The Order enjoins Johnson from future violations of the antifraud provisions of the Securities Exchange Act of 1934. The Order directs Otis C. Johnson to disgorge his profits from sales of N.D. Resources, Inc. (NDR), which disgorgement is waived based upon the truth, accuracy and completeness of Johnson’s sworn representations concerning his present inability to pay disgorgement. Johnson consented to the Order without admitting or denying the allegations of wrongdoing in the Complaint.

The Complaint alleges that Johnson defrauded NDR and its public shareholders by, among other things, providing NDR with a false geological report concerning certain mining claims and further conspiring to provide positive drilling reports to the company when, in fact, no drilling had been done, and by selling approximately 240,353 shares of the company’s stock while the stock price was inflated as a result of press releases concerning the drilling reports. [SEC v. Otis C. Johnson, DCO, Civil Action No. 87-B-1693 (LR-12149)].

The SEC News Digest dated 24th August 1992 reported [page 4] as follows:

Otis Johnson III Pleads Guilty: The Commission and Michael J. Norton, US Attorney for the District of Colorado, announced that on July 20, 1992, Otis C. Johnson III (Johnson) of Denver, Colorado, pleaded guilty to two criminal informations. The first such information, filed May 20, 1992, charged violation of 18 U.S.C. § 371, conspiracy to commit mail fraud and securities fraud in the purchase and sale of the securities of Corporate Quest, Inc. (Corporate Quest). The second information, filed July 20, 1992, charged violation of 18 U.S.C. § 371, conspiracy to commit mail fraud, wire fraud, and interstate transportation of stolen property, in the purchase and sale of the securities of United Financial Operations (United Financial).

Johnson admitted in his plea agreement that in 1987 and 1988 [that] he participated in schemes to manipulate and conduct fraudulent transactions in the securities of United Financial and Corporate Quest. Johnson also admitted that he and co-conspirators conducted prearranged trades through controlled and nominee accounts and paid for the trades in Corporate Quest’s securities with worthless checks totaling approximately $313,000. As a result of the co-conspirators’ activities, four brokerage firms lost approximately $262,000.

Johnson is scheduled to be sentenced on September 21, 1992 at 9:00 a.m. [U.S. v. Otis C. Johnson III, Criminal Action No. 92-CR-181, U.S.D.C. Colo. (LR-13345)].

• NSA/CIA/USAF Lieutenant General Otis C. Johnson III did NOT do jail time.

• The penalty for wire fraud in the United States is TWENTY YEARS PER COUNT.

Notes and References:
(1): ‘Thirty Days: Hitler’s Thirty Days to Power: January 1933’, Henry Ashby Turner, Jr., Addison-Wesley Publishing Company, New York etc., 1996, ISBN 0-201-40714-0, page 164.

(2): ‘Coup d’état by installments’, precisely accurate characterization of pan-German power-grabbing methodology. Konrad Heiden, Der Fuehrer, Boston, MA, 1944, page 597.

(3): ‘Thieves’ World: The Threat of the New Global Network of Organized Crime’, Claire Sterling, Simon and Schuster, new York, ISBN 0-671-74997-8, 1994.

(4): Original SEC documents researched and supplied pro bono publico by Tim White.

• Note: The discredited controlled disinformation operative Heneghan has reponded to the foregoing exposure with further lies, publishing a deliberately distorted picture of this Editor and stating, sensibly, that he won’t be responding to what we have published. Very sensible of him.

Subsequent Add-Ons and Updates:

PENNSYLVANIA FRAUD THAT WE EXPOSED BLEW UP IN THEIR FACES
We now understand that as a direct result of our exposure of the Pennsylvania Department of State’s connivance in the deliberate, fraudulent insertion of the Mafioso Salvatore R. DeFrancesco as ‘Secretary’ by the PA Department of State Corporation Bureau on 8th March 2010, and following forceful intervention by Michael C. Cottrell, B.A., M.S. with the complacent, arrogant Pennsylvania Department of State authorities resulting in the removal of the Mafioso’s name from Pennsylvania Investments Inc.’s corporate screen by 2.10pm on 10th March, [see ‘The Aborted Pennsylvania Fraud of 8 March 2010’, report of 19th March: Archive], that officially sponsored attempt to divert payout funds due to Mr Cottrell’s firm and to steal the $6.2 trillion loan money, collapsed.

• Instead, the reverberations of this criminal outrage presided over by the official kleptocracy spread all the way up the food chain, blowing up in the faces of Vice President Joseph Biden and his predecessor, Richard B. Cheney.

That operation represented a brazen attempt by the organised crime elements both outside and within the craven US Administration to divert the funds, just as the continued slitherings of the Wanta ‘snake’ betray an intent somehow to reactivate that discredited conduit. We now know that Wanta’s AmeriTrust Groupe, Inc. operation actually represented a scheme to procure the transfer of funds into the hands of the Bush Crime Syndicate, whom Mr Wanta serves, as explained in the aforementioned forensic report. Recently, one or more checks drawn on AmeriTrust Groupe, Inc., have surfaced, and a recipient of such a check recently was told to go straight to the police.

We further understand that our exposure in the current report of Wanta’s Fraud in the Inducement under duress of this Editor to steal his $35,000 loan money, facilitated by the complicit CIA lawyer Steven Goodwin, has also severely curtailed the potential for any ‘Wanta route’ to be activated. All holes that these serpents thought they could slither through, are blocked.

• However the Pennsylvania Department of State Corporation Bureau, having banked Mr Cottrell’s required $70 filing fee accompanied by the proper PA official form requiring the individual display of his corporate offices, so as to preclude any further demented attempt to steal funds by this route, continues its intransigent and complicit failure to make the necessary formal amendments to his corporation’s corporate screen with the PA Department of State Corporation Bureau.

Such intransigence simply tightens the noose round the necks of every snake involved in this attempted scam, from Vice President Biden and Edward G. Rendell, Governor of Pennsylvania, all the way down to the named officials within the PA structures who presided over and facilitated this intended giga-theft. Instead of putting the matter right, which would take five minutes, the arrogant apparatchiks concerned prefer to leave the needed correction unattended to, no doubt hoping we would ‘go away’. This is a reminder that we haven’t gone away and that this website is capable of shaking the ground beneath the soles of the feet of the Vice President of the United States and the Governor of Pennsylvania any time they like.

BRITISH ELECTION: EXIT GORDON BROWN VIA BIGOTGATE
The expedition of the Prime Ministerial caravan to Rochdale on 27th April so that Gordon Brown could be televised for electoral purposes meeting some ‘real people’ (as opposed to the surreal people in Westminster and Downing Street) concluded predictably in disaster for the beleaguered Prime Minister, who may have forgotten that those people ‘oop nerth’ are blunt, speak their mind, and are not to be messed with. Once he’d climbed back into the assumed safety of his limo, Brown forgot the standard dirty trick, often used by intelligence services (especially in the United States), of ensuring that a lapel microphone stays live after a televised encounter.

Gordon Brown’s characterisation of the Rochdale lady as ‘a sort of bigoted woman’ resulted in the airwaves at home and abroad being jammed with the resulting tape, while relieving tired and jaded journalists of having to talk about the boring minutiae of British politics for a while.

As one pundit put it, he wouldn’t have liked to be the upholstery in the limo when Brown found out about his blunder. However Andrew Rawnsley, author of a book called ‘The End of the Party’ which contains graphic details of Brown’s tantrums (cups and mobile phones being chucked across the room, aides being grabbed by the lapel, etc. etc.), has pointed out that the catastrophe could have been much worse. When Brown gets angry, i.e. for much of the time, most of his vocabulary turns navy blue. One is reminded of the fact that the efficiently organised ancient Jerusalem had a Dung Gate. Gordon will be exiting the New Jerusalem which never materialised under his failed tenure, let alone that of his duplicitous predecessor, via Bigotgate.

• Gordon Brown’s behaviour while holding the highest office reconfirms that life at the highest level is hell on earth. Perceptive north American correspondents have pointed out to us that they have caught occasional glimpses of FEAR in the faces of both Barack Obama and Canadian Prime Minister Harper. This reflects the reality that these people are controlled, live in an environment of implied threats and fear, and have discovered that having lusted for so long for what they thought was supreme power, the chalice they have been handed isn’t just poisoned: it reeks as well.

• Finally, note that the Number of the draft Dodd Senate Bill evaluated below, viz: 3217, devolves, surprise, surprise and yet again surprise, to the ‘Black’ esoteric, geomasonic numerology number THIRTEEN: 3 + 2 + 1 +7 = 13. Now WHY would that be the case?

MEANWHILE… THE ESSENCE OF THE CRISIS
The central issue facing the whole world is as follows. ALL these securitisation transactions and derivatives marketing operations are FRAUDULENT, and they are ALL illegal both in the US and in the Common Law jurisdictions. So what ALL PARTICIPANTS, whether institutional, hedge funds or investors, fear is that THE WHOLE LOT, BEING FRAUDULENT AND ILLEGAL, COULD UNRAVEL.

Accordingly, the crisis revolves around this huge elephant: how to avoid such an outcome while cleaning up the mess at the same time. The US Treasury’s approach is to continue the carousel below the radar, i.e. covered by Treasury confidentiality, a course which WILL indeed lead to a Weimar-style hyperinflationary collapse.

There is only ONE sound solution, as has been the case all along: the Dollar Refunding operation, ORIGINATED in the private sector, and in London where the US authorities cannot easily sabotage the transactions, which will deliver massive ON-BALANCE SHEET TAX ACCRUALS onto the books of the US Treasury, whether it likes it or not.

The Dollar Refunding operation based on the sovereign loan funds, being ORIGINATED in the private sector, is NOT matched by corresponding debt on the other side of the balance sheet.

By contrast, the US Treasury’s intent is to try to handle the refunding itself, which WOULD create massive offsetting official debt on the other side of the balance sheet. If on-balance sheet tax of, say, 35%, is paid, that leaves 65% of each transaction being added to the official debt, which is CRAZY, and WILL lead to a Weimar-style hyperinflationary currency degradation and collapse.

UPDATE, 29TH APRIL 2010:
FINANCIAL STRESS IN EUROPE: SO BUSH CRIME FAMILY, SOROS AND CARLYLE DEMAND $1.3 TRILLION CORRUPT PAYMENT AS THEIR PRICE FOR CEASING TO IMPEDE THE SETTLEMENTS
As interest rates on two-year Greek bonds soared to 38% on 28th April 2010 at one point, continued intransigence over the Settlements [see this report] was now being more specifically linked to the outrageous and corrupt demand of the still hyperactive Bush Crime Syndicate, George Soros and the Carlyle Group [see below] for a total corrupt pay-off of $1.3 trillion (an aggregate previously trailered by this service as being targeted for stealing, as we then thought, by the criminal CIA: and it may well be the intention for the criminal enterprise CIA to be the channel directing these funds into the hands of the corrupt parties involved).

Quite apart from the disgusting arrogance of these brazen parties in assuming that they, like the US criminal enterprise banks, can blackmail the forces of financial restitution with such a demand, what sticks even more violently in the Editor’s gullet is the flaccid, corrupt, anarchic failure of US law enforcement, Gold Badges et al., to refuse point blank to accommodate such demands, and to
have these financial criminals arrested.

• And for such a gross theft even to be mentioned as a possibility at a time when European countries are going to the wall as a direct consequence of having stupidly accumulated trash, worthless ‘derivatives’ casino ‘assets’ as counterparties to the US official kleptocrats, gives a whole new meaning to the phrase ‘political obscenity’.

Although there is every prospect that, over time, world class criminals like George H. W. Bush Sr., George Bush Jr., Tony Blair et al. will receive their due rewards here on earth rather than just in the underworld to come (with the timebomb of George Bush Sr.’s complicity in the assassination of President Kennedy gathering more and more explosive momentum), the continued failure of US law enforcement to block all further intransigence by these serpents and to have them arrested, like Dr Greenspan and the late Lord George, undermines all residual confidence in relevant US law enforcement personnel. These people have consistently failed to do their job properly. The other day we found out that Greenspan, who has long been indicted by a Grand Jury, was continuing to behave as though he could do and say as he liked, and was not subject to the Rule of Law.

• The Editor is repeatedly told that the relevant law enforcement ‘have to obey orders’, begging the issue that if an order involves illegality, then it is by definition illegal and must be disobeyed.

In case this point isn’t clear, under the Misprision of Felony Statute, it is INCUMBENT upon anyone with knowledge of wrongdoing to take the appropriate steps in accordance with the statute [see text repeated with almost every one of these reports]. That includes operatives AT EVERY LEVEL who have information about wrongdoing that they haven’t reported to the appropriate authorities. It also includes WIVES and FORMER WIVES of such operatives.

When we heard, yet again, that $1.3 trillion of the Settlement funds was to be diverted to the Bush Crime Syndicate, Soros, Carlyle et al., we wondered; WHAT ARE WE SUPPOSED TO DO WITH THIS INFORMATION? Bury it in order to ‘facilitate’ the Settlements? You must be joking. According to our current sense, it has been realised belatedly in certain quarters that the intended stealing of these funds at a time when Greece, Spain, Portugal and probably Britain and Ireland are going down the tubes, might just set off reverberations so lethal that yielding to the gross blackmail demands of the kleptocracy may be too risky, after all.

Certainly, if we do discover that $1.3 trillion has been diverted, as has been confirmed to us is the intention [see below], we shall see to it that this abomination is rammed down the throats of all concerned so that nobody involved in this crime will ever be able to forget how angry the British and American public can become when aroused.

The obscenity of EVEN CONTEMPLATING SUCH A CRIME at a time when the credit ratings of both Spain and Portugal have been downgraded (on 28th April 2010), following Standard and Poor’s consignment of Greek bonds to junk status, is more than your correspondent can take.

• All we can say at this stage is: JUST YOU TRY.

Other than that, the Settlements ‘news’ is not universally negative.

UPDATE: 28TH APRIL 2010: POST-IMF SPRING MEETINGS MELTDOWN
When it became clear that nothing substantive emerged from the IMF/World Bank Spring Meetings with regard to Greece, Standard and Poor’s slashed Greece’s credit rating to BB+, junk status, the first time this has occurred since the ill-advised EU Collective Currency arrangements, which we repeatedly warned against in successive articles in International Currency Review (1992-99), was established in order to fulfil the pan-German hegemony/control objective codified in the 1942 Nazi compendium Europaische Wirtschaftsgemeinschaft (European Economic Community), the Chapter headings of which were replicated almost verbatim in the 1992 Maastricht Treaty.

The immediate consequence was to drive yields on Greek bonds up beyond 14%, compared with 9.73% on Monday in Europe, amid a cascading collapse of confidence which could tear Economic and Monetary Union (EMU) apart, destroy the Euro, and bring about a collapse in France and Germany, both of which hold vast stores of completely worthless derivatives ‘assets’.

Meanwhile the collapse of confidence and the disintegration of the bond markets fed on itself, affecting every relevant financial market worldwide, as the real pernicious consequences of the open-ended Fraudulent Finance espoused by the United States and driven by the Bush Crime Syndicate, finally hit home. The fact that we have been talking about this since our report dated 2nd September 2005 means that all concerned have had ample time to put matters right: but, as usual, everything has been left too late. And now it’s almost certainly FAR TOO LATE.

At 12:00 hrs UK time on 28th April we learned that lawyers for Bush Sr. and Bush Jr. are in the Far East trying to tie the hands of the Chinese, but that Chinese officials, having absorbed the present report perhaps, are on the verge of putting the boot into the venally corrupt American authorities, by selling Treasuries for starters.

As for the display of ‘Blankfeinism’* presented for televised public consumption inter alia by Lloyd Blankfein, the Goldman Sachs CEO, before Mr Levin’s Congressional Committee, Mr Blankfein’s attempt to appear like a simpleton did not wash with his fellow Jew, a man of considerable integrity who doesn’t like being messed with and having his intelligence insulted.

Since the SEC filed its complaint [see Archive: 18th April 2010], the bell tolls for Goldman Sachs, which thinks it controls the UK financial system inter alia via its grip on Lloyds of London, and through that conduit, on the British Monarchical Power.

But Goldman has been FOUND OUT marketing dud assets, viz: derivative products based upon nothing other than a reference to an asset that does not underpin the derivative at all, which is OUTRIGHT RACKETEERING AND FRAUD, especially in the United States where ALL securitisation is illegal, as is also the case in other Common Law jurisdications [see our reports: ‘Securitisation is 100% illegal under US legislation’: Archive, 10 March 2010; and ‘Definitive illegality of securitisation is reconfirmed’: Archive, 18 April 2010].

THE DOLLAR REFUNDING MUST ORIGINATE IN THE PRIVATE SECTOR
In order for the world to stand any chance of avoiding an irretrievable meltdown which will lead to the worst possible outcomes (outlined below):

• The transparent, on-the-books, fully taxable Dollar Refunding Programme agreed upon four years ago by the Group of Seven (G-7) financial powers using the large sovereign loan funds provided pro bono humanitas by the British Monarchical Power must proceed because the Refunding must be ORIGINATED in the private sector. (No official DEBT on the other side of the balance sheet).

• The structure for accomplishing this has been ready in London since 29th May 2009 and can proceed without any input from the US authorities who are terrified of ‘losing control’ and have been manoeuvring to ORIGINATE the Refunding from within the US Treasury.

• That would be catastrophic, because it presupposes that further open-ended and unnecessary DEBT is accumulated on the other side of the balance sheet, to offset the ‘assets’ made available by the Treasury for the false refunding purpose.

• By contrast, the private sector Dollar Refunding using the sovereign loan funds GENERATES NO DEBT WHATSOEVER but DELIVERS WINDFALL TAX ACCRUALS. As the Refunding will take place in London, the taxes payable to the British and American Governments will be delivered to the UK Treasury, with the US taxes payable by the British Treasury then forwarded on to the US Treasury, whether it likes it or not, as provided for under the Bretton Woods arrangements.

This is the simple, straightforward, transparent, honest, on-the-books, long since AGREED-UPON solution which the Bush Crime Syndicate and its compromised adherents within the US structures, have been resisting, in order to RETAIN CONTROL in the full knowledge that the route they have chosen will lead to hyperinflationary disaster as described in the report below.

Finally, we understand that (possibly, again, following publication of this report), US legislators are ALREADY having second thoughts about the folly of proceeding with the Dodd Senate Bill (with the Democrats facing wipe-out at the forthcoming mid-term elections), while we are also advised that Dr Ben Bernanke, the Chairman of the Federal Reserve, has suddenly twigged at last that if he’s not careful, he may preside over the American Weimar Republic. Apparently he has realised that a colossal inflation is in the works anyway, and is starting to come to his senses. But don’t bank on it.

• ‘Blankfeinism’: Play-acting by a perpetrator of financial crimes involving hand-wringing, diversion, obfuscation and invoking spurious arguments in refutation of the perpetrator’s egregious ongoing breaches of the Rule of Law which are crystal clear to everyone except the likes of Lloyd Blankfein.

NOTICES:
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This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

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The familiar US proprietary Internet Security programs are by-products of US counterintelligence, and are intended NOT to solve your Internet security problems, but to spy on you and to report what you write about, to centralised US electronic facilities set up for the purpose. You can now BREAK FREE from this syndrome while at the same time helping us to MAINTAIN THE VERY HEAVY PRESSURE UPON THE CRIMINALISTS WE HAVE BEEN EXPOSING, by ordering this highest quality FOREIGN (i.e., non-US) INTERNET SECURITY SOLUTION that we have started advertising on this website. This offer has been developed in response to attacks we have suffered from the NSA nerds who appear to have a collective mental age of about five years, judging by their output.

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TEXT OF THE S.E.C.’S COMPLAINT AGAINST GOLDMAN SACHS

cropped-chrisstory

PROSPECTS FOR GOLDMAN ARE DEVASTATING AND COULD LEAD TO ITS COLLAPSE

Sunday 18 April 2010 17:57

• IMPLICATIONS OF THE S.E.C.’S CIVIL COMPLAINT AGAINST GOLDMAN SACHS & CO.

• THE S.E.C.’S PRESS RELEASE RE. ITS COMPLAINT AGAINST GOLDMAN SACHS

• TEXT OF THE S.E.C.’S CIVIL COMPLAINT AGAINST GOLDMAN SACHS & CO.

• READ WITH THE ‘SECURITISATION IS ILLEGAL’ REPORT: ALSO DATED 18TH APRIL 2010

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

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Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

• AS PREVIOUSLY ANNOUNCED, OUR LANDLINES REMAIN CLOSED BECAUSE OF UNLAWFUL HARASSMENT. WE CAN BE CONTACTED VIA EMAIL OR THE WEBSITE ‘CONTACT US’ FACILITY.

NEW REPORT STARTS HERE:

IMPLICATIONS OF THE S.E.C.’S CIVIL COMPLAINT AGAINST GOLDMAN SACHS & CO.
We publish below the text of the Complaint lodged by the Securities and Exchange Commission against Goldman Sachs and Co. and a Goldman employee, Fabrice Tourre, filed with the United States Court for the Southern District of New York, on Friday 16th April 2010. This is only the first devastating development which could lead to the collapse of this institution.

• Other entities that have been engaged in similar activities are cruising for a similar bruising.

It is important to note as follows:

(1): This case PRECISELY illustrates, in many exact parallels, the accuracy of the report also dated 18th April 2010 confirming that SECURITISATION IS ILLEGAL.

(2): Specifically, this complaint reveals an ongoing alleged pattern of Fraud in the Inducement, misrepresentation of fact, an intent to deceive targeted against domestic and foreign institutional investors, a conspiracy to procure profits through deception, mail fraud, wire fraud and a general environment of Fraudulent Finance, as specifically exposed for several years by this service.

(3): See in particular: International Currency Review, First Quarter 2009 [Volume 34, Number 2], on Systemic Fraudulent Finance and the de facto (illegitimate) legitimisation of financial corruption through the operation by racketeering money institutions specialising in Fraudulent Finance of sophisticated in Ponzi schemes; edited by your correspondent:

• Architecture of the Corrupt Money Machine:
The Legalisation of Financial Corruption: featuring: the Creation of Securitisation and Credit Default Swaps: Analysis by the US securities expert, Michael C. Cottrell, B.A., M.S.

• Description of the resulting derivative Financial Frauds and Scams, WITH FLOW CHARTS showing how it’s done: Analysis by the US securities expert, Michael C. Cottrell, B.A., M.S.

• Glossary of Exotic Derivatives Market Terminology compiled
by the US securities expert, Michael C. Cottrell, B.A., M.S.

With appendices.

(4): The Complaint has to deal with the material issues that presuppose a likely conviction, and so SIDESTEPS the central issue exposed by the ‘securitisation is illegal’ report, which is simply that THIS ACTIVITY IS ILLEGAL.

Paragraph 73 of the Complaint [see below] alleges that the defendants, ‘in connection with the purchase or sale of securities or securities-based swap agreements, by the use of means or instrumentalities of interstate commerce or of the mails, directly or indirectly (a) employed devices, schemes or artifices to defraud; (b) made untrue statements of material facts or omissions of material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) engaged in transactions, practices or courses of business which operated or would operate as a fraud or deceit upon persons’.

(5): A German bank based in Düsseldorf, IKB Deutsche lndustriebank AG (“IKB”), lost about $150 million as a result of this alleged scam. Altogether, investors in the liabilities of ABACUS are alleged to have lost more than $1 billion.

(6): A Civil case is in fact far more prospectively devastating than a criminal case (given that the SEC is dealing with institutions as well as one individual employee to start with), because:

• The case will be decided on the basis of the PREPONDERANCE OF EVIDENCE.

• Scope arises for R.I.C.O. actions providing for awards of three times damages.

• Following conviction, the victims can sue Goldman under R.I.C.O. (three times damages).

• Following conviction, the victims of the victims can sue the first layer of victims, Goldman and the other participants as appropriate under R.I.C.O. (three times damages).

• Individual Directors, executives, securities personnel and those involved in decision-making both within Goldman Sachs & Co. and at other involved institutions, can prospectively be charged individually and severally with fraud.

• The ultimate outcome is that Goldman could be in court for the next 20 years, except that, realistically, it will in all probability cease to exist.

(7): We were authoritatively advised on Saturday 17th April 2010 that this SEC Complaint against Goldman Sachs & Co. and a named Goldman employee was specifically triggered as a DIRECT consequence of the Complaint against the Securities and Exchange Commission and individually and severally against current and former SEC officials filed by the lawyers for the CMKX victims, Hodges and Associates, of Pasadena, CA, in January [see our report dated 9th January 2010] claiming $3.87 trillion following the floating of 2.25 trillion of phantom shares.

Service of that complaint was accepted by the SEC’s Office of General Counsel both on behalf of the SEC and of current officers, while former SEC officers accepted service and had to arrange their own legal representation.

THE S.E.C.’S PRESS RELEASE RE. ITS COMPLAINT AGAINST GOLDMAN SACHS
SEC Charges Goldman Sachs With Fraud in Structuring and Marketing
of CDO Tied to Subprime Mortgages

FOR IMMEDIATE RELEASE: 2010-59

Washington, D.C., April 16, 2010 — The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter.

Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.

“The product was new and complex but the deception and conflicts are old and simple”, said Robert Khuzami, Director of the Division of Enforcement. “Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party”.

Kenneth Lench, Chief of the SEC’s Structured and New Products Unit, added:

“The SEC continues to investigate the practices of investment banks and others involved in the securitization of complex financial products tied to the U.S. housing market as it was beginning to show signs of distress”.

The SEC alleges that one of the world’s largest hedge funds, Paulson & Co., paid Goldman Sachs
to structure a transaction in which Paulson & Co. could take short positions against mortgage securities chosen by Paulson & Co. based on a belief that the securities would experience credit events.

According to the SEC’s complaint, filed in U.S. District Court for the Southern District of New York, the marketing materials for the CDO known as ABACUS 2007-AC1 (ABACUS) all represented that the RMBS portfolio underlying the CDO was selected by ACA Management LLC (ACA), a third party with expertise in analyzing credit risk in RMBS.

The SEC alleges that undisclosed in the marketing materials and unbeknownst to investors, the Paulson & Co. hedge fund, which was poised to benefit if the RMBS defaulted, played a significant role in selecting which RMBS should make up the portfolio.

The SEC’s complaint alleges that after participating in the portfolio selection, Paulson & Co. effectively shorted the RMBS portfolio it helped select by entering into credit default swaps (CDS) with Goldman Sachs to buy protection on specific layers of the ABACUS capital structure. Given that financial short interest, Paulson & Company had an economic incentive to select RMBS that it expected to experience credit events in the near future. Goldman Sachs did not disclose Paulson & Co.’s short position or its role in the collateral selection process in the term sheet, flip book, offering memorandum, or other marketing materials provided to investors.

The SEC alleges that Goldman Sachs Vice President Fabrice Tourre was principally responsible for ABACUS 2007-AC1. Mr Tourre structured the transaction, prepared the marketing materials, and communicated directly with investors. Tourre allegedly knew of Paulson & Co.’s undisclosed short interest and role in the collateral selection process. In addition, he misled ACA into believing that Paulson & Co. invested approximately $200 million in the equity of ABACUS, indicating that Paulson & Co.’s interests in the collateral selection process were closely aligned with ACA’s interests. In reality, however, their interests were sharply conflicting.

According to the SEC’s complaint, the deal closed on April 26, 2007, and Paulson & Co. paid Goldman Sachs approximately $15 million for structuring and marketing ABACUS. By Oct. 24, 2007, 83 percent of the RMBS in the ABACUS portfolio had been downgraded and 17 percent were on negative watch. By Jan. 29, 2008, 99 percent of the portfolio had been downgraded.

Investors in the liabilities of ABACUS are alleged to have lost more than $1 billion.

The SEC’s complaint charges Goldman Sachs and Tourre with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The Commission seeks injunctive relief, disgorgement of profits, prejudgment interest, and financial penalties.

For more information about this enforcement action, contact:
Lorin L. Reisner
Deputy Director, SEC Enforcement Division
(202) 551-4787.

Kenneth R. Lench
Chief, Structured and New Products Unit, SEC Enforcement Division
(202) 551-4938.

Reid A. Muoio
Deputy Chief, Structured and New Products Unit, SEC Enforcement Division
(202) 551-4488

http://www.sec.gov/news/press/2010/2010-59.htm

TEXT OF THE S.E.C.’S CIVIL COMPLAINT AGAINST GOLDMAN SACHS & CO.:

UNITED STATES COURT
SOUTHERN DISTRICT OF NEW YORK

SECURITIES AND EXCHANGE COMMISSION, Plaintiff

v.

GOLDMAN SACHS & CO and FABRICE TOURRE, Defendants.

COMPLAINT
[Securities Fraud]

10-CV-3229

ECF CASE

Jury Trial Demanded

Plaintiff, the United States Securities and Exchange Commission (“Commission”) alleges as follows against the defendants named above.

OVERVIEW

1. The Commission brings this securities fraud action against Goldman, Sachs & Co. (“GS&Co”) and a GS&Co employee, Frabrice Tourre (“Tourre”), for making materially misleading statements and omissions in connection with a synthetic collateralized debt obligation (“CDO”) GS&Co structured and marketed to investors.

This synthetic CDO, ABACUS 2007-AC1, was tied to the performance of subprime residential mortgage-backed securities (“RMBS”) and was structured and marketed by GS&Co in early 2007 when the United States housing market and related securities were beginning to show signs of distress. Synthetic CDOs like ABACUS 2007-AC1 contributed to the recent financial crisis by magnifying losses associated with the downturn in the United States housing market.

2. GS&Co marketing materials for ABACUS 2007-AC1 – including the term sheet, flip book and offering memorandum for the CDO – all represented that the reference portfolio of residential mortgage-backed securitiesunderlying the CDO was selected by ACA Management LLC (“AC.A.”), a third-party with experience analyzing credit risk in RMBS. Undisclosed in the marketing materials and unbeknownst to investors, a large hedge fund, Paulson & Co. Inc. (“Paulson”), with economic interests directly adverse to investors in the ABACUS 2007-AC1 CDO, played a significant role in the portfolio selection process.

After participating in the selection of the reference portfolio, Paulson effectively shorted the residential mortgage-backed securities portfolio it helped select by entering into credit default swaps (“CDS”) with GS&Co to buy protection on specific layers of the ABACUS 2007-AC1 capital structure. Given its financial short interest, Paulson had an economic incentive to choose RMBS that it expected to experience credit events in the near future, GS&Co did not disclose Paulson’s adverse economic interests or its role in the portfolio selection process in the term sheet, flip book, offering memorandum or other marketing materials provided to investors.

3. In sum, GS&Co arranged a transaction at Paulson’s request in which Paulson heavily influenced the selection of the portfolio to suit its economic interests, but failed to disclose to investors, as part of the description of the portfolio selection process contained in the marketing materials used to promote the transaction, Paulson’s role in the portfolio selection process or its adverse economic interests.

4. Tourre was principally responsible for ABACUS 2007-AC1. Tourre devised the transaction, prepared the marketing materials and communicated directly with investors. Tourre knew of Paulson’s undisclosed short interest and its role in the collateral selection process. Tourre also misled ACA into believing that Paulson invested approximately $200 million in the equity of ABACUS 2007-AC1 (a long position) and, accordingly, that Paulson’s interests in the collateral section process were aligned with ACA’s when in reality Paulson’s interests were sharply conflicting.

5. The deal closed on April 26,2007. Paulson paid GS&Co approximately $15 million for structuring and marketing ABACUS 2007-AC1. By October 24, 2007, 83% of the RMBS in the ABACUS 2007-AC1 portfolio had been downgraded and 17% were on negative watch. By January 29, 2008, 99% of the portfolio had been downgraded. As a result, investors in the ABACUS 2007-AC1 CDO lost over $l billion. Paulson’s opposite CDS positions yielded
a profit of approximately $l billion for Paulson.

6. By engaging in the misconduct described herein, GS&Co and Tourre directly or indirectly engaged in transactions, acts, practices and a course of business that violated Section 17(a) of
the Securities Act of l933, 15 U.S.C. §77q(a) (“the Securities Act”), Section l0(b) of the Securities Exchange Act of 1934, 15 U.S.C. §78j(b) (“the Exchange Act”) and Exchange Act Rule l0b-5, 17 C.F.R. §240.10b-5. The Commission seeks injunctive relief, disgorgement of profits, prejudgment interest, civil penalties and other appropriate and necessary equitable relief from both defendants.

JURISDICTION AND VENUE

7. This Court has jurisdiction over this action pursuant to Sections 2l(d), 21(e), and 27 of the Exchange Act [l5 U.S.C. §§ 78u(d), 78u(e), and 78aa]. Each defendant directly or indirectly, made use of the means or instruments of interstate commerce, or of the mails, or the facilities of a national securities exchange in connection with the transactions, acts, practices, and courses of business alleged herein. Certain of the acts, practices, and courses of conduct constituting the violations of law alleged herein occurred within this judicial district.

DEFENDANTS

8. Goldman, Sachs & Co. is the principal United States broker-dealer of The Goldman Sachs Group, Inc., a global investment banking, securities and investment management firm headquartered in New York City. GS&Co structured and marketed ABACUS 2OO7-AC1.

9. Fabrice Tourre, age 31, is a registered representative with GS&Co. Tourre was the GS&Co employee principally responsible for the structuring and marketing of ABACUS 2007-AC1, Tourre worked as a Vice President on the structured product correlation trading desk at GS&Co headquarters in New York City during the relevant period.

Tourre presently works in London as an Executive Director of Goldman Sachs lnternational.

FACTS

A. GS&CO’S CORRELATTON TRADING DESK

10. GS&Co’s structured product correlation hading desk was created in and around late 2004/early 2005. Among the services it provided was the structuring and marketing of a series of synthetic CDOs called “ABACUS” whose performance was tied to RMBS. GS&Co sought to protect and to expand this profitable franchise in a competitive market throughout the relevant period. According to an internal GS&Co memorandum to the Goldman Sachs

Mortgage Capital Committee (“MCC”) dated March 12, 2007, the “ability to structure and execute complicated transactions to meet multiple clients’ needs and objectives is key for our franchise”, and “[e]xecuting this transaction [ABACUS 2007-AC1] and others like it helps position Goldman to compete more aggressively in the growing market for synthetics written on structured products”.

B. PAULSON’S INVESTMENT STRATEGY

11. Paulson & Co. Inc. (“Paulson”) is a hedge fund founded in 1994. Beginning in 2006, Paulson created two funds, known as the Paulson Credit Opportunity Funds, which took a bearish view on subprime mortgage loans by buying protection through CDS on various debt securities.

A CDS is an over-the-counter derivative contract under which a protection buyer makes periodic premium payments and the protection seller makes a contingent payment if a reference obligation experiences a credit event.

12. RMBS are securities backed by residential mortgages. Investors receive payments out of the interest and principal on the underlying mortgages. Paulson developed an investment strategy based upon the belief that, for a variety of reasons, certain mid-and-subprime RMBS rated “Triple B”, meaning bonds rated “BBB” by S&P or “Baa2” by Moody’s, would experience credit events.

The Triple B tranche is the lowest investment grade RMBS and, after equity, the first part of the capital structure to experience losses associated with a deterioration of the underlying mortgage loan portfolio.

13. CDOs are debt securities collateralized by debt obligations including RMBS. These securities are packaged and generally held by a special purpose vehicle (“SPV”) that issues notes entitling their holders to payments derived from the underlying assets. In a synthetic CDO, the SPV does not actually own a portfolio of fixed income assets, but rather enters into CDSs that reference the performance of a portfolio (the SPV does hold some collateral securities separate from the reference portfolio that it uses to make payment obligations).

14. Paulson came to believe that synthetic CDOs whose reference assets consisted of certain Triple B-rated mid-and-subprime RMBS would experience significant losses and, under certain circumstances, even the more senior AAA-rated tranches of these so-called “mezzanine” CDOs would become worthless.

C. GS&CO AND PAULSON DISCUSS A PROPOSED TRANSACTION

15. Paulson performed an analysis of recent-vintage Triple B-rated RMBS and identified various bonds it expected to experience credit events. Paulson then asked GS&Co to help it to purchase protection, through the use of CDS, on the RMBS it had adversely selected, meaning chosen in the belief that the bonds would experience credit events’

16. Paulson discussed with GS&Co possible transactions in which counterparties to its short positions might be found. Among the transactions considered were synthetic CDOs whose performance was tied to Triple B-rated RMBS.

Paulson discussed with GS&Co the creation of a CDO that would allow Paulson to participate in selecting a portfolio of reference obligations and then effectively short the RMBS portfolio it helped select by entering into CDS with GS&Co to buy protection on specific layers of the synthetic CDO’s capital structure.

17. A Paulson employee explained the investment opportunity as of January 2007 as follows:

“It is true that the market is not pricing the subprime RMBS wipeout scenario.

In my opinion this situation is due to the fact that rating agencies, CDO managers and underwriters have all the incentives to keep the game going, while ‘real money’ investors have neither the analytical tools nor the institutional framework to take action before the losses that one could
anticipate based [on] the ‘news’ available everywhere are actually realized”.

18. At the same time, GS&Co recognized that market conditions were presenting challenges to the successful marketing of CDO transactions backed by mortgage-related securities.

For example, portions of an email in French and English sent by Tourre to a friend on January 23, 2007 stated, in English translation where applicable:

‘More and more leverage in the system, The whole building is about to collapse anytime now. Only potential survivor, the fabulous Fab[rice Tourre]… standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!”

Similarly, an email on February 11, 2OO7 to Tourre from the head of the GS&Co shuctured product correlation trading desk stated in part, “the CDO biz is dead we don’t have a lot of time Ieft”.

D. INTRODUCTION OF ACA TO THE PROPOSED TRANSACTION

19. GS&Co and Tourre knew that it would be difficult, if not impossible, to place the liabilities of a synthetic CDO if they disclosed to investors that a short investor, such as Paulson, played a significant role in the collateral selection process.

By contrast, they knew that the identification of an experienced and independent third-party collateral manager as having selected the portfolio would facilitate the placement of the CDO liabilities in a market that was beginning to show signs of distress.

20. GS&Co also knew that at least one significant potential investor, IKB Deutsche lndustriebank AG (“IKB”), was unlikely to invest in the liabilities of a CDO that did not utilize a collateral manager to analyze and select the reference portfolio.

21. GS&Co therefore sought a collateral manager to play a role in the transaction proposed by Paulson. Contemporaneous internal correspondence reflects that GS&Co recognized that not every collateral manager would “agree to the type of names [of RMBS] Paulson want[s] to use” and put its “name at risk…on a weak quality portfolio”.

22. In or about January 2007, GS&Co approached ACA and proposed that it serve as the “Portfolio Selection Agent” for a CDO transaction sponsored by Paulson. ACA previously had constructed and managed numerous CDOs for a fee.

As of December 31, 2006, ACA had closed on 22 CDO transactions with underlying portfolios consisting of $15.7 billion of assets.

23. Internal GS&Co communications emphasized the advantages from a marketing perspective of having ACA associated with the transaction. For example, an internal email from Tourre dated February 7,20A7 , stated:

“One thing that we need to make sure ACA understands is that we want their name on this transaction. This is a transaction for which they are acting as portfolio selection agent, this will be important that we can use ACA’s branding to help distribute the bonds”.

24. Likewise, an internal GS&Co memorandum to the Goldman Sachs MCC dated March 12, 2007 described the marketing advantages of ACA’s “brand-name” and “credibility”:

“We expect the strong brand-name of ACA as well as our market-leading position in synthetic CDOs of structured products to result in a successful offering.”

“We expect that the role of ACA as Portfolio Selection Agent will broaden the investor base for this and future ABACUS offerings. We intend to target suitable structured product investors who have previously participated in ACA-managed cashflow CDO transactions or who have previously participated in prior ABACUS transactions. We expect to leverage ACA’s credibility and franchise to help distribute this Transaction”.

E. PAULSON’S PARTICIPATION IN THE COLLATERAL SELECTION PROCESS

25. In late 2006 and early 2407, Paulson performed an analysis of recent-vintage Triple B RMBS and identified over 100 bonds it expected to experience credit events in the near future.

Paulson’s selection criteria favored RMBS that included a high percentage of adjustable rate mortgages, relatively low borrower FICO scores, and a high concentration of mortgages in states like Arizona, California, Florida and Nevada that had recently experienced high rates of home price appreciation. Paulson informed GS&Co that it wanted the reference portfolio for the contemplated transaction to include the RMBS it identified or bonds with similar characteristics.

26. On January 8, 2007, Tourre attended a meeting with representatives from Paulson and ACA at Paulson’s offices in New York City to discuss the proposed transaction.

27. On January 9, 2A07, GS&Co sent an email to ACA with the subject line, “Paulson Portfolio”. Attached to the email was a list of 123 2006 RMBS rated Baa2. On January 9, 20O7, ACA performed an “overlap analysis” and determined that it previously had purchased 62 of the 123 RMBS on Paulson’s list at the same or lower ratings.

28. On January 9, 2007, GS&Co informed ACA that Fabrice Tourre was “very excited by the initial portfolio feedback”.

29. On January 10, 2007, Tourre sent an email to ACA with the subject line, “Transaction Summary”. The text of Tourre’s email began: “we wanted to summarize ACA’s proposed role as ‘Portfolio Selection Agent’ for the transaction that would be sponsored by Paulson & Co. (the ‘Transaction Sponsor’)”. The email continued in relevant part, “[s]tarting portfolio would be ideally what the Transaction Sponsor shared, but there is flexibility around the names”.

30. On January 22, 2007, ACA sent an email to Tourre and others at GS&Co with the subject line, “Paulson Portfolio l-22-10.x1s”. The text of the email began: “Attached please find a worksheet with 86 sub-prime mortgage positions that we would recommend taking exposure to synthetically. Of the 123 names that were originally submitted to us for review, we have included only 55”.

31. On January 27, 2007, ACA met with a Paulson representative in Jackson Hole, Wyoming, and they discussed the proposed transaction and reference portfolio. The next day, on January 28, 2007, ACA summarized the meeting in an email to Tourre. Tourre responded via email later that day: “This is confirming my initial impression that [Paulson] wanted to proceed with you subject to agreement on portfolio and compensation structure”.

32. On February 2, 2007, Paulson, Tourre and ACA met at ACA’s offices in New York City to discuss the reference portfolio. Unbeknownst to ACA at the time, Paulson intended to effectively short the RMBS portfolio it helped select by entering into CDS with GS&Co to buy protection on specific layers of the synthetic CDO’s capital structure. Tourre and GS&Co, of course, were fully aware that Paulson’s economic interests with respect to the quality of the reference portfolio were directly adverse to CDO investors. During the meeting, Tourre sent an email to another GS&Co employee stating: “I am at this ACA Paulson meeting, this is surreal”.

Later the same day, ACA emailed Paulson, Tourre, and others at GS&Co a list of 82 RMBS on which Paulson and ACA concurred, plus a list of 2l “replacement” RMBS. ACA sought Paulson’s approval of the revised list, asking: “Let rne know if these work for you at the Baa2 level”.

33. On February 5, 2007, Paulson sent an email to ACA, with a copy to Tourre, deleting eight RMBS recommended by ACA, leaving the rest, and stating that Tourre agreed that 92 bonds were a sufficient portfolio,

34. On February 5, 2007, an internal ACA email asked: “Attached is the revised portfolio that Paulson would like us to commit to – all names are at the Baa2 level. The final portfolio will have between 80 and these 92 names. Are ‘we’ ok to say yes on this portfolio?”

The response was: “Looks good to me. Did [Paulson] give a reason why they kicked out all
the Wells [Fargo] deals?” Wells Fargo was generally perceived as one of the higher-quality subprime loan originators.

35. On or about February 26, 2007, after further discussion, Paulson and ACA came to an agreement on a reference portfolio of 90 RMBS for ABACUS 2007-AC1 .

F. GS&CO MISLED INVESTORS BY REPRESENTING THAT ACA
SELECTED THE PORTFOLIO WTTHOUT DISCLOSING PAULSON’S
SIGNIFICANT ROLE IN DETERMINING THE PORTFOLIO AND ITS
ADVERSE ECONOMIC INTERESTS

36. GS&Co’s marketing materials for ABACUS 2007-AC1 were false and misleading because they represented that ACA selected the reference portfolio while omitting any mention that Paulson, a party with economic interests adverse to CDO investors, played a significant role in the selection of the reference portfolio.

37. For example, a 9-page term sheet for ABACUS 2007-AC1 finalized by GS&Co on or about February 26, 2007, described ACA as the “Portfolio Selection Agent” and stated in bold print at the top of the first page that the reference portfolio of RMBS bad been “selected by ACA”.

This document contained no mention of Paulson, its economic interests in the transaction, or its role in selecting the reference portfolio.

38. Similarly, a 65-page flip book for ABACUS 2007-AC1 finalized by GS&Co on or about February 26, 2007 represented on its cover page that the reference portfolio of RMBS had been “selected by ACA Management, LLC”. The flip book included a 28-page overview of ACA describing its business strategy, senior management team, investment philosophy, expertise, hack record and credit selection process, together with a 7-page section of biographical information on ACA officers and employees. Investors were assured that the party selecting the portfolio had an “alignment of economic interest” with investors. This document contained no mention of Paulson, its economic interests in the transaction, or its role in selecting the reference portfolio.

39. Tourre had primary responsibility for preparing the term sheet and flip book.

40. The Goldman Sachs MCC, which included senior-level management of GS&Co, approved the ABACUS 2007-AC1 on or about March 12, 2007. GS&Co expected to earn between $15-and-$20 million for structuring and marketing ABACUS 2007-AC1.

41. On or about April 26, 2007, GS&Co finalized a 178-page offering memorandum for ABACUS 2007-AC1. The cover page of the offering memorandum included a description of ACA as “Portfolio Selection Agent”. The Transaction Overview, Summary and Portfolio Selection Agent sections of the memorandum all represented that the reference portfolio of RMBS had been selected by ACA. This document contained no mention of Paulson, its economic interests in the transaction, or its role in selecting the reference portfolio.

42. Tourre reviewed at least the Summary section of the offering
memorandum before it was sent to potential investors.

43. Although the marketing materials for ABACUS 2007-AC1 made no mention of Paulson or of its role in the transaction, internal GS&Co communications clearly identified Paulson, its economic interests, and its role in the transaction. For example, the March 12, 2007 MCC memorandum describing the transaction stated: “Goldman is effectively working an order for Paulson to buy protection on specific layers of the [ABACUS 2007-] AC1 capital structure”.

G. GS&CO MISLED ACA INTO BELIEVING PAULSON WAS LONG EOUITY

44. GS&Co also misled ACA into believing that Paulson was investing in the equity of ABACUS 2007-AC1 and therefore shared a long interest with CDO investors. The equity tranche is at the bottom of the capital structure and is the first to experience losses associated with any deterioration in the performance of the underlying RMBS. Equity investors therefore have an economic interest in the successful performance of a reference RMBS portfolio. As of early 2007, ACA had participated in a number of CDO transactions involving hedge funds that invested in the equity tranche.

45. Had ACA been aware that Paulson was taking a short position against the CDO, ACA would have been reluctant to allow Paulson & Co. to occupy an influential role in the selection of the reference portfolio because it would present serious reputational risk to ACA, which was in effect endorsing the reference portfolio. ln fact, it is unlikely that ACA would have served as portfolio selection agent had it known that Paulson was taking a significant short position instead of a long equity stake in ABACUS 2007-AC1. Tourre and GSSCo were responsible for ACA’s misimpression that Paulson had a long position, rather than a short position, with respect to the CDO.

46. On January 8, 2007, Tourre attended a meeting with representatives from Paulson and ACA at Paulson’s offices in New York City to discuss the proposed transaction. Paulson & Co.’s economic interest was unclear to ACA, which sought further clarification from GS&Co. Later that day, ACA sent a GS&Co sales representative an email with the subject line “Paulson meeting” that read:

“I have no idea how it went – I wouldn’t say it went poorly, not at all, but I think it didn’t help that we didn’t know exactly how they [Paulson] want to participate in the space.

Can you get us some feedback?”

47. On January 10, 2007, Tourre emailed ACA a “Transaction Summary ”that included a description of Paulson as the “Transaction Sponsor” and referenced a “Contemplated Capital Structure” with a “[0]% – [9]%: pre-committed first loss” as part of the Paulson deal structure.

The description of this “[0]% – [9]%” tranche at the bottom of the capital structure was consistent with the description of an equity tranche and ACA reasonably believed it to be a reference to the equity tranche. In fact, GS&Co never intended to market to anyone a “[0]% – [9]%” first loss equity tranche in this transaction.

48. On January 12, 2007, Tourre spoke by telephone with ACA about the proposed transaction. Following that conversation, on January l4, 20O7, ACA sent an email to the GS&Co sales repres- entative raising questions about the proposed transaction and referring to Paulson’s equity interest. The email, which had the subject line “Call with Fabrice [Tourre] on Friday”, read in pertinent part:

“I certainly hope I didn’t come across too antagonistic on the call with Fabrice [Torre] last week but the structure looks difficult from a debt investor perspective. I can understand Paulson’s equity perspective but for us to put our name on something, we have to be sure that it enhances our reputation”.

49. On January 16, 2007, the GS&Co sales representative forwarded that email to Tourre. As of that date, Tourre knew, or was reckless in not knowing, that ACA had been misled into believing Paulson intended to invest in the equity of ABACUS 2007-AC1.

50. Based upon the January l0, 2007, “Transaction Summary” sent by Tourre, the January 12,2007 telephone call with Tourre and continuing communications with Tourre and others at GS&Co, ACA continued to believe through the course of the transaction that Paulson would be an equity investor in ABACUS 2007-AC1.

51. On February 12, 2007, ACA’s Commitments Committee approved the firm’s participation in ABACUS as portfolio selection agent. The written approval memorandum described Paulson’s role as follows: “The hedge fund equity investor wanted to invest in the 0%-9% tranche of a static mezzanine ABS CDO backed 100% by subprime residential mortgage securities”.

Handwritten notes from the meeting reflect discussion of “portfolio selection work
with the equity investor.”

H. ABACUS 2OO7-AC1 INVESTORS

I. IKB

52. IKB is a commercial bank headquartered in Düsseldorf. Germany. Historically, IKB specialized in lending to small and medium-sized companies. Beginning in and around 2002, IKB, for itself and as an advisor, was involved in the purchase of securitized assets referencing, or consisting of, consumer credit risk including RMBS CDOs backed by U.S. mid-and-subprime mortgages.

IKB’s former subsidiary, IKB Credit Asset Management, provided investment advisory services to various purchasing entities participating in a commercial paper conduit known as the “Rhineland programme conduit”.

53. The identity and experience of those involved in the selection of CDO portfolios was an important investment factor for IKB, In late 2006, IKB informed a GS&Co sales representative and Tourre that it was no longer comfortable investing in the liabilities of CDOs that did not utilize a collateral manager, meaning an independent third-party with knowledge of the U.S. housing market and expertise in analyzing RMBS. Tourre and GS&Co knew that ACA was a collateral manager likely to be acceptable to IKB.

54. In February, March and April 2007, GS&Co sent IKB copies of the ABACUS 2007-AC1 term sheet, flipbook and offering memorandum, all of which represented that the RMBS portfolio had been selected by ACA and omitted any reference to Paulson & Co., its role in selecting the reference portfolio and its adverse economic interests. Those representations and omissions were materially false and misleading because, unbeknownst to IKB, Paulson & Co. played a significant role in the collateral selection process and had financial interests in the transaction directly adverse to IKB. Neither GS&Co nor Tourre informed IKB of Paulson & Co.’s participation in the collateral selection process and its adverse economic interests.

55. The first written marketing materials for ABACUS 2007-AC1 were distributed on February 15, 2007, when GS&Co emailed a preliminary term sheet and reference portfolio to the GS&Co sales representative covering IKB. Tourre was aware these materials would be delivered to IKB.

56. On February 19, 2007, the GS&Co sales representative forwarded the marketing materials to IKB, explaining via email: “Attached are details of the ACA trade we spoke about with Fabrice [Toune] in which you thought the AAAs would be interesting”.

57. Tourre maintained direct and indirect contact with IKB in an effort to close the deal. This included a March 6, 2007 email to the GS&Co sales representative for IKB representing that:

“This is a portfolio selected by ACA . . .”. Tourre subsequently described the
portfolio in an intemal GS&Co email as having been “selected by ACA/Paulson”.

58. ABACUS 2007-AC1 closed on or about April 26, 2007. IKB bought $50 million worth of Class A-l notes at face value. The Class A-l Notes paid a variable interest rate equal to LIBOR plus 85 basis points and were rated Aaa by Moody’s Investors Services, Inc. (“Moody’s”) and AAA by Standard & Poor’s Ratings & Services (“S&P”). IKB bought $100 million worth of Class A-2 Notes at face value. The Class A-2 Notes paid a variable interest rate equal to LIBOR plus 110 basis points and were rated Aaa by Moody’s and AAA by S&P.

59. The fact that the portfolio had been selected by an independent third-party with experience and economic interests aligned with CDO investors was important to IKB. IKB would not have invested in the transaction had it known that Paulson played a significant role in the collateral selection process while intending to take a short position in ABACUS 2007- AC1. Among other things, the knowledge of Paulson’s role would have seriously undermined IKB’s confidence in the portfolio selection process and led senior IKB personnel to oppose the transaction.

60. Within months of closing, ABACUS 2007-AC1’s Class A-l and A-2 Notes were nearly worthless. IKB lost almost all of its $150 million investment. Most of this money was ultimately paid to Paulson in a series of transactions between GS&Co and Paulson.

2. ACA/ABN AMRO

61. ACA’s parent company, ACA Capital Holdings, Inc. ( “ACA Capital”), provided financial guaranty insurance on a variety of structured finance products including RMBS CDOs, through its wholly-owned subsidiary, ACA Financial Guaranty Corporation. On or about May 31, 2007, ACA Capital sold protection or “wrapped” the $909 million super senior tranche of ABACUS 2007-AC1, meaning that it assumed the credit risk associated with that portion of the capital structure via a CDS in exchange for premium payments of approximately 50 basis points per year.

62. ACA Capital was unaware of Paulson’s short position in the transaction. It is unlikely that ACA Capital would have written protection on the super senior tranche if it had known that Paulson, which played an influential role in selecting the reference portfolio, had taken a significant short position instead of a long equity stake in ABACUS 2007-ACL.

63. The super senior transaction with ACA Capital was intermediated by ABN AMRO Bank N.V(“ABN”), which was one of the largest banks in Europe during the relevant period.

This meant that, through a series of CDS between ABN and Goldman and between ABN and ACA that netted ABN premium payments of approximately 17 basis points per year, ABN assumed the credit risk associated with the super senior portion of ABACUS 2007-AC1’s capital structure in the event ACA Capital was unable to pay.

64. GS&Co sent ABN copies of the ABACUS 2007-AC1 term sheet, flipbook and offering memorandum, all of which represented that the RMBS portfolio had been selected by ACA and omitted any reference to Paulson’s role in the collateral selection process and its adverse economic interest. Tourre also told ABN in emails that ACA had selected the portfolio. These representations and omissions were materially false and misleading because, unbeknownst to ABN, Paulson played a significant role in the collateral selection process and had a financial interest in the transaction that was adverse to ACA Capital and ABN.

65. At the end of 2007, ACA Capital was experiencing severe financial difficulties.

In early 2008, ACA Capital entered into a global settlement agreement with its counterparties to effectively unwind approximately $69 billion worth of CDSs, approximately $26 billion of which were related to 2005-06 vintage subprime RMBS. ACA Capital is currently operating as a run-off financial guaranty insurance company.

66. In late 2007, ABN was acquired by a consortium of banks that included the Royal Bank of Scotland (“RBS”). On or about August 7, 2008, Royal Bank of Scotland unwound ABN’s super senior position in ABACUS 2007-AC1 by paying GS&Co $840,909,090. Most of this money was subsequently paid by GS&Co to Paulson.

CLAIMS FOR RELIEF

FIRST CLAIM I

Section 17(a) of the Securities Act

Paragraphs l-66 are realleged and incorporated herein by reference.

68. GS&Co and Tourre each violated Section l7(a)(1), (2) and (3) of the Exchange
Act [15 U.S.C. § 77q(a)(1), (2) & (3)].

69. As set forth above, Goldman and Tourre, in the offer or sale of securities or securities-based swap agreements, by the use of means or instruments of interstate comrnerce or by the mails, directly or indirectly (a) employed devices, schemes or artifices to defraud; (b) obtained money or property by means of untrue statements of material facts or omissions of material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) engaged in transactions, practices or courses of business which operated or would operate as a fraud or deceit upon purchasers of securities.

70. GS&Co and Tourre knowingly, recklessly or negligently misrepresented in the term sheet, flipbook and offering memorandum for ABACUS 2007-AC1 that the reference portfolio was selected by ACA without disclosing the significant role in the portfolio selection process played by Paulson, a hedge fund with financial interests in the transaction directly adverse to IKB, ACA Capital and ABN. GS&Co and Tourre also knowingly, recklessly or negligently misled ACA into believing that Paulson invested in the equity of ABACUS 2007-AC1 and, accordingly, that Paulson & Co.’s interests in the collateral section process were closely aligned with ACA’s when in reality their interests were sharply conflicting.

SECOND CLAIM

Section 10(b) and Rule 10-b(5) of the Exchange Act

71. Paragraphs 1-70 are realleged and incorporated herein by reference.

72. GS&Co and Tourre each violated Section l0(b) of the Exchange Act [5 U.S.C § 78j&)l
and Rule l0b-5 [17 C.F.R. § 240.10b-5].

73. As set forth above, GS&Co and Tourre, in connection with the purchase or sale of securities
or securities-based swap agreements, by the use of means or instrumentalities of interstate commerce or of the mails, directly or indirectly (a) employed devices, schemes or artifices to defraud; (b) made untrue statements of material facts or omissions of material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) engaged in transactions, practices or courses of business which operated or would operate as a fraud or deceit upon persons.

74. GS&Co and Tourre knowingly or recklessly misrepresented in the term sheet flip book and offering memorandum for ABACUS 2007-ACl that the reference portfolio was selected by ACA without disclosing the significant role in the portfolio selection process played by Paulson, a hedge fund with financial interests in the transaction adverse to IKB, ACA Capital and ABN. GS&Co and Tourre also knowingly or recklessly misled ACA into believing that Paulson invested in the equity of ABACUS 2007-AC1 and, accordingly, that Paulson’s interests in the collateral section process were closely aligned with ACA’s when in reality their interests were sharply conflicting.

PRAYER FOR RELIEF

WHEREFORE, the Commission respectfully requests that this Court enter a judgment:

A. Finding that GS&Co and Tourre each violated the Federal securities laws and
the Commission rule alleged in this Complaint;

B. Permanently restraining and enjoining GS&Co and Tourre from violating Section 17(a) of the Securities Act [15 U.S.C. §77q(a)], Section 10(b) of the Exchange Act [1s U.S.C. § 78j(b)] and Exchange Act Rule l0b-5 [17 C.F.R § 240.10b-5];

C. Ordering GS&Co and Tourre to disgorge all illegal profits that they obtained
as a result of their fraudulent misconduct, acts or courses of conduct described in this
Complaint, and to pay prejudgment interest thereon;

D. Imposing civil monetary penalties on GS&Co and Tourre pursuant to
Section 20(d)(2) of the Securities Act [15 U.S.C. § 77t (d)(2)] and
Section 21(d)(3) of the Exchange Act [l5 U.S.C. §78u(d)(3)]; and:

E. Granting such equitable relief as may be appropriate or necessary for the benefit
of investors pursuant to Section 2l(d)(5) of the Exchange Act [5 U.S.C. §78u(d)(5)].

Dated: Washington, D.C.

April 16,2010

Respectfully submitted [signed]

Andrew M. Calamari (AC-4864)
Richard E. Simpson (RS 5859)
Reid A. Muoio (RM 2274)

Kenneth Lench
Cheryl J. Scarboro
James A. Kidney
Jeffrey Tao
Jason Anthony
Nicole C. Kelly
Jeff Leasure

Securities and Exchange Commission
IOO F St., NE
Washington, D.C. 20549-4010
(202) 551-4492 (Simpson)
simpsonr@sec.gov

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

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• This is a very old, malevolent US counterintelligence DIRTY TRICK.

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Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

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The familiar US proprietary Internet Security programs are by-products of US counterintelligence, and are intended NOT to solve your Internet security problems, but to spy on you and to report what you write about, to centralised US electronic facilities set up for the purpose. You can now BREAK FREE from this syndrome while at the same time helping us to MAINTAIN THE VERY HEAVY PRESSURE UPON THE CRIMINALISTS WE HAVE BEEN EXPOSING, by ordering this highest quality FOREIGN (i.e., non-US) INTERNET SECURITY SOLUTION that we have started advertising on this website. This offer has been developed in response to attacks we have suffered from the NSA nerds who appear to have a collective mental age of about five years, judging by their output.

• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

• It is suitable for PC’s but not for Mac computers. As with all such programs, the License is renewable at a modest fee annually. This is done on-line in the usual way [with the supplier direct].

DEFINITIVE ILLEGALITY OF SECURITISATION IS RECONFIRMED

cropped-chrisstory

IT IS ILLEGAL TO ASSIGN AN ASSET WITHOUT THE ASSET-OWNERS’S PRIOR WRITTEN PERMISSION. ALL ENGAGED IN THIS RACKETEERING KNOW IT.

Sunday 18 April 2010 00:01

• ANY CONTRACT ENTERED INTO FOR AN ILLEGAL PURPOSE IS NULL AND VOID

• THE TEXT OF THE S.E.C.’S COMPLAINT AGAINST GOLDMAN SACHS & CO. FILED ON 16TH APRIL 2010 IS AVAILABLE IN THE REPORT ALSO DATED 18TH APRIL. TO ACCESS THE S.E.C. COMPLAINT, PLEASE PRESS ‘BACK TO ARCHIVE’ OR THE ARCHIVE BUTTON [HOME PAGE]. THE REPORT CONTAINS A BRIEF COMMENTARY IN NOTE FORM, THE S.E.C.’S RELATED PRESS RELEASE, AND THE COMPLAINT TEXT. THIS CASE SPECIFICALLY ILLUSTRATES MANY OF THE ISSUES EXPOSED IN THE PRESENT REPORT, WITH DEVASTATING EFFECT AND IMPACT.

• Securitisation is ABSOLUTELY ILLEGAL, and all those talking heads from the City of London and Wall Street who have been treating, for example, the Goldman Sachs scandal (that we warned you about years ago) as just ‘the inevitable fall-out after a period of financial crisis’, rather than the corrupt cause of the crisis, are KNOWINGLY MISLEADING THE GENERAL PUBLIC EXACTLY LIKE GOLDMAN SACHS, CITIBANK, BANK OF AMERICA, WACHOVIA, WELLS FARGO and the other US and foreign financial enterprises engaged in this racketeering. Which the IMF CONDONES.

And before you start shouting at the screen, if you’re reading this from Wall Street or the City of London, or from within the IMF and the World Bank, why don’t you pay attention to the fact that the Notes and References, as originally published in our journal Economic Intelligence Review, run to FIVE AND A HALF PAGES. SECURITISATION IS ABSOLUTELY ILLEGAL: AND THEY KNOW IT.

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• ADVERTISEMENT: Details of the INTERNET SECURITY SOLUTION software offered by this service in conjunction with a donation can be accessed immediately: See the Home Page World Reports Limited serials catalogue by clicking World Reports Limited and scrolling to foot of page. Scroll to the foot of THIS page to read our extended Ad. for the INTERNET SECURITY SOLUTION.

Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

• AS PREVIOUSLY ANNOUNCED, OUR LANDLINES REMAIN CLOSED BECAUSE OF UNLAWFUL HARASSMENT. WE CAN BE CONTACTED VIA EMAIL OR THE WEBSITE ‘CONTACT US’ FACILITY.

NEW REPORT STARTS HERE:

EDITOR’S INTRODUCTION:
That Asset-Backed Securitisation [ABS] is fraudulent has been amply demonstrated by our website reports, in this service and in successive issues of International Currency Review. In the following uncompromising analysis, Mr Michael Nwogugu CPA, who is based in Maryland, demonstrates with pinpoint technical proficiency how accurate this assessment has been – inspired for our part inter alia by the US securities and technical expertise of Michael C. Cottrell, B.A., M.S.

The author has looked at securitisation from every legal angle, and finds securitisation under US law to be absolutely illegal, with no redeeming features whatsoever.

Given this state of affairs, it would damage the integrity of the English language to observe that it is astonishing that, far from paying attention to this glaring state of affairs, US investment banks, intermediaries, organised criminal syndicates, Intelligence Power cadres, officials in high places, and their counterparties abroad, further encouraged inter alia by the railroading behaviour of the Depository Trust and Clearing Corporation (DTCC), have been proceeding to gear up for ‘business as usual’ securitisation operations as though there had been no discontinuity.

In addition to being ILLEGAL UNDER U.S. LAW, securitisation is ILLEGAL UNDER COMMON LAW. If the prior written permission of the mortgagor (or other type of asset-holder) has not been obtained in writing, and in such a manner that the party IS FULLY AWARE THAT THEY HAVE GRANTED SUCH PERMISSION, the transfer and all subsequent transactions are ILLEGAL.

• Moreover, the legal axiom that ‘the money you make from exploitaing and abusing my money is my money’ likewise applies. PLUS:

• ANY CONTRACT ENTERED INTO FOR AN ILLEGAL PURPOSE IS NULL AND VOID.

Self-evidently, this study focuses on the US legal position. But the same basic principles apply in all Common Law Countries. So far, the talking heads in the so-called ‘Mainstream’ Media’ have chosen to ignore the fact that securitisation is ILLEGAL. Reality will soon be catching up with them, just as it is at last catching up with the likes of Goldman Sachs and other ‘protected’ enterprises.

REPRODUCED FROM:
ECONOMIC INTELLIGENCE REVIEW, VOLUME 12, NUMBERS 7 & 8, FIRST QUARTER 2010: pages 4-21. World Reports Limited, 108 Horseferry Road, Westminster, London SW1P 2EF, UK.

EXECUTIVE SUMMARY [REPRODUCED FROM OUR REPORT DATED 10TH MARCH 2010]:

WHY SECURITISATION IS ILLEGAL UNDER U.S. AND COMMON LAW
Securitisation is illegal under US legislation – primarily because it is fraudulent and causes specific violations of R.I.C.O., usury, Antitrust and bankruptcy laws. And it flies in the face of public policy in numerous ways, as was expounded in extensive detail in this analysis published in our journal Economic Intelligence Review 2009Q1 with several pages of book, article and case references.

To begin with, securitisation violates US State usury legislation. Secondly, all ‘true-sale’, ‘disguised loan’ as well as ‘assignment’ securitisations are essentially tax evasion schemes, and the penalties for tax evasion in the United States are excessively severe.

Thirdly, in all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations, the conflict of interest inherent in the sponsor also serving as the servicer constitutes fraud and conversion. In the fourth place, in all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations where the Special Purpose Vehicle [SPV] is a trust, the declaration of trust is void, as it exists for an illegal purpose.

In the fifth place, off-balance sheet treatment of asset-backed securities (both for ‘true-sale’ and for assignment transactions) constitutes fraud.

Sixth, all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations involve blatant fraudulent conveyances. In the seventh place, securitisation usurps United States bankruptcy laws and is accordingly illegal, as well as being also demonstrably contrary to public policy.

SECURITISATION ENTAILS GROSS VIOLATIONS OF R.I.C.O. STATUTES
In ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations, there are fraudulent transactions which serve as ‘predicate acts’ under US Federal R.I.C.O. statutes.

The specific R.I.C.O. sections are: Section 1341 (mail fraud); Section 1343 (wire fraud); Section 1344 (financial institution fraud); Section 1957 (engaging in monetary transactions improperly derived from specified unlawful activity) [‘the money you make from the illegal exploitation of my money, is my money’]; and Section 1952 (racketeering).

Furthermore, securitisation constitutes violations of American antitrust statutes through market integration, syndicate collusion, price formation, vertical foreclosure, tying, price-fixing, predatory pricing, and the rigging of allocations.

Securitisation also involves void contracts, given the lack of consideration, illusory promises, the absence of any actual bargain, the absence of mutuality – and finally illegal subject matter and the contravention of public policy.

Securitisation is riddled with Fraudulent Transfer, Fraud in the Inducement, Fraud in Fact by Deceit, Theft by Deception (Fraudulent Concealment) and Fraudulent Conveyance: see the US securities regulations routinely breached in such activity, listed at the foot of this report and of most of these reports for THE PAST THREE++ YEARS, and other laws also routinely flouted in this context.

NOTWITHSTANDING THAT IT’S ILLEGAL, U.S. AUTHORITIES
CONTINUE TO PROMOTE AND ENCOURAGE SECURITISATION
Yet notwithstanding such crystal-clear indications that securitisation is 100% ILLEGAL under US Law, as well as under Common Law generally (so that these findings are largely applicable in all Common Law countries), US authorities from the highest level downwards, financial institutions, intermediaries, Intelligence Power operatives and others are gearing up for what they doubtless hope will be intensified racketeering and trading activity with (corrupt) foreign counterparties.

This behaviour is being fine-tuned ‘as we speak’, despite the reality that the securitisation activity being planned and implemented violates innumerable US statutes in the manner we summarise above, and notwithstanding that such activity is contrary to public policy. TAnd the International Monetary Fund knows all this perfectly well, yet sits idly by, accommodating this racketeering.

Indeed, it’s as though the Rule of Law did not exist. From the highest level of the US Treasury, the White House, the US State Department and the Central Intelligence Agency and its subsidiaries such as the lethal Office of Naval Intelligence (ONI), the mindset, intention and perverse primary objective has all along been to resume Fraudulent Finance based on securitisation, as quickly and as seamlessly as possible. The IMF and World Bank are parties to thus aberrant behaviour.

SUMMARY FORENSIC ANALYSIS PROVING THE ILLEGALITY OF SECURITISATION
From whichever angle securitisation is considered, it is ILLEGAL. For example, the contracts are themselves VOID. This is because the process of securitisation involves several contracts that are either signed simultaneously, or within a short timeframe – many of which are rendered void inter alia because there is no consideration in contracts used in effecting the securitisations.

Many such contracts involve unilateral executory undertakings containing illusory promises. A unilateral executory promise is not a consideration. Such promises typically include a promise made by the Special Purpose Vehicle to pay out periodic interest, whether contingent or non-contingent on whether the collateral pays cash interest.

Collateral-substitution agreements contain a promise whereby the sponsor agrees to substitute impaired collateral. An assignment agreement of future (not yet existing) collateral may well be deemed a unilateral executory promise by the sponsor.

Illusory promises are not valid consideration for a contract. Such promises may be found in the Subscription/Purchase Agreement, whereby an existing asset is being exchanged for a future asset that does not exist as of the date of the subscription/purchase agreement. To make matters worse, none of the agreements typically signed by the investor as part of his/her purchase of the Special Purpose Vehicle’s Asset-Backed Securities expressly incorporates the (typically illusory) promises embodied in the offering prospectus.

OR: The Special Purpose Vehicle’s promise to pay interest and/or dividends on Asset-Backed Securities ‘Interest-Onlys’, Preferreds and ‘Pincipal-Onlys’ are essentially illusory promises because the underlying collateral may not produce any cash flows at all: so there won’t be any interest/dividend payments.

Moreover the lack of mutuality characterising such contracts renders them null and void, by definition. In any such contract, each party must have firm control of the subject matter of the contract and the underlying assets (consideration), and there MUST be a direct contractual relationship between the parties concerned.

But this is not the case, especially as the Special Purpose Vehicle’s corporate documents (trust indentures or bylaws or articles of incorporation) may typically limit the right of each Asset-Backed Security investor; while there is typically no mutuality at all between the Special Purpose Vehicle and the sponsor/originator, because both entities are essentially the same, and are controlled by the sponsor before and after the securitisation takes place.

SECURITISATION: A COVER FOR TAX EVASION
In addition to their multiple violations of American State usury laws, all ‘true-sale’, ‘disguised loan’ and ‘assignment securitisations’ are essentially tax evasion arrangements. In the United States, the applicable tax evasion statute is the US Internal Revenue Code Section 7201 7 which reads: “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution”.

Under this statute and related case law, prosecutors
must prove three elements beyond any reasonable doubt:

(1): The actus reus (the guilty conduct) – which consists of an affirmative act (not merely an omission or failure to act) that constitutes evasion or an attempt to evade either: (a) the assessment of a tax or (b) the payment of a tax.

(2): The mens rea or “mental” element of willfulness – the specific intent to violate an actually known legal duty. In the case of ‘true sale’ transactions, the tax evasion occurs because:

(a): The sponsor determines the price at which the collateral is transferred to the SPV, and hence, can arbitrarily lower/increase the price to avoid capital gains taxes – it being assumed here that the sponsor is a profit-maximising entity and will always act to minimise its tax liability and to avoid any tax assessment;

(b): The sponsor typically retains a ‘residual’ interest in the SPV in the form of IOs, POs and “junior pieces”, which are typically taxed differently and on a different tax-basis compared with the original collateral: hence, the sponsor can lower the price of the collateral upon transfer to the SPV, and convert what would have been capital gains, into a non-taxable basis in the SPV “residual”;

(c): There is typically the requisite “intent” by the sponsor – evidenced by the arrangement of the transaction and the transfer of assets to the Special Purpose Vehicle;

(d): Before securitisation, collateral is typically reported in the sponsors’ financial statements at book value (that is, lower-of-cost-or-market: under both the US and the international accounting standards, loans and accounts receivable are typically not re-valued to market-value unless there has been some major impairment in value) which does not reflect true Market Values, and results in effective tax evasion on transfer of the collateral to the SPV, as any unrealised gain is not taxed;

(e): The actus reus is manifested by the execution of the securitisation transaction and transfer of assets to the Special Purpose Vehicle (SPV);

(f): The mens rea or specific intent is manifested by the elaborate arrangements implicit in securitisation transactions, the method of determination of the price of the collateral to be transferred to the SPV, the aims of securitisation, and the sponsor’s transfer of assets to the SPV;

(g): The unpaid tax liability consists of foregone tax on the capital gains from the collateral (the transaction is structured to avoid recognition of capital gains), and tax on any income from the collateral which is ‘converted’ into basis or other non-taxable forms;

(h): Income (from the collateral) that would have been taxable in the sponsor’s own financial statements, is converted to a non-taxable basis in the form of the SPV’s Interest-Only (IO) and Principal-Only (PO) securities: part of the Interest-Spread (the difference between the SPV’s income and what it pays as interest and operating costs) is paid out to PO-holders, and this transforms interest into return-of-capital or just capital repayment, with no tax consequences.

In cases of ‘disguised loan’ or ‘assignment’ securitisation transactions, tax evasion occurs:

(a): Because the sponsor determines the price at which the collateral is transferred to the SPV, and hence can lower/increase the price of the collateral to avoid capital gains taxes;

(b): Because the sponsor typically retains a ‘residual’ interest in the SPV which is normally taxed differently and on a different tax-basis compared to the original collateral: hence, the sponsor can lower the price upon transfer to the SPV, and convert what would have been capital gains, to a non-taxable basis for tax purposes;

(c): Because the transfer of collateral to the SPV and the creation of Interest-Only and Principal-Only securities converts what would have been taxable capital gains into non-taxable basis;

(d): Because gain in the value of the collateral is not recognised for tax purposes, because there has not been any ‘sale’;

(e): Where the Asset-Backed Security (ABS) is partly amortising, any capital gains are converted into interest payments;

(f): Because actus reus is manifested by the execution of the securitisation transaction and transfer of assets to the SPV;

(g): Because the mens rea or specific intent is manifested by the elaborate arrangements implicit in securitisation transactions, the objectives of securitisation and the sponsor’s transfer of assets to the Special Purpose Vehicle;

(h): Because the unpaid tax liability consists of tax on the capital gains from the transfer of the collateral (the transaction is structured to avoid recognition of a sale, whereas the transfer to the Special Purpose Vehicle is effectively a sale), and tax on any income from the collateral which is ‘converted’ into basis or other non-taxable forms, by securitisation.

SECURITISATION VIOLATES THE U.S BANKRUPTCY CODE
AND THEREFORE ALSO CONTRAVENES PUBLIC POLICY
Any transfer or conveyance of the assets of a debtor that is deemed to be made for the purposes of hindering, delaying or defrauding actual or potential creditors, may be determined by Courts to be a Fraudulent Conveyance under Section 548 of the US Bankruptcy Code or under a relevant theory of Constructive Fraud.

Although each US State has its own laws regarding the appropriate elements of proof of Constructive Fraud, Section 548(a)(2) of the US Bankruptcy Code permits an inference of Constructive Fraud if the following factors exist:

(1): The debtor received less than reasonably equivalent value for the property transferred; and:

(2): The debtor was insolvent or became insolvent as a result of the transfer, or else retained unreasonably small capital after the transfer, or made the transfer with the intent or belief that it would incur debts beyond its ability to pay.

The following theories of Fraudulent Conveyance within the context of securitisation may apply:

• Where the sponsor/originator receives insufficient value for assets transferred.

• Where there is an ‘intent to hinder, delay or defraud’ creditors (representing an implicit pre-petition waiver of one’s right to file for bankruptcy), with regard to the originator’s transfer of assets to the SPV, or the originator’s transfer of assets to the SPV has clearly not been undertaken on an arms’-length basis.

• Where securitisation increases the originator’s bankruptcy risk; and:

• In all instances where securitisation usurps the United States’ bankruptcy laws and is therefore illegal on such a basis alone.

SECURITISATION VIOLATES FEDERAL R.I.C.O. STATUTES
Turning now to the reality that securitisation constitutes a violation of US Federal R.I.C.O. Statutes [see Legal Notes below], we can state without equivocation that the entire securitisation process constitutes violations of Federal R.I.C.O. statutes, because:

(1): There is the requisite criminal or civil ‘enterprise’ – consisting of the sponsor/issuer, the trustees and the intermediary bank. These three parties work closely together to effect the securitisation transaction.

(2): There are ‘predicate acts’ of:

(a): Mail fraud – using the mails for sending out materials among themselves and to investors.

(b): Wire fraud – using wires to engage in fraud by communicating with investors.

(c): Conversion – where there isn’t proper title to collateral.

(d): Deceit: misrepresentation of issues and facts pertaining to the securitisation transaction.

(e): Securities fraud: disclosure issues.

(f): It entails loss of profit opportunity.

(g): It involves the making of false statements and or misleading representations
about the value of the collateral.

(h): It entails stripping the originator/issuer of the ability to pay debt claims or judgment claims in bankruptcy court – a state of affairs that may apply where the sponsor is financially distressed and the cash proceeds of the transaction are significantly less than the value of the collateral.

There is also typically the requisite ‘intent’ by members of the enterprise – evident in knowledge (actual and inferable), acts, omissions, purpose (actual and inferable) and results. Intent can be reasonably inferred from:

(a): The existence of a sponsor that seeks to raise capital – and cannot raise capital on better terms by other means;

(b): The participation of an investment bank that has very strong incentives to consummate the transaction on any agreeable (but not necessarily reasonable) terms.

SECURITISATION ALSO VIOLATES U.S. ANTITRUST LEGISLATION
Securitisation further constitutes violations of US Antitrust laws, because the American Asset-Backed Securities and Mortgage-Backed Securities markets are dominated by relatively few large entities such as FNMA (Fannie Mae), Freddie Mac, the top five investment banks (all of which have conduit programs), and the top five credit card issuers (MBNA, AMEX, Citigroup, etc.), etc.. As a consequence, the top five ABS/MBS issuers control more than 50% of the US ABS/MBS market.

• This constitutes illegal market concentration under US Antitrust legislation.

THE ‘PHILIPPINES EXCEPTION’ BURIED IN THE CLAYTON ACT
In the Antitrust context, however, observe the following text from the Clayton Act, which specifically EXCLUDES transactions undertaken with The Philippines. Isn’t that interesting?

It provides a blanket rationale for the massive past and ongoing US clandestine focus on The Philippines, the CIA’s need for ‘black hole’ conditions there in connection with successive US operations to relieve Presidents Marcos and Aquino of the stolen and hidden ‘Yamashita’s gold’, the US Fraudulent Finance operations using Philippine institutions and related operations based in that territory, an aborted US operation to convert The Philippines into a new US State (as had been planned under Clinton for Somalia), and the frequent visits of operatives known to ourselves to The Philippines under cover of attending to ‘orphanages’:

§ 1 Clayton Act, 15 U.S.C. § 12 Definitions; short title:
(a) “Antitrust laws”, as used herein, includes the Act entitled:
‘An Act to protect trade and commerce against unlawful restraints and monopolies’, approved July second, eighteen hundred and ninety; sections seventy-three to seventy-seven, inclusive, of an Act entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes’, of August 27th, eighteen hundred and ninety-four; an Act entitled ‘An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninetyfour’, entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes’, approved February twelfth, nineteen hundred and thirteen; and also this Act.

‘Commerce’, as used herein, means trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory of the United States and any State, Territory, or foreign nation, or between any insular possessions or other places that are under the jurisdiction of the United States, or between any such possession or place and any US State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States:

Provided, That nothing in this Act contained shall apply to the Philippine Islands. The word ‘person’ or ‘persons’ wherever used in this Act shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country.

FANNIE MAE, FREDDIE MAC ENGAGED IN FURTHER ILLEGAL SECURITISATION:
RE-SECURITISING ALREADY SECURITISED ‘DUD’ ASSETS TO DUMP BACK ON THE BANKS
Even so, it became apparent in early March that Fannie Mae and Freddie Mac, both controlled by the US Government, were planning to force financial enterprises such as the CIA’s Bank of America Corporation, JP Morgan Chase & Co, Wells Fargo and Citigroup, Inc., to buy back further waves of newly securitised packages of mortgages – i.e., the former Government-Sponsored Enterprises are reportedly engaged again in repackaging mortgage securities already marked down to ‘true’ value.

In other words, they are trying to dump faulty securitised loans, as well as straight loans, back on the participating banks – under cover of such fantasies as the double-minded statement attributed to Sharon McHale, spokes‘person’ for Freddie Mac, located adjacent to the CIA in McLean, Virginia, on 5th March 2010: ‘We are trying to be good stewards of taxpayer dollars and as part of that, it’s important that those dollars not go to loans that should not have been sold to us in the first place’ – throwing the blame for Freddie Mac’s own scandalous racketeering behaviour back at the banks.

• Being interpreted, what this woman was saying was: this:

‘We are covering ourselves with a mantle of rectitude by posing as protectors of the taxpayer’s dollars in order to obfuscate our own ongoing racketeering behaviour, even as we prepare further Fraudulent Finance securitisations in violation of the relevant US legislation: and we couldn’t care less because we are owned by the Government itself, which is up to its neck in such violations’.

And Paul Miller, a former examiner for the Federal Reserve (hardly a guarantee of integrity, given the Fed’s own reputation for Fraudulent Finance), based in Arlington, VA, let the cat out of the bag with: ‘If you want to originate mortgages and keep that pipeline running, you have to deal with the push-backs. It doesn’t matter how much you hate Fannie and Freddie’ – and neither, apparently, does it matter to what extent the Rule of Law is cynically violated ‘in order to keep the pipeline (of Fraudulent Finance) running’. It doesn’t matter that securitisation is a form of racketeering.

GARY GENSLER IS NOT AS OPPOSED TO FRAUDULENT FINANCE AS HE SEEMS
The appointment of Gary Gensler as Chairman of the Commodity Futures Trading Commission under President Obama was greeted with signs of relief on Wall Street. Here was a hardened former Goldman Sachs trader with 18 years’ experience with that cynical, ruthless money shop, who could be relied upon to act at all times in the interests of Wall Street, not the investor and taxpayer.

But, as has since been reported elsewhere, over a private lunch at the Waldorf Astoria in midtown Manhattan on 6th January 2010, the 52-year-old Gary Gensler caused indigestion among the self-satisfied guests at the luncheon – Timothy O’Hara, head of global credit at Crédit Suisse Holdings USA, Inc.; Robert P. Kelly, CEO at Bank of New York Mellon Corporation; David B. Heller, co-head of the securities division at Goldman Sachs; and Seth Waugh, CEO of Deutsche Bank Americas.

Because when one banker asked Gensler what or whom he saw as the biggest obstacles to reform in the securities and commodities sectors, he replied: ‘You’.

Mr Gensler has been seeking derivatives control legislation that goes beyond current proposals, including what President Obama put forward during the summer of 2009. Notwithstanding the fact that if the derivatives situation is not addressed, the forthcoming crash will be so horrific as to be likely to tip the world into open, rather than covert, warfare, a certain Dr Samuel Hayes, Professor Emeritus of Investment Banking at Harvard Business School, Boston, told Bloomberg in February 2010 that ‘Gensler is going to raise real concerns’ for financial firms.

‘Derivatives are absolutely central to what is Wall Street in the 21st century’ – namely, a casino. ‘Nobody wants the regulations to affect them’.

‘GREATER TRANSPARENCY’ IS EVIDENTLY ALL HE‘S AFTER
On closer examination, Mr Gensler has actually been pushing for ‘more transparency’ in the over-the-counter derivatives market, so as to lower spreads between buyers and sellers and to make it easier for new competitors to enter the market – which the big banks aren’t keen on, as more participants will deprive them of profit.

So, Gary Gensler is not actually in the business of tackling the underlying crisis arising from the determination of financial institutions to continue playing Russian roulette, using the model first developed by the US Intelligence Power as it sought what it thought were foolproof methods of ensuring its financial independence from Congress and the open-ended funding pipelines that it considered appropriate to buttress its usurped status as a recalcitrant ‘State within the State’ impervious to reform and determined to brook no interference with its stolen hegemony.

INVESTORS’ MONEY USED TO REMUNERATE WALL STREET
In any case, the derivatives institutions and their back-up infrastructure have not the slightest intention of adopting any course other than ’business as usual‘ – and on a far larger scale than in the past. This obtuse madness WILL lead to a global collapse, as derivatives products are usually without real value. As a noted article in The New York Times of 7th February 2010 at last stated, investment banks trading derivatives do not own the mortgage bonds, the obligations from home owners, notes signed by home owners or the mortgage deeds of the deeds of trust.

The ‘structured products’, consisting of bundled documents ostensibly relating to the above but having NO RECOURSE to underlying real value, were, however, invested with ‘value’ arising from the name of the institution marketing the ‘asset’ – that is to say, arbitrary ‘value’ arising from the fact that, as a Goldman Sachs compliance officer actually admitted to the Editor of this service: ‘A structured product is worth what someone is prepared to pay for it’ – a penetrating statement which encapsulates the possibility that it may be (is) worthless: which is indeed the case.

‘THE MONEY YOU MAKE BY MISUSING MY MONEY IS MY MONEY’ – I.E., THE HOME OWNER’S
The money sloshing around between investment banks in this dirty market was investors’ money unwittingly advanced into pools of capital which winds up being used primarily to finance the fees, profits, insurance proceeds, insurance premia, and so forth – all for the benefit of Wall Street, paid to the investment banks, and not to investors who stumped up the money in the first place.

These fees and relationships are not and have never been disclosed to the home owner despite, in the United States, clear legislation requiring such transparency, including the Truth in Lending Act, and Deceptive Lending – which require full transparency and disclosure.

• Further legislation applicable to the securities sector in the United States is re-listed below – in the list that we have republished at the foot of our website reports for the past three years.

• The list of applicable securities regulations and laws is augmented by a legal tutorial which, again, we have published for the past three years at the foot of these reports,

It would appear that, notwithstanding such reminders, Wall Street and its compliant infrastructure, as well as its co-conspiring portfolio of dubious foreign trading counterparty institutions, has every intention of continuing to violate the relevant US rules and legislation – while at the same time continuing to abuse, in the mortgage sector, the home owner with the same cynicism as in the past.

Given the legal principle that ‘the money you make from misusing my money is my money’, it is quite clear that undisclosed fees, profits, kickbacks and other financial abuses perpetrated by these big speculative financial entities which produce no real wealth at all, but simply move money around between themselves, are payable to the home owner who signed the ‘loan’ papers in the first place.

THE ILLEGALITY OF SECURITIZATION
A legal analysis by MICHAEL NWOGUGU,
Certified Public Accountant (Maryland, USA); B.Arch.
(City College of New York). MBA (Columbia University).
Attended Suffolk Law School (Boston, USA).

Abstract:
Under US laws, securitization is illegal, primarily because it is fraudulent and causes very specific violations of R.I.C.O., usury, and antitrust laws. Securitization of many types of assets (loans, credit cards, auto receivables, intellectual property, etc.) has become and remains prevalent, particularly for financially distressed companies and companies with low or mid-tier credit ratings. This analysis focuses on securitization as it pertains to asset-backed securities and mortgage-backed securities, and analyzes critical legal and corporate governance issues.

Editor’s Note: This analysis does not elaborate that the illegal securitization model was developed and hijacked by the criminalised Intelligence Power, which is our contribution to the issue; but that is the sum of the matter, to be kept in mind at all times.

Keywords:
Securitization; antitrust; R.I.C.O.; constitutional law; capital markets; complexity; fraud.
[Some American English spelling has been retained].

Main abbreviations:
ABS = Asset-Backed Securities; SPV = Special Purpose Vehicle.

EDITOR’S INTRODUCTION
Under US legislation, securitization is illegal. Indeed many authors have illustrated the deficiencies in securitization (1). This analysis focuses on securitization as it pertains to asset-backed securities and mortgage-backed securities (2), (3).

The existing literature on legal and corporate governance issues pertaining to securitization is extensive, but has several gaps that have not been addressed at all or sufficiently:

• Whether securitization is legal.
• Whether securitization causes usury.
• The standards for usurious loans/forbearance.
• The specific components of cost-of-capital, for purposes of assessing usury violations.
• Antitrust liability in securitization transactions.
• Federal/State R.I.C.O. liability in securitization transactions.
• The constitutionality of securitization transactions.
• The validity of contracts used in effecting securitization transactions.
• Whether securitization usurps the purposes of the US Bankruptcy Code.

This analysis seeks to fill these significant gaps in the literature [and to answer questions vexing the US and international financial markets, for the definitive elimination of doubt – in support of our long-standing demonstration that securitization and the creation and marketing of ‘structured products’ represents serious fraud – Ed.].

Although the following analysis is supported with US case law, the principles derived are applicable to securitization transactions in both common-law countries and civil-law countries – which means that they are applicable in, for instance, the United Kingdom. In analyzing the legality of securitization, the following criteria are relevant:

• Origins and history of securitization – legislative history, evolution of securitization processes, and current practices. Carlson (1998), Janger (2002) and Lupica (2000) (4) trace the known history of US securitization to direct and specific efforts/collaborations to avoid the impact of US bankruptcy laws. Klee & Butler and other authors have traced the history of securitization to attempts to handle the problem of non-performing debt.

• Types of contracts used in securitization:

The primary criteria for enforceability.

• Purposes, wording and scope of applicable laws – state contract laws, State trusts laws, US Bankruptcy Code, and State/Federal securities laws. The legislative intent of the US Congress in drafting and revising the US Bankruptcy Code.

• How the applicable laws are applied in securitization processes – by market participants, regulators and lawyers that represent investors.

•The people, markets, and entities and organizations affected by securitization.

• The usefulness of existing (if any), possible and proposed (if any) deterrence measures designed to reduce fraud/crime/misconduct [such as has been extensively reported by this service, and in International Currency Review – Ed.].

• Transaction costs.

• The results and consequences of the application (or non-application) of relevant laws.

A: SECURITIZATION VIOLATES STATE USURY LAWS
Securitization violates State usury laws, because the resulting effective interest rate typically exceeds legally allowable rates (set by State usury laws) (5). There is substantial disagreement (conflicts in case-law holdings) among various US court jurisdictions, and also within some judicial jurisdictions, about some issues; and these conflicts have not been resolved by the US Supreme Court 6. On these issues, even the cases for which the US Supreme Court denied certiorari, vary substantially in their holdings. The pertinent issues are as follows:

1: What constitutes usury.
2: What costs should be included when calculating the effective cost-of-funds.
3. What types of forbearance qualify for applicability of usury laws.
4: Conditions for pre-emption of state usury laws. Where the securitization is deemed an assignment of collateral, the effective cost-of-funds for the securitization transaction is not the advertised interest cost (investor’s coupon rate) of the ABS securities, but rather the sum of the following elements:

• The greater of the sponsor’s/originator’s annual cost-of-equity (in percentages) or the percentage annual cash yield from the collateral (in a situation where the SPV’s corporate documents expressly state that the Excess Spread should be paid to the sponsor, the Excess Spread should be subtracted from the resulting percentage). The Excess Spread is defined as the Gross Cash Yield From The Collateral, minus the interest paid to investors, minus the Servicing Expense (paid to the servicer), minus Charge-offs (impaired collateral).

• The Amortized Value Difference:
The difference prevailing between the Market Value of the collateral, and the amount raised from the ABS offering (before bankers’ fees), which is then amortized over the average life of the ABS bonds (at a discount rate equal to the US Treasury Bond rate of same maturity) and then expressed as percentage of the market value of the collateral. This difference can range from 10-30% of the Market Value of the collateral, and is highest where there is a senior/junior structure, and the junior/first-loss piece serves only as credit enhancement.

• Amortized Total Periodic Transaction Cost:
The Pre-offering Transaction Costs are amortized over the average life of the ABS, a rate equal to the interest rate on an equivalent-term US Treasury bond. The Periodic Transaction Costs are then added to the Amortized Pre-offering Transaction Costs to obtain Total Periodic Transaction Cost which is expressed as a percentage of the value of the pledged collateral.

The Pre-offering Transaction Costs include external costs (underwriters’ commissions/fees, filing fees, administrative costs (escrow, transfer agent, etc.), marketing costs, accountant’s fees, legal fees, etc.) and internal costs incurred solely because of the securitization transaction (namely, costs incurred internally by the sponsor/originator, viz. direct administrative costs, printing, etc.). Periodic Transaction Costs = admin. costs, servicing fees, charge-off expenses, escrow costs.

• Foregone Capital Appreciation:
The foregone average annual appreciation/depreciation of the value of the collateral minus the interest rate on demand deposits, with the difference expressed as a percentage of the Market Value of the collateral.

The sum of these four elements is typically greater than state-law usury benchmark rates.

Where the securitization is deemed a ‘true-sale’, there is an implicit financing cost which is typically usurious, because it is equal to the sum of the following:

• Base Cost of Capital:
The greater of the sponsor’s or originator’s annual weighted-average-cost-of-capital, or the annual percentage yield from the collateral.

• The Amortized Total Periodic Transaction Cost:
The Pre-Securitization Transaction Costs paid by the sponsor or originator and directly attributable to the offering is amortized over the life of the ABS, at a rate equivalent to the interest rate on an equivalent-term US Treasury bond, and the result (the Amortized Pre-Securitization Costs) is then added to the Periodic Transaction Costs for only one period in order to obtain the Total Periodic Transaction Cost, which is then expressed as a percentage of the market value of the collateral. This is the Amortized Total Periodic Transaction Cost.

The Pre-Securitization Transaction Costs include external costs (underwriters’ commissions/fees, filing fees, administrative costs (escrow, transfer agent, etc.), marketing costs, accountant’s fees, legal fees, etc.) and internal costs incurred solely because of the securitization transaction (viz. costs incurred internally by the sponsor/originator, namely direct administrative costs, printing). Periodic Transaction Costs = admin. costs, servicing fees, charge-off expenses, escrow costs.

• The Value Difference:
This is the difference between the Market Value of the collateral, and the amount raised from the ABS offering (before bankers’ fees), is amortized over the average life of the ABS bonds and the result is then expressed as percentage of the Market Value of the collateral.

• This difference can range from 10 to 30%, and is highest where the senior/junior structure is used and the junior piece serves only as credit enhancement.

• Amortized Unrealized Losses:
Any unrealized loss in the carrying amount of the collateral, is amortized over the estimated average life of the ABS, and the result for one period is expressed as a percentage of the book value of the collateral. Most Asset-Backed Securities collateral data are recorded in financial statements at the lower-of-cost-or-market.

• Foregone Capital Appreciation:
foregone average annual appreciation/depreciation of the value of the collateral minus the interest rate on demand deposits, with the difference expressed as a percentage of the Market Value of the collateral. The sum of these elements is typically greater than state-law usury benchmark rates.

B: ALL ‘TRUE-SALE’, DISGUISED LOAN’ AND ‘ASSIGNMENT
SECURITIZATIONS ARE ESSENTIALLY TAX-EVASION SCHEMES
In the United States, the applicable tax evasion statute is the US Internal Revenue Code Section 7201 7 which reads as follows: “…….Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution………”.

Under this statute and related case law, prosecutors
must prove three elements beyond a reasonable doubt:

(1): The actus reus (the guilty conduct) – which consists of an affirmative act (and not merely an omission or failure to act) that constitutes evasion or an attempt to evade either: (a) the assessment of a tax or (b) the payment of a tax.

(2): The mens rea or “mental” element of willfulness –
the specific intent to violate an actually known legal duty.

In the case of ‘true sale’ transactions, the tax evasion (8) occurs because:

(a): The sponsor determines the price at which the collateral is transferred to the Special Purpose Vehicle and hence, can arbitrarily lower/increase the price to avoid capital gains taxes – it being assumed here that the sponsor is a profit-maximizing entity and will always act to minimize its tax liability and to avoid any tax assessment;

(b): The sponsor typically retains a ‘residual’ interest in the SPV in the form of IOs, POs and “junior pieces”, which are typically taxed differently and on a different tax-basis compared with the original collateral: hence, the sponsor can lower the price of the collateral upon transfer to the SPV, and convert what would have been capital gains, into a non-taxable basis in the SPV “residual”;

(c): There is typically the requisite “intent” by the sponsor – evidenced by the arrangement of the transaction and the transfer of assets to the Special Purpose Vehicle;

(d): Before securitization, collateral is typically reported in the sponsors’ financial statements at book value (lower-of-cost-or-market: under both American and international accounting standards, loans and accounts receivable are typically not re-valued to market-value unless there has been some major impairment in value) which does not reflect true Market Values, and results in effective tax evasion upon transfer of the collateral to the SPV because any unrealized gain is not taxed;

(e): The actus reus is manifested by the execution of the securitization transaction and transfer of assets to the Special Purpose Vehicle;

(f): The mens rea or specific intent is manifested by the elaborate arrangements implicit in securitization transactions, the method of determination of the price of the collateral to be transferred to the Special Purpose Vehicle, the objectives of securitization, and the sponsor’s transfer of assets to the Special Purpose Vehicle;

(g): The unpaid tax liability consists of foregone tax on the capital gains from the collateral (the transaction is structured to avoid recognition of capital gains), and tax on any income from the collateral which is ‘converted’ into basis or other non-taxable forms;

(h): Income (from the collateral) that would have been taxable in the sponsor’s financial statements, is converted into non-taxable basis in the form of the SPV’s Interest-Only (IO) and Principal-Only (PO) securities: part of the Interest-Spread (the difference between the SPV’s income and what it pays as interest and operating costs) is paid out to PO-holders, and this transforms interest into return-of-capital or just capital repayment, with no tax consequences.

In the case of ‘disguised loan’ or ‘assignment’ securitization transactions,
the tax evasion occurs because:

(a): The sponsor determines the price at which the collateral is transferred to the SPV, and hence can lower/increase the price of the collateral to avoid capital gains taxes;

(b): The sponsor typically retains a ‘residual’ interest in the SPV which is typically taxed differently and on a different tax-basis compared to the original collateral: hence, the sponsor can lower the price upon transfer to the SPV, and convert what would have been capital gains, into non-taxable basis for tax purposes;

(c): The transfer of collateral to the SPV and the creation of interest-only and principal-only securities essentially converts what would have been taxable capital gains into non-taxable basis;

(d): Any gain in the value of the collateral is not recognized for tax purposes, because there has not been any ‘sale’;

(e): Where the ABS is partly amortizing, any capital gains are converted into interest payments;
(f): The actus reus is manifested by the execution of the securitization transaction and transfer of assets to the Special Purpose Vehicle;

(g): The mens rea or specific intent is manifested by the elaborate arrangements implicit in securitization transactions, the objectives of securitization and the sponsor’s transfer of assets to the Special Purpose Vehicle;

(h): The unpaid tax liability consists of tax on the capital gains from the transfer of the collateral (the transaction is structured to avoid recognition of a sale, whereas the transfer to the Special Purpose Vehicle is effectively a sale), and tax liability on any income from the collateral which is ‘converted’ into basis or other non-taxable forms (Interest-Onlys and Principal-Onlys), by securitization.

C – 1: IN ALL ‘TRUE-SALE’, ‘DISGUISED LOAN’ AND ‘ASSIGNMENT’ SECURITIZATIONS, THE
CONFLICT OF INTEREST INHERENT IN THE SPONSOR ALSO SERVING AS THE SERVICER,
CONSTITUTES FRAUD AND CONVERSION: SEE OUR STANDARD LEGAL NOTES BELOW.
In most securitization transactions, the sponsor eventually serves as the servicer of the Special Purpose Vehicle asset pool.

As servicer, the sponsor: (a) determines when there has been impairment of collateral; (b) selects collateral for replacement; and (c) monitors collateral performance.

To prove fraud, prosecutors must prove several elements beyond a reasonable doubt:

(1): The actus reus (the guilty conduct) – which consists of an affirmative act (and not merely an omission or failure to act) of misrepresentation of material facts. In securitizations, the sponsor typically makes material misrepresentations:

(a) The sponsor/servicer selects the assets to be transferred to the SPV, and the terms of the offering Prospectus typically misrepresent the level of objectivity and fairness of the servicer/sponsor;

(b) The sponsor/servicer selects collateral for substitution where there are problems – the past and present disclosure statements and ABS offering documents materially misrepresent the sponsor/servicer’s objectivity/fairness.

(2): The mens rea or ‘mental’ element of willfulness – the specific intent to misrepresent the sponsor/servicer’s acts, truthfulness and objectivity/fairness, is manifested by the dual rôle of sponsor/servicer which constitutes a conflict-of-interest. Mens rea is also clearly inferable from the facts and circumstances: the sponsor/servicer clearly has significant economic, psychological and ‘legal’ incentives to maximize its profits by:

(a): Delaying substitution of collateral for as long as possible;

(b): Delaying recognition of collateral impairment, and:

(c): Substituting impaired collateral with sub-standard collateral; all of which make the sponsor highly unsuitable for the rôle of servicer;

(3): The reliance element: ABS investors rely heavily on the structure/arrangements, contracts and disclosure statements in securitizations, which are always relatively complex. These form the primary source of knowledge and valuation terms for the investor;

(4): The victim(s) suffer(s) loss as a result of the misrepresentations (whether of direct or proximate causation). Investors suffer losses because of the sponsor’s/servicer’s misrepresentations of its obligations, fairness, objectivity and fiduciary duties:

Specifically:

(a) Investors’ estimates of the values of Asset-Backed Securities are inaccurate and too high due to the servicer’s/sponsor’s misrepresentations;

(b) Investors incur unnecessary trading costs to re-balance their portfolios as the Asset-Backed Security becomes riskier;

(c) Investors and the sponsor/servicer incur additional monitoring costs whenever there is any report of impairment of collateral or substitution. Furthermore, in the ABS sales process, the underwriter makes certain representations concerning the effectiveness and predictability of the collection process. Under certain conditions, investors relying on such representations may have a securities fraud claim if the servicer fails to perform, such as in bankruptcy.

C-2: IN ALL ‘TRUE-SALE’, ‘DISGUISED LOAN’ AND ‘ASSIGNMENT’ SECURITIZATIONS WHERE
THE SPECIAL PURPOSE VEHICLE IS A TRUST, THE DECLARATION OF TRUST IS VOID AS IT EXISTS FOR AN ILLEGAL PURPOSE. [ALL CONTRACTS STRUCK FOR AN ILLEGAL PURPOSE ARE NULL AND VOID, SOMETHING THE CRIMINAL ENTERPRISES DON’T WANT YOU TO KNOW].
The declaration of trust relating to the SPV is void because the intent and purpose of the SPV is illegal and unconstitutional as described in this analysis and in Nwogugu (2006).

D: OFF-BALANCE SHEET TREATMENT OF ASSET-BACKED SECURITIES (BOTH
FOR ‘TRUE-SALE’ AND FOR ‘ASSIGNMENT’ TRANSACTIONS) CONSTITUTES FRAUD
Under prevailing accounting rules in the United States and most countries, if certain criteria were met, the debt raised by the Special Purpose Vehicle in securitization can be treated as off-balance sheet debt. However this requires compliance with three criteria:

(i) The Special Purpose Vehicle should be truly independent from the sponsor and the directors, fiduciary administrative duties notwithstanding.

(ii) The sponsor’s transfer of the assets to the SPV should be a ‘true sale’ and the sponsor should not have any ongoing economic interest in the assets.

(iii) The form and substance should transparently be identical, and the structure should not appear to be illusory or deceptive.

Nevertheless, these off-balance-sheet treatment criteria have been recently reformed by changes in accounting standards. The British-based International Accounting Standards Board and the US FASB are moving towards stricter reporting standards. Specifically:

• FIN 46 (FASB): Effective in 2003, FIN 46 applies only to companies subject to regulation by the FASB. Its objective is to substantially tighten the criteria necessary to obtain off-balance-sheet treatment for Special Purpose Vehicles, and its main thrust is capital adequacy.

• FIN 46 also imposes an obligation on originators to consolidate the accounts of an SPV (denying off-balance-sheet treatment) unless the total equity at risk is regarded as sufficient to enable the SPV to finance its own activities.

• IAS 32, IAS 39, and IFRS 7: International Accounting Standards (IAS) 32 covers the disclosure and presentation of financial instruments, but from 2007 onwards the disclosure aspects were replaced by the introduction of International Financial Reporting Standard (IFRS) (7). IAS 39 deals with the recognition and measurement of financial instruments, and has been challenged in two aspects:

(1): Introducing the concept of “fair value” accounting for financial instruments and (2): whether SPVs should be consolidated back into the balance sheet of the originator. Like Fin 46, IAS 32 may result in consolidation of most SPVs on-balance-sheet of the sponsors.

• Basel II: The Basel II disciplines are aimed at the global banking industry and call for a more scientific measurement of risk and of capital requirements for banks in order to support that risk. Since the general expectation has been that, in overall terms, the proposals could require the banking industry to maintain a higher rather than lower capital base, the proposals have met resistance from many banks. The Basel Committee’s rules/codes are not binding because the Committee is not a regulator: a situation exploited by the racketeering institutions.

But off-balance sheet treatment of ABS (Asset-Backed Securities) debt in securitizations, constitutes fraud because:

(1): The mens rea or ‘mental’ element of willfulness – the specific intent to misrepresent the true ‘Trust’ nature of the Special Purpose Vehicle debt – is manifested by the elaborate arrangements and structure of the securitization transaction.

(2): The actus reus (the guilty conduct): This consists of the affirmative act of misrepresentation of materials facts by not consolidating the Special Purpose Vehicle on the sponsor’s Balance Sheet.

In securitization, consolidation of the Special Purpose Vehicle onto the sponsor’s financial statements is warranted because the sponsor:

(a) Typically retains a residual economic interest in the Special Purpose Vehicle;

(b) Functions as servicer of the Special Purpose Vehicle asset pool – which grants the sponsor significant control over the assets and the SPV’s operations;

(c) Determines recognition of impairment of collateral, and selects and provides assets for ‘substitution’ of collateral; and:

(d) Typically misrepresents the level of objectivity and fairness of the servicer/sponsor in disclosure statements.

Taken together, these factors and all the aforementioned new accounting standards constitute sufficient actus reus.

(3): The reliance element:
The sponsor’s current and his prospective shareholders and other investors rely heavily on the structure/arrangements of securitizations, associated disclosure statements and assurances of off-balance sheet treatment of SPV debt in securitizations, which are relatively complex. These form the primary source of knowledge and valuation terms for the investor.

(4): The victim suffers loss as a result of the misrepresentation (direct or proximate causation): Investors suffer loss because of the sponsor/servicer’s misrepresentations of its obligations:

(a) Investors’ estimates of the values of the sponsor’s equity are inaccurate and excessively high due to the servicer’s/sponsor’s misrepresentations of the SPV debt;

(b) Investors incur unnecessary trading costs to re-balance their portfolios as the sponsor is deemed more risky;

(c) The investor and the sponsor/servicer incurs additional monitoring costs whenever there is any report of impairment of collateral or substitution.

E: ALL ‘TRUE-SALE’, ‘DISGUISED LOAN’ AND ‘ASSIGNMENT’
SECURITIZATIONS INVOLVE FRAUDULENT CONVEYANCES

Any transfer or conveyance of the assets of a debtor that is deemed to be made for the purposes of hindering, delaying or defrauding actual or potential creditors, may be determined to be a Fraudulent Conveyance (9).

In the United States, three sets of laws cover potential Fraudulent Conveyances:

(a) Section 548 of the US Bankruptcy Code (the Code); or

(b) Most States have adopted the Uniform Fraudulent Transfer Act (UFTA) (10) or else the older Uniform Fraudulent Conveyance Act (UFCA); or

(c) Fraudulent Transfers claims can also be made under a theory of constructive fraud, in which circumstantial evidence may warrant a finding that Fraudulent Transfers were made with the primary purpose of shielding assets from current or future creditors. Although each US State has its own laws regarding the appropriate elements of proof of constructive fraud, Section 548(a)(2)
of the US Bankruptcy Code permits an inference of constructive fraud if the following factors exist:

(1): The debtor received less than reasonably equivalent value for the property transferred; and:

(2): The debtor either: was insolvent or became insolvent as a result of the transfer, retained unreasonably small capital after the transfer, or made the transfer with the intent or belief that it would incur debts beyond its ability to pay.

The following are the various theories of Fraudulent Conveyance
within the context of securitization.

E-1: Sponsor/Originator receives insufficient value for assets transferred:

All ‘true sale‘ as well as ‘assignment’ securitizations involve Fraudulent Conveyances (as defined within the US Bankruptcy Code and the Uniform Fraudulent Transfer Act) because the originator receives insufficient value for assets that it transfers to the Special Purpose Vehicle (11), (12):

(i): Horizon mismatch:
In the case of receivables and fixed income assets, since the originator/sponsor sells these assets before their maturities, their effective yields and values are much lower than their stated yields, and hence, the originator receives less-than-normal value for assets transferred.

(ii): The originator always incurs substantial cash and non-cash transaction costs in such transfers, which reduces the net-value it receives from the transfer to the Special Purpose Vehicle. These costs include all legal fees, accounting fees, underwriting fees, monitoring costs, administrative costs, regulatory compliance costs, capital-budgeting costs (because the decision to securitize has inherent negotiation costs), conflict costs and resource allocation costs, etc.;

(iii): In these asset transfers, the originator loses all the future appreciation of the transferred assets: the transfers are done at book values or stated adjusted costs. The asset valuations for the transfers don’t consider future increases in asset value, and hence are an implicit undervaluation.

(iv): Where the assets transferred have residual values (as in computer leases and equipment leases), the originator often cannot accurately calculate such residual values and does not incorporate them in asset valuation, and loses such residual value; and hence, receives less than normal value for the assets transferred;

(v): In some securitizations, the originator’s transfer of assets to the SPV is backed by recourse (to the originator’s assets) and such recourse has economic value that reduces the net-value that the originator receives from the transfer. [Higgin & Mason (2004), Pantaleo et al. (1996) and Plank (1991) (13) describe the basis for the value of such recourse].

(vi): Where the originator and sponsor is financially distressed, securitization is often the chosen form of financing, and under Fraudulent Conveyance laws, securitizations are illegal because:

(1): Securitizations increase the bankruptcy risk of the originator/sponsor;

(2): The distressed company’s assets are typically valued at higher interest rates (which yield lower asset values) and hence, the originator loses value in the transfers.

(vii): The originator’s/sponsor’s net-cash proceeds from the securitization transaction is often significantly less than either the pre-transaction carrying value of the collateral, or the net realizable value of the collateral (liquidation value in a supervised open auction) – primarily because of transaction costs, over-collateralization, etc..

E-2: ‘Intent to hinder, delay or defraud creditors’:
Implicit pre-petition waiver of right to file for bankruptcy:

All ‘true sale‘ as well as ‘assignment’ securitizations involve Fraudulent Conveyances (as defined in the US Bankruptcy Code and the Uniform Fraudulent Transfer Act) because as described in this analysis, such securitizations are the equivalent of illegal pre-petition waivers of the right to file bankruptcy, and the waiver of the bankruptcy stay – all of which are sufficient evidence of ‘intent to hinder, delay, or defraud any creditor of the debtor’, which is the major element of Fraudulent Conveyance under the UFTA and the US Bankruptcy Code.

E-3: ‘Intent to hinder, delay or defraud creditors’:
originator’s transfer of assets to the Special Purpose Vehicle:

All ‘true sale‘ and ‘assignment’ securitizations involve Fraudulent Conveyances (as defined in the US Bankruptcy Code and the Uniform Fraudulent Transfer Act) because the originator‘s/sponsor‘s mere act of transferring assets to an SPecial Purpsoe Vehicle reduces the values of any of its unsecured creditors’ claims – i.e. trade creditors, holders of any unsecured loans, holders of certain preferred stock, etc.. (14).

Without such transfers, the unsecured creditors would have had access to such assets. This is sufficient evidence of ‘intent to hinder, delay or defraud’ existing creditors.

[It follows that the Rule of Law has been comprehensively flouted,
with the rot starting and condoned at the highest levels – Ed.].

E-4: ‘Intent to hinder, delay or defraud creditors’:
Originator’s transfer of assets to the SPV has not been undertaken on an arms’-length basis:

The originator’s transfer of assets to the SPV via a ‘true sale’ or ‘assignment’ is typically not done by means of arms’-length transactions. Most originators have substantial influence/control over the valuation of collateral, the selection of the appraiser and valuers, the choice of appraised collateral, the corporate form and life of the SPV, and the selection of the officers/trustees of the SPV. Hence, the originator can manipulate the values of collateral for accounting and economic purposes. The originator typically creates, funds and staffs the SPV – hires the SPV’s officers and directors and determines the SPV’s corporate governance policies. The combination of such excessive control, and the originator’s transfer of assets to the SPV is prima facie evidence of ‘intent to hinder, delay or defraud’ the originator’s existing and future creditors.

E-5: Securitization increases the originator’s bankruptcy risk:
Securitization can increase the bankruptcy risk of an originator (15), where:

(a) The cash proceeds from the securitization transaction are significantly less than either the carrying value of the collateral, or the net realizable value of the collateral (liquidation value in a supervised auction); or:

(b) Management reinvests the cash proceeds of securitization in projects that yield returns that are less than what the collateral would have yielded, or less than the company’s cost of debt.
Securitization via ‘assignments’ or else ‘disguised loans’ increases the risk to be borne by the originator/sponsor, and also increases its post-transaction cost of capital primarily because:

(a) The amount raised is less than the assets pledged;

(b) The pledge of assets to the SPV reduces the originator’s borrowing
capacity and financial flexibility;

(c) The pledge of assets to the Special Purpose Vehicle reduces the originator’s ability to repay other debt. Hence, the originator/sponsor loses value in the transfer of assets to the SPV.

F: SECURITIZATION USURPS UNITED STATES BANKRUPTCY LAWS AND HENCE IS ILLEGAL
Securitization undermines US Federal bankruptcy policy, because it is used (in lieu of secured financing) as a means of avoiding certain bankruptcy-law restrictions (16). Indeed, the origins of securitization in the United States can be traced directly to attempts by banks and financial institutions to avoid bankruptcy law restrictions.

An analysis of the legislative intent of the US Congress with regard to the US Bankruptcy Code confirms that securitization contravenes most policies of the US Bankruptcy Code (17).

• IT ALSO CONTRAVENES PUBLIC POLICY, WHICH EMBRACES:

(a): Recognition of financial distress;
(b): Stay of bankruptcy proceedings;
(c): Determination of claims and priorities of security interests;
(d): Fair division of value;
(e): The continuance or liquidation decision;
(f): Efficient reorganization.

In most cases, insolvency often occurs before management decides to file for bankruptcy. Many firms that are either financially distressed and or technically insolvent continue to operate as if they are normal companies, and enter into securitization transactions. often, securitization enables them to reduce the effect of actual and or perceived low credit ratings. Securitization is often a major strategic choice for financially distressed corporations (18). Under the US Internal Revenue Tax Code, securitization qualifies as a reorganization. The underlying issues are as follows.

F-1: Implicit waiver of right to file for bankruptcy and/or Stay of Bankruptcy:

Securitization involves an implicit (and often an express) waiver of the debtor’s, originator’s, sponsor’s right to file for voluntary bankruptcy. This is achieved by using a bankruptcy-remote Special Purpose Vehicle and segregating the assets that otherwise would have been part of the bankruptcy estate (19), (20). Securitization involves an implicit (and very often an express) waiver of the creditor/Asset-Backed Securities-investor’s right to file for involuntary bankruptcy (21), (22).

US Courts have repeatedly held that such waivers are void as against public policy. In the absence of securitization, these same investors/creditors would have been creditors/ a.k.a. lenders to the sponsor/originator. This implicit waiver is achieved by employing a Special Purpose Vehicle and segregating the assets that otherwise would have been part of the bankruptcy estate; and by various forms of credit enhancement.

Without the automatic stay of the Bankruptcy Code, the debtor/sponsor would not need to transfer assets to an SPV. Carlson (1998) traces the history of securitization to direct and specific efforts/collaborations to avoid the impact of US bankruptcy laws (23).

Furthermore, there is a distinct difference of opinion among US courts about the enforceability of pre-petition waivers (of rights to file for voluntary or involuntary bankruptcy) which has not been resolved by the US Supreme Court (24). However, the standard securitization processes diverge substantially from the conditions in cases where the courts held that pre-petition waivers (or rights to file for bankruptcy) were unenforceable.

F-2: The U.S. Bankruptcy Code expressly invalidates certain pre-filing transfers:

Sections of the US Bankruptcy Code expressly invalidate certain types of pre-filing transfers, payments and transactions (that occur within a specific time period before the filing of bankruptcy). Most securitizations fall under the classes of voidable pre-filing transfers.

• Hence, under these foregoing circumstances/conditions, bankruptcy laws and associated principles are implicated and apply where the firm has not filed for bankruptcy.

Therefore, any pre-bankruptcy filing transactions that invalidate or contravene the principles of Bankruptcy Codes are illegal. The bankruptcy-remoteness characteristic of securitizations prevents the efficient functioning of US bankruptcy law, and jeopardises the law.

G: NEW THEORIES ON THE EFFECTS OF SECURITIZATION ON BANKRUPTCY EFFICIENCY
The following are new theories that explain how securitization
contravenes the basic principles of US bankruptcy laws:

G-1: The illegal wealth-transfer theory:

Securitization can result in Fraudulent Conveyance and in illegal transfer of wealth where the transaction effectively renders the originator/issuer company technically insolvent; or fraudulently transfers value to the SPV (in the form of low collateral values) and then to the ABS/MBS [Mortgage-Backed Securities] bond holders (in the form of low bond prices, and or high interest rates) (25). Courts have held that stripping a company of the ability to pay judgment claims is a ‘predicate act’ that is actionable under Federal R.I.C.O. statutes (26). Securitization can also result in illegal wealth transfers to the intermediary bank where it retains a residual interest in the Trust/SPV (residual securities) or is over-compensated (excessive cash fees, trustee positions, underwriter is granted a percentage of securities offered, etc.).

G-2: The Priority-changing theory:

To the extent that bankruptcy laws are designed to facilitate rehabilitation of troubled companies, and increase efficient allocation of debtor assets to creditors, securitization enables the debtor to defeat the Absolute-Priority principle; and effectively to re-arrange priorities of claims, particularly where the debtor/originator does not have any secured claims (but has only unsecured claims). This is achieved by securitizing unencumbered assets and applying credit enhancement to provide higher-quality securities (which is the equivalent of higher priority) to other creditors.

G-3: The Facilitation of inefficient-continuance theory:

Securitization enables the debtor/originator to change the progression of financial distress, by supplying cash that typically lasts for short periods of time, and often at a high effective cost of funds. This implicates the principles of ‘inefficient continuance’ (where an otherwise non-viable company that should be liquidated, sold/merged or substantially reorganized, continues to operate solely as a result of short-term solutions and or bankruptcy court orders), and hence, the sections of the Sarbanes-Oxley Act (‘SOX’) – which require certification of solvency of the company and adequacy of internal controls, and also carry criminal penalties for non-compliance (27).

The question of whether ‘inefficient continuance’ has occurred is a matter of law that should be decided by judges. Thus, all else remaining constant, where the necessary elements occur, (a securitization and ‘inefficient continuance’ and management’s certification of solvency and adequate internal controls), management and the company become criminally liable.

G-4: The information-content effect theory:

Securitization changes and distorts the perceived financial position of the originator/sponsor, because various forms of credit enhancement (senior/junior pieces, loan insurance, etc.) are used to achieve a high credit rating for the Special Purpose Vehicle – which may be misconstrued by stock-market investors as evidence of good prospects for the originator-company. To the extent that all securities offerings have relevant information content and associated signalling, then securitization by financially distressed companies effectively conveys the wrong signals to capital markets and hence, changes the expectations of creditors and shareholders (and in the case of bankruptcy, makes it more difficult to form consensus efficiently on a plan of reorganization once the bankruptcy petition is filed). In this realm, investor and creditor expectations are critical and have utility value and typically form the basis for investment/disinvestment and for negotiations about restructuring or any plan of reorganization.

US Courts have held that persons that create false impressions about the financial condition of a company are potentially liable under Federal R.I.C.O. statutes (28).

G-5: The information-content effect theory:

To the extent that securitzation defers or eliminates a potential creditor’s rights to file for involuntary bankruptcy, then securitization can be deemed to be fraudulent, and gives rise to criminal causes of action such as deceit, conversion, etc. The creditor’s right to file for a debtor’s involuntary bankruptcy is a valid property right that arises from State property law, State contract law, State constitutional laws, and Federal bankruptcy laws (29). Deprivation of, or interference with, this property right is a violation of the US Constitution. Securitization can defer or eliminate this property right, and hence violate the US Constitution where the transaction:

(a): Effectively rearranges priority of claims; or:

(b): Reduces the debtor-company’s borrowing capacity (value of unencumbered/unpledged collateral) to the detriment of secured and or unsecured creditors; or:

(c): Uses the proceeds of the transaction to pay-off some (but not all) members of a potential class of creditors that can file an involuntary bankruptcy petition.

H: SECURITIZATION CONSTITUTES A VIOLATION OF FEDERAL R.I.C.O. STATUTES
In ‘true-sale’, ‘disguised loan’ or ‘assignment’ securitizations, there are fraudulent transactions which serve as ‘predicate acts’ under Federal R.I.C.O. statutes (30).

The specific R.I.C.O. sections implicated are:
• Section 1341 (mail fraud)
• Section 1343 (wire fraud)
• Section 1344 (financial institution fraud)
• Section 1957 (engaging in monetary transactions in property
derived from specified unlawful activity).
• Section 1952 (racketeering).

The prices of the collateral are determined in negotiations between the sponsor/issuer and the intermediary bank and on occasion, the SPV’s trustees. This presents opportunities for ‘predicate acts’ (ie. fraud, conversion, etc.) because:

(1): The collateral could be under-valued or over-valued. There are no State or Federal laws that require independent valuation of collateral or appointment of independent/certified trustees in securitization transactions. The parties involved are often business acquaintances.

The originatorsponsor controls the entire process.

(2): The trustees can be, and are influenced by the sponsor/originator and or intermediary investment-bank.

(3): The required disclosure of collateral is sometimes insufficient. Specifically:

(a): It does not include historical performance of collateral pools;
(b): It does not include criteria for selection of collateral and for substitution of collateral;
(c) Criteria for replacement of impaired collateral are sometimes not reasonable;

(4): Mail and wire are used extensively in communications with investors and participants
in the transaction; and:

(5): There is compulsion – because the intermediary or investment bank has very substantial incentives to under-price the securities, and to inflate/deflate the value of the collateral in order to consummate the transaction and earn fees.

The entire securitization process constitutes violations of Federal R.I.C.O. (31) statutes because:

(1): There is the requisite criminal or civil ‘enterprise’ – consisting of the sponsor/issuer, the trustees and the intermediary bank. These three parties work closely together to effect the securitization transaction.

(2): There are ‘predicate acts’ (32) of:

(a): Mail fraud – using the mails for sending out materials among themselves and to investors.
(b): Wire fraud – using wires to engage in fraud by communicating with investors.
(c): Conversion – where there isn’t proper title to collateral.
(d): Deceit: Misrepresentation of issues and facts pertaining to the securitization transaction.
(e): Securities fraud: disclosure issues.
(f): Loss of profit opportunity.
(g): Making false statements and or misleading representations about the value of the collateral.
(h): Stripping the originator/issuer of the ability to pay debt claims or judgment claims in bankruptcy court – a state of affairs that may apply where the sponsor is financially distressed and the cash proceeds of the transaction are significantly less than the value of the collateral.

(3): There is typically the requisite ‘intent’ by members of the enterprise – evident in knowledge (actual and inferable), acts, omissions, purpose (actual and inferable) and results. Intent can be reasonably inferred from:

(a): The existence of a sponsor that seeks to raise capital – and cannot raise capital on better terms by other means;
(b) The participation of an investment bank that has very strong incentives to consummate the transaction on any agreeable (but not necessarily reasonable) terms.

I: SECURITIZATION CONSTITUTES VIOLATIONS OF U.S. ANTITRUST LAWS
The various processes in securitization constitute egregious violations
of the US Antitrust statutes (33), (34), (35). Specifically:

I-1: Market concentration:

The American Asset-Backed Securities and Mortgage-Backed Securities markets are dominated by relatively few large entities such as FNMA, Freddie Mac, the top five investment banks (all of which have conduit programs), and the top five credit card issuers (MBNA, AMEX, Citigroup, etc.), etc.. As a consequence, the top five ABS/MBS issuers control more than 50% of the US ABS/MBS market.
This constitutes illegal market concentration under US Antitrust legislation

I-2: Market integration:

The American Asset-Backed Securities and Mortgage-Backed Securities markets are essentially both national and international (that is to say, geographically-diverse entitiesand individuals participate in each transaction). Each Asset-Backed Securities (ABS) transaction/offering typically involves a ‘roadshow’ which consists of presentations to investors in various cities.

The cost of the roadshow is often paid by the underwriter(s) before its fees are paid by the sponsor. In addition, there are printing, mailing, traveling and administrative costs that increase with the greater geographical dispersion of investors. This has two main effects:

(a): It reduces competitive pressure on dominant investment banks and groups of investment banks (to the detriment of smaller investment banks); and:
(b): It raises market-entry barriers by making it more expensive to conduct ‘roadshows’ for new offerings. Hence, the market integration created by the industry practices of securities underwriters is anti-competitive and violates the Sherman Act, and the FTC Antitrust statutes.

I-3: Syndicate collusion:

The syndicates (of investment banks) used in distributing Asset-Backed Securities and Mortgage-Backed Securities (ABS/MBS) essentially collude to determine:
(a): The price at which each ABS tranche is sold;
(b): Which investors can purchase different tranches.

Collusion occurs because:

(a): In the typical Asset-Backed Securities (ABS) offering, the price determination process is not transparent or democratic because the lead underwriters typically negotiate the offering price with the originator/sponsor and the prospective investors (although some underwriters use auctions).

The lead underwriters purchase most of the new-issue ABS, and the balance is typically sold to ‘junior’ syndicate members (who presumably can arrange to buy more Asset-Backed Securities from the lead underwriters than were allocated to them).

In essence, the true price-demand characteristics and negotiability of junior underwriting-syndicate members are hidden simply because of the structure of the underwriting/bidding process. Hence, the existing syndicate-based ABS distribution system for new issue Asset-Backed Securities distorts the true demand for the ABS, clearly reduces competition, and facilitates and results in collusion, and therefore constitutes violations of the Sherman Act and the Federal Trade Commission (FTC) Antitrust statutes.

(b) Similarly, the ABS allocation process is not transparent. The lead underwriter and junior underwriters allocate new-issue ABS to investors based on subjectively determined ‘suitability’ and also ‘in-house criteria’. There are no established or generally accepted important guidelines for such ‘in-house’ criteria and associated allocation.

The lead and junior underwriters can typically collude to determine that only certain investors deemed appropriate are allocated the Asset-Backed Securities in question. Hence, the antitrust violation (collusion) occurs solely because of the underwriters’ discretionary choice of investors to whom ABS are allocated. This is more evident where the poll of investors consists mostly of institutional investors – so that final offering prices are more sensitive to choice of investors, and prices can change significantly simply by changes in allocation to investors. In such circumstances, the collusion is reasonably inferable here, so long as there are no statutory or generally accepted allocation criteria that have been approved by the NASD or other trade associations.

I-4: Price formation:
The prices of ABS securities may often be linked to the prices/yields of US Treasury bonds – the credit risk of ABS/MBS being priced relative to the risks of US Treasury bonds.

• This system distorts the true demand and supply balance for the ABS/MBS, and erroneously incorporates the demand/supply relationships of the US Treasury Bond market, into the ABS/MBS markets. The key question then, is whether there are conditions under which the US Treasury Bond market is completely de-coupled from the ABS market: or, phrased differently, whether there is sufficient justification for actual or perceived de-coupling of the US Treasury Bond market and the US ABS market. These conditions are as follows:

(1): The credit fundamentals of the US Treasury market differ substantially from those of the ABS market. (The Treasury market is much more sensitive to US Federal Reserve actions, currency fluctuations, consumer spending, Federal/State fiscal policies, etc.). The ABS market tends to be more sensitive to industry-specific and sometimes company-specific risks/factors.

(2): The use of various credit enhancement techniques and products further exacerbates the differences in the credit trends and/or quality in the US Treasury and ABS markets. In Asset-Backed Securities transactions, most forms of credit enhancement create a floor, but do not limit or affect other industry exposures or company exposures. In the US Treasury market, investors are subject to a greater variety of risks.

(3): Investors’ objectives in the US Treasury Bond markets differ from those of investors in Asset-Backed Securities markets. Hence, investors are very likely to view these two markets and the underlying risks differently, and should value the securities differently.

I-5: Vertical foreclosure:

In the ABS/MBS markets, some investment banks and commercial banks are active in almost all phases of the securitization process: origination (through in-house conduits); due diligence; disclosure and pricing; new issue securities offerings; and also in secondary-market trading. Similarly, non-bank entities can use their own asset portfolios (the origination of credit card receivables or mortgage receivables), shelf-registration and marketing procedures and/or Regulation-D/Rule 144A procedures (pricing and new-issue offerings) and in-house trading (secondary-market trading) to participate in almost all aspects of securitization processes.

Hence, these companies have almost no incentive to, and are not required to make their infrastructure and relationships available to competitors.

• Such vertical foreclosure constitutes violation of US antitrust laws.

I-6: Tying (36):

This arises in the following manner:

(a): The sponsor is sometimes formally or informally required to purchase other financial services (loans, letters of credit, custody services, etc.) from the investment bank, in order to effect the securitization transaction;

(b): The investors are sometimes required simultaneously to purchase two or more tranches of an ABS offering, or to promise to buy the same or similar ABS/MBS securities in order to be allocated ABS in new offerings;

(c): The sponsor and or investment bank may formally or informally require investors to purchase minimum dollar volume of ABS in specific offerings in order to be eligible for ‘allocations’ in future offerings. These acts constitute tying, which is anticompetitive and therefore illegal.

I-7: Price-fixing (37):

The Locus-shifting Theory is introduced here. Locus-shifting occurs when a potential and obvious party to a price-fixing scheme is effectively replaced (in pricing negotiations) by a third party that has the resources and willingness to alter dramatically the pricing of goods and services in either the transaction, or via a series of transactions or in the sector or the industry as a whole. Normally, price-fixing would occur between two sponsors or two intermediary banks.

Since the intermediary-investment bank is central to ABS offerings, and associated pricing and negotiations, the price fixing should be deemed to occur between the sponsor/originator and the investment bank (or between two sponsors).

Since each active investment binstitution typically underwrites many offerings simultaneously, and essentially controls the pricing of each new-issue ABS, the investment banks are the locus of said price fixing and are potentially liable for the associated antitrust violations. Further evidence of price fixing maybe obtained by analysing:

(a): The yield differentials of various ABS offerings in various asset classes (ie. automobiles, home equity, mortgages, etc.) by different sponsors within a specific block of time;

(b): The price differentials of various ABS offerings in various asset classes (autos, home equity, credit cards, mortgages, etc.) with the same rating, within a specific block of time.

I-8: Price-fixing (38):

Exclusive contracts facilitate and enhance anti-competitive behavior by contractually restricting conduct by and trade among participants in the market. In the US ABS/MBS markets, existing illegal exclusive contracts include:

(a) Contracts preventing the intermediary investment bank from providing financial services to other prospective securitization sponsor-companies in the same industry/sector;

(b) Contracts (by the sponsor, underwriter(s) or third parties) that prevent or limit the formation of a syndicate of securities dealers;

(c) Contracts that prevent the sponsor from selling securities through other underwriters, other than an appointed intermediary investment bank. These types of contract constitute direct violations of US Antitrust statutes.

I-9: Price-fixing (39):

There are several classes of Asset-Backed Securities:

(1): Securities that involve pure ‘pass-through’ of cash- flows, and hence rights to payment of cash from the SPV pool, but no ownership interest in the pool to:

(a): Interest-Only (IO) securities;
(b): Principal-Only (PO) securities; and:
(c): ‘Traditional’ Asset-Backed Securities that pay both interest and principal.

(2): Securities that confer ownership interests in the underlying pool to:

(a): Interest-Only (IO) securities;
(b): Principal-Only (PO) securities; and:
(c): ‘Traditional’ Asset-Backed Securities that pay both interest and principal.

(3): Debt-type securities that involve a security interest in the underlying collateral:
these manifest themselves as:

(a): Interest-Only (IO) securities;
(b): Principal-Only (PO) securities; and:
(c): ‘Traditional’ Asset-Backed Securities that pay both interest and principal.

In many instances, the Special Purpose Vehicle (SPV) offers many tranches in each of the above-mentioned classes of ABS. The tranches within each class typically vary by term, interest rate, duration, and bond-rating/risk-rating. Hence, in any situation where the tranches don’t have any priority as to security interests or rights-to-payment of cash flows from the pool, such stratified offerings within each class (‘IO’, or ‘PO’ or ordinary; or ‘pass-through’, collateral-type or equity-interest) constitute price discrimination because the underlying ‘asset’ and risk is essentially the same, although different securities are being offered in the same transaction (or in a series of transactions), at different prices to investors, based on the same underlying pool of assets.

• The distinguishing and critical element is that there is no contractually agreed-upon priority of claims as to security interests or right-to-payment of cash from the pool of assets.

I-10: Predatory pricing (40):

This occurs when investment banks under-price ABS offerings in order to obtain more investors, and to build name recognition for a particular issuer (that does or intends to come to the ABS market regularly). Evidence of predatory pricing may be inferred or established by:

(a): Comparing the offering prices of various new-issue ABS bonds sold by one sponsor/originator, in the same asset class (auto loans, home equity, credit cards, etc.), but at different times of the year, to offering prices of similar ABS bonds sold by other regular ABS sponsors/originators in the same time periods.

(b): Running regressions to identify any statistically significant relationship between:

(1): The difference in the yield of company XYZ’s ABS bond and the yields of other similar Asset-Backed Securities bonds; and:

(2): Various independent variables such as yield, price, asset type, bond rating, duration, industry, amount of offering, frequency of ABS offerings, types of investors, etc..

(c): Comparing the offering prices of various new-issue ABS bonds underwritten by one investment bank (in the same asset class, but at different times of the year) to offering prices of similar Aset-Back Securities bonds underwritten by other investment banks in the same time periods.

I-11: Rigging of allocations:

Most Asset-Backed Securities offerings are done via allocations of securities by investment banks to their brokerage customers:

(1): Most sponsors issue their Asset-Backed Securities or Mortgage-Backed Securities through bids by investment banks. Most bids for ABS securities are won by a few investment banking firms.

• This may suggest that customers have been ‘allocated’ among investment banks, which is also an indication of collusion.

(2): On occasion, the primary underwriters subcontract work (re-sell securities)
to secondary underwriters.

J: SECURITIZATION INVOLVES VOID CONTRACTS
The process of securitization involves several contracts that are either signed simultaneously or are all signed within a short timeframe. Many of these contracts are void and wholly illegal due to:

(a) Lack of consideration (41): There is no consideration in many contracts used in effecting securitizations. Many of these contracts are unilateral executory undertakings and contain illusory promises. There are three main issues:

(1): Unilateral Executory Promise (42): A unilateral executory promise is not consideration.
The following are some unilateral executory contracts in securitizations:

• The promise made by the Special Purpose Vehicle to pay out periodic interest, whether contingent or non-contingent on whether the collateral pays cash interest.

• Collateral-substitution Agreements contain a promise whereby
the sponsor agrees to substitute impaired collateral.

• Assignment Agreement: Assignment of future collateral (not yet existing)
may be deemed a unilateral executory promise by the assignor.

• Transfer Agreement: The sponsor agrees to transfer the collateral to the Special Purpose Vehicle, and the SPV in return pays cash to the sponsor.

(2): Illusory Promises (43): An illusory promise is not a valid consideration for a contract.

The following are some illusory promises inherent in securitization transactions:

• The Subscription/Purchase Agreement: The SPV’s promises to acquire the collateral with the cash raised from investors are essentially illusory promises. These promises are embedded in the offering Prospectus, but are typically not included other corporate documents. In most cases, the offering Prospectuses don’t state the exact steps in the SPV’s promised purchase of the collateral.

• The Purchase or Subscription Agreement: The Special Purpose Vehicle’s investors purchase beneficial interests in the SPV or the SPV’s debt. These beneficial interests evidence:

(a): The right to receive payments from the SPV; or:
(b): An ownership interest in the underlying collateral, or:
(c): A ‘participation’ in the underlying collateral.

However, at the time of executing this agreement, the only consideration that the SPV can grant to investors in exchange for the purchase amount, consists of promises to purchase the collateral in the future, and to make payments from the SPV’s assets.

Hence, an existing asset is being exchanged for a future asset that does not exist as of the date of the purchase/subscription agreement.

• Furthermore, all securitization offerings are done pursuant to ‘Subscription Agreements’ and likewise pursuant to Investor Questionnaires – both of which documents have to be signed by the prospective investor. None of the agreements signed by the investor as part of his/her purchase of the Special Purpose Vehicle’s Asset-Backed Securities expressly incorporates the promises that are embodied in the offering Prospectus. What typically exists is an implied agreement to subject the investor to the SPV’s articles of incorporation, Trust Indenture, and or Trustees’/Board of Directors’ (or Board of Trustees’) decisions.

• The SPV’s promise to pay interest/dividends on ABS IOs, Preferreds and POs are essentially illusory promises because the underlying collateral may not produce any cash flows: so there won’t be interest/dividend payments.

(3): No Bargain: Some courts have held that there is no consideration (and hence, the contract is void) where one party was not allowed to bargain for the alleged agreement (44).

In some securitizations, the process of setting offering prices for new Asset-Backed Securities issues does not afford all parties the opportunity to negotiate terms of the offering, especially individual investors, because the price of the ABS is typically determined primarily by the sponsor and the lead underwriters. Furthermore, in securitizations, the originator sets the terms of the Special Purpose Vehicle (trust documents, articles of incorporation, bylaws, etc.).

(4): No mutuality (45): In the securitization context, for there to be mutuality:

(a): Each party must have firm control of the subject matters of the contract and the underlying assets (consideration), and:
(b): There should/MUST be a direct contractual relationship between the parties concerned. At time of the Subscription Agreement, the Special Purpose Vehicle typically does not own or have rights to the collateral, and hence, there is not mutuality.

Furthermore, the concept of ‘piercing the SPV veil’ is introduced here (similar to ‘piercing the corporate veil’) and applies, since the following conditions exist:

• The economics of the transaction are an asset transfer from the sponsor/originator party to the Special Purpose Vehicle investors, in exchange for a loan to the sponsor.

• However, there is no direct contractual relationship.

• The sponsor typically controls the Special Purpose Vehicle before the Asset-Backed Securities offering and thus determines (or very substantially influences) the SPV’s post-offering operating characteristics. Since the prospective ABS investors don’t have firm pre-offering control of the SPV and cannot influence its post-offering policies, there is no mutuality between the SPV and the ABS investors; and securitization is accordingly void.

• The sponsor influences the appointment of the SPV’s Trustees or Board of Directors.
Thus, under contract law, the use of the Special Purpose Vehicle in securitization effectively eliminates any mutuality between the two main contracting parties: the sponsor and the investors. Secondly, there is no mutuality between the Special Purpose Vehicle and the investors:

• The Special Purpose Vehicle’s corporate documents (trust indentures or bylaws or articles of incorporation) typically limit the rights of each ABS investors and the group of Asset-Backed Securities investors.

Thirdly, there is no mutuality at all between the Special Purpose Vehicle and the sponsor/originator, because both entities are essentially the same, and are controlled by the sponsor before and after the securitization takes place.

(5): Illegal subject matter and contravention of public policy 46: As explained in preceding sections of this analysis, securitization constitutes violations of the Antitrust laws and US Federal R.I.C.O. statutes; and hence, the contracts used to effect securitizations are void and illegal.

CONCLUSION:
Under US legislation, Securitization is MANIFESTLY ILLEGAL.

Notes and References:

(1): Yamazaki Kenji, What makes Asset Securitization Inefficient? (2005); Berkeley Electronic Press, Working Paper #603; Steven Schwarcz, Enron and The Use and Abuse of Special Purpose Entities In Corporate Structures, 70 U. Cin. L. Rev. 1309 (2002); See further: Carlson D. (1998), The Rotten Foundations of Securitization, William & Mary Law Review, 39; Lupica L (2000), Circumvention of The Bankruptcy Process: The Statutory Institutionalization of Securitization, Connecticut Law Review, 33: 199-210; Thomas Plank, 2004, The Security of Securitization and The Future of Security, 25 Cardozo L. Rev. 1655 (2004).

(2): On securitization, see: Eastgroup Properties v. Southern Motel Association, Ltd., 935 F.2d 245 (11th Cir. 1991); Union Savings Bank v. Augie/Restivo Baking Co. (In Re Augie/Restivo Baking Co.), 860 F.2d 515 (2d Cir. 1988); In Re Bonham, 229 F.3d 750 (9th Cir. 2000); In Re Central European Industrial Development Company LLC, 288 B.R. 572 (Bankr. N.D. Cal. 2003); Special Report by the TriBar Opinion Committee, Opinions in the Bankruptcy Context: Rating Agency, Structured Financing, and Chapter 11 Transactions, 46 Business Lawyer 717 (1991); Sargent, Bankruptcy Remote Finance Subsidiaries: The Substantive Consolidation Issue, 44 Business Lawyer 1223 (1989). See In re Kingston Square Associates, 214 B.R. 713 (Bankr. S.D.N.Y. 1997). On “True-sale” and “signment” distinctions, see: Major’s Furniture Mart, Inc. v. Castle Credit Corporation, Inc., 602 F.2d 538 (3rd Cir. 1979); In re Major Funding Corporation, 82 B.R. 443 (Bankr. S.D. Tex. 1987); Fox v. Peck Iron and Metal Company, Inc., 25 B.R. 674 (Bankr. S.D. Cal. 1982); Carter v. Four Seasons Funding Corporation, 97 S.W.3d. 387 (Ark. 2003); A.B. Lewis Co. v. Nat’l Investment Co. of Houston, 421 S.W.2d 723 (Tex. Civ. App. – 14th Dist. 1967); Resolution Trust Corp. v. Aetna Casualty and Surety Co. of Illinois, 25 F.3d 570, 578 (7th Cir. 1994); In re Royal Crown Bottlers of North Alabama, Inc., 23 B.R. 28 (Bankr. N.D. Ala. 1982) (addressing ‘reasonably equivalent value’ in transfer by parent to subsidiary); Butner v. United States, 440 U.S. 48 (U.S. 1979); In re Schick, 246 B.R. 41, 44 (Bankr. S.D.N.Y. 2000): (State law determines the extent of the debtor’s interest; bankruptcy law determines whether that interest is “property of the estate”).

See specifically: Homburger & Andre, Real Estate Sale and Leaseback Transactions and the Risk of Recharacterization in Bankruptcy, 24 Real Property, Probate and Trust Journal 95, (1989). See: In re Integrated Health Services, Inc., 260 B.R. 71 (Bankr. Del. 2001).

See: HSBC Bank v. United Air Lines, Inc., 317 B.R. 335 (N.D. Ill. 2004). See: Jonathan C. Lipson, Enron, Asset Securitization and Bankruptcy Reform: Dead or Dormant?, 11 J. Bankr. L. & Prac. 1 (2002). See: Peter J. Lahny IV, Asset Securitization: A Discussion of the Traditional Bankrupt Attacks and an Analysis of the Next Potential Attack, Substantive Consolidation, 9 Am. Bankr. Inst. L. Rev. 815 (2001). See: Lois R. Lupica, Revised Article 9, Securitization Transactions and the Bankruptcy Dynamic, 9 Am. Bankr. Inst. L. Rev. 287 (2001). See: Lois R. Lupica, Circumvention of the Bankruptcy Process: The Statutory Institutionalization of Securitization, 33 Conn. L. Rev. 199 (2000). See further: Lois R. Lupica, Asset Securitization: The Unsecured Creditors Perspective, 76 Tex. L. Rev. 595 (1998). See: Stephen I. Glover, Structured Finance Goes Chapter 11: Asset Securitization by the Reorganizing Companies, 47 Bus. Law 611, 627 (1992). See: Thomas J. Gordon, Securitization of Executory Future Flows as Bankruptcy-Remote True Sales, 67 U. Chi. L. Rev. 1317, 1322-23 (2000).

See: In Re Kingston Square Assocs., 214 B.R. 713 (Bankr. S.D.N.Y. 1997) (creditors brought an involuntary petition against an SPV).

(3): On corporate governance issues pertaining to SPVs and securitization see the following materials: See: In Re Buckhead America Corp., #s 91-978 through 91-986 (Bankr. D. Del, Aug. 13, 1992); In Re Minor Emergency Center of Tamarac Inc., 45 BR 310 (Bankr. SD.FL., 1985); Revlon Inc. v. Mac andrews & Forbes Holdings, 506 A2d 173 (Del. 1986); In Re Kingston Square Associates, 214 BR 713 (Bnakr. SDNY 197).

See: Sheryl Gussset, A Not-So-Independent Director In A Bankruptcy Remote Structure, 17 Am. Bankr. Inst. J. 24 (1998). See: Roberg Dean Ellis, Securitization, Fiduciary Duties and Bondholders Rights, 24 J. Corp. L. 295 (1999). See: Richard Graf, Use of LLCs As Bankruptcy Proof Entities Widens, National L. J. , April 10, 1995 at B16. See: Schwarcz Steven, Enron and The Use and Abuse of Special Purpose Entities In Corporate Structures, 70 U. Cin. L. Rev. 1309 (2002). See: Schwarcz, Steven, Securitization Post-Enron, 25 Cardozo L. Rev. 1539 (2004). See also: Thomas Plank, 2004 Symposium: The Security of Securitization and The Future of Security, 25 Cardozo L. Rev. 1655 (2004). See: Thomas H, Effects of Asset Securitization On Seller Claimants, Journal of Financial Intermediation, 10: 306-330. See also: Nolan, Anthony, Synthetic Securitizations and Derivatives Transactions by Banks: Selected Regulatory Issues, Journal of Structured Finance, Fall 2006.

See: American Securitization Forum, ASF Securitization Institute: The Securitization Legal and Regulatory Framework, 2006. See: Yamazaki, Kenji, What makes Asset Securitization Inefficient? Working Paper # 603, Berkeley Electronic Press.

(4): See: Schwarcz S. (1999). Rethinking Freedom of Contract: A Bankruptcy Paradigm, Texas Law Review, 77: 515-599. See: Klee K & Butler, Asset-Backed Securitization, Special Purpose Vehicles and Other Securitization Issues. Uniform Commercial Code Law Journal, 35( 2). See: Carlson D (1998). The Rotten Foundations of Securitization, William & Mary Law Review, 39: See: Janger, Edward J, Muddy Rules For Securitizations, Fordham Journal of Corporate & Financial Law, 2002. See: Lois R. Lupica, Circumvention of the Bankruptcy Process: The Statutory Institutionalization of Securitization, 33 CONN. L. REV. 199 (2000). See: Steven L. Schwarcz, The Inherent Irrationality of Judgment Proofing, 52 STAN. L. REV. 1 (1999). See: S. 420, 107th Cong. 912 (2001); H.R. 333, 107th Cong. 912 (2001). See: Steven L. Schwarcz, The Impact on Securitization of Revised UCC Article 9, 74 Cm. KENT L. REV. 947 (1999) (“Revised Article 9 attempts to broaden its coverage to virtually all securitized assets”). See: Claire A. Hill, Securitization: A Low-Cost Sweetener for Lemons, 74 WASH. U. L.Q. 1061 (1996). See: Yamazaki Kenji, What makes Asset Securitization Inefficient? (2005); Berkeley Electronic Press, Working Paper #603. See: Saayman, Andrea, Securitization and Bank Liquidity In South Africa, Working Paper, Potchefstroom University, South Africa.

See: Sargent Patrick, Structural and Legal Issues in Commercial Mortgage Securitization Transactions, November 1, 2004.

(5): See: Schwarcz S. (2004). Is Securitization Legitimate? International Financial Law Review, 2004 Guide To Structured Finance, pp.115. See additionally: Schwarcz S (2002). The Universal Language of International Securitization, Duke (University) Journal of Comparative and International Law, 12:285-300. See: Frankel T., Cross-Border Securitization: Without Law But Not Lawless, Duke Journal of Comparative and International Law, 8: 255-265.

See further: Kanda H. Securitization In Japan, Duke Journal of Comparative and International Law, 8: 359-370. See: Klee K & Butler B. Asset-Backed Scuritization, Special Purpose Vehicles and Other Securitization Issues, Uniform Commercial Code Law Review, 35(3):23-33. See: Higgin E & Mason J. (2004). What Is The Value of Recourse To ABS? A Study of The Credit Card Bank ABS Rescue, Journal of Banking & Finance, 28(4):857-874. See: Carlson D (1998), The Rotten Foundations of Securitization, William & Mary Law Review, 39: See: Elmer P., Conduits: Their Structure and Risk, FDIC Banking Review, pp. 27-40.

See: Dawson P. Ratings Games With Contingent Transfer: A Structured Finance Illusion, Duke Journal of Comparative & International Law, 8: 381-391.

(6): See: Fogie v. Thorn, 95 F3d 645 (CA8, 1996) (cert. den.) 520 US 1166; Police v. National Tax Funding LP, 225 F3d 379 (CA3, 2000); Najarro v. SASI Intern. Ltd, 904 F2d 1002 (CA5, 1990) (cert. den.) 498 US 1048; Video Trax v. Nationsbank NA, 33 Fsupp2d 1041 (S.D.Fla.,1998) (affirmed) 205 F3d 1358(cert. den.) 531 US 822; In Re Tammy Jewels, 116 BR 290 (M.D.Fla., 1990); and: ECE technologies v. Cherrington Corp., 168 F3d 201 (CA5, 1999); Colony Creek Ltd. v. RTC, 941 F2d 1323 (CA5, 1991) (rehearing denied); Sterling Property Management v. Texas Commerce Bank, 32 F3d 964 (CA5, 1994); Pearcy Marinev. Acadian offshore Services, 832 Fsupp 192 (S.D.TX, 1993); In Re Venture Mortgage Fund LP, 245 BR 460 (SDNY, 2000); In Re Donnay, 184 BR 767 (D.Minn, 1995); Johnson v. Telecash Inc., 82 FSupp2d 264 (D.Del., 1999) (reversed in part) 225 F2d 366 (cert. denied) 531 US 1145; Shelton v. Mutual Savings & Loan Association, 738 FSupp 50 (E.D.Mich., 1990); S.E.C. v. Elmas Trading Corporation, 638 F. Supp 743 (D.Nevada, 1987) (affirmed) 865 F2d 265; contrast: J2 Smoke Shop Inc. v. American Commercial Capital Corp., 709 FSupp 422 (SDNY 1989) (cost of funds); In Re Powderburst Corp., 154 BR 307 (E.D.Cal. 1993) (original issue discount); In Re Wright, 256 BR 626 (D.Mont., 2000) (difference between the face amount and amount actually recovered or owed by debtor); In Re MCCorhill Pub. Inc., 86 BR 283 (SDNY 1988); In Re Marill Alarm Systems, 81 BR 119 (S.D.Fla., 1987) (affirmed) 861 F2d 725; In Re Dent, 130 BR 623 (S.D.GA, 1991); In Re Evans, 130 BR 357 (S.D.GA, 1991); contrast: In Re Cadillac Wildwood Development, 138 BR 854 (W.D. Mich., 1992) (closing costs are interest costs); In Re Brummer, 147 BR 552 (D.Mont., 1992); In Re Sunde, 149 BR 552 (D.Minn., 1992); Matter of Worldwide Trucks, 948 F2d 976 (CA5,1991) (agreement concerning applicable interest rate may be established by course of conduct); Lovick v. Ritemoney Ltd, 378 F3d 433 (CA5, 2004); In Re Shulman Transport, 744 F2d 293 (CA2, 1984); Torelli v. Esposito, 461 NYS2d 299 (1983) (reversed) 483 NYS2d 204; Reschke v. Eadi, 447 NYS2d 59 (NYAD4, 1981); Elghanian v. Elghanian, 717 NYS2d 54( NYAD1, 2000) (leave to appeal denied) 729 NYS2d 410 (here, there was no consideration in exchange for loan, and transaction violated usury laws); Karas v. Shur, 592 NYS2d 779 (NYAD2, 1993); Simsbury Fund v. New St. Louis Associates, 611 NYS2d 557 (NYAD1, 1994); Rhee v. Dahan, 454 NYS2d 371 (NY.Sup., 1982); Hamilton v. HLT Check Exchange, LLP, 987 F. Supp. 953 (E.D. Ky. 1997); Turner v. E-Z Check Cashing of Cookeville, TN, Inc., 35 F.Supp.2d 1042 (M.D. Tenn. 1999); Hurt v. Crystal Ice & Cold Storage Co., 286 S.W. 1055, 1056-57 (Ky. 1926); Phanco v. Dollar Financial Group., Case No. CV99-1281 DDP (C.D. Cal., filed Feb. 8, 1999). See: Van Voris, B. (May 17, 1999) ‘‘Payday’ Loans Under Scrutiny’, National Law Journal, p. B1.

(7): See: 26 U.S.C. § 7201. 26 USC Subtitle F, Chapter 75.
See: Cheek v. United States, 498 U.S. 192 (1991).

(8): SEC v. Towers Financial Corp. et al., 93 Civ. 744 (WK) (S.D.N.Y.)

(9): See: Schwarcz Steven, Enron and The Use and Abuse of Special Purpose Entities In Corporate Structures, 70 U. Cin. L. Rev. 1309 (2002). See: Schwarcz, Steven, Securitization Post-Enron, 25 Cardozo L. Rev. 1539 (2004). See: Thomas Plank, 2004 Symposium: The Security of Securitization and The Future of Security, 25 Cardozo L. Rev. 1655 (2004).

See further: Thomas H., Effects of Asset Securitization On Seller Claimants, Journal of financial Intermediation, 10: 306-330. See: Yamazaki, Kenji, What Makes Asset Securitization Inefficient? Working Paper # 603, Berkeley Electronic Press.

(10): The Uniform Fraudulent Transfer Act reads as follows:

SECTION 4: TRANSFERS FRAUDULENT AS TO PRESENT AND FUTURE CREDITORS:

(a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if:

(1) with actual intent to hinder, delay, or defraud any creditor of the debtor; or (2) without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:

(i): was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or:
(ii): intended to incur, or believed or reasonably should have believed that he [or she] would incur, debts that would be beyond his [or her] ability to pay as they became due.

(b) In determining actual intent under subsection (a)(1), consideration may be given, among other factors, to whether:

(1): The transfer or obligation was to an insider;
(2): The debtor retained possession or control of the property transferred after the transfer;
(3): The transfer or obligation was disclosed or concealed;
(4): Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;
(5): The transfer was of substantially all the debtor’s assets;
(6): The debtor absconded;
(7): The debtor removed or concealed assets;
(8): The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;
(9): The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;
(10): The transfer occurred shortly before or shortly after a substantial debt was incurred; and:
(11): The debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor. Under both the US Bankruptcy Code and UFTA (Section 544 of the US Bankruptcy Code also allows unsecured creditors to sue in Federal Bankruptcy Court using applicable State), judges must determine whether there has been Fraudulent Conveyance. Courts have developed a series of factors as criteria for proving the requisite intent. The factors to be considered (“badges of fraud”) in determining Fraudulent Conveyance include:

• Whether the transfer represented substantially all of the debtor’s assets.
• Whether the transfer was made around the time a substantial debt was incurred.
• Whether the debtor received reasonable consideration equivalent to the value of the assets conveyed or the obligation incurred.
• Whether the debtor became insolvent soon after the transfer.
• Whether the transfer was made to insiders or family members.
• Whether the transfer or the assets were concealed

(11): See: Roman Dan, Sarlito M & Mukhtiar A (Winter 2007), Risks to Consider when purchasing Technology-based IP for Securitization, Working Paper. See additionally: Nolan Anthony, Synthetic Securitizations and Derivatives Transactions by Banks: Selected Regulatory Issues, The Journal of Structured Finance, Fall 2006. See: Lucas Douglas, Goodman Laurie & Fabozzi Frank, Hybrid Assets in an ABS CDO: Structural Advantages and Cash Flow Mechanics, Journal of Structured Finance (Fall 2006). See further: Prince, Jeffrey, A General Review of CDO Valuation Methods, Journal of Structured and Project Finance (Summer 2006).

(12): See: Peter V. Pantaleo et al., Rethinking the Role of Recourse in the Sale of Financial Assets, 52 Bus. Law. 159, 159-63 (1996) (discussing types of permissible and impermissible recourse for sale treatment). See: Thomas E. Plank, The True Sale of Loans and the Rôle of Recourse, 14 GEO. MASON L. Rev. 287 (1991). See: Gordon T (2000). Securitization of Executory Future Flows As bankruptcy-Remote True Sales, University of Chicago Law Review, 67:1317-1322. See: Higgin E & Mason J (2004). What Is The value of Recourse To Asset-Backed Securities? A Study of Credit Card Bank ABS Rescues, Journal of Banking & Finance, 28(4); 857-874.

(13): See: Peter V. Pantaleo et al., Rethinking the Rôle of Recourse in the Sale of Financial Assets, 52 Bus. Law. 159, 159-63 (1996) (discussing types of permissible and impermissible recourse for sale treatment); See: Thomas E. Plank, The True Sale of Loans and the Role of Recourse, 14 GEO. MASON L. Rev. 287 (1991). See: Higgin E. & Mason J. (2004), What Is The value of Recourse To Asset-Backed Securities? A Study of Credit Card Bank ABS Rescues, The Journal of Banking & Finance, 28(4); 857-874. See: Lois R. Lupica, Revised Article 9, Securitization Transactions and the Bankruptcy Dynamic, 9 AM. BANKR. INST. L. REV. 287, 291-92 (2001). See: Carol M. Rose, Crystals and Mud in Property Law, 40 STAN. L. REV. 577, 600 (1988). See: Louis Kaplow, Rules Versus Standards: An Economic Analysis, 42 Duke L.J. 557 (1992).

(14): See: Yamazaki, Kenichi, What makes Asset Securitization Inefficient?, 2005.
Working Paper #603, Berkeley Electronic Press.

(15): See: Yamazaki (2005), supra.

(16): See: Schwarcz (2002), supra. See: Schwarcz (2004), supra. See: Klee & Butler, supra. See: Lipson J C (2002). Enron, Asset Securitization and Bankruptcy Reform: Dead or Dormant? Journal
of Bankruptcy Law & Practice, 11: 1-15. See: Lupica L (2001). Revised Articles Nine, Securitization Transactions and The Bankruptcy Dynamic, American Bankruptcy Institute Law Review, 9:287-299. See: Garmaise M (2001), Rational Beliefs and Security Design, Review of Financial Studies, 14(4):1183-1213. See: David A (1997), Controlling Information Premia by Repackaging Asset Backed Securities, Journal of Risk & Insurance, 64(4):619-648. See: DeMarzo P (2005), The Pooling and Tranching of Securities: A Model of Informed Intermediation, Review of Financial Studies, 18(1):1-35. See further: Report by The Committee On Bankruptcy and Corporate Reorganization of The Association of The Bar of The City of New York (2000): New Developments In Structured Finance, The Business Lawyer, 56: 95-105. See: Lupica L (2000), Circumvention of The Bankruptcy Process: The Statutory Institutionalization of Securitization, Connecticut Law Review, 33:199-209.

See further: Glover S (1992), Structured Finance Goes Chapter Eleven: Asset Securitization by the Reorganizing Companies, The Business Lawyer, 47:611-621. See: Gordon T (2000), Securitization of Executory Future Flows as bankruptcy-Remote True Sales, The University of Chicago Law Review, 67:1317-1322. See: Elmer P., Conduits: Their Stricture and Risk, FDIC Banking Review, pp.27-40. See: Lois R. Lupica, Revised Article 9, Securitization Transactions and the Bankruptcy Dynamic, 9 AM. BANKR. INST. L. REV. 287, 291-92 (2001). See: Steven L. Schwarcz, The Inherent Irrationality of Judgment Proofing, 52 STAN. L. REV. 1 (1999). See: Lynn M. LoPucki, The Irrefutable Logic of Judgment Proofing: A Reply to Professor Schwarcz, 52 STAN. L. REV. 55 (1999). See: Steven L. Schwarcz, The Impact on Securitization of Revised UCC Article 9, 74 Cm.KENT L. REV. 947 (1999) (“Revised Article 9 attempts to broaden its coverage to virtually all securitized assets”).

See: Christopher W. Frost, Asset Securitization and Corporate Risk Allocation, 72 TUL. L. REV. 101 (1997); See: Claire A. Hill, Securitization: A Low-Cost Sweetener for Lemons, 74 WASH. U. L. Q. 1061 (1996). See: Steven L. Schwarcz, Judgment Proofing: A Rejoinder, 52 STAN. L. REV. 77 (1999).

(17): See: Reams B & Manz W (eds.), FEDERAL BANKRUPTCY LAW: A LEGISLATIVE HISTORY OF THE BANKRUPTCY REFORM ACT OF 1994. See further: The Legislative History of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005; (FRB Leg. Hist); (S. 256 -LoC); Pub. L. 109-8, April 20, 2005, 119 Stat, 23. http://www.llsdc.org/sourcebook/leg-hist.htm.

See: Bankruptcy Reform Act of 1978: A Legislative History, Hein. See: Federal Bankruptcy Law: A Legislative History of The Bankruptcy Act of 1994; Pub. L. No. 103-394, 108 Stat. 4106, including the National Bankruptcy Commission Act and Bankruptcy Amendments (1987-1993).

See further: Ahern, Lawrence (Spring 2001). “Workouts” Under Revised Article Nine: A Review of Changes and Proposal For Study, American Bankruptcy Institute Law Review, 9:115-125.

See also: Ribstein, Larry & Kobayashi, Bruce (1996), An Economic Analysis of Uniform State Laws, Journal of Legal Studies, 25(1):131-199.

(18): See: Ashta A & Tolle L (2000), Criteria for Selecting Restructuring Strategies for Distressed or Declining Enterprises, Cahners Du Ceren, 6:1-20. See: Carlson D (1998). The Rotten Foundations of Securitization, William & Mary Law Review, 39. See: Higgin E & Mason J (2004), What is the value of Recourse to Asset-Backed Securities? A Study of Credit Card Bank ABS Rescues, in the Journal of Banking & Finance, 28(4); 857-874. See: Albany Insurance v. Esses, 831 F2d 41 (CA2, 1987) (making false statements about value of asset was a “predicate act”); Howell Hydrocarbons v. Adams, 897 F2d 183 (CA5 1990) (under Federal R.I.C.O. statutes, making a company look solvent when its not, constitutes a ‘predicate act’); The Matter of Lewisville Properties, 849 F2d 946 (CA5, 1988) (under Federal R.I.C.O., false pretenses constitutes ‘predicate acts’). See also: Bens D & Monahan S (Feb. 2005), Altering Investment Decisions to [conform to] Management Financial Reporting Outcomes: Asset Backed Commercial Paper Conduits and FIN 46, Working Paper.

(19): In the following cases, the named courts held that pre-petition waivers of the right to file for voluntary/involuntary bankruptcy, were unenforceable. See: In Re Huang, 275 F3d 1177 (CA9, 2002) (it is against public policy for a debtor to waive the pre-petition protection of the Bankruptcy Code); In Re South East Financial Associates, 21 BR 1003 (M.D.Fla, 1997); And: In Re Tru Block Concrete Products Ins., 27 BR 486 (E.D.Pa., 1995) (advance agreement to waive the benefits of bankruptcy law is void as against public policy); In Re Madison, 184 BR 686, 690 (E.D.Pa, 1995) (even bargained-for and knowing waivers of the right to seek bankruptcy protection must be deemed void); In Re Club Tower LP, 138 BR 307 at 312 (N.D.Ga, 1991); In Re Graves, 212 BR 692 (BAP, CA1, 1997); In Re Pease, 195 BR 431 (D.Neb., 1996); And: In Re Jenkins Court Associates Ltd. Partnership, 181 BR 33 (E.D.Pa., 1995); In Re Sky Group International Inc., 108 BR 86 (W.D.Pa., 1989); Association of St.Croix Condominium Owners v. St. Croix Hotel Corp., 692 F2d 446 (CA3, 1982).

But contrast: In Re University Commons LP, 200 BR 255 (M.D.Fla.) (debtors agreement that in the event debtor enters bankruptcy proceedings, the secured lender shall be entitled to court order dismissing the case as ‘bad faith’ filing an determining that: (i) no rehabilitation or reorganization is possible, and (ii) dismissing all creditor/ ABS-investor’s right to file for involuntary bankruptcy 21, 22: US courts have repeatedly asserted that bankruptcy proceedings are in the best interests of parties and all other creditors, and this is binding); In Re Little Creek Development, 779 F2d 1068 (CA5, 1986). See: 124 Congr. Record H 32, 401 (1978).

(20): There are several cases that hold that pre-petition waivers of the right to file for voluntary or involuntary bankruptcy, are enforceable: thus: In Re Shady Grove tech Center Associates Limited Partnership, 216 BR 386 (D.Md., 1998) (waiver of the right to file for bankruptcy is unenforceable) (opinion supplemented) 227 BR 422 (D.Md., 1998); In Re Atrium High Point Ltd. partnership, 189 BR 599 (MDNC 1995); In Re Darrell Creek Associates, 187 BR 908 (DSc, 1995); In Re Cheeks, 167 BR 817 (D.Sc, 1997); In Re McBride Estates, 154 BR 339 (N.D.Fla., 1993); In Re citadel Properties, 86 BR 275, MD.Fla., 1988); In Re Gulf Beach Development Corp., 48 BR 40 (M.D.Fla., 1985).

However, these cases are very distinguishable from standard securitization transactions because the following characteristics and/or conditions existed in these cases: (a) they involve only single-asset entities; (b) these entities had no employees; (c) the timing of filing of bankruptcy petition indicates an intent to delay or to frustrate creditors’ proper efforts to enforce their rights after a workout had failed; (d) there were no or few unsecured non-insider creditors (those existing had small claims); (e) there was no realistic chance of rehabilitation or reorganization; (f) the assets did not produce any cashflow.

(21): See cases cited in Notes 5, 6, 19 and 20.

(22): On pre-petition waivers of right to file for bankruptcy and waivers of bankruptcy stays, see: In re Huang, 275 F.3d 1173, 1177 (9th Cir. 2002) (“It is against public policy for a debtor to waive the pre-petition protection of the Bankruptcy Code”); In re Shady Grove Tech Center Assocs. Limited Partnership, 216 B.R. 386, 389 (Bankr. D. Md. 1998) (“The courts have uniformly held that a waiver of the right to file a bankruptcy case is unenforceable”); In re Tru Block Concrete Prods., Ins., 27 B.R. 486, 492 (Bankr. E.D. Pa. 1995) (advance agreement to waive the benefits conferred by bankruptcy law is void as against US public policy); In re Madison, 184 B.R 686, 690 (Bankr. E.D. Pa. 1995) (even bargained-for and knowing waivers of the right to seek bankruptcy protection must be deemed void); In re Club Tower L.P., 138 B.R. 307, 312 (Bankr. N.D. Ga. 1991); further, In re Orange Park S. Partnership, 79 B.R. 79, 82 (Bankr. M.D. Fla. 1987); In re Aurora Invs., 134 B.R. 982, 985 (Bankr. M.D. Fla. 1991) (debtor’s agreement that petition, if filed, would be in “bad faith” if its primary purpose is to delay foreclosure sale, is binding); In re University Commons, L.P., 200 B.R. 255, 259 (Bankr. M.D. Fla. 1996) (debtor’s agreement that in the event that debtor becomes subject of bankruptcy case secured lender shall be entitled to order dismissing case as “bad faith” filing and determining that (i) no rehabilitation or reorganization is possible, and (ii) dismissing all court proceedings is in the best interest of parties and all other creditors, is binding); In Re Little Creek Dev. Co., 779 F.2d 1068, 1073 (5th Cir. 1986). 47212 B.R. 1003, 1005 (Bankr. M.D. Fla. 1997). See: 124 Cong. Rec. H 32, 401 (1978) (“The explicit reference in Title-11 forbidding the waiver of certain rights is not intended to imply that other rights, such as the right to file a voluntary bankruptcy case under section 301, maybe waived”). See further: Klee, Kenneth & Butler, Brendt, Asset-backed Securitization, Special Purpose Vehicles and Other Securitization, Working Paper. Cases that enforced pre-petition waivers of the automatic stay focus upon:

(i): The financial sophistication of the borrower;
(ii): The creditor’s demonstration that significant consideration was given
for the pre-petition waiver;
(iii): The effect of the enforcement of the pre-petition waiver upon other
parties having legitimate interests in the outcome;
(iv): Circumstances of the parties at the time enforcement of the pre-petition waiver is sought;
(v): The enforcement of the pre-petition waiver being consistent
with public policy of encouraging out of court restructurings and settlements with creditors; and:
(vi): Other indicia which support granting relief from stay, such as “bad faith” criteria (i.e. single-asset case, two-party dispute, long history of pre-petition workouts, newly formed entity, filing on eve of foreclosure, no ongoing business to reorganize, few employees, no unencumbered funds, etc.). Cases that held that pre-petition stay waivers were enforceable include: In Re Shady Grove Tech Ctr. Assocs., L.P., 216 B.R.386, 390 (Bankr. D. Md. 1998); In Re Atrium High Point L.P., 189 B.R. 599, 607 (Bankr. M.D.N.C. 1995); In Re Darrell Creek Assocs., L.P., 187 B.R. 908, 910 (Bankr. D.S.C. 1995); In Re Cheeks, 167 B.R. 817, 818 (Bankr. D.S.C. 1994); In Re Powers, 170 B.R. 480, 483 (Bankr. D. Mass. 1994); In Re McBride Estates, Ltd., 154 B.R. 339, 343 (Bankr. N.D. Fla. 1993); In Re Citadel Properties, Inc., 86 B.R. 275, 276 (Bankr. M.D. Fla. 1988); In Re Gulf Beach Development Corp., 48 B.R. 40, 43 (Bankr. M.D. Fla. 1985).

Several courts, however, have refused to enforce pre-petition waivers
for any of the following reasons:

(i): The pre-petition waiver is the equivalent to an ipso facto clause;
(ii): Such clause is void as against public policy by depriving the debtor
of the use and benefit of property upon the filing of a bankruptcy case;
(iii): The borrower lacks the capacity to act on behalf of the debtor in possession;
(iv): The debtor has a business with a reasonable chance at reorganization and enforcement of the waiver would otherwise prejudice third-party creditors;
(v): The automatic stay is designed to protect all creditors and may not be waived by the debtor unilaterally to the detriment of creditors; and:
(vi): The waiver was obtained by coercion, fraud or mutual mistake of facts. Courts that have refused to enforce pre-petition waivers of the automatic stay have reasoned that the automatic stay protects not only debtors but also other creditors. US Courts disagree sharply about the utility, benefits and desirability of the enforcement of pre-petition waivers, and relevant criteria. Some courts have held that a pre-petition automatic stay waiver may be considered as a factor in determining whether cause exists for relief from the stay.

See aslo: In Re Darrell Creek Assocs., L.P., 187 B.R. 908, 913 (Bankr. D.S.C. 1995) (“out of court workouts are to be encouraged and are often effective”); In Re Cheeks, 167 B.R. 817, 819 (Bankr. D.S.C. 1994) (“the most compelling reason for enforcement of the forbearance agreement is to further the public policy in favor of encouraging out of court restructuring and settlements”);
In Re Club Tower L.P., 138 B.R. 307, 312 (Bankr. N.D. Ga. 1991) (“enforcing pre-petition settlement agreements furthers the legitimate public policy of encouraging out of court restructurings and settlements”). Cases holding pre-petition automatic stay waivers unenforceable include: In Re Southeast Financial Assocs., Inc., 212 B.R. 1003, 1005 (Bankr. M.D. Fla. 1997); In Re Graves, 212 B.R. 692, 694 (B.A.P. 1st Cir. 1997); In Re Pease, 195 B.R. 431, 433 (Bankr. D. Neb. 1996); In Re Jenkins Court Assocs. L.P., 181 B.R. 33, 37 (Bankr. E.D. Pa. 1995);Farm Credit of Cent. Fla., ACA v. Polk, 160 B.R. 870, 873-74 (M.D. Fla. 1993); Farm Credit of Cent. Fla., ACA v. Polk, 160 B.R. 870, 873-74 (M.D. Fla. 1993) (”The policy behind the automatic stay is to protect the debtor‘s estate from being depleted by creditor’s lawsuits and seizures of property before the debtor has had a chance to marshal the estate’s assets and distribute them equitably among creditors“); In Re Sky Group Int’l, Inc., 108 B.R. 86, 89 (Bankr. W.D. Pa. 1989) (”To grant a creditor relief from stay simply because the debtor elected to waive the protection afforded the debtor by the automatic stay ignores the fact that it also is designed to protect all creditors and to treat them equally“) (citing Assoc. of St. Croix Condominium Owners v. St. Croix Hotel Corp., 682 F.2d 446 (3d Cir. 1982)). Also see: In re Shady Grove Tech Ctr. Assocs., L.P., 216 B.R. 386, 393-94 (Bankr. D. Md. 1998); In re S.E. Fin. Assocs., Inc., 212 B.R. 1003, 1005 (Bankr. M.D. Fla. 1997); In re Darrell Creek Assocs., L.P., 187 B.R. 908, 910 (Bankr. D.S.C. 1995); In re Powers, 170 B.R. 480, 483 (Bankr. D. Mass. 1994); In re Cheeks, 167 B.R. 817, 819 (Bankr. D.S.C. 1994); In Re Shady Grove Tech Ctr. Assocs., L.P., 216 B.R. 386, 393-94 (Bankr. D. Md. 1998) (granting a stay relief for cause based upon a finding which included debtor’s pre-petition agreement not to contest request for stay relief given as part of pre-petition restructuring in which debtor was afforded substantial consideration). See: Steven L. Schwarcz, Rethinking Freedom of Contract: A Bankruptcy Paradigm, 77 Tex. L. Rev. 515 (1999). See: In Re Club Tower L.P., 138 B.R. 307, 311-12 (Bankr. N.D. Ga. 1991).

(23): See: Schwarcz S. (1999). Rethinking Freedom of Contract: A Bankruptcy Paradigm, Texas Law Review, 77: 515-599. See: Klee K & Butler B Asset-Backed Securitization, Special Purpose Vehicles and Other Securitization Issues, Uniform Commercial Code Law Journal, 35(2):. See: Carlson D (1998), The Rotten Foundations of Securitization, William & Mary Law Review, 39:

(24): See notes 5, 6, 19 and 20, supra.

(25): See: Shakespeare C (2003). Do Managers Use Securitization Volume and Fair Value Estimates To Hit Earning Targets? Working Paper, University of Michigan (School of Business). See further: Shakespeare C (2001), Accounting For Asset Securitizations: Complex Fair Values and Earnings Management, Working Paper, University of Michigan.

(26): Wooten v. Loshbough, 649 Fsupp 531 (N.D.Ind. 1986) (on reconsideration) 738 Fsupp 314 (affirmed) 951 F2d 768 (under Federal R.I.C.O. statutes, the stripping of a company’s ability to pay a Court-ordered judgment claim was a ’predicate act‘).

(27): See: Kulzick R (2004). Sarbanes-Oxley: Effects on Financial
Transparency, S.A.M. Advanced Management Journal, 69(1): 43-49.

(28): See: Albany Insurance v. Esses, 831 F2d 41 (CA2, 1987) (under Federal R.I.C.O. statutes, making false statements about the value of asset was a ‘predicate act’); Howell Hydrocarbons v. Adams, 897 F2d 183 (CA5 1990) (under Federal R.I.C.O. statutes, making a company look solvent when its not, constitutes a ‘predicate act’).

(29): See: Lockheed Martin v. Boeing, 357 Fsupp2d 1350 (M.D.Fla., 2005) (bidder violated competitor’s property rights to proprietary information by using it to produce winning bids).

(30): See: Colloff M (2005), The Rôle of the Trustee in Mitigating Fraud in Structured Financings, Journal of Structured Finance, 10(4):73-85. See further: Shakespeare C (2003), Do Managers Use Securitization Volume and Fair Value Estimates to Hit Earning Targets? Working Paper, University of Michigan (School of Business).

See: Shakespeare C (2001), Accounting For Asset Securitizations: Complex Fair Values and Earnings Management. Working Paper, University of Michigan. See: Katyal K (2003), Conspiracy Theory, The Yale Law Journal, 112(6):1307-1398.

See: Geary W (2002), The Legislative Recreation of R.I.C.O.: Reinforcing The ‘myth’ of Organized Crime, Crime, Law & Social Change, 38(4):311-315. See: Kulzick R (2004), Sarbanes-Oxley: Effects on Financial Transparency, S.A.M. Advanced Management Journal, 69(1): 43-49. See: Painter R (2004), Convergence and Competition In Rules Governing Lawyers and Auditors, The Journal of Corporation Law, 29(2):397-426. See: Jordans R. (2003), The legal approach to investment advisers in different jurisdictions, Journal of Financial Regulation and Compliance, 11(2):169-171.

See: Blanque P. (2003), Crisis and Fraud, Journal of Financial Regulation & Compliance, 11(1):60-70. See: Pickholz M & Pickholz J (2001), Manipulation, Journal of Financial Crime, 9(2):117-133. See: Zey M(1999), The subsidiarization of the securities industry and the organization of securities fraud networks to return profits in the 1980s, Work and Occupations, 26(1):50-76.

See: Aicher R, Cotton D & Khan T (2004), Credit Enhancement: Letters of Credit, Guaranties, Insurance and Swaps, The Business Lawyer, 59(3):897-973. See: Brief T & Ms Sweeney T (2003), Corporate Criminal Liability, The American Criminal Review, 40(2): 337-366. See: Landrum D (2003), Governance of limited liability companies – Contrasting California and Delaware models, The Real Estate Finance Journal, 19(1).

(31): See: 18 USC 1961-1968.

(32): See: Alexander v. Thornbough, 713 FSupp 1271 (D.Minn. 1989) (appeal dismissed) 881 F2d 1081; Mira v. Nuclear Measurements Corp., 107 F3d 466 (CA7, 1997); US v. Manzella, 782 F2d 533 (CA5, 1986)(cert. Denied.) 476 US 1123; Cadle Co v. Flanagan, 271 Fsupp2d 379 (D.Conn., 2003); Seale v. Miller, 698 Fsupp 883 (N.D.G.A., 1988); Georgia Gulf Corp. v. Ward, 701 Fsupp 1556 (NDGA 1988); Wooten v. Loshbough, 649 FSupp. 531 (N.D.Ind. 1986) (on reconsideration) 738 Fsupp 314 (affirmed) 951 F2d 768 (stripping of company’s ability to pay judgment claim was ‘predicate act’ under R.I.C.O. statutes); Formax v. Hostert, 841 F2d 388 (CAFed, 1988); Abell v. Potomac Insurance, 858 F2d 1104 (CA5, 1988) (appeal after remand) 946 F2d 1160 (cert. denied) 492 US 918; Aetna Ca. Ins. Co. v. P & B Autobody, 43 F3d 1546 (CA1, 1994); Albany Insurance v. Esses, 831 F2d 41 (CA2, 1987) (making false statements about value of asset was a “predicate act”); Alfadda v. Fenn, 935 F2d 475 (CA2, 1991)(certiorari denied) 502 US 1005; Laird v. Integrated Resources, 897 F2d 826 (CA5, 1990); Shearin v. E F Hutton, 885 F2d 1162 (CA3, 1989); Bank One of Cleveland v. Abbe, 916 F2d 1067 (CA6, 1990); BancOklahoma Mortgage Corp. v. Capital Title Co., 194 F3d 1089 (CA10, 1999); Howell Hydrocarbons v. Adams, 897 F2d 183 (CA5 1990) (under Federal R.I.C.O. statutes, making a company look solvent when its not, constitutes a ‘predicate act’); Matter of Lewisville Properties, 849 F2d 946 (CA5, 1988) (false pretenses constitutes ‘predicate acts’).

See: Securities Investor Protection Corp. v. Vigman, 908 F2d 1461 (CA9, 1990); International Data Bank v. Zepkin, 812 F2d 149 (CA4, 1987); Warner v. Alexander Grant & Co., 828 F2d 14528 (CA11, 1987); Mauriber v. Shearson/American Express, 546 FSupp 391 (SDNY, 1982); Farmers Bank F Delaware v. Bell Mortgage Corp., 452 FSupp 1278 (D.Del, 1978); Moss v. Morgan Stanley Inc., 719 F2d 5 (CA2, 1983); USACO Coal v. Carbomin Energy Inc., 689 F2d 94 (CA6, 1982); Binkley v. Shaeffer, 609 FSupp 601 (E.D.Pa., 1985); Sedima v. Imrex Co., 473 US 479 (1985) . See: Glanz M (1983). R.I.C.O. and Securities Fraud: A Workable Limitation, Columbia Law Review, 6:1513-1543. See: Masella J (1991), Standing to Sue In A Civil R.I.C.O. Suit Predicated On Violation OF SEC Rule 10b-5: The Purchase Or Sale Requirement, Columbia Law Review, 91(7):1793-1812. See: Coffey P (1990), The Selection, Analysis and Approval of Federal R.I.C.O. Prosecutions, Notre Dame Law Review, 65: 1035-1055. See: Matthews A (1990), Shifting The Burden of Losses In The Securities Markets: The Rôle of Civil R.I.C.O. In Securities Litigation, Notre Dame Law Review, 65: 896-906.

(33): See: Bradford National Clearing Corp. v. SEC, 590 F2d 1085 (DCCir, 1978); In Re Stock Exchanges Options Trading Antitrust Litigation, 317 F3d 134 (CA2, 2003); Gordon v. NYSE, 422 US 659 (1975); National Gerimedical Hospital v. Blue Cross of Kansas City, 452 US 378 (1981); Silver v. NYSE, 373 US 341 (1963) (no Antitrust immunity); Strobl v. NY Mercantile Exchange, 768 F2d 22.

(34), (35):
§ 1 Sherman Act, 15 U.S.C. § 1:

Trusts, etc., in restraint of trade illegal; penalty:

Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by a fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.

§ 2 Sherman Act, 15 U.S.C. § 2:

Monopolizing trade a felony; penalty:

Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in discretion of the court.

§ 3 Sherman Act, 15 U.S.C. § 3:

Trusts in Territories or District of Columbia illegal; combination a felony:

Every contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade or commerce in any Territory of the United States or of the District of Columbia, or in restraint of trade or commerce between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia (DC), or with foreign nations, or between the District of Columbia and any State or States or foreign nations, is declared illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.

3. CLAYTON ACT, 15 U.S.C. §§ 12-27, 29 U.S.C. §§ 52-53:

• § 1 Clayton Act, 15 U.S.C. § 12 Definitions; short title:

§ 1 Clayton Act, 15 U.S.C. § 12 Definitions; short title:
(a) “Antitrust laws”, as used herein, includes the Act entitled:
‘An Act to protect trade and commerce against unlawful restraints and monopolies’, approved July second, eighteen hundred and ninety; sections seventy-three to seventy-seven, inclusive, of an Act entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes’, of August 27th, eighteen hundred and ninety-four; an Act entitled ‘An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninetyfour’, entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes’, approved February twelfth, nineteen hundred and thirteen; and also this Act.

‘Commerce’, as used herein, means trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory of the United States and any State, Territory, or foreign nation, or between any insular possessions or other places that are under the jurisdiction of the United States, or between any such possession or place and any US State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States:

Provided, That nothing in this Act contained shall apply to the Philippine Islands. The word ‘person’ or ‘persons’ wherever used in this Act shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country.

(b) This Act may be cited as the “Clayton Act”.

• § 2 Clayton Act, 15 U.S.C. §§ 13(2):

Discrimination in price, services, or facilities:

(a) Price; selection of customers:

It shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them: Provided, That nothing herein contained shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered:

Provided, however, That the Federal Trade Commission may, after due investigation and hearing to all interested parties, fix and establish quantity limits, and revise the same as it finds necessary, as to particular commodities or classes of commodities, where it finds that available purchasers in greater quantities are so few as to render differentials on account thereof unjustly discriminatory or promotive of monopoly in any line of commerce; and the foregoing shall then not be construed to permit differentials that are based on differences in quantities greater than those so fixed and established: and provided further, That nothing herein contained shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade: and provided further, That nothing herein contained shall prevent price changes from time to time where in response to changing conditions affecting the market for or the marketability of the goods concerned, such as but not limited to actual or imminent deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned.

(b) Burden of rebutting prima-facie case of discrimination:

Upon proof being made, at any hearing on a complaint under this section, that there has been discrimination in price or services or facilities furnished, the burden of rebutting the prima-facie case thus made by showing justification shall be upon the person charged with a violation of this section, and unless justification shall be affirmatively shown, the Commission is authorized to issue an order terminating the discrimination: Provided, however, That nothing herein contained shall prevent a seller rebutting the prima-facie case thus made by showing that his lower price or the furnishing of services or facilities to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor, or the services or facilities furnished by a competitor.

(c) Payment or acceptance of commission, brokerage, or other compensation: It shall be unlawful for any person engaged in commerce, in the course of such commerce, to pay or grant, or to receive or accept, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, except for services rendered in connection with the sale or purchase of goods, wares, or merchandise, either to the other party to such transaction or to an agent, representative, or other intermediary therein where such intermediary is acting in fact for or in behalf, or is subject to the direct or indirect control, of any party to such transaction other than the person by whom such compensation is so granted or paid.

(d) Payment for services or facilities for processing or sale:

It shall be unlawful for any person engaged in commerce to pay or contract for the payment of anything of value to or for the benefit of a customer of such person in the course of such commerce as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale of any products or commodities manufactured, sold, or offered for sale by such person, unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or commodities.

(e) Furnishing services or facilities for processing, handling, etc.: It shall be unlawful for any person to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all purchasers on proportionally equal terms.

(f) Knowingly inducing or receiving discriminatory price:
It shall be unlawful for any person engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by this section. Discrimination in rebates, discounts, or advertising service charges; underselling in particular localities; penalties:

• 15 U.S.C. § 13a:

It shall be unlawful for any person engaged in commerce, in the course of such commerce, to be a party to, or assist in, any transaction of sale, or any contract to sell, which discriminates to his knowledge against competitors of the purchaser, in that, any discount, rebate, allowance, or advertising service charge is granted to the purchaser over and above any discount, rebate, allowance, or advertising service charge available at the time of such transaction to the said competitors in respect of a sale of goods of like grade, quality, and quantity; to sell, or to contract to sell, goods in any part of the United States at prices lower than those exacted by said person elsewhere in the United States for the purpose of destroying competition, or of eliminating a competitor in such part of the United States; or, to sell, or contract to sell, goods at unreasonably low prices for the purpose of destroying competition or eliminating a competitor.

• Any person violating any of the provisions of this section shall, upon conviction thereof, be fined not more than $5,000 or imprisoned not more than one year, or both.

• 15 U.S.C. § 13b:

Cooperative association; return of net earnings or surplus:
Nothing in sections 13 to 13b and 21a of this title shall prevent a cooperative association from returning to its members, producers, or consumers the whole, or any part of, the net earnings or surplus resulting from its trading operations, in proportion to their purchases or sales from, to, or through the association.

• § 3 Clayton Act, 15 U.S.C. § 14:

Sale, etc., on agreement not to use goods of competitor:

It shall be unlawful for any person engaged in commerce, in the course of such commerce, to lease or make a sale or contract for sale of goods, wares, merchandise, machinery, supplies, or other commodities, whether patented or unpatented, for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, or fix a price charged therefor, or discount from, or a rebate upon, such price, on the condition, agreement, or the understanding that the lessee or the purchaser thereof shall not use or deal in the goods, wares, merchandise, machinery, supplies, or other commodities of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale or such condition, agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce.

• FTC Regulations: Section 5 of the Federal Trade Commission Act outlaw ”unfair methods of competition“ but do not define unfair. The Supreme Court has ruled that violations of the Sherman Act are also violations of Section 5, but Section 5 covers some practices that are beyond the scope of the Sherman Act. It is the FTC’s job to enforce Section 5.

(36): See: Eastman Kodak Co v. Image technical Services, 504 US 451 (1992); Jefferson parish Hospital v. Hyde, 466 US 2 (1984); Zenith Radio Corp. v. Hazeltine Research, 395 US 100 (1969).

(37): See: Business Electronics Corp. v. Sharp Electronics Corp, 485 US 717 (1988); Copperweld Corp. v. Independence Tube, 467 US 752 (1984); Monsanto Co. v. Spray-Rite Service Corp., 465 US 752 (1984); US v. Arnold, Schwin et al, 388 US 365 (1967); USPS v. Flamingo Industries, #02-1290 (2004); Brown v. Pro Football, 518 US 213 (1996); FTC v. Ticor Title Insurance Company, 504 US 621 (1992); Allied Tube & Conduit Corp. v. Indian head Inc., 486 US 492 (1988).

(38): See: Standard Oil Co v. US, 337 US 293 (1949); See: US v. Griffith, 334 US 100 (1948). See: Brooke Group Ltd. V. Brown & Williamson Tobacco, 509 US 209 (1993).

(39): See: Texaco v. Hasbrouck, 496 US 543 (1990); J Truet Payne Co v. Chrysler Motors, 451 US 557 (1981); Great Atlantic & Pacific Tea Co. v. Federal Trade Commission, 440 US 69 (1979); US v. United States Gypsum, 438 US 422 (1978); FTC v. Sun Oil Co., 371 US 505 (1963).

(40): See: Brooke Group Ltd. V. Brown & Williamson Tobacco, 509 US 209 (1993); Matsushita Electric v. Zenith Radio, 475 US 574 (1986); Utah Pie Co. v. Continental Baking Co. et al, 386 US 685 (1967).

(41): See: Parmenter v. FDIC, 925 F2d 1088 (CA8,1991); Ace-Federal Reporters v. Barram, 226 F3d 1329 (Ca.Fed., 2000)(on remand) 2002 WL 1292032; Workman v. UPS, 234 F3d 998 (CA7, 2000); Dibrell Brothers v. Banca Nazionale Del Lavoro, 383 F3d 1571 (CA11, 1999); Gibson v. Neighborhood Health Clinics, 121 F3d 1126 (CA7, 1997); Floss v. Ryans Family Steakhouses, 211 F3d 306 (CA6, 2000)(cert. denied) 531 US 1072; Heinig Furs, 811 Fsupp 1546 (M.D.Ala., 1993); Flanders Medeiros v. Bogosian, 88 Fsupp 412 (DRI, 1994)(affirmed in part) 65 F3d 198; Johnson Enterprises v. FPl Group, 162 F3d 1290 (CA2, 1998); Hoffman v. Bankers Trust, 925 Fsupp 315 (M.D.Pa, 1995); Prudential Insurance v. Sipula, 776 F2d 157 (CA7, 1985); In Re Sulakshma, 207 BR 422 (E.D.Pa, 1997).

(42): See: Gordon T (2000), Securitization of Executory Future Flows as bankruptcy-Remote True Sales, University of Chicago Law Review, 67:1317-1322.

(43): See: Valdiviezo v. Phelps Dodge, 995 Fsupp 1060 (D.Ariz., 1997). Johnson enterprises v. FPL Group, 162 F3d 1290 (CA2, 1998). Ryan v. Upchurch, 474 Fsupp 211 (SND, 1979)(reversed) 627 F2d 836. See: Rose J & Dawson P (Sept. 1997), Contingent Transfer: The Illusory Promise of Structured Finance. S&P Structured Finance, page 10.

(44): Prudential Insurance v. Sipula, 776 F2d 157 (CA7, 1985) (no consideration where party to contract could not bargain for alleged agreement).

(45): See: Tampa Pipeline Transport v. Chase Manhattan Service Corp., 928 Fsupp 1568 (MD.Fla., 1995) (affirmed) 87 F3d 1329.

(46): See: Imel v.Laborer’s Pension Fund Trust, 904 F2d 1327 (CA9, 1990) (cert. den.) 498 US 939 (contract should not alter statutory duties); Truck Ins. Exchange v. Ashland Oil, 951 F2d 787 (CA7, 1992); Cramer v. Consolidated Freightways, 255 F3d 806 (CA9, 2001) (cert. denied) 122 SCt 806; Lake James Community v. Burke County NC, 149 F3d 277 (CA4, 198) (cert. denied) 525 US 1106; Davis v. Parker, 58 F3d 183 (CA5, 1995); In Re NWFx, 881 F2d 530 (on rehearing) 904 F2d 469 (cert. denied) 498 US 941; Biomedical Systems v. GE Marquette, 287 F3d 707 (CA8, 2002) (cert. denied) 123 SCt 636 (post-contract formation failure to obtain statutorily required license invalidated agreement).

THE FOLLOWING DATA HAS BEEN PUBLISHED AT THE FOOT OF MOST OF THESE REPORTS FOR THE PAST THREE YEARS++. IT WAS COMPILED BY MICHAEL C. COTTRELL, B.A., M.S..

• THEY ARE 100% CONSISTENT WITH THE FOREGOING ANALYSIS, AND VICE VERSA:

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

NOTICES:

BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

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Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

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• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

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SENATOR ARLEN SPECTER INVOKES MISPRISION OF FELONY

story2

THEY’VE GOT A COLOSSAL PROBLEM: AND IT’S US

Monday 29 March 2010 00:01

• PENNSYLVANIA BIRDS OF A FEATHER:
SENATOR ARLEN SPECTOR, AND SALVATORE DEFRANCESCO ARE FROM PENNSYLVANIA;
VICE PRESIDENT JOE BIDEN IS ORIGINALLY FROM SCRANTON, PENNSYLVANIA, AND HAS
CALLED PA HIS ‘HOME’, SAYING ONCE THAT HE WAS PENNSYLVANIA’S ‘THIRD SENATOR’

• SENATOR ARLEN SPECTOR SUDDENLY CITES MISPRISION OF FELONY

• WHY WOULD SENATOR SPECTER DO THAT?
BECAUSE THEY HAVE A SERIOUS PROBLEM

• AND WHO OR WHAT IS THEIR PROBLEM?

• SENATOR ARLEN SPECTER RINGS THE ALARM

• TO OFFER JOBS FOR FAVOURS IS A FEDERAL CRIME

• SOME COMPELLING FACTS YOU OUGHT TO KNOW

• BUT SENATOR ARLEN SPECTER WAS TARGETING
THE PENNSYLVANIA FRAUD AT THE SAME TIME: GEDDIT?

• A SHORT LIST OF PEOPLE WHO COULD GO TO JAIL

• BECAUSE OF COURSE IT’S ALL ABOUT THE MONEY. PERIOD

• U.S. INTEREST RATES RISING AS THESE FOOLS TRY TO EMBEZZLE THE FUNDS AGAIN

• GOV. RENDELL RAISES TAXES, YET ‘BLOCKS’ THE $495 MILLION TAX WINDFALL

• THE N.S.A.-CHENEY-BIDEN ‘BLACK OPS’
PSY-OPS OFFENSIVE AGAINST COTTRELL AND STORY

• STEALING OUR TELECOMMUNICATIONS; A FEDERAL OFFENCE

• FEATURES OF THIS COUNTERPRODUCTIVE U.S.G. ‘PSY-OPS’
OPERATION LASTING FOR MORE THAN TWO YEARS ALREADY

• CHENEY/BIDEN/NSA ‘BLACK OPS’ VERBAL TERRORISM PHONE CALLS RECEIVED IN OUR OFFICES: THIS IS DELIBERATE U.S. GOVERNMENT HARASSMENT BECAUSE WE ARE HITTING THE CRIMINALISTS’ NERVES AND ARE REFUSING TO BE INTIMIDATED AND TERRORISED

• This matter has been reported inter alia to the British Consulate General, 845 Third Avenue,
@ E 52nd Street, New York, NY: 212-745 0200 with a demand that the obscene harassment ops. conducted against this service and the Editor by the Cheney/Biden/NSA cadre is taken up with the relevant US authorities and our complaint about this barbaric behaviour of a supposedly friendly Government addressed with the necessary vigour appropriate to this scandalous state of affairs.

• SALVATORE R. DEFRANCESCO LINKED TO BIDEN:
THE NEW TWIST IN THE PENNSYLVANIA FRAUD

• As you may recall, we were advised earlier that Treasury Agents and the FBI were looking for Salvatore R. DeFrancesco, and that he would be cuffed shortly. Then all of a sudden, we were told that this top Mafioso, who is Vice President of Penn Acceptance Corporation, was no longer being sought. We now realise that the reason for this is that he is being protected by Governor Edward G. Rendell of Pennsylvania. We thought that harbouring a suspected criminal was a criminal offence.

• MR COTTRELL’S LATEST STRUGGLES WITH DELIBERATELY
UNCOOPERATIVE AND ARROGANT PA OFFICIALS

• WICKED DIVERSIONARY TACTIC BY CORNERED
PENNSYLVANIA DEPARTMENT OF STATE OFFICIALS:
REPRESENTING THAT PENNSYLVANIA INVESTMENTS, INC.
IS A HOLDING COMPANY, WHICH IS NOT THE CASE

• THEY TOOK MR COTTRELL’S FILING MONEY
BUT DIDN’T CHANGE THE PENNSYLVANIA INVESTMENTS, INC. SCREEN

• SO, MR COTTRELL FAXED THE GOVERNOR OF PENNSYLVANIA’S OFFICE OF GENERAL COUNSEL, THE GOVERNOR OF PENNSYLVANIA, EDWARD G. RENDELL, THE PENNSYLVANIA DEPARTMENT OF STATE CORPORATION DEPARTMENT AND THE PENNSYLVANIA DEPARTMENT OF REVENUE ALL OVER AGAIN, WITH ALL THE DOCUMENTS

• THAT WAY, A MASSIVE PAPER TRAIL PERTINENT
TO ‘MISPRISION OF FELONY’ IS ON THE RECORD

• IN MEMORIAM AND HORIZONTALISATION NEWS:

• MANAGING DIRECTOR OF THE ABU DHABI INVESTMENT AUTHORITY [SCAMMED BY BUSH]

• Note: Suggestions by fantasists on other websites that an imminent ‘return’ to the Constitution across the board is in the pipeline and that most State Governors have agreed to this, is baloney. The behaviour of Governor Edward G. Rendell of Pennsylvania, addressed in this report, indicates that he continues to operate without regard for the Rule of Law as he is implicated in the attempt, with Salvatore R. DeFrancesco, to embezzle the funds payable to Pennsylvania Investments, Inc. The fantasists have again revealed that they operate on the basis of ‘feelings’ and unwarranted assumptions based on flimsy foundations and unscientific, illogical deductions. Unprovenanced, garbled meanderings are no basis for the sweeping deductions these people specialise in, and they do a disserve to bewildered Americans who don’t know where to turn for sound information.

• Update to this note: There appears to be confusion in some minds between (a) the necessity for funds to be collected so that grossly overdue obligations can be met and (b) the sudden waving of a magic wand whereby the Constitution descends from the sky like a Deus ex Machina to shower blessings on disillusioned Americans while shovelling all their woes into the trash. The position is that (a) is taking place: which is why the most high-powered American delegation in living memory descended on Mexico on 23rd March 2010 to pay a visit to President Felipe Calderon.

The delegatation, led by the Secretary of State, Mrs Hillary Clinton, included:
• The Defense Secretary, Robert Gates;
• The Homeland Security Secretary, Janet Napolitano;
• The Director of National Intelligence, Dennis Blair; and:
• The Chairman of the Joint Chiefs of Staff, Admiral Michael Mullen [ONI].

Conspicuous by his absence was the US Attorney General, Eric Holder: which tells you that the meeting was not about how to tackle Mexico’s drug problem. Meanwhile Barack Obama surfaced in Afghanistan. One does not need a first class degree In logic to deduce what has been going on.

This has nothing to do with (b), which is a separate matter and may or may not follow through. The behaviour of Pennsylvania Governor Rendell described in this and recent reports in this series confirms that, contrary to baseless speculation, there is no change of criminal behaviour, which in turn indicates that the miraculous ‘Return to the Constitution’ is NOT happening (as yet), for the simple reason that in order to comply with the Constitution it is necessary to comply with the Rule of Law, which Rendell (in the pertinent case cited) is NOT doing.

That is ALL we said, and the deduction that we have ‘missed what is happening’ accompanied by the usual gratuitous, self-satisfied rudeness about 1776 is both uncalled for and the precise opposite of the truth if what we have been saying is understood.

………………………………………………………………

• APPENDIX 1:

MICHAEL C. COTTRELL’S LETTER OF NOTIFICATION OF 9TH MARCH 2010 TO THE PENNSYLVANIA DEPARTMENT OF STATE DEMANDING THE IMMEDIATE REMOVAL OF THE NAME OF THE MAFIA IMPOSTOR SALVATORE DE FRANCESCO FROM THE PENNSYLVANIA INVESTMENTS, INC. STATE CORPORATION BUREAU’S OFFICIAL SCREEN, FRAUDULENTLY SHOWING THE IMPOSTOR MAFIOSO AS ‘SECRETARY’ OF THE CORPORATION

………………………………………………………………

• APPENDIX 2:

ARTICLES OF AMENDMENT RE: PENNSYLVANIA INVESTMENTS, INC. DATED 13TH MARCH 2010

………………………………………………………………

• APPENDIX 3:

CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION: 16 NOVEMBER 2005

………………………………………………………………

• LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL BIG FINANCIAL INSTITUTIONS ARE IN BREACH

………………………………………………………………

• U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS ARE IN BREACH

………………………………………………………………

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

SECURITIZATION IS ILLEGAL UPDATE: In the Subs/Books Update panel immediately below the NEWS panel that you are currently viewing, you will see an announcement concerning publication of Economic Intelligence Review, Volume 12, Numbers 7 & 8. If you press that announcement text and open up the panel, you will see the contents list for the new [2010Q1] issue of E.I.R., including a breakdown of the Chapter Headings for the detailed analysis showing that Securitization is illegal. See our NEWS report dated 10th March 2010 for summaries of some of the data from this analysis. We understand that the report has created uproar in certain corridors of corrupt power.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• ADVERTISEMENT: Details of the INTERNET SECURITY SOLUTION software offered by this service in conjunction with a donation can be accessed immediately: See the Home Page World Reports Limited serials catalogue by clicking World Reports Limited and scrolling to foot of page. Scroll to the foot of THIS page to read our extended Ad. for the INTERNET SECURITY SOLUTION.

Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

NEW REPORT STARTS HERE:

PENNSYLVANIA BIRDS OF A FEATHER:
SENATOR ARLEN SPECTOR, AND SALVATORE DEFRANCESCO ARE FROM PENNSYLVANIA;
VICE PRESIDENT JOE BIDEN IS ORIGINALLY FROM SCRANTON, PENNSYLVANIA, AND HAS
CALLED PA HIS ‘HOME’, SAYING ONCE THAT HE WAS PENNSYLVANIA’S ‘THIRD SENATOR’

Before we start, the following facts are of central importance to understanding what follows, sharply accentuating the ongoing detection, deconstruction and unravelling of the luciferian operation to re-steal The Queen’s $6.2 trillion loan funds for the Refunding of the US Dollar, provided via the Bank of England to Bank of New York Mellon on 19th-20th June 2007, which was criminally diverted on the instructions of Henry M. Paulson Jr., Secretary of the US Treasury, and which is the subject of a WORLD COURT LIEN ON THE U.S. TREASURY dated 6th December 2009:

• Vice President Joseph Biden is originally from Scranton, Pennsylvania and while representing Delaware in the Senate, once described Pennsylvania as his ‘home’, and added that he was Pennsylvania’s ‘third’ Senator. He has always maintained close links to Pennsylvania.

• The Vice President of the United States is always in control of the National Security Agency [NSA]. The reason for including this statement here will be elaborated below.

• Senator Arlen Specter is from Pennsylvania.

• Salvatore R. DeFrancesco is from Pennsylvania.

• Pennsylvania Investments, Inc., remains organised and incorporated as a Business Corporation under Section 204 of the Commonwealth of Pennsylvania Business Corporation Law act of 5th May 1933 (P.L. 364 (15 P.S. Section 1204) for the following purposes stated in the founding documents [copies of which we hold] filed by the Commonwealth of Pennsylvania Department of State on 11th December 1984: ‘To engage in and to do all lawful acts concerning any or all lawful business for which a corporation may be incorporated under the Business Corporation Law of Pennsylvania Act of May 5, 1933, P.L. 364, as amended’.

SENATOR ARLEN SPECTOR SUDDENLY CITES MISPRISION OF FELONY
On 12th March, immediately after it had become known by the NSA and the White House (from intercepts of our telephone conversations), that we had discovered the illegal and fraudulent insertion of the Mafia impostor Salvatore R. DeFrancesco, Vice President of the money factory Penn Acceptance Corporation of Pittston TWP, Pennsylvania, as ‘Secretary’ of Pennsylvania Investments Inc. on the Commonwealth of Pennsylvania Corporation Bureau screen for Mr Cottrell’s corporation, Senator Arlen Specter, from Pennsylvania, made this public statement:

‘There’s a crime called Misprision of a Felony. Misprision of a Felony is when you don’t report a crime. So you’re getting into pretty deep areas here in these considerations’.

Now as you will be aware, NOBODY HAS EVER MENTIONED MISPRISON OF FELONY for the duration of this crisis with the single exception of this service. We have displayed the text of the Misprision of Felony Statute at the top of every report for the past three years, thus:

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

WHY WOULD SENATOR SPECTER DO THAT?
BECAUSE THEY HAVE A SERIOUS PROBLEM
WHY do you suppose someone as knowledgeable of the opaque operations of these high-level criminals has SUDDENLY started quoting Misprision of Felony at this late stage of the crisis?

• ANSWER: Because these people have a serious problem.

AND WHO OR WHAT IS THEIR PROBLEM?
WHO or WHAT is the serious problem they face?

• ANSWER: Michael C. Cottrell, B.A., M.S., and Christopher Edward Harle Story FRSA, ARE THE SERIOUS PROBLEM. And it’s getting worse. And they can’t solve the problem the way they want – by re-stealing and re-embezzling The Queen’s $6.2 trillion loan funds and Mr Cottrell’s $15.0+ billion, payable to Pennsylvania Investments, Inc.

• In other words, as we have signalled in these reports, WE are regrettably and most unfortunately, AT THE EPICENTRE OF THIS CRISIS. And contrary to what the kleptocracy arrogantly imagined, WE ARE NOT CAVING IN OR GIVING WAY TO THESE CRIMINALS.

So: they don’t know what to do. The endless tension and the lack of resolution, and the incredible economic and financial damage that is being caused by the criminal intent to steal these funds, which is BLOCKING THE SETTLEMENTS GENERALLY, is getting some of these people down.

SENATOR ARLEN SPECTER RINGS THE ALARM
And since it is well understood where it needs to be understood that WE ARE NOT BACKING DOWN, and since the massive international pressure behind the scenes has long since exceeded what these people can tolerate, ALL OF A SUDDEN we find that a very prominent US Senator is RINGING THE ALARM BELL. He’s citing MISPRISION OF FELONY at the criminals, starting at the White House and Mr Biden’s residence and reaching the Mansion of the Governor of Pennsylvania.

• Senator Arlen Spector wants to make sure he’s on the right side of the outcome. But at the same time, he’s put himself in an extremely exposed position. If, as a prominent public figure, you cite the Misprision of Felony Statute, you had better be CERTAIN that you understand precisely what you are doing. Which Senator Arlen Spector most certainly does.

As a ‘person in civil… authority under the United States’ Senator Specter may think that he himself is covered. But since [see below] he undoubtedly made this public statement for the elucidation of individuals resident in the Commonwealth of Pennsylvania, it is crystal clear that Senator Specter – whose comments, as noted, were uttered on 12th March 2010, shortly after it had become known that we’d unearthed the Pennsylvania Fraud involving Salvatore R. DeFrancesco – has ‘issues’ with his home State (Commonwealth). No prizes for guessing the nature of his (financial) concerns here.

THE COVER FOR SPECTER’S OUTBURST: SESTAK-GATE
But the situation is even more loaded than described hitherto.

We’ll try to condense the background so that it doesn’t get in the way of the present exposure report. On 18th February 2010, Philadelphia TV anchor Larry Kane said that on a Comcast show he had just taped, he had asked Democratic Congressman Joe Sestak, who is challenging incumbent Senator Arlen Specter in a Primary, whether it was true that the Obama Administration had offered Mr Sestak a job if he would withdraw from his Primary challenge to Specter, to which Joe Spestak answered: ‘Yes’, adding that the job offer was made by someone in the White House and that he, Sestak, had turned down the offer. Two hours later Kane called the White House, played them the tape, and asked for comment. The White House never called him back.

TO OFFER JOBS FOR FAVOURS IS A FEDERAL CRIME
To offer jobs for favours is a Federal crime, and Sestak effectively accused the White House, therefore, of a Federal crime. The issue was taken up by Jake Tapper, the ABC White House correspondent on 22nd February 2010, when he asked the White House Press Secretary Robert Gibbs for a reaction to Sestak’s de facto charge. Gibbs stonewalled (fearing Misprision of Felony).

On 1st March 2010 the Fox News correspondent, Major Garrett tried again. Gibbs: ‘I have not made any progress on that. I was remiss on this and I apologise’. On 9th March, Major Garrett tried again, and drew another blank from Gibbs. On 11th March, Major Garrett of Fox News tried again, noting that Congressman Darrell Issa (R-CA) had publicised that he had written to White House Counsel, Robert Bauer, demanding an investigation into Sestak’s charge. Mr Gibbs: ‘I don’t have anything additional on that’. Q: ‘Are you ever going to have anything additional on that?’ Gibbs: ‘I don’t have it today’. On 12th March, Gibbs answered Garrett’s repeated question with: ‘I don’t have any more information on that’. And that was that.

And on 12th March, all of a sudden, Senator Arlen Specter stated that if anyone receives such an offer (of an official job in exchange for a favour) and didn’t report it, the person concerned could GO TO JAIL FOR COMMITTING A FELONY: i.e. Sestak could go to jail.

• There have been calls for a Special Prosecutor to be appointed to investi-gate Sestak-gate.

SOME COMPELLING FACTS YOU OUGHT TO KNOW
Now here are several compelling additional pieces of relevant information:

• Senator Arlen Specter has had a very long relationship with the Bush Crime Family.

• Vice President Joseph Biden, originally from Pennsylvania [see above], in charge today of the National Security Agency, and who, when referred to as ‘Mr Banking’, sat on the US Senate Banking Committee, is aware of everything there is to know about hidden financial operations and issues, and is reported to us to be known to have been involved in questionable financial operations.

For instance, he was instrumental in the MBNA takeover and in the reincorporation of MBNA from Maryland to Delaware. In 1996, after it had become MBNA company policy for all top executives to live in Delaware, MBNA executive John Cochrane bought Senator Joe Biden’s house in Delaware, assisted, according to MBNA’s SEC filing, by $330,115 paid to John Cochrane by the senior MBNA management for ‘expenses’ arising from the move (of which $210,000 was reportedly to make up for a loss that John Cochrane suffered on the sale of his Maryland home).

Local Delaware real estate sources believe that Cochrane ‘overpaid’ Biden for the property.

• Questions have been asked as to whether the home sale was a ‘sweetheart’ deal for Biden.

At all events, during the 1996 senatorial campaign, MBNA cemented its ties to Biden when MBNA employees started showering Senator Biden with campaign contributions. In fact Federal Election Commission records showed MBNA as the largest single source of campaign contributions for Senator Biden. A few weeks after Biden was re-elected in November 1996, MBNA hired his son, Hunter, a Yale law graduate.

Joe Biden, with a Jesuitical background, shares a peculiar characteristic that is quite common among such ‘possessed’ characters. His mouth suddenly opens, and out comes an extremely unwelcome, untimely and probably provocative or idiotic observation. Biden is notorious for this, and did it yet again into Barack Obama’s microphone, which wasn’t switched off, at the signing ceremony for the Health Pipeline Bill, when he exclaimed: ‘This is a big [expletive deleted] deal’. Newscasters have been playing the clip ever since.

Biden sits in Cheney’s seat, and Cheney launched the Psy-Ops harassment operation against the Editor of this service via the National Security Agency in February 2008, after the Wanta ‘switch’. This verbal terrorism ‘Psy-Ops’ offensive against this Editor has continued without a break ever since then, and has reached new levels of intensity under Biden: see below for details.

• Congressman Joe Sestak, who sits on the House Armed Services Committee, was a senior Four-Star Navy Admiral. He was the head of the Office of Naval Intelligence (ONI), the most lethal of all components of the US Intelligence Power, which has all along been fighting other components of the Intelligence Power over control of stolen and other monies. Sestak was fired (relieved of his command) from the Navy and had one of his stars removed, so he left the US Navy with three stars. He has a degree from Harvard University, was involved in operations in Afghanistan, in national defence and security policy formulation, and in operation ‘Deep Blue’ (a terrorism ‘think-tank’).

SESTAK-GATE RUNS COMPLETELY OUT OF CONTROL
According to Jeffrey Lord writing in The American Spectator [16th March 2010], who assumes that Specter’s remark has resonance exclusively within the Sestak-gate context, ‘in a blink, Specter has raised the stakes here…. Even more remarkable is to comprehend why Robert Gibbs may now be standing at that White House podium five different times and refusing to answer questions from Jake Tapper and Major Garrett. If Sestak has told the truth… then not only is the person or persons within the White House who made the job offer in big trouble, but anybody else on the Obama White House staff who currently knows this has happened and has not reported it to the proper official authorities – the FBI, just for starters – is, according to Specter, a potential prosecution target for Misprision of Felony. For which this person or persons could go to jail along with whoever offered the job in the first place’.

‘Quite possibly, that could include Robert Gibbs, if in fact he knows this job offer occurred. Which is surely incentive enough for Mr Gibbs to understand that he doesn’t want to ask this question of his colleagues – much less get an answer. An answer for which he could be legally liable, which in turn makes it a lose-lose proposition for him to say anything – beyond a variant of ‘no comment’’.

BUT SENATOR ARLEN SPECTER WAS TARGETING
THE PENNSYLVANIA FRAUD AT THE SAME TIME: GEDDIT?
Now since there can be no question whatsoever that Senator Arlen Specter, a long-term associate of George Bush Sr. and his criminal cohorts, and a Senator for Pennsylvania, most certainly knows the score with regard to the intent, centred in Harrisburg, to embezzle The Queen’s loan funds of $6.2 trillion that are internationally mandated to be remitted to the securities account with Morgan Stanley, New York, of Pennsylvania Investments, Inc., plus the $15.0+ billion that’s also payable to Mr Cottrell’s firm via the Paymaster, who has been specifically instructed to procure the necessary resolution IN ACCORDANCE WITH THE U.S. CONSTITUTION (special intelligence obtained by the Editor), you can readily imagine that Senator Specter has ‘raised the stakes’ rather more steeply than The American Spectator’s correspondent, will have realised.

A SHORT LIST OF PEOPLE WHO COULD GO TO JAIL
Just to select a few individuals enmeshed in this exposure who could go to jail given their knowledge of the Pennsylvania Fraud to embezzle the Queen’s loan funds and the $15.0+ billion payable to Pennsylvania Investments, Inc., that we have publicised, the following are manifestly vulnerable to indictment under the Misprision of Felony Statute referenced by Pennsylvania Senator Arlen Specter IF THEY HAVE FAILED TO REPORT IT TO THE AUTHORITIES:

• Salvatore R. DeFrancesco, Vice President of Penn Acceptance Corporation.

• Joseph Limongelli, President and Secretary, Penn Acceptance Corporation.

• Daniel Limogelli, Treasurer, Penn Acceptance Corporation.

• General Counsel to the Governor of Pennsylvania, Edward G. Rendell.

• Officials in the Governor’s Office of General Counsel.

• Officials in the Office of the Governor of Pennsylvania.

• Officials in the Pennsylvania Department of State generally.

• Officials in the Pennsylvania Department of State Corporation Department, including Sally Krow.

• Officials in the Pennsylvania Department of Revenue, including Julie A. Castillo.

• All Pennsylvania officials generally who are aware of the Pennsylvania Fraud
whether directly or via this website.

• Staffers working for Senator Arlen Specter.

• Staffers and personnel working for Congressman Joe Sestak.

• Staffers working for Vice President Joe Biden, from Pennsylvania.

• All White House staff who are aware of the Pennsylvania Fraud and its ramifications, including all White House staff who receive and read the transcripts that are fed to them daily of the telephone conversations of Michael C. Cottrell, B.A., M.S., Mr A. Clifton Hodges, lawyer for the CMKM/CMKX victims, and the Editor of this service.

• All Capitol Hill staffers ditto.

• All so-called ‘Mainstream’ press operatives who know all about the Pennsylvania Fraud and its context, not least from our reports, and have refrained either from reporting on it or reporting the matter to the appropriate authorities.

• Add further categories to taste.

BECAUSE OF COURSE IT’S ALL ABOUT THE MONEY. PERIOD.
And of course, since IT’S ALL ABOUT THE MONEY AND ABOUT NOTHING ELSE, we can assure you that Pennsylvania Senator Arlen Specter had more than Sestak-gate in mind when he ‘raised the stakes’ by suddenly invoking Misprision of Felony no less than three years after THIS SERVICE ALONE began proclaiming it at the top of almost every report published in this website series.

Which of course reconfirms that these reports are indeed read where it matters and that AT LONG LAST THE PENNY HAS DROPPED. The US Constitution is about to be rescued.

U.S. INTEREST RATES RISING AS THESE FOOLS TRY TO EMBEZZLE THE FUNDS AGAIN
Meanwhile, just to ‘connect’ briefly with what HAS been reported in the ‘Mainstream’ press, you will have noted that yields on the US Treasury 10-year note had risen from 3.8% on 12th March 2010 to 3.8990% on 25th March. On Tuesday 23rd March, the Treasury’s $44 billion auction of two-year debt was weaker than ‘expected’. On Wednesday 24th March, a US Treasury auction of $42 billion five-year debt securities also fell flat. And on Thursday 25th, demand for the $32 billion of seven-year debt was limp, with the yield having risen from 3.1% to 3.37% over the same period.

Well, what did the brainboxes at the Geithner Treasury expect? Having incurred $4.5 trillion of TOTALLY UNNECESSARY TREASURY DEBT in the space of just two fiscal years – equating to the total amount of Treasury debt incurred over the best part of a century – the Obama White House and the Geithner Treasury, assisted by Bernanke at the Federal Reserve, having opted to expand official debt out to infinity and thereby to mortgage the American taxpayer for ever rather than to refinance the US dollar in the private sector using the loan finance made available by the British Monarchical Power PRO BONO PUBLICO which they STOLE, are now face to face MUCH EARLIER THAN THEY EVER ANTICIPATED with the worst of all possible worlds, namely:

• Rising interest rates +

• The knock-on effects on the battered real economy, the ‘recovery’ of which has been entirely artificial and not even assisted by the so-called Stimulus Money, a large proportion of which may have been diverted for illegal trading operations and or bribes placed into offshore bank accounts (since frozen) of those legislators and associates WHO HAVE BEEN BOUGHT.

And here they are STILL TRYING TO EMBEZZLE THE QUEEN’S LOAN FUNDS and the $15.0 billion payable to Pennsylvania Investments, Inc., which are internationally mandated to be deployed to refinance the US Dollar in the private sector, delivering windfall tax receipts which will negate the necessity for this reckless, permissive and irresponsible, not to say criminal, US deficit financing.

No wonder the Editor has been astonished during his New York visit to discover that normally sober and refined, knowledgeable American middle class professional people have told him, one after the other, that these criminals should all be rounded up dealt with ‘as in time of war’.

• Sober Americans who one would never imagine harbouring
such thoughts have said this to the Editor repeatedly during this visit.

GOV. RENDELL RAISES TAXES, YET ‘BLOCKS’ THE $495 MILLION TAX WINDFALL
The New York Times Sunday Edition [28th March 2010] carries a front page report entitled ‘States Seek to Tax Services, from Head to Toe’, featuring the Pennsylvania Governor, Edward G. Rendell, whose proposed ‘hairshirt’ budget , which he says is ‘born out of necessity’, is now being debated in Harrisburg. It would tax services, including accounting, advertising and data processing.

Governor Rendell, who uses Barack Obama’s keyword ‘look’ when he wants to make a point, is quoted as telling the newspaper:

‘Look, I’m not a crazy tax guy. I know what we’ve cut [in] the last two years, and I know how deep and painful the cuts have been. So I know that in the future there’s going to have to be a revenue increase, and this is the best of the alternatives, obviously none of which we’re happy about’.

Instead of whining and wringing his hands in public for the benefit of the gullible New York Times, Pennsylvania Governor Rendell would make better use of his time by calling Ms. Sally Krow at the Pennsylvania State Department Corporation Bureau and instructing her to cease and desist from her Department’s bureaucratic obfuscation, interference with and fraudulent cover-up behaviour over Pennsylvania Investments, Inc., which, as Michael C. Cottrell, B.A., M.S., has informed the Governor himself in writing, will be paying the Commonwealth of Pennsylvania State windfall taxes of the order of $495 million on receipt of the $15.0+ billion payable to his corporation.

Rendell’s buddy, Salvatore R. DeFrancesco, Vice President of Penn Acceptance Corporation, was inserted illegally on the Pennsylvania Investments, Inc. corporate screen that’s maintained by the Department of State, so that these funds could be embezzled. Which makes Rendell’s observations to the newspaper quite extraordinarily duplicitous, dishonest, and disingenuous.

They won’t be embezzled, thanks not least to the decisive surveillance and exposure measures that have been taken; and Pennsylvania will indeed receive the windfall $495 million in taxes from Pennsylvania Investments, Inc., despite Governor Rendell’s best efforts to have the funds stolen.

And since Governor Rendell knows all about this matter, both because he and his structures are parties to the attempted embezzlement through the local Mafioso Salvatore R. DeFrancesco, and because he has been specifically informed about the tax windfall by Mr Cottrell himself in writing, the ‘debate’ over the budget in Harrisburg, is as duplicitous, hypocritical and disingenuous as the Governor’s whining to The New York Times.

Either he doesn’t understand what’s going on under his nose (as George Orwell intimated), or he’s acting stupid. Since he is aware that $495 million is in the pipeline destined for the Pennsylvania Department of Revenue, if he were doing his job properly, he should inform his Legislature of this fact, and adjust his budget to take account of this forthcoming tax windfall, accordingly.

THE N.S.A.-CHENEY-BIDEN ‘BLACK OPS’ TERRORIST
PSY-OPS OFFENSIVE AGAINST COTTRELL AND STORY
Finally, before we expose (below) the latest dimension of the Pennsylvania Fraud, involving Joe Biden’s buddy Salvatore R. DeFrancesco, we need to address the related issue, mentioned above, of the concerted and counterproductive NSA Psy-Ops ‘Black Ops’ campaign that has been waged relentlessly without a break against the Editor of this service, ever since February 2008, when the Wanta ‘switch’ was being consolidated and it was realised that the Editor of this service would no longer be at Wanta’s disposal. Wanta, of course, as we have exposed, works for George Bush Sr. and was the courier between Bush Sr. and Gorbachëv.

• He specialises in facilitating ongoing embezzlement operations by Godfather Bush.

During the period when the Editor was deceived by Wanta and Wanta usurped our publishing and website platform for his own (i.e. Bush’s and Cheney’s) agenda, as previously reported, the French Embassy in Washington, D.C., under M. Levitte, who is now President Sarkozy’s main (intelligence) adviser, promoted our reports worldwide through the French Intelligence Power’s global network – vastly expanding our coverage and leaving us with an asset of considerable reach and power.

As one perceptive Christian friend of the Editor’s in the New York area pointed out on 25th March, quoting scripture: ‘They meant it for evil but God meant it for good’!

When Cheney’s operatives realised that there was a danger that the Editor would henceforth use his website and publishing platform in a manner contrary to the interests of the Bush-Cheney-DVD kleptocracy, Cheney orchestrated the launch of a Py-Ops operation targeted specifically against the Editor of this service. This has had zero impact, but has played into our hands as it has provided us with a means of assessing how effective our exposures have been, and how agitated the demons have become. The more agitated they become, the more effective our exposures have been.

The Psy-Ops campaign, using just one demented paid hack who masquerades literally as a demon (and is certainly infested himself, judging by the Editor’s knowledge of demonic possession taught to him by his late friend Malachi Martin, who died in July 1999 (only a week after asking the Editor to renew his subscription to Soviet Analyst)), consists of the following ingredients:

• Obsessive verbal terrorism conveyed by phone using our 1-800 number so that WE pay for the privilege of being mocked, insulted and ridiculed by this demented ‘Black Ops’ terrorist USG cadre.

• Routine unsolicited voicemail messages consisting of a demonic cackle, a rant along the lines of ‘The Great Dark Lords’ will take over the planet and there is nothing you fools can do about it, and ending with contrived demonic false ‘laughter’.

• Obscene (really filthy) imprecations against the Editor’s distinguished father, who died in 1984.

• Obscene and foul denunciations and utterances always against Jesus Christ and Christianity, containing ignorant rants, sordid allusions and vapid imprecations, interrupted by demonic cackles.

• Note: ‘The devils also believe, and tremble’: James, Chapter 2, verse 19.

• Endless filthy observations, demonic laughter and false hilarity following rants to the effect that ‘you cannot win’ and ‘we have stolen all the money’.

• Occasional ‘why don’t you join us?’ suggestions, implying that we are effective (accurate), book-ended by the usual false demonic cackling, imprecations against Jesus Christ and dirty laughter.

• Repeated telephone calls along the above lines, which these days may amount to a dozen or more such harassment interventions daily. With the US criminalists’ increasing desperation, the number of these verbal terrorism calls perpetrated by this filthy USG ‘Black Ops’ cadre has soared.

• The proven stealing of our communications [see below]: i.e., we pay for these dirty USG calls.

STEALING OUR TELECOMMUNICATIONS; A FEDERAL OFFENCE
In recent weeks, this Psy-Ops operation has been extended to Michael C. Cottrell – a stupid, base, brainless move by the dunderheads running this operation, as of course this has simply confirmed what we know from other sources – namely, that this counterproductive Psy-Ops offensive, which seeks to demoralise us and to insist that ‘we cannot win’ when that is precisely what is happening, is DIRECTLY RELATED to our very successful resistance to the repeated attempts to EMBEZZLE the Queen’s loan funds, to steal the funds payable to Penn Sylvania Investments, Inc., and to frustrate, postpone, torpedo, jeopardise, encumber, complicate, hijack, divert or otherwise interfere with the internationally mandated transparent US Dollar Refunding Programme.

With the broadening of this mad and counterproductive Psy-Ops offensive to Michael C. Cottrell, B.A., M.S., we have been advised by reliable ‘special’ inside sources, which include the Paymaster, that this IS a cack-handed NSA Cheney (MK-Ultra-type) operation, which has continued under Vice President Biden, who as indicated ‘controls’ the NSA. Biden ‘inherited’ this ‘Black Ops’ offensive.

FEATURES OF THIS COUNTERPRODUCTIVE U.S.G. ‘PSY-OPS’
OPERATION LASTING FOR MORE THAN TWO YEARS ALREADY
Records of earlier such nuisance calls over two years are held in our London office. Meanwhile, during the Editor’s New York visit to date, the following ‘Great Dark Lords’ NSA Cheney-Biden-DVD harassment terrorist phone calls (listed below) have been monitored. Several features of this US Government-sponsored dirty tricks offensive against the Editor in particular have been identified:

(1): The perpetrator STEALS OUR COMMUNICATIONS by employing our published 1-800 number to deposit his load of filth on our voicemail. Stealing electronic communications is a Federal offence, and on Monday 29th March 2010, the Editor will be taking immediate and comprehensive steps to have this outrageous USG ‘Black Ops’ offensive traced and shut down by greatly complicating the lives of personnel at the carrier, itself an intelligence entity, which is permissively allowing this abuse to continue AND CHARGING THIS COMPANY for the privilege of the gross, childish insults, obscenities, blasphemies, verbal terrorism and calumnies against the Editor’s father for which this US Government abomination is criminally responsible.

(2): As we have caller ID in the New York office, we can immediately identify a rogue incoming call. During the present New York visit to date, the Editor has recorded as many of these ‘Black Ops’ calls as he can when physically present in the office.

Note: Because of the arrangement that we have in the New York office to capture our Western Hemisphere incoming phone calls, and as a matter of convenience, we have a loop arrangement whereby the 1-800 calls are routed to the London office automatically. When the Editor is in New York, the calls are re-routed from London back to New York. When a call using our 1-800 number arrives in the New York Office, a ‘ping’ occurs on the receiving phone, and a few seconds later the other land line receives the incoming call. When in the New York office, the Editor is therefore able to identify incoming callers that dialled the 1-800 number. Because of this arrangement, we are able to prove that the base perpetrator working for the NSA/Cheney/Biden is illegally STEALING OUR COMMUNICATIONS, and in the appended list below, those calls are identified.

(3): The record kept by the Editor of the incoming ‘Black Ops’ rogue calls has identified a rota of phone numbers, as listed here. When called back, the standard ‘Your call cannot be completed as dialled’ is heard. In other words, these dummy phone numbers registered by our Caller ID service are therefore intelligence numbers.

(4): With the high level of success that we have achieved behind the scenes in bringing these matters close to their necessary conclusion, the perpetrator has daily become more and more frantic, repeating his attempts to get through so that he can dump his latest load of pointless and counterproductive verbal terrorism obscenities on our voicemail. The nutcase has lost his cool.

(5): The perpetrator has the capacity of repeating a frustrated attempt to get through (if we pick the receiver up and slam it down) immediately, but from a different telephone number as registered on our Caller ID facility. This can only be done by a ‘Black Ops’ intelligence cadre.

(6): As noted, this ‘Black Ops’ offensive against the Editor, which has been conducted without a break by these maniacs since February 2008, has in recent weeks been extended to Michael C. Cottrell, B.A., M.S. Therefore:

(7): All things considered above, this is a deliberate, orchestrated dirty tricks ‘Black Ops’ offensive implemented by these desperate, filthy criminals lodged inside the US official structures which is supposed to demoralise us and make us ‘go away’. But when Hitler tried to demoralise the British people by bombing British cities, the British people stuck two fingers up in defiance at him, so that the entire bombing operation proved counterproductive.

• As noted above, it has been CONFIRMED to us from inside ‘special’ sources that this is a Cheney operation run through the National Security Agency, inherited by Biden.

In our case, not only has this disgraceful, low, dirty-minded rogue US Government verbal terrorism operation had absolutely no effect, but it has revealed to us loud and clear just how successful our exposures have been and continue to be, in thrusting a steel wrench and a muzzle onto and into the snout of the Unclean Beast and hauling him into an environment known as: ‘Rule of Law’.

The beast is filthy dirty, stinks, emits foul belches, utters imprecations and obscenities, most of which seem to be linked with homosexuality, and is now beside itself because for the past two years and more, this entire costly operation has proved to be a complete waste of its belching time.

And furthermore, the Beast has been caught stealing our US communications – a careless mistake typical of these reckless brainwashed basket cases who take risks as a matter of course.

And remember: THEY NEVER IMAGINED THERE COULD EVER BE ANY EFFECTIVE OPPOSITION.
Which is why the Beast is mad. And why he calls us on Sunday at 6:31 a.m. to have another belch.

CHENEY/BIDEN/NSA ‘BLACK OPS’ VERBAL TERRORISM PHONE CALLS RECEIVED IN OUR OFFICES: THIS IS DELIBERATE U.S. GOVERNMENT HARASSMENT BECAUSE WE ARE HITTING THE CRIMINALISTS’ NERVES AND ARE REFUSING TO BE INTIMIDATED AND TERRORISED
The tiresome detail of ‘NSA/Cheney/Biden ‘Black Ops’ Psy-Ops MK-ULTRA harassment ‘devil’ phone calls against the Editor of this service monitored during this New York visit is as follows:

17 March: 3.40 p.m.

19 March: 213-284 4199*:
All accessed via our 1-800 Number: stealing our telecommunications:
12:50 p.m.; 12: 51 p.m.; 12:52 p.m.; 12:53 p.m.; 01:24 p.m.; 05:44 p.m.

20 March: 213-284 4199*:
Accessed via our 1-800 Number: stealing our telecommunications:
1:24 p.m.

22 March:
All accessed via our 1-800 Number: stealing our telecommunications:
7:52 p.m.: 213-286 4100*
8:09 p.m.: ‘Out of Area’.

23 March:
Accessed via our 1-800 Number: stealing our telecommunications:
10:56 a.m: 213-286 4100*

24 March
All accessed via our 1-800 Number: stealing our telecommunications:
12:53 12:54 p.m.: ‘Out of Area’.: 213-325 3300
12:54 p.m.: ‘Out of Area’.
12:54 p.m.: ‘Out of Area’.
3:57 p.m.: 213-286 4199*
3:57 p.m.: 000-012 3456 Note immediate number switch. (Caller ID data)
4:09 p.m.: 213-286 4199*
9:03 p.m.: 213-286 4199*
9:16 p.m.: 000-012 3456
11:36 p.m.: 213-325 3300

26 March:
All accessed via our 1-800 Number: stealing our telecommunications:
12:00 noon
12:22 p.m.
3:46 p.m.: 213-325 3500
3:47 p.m.: 000-012 3456
3:48 p.m.: 213-325 3500
3:56 p.m.: 213-325 3500

27 March:
All accessed via our 1-800 Number: stealing our telecommunications:
11:57 a.m.: 213-286 4199*
12:37 p.m.: 000-012 3456
1:21 p.m.: 213-286 4199*
1:21 p.m.: ‘Out of Area’. Note immediate number switch.
1:29 p.m.: 213-286 4199*
1:30 p.m.: ‘Out of Area’.
2:06 p.m.: 213-286 4199*
2:06 p.m.: 213-286 4199*

* Traced to Teleport Communications, Los Angeles, CA.

28 March [Sunday]:
6:31 a.m.: 213-286 4199*
6:43 a.m.: ‘Out of Area’.
Landline disconnected.

6: 49 a.m.: Unable to get through to utter obscene imprecations against the Editor, the paid hack working for Cheney/Biden/NSA called Michael C. Cottrell at this hour to verbally terrorise him.

29 March [Monday] FOLLOWING POSTING OF THIS REPORT:
6.47 a.m.: ‘Out of Area’.
6:52 a.m.: 213-286 4199*
First landline disconnected.
Six further illegal attempts via our 1-800 number stealing our communication every few minutes.
Second landline disconnected.

• Note: It is clear that we have hit a nerve. Measures have now been taken to terminate this verbal terrorism perpetrated by the sick Cheney/Biden/NSA cadre. No doubt they think they are above the law as they deny the Rule of Law, and think they have carte blanche to continue perpetrating verbal terrorism against the Editor irrespective of this exposure. We will NOT BE INTIMIDATED.

There are also indications of some Canadian involvement. Under a disgraceful ‘Black Ops’ bilateral agreement between the US Intelligence Power and Canadian Intelligence, the Canadians spy on US citizens, and the Americans spy on Canadian citizens. That way, both have false ‘deniability’ and can state that they do not spy on their own citizens (or, in the case of Canada, subjects). The Canadian intelligence community is seriously corrupt and extremely unpleasant to have to deal with.

• Michael C. Cottrell has been attacked by the SAME ‘Psy-Ops’ operative who has been attacking the Editor since February 2008: for instance, during the Editor’s current New York visit Mr Cottrell was telephonically attacked inter alia as follows:

24 March: Three harassment calls from the Biden maniac.

26 March: Five harassment calls from the possessed nutcase working for Cheney’s NSA ‘Black Ops’ cadre under Biden: 4:00 p.m.; 4:01 p.m.; 4:03 p.m.; 4:07 p.m.; 4:08 p.m..

27 March: Harassment calls from the NSA-Cheney-Biden ‘Psy Ops’ maniac at 7:38 a.m. and 12: 52p.m.

SALVATORE R. DEFRANCESCO LINKED TO BIDEN:
THE NEW TWIST IN THE PENNSYLVANIA FRAUD
Pennsylvania Investments, Inc., owned by Michael C. Cottrell, B.A., M.S., with his wife Diane as a shareholder, was organised as Commonwealth of Pennsylvania Corporation Number 844244 filed on the 11th December 1984 by the Commonwealth of Pennsylvania Department of State Corporation Bureau approved by the signature of the Secretary of the Commonwealth of the day.

The corporation remains organised and incorporated as a Business Corporation under Section 204 of the Commonwealth of Pennsylvania Business Corporation Law act of 5th May 1933 (P.L. 364 (15 P.S. Section 1204) for the following purposes as stated in the founding documents [copies of which we hold on file] filed by the Commonwealth of Pennsylvania Department of State on 11th December 1984, namely: ‘To engage in and to do all lawful acts concerning any or all lawful business for which a corporation may be incorporated under the Business Corporation Law of Pennsylvania Act of May 5, 1933, P.L. 364, as amended’. And:

‘The term for which the corporation is to exist is: Perpetual’.

On 25th March 2010, Michael C, Cottrell, B.A., M.S., finally received a response from the following element of the Commonwealth of Pennsylvania’s bureaucracy [see our reports dated 19th and 24th March for background]:

Commonwealth of Pennsylvania
Department of State
Corporation Bureau
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8722
WWW.DOS.STATE.PA.US/CORPS

BUSINESS PROCESSING SECTION
717-787 1057

The document, dated 03/19/2010 was addressed to and contained the following:

RE: 844244
PENNSYLVANIA INVESTMENTS, INC.

To Whom it May Concern:

The enclosed filing is being returned for the following reasons:

1. 125 – Per 15 PAQ C.S. 1110 we don’t file this information.
2. 134 – There is no provision in the General Associations Act that enables the Department of State to change a corporate officer. Please contact the Pennsylvania Department of Revenue in order to report your current corporate officers. Department of Revenue Bureau of Receipts & Control Department 280430 Harrisburg, PA 17128-0430
3. 161 – Your check has been deposited. Please return this notice along with your corrected filing. Failure to do so may result in further rejections.

In our report dated 24th March 2010, we published the following
segment which it is necessary to reproduce here:

MR COTTRELL’S LATEST STRUGGLES WITH
DELIBERATELY UNCOOPERATIVE AND ARROGANT PA OFFICIALS
The officials at the Department of State knew precisely who he was as soon as he called, and proceeded to front a barrage of excuses for their inaction to date, including: ‘We don’t do that’; and:’ You should be speaking to the Pennsylvania Department of Revenue, not to us’; plus words to the effect …‘We can send your filing fee ($70) back’.

After speaking later with the Department of Revenue (in the course of which stressful conversation he was of course cut off), and having been informed condescendingly that ‘he should know’ that changes in corporate officers and their designations needed to be forwarded on Pennsylvania Department of Revenue form REV-1605, Mr Cottrell managed to access form REV-1605 (which they don’t tell you how to access), and thus proceeded to complete the form, which he then submitted [see below] and which reads as follows [The Editor has a copy of the completed form on file]:

Pennsylvania Department of State
Bureau of Corporate Taxes
PO Box 280430
Harrisburg PA 17128-0430

REV-1605 CT (1-10) Schedule Co.
Names of Corporate Officers
Corporate Account ID: XXXXXX*
Corporate Officers:
President/Managing Partner SSN XXX-XX-XXXX* COTTRELL MICHAEL C.
Vice President SSN XXX-XX-XXXX* COTTRELL MICHAEL C.
Secretary SSN XXX-XX-XXXX* COTTRELL MICHAEL C.
Treasurer/Tax Manager SSN XXX-XX-XXXX* COTTRELL MICHAEL C.
Business Name: Pennsylvania Investments, Inc.
EIN: XXXXXXXXX*
Street Address: 1157 West 7th Street
City: Erie
State: PA
Zip Code: 16502
Preparer’s Signature: [Signed] Michael C. Cottrell
Title: President, Vice President, Secretary and Treasurer
Telephone Number: (814) 455 9218
Date: 03/13/2010

* Known to the Editor of this service.

WICKED DIVERSIONARY TACTIC BY CORNERED
PENNSYLVANIA DEPARTMENT OF STATE OFFICIALS:
REPRESENTING THAT PENNSYLVANIA INVESTMENTS, INC.
IS A HOLDING COMPANY, WHICH IS NOT THE CASE
Furthermore, as you will doubtless have observed:

• First, the General Associations Act cited in the Corporation Bureau document dated 03/19/2010 but only received by Mr Michael C. Cottrell on 25th March 2010 is NOT the legislation under which Pennsylvania Investments, Inc. is incorporated in perpetuity.

On the contrary, as stated above, the corporation remains organised and incorporated as a Business Corporation pursuant to Section 204 of the Commonwealth of Pennsylvania Business Corporation Law act of 5th May 1933 (P.L. 364 (15 P.S. Section 1204) for the following purposes stated in the founding documents filed by the Commonwealth of Pennsylvania Department of State on the 11th December 1984: ‘To engage in and to do all lawful acts concerning any or all lawful business for which a corporation may be incorporated under the Business Corporation Law of Pennsylvania Act of May 5, 1933, P.L. 364, as amended’.

• Secondly, the General Associations Act cited in the State Corporation Bureau document dated 03/19/2010 but only received by Mr Cottrell on 25th March 2010 applies to HOLDING COMPANIES, and Pennsylvania Investments, Inc., is NOT A HOLDING COMPANY. Therefore, the bureaucrats in the Corporation Department have WILFULLY introduced A NEW, DELIBERATE DIVERSIONARY OBFUSCATION RED HERRING that contains a typically duplicitous trap, because:

• Thirdly, if Mr Cottrell did not have his wits in permanent overdrive and were to submit to this latest deception, the consequence might be DEEMED TO BE that the status of his corporation had thereby been changed from the status of a Business Corporation to that of a Holding Company.

• In the fourth place, the Corporation Bureau fraudulently contrived effective 8th March 2010 to place the Vice-President of Penn Acceptance Corporation, of 2007 Highway, Suite 315, Pittston TWP, PA 18640-40 on the Pennsylvania Investments, Inc., screen, as ‘Secretary’ of Pennsylvania Investments, Inc., and furthermore, REMOVED their fraudulent insertion of this Mafioso impostor after Mr Cottrell contacted the Governor of Pennsylvania, the Pennsylvania Secretary of State, the Attorney General, the Department of State and the Department of Revenue.

They therefore both IMPOSED and later REMOVED the local Mafioso impostor’s name onto and off the Pennsylvania Investments, Inc. screen without being in any way CONSTRAINED from doing so by the General Associations Act or by any other Statute or impediment.

Which, as you will very readily concur, means that THIS IS ANOTHER DELIBERATE, CONTRIVED, WICKED BUREAUCRATIC DEVICE BY THE SERPENT TO OBFUSCATE THE SITUATION AND TO TRY TO CREATE NEW DIFFICULTIUES IN ORDER TO FRUSTRATE THE PAYMENT OF THE MONIES THAT ARE OVERDUE AND PAYABLE TO PENNSYLVANIA INVESTMENTS, INC….

• AND to DEPRIVE Pennsylvania of $495 million in desperately needed windfall tax revenues.

Furthermore, as you will observe from the above, we are able to prove with this report that this operation is being orchestrated by the Vice President of the United States, Mr Joseph Biden, from Pennsylvania, who thinks he’s another Cheney and can orchestrate the embezzlement of money like Cheney was accustomed to doing.

• In the fifth place, Mr Cottrell’s cheque on behalf of Pennsylvania Investments, Inc., ‘has been deposited’ – i.e., the Corporation Bureau have TAKEN HIS MONEY. Since the CORRECT FORM REV-1605 of the Pennsylvania Department of Revenue was submitted on 23rd March 2010 as required by both the Department of Revenue and the Department of State, the screen for Pennsylvania Investments, Inc. should read as we stated on 24th March 2010, namely thus:

Pennsylvania Department of State
Corporations

Business Entity Filing

Business Name History
Name:
Pennsylvania Investments, Inc.

Name Type: Current Name

Business Corporation – Domestic – Information
Entity Number: 844244
Status: Active
Entity Creation Date: 12/11/1984
State of Business: PA
Registered Office Address: 1157 West Seventh Street, Erie PA 16502-0
Mailing Address: 1157 West Seventh Street, Erie PA 16502-0

Officers:

Name: MICHAEL C. COTTRELL
Title: President
Address: 1157 West Seventh Street, Erie PA 16502-25

Name: MICHAEL C. COTTRELL
Title: Vice President
Address: 1157 West Seventh Street, Erie PA 16502-25

Name: MICHAEL C. COTTRELL
Title: Secretary
Address: 1157 West Seventh Street, Erie PA 16502-25

Name: MICHAEL C. COTTRELL
Title: Treasurer/Tax Manager
Address: 1157 West Seventh Street, Erie PA 16502-25

THEY TOOK MR COTTRELL’S FILING MONEY
BUT DIDN’T CHANGE THE PENNSYLVANIA INVESTMENTS, INC. SCREEN
As at the time and date of this posting, the Commonwealth of Pennsylvania Corporation Bureau screen for Pennsylvania Investments, Inc., reads as follows:

Pennsylvania Department of State
Corporations

Business Entity Filing

Business Name History
Name:
Pennsylvania Investments, Inc.

Name Type: Current Name

Business Corporation – Domestic – Information
Entity Number: 844244
Status: Active
Entity Creation Date: 12/11/1984
State of Business: PA
Registered Office Address: 1157 West Seventh Street, Erie PA 16502-0
Mailing Address: 1157 West Seventh Street, Erie PA 16502-0

Officers:

Name: MICHAEL C. COTTRELL
Title: President
Address: 1157 West Seventh Street, Erie PA 16502-25*

*Note: Having examined several screens for Pennsylvania Corporations including that of Penn Acceptance Corporation, it is noted that the entry against ‘Registered Office Address’ always has the zip code number followed by: -0; whereas the addresses of the officers have the zip code with two different digits, so that in Mr Cottrell’s case, the zip against the officers would read: 16502-25. [In the report dated 24th March 2010, we stated that the officers would have an address zip code: 16502-0. This has been corrected to: 16502-25 in accordance with the Corporation Bureau norm].

SO, MR COTTRELL FAXED THE GOVERNOR OF PENNSYLVANIA’S OFFICE OF GENERAL COUNSEL, THE GOVERNOR OF PENNSYLVANIA, EDWARD G. RENDELL, THE PENNSYLVANIA DEPARTMENT OF STATE CORPORATION DEPARTMENT AND THE PENNSYLVANIA DEPARTMENT OF REVENUE ALL OVER AGAIN, WITH ALL THE DOCUMENTS.

THAT WAY, A MASSIVE PAPER TRAIL PERTINENT
TO ‘MISPRISION OF FELONY’ IS ON THE RECORD
Since, despite banking Mr Cottrell’s cheque on behalf of Pennsylvania Investments, Inc., the Commonwealth of Pennsylvania Corporation Bureau has STILL CONTRIVED NOT TO DISPLAY THE AMENDMENTS REQUIRED BY MR COTTRELL PER PENNSYLVANIA DEPARTMENT OF REVENUE FORM REV-1605 [see above], Mr Michael C. Cottrell, B.A., M.S. faxed and refaxed the documents identified in the following FAX COVER sheets to the named recipients at the times specified below on 26th March 2010 and on the earlier dates also specified herewith:

………………………………………………………………

(1): Governor’s Office of General Counsel:
Faxed 26th March 2010: 11:27 a.m. to 11: 48 a.m.

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Governor’s Office of General Counsel
333 Market Street, 17th Floor
Harrisburg, PA 17101

REF: Pennsylvania Department of State
FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp

RE: FRAUD AGAINST THIS FIRM STILL CONTINUES:
PERPETRATED B Y VICE PRESIDENT BIDEN
AND SALVATORE DEFRANCESCO et al.

VIA: FAX (717) 772-8570

ITEMS ENCLOSED:
[Note: We are not displaying these items here except to reproduce again, as Appendix 1, the Letter of Notification regarding the Fraudulent Entry of Salvatore DeFrancesco, as we did for the report dated 24th March 2010; and we also reproduce, as Appendix 2, The Certificate of Adoption of Corporate Resolution dated 3/13/2010].

(1): FORM REV-1605 – Completed, Signed and Dated.

(2): (1): Letter of Notification regarding: Fraudulent Entry on www.corporations.state.pa.u.s/corp by person(s) unknown against Pennsylvania Investments, Inc. [3/8.2010]: 3 Pages
Exhibit “A”-1, Exhibit “B”:-1 thru 4, Exhibit “D”-1 & 2.

(3) COPIES 1 & 2 OF ARTICLES OF AMENDMENT – DOMESTIC
CORP (15, Pa. C.S.) PER DEPARTMENT OF STATE INSTRUCTIONS;

• EXHIBIT A – CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION DATED 3/13/2010.

[Note: They don’t want this document on file: see Appendix 2 below].

• COPY OF PERSONAL CHECK FOR $70.00 USD.

• COPY OF SIGNED DELIVERY AND ACCEPTANCE OF DOCUMENTS BY DEPARTMENT OF STATE [dated] 18 MARCH 2010.

NOTE: STILL AS OF THIS DATE, THERE HAS BEEN NO CORRECTIVE ACTION TAKEN TO RECTIFY THE FRAUDULENT SITUATION THAT CAN PREVENT THIS FIRM’S LEGAL AND LAWFUL RECEIPT OF FIFTEEN BILLION+ UNITED STATES DOLLARS.

[Signed]:
MICHAEL C. COTTRELL, B.A., M.S.
PRESIDENT, CEO, TREASURER AND SECRETARY
3-26-2010

Page 1 of 38 pages.

………………………………………………………………

(2): The Honorable Edward G. Rendell
Governor of Pennsylvania
Faxed 25th March 2010: 6:13 p.m. to 6:32 p.m.

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: The Honorable Edward G. Rendell
Governor of Pennsylvania
225 Main Capitol Building
Harrisburg, PA 17120

REF: Department of State
Department of Revenue

RE: REV-1605 FORM

VIA: FAX (717) 772-8264

ITEMS ENCLOSED:
[Note: We are not displaying these items here except to reproduce again, as Appendix 1, the Letter of Notification regarding the Fraudulent Entry of Salvatore DeFrancesco, as we did for the report dated 24th March 2010; and we also reproduce, as Appendix 2, The Certificate of Adoption of Corporate Resolution dated 3/13/2010].

(1): FORM REV-1605 – Completed, Signed and Dated.

(2): (1): Letter of Notification regarding: Fraudulent Entry on www.corporations.state.pa.u.s/corp by person(s) unknown against Pennsylvania Investments, Inc. [3/8.2010]: 3 Pages
Exhibit “A”-1, Exhibit “B”:-1 thru 4, Exhibit “D”-1 & 2.

(3) COPIES 1 & 2 OF ARTICLES OF AMENDMENT – DOMESTIC
CORP (15, Pa. C.S.) PER DEPARTMENT OF STATE INSTRUCTIONS;

• EXHIBIT A – CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION DATED 3/13/2010.

[Note: They don’t want this document on file: see Appendix 2 below].

• COPY OF PERSONAL CHECK FOR $70.00 USD.

• COPY OF SIGNED DELIVERY AND ACCEPTANCE OF DOCUMENTS BY DEPARTMENT OF STATE [dated] 18 MARCH 2010.

[Signed]:
MICHAEL C. COTTRELL, B.A., M.S.
PRESIDENT, CEO, TREASURER AND SECRETARY
3-25-2010

Page 1 of 31 pages

………………………………………………………………

(3): Pennsylvania Department of State
CORPORATION BUREAU
Faxed 23rd March 2010: 11:00 a.m.. to 11:15 a.m.

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
CORPORATION BUREAU
Harrisburg, PA 17105-8722

ATTN: SALLY KROW

RE: REV-1605 FORM

VIA: FAX (717) 783-2244

ITEMS ENCLOSED:
[Note: We are not displaying these items here except to reproduce again, as Appendix 1, the Letter of Notification regarding the Fraudulent Entry of Salvatore DeFrancesco, as we did for the report dated 24th March 2010; and we also reproduce, as Appendix 2, The Certificate of Adoption of Corporate Resolution dated 3/13/2010].

(1): FORM REV-1605 – Completed, Signed and Dated.

(2): (1): Letter of Notification regarding: Fraudulent Entry on www.corporations.state.pa.u.s/corp by person(s) unknown against Pennsylvania Investments, Inc. [3/8.2010]: 3 Pages
Exhibit “A”-1, Exhibit “B”:-1 thru 4, Exhibit “D”-1 & 2.

(3) COPIES 1 & 2 OF ARTICLES OF AMENDMENT – DOMESTIC
CORP (15, Pa. C.S.) PER DEPARTMENT OF STATE INSTRUCTIONS;

• EXHIBIT A – CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION DATED 3/13/2010.

[Note: They don’t want this document on file: see Appendix 2 below].

• COPY OF PERSONAL CHECK FOR $70.00 USD.

• COPY OF SIGNED DELIVERY AND ACCEPTANCE OF DOCUMENTS BY DEPARTMENT OF STATE [dated] 18 MARCH 2010.

[Signed]:
MICHAEL C. COTTRELL, B.A., M.S.
PRESIDENT, CEO, TREASURER AND SECRETARY
3-23-2010

Page 1 of 29 pages

………………………………………………………………

(4): Pennsylvania Department of Revenue
Faxed 23rd March 2010: 10:42 a.m. to 10:59 a.m.

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of Revenue
P.O. Box 280430
Harrisburg, PA 17128-0430

ATTN: Bureau of Corporation Taxes

RE: REV-1605 FORM

VIA: FAX (717) 705-6227

ITEMS ENCLOSED:
[Note: We are not displaying these items here except to reproduce again, as Appendix 1, the Letter of Notification regarding the Fraudulent Entry of Salvatore DeFrancesco, as we did for the report dated 24th March 2010; and we also reproduce, as Appendix 2, The Certificate of Adoption of Corporate Resolution dated 3/13/2010].

(1): FORM REV-1605 – Completed, Signed and Dated.

(2): (1): Letter of Notification regarding: Fraudulent Entry on www.corporations.state.pa.u.s/corp by person(s) unknown against Pennsylvania Investments, Inc. [3/8.2010]: 3 Pages
Exhibit “A”-1, Exhibit “B”:-1 thru 4, Exhibit “D”-1 & 2.

(3) COPIES 1 & 2 OF ARTICLES OF AMENDMENT – DOMESTIC
CORP (15, Pa. C.S.) PER DEPARTMENT OF STATE INSTRUCTIONS;

• EXHIBIT A – CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION DATED 3/13/2010.

[Note: They don’t want this document on file: see Appendix 2 below].

• COPY OF PERSONAL CHECK FOR $70.00 USD.

• COPY OF SIGNED DELIVERY AND ACCEPTANCE OF DOCUMENTS BY DEPARTMENT OF STATE [dated] 18 MARCH 2010.

[Signed]:
MICHAEL C. COTTRELL, B.A., M.S.
PRESIDENT, CEO, TREASURER AND SECRETARY
3-23-2010

Page 1 of 29 pages

………………………………………………………………

IN MEMORIAM AND HORIZONTALISATION NEWS:

MANAGING DIRECTOR OF THE ABU DHABI INVESTMENT AUTHORITY [SCAMMED BY BUSH]
Ahmed bin Zayed Al Nahyan, the Managing Director of the Abu Dhabi Investment Authority, was reported by the Morrocan official news agency MAP to be ‘missing’ after his ‘glider’ crashed into a lake in Morocco on Friday 26th March 2010. The pilot of the craft was rescued ‘in good condition’. Sheikh Al Nahyan was the younger brother of Sheikh Khalifa, Ruler of the United Arab Emirates.

The glider went down near the Sidi Mohammed Ben Abdullah Dam, which forms the lake, located in the Atlantic coastal region near the town of Skhirat, about 35 kilometres south of the Moroccan capital, Rabat. One of the Moroccan royal palaces is located in Skhirat.

Although the AIDA issued its first-ever annual statement literally last week, the document contained no information on the entity’s balance sheet or on the overall size of the fund’s holdings. That’s not surprising because its balance sheet is stuffed with worthless derivative assets, AIDA having been exploited by the Bush Crime Family’s Fraudulent Finance operations.

Whether Al Nahyan was pushed out of the craft over the lake may never be known, of course.

• Barbara Bush in hospital:
Naturally, the foregoing has nothing whatsoever to do with the Houston Chronicle’s 28th March 2010 report that Mrs Barbara Bush, aged 84, who is said to have gained control over some of her husband’s affairs, was admitted to the local Methodist Hospital for ‘routine tests’, according to Jean Becker, George Bush Sr.’s Chief of Staff. Mrs Bush, who underwent surgery to replace her aortic valve in March 2009, was expected to be released ‘in a day or two’.

• On 27th March, a London metals trader, Andrew Maguire, who warned an investigator for the US Commodity Futures Trading Commission (the CFTC) in advance about an intended gold and silver market manipulation operation planned by traders at JPMorgan Chase in February 2010, and whose whistleblowing was publicised by a gold lobby representative at a CFTC hearing held on 25th March 2010 on metals futures trading, was injured with his wife when their car was struck by a hit-and-run driver in the London area. The couple were admitted to the nearest hospital with minor injuries but are expected to recover fully. In a report to a colleague, Mr Maguire said that his car was rammed, apparently deliberately, by a vehicle that rushed out of a side road. The rogue driver was caught by police after a chase in which police helicopters were deployed.

• Note: We will be migrating the crisis-linked In Memoriam and Horizontalisation News spot to the upgraded website when it’s ready, and at that stage we will incorporate the sizeable file of cases that have accumulated since we last updated the list [Archive].

The series will be maintained in a new facility to be added to the website entitled Databank, which will hold lists and other accumulated data published in the reports Archive.

………………………………………………………………

APPENDIX 1:

MICHAEL C. COTTRELL’S LETTER OF NOTIFICATION OF 9TH MARCH 2010 TO THE PENNSYLVANIA DEPARTMENT OF STATE DEMANDING THE IMMEDIATE REMOVAL OF THE NAME OF THE MAFIA IMPOSTOR SALVATORE DE FRANCESCO FROM THE PENNSYLVANIA INVESTMENTS, INC. STATE CORPORATION BUREAU’S OFFICIAL SCREEN, FRAUDULENTLY SHOWING THE IMPOSTOR MAFIOSO AS ‘SECRETARY’ OF THE CORPORATION:

(1): FAX COVER
PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8721

Attention: Ms. Butler, Supervisor

Via: Fax: 717-783 2244

ITEMS ENCLOSED:
(1): Letter of Notification regarding: Fraudulent Entry on www.corporations.state.pa.u./corp by person(s) unknown against Pennsylvania Investments, Inc. [3/8.2010]: 3 Pages
(2): Exhibit “A”: 12 Pages
(3): Exhibit “B”: 5 Pages
(4): Exhibit “C”: 3 Pages
(5): Exhibit “D”: 15 Pages.

Number of pages including cover: 39
9 March 2010
………………………………………………………………

(2): LETTER OF NOTIFICATION TO
PENNSYLVANIA DEPARTMENT OF STATE:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8721

Attention: Ms. Butler, Supervisor

Reference:
Due Diligence Accounts Payable [Nov 19th, 2004 to March 25th, 2008]

RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010)

Via: Fax: 717-783 2244/ AND U.S. MAIL

Dear Ms. Butler:
Per our conversation this date, between approximately 9:34 a.m. EST and 9:40 a.m. EST, I stated to you that Pennsylvania Investments, Inc. is to receive funds in the amount of Fifteen Billion United States Dollars ($15,000,000,000.00 USD):

[Ref: Exhibit “B, Page 1” Payables Due with the Due Diligence Documentation Part 1 and Part 2, dated November 19, 2004 to March 23, 2008]

derived from a “Settlement” between the United States of America, the World Court, the People’s Republic of China, with the signed approval of President Barack Obama, and a loan of Six Point Two Trillion United States Dollars ($6,200,000,000,000.00 USD) to Pennsylvania Investments, Inc., via Her Majesty, the Queen of England (Sovereign of the United Kingdom of Great Britain and Northern Ireland) for the purpose of a Private Funding Refunding of the United States Dollar (Ref: Exhibit “B” Pages 2-4, an Affidavit submitted to Her Majesty, et al. On 29 December 2008).

Additionally, I stated to you that Pennsylvania Investments, Inc. (including Michael C. Cottrell) will pay an amount of Pennsylvania Corporate and Personal taxes of approximately Four Hundred and Ninety-Five Million United States Dollars ($495,000,000.00 USD) from this “Settlement” process.

Page 2: RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010):

However, the Pennsylvania Department of State has now become [a] knowing or unknowing participant in the ongoing fraudulent activities [being] attempted to divert said funds and the payment of Pennsylvania Corporate Taxes and/or to steal and place said funds in “off-balance sheet account(s)” with the aid of bank and political fraudsters – located in London (UK), Paris (France), Geneva (Switzerland), Houston and Dallas (Texas), Washington, D.C., and various locations in the Commonwealth of Pennsylvania

The above referenced fraudulent activity is evidenced by the placement of “SALVATORE R. DEFRANCESCO as SECRETARY” as Officer of Pennsylvania Investments, Inc. screen dated March 8, 2010 WITHOUT a correspondent Amendment of Articles – WITHOUT THE KNOWLEDGE OR APPROVAL OF THE DIRECTORS/OWNERS OF PENNSYLVANIA INVESTMENTS, INC.

Therefore, this corporation hereby demands that the name “SALVATORE R. DEFRANCESCO as SECRETARY” BE REMOVED IMMEDIATELY FROM THE SCREEN PAGE IDENTIFYING ENTITY 844244: PENNSYLVANIA INVESTMENTS, INC., 1157 WEST 7TH STREET, ERIE PA 16502-0.

Further, this corporation demands an investigation and a FULL REPORT TO THE BOARD OF DIRECTORS – as to who gave the authority for this name to be placed on said screen, what evidence [exists] of authorization granting said person the position of SECRETARY for this corporation, and what action will be taken against said person committing the fraudulent entry.

If the offending item is not removed immediately upon the facsimile receipt of this letter and documentation, this corporation will move legally for fraud against the Secretary of the Commonwealth, the Honorable Pedro A Cortes, et al., and against SALVATORE R. DEFRANCESCO (INDIVIDUALLY AND SEVERALLY) for Fraud against Pennsylvania Investments, Inc., for THREE (3) TIMES DAMAGES, e.g., FORTY-FIVE BILLION UNITED STATES DOLLARS ($45,000,000,000.00 USD) – since the payment is IMMINENT and therefore the screen identified can be used to divert or steal the aforementioned funds, e.g. [for account of] FIDELITY DEPOSIT & DISCOUNT BANK, et al., and/or PENN ACCEPTANCE CORPORATION, et al..

This firm has NO ACCOUNTS with either. The stated funds are to be deposited with this firm’s identified Securities Account at Morgan Stanley & Co, New York, NY.

Page 3: RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010):

Thank you for your immediate attention and assistance in this matter.

Regards,

Michael C. Cottrell, B.A., M.S.
President, CEO and Secretary
Pennsylvania Investments, Inc.
1157 West 7th Street
Erie, PA 16502-1106

Reference:
Exhibit “A”: Pages 1 thru 11;
Exhibit “B”: Pages 1 thru 4;
Exhibit “C”: Pages 1 and 2;
Exhibit “D”: Pages 1 thru 13.

CC:
(1): The Honorable Edward G. Rendell, Governor of Pennsylvania
(2): The Honorable Pedro A Cortes, Secretary of the Commonwealth
(3): The Honorable Tom Corbett, Pennsylvania Attorney General
(4): Robert S. Cessar, United States Attorney, Pittsburgh, PA
(5): A. Clifton Hodges, Esq., Hodges and Associates, 4 East Holly Street,
Suite 202, Pasadena, CA 91103
(6): Mr William Bonney, Sr., BOLDCAP
(7): Mr Dana V. Wilcox

………………………………………………………………

APPENDIX 2:

Note:
This document [with introduction] was posted as the FOREWORD to our report dated 19th March 2010. The Pennsylvania Department of State are resisting the filing of this document

ARTICLES OF AMENDMENT RE: PENNSYLVANIA INVESTMENTS, INC. DATED 13TH MARCH 2010:
Submitted with the $70 necessary filing fee to Pennsylvania Department of State, Corporation Bureau by Pennsylvania Investments, Inc., 1157 West 7th Street, Erie, PA 16502, on 15th March 2010. Pennsylvania Investments, Inc. was incorporated on 11th December 1984 under the following Pennsylvania Statute: 19 PA CODE CH. 35 (1933) P.L. 354, as amended. The Articles of Amendment stated that: ‘The amendment shall be effective on March 13th [2010] at 12:01 pm.’

The amendment was adopted by the Board of Directors pursuant to 15 Pa. C.S. Section 1914(c) or Section 5914(b). ‘The amendment adopted by the Corporation is set forth in Exhibit A attached hereto and made a part hereof’. ‘In testimony whereof, the undersigned corporation has caused these Articles of Amendment to be signed by a duly authorized officer thereof this 13th day of March 2010: PENNSYLVANIA INVESTMENTS, INC.

[Signed] Michael C. Cottrell: Title: PRESIDENT, CEO, SECRETARY AND TREASURER: 3/13/2010

Exhibit A forming an integral part of these Articles of Amendment:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814-453 4453
Email: pii-mcc@msn.com; pii3mcc@gmail.com

EXHIBIT “A”: 13 March 2010

CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION

I hereby certify that at a meeting of the Board of Directors of Pennsylvania Investments, Inc., a corporation organized and existing under and by virtue of the laws of the state of Pennsylvania, held on the 13th day of MARCH, 2010 at which said meeting a quorum was present and acting throughout, the following resolutions were adopted and ever since have been and now are in full force and effect:

RESOLVED, that due to the attempted fraudulent devices indicated by the PENNSYLVANIA DEPT. OF STATE (www.corporations.state.pa.us/corp) of 8 MARCH 2010, et al., THIS CORPORATION HEREBY DECLARES any and all corporate resolutions pertaining to bank accounts excluding PNC ACCOUNT, ROBIN DRIVE, ERIE, PA, and all other Securities Accounts, excluding MORGAN STANLEY SECURITIES ACCOUNT (16 November 2005), as NULL AND VOID;

RESOLVED, that since this corporation has never granted a non-owner of shares of this corporation any directorship or office, it hereby grants Michael C. Cottrell, B.A., M.S., the retention of full authorities and powers as President, Vice President, Treasurer and Secretary, and is thereby granted full authorization and control of this corporation as per this duly authorized resolution;

IN WITNESS WHEREOF, I have hereunto set my signature
for said corporation this 13th day of March, 2010.

[Signed]:
Michael C. Cottrell, B.A, M.S.
President, CEO, Treasurer, & Secretary
Date: 3/13/2010

[Signed]:
Diane R. Cottrell, B.A., M.A.
(A.K.A. Diane R. Bertolini, B.A., M.A.)
Shareholder
Date: 3/13/2010

• Note: The Editor of this service holds copies
of these Articles of Amendment and of Exhibit “A” in our files.

………………………………………………………………

APPENDIX 3:

The following document was not included in the urgent fax sent by Mr Cottrell dated 9th March 2010 to the Pennsylvania Department of State but is included herewith for reference [and was included in our report dated 19th March 2010]:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

16 NOVEMBER 2005

CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION

I hereby certify that at a meeting of the Board of Directors of Pennsylvania Investments, Inc., a corporation organized and existing under and by virtue of the laws of the State of Pennsylvania, held on the 16th day of November 2005 at which said meeting a quorum was present and acting throughout, the following resolutions were adopted and ever since have been and now are in full force and effect:

RESOLVED,
that US Dollar account(s) be established at Morgan Stanley & Co. Incorporated located at 1221 Avenue of the Americas, New York, New York 10020.

RESOLVED,
that Michael C. Cottrell, M.S., as President and Secretary, is hereby empowered with full legal authority to sign any necessary documents to open and conduct business within said account(s) on behalf of this Corporation;

FURTHER RESOLVED, that Michael C. Cottrell, M.S., is hereby granted authority to make, execute, and deliver, any and all written instructions necessary or proper to effectuate the authority hereby conferred to sign any and all necessary documents required to execute instructions regarding activities within said account(s).

IN WITNESS WHEREOF, I have hereunto set my signature for said corporation this 16th day of November, 2005.

[Signed]
Michael C. Cottrell
President and Secretary
Date: 11-16-2005

[Signed]
Diane R Bertolini-Cottrell, B.A., M.A.
Shareholder
Date: 11-16-2005.

………………………………………………………………

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS ARE IN BREACH [SEE REPORTS]:

All securitisation is illegal under US and Common Law: see report dated 10th March 2010.

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

Therefore, you should be advised that the GENUINE ORIGINAL REPORT is, by obvious definition, accessible ONLY FROM THIS WEBSITE. If you come across an article elsewhere that is attributed to the Editor of this service, you should refer to the ORIGINAL ARTICLE HERE and you should bear in mind that the illegally duplicated article may contain text that was NOT written by the Editor of this service, but which was inserted for malicious purposes by counterintelligence.

Likewise, although we haven’t yet had time to elaborate this issue, we have taken drastic steps around the world to close off the malicious piracy of our books. One technique used by several disreputable sites (in the United States, the Netherlands and Switzerland) is to copy our title(s) and (a) to display an image of the front cover WITHOUT THE ISBN DATA at the top of the cover; and (b) to DELETE THE COPYRIGHT PAGE. In so doing, the criminal pirates proclaimed that they knew perfectly well that they were/are engaged in theft and can be prosecuted for stealing copyright.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

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• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

• It is suitable for PC’s but not for Mac computers. As with all such programs, the License is renewable at a modest fee annually. This is done on-line in the usual way [with the supplier direct].

NEW ‘COLLATERAL’ FOR ‘REVENUE ANTICIPATION BOND’

cropped-chrisstory

AS SOON AS OBAMA SIGNED THE HEALTH BILL: AN IMMEDIATE START-UP OF THE FRAUDULENT CAROUSEL VIA THE FED AND THE SWEDISH RIKSBANK

Wednesday 24 March 2010 01:35

• THE REASON BEHIND THE RUSH TO STAMPEDE THE UNREAD HEALTH BILL THROUGH

• U.S. TREASURY CONJURES UP A ‘REVENUE ANTICIPATION BOND’

• HEALTH CARE FINANCIAL PIPELINE NEEDED AS ‘COLLATERAL’
FOR AN IMMEDIATE, GREEDY RENEWAL OF THE CAROUSEL

• THE QUEENS’ LOAN MONEY IS REPORTED TO HAVE BEEN
ILLEGALLY MOVED AND IS NOT WHERE IT SHOULD BE

• MEMORANDUM TO THE MI-6 (MI-9) OFFICERS IN CHARGE
OF RESOLVING THIS CRISIS, AND INTERPOL

• ANOTHER MOTIVE: PAYEES ARE DEMANDING CASH, IN UNISON

• HEALTH CARE MONEY PIPELINE ALREADY ENCUMBERED LIKE SOCIAL SECURITY

• FRAUDULENT FINANCE IMPERATIVE BEHIND THE UNSEEMLY, GREEDY RUSH

• MORE PENNSYLVANIA DEPARTMENT OF STATE DECEIT

• MAFIOSO SITTING IN HIS OFFICE AS BEFORE

• MR COTTRELL’S LATEST STRUGGLES WITH DELIBERATELY
UNCOOPERATIVE AND ARROGANT PA OFFICIALS

• SECRET DIVERSION INSTRUCTIONS MAY STILL BE ‘LIVE’

• MS. BUTLER COULDN’T BE BOTHERED TO SEND
MR COTTRELL’S PAPERS TO SALLY KROW IN THE SAME BUILDING

• NEW DOCUMENTS SUBMITTED TO THE PA AUTHORITIES

• WHAT THE PENNSYLVANIA INVESTMENTS, INC. CORPORATE SCREEN
WITH THE PA DEPARTMENT OF STATE SHOULD LOOK LIKE NOW

SECURITIZATION IS ILLEGAL UPDATE: In the Subs/Books Update panel immediately below the NEWS panel that you are currently viewing, you will see an announcement concerning publication of Economic Intelligence Review, Volume 12, Numbers 7 & 8. If you press that announcement text and open up the panel, you will see the contents list for the new [2010Q1] issue of E.I.R., including a breakdown of the Chapter Headings for the detailed analysis showing that Securitization is illegal. See our NEWS report dated 10th March 2010 for summaries of some of the data from this analysis. We understand that the report has created uproar in certain corridors of corrupt power.

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

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Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

NEW REPORT STARTS HERE:

THE REASON BEHIND THE RUSH TO STAMPEDE THE UNREAD HEALTH BILL THROUGH
No doubt you may have wondered what all the rush to get the Health Care Bill onto Mr Obama’s desk was all about, and why it was necessary for harassed US legislators to meet all weekend to agree a colossal convoluted piece of Talmudic legislation that none of them were given time to read, so that Mr Obama could sign it into law on Monday 22nd March, whether the law made sense, was legal, or not. Even the House Speaker, Mrs Nancy Polosi, is reported to have said, slyly and pointedly: ‘We won’t know what’s in this bill until it’s become law’.

Well, here’s the answer to the implied questions: what was all the fuss and rush about?

And why did Obama postpone his trip back home to Indonesia after it had been announced – thus revealing that the Health Care Hassle was in fact motivated by an agenda hidden from public view and understanding?

U.S. TREASURY CONJURES UP A ‘REVENUE ANTICIPATION BOND’
With the Health Care Financial Pipeline Bill that was plonked into Obama’s desk with a thud having been signed, the following preplanned financial skullduggery steps were immediately put in play:

(1): A so-called REVENUE ANTICIPATION BOND based on the pipeline of money which is the whole purpose of the Health Care Bill, as we pointed out in our report dated 19th March (1), was activated through the US Treasury.

(2): This REVENUE ANTICIPATION BOND was made available by the Treasury to the Federal Reserve, which is engaged in a hypothecation operation, running it through the oh-so-helpful Swedish Riksbank (the central bank of Sweden).

HEALTH CARE FINANCIAL PIPELINE NEEDED AS ‘COLLATERAL’
FOR AN IMMEDIATE, GREEDY RENEWAL OF THE CAROUSEL
The ‘rush’ to get the Health Care mish-mash onto the Statute Book, and Obama’s postponement of his visit home, was nothing whatsoever to do with the grandiose objectives and grandstanding promulgated by Mr Obama and his apologists.

On the contrary, it had everything to do with creating a new ‘basis’ for further Fraudulent Finance and hidden hypothecation operations.

This programme is being handled by Dr Ben Bernanke and his associate, Mr Dudley, who serves on the Bank for International Settlements’ (BIS) money-shuffling committee whereby, with no checks or balances, money is scooped up from wherever, and often corruptly placed into trades without any accountability whatsoever.

THE QUEENS’ LOAN MONEY IS REPORTED TO HAVE BEEN
ILLEGALLY MOVED AND IS NOT WHERE IT SHOULD BE
Equipped with this new ‘collateral’ basis, it appears that the Geithner Treasury, the Bernanke Federal Reserve, and complicit European central banks, snapped immediately into gear as soon as Obama had signed the bill – starting up the Fraudulent Finance carousel via the Federal Reserve Inter Bank Settlement Fund and almost certainly stealing and diverting some of the Queen’s Loan money in the process.

Because we have been informed that The Queen’s Loan funds payable to Pennsylvania Investments, Inc., are [as of 23rd March 2010] not where they should be at this point in time – contrary to the situation prevailing PRIOR to Mr Obama’s signature of the Health Care Bill.

The highest-level criminalists’ motivation, apart from restarting the Fraudulent Finance carousel, is to snub The Queen and the Chinese parties and to proclaim from behind the scenes: ‘We aren’t going to be told what to do by you’, even though their serial criminality is fully understood in all the relevant corridors of power around the world, and in all the key chancelleries and by all the Heads of State and their staff who matter.

Their serial criminality is also well understood by the non-rogue component of the US Intelligence Power, straining to get this done – which our best sources indicate is at war with the Bush-Clinton Mafiosi serving the interests of the DVD and France, within the Central Intelligence Agency (proxy for the CIA and its 17+ ‘subsidiaries’).

MEMORANDUM TO THE MI-6 (MI-9) OFFICERS IN CHARGE
OF RESOLVING THIS CRISIS, AND INTERPOL
Get cracking immediately and establish what has happened to the Queen’s Loan money.

Take on board the corruption, by extension, of the Swedish Riksbank and any other European central banks involved in this latest leg of White House and Treasury corruption, diversion and stealing of The Queen’s funds.

Use the phrase RULE OF LAW in every conversation with these criminals. And bear in mind that we are on to this latest diversion, just as we picked up on the earlier diversions and thefts.

All concerned, from the British intelligence officers to the Paymaster, are on the line here. It’s got to be sorted and the highest-level corruption has to be exposed.

What on earth is your problem? You can see that we have made colossal strides by the use of PUBLICITY and that this website is read all over the world.

PUBLICISE THE OFFICIAL CRIMINALITY, instead hiding behind sterile and redundant diplomatic and intelligence norms of behaviour. These people are organised criminals who don’t acknowledge the usual diplomatic niceties, and they need to be exposed. YOU CAN EXPOSE THEM.

Don’t be so weak. You have the smarts to sting these people. You like doing stings. Start applying these Black Arts to appropriate effect, instead of weakly standing around metaphorically wringing your hands as these crooks steal and divert the money for the n’th time. They always think they can get away with it. Work as hard as we work, i.e. 24/7, and make it clear to these demons that they will not get away with their serial thievery and corruption.

• We have received unconfirmed reports of a new influx of Interpol officers into the United States since the Editor has been resident in New York (i.e. since 16th March 2010).

ANOTHER MOTIVE: PAYEES ARE DEMANDING CASH, IN UNISON
Ostensibly another rationale here is that all payees that must be paid (i.e. whom the kleptocracy cannot avoid paying) are demanding CASH (as they won’t accept US Treasuries in lieu) and as the Obama Administration has no cash (the real cash-cash having been alienated, leveraged, spent, traded, accounted for, stolen, take your pick), they have to generate new cash seed money, which they are doing ‘as we speak‘ by running the newly-authenticated Treasury Revenue Anticipation Bond through the corrupt Swedish central bank.

Of course so far as the Riksbank is concerned, what they are doing is ‘not corrupt’ because they are working with the Federal Reserve: that’s how they would justify their behaviour here.

HEALTH CARE MONEY PIPELINE ALREADY ENCUMBERED LIKE SOCIAL SECURITY
Before we go any further, note that Obama has therefore already encumbered the new Health Care Financial Pipeline – indicating with crystal clarity that it is regarded as an open-ended, mandatory, endless pipeline of NEW CASH which can be spent at all times in advance, FOR EVER, just like the Social Security surpluses that have been squandered.

As repeatedly pointed out in these reports, the surpluses in the so-called Federal Budget Trust Funds (which cease to be surpluses this Fiscal Year, by the way) are required by US Statute to be ‘invested’ in the Federal Budget’s Federal Funds – that is to say, used for current expenditure.

This means that the surpluses ‘invested’ in Federal Debt held by Government Accounts must be added back not once, but twice: first, because they have long since been squandered on ‘current spending’; and secondly, because they will be needed to meet future mandatory welfare and Social Security obligations.

Since the Social Security Trust Funds are sliding into deficit (for demographic reasons) for the first time this year, the situation on that front is therefore deteriorating rapidly. A chart on page 55 of the current issue of Economic Intelligence Review showing the Federal Debt data (on the basis of the Office of Management and Budget’s published numbers) adjusted to take full account of the above, shows that the corrected level of US Federal Debt outstanding rises from $23 trillion to $30 trillion between FY 2010 and FY 2014 (2) .

FRAUDULENT FINANCE IMPERATIVE BEHIND THE UNSEEMLY, GREEDY RUSH
So, the colossal Health Care Bill was stampeded though the Legislature without US Legislators having a clue what it contained, in order to provide Mr Obama and the Geithner Treasury with the basis for the issuance of a Revenue Anticipation Bond, enabling the Treasury to conduct refunding operations itself and to reignite/carry on corrupt ‘business as usual’ with the kind assistance of the Federal Reserve and the Swedish Riksbank.

And legislators have been drinking champagne in front of the TV cameras to celebrate. But what they are celebrating is NOT an earth-shattering, once-in-a-millennium piece of legislative reform for the benefit of the American people, but rather the creation of a new ‘collateral’ basis that enables these criminals to restart the Fraudulent Finance carousel.

They’ve all been suffering from withdrawal symptoms since their easy fake money playthings were taken away from them in mid-September 2008.

It is our intention to ensure that the champagne that these scoundrels have been quaffing in front of the cameras with such odious arrogance is metaphorically billed to their account.

MORE PENNSYLVANIA DEPARTMENT OF STATE DECEIT
Meanwhile, the Pennsylvania Fraud – A KEY ELEMENT OF THIS SKULDUGGERY – has taken several further extraordinary turns since we last reported, suggesting that the Pennsylvania Department of State and the Pennsylvania Department of Revenue, which stands to gain $495 million in windfall corporate and personal tax revenues following the payment due to Pennsylvania Investments, Inc., mandated by international authorities, are integrated with the White House in perpetrating this corruption and scamming of the American people, not to mention the inhabitants of the Commonwealth of Pennsylvania.

MAFIOSO SITTING IN HIS OFFICE AS BEFORE
Let’s start with the farrago surrounding Salvatore R. DeFrancesco. This Mafioso is listed as Vice President of Penn Acceptance Corporation, 2007 Highway, Suite 315, Pittston TWP, PA 18640-40. The other officers of this corporation are Joseph Limongelli, President and Secretary, and Daniel Limongelli, Treasurer.

We were informed by an impeccable source, who appears to have been lied to by officials, that Treasury agents and the FBI were looking for Salvatore DeFrancesco and that he was expected to have been cuffed by the evening of 19th March 2010.

When we made repeated enquiries about this sequence over the weekend, the trail went blank. Nothing more was heard of the ‘search’ in question.

We therefore assume that this Mafioso, whose name as previously reported had illegally appeared as Secretary of Pennsylvania Investments, Inc., on the firm’s screen with the Department of State Corporation Bureau as of 8th March 2010, is sitting, as before, in his office in Suite 315, 2007 Highway, Pittston TWP, PA 18640-40..

MOLES INSIDE THE PENNSYLVANIA OFFICIAL STRUCTURES?
Which of course implies that the skullduggery, which appears to involve moles located inside the Commonwealth of Pennsylvania’s official structures, continues – a reality that Michael C. Cottrell, B.A., M.S., discovered for himself in the course of a frustrating conversation with the Pennsylvania Department of State on 23rd March 2010 between 8.43 a.m. and 9. 46 a.m., when he enquired why the necessary changes mandated by his Corporate Resolution delivered to and signed for by the Pennsylvania Department of State Corporation Bureau in Harrisburg, PA on 18th March, had not yet been acted upon. After all, it is clearly in Pennsylvania’s interest to collect $495 million.

MR COTTRELL’S LATEST STRUGGLES WITH DELIBERATELY
UNCOOPERATIVE AND ARROGANT PA OFFICIALS
The officials at the Department of State knew precisely who he was as soon as he called, and proceeded to front a barrage of excuses for their inaction to date, including: ‘We don’t do that’; and:’ You should be speaking to the Pennsylvania Department of Revenue, not to us’; plus words to the effect …‘We can send your filing fee ($70) back’.

After speaking later with the Department of Revenue (in the course of which stressful conversation he was of course cut off), and having been informed condescendingly that ‘he should know’ that changes in corporate officers and their designations needed to be forwarded on Pennsylvania Department of Revenue form REV-1605, Mr Cottrell managed to access form REV-1605 (which they don’t tell you how to access, of course), and thus proceeded to complete the form, which he then submitted [see below] and which reads as follows:

Pennsylvania Department of State
Bureau of Corporate Taxes
PO Box 280430
Harrisburg PA 17128-0430

REV-1605 CT (1-10) Schedule Co.
Names of Corporate Officers
Corporate Account ID: XXXXXX*
Corporate Officers:
President/Managing Partner SSN XXX-XX-XXXX* COTTRELL MICHAEL C.
Vice President SSN XXX-XX-XXXX* COTTRELL MICHAEL C.
Secretary SSN XXX-XX-XXXX* COTTRELL MICHAEL C.
Treasurer/Tax Manager SSN XXX-XX-XXXX* COTTRELL MICHAEL C.
Business Name: Pennsylvania Investments, Inc.
EIN: XXXXXXXXX*
Street Address: 1157 West 7th Street
City: Erie
State: PA
Zip Code: 16502
Preparer’s Signature: [Signed] Michael C. Cottrell
Title: President, Vice President, Secretary and Treasurer
Telephone Number: (814) 455 9218
Date: 03/13/2010

* Known to the Editor of this service.

SECRET DIVERSION INSTRUCTIONS MAY STILL BE ‘LIVE’
Why is this so critical? Because all that was achieved earlier was the removal of the name of the Mafioso from the Pennsylvania Department of State’s screen for Pennsylvania Investments, Inc. Removal (under pressure and with a very bad grace) by the Pennylvania authorities of this Mafioso impostor’s name from the official screen did not necessarily mean that an instruction signed by the Mafioso imposter (working with the Bush Sr. criminal nexus that has corrupted the CIA from within), for the funds to be diverted on remittance to Pennsylvania Investments, Inc., does not exist.

In view of the fact that the officials knew exactly who Michael Cottrell was the moment he called them at 8:43 a.m. on 23rd March 2010, and in view of their further excuse-making, bureaucratic stonewalling, intransigence and singular lack of the helpful cooperation for which these officials are paid (as they are there to serve the community, not a corrupt State agenda in cahoots with a corrupt Federal Government), our working assumption is precisely that:

• There is an extant fall-back instruction signed by the impostor Mafioso fake ‘Secretary’ for the Paymaster to divert the funds as directed in such an instruction.

• The Pennsylvania Department of State and Department of Revenue authorities may indeed have been collaborating with the Mafioso working for and/or with Bush Sr. to procure the stealing of the money payable as mandated, to Michael C. Cottrell, B.A, M.S.

• In which case officials within the aforementioned Pennsylvania structures may be party to an attempted scam to SWINDLE Pennsylvania taxpayers out of the prospective and mandated windfall tax payment by Pennsylvania Investments, Inc. of windfall corporate and personal taxes amounting to an estimated $495 million.

MS. BUTLER COULDN’T BE BOTHERED TO SEND MR COTTRELL’S PAPERS TO SALLY KROW
Mr Cottrell also established that Ms. Butler, Supervisor, Pennsylvania Department of State, 401 North Street, Room 206, P.O. Box 8722, Harrisburg, PA 17105-8721, who was ‘not in the office’ on 10th March [see report dated 19th March 2010] has THE SAME FAX NUMBER as the Pennsylvania Department of State Corporation Bureau, Harrisburg, PA 17105-8722 – namely: 714-783 2244. Which of course means that the Corporation Bureau is located in the same office as Ms. Butler.

Ms Butler evidently did not, therefore, forward the Pennsylvania Investments, Inc., Corporate Resolution, to Sally Krow, at the Corporation Bureau – who is the official now identified at the Corporation Bureau in the course of Mr Cottrell’s stressful conversations with these unhelpful officials on 23rd March 2010.

These officials do not yet appear to understand that the layers of corruption that we have destabilised in the course of these necessary investigations and reports make it ultimately UNLIKELY that such ‘coincidences’ will be missed – just Julie A. Castillo’s ‘explanation’ for the placement of this Salvatore R. DeFrancesco as false ‘Secretary’ of Pennsylvania Investments referencing confused Social Security digits dating back many years, didn’t ‘fly’ with us, either.

Clearly, these people are so used to fabricating excuses that they’ve become laid-back with their ‘explanations’.

NEW DOCUMENTS SUBMITTED TO THE PA AUTHORITIES
At 1:45pm EDT on 23rd March 2010, the Editor, at our request, received the following documents from Michael C. Cottrell, B.A., M.S., in connection with the immediate requirement for the proper designations of Mr Cottrell to be displayed on the Pennsylvania Department of State’s screen for Pennsylvania Investments, Inc.:

PENNSYLVAINA INVESTMENTS, INC
1147 West 7th Street
Erie, PA 16502
Corporate telephone: (814) 455-9218
Fax: (814) 453-4453
E-Mail: pii-mcc@msn.com

FAX COVER:

TO: Pennsylvania Department of State
Corporation Bureau
Harrisburg, PA 17105-8722

ATTENTION: SALLY KROW

RE: REV-1605 FORM

VIA: FAX: (717) 783-2244

ITEMS ENCLOSED:

(1): FORM REV-1605 – Completed, Signed and Dated

(2): Letter of Notification regarding:
Fraudulent Entry on: www.corporations.state.pa.u/corp by person(s) unknown against Pennsylvania Investments, Inc. (3/8/2010), 3 PAGES.

Exhibit “A”-1; Exhibit “B”-1 thru 4; Exhibit “D”-1 & 2.1;

Note: The Letter of Notification (published with our report dated 19th March 2010) is appended as an Appendix below, but all other documents referenced with the Letter of Notification should be accessed by going to that report [press: Archive].

(3): COPIES 1 & 2 OF ARTICLES OF AMENDMENT – DOMESTIC CORPORATION (15 Pa C.S.) PER DEPARTMENT OF STATE INSTRUCTIONS.

Exhibit A: Certificate of Adoption of Corporate Resolution dated 3/13/2010

Copy of Personal; Check for $70.00 USD [copy held by the Editor of this service of Michael C. Cottrell’s personal check Number 1042 for $70.00 dated 13th March 2010 for and on behalf of Pennsylvania Investments, Inc].

Note: Attached to Pennsylvania Department of Revenue Form REV-1605: Schedule Co – Names of Corporate Officers, are the following instructions:

State law mandates that the names of corporate officers be available as public information with the PA Department of State. Corporations comply with the requirement by completing the Corporate Officer section of the PA Corporate Tax Report (ACT-101). Corporations that need to update this information during the year must complete the Corporate Officer Schedule (REV-1605) and submit it to the PA Department of Revenue, which forwards this information to the PA Department of State

• Editor’s insert: The Form REV-1605, attached to these instructions, was duly completed by Mr Cottrell on 23rd March 2010 in precise conformity with these official requirements, and forwarded by fax under cover of the FAX COVER sheet indicated above. The documents were forwarded on that date in the first instance by fax to the PA Department of Revenue, PO Box 280430, Harrisburg, PA 17128-0430; and secondly to Sally Krow and the Pennsylvania Department of State, Corporation Bureau, Harrisburg, PA 17105-8722.

Note the above language that:

‘State law mandates that the names of corporate officers be available as public information with the PA Department of State’.

WHAT THE PENNSYLVANIA INVESTMENTS, INC. CORPORATE SCREEN
WITH THE PA DEPARTMENT OF STATE SHOULD LOOK LIKE NOW
The identity of the Corporate Officers of Pennsylvania Investments, Inc., has been furnished as required to the Pennsylvania Department of Revenue for forwarding to the PA Department of State, which has moreover been notified by Mr Michael C. Cottrell, B.A., M.S. of this fact, in accordance with these MANDATORY requirements, so that the PA Department of State can IMMEDIATELY update the screen for Pennsylvania Investments, Inc., which should now read as follows:

Pennsylvania Department of State
Corporations

Business Entity Filing

Business Name History
Name:
Pennsylvania Investments, Inc.

Name Type: Current Name

Business Corporation – Domestic – Information
Entity Number: 844244
Status: Active
Entity Creation Date: 12/11/1984
State of Business: PA
Registered Office Address: 1157 West Seventh Street, Erie PA 16502-0
Mailing Address: 1157 West Seventh Street, Erie PA 16502-0

Officers:

Name: MICHAEL C. COTTRELL
Title: President
Address: 1157 West Seventh Street, Erie PA 16502-25

Name: MICHAEL C. COTTRELL
Title: Vice President
Address: 1157 West Seventh Street, Erie PA 16502-25

Name: MICHAEL C. COTTRELL
Title: Secretary
Address: 1157 West Seventh Street, Erie PA 16502-25

Name: MICHAEL C. COTTRELL
Title: Treasurer/Tax Manager
Address: 1157 West Seventh Street, Erie PA 16502-25

• Memorandum item: A posting by a notorious anonymous Internet source named after CIA-MK-ULTRA operative Richard B. Cheney’s home town in Wyoming, who has purported for years to be fighting for the Ponzi victims’ ‘packages’ but has been deceiving the Ponzi victims all along (as we have indicated on several occasions), in an ongoing cruel, Pavlovian campaign to manipulate their expectations micro-managed by the evil forces within the Intelligence Power, is currently telling the truth: the intention is to steal the lot, as has always been the case: and that includes the Queen’s funds. We have bad news for this snake or nest of vipers.

APPENDIX:
MICHAEL C. COTTRELL’S LETTER OF NOTIFICATION OF 9TH MARCH 2010 TO THE PENNSYLVANIA DEPARTMENT OF STATE DEMANDING THE IMMEDIATE REMOVAL OF THE NAME OF THE MAFIA IMPOSTOR SALVATORE DE FRANCESCO FROM THE PENNSYLVANIA INVESTMENTS, INC. STATE CORPORATION BUREAU’S OFFICIAL SCREEN, FRAUDULENTLY SHOWING THE IMPOSTOR MAFIOSO AS ‘SECRETARY’ OF THE CORPORATION:

(1): FAX COVER
PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8721

Attention: Ms. Butler, Supervisor

Via: Fax: 717-783 2244

ITEMS ENCLOSED:
(1): Letter of Notification regarding: Fraudulent Entry on www.corporatyions.state.pa.u./corp by person(s) unknown against Pennsylvania Investments, Inc. [3/8.2010]: 3 Pages
(2): Exhibit “A”: 12 Pages
(3): Exhibit “B”: 5 Pages
(4): Exhibit “C”: 3 Pages
(5): Exhibit “D”: 15 Pages.

Number of pages including cover: 39
9 March 2010
……………………………………………………………………………….

(2): LETTER OF NOTIFICATION TO
PENNSYLVANIA DEPARTMENT OF STATE:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8721

Attention: Ms. Butler, Supervisor

Reference:
Due Diligence Accounts Payable [Nov 19th, 2004 to March 25th, 2008]

RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010)

Via: Fax: 717-783 2244/ AND U.S. MAIL

Dear Ms. Butler:
Per our conversation this date, between approximately 9:34 a.m. EST and 9:40 a.m. EST, I stated to you that Pennsylvania Investments, Inc. is to receive funds in the amount of Fifteen Billion United States Dollars ($15,000,000,000.00 USD):

[Ref: Exhibit “B, Page 1” Payables Due with the Due Diligence Documentation Part 1 and Part 2, dated November 19, 2004 to March 23, 2008]

derived from a “Settlement” between the United States of America, the World Court, the People’s Republic of China, with the signed approval of President Barack Obama, and a loan of Six Point Two Trillion United States Dollars ($6,200,000,000,000.00 USD) to Pennsylvania Investments, Inc., via Her Majesty, the Queen of England (Sovereign of the United Kingdom of Great Britain and Northern Ireland) for the purpose of a Private Funding Refunding of the United States Dollar (Ref: Exhibit “B” Pages 2-4, an Affidavit submitted to Her Majesty, et al. on 29 December 2008).

Additionally, I stated to you that Pennsylvania Investments, Inc. (including Michael C. Cottrell) will pay an amount of Pennsylvania Corporate and Personal taxes of approximately Four Hundred and Ninety-Five Million United States Dollars ($495,000,000.00 USD) from this “Settlement” process.

Page 2: RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010):

However, the Pennsylvania Department of State has now become [a] knowing or unknowing participant in the ongoing fraudulent activities [being] attempted to divert said funds and the payment of Pennsylvania Corporate Taxes and/or to steal and place said funds in “off-balance sheet account(s)” with the aid of bank and political fraudsters – located in London (UK), Paris (France), Geneva (Switzerland), Houston and Dallas (Texas), Washington, D.C., and various locations in the Commonwealth of Pennsylvania

The above referenced fraudulent activity is evidenced by the placement of “SALVATORE R. DEFRANCESCO as SECRETARY” as Officer of Pennsylvania Investments, Inc. screen dated March 8, 2010 WITHOUT a correspondent Amendment of Articles – WITHOUT THE KNOWLEDGE OR APPROVAL OF THE DIRECTORS/OWNERS OF PENNSYLVANIA INVESTMENTS, INC.

Therefore, this corporation hereby demands that the name “SALVATORE R. DEFRANCESCO as SECRETARY” BE REMOVED IMMEDIATELY FROM THE SCREEN PAGE IDENTIFYING ENTITY 844244: PENNSYLVANIA INVESTMENTS, INC., 1157 WEST 7TH STREET, ERIE PA 16502-0.

Further, this corporation demands an investigation and a FULL REPORT TO THE BOARD OF DIRECTORS – as to who gave the authority for this name to be placed on said screen, what evidence [exists] of authorization granting said person the position of SECRETARY for this corporation, and what action will be taken against said person committing the fraudulent entry.

If the offending item is not removed immediately upon the facsimile receipt of this letter and documentation, this corporation will move legally for fraud against the Secretary of the Commonwealth, the Honorable Pedro A Cortes, et al., and against SALVATORE R. DEFRANCESCO (INDIVIDUALLY AND SEVERALLY) for Fraud against Pennsylvania Investments, Inc., for THREE (3) TIMES DAMAGES, e.g., FORTY-FIVE BILLION UNITED STATES DOLLARS ($45,000,000,000.00 USD) – since the payment is IMMINENT and therefore the screen identified can be used to divert or steal the aforementioned funds, e.g. [for account of] FIDELITY DEPOSIT & DISCOUNT BANK, et al., and/or PENN ACCEPTANCE CORPORATION, et al..

This firm has NO ACCOUNTS with either. The stated funds are to be deposited with this firm’s identified Securities Account at Morgan Stanley & Co, New York, NY.

Page 3: RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010):

Thank you for your immediate attention and assistance in this matter.

Regards,

Michael C. Cottrell, B.A., M.S.
President, CEO and Secretary
Pennsylvania Investments, Inc.
1157 West 7th Street
Erie, PA 16502-1106

Reference:
Exhibit “A”: Pages 1 thru 11;
Exhibit “B”: Pages 1 thru 4;
Exhibit “C”: Pages 1 and 2;
Exhibit “D”: Pages 1 thru 13.

CC:
(1): The Honorable Edward G. Rendell, Governor of Pennsylvania
(2): The Honorable Pedro A Cortes, Secretary of the Commonwealth
(3): The Honorable Tom Corbett, Pennsylvania Attorney General
(4): Robert S. Cessar, United States Attorney, Pittsburgh, PA
(5): A. Clifton Hodges, Esq., Hodges and Associates, 4 East Holly Street,
Suite 202, Pasadena, CA 91103
(6): Mr William Bonney, Sr., BOLDCAP
(7): Mr Dana V. Wilcox

Notes and References:

(1): In the report dated 22nd March 2010 [Archive] we summarised the money pipeline potential and intention of the Health Care bill as follows:

Compulsory insurance will simply deliver more premium capital to Wall Street.

This is because insurance companies invest on Wall Street the money premiums that they do not yet have to pay out; while government political rationing will mean that less and less is paid out: so that more and more of the premiums will remain in the hands of the criminal financial enterprises.

• Editor’s insert: This, friends, is how the financial enterprises will stay afloat and prosper, given that the US Dollar Refunding Programme is indeed to be handled in the private sector, as we have all along recommended, not by the Government.

(2): Economic Intelligence Review, World Reports Limited, London and New York, Volume 12, Numbers 7 & 8, page 55: chart entitled: ‘US Federal Debt deconstructed: USD millions’. Note that we can only develop assessments on the basis of the data published by the Office of Management and Budget. It is well known that the OMB’s data are unreliable, but the OMB is the official source and we can only base assessments on the data published by the US Government itself.

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

Therefore, you should be advised that the GENUINE ORIGINAL REPORT is, by obvious definition, accessible ONLY FROM THIS WEBSITE. If you come across an article elsewhere that is attributed to the Editor of this service, you should refer to the ORIGINAL ARTICLE HERE and you should bear in mind that the illegally duplicated article may contain text that was NOT written by the Editor of this service, but which was inserted for malicious purposes by counterintelligence.

Likewise, although we haven’t yet had time to elaborate this issue, we have taken drastic steps around the world to close off the malicious piracy of our books. One technique used by several disreputable sites (in the United States, the Netherlands and Switzerland) is to copy our title(s) and (a) to display an image of the front cover WITHOUT THE ISBN DATA at the top of the cover; and (b) to DELETE THE COPYRIGHT PAGE. In so doing, the criminal pirates proclaimed that they knew perfectly well that they were/are engaged in theft and can be prosecuted for stealing copyright.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

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• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

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THE ABORTED PENNSYLVANIA FRAUD OF 8 MARCH 2010

cropped-chrisstory

BOTCHED OPERATION BY THE OBAMA WHITE HOUSE TO RE-STEAL THE SOVEREIGN

Friday 19 March 2010 08:00

• SALVATORE R DEFRANCESCO ‘SOUGHT BY DOJ, TREASURY’

• PENNSYLVANIA STATE CORPORATION BUREAU FAILS TO UPDATE
CORPORATE SCREEN AS SPECIFICALLY INSTRUCTED BY THE COMPANY’S BOARD

PENNSYLVANIA FRAUD UPDATE: NEW YORK: 19TH MARCH 2010: 3:00PM EDT

There have been two developments (that we are at liberty at this time to report) in connection with this colossal scandal orchestrated as described in our original report of 15th March 2010 below:

(A): PENNSYLVANIA DEPARTMENT OF STATE HAS RECEIVED THE CORPORATE RESOLUTION OF PENNSLYVANIA INVESTMENTS, INC. [SEE BELOW] BUT HAS NOT AMENDED THEIR SCREEN AS INSTRUCTED BY THE DIRECTORS, WHICH SHOULD HAVE BEEN DONE BY NOW:

• The Corporate Resolution of the Board of Pennsylvania Investments, Inc. identified in the Foreword immediately below, requires Michael C. Cottrell B.A., M.S., to be described publicly as:

PRESIDENT
CEO
SECRETARY and:
TREASURER

• The United States Postal Service Track & Confirm service reports that:

(1): The package containing the Corporate Resolution and the necessary Filing Fee addressed to Pennsylvania Department of State Corporation Bureau, P.O. Box 8722, Harrisburg, PA 17105-8722, was accepted at 10:44 am on 16th March 2010 at ERIE, PA Station No. 12 [USPS 16505] against total Postage and Fees of $10.70. We hold a copy of the relevant US Postal Service Certified Mail Receipt [and of all relevant such receipts].

(2): The package was processed through the Sort Facility on 17th March 2010 at 4:19pm in Harrisburg, PA 17107.

(3): The package containing the Corporate Resolution and Filing Fee was delivered to Pennsylvania Department of State Corporation Bureau, P.O. Box 8722, Harrisburg, PA 17105-8722 on 18th March 2010 at 1:11am. by the US Postal Service.

• FACT: As of the time of this Update the Pennsylvania Department of State Corporation Bureau had not updated the screen for Pennsylvania Investments Inc. to show Michael C. Cottrell B.A., M.S., registered as:

PRESIDENT
CEO
SECRETARY and:
TREASURER

… of Pennsylvania Investments, Inc., as required by the Corporate Resolution.

(B) THE COPY OF THE CORPORATE RESOLUTION AND OTHER DOCUMENTS SENT AT THE SAME TIME FROM ERIE TO MR A. CLIFTON HODGES, ATTORNEY FOR THE CMKM/CMKX VICTIMS, HAD NOT BEEN DELIVERED AS AT THIS POSTING. Specifically:

(1): The relevant package was accepted at ERIE Postal Station
No. 12 (USPS 16505) at 10:42 am on 16th March 2010.

(2): The package arrived at the Post Office, Pasadena, CA, at 8:35 am on 19th March 2010.

(3): We await confirmation that it has been delivered to Mr Hodges. UPDATE: At 4:45pm on 19th March, the Editor was advised that Mr Hodges’ package had arrived. The Editor was out of the office from 3:30pm until 10:00pm on Friday, so this Update was not appended until midnight.

( C): A THIRD PACKAGE CONTAINING THE SAME MATERIALS [FOR A PARTY
WE CANNOT REVEAL AT THIS TIME] HAS BEEN ‘MISSENT’, WHATEVER THAT MEANS.

Specifically:

(1): The relevant package was accepted at ERIE Postal Station No. 12
(USPS 16505) at 10:43 am on 16th March 2010.

(2): The package containing the Corporate Resolution arrived at the designated US Post Office at 8:54am on 19th March 2010.

(3): The next entry states: MISSENT, March 19, 2010, 8:55 am.

We await urgent confirmation that the package addressed to this
important third party has NOT been intercepted, and has been delivered.

(B): SALVATORE R. DEFRANCESCO REPORTEDLY BEING SOUGHT
BY THE DEPARTMENT OF JUSTICE AND TREASURY AGENTS:

• FACTS:

(1): On arrival in New York late in the evening of 16th March 2010, the Editor received an email
from a knowledgeable source indicating that Salvatore R. DeFrancesco ‘had been’ arrested in the preceding 24/48 hours.

(2): At 14:56pm on 17th March 2010, the Editor received an email from, another informed source who stated that in response to the Editor’s inquiry on this score, ‘so far, I can neither confirm nor deny the recent arrest of Salvatore R. DeFrancesco’, but that he was making further enquiries.

(3): At 10:55am on Thursday 18th March 2010, the Editor received the following email from Mr A. Clifton Hodges, lawyer for the CMKM/CMKX victims of the colossal SEC Phantom Shares scam:

‘I received [the following] information this morning: [quote]: “He is actively being sought by the DOJ and by Treasury agents; he is expected to be in custody by the end of the day”.

Mr Hodges elaborated: ‘I have been promised further information when he is in fact in custody; I will of course pass it on upon receipt’.

(4): At about 1.00pm on Friday 19th March, the Editor made further enquiries as to the status of the REPORTED search for the Mafioso impostor whose name had been illegally inserted as Secretary of Pennsylvania Investments, Inc. with the full prior knowledge and manifest cooperation of the Pennsylvania Department of State Corporations Bureau and the Pennsylvania Department of Revenue [see original report below], as a result of which we learned as follows:

• The information that Salvatore R. DeFrancesco is being sought by the DOJ and by Treasury agents is reconfirmed [by a ‘special’ source].

• As of the time of this posting SALVATORE R. DEFRANCESCO HAD NOT BEEN ARRESTED AND WAS THEREFORE NOT IN CUSTODY.

THEREFORE THE WHOLE MATTER REMAINS UP IN THE AIR ‘AS WE SPEAK’.

OUR WORKING ASSUMPTION IS OF MORE SKULDUGGERY
Given all of the above, our interim conclusion is that we are dealing with MORE DECEPTION and that various layers of hastily contrived cover-up operations have been activated to facilitate or cover up the intended giga-theft.

So far as we are concerned, indications that this Mafioso is being sought by the DOJ and Treasury agents must be accompanied by the necessary caution that NOTHING THAT U.S. FEDERAL OR STATE AUTHORITIES ASSERT AS FACT CAN BE TRUSTED.

LIES ARE STANDARD OPERATIONAL U.S. FEDERAL AND STATE GOVERNMENT PRACTICE.

We await further developments.

• NEW SCURRILOUS ATTACK ON THE EDITOR OF THIS SERVICE: FOOT OF THIS REPORT

• FORENSIC DECONSTRUCTION OF A BOLD, BRAZEN WHITE HOUSE CRIME CAUGHT IN TIME

• SECURITIZATION IS ILLEGAL UPDATE: In the Subs/Books Update panel immediately below the NEWS panel that you are currently viewing, you will see an announcement concerning publication of Economic Intelligence Review, Volume 12, Numbers 7 & 8. If you press that announcement text and open up the panel, you will see the contents list for the new [2010Q1] issue of E.I.R., including a breakdown of the Chapter Headings for the detailed analysis showing that Securitization is illegal. See our NEWS report dated 10th March 2010 for summaries of some of the data from this analysis. We understand that the report has created uproar in certain corridors of corrupt power.

FOREWORD:

ARTICLES OF AMENDMENT RE: PENNSYLVANIA INVESTMENTS, INC.
Submitted with the $70 necessary filing fee to Pennsylvania Department of State, Corporation Bureau by Pennsylvania Investments, Inc., 1157 West 7th Street, Erie, PA 16502, on 15th March 2010. Pennsylvania Investments, Inc. was incorporated on 11th December 1984 under the following Pennsylvania Statute: 19 PA CODE CH. 35 (1933) P.L. 354, as amended. The Articles of Amendment stated that: ‘The amendment shall be effective on March 13th [2010] at 12:01 pm.’

The amendment was adopted by the Board of Directors pursuant to 15 Pa. C.S. Section 1914(c) or Section 5914(b). ‘The amendment adopted by the Corporation is set forth in Exhibit A attached hereto and made a part hereof’. ‘In testimony whereof, the undersigned corporation has caused these Articles of Amendment to be signed by a duly authorized officer thereof this 13th day of March 2010: PENNSYLVANIA INVESTMENTS, INC.

[Signed] Michael C. Cottrell: Title: PRESIDENT, CEO, SECRETARY AND TREASURER: 3/13/2010

Exhibit A forming an integral part of these Articles of Amendment:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814-453 4453
Email: pii-mcc@msn.com; pii3mcc@gmail.com

EXHIBIT “A”: 13 March 2010

CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION

I hereby certify that at a meeting of the Board of Directors of Pennsylvania Investments, Inc., a corporation organized and existing under and by virtue of the laws of the state of Pennsylvania, held on the 13th day of MARCH, 2010 at which said meeting a quorum was present and acting throughout, the following resolutions were adopted and ever since have been and now are in full force and effect:

RESOLVED, that due to the attempted fraudulent devices indicated by the PENNSYLVANIA DEPT. OF STATE (www.corporations.state.pa.us/corp) of 8 MARCH 2010, et al., THIS CORPORATION HEREBY DECLARES any and all corporate resolutions pertaining to bank accounts excluding PNC ACCOUNT, ROBIN DRIVE, ERIE, PA, and all other Securities Accounts, excluding MORGAN STANLEY SECURITIES ACCOUNT (16 November 2005), as NULL AND VOID;

RESOLVED, that since this corporation has never granted a non-owner of shares of this corporation any directorship or office, it hereby grants Michael C. Cottrell, B.A., M.S., the retention of full authorities and powers as President, Vice President, Treasurer and Secretary, and is thereby granted full authorization and control of this corporation as per this duly authorized resolution;

IN WITNESS WHEREOF, I have hereunto set my signature
for said corporation this 13th day of March, 2010.

[Signed]:
Michael C. Cottrell, B.A, M.S.
President, CEO, Treasurer, & Secretary
Date: 3/13/2010

[Signed]:
Diane R. Cottrell, B.A., M.A.
(A.K.A. Diane R. Bertolini, B.A., M.A.)
Shareholder
Date: 3/13/2010

• Note: The Editor of this service holds copies
of these Articles of Amendment and of Exhibit “A” in our files.

• MAY WE INTRODUCE YOU TO SALVATORE R. DEFRANCESCO?

• ENTITIES THAT BALLOONED VIA ILLEGAL SECURITISATION

• DERIVATIVES EXPLOSION FOLLOWED PAULSON’S HIJACKING OF THE $4.5 TRILLION

• THE COLLECTIVE OF CRIMINAL AMERICAN PRESIDENTS

• MR COTTRELL CHECKS HIS CORPORATION’S STATE SCREEN

• OBJECTIVE: TO STEAL THE IMMINENT PAYOUTS
VIA THE ‘ITALIAN’ IMPOSTOR AS ‘SECRETARY’

• MONUMENTAL BLUNDER BY THE WHITE HOUSE CROOKS AND THEIR ASSOCIATES

• THE IMMEDIATE PREDECESSOR DECEPTION THAT WE ALSO ABORTED

• INDICATIONS OF RECKLESS, RUSHED IMPLEMENTATION

• ROUTINE EMBEDDING OF A STATE BUREAUCRACY
WHEN STRUCTURING SUCH A PLANNED GIGA-CRIME

• COMPARISON WITH THE STEALING OF TAX REVENUES IN WISCONSIN

• WHAT HAPPENED AFTER THE ‘ITALIAN SECRETARY’ WAS DISCOVERED

• CHINESE CONFIRM THAT ‘BUSH SENIOR’ IS STILL INTERFERING

• SUDDEN PHONE CALL FROM THE PA DEPARTMENT OF REVENUE

• COTTRELL DEMANDS FAXED COPIES OF PA’S TAX RECORDS

• MAFIOSO REMOVED FROM COTTRELL’S CORPORATE SCREEN

• FORENSIC ANALYSIS OF THE DOCUMENTS MAILED BY MS. CASTILLO

• STARTLING FINDINGS FROM OUR FORENSIC EXAMINATION
OF PA CORPORATE SCREEN DOCUMENTS

• INTENTION TO USE COTTRELL’S INVESTMENT CORPORATION
TO STEAL THE $6.2 TRILLION TRACEABLE BACK TO THE FALL OF 2007

• THEREFORE, AMERITRUST GROUPE, INC. WAS A TYPICAL C.I.A.
‘BLIND’ DECEPTION [SET UP VIA LEVITTE: FRANCE/DVD]

• INCOHERENT ‘EXPLANATION’ BY THE PA DEPARTMENT OF REVENUE

• PREPARATIONS FOR THEFT PUT IN PLACE SEVEN YEARS AGO:
ASSUMPTION THAT THE PAYMASTER WOULD COOPERATE

• WE HAVE NO DOUBT THAT GEORGE BUSH SENIOR, GORBACHEV, KOHL
AND ACKERMANN WERE EXPECTING TO SPLIT THE QUEEN’S $6.2 TRILLION
BETWEEN THEM, VIA DEUTSCHE A.G.. THAT WAS THE INTENTION.

• SUMMARY OF THE PENNSYLVANIA FRAUD

• DOCUMENTS RELATING TO THE PENNSYLVANIA FRAUD

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• ADVERTISEMENT: Details of the INTERNET SECURITY SOLUTION software offered by this service in conjunction with a donation can be accessed immediately: See the Home Page World Reports Limited serials catalogue by clicking World Reports Limited and scrolling to foot of page. Scroll to the foot of THIS page to read our extended Ad. for the INTERNET SECURITY SOLUTION.

Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

NEW REPORT STARTS HERE:

MAY WE INTRODUCE YOU TO SALVATORE R. DEFRANCESCO?
Have you met or heard of Salvatore R DeFrancesco?

Salvatore DeFrancesco Senior, that is.

No? Then may we please have the pleasure of introducing him to you.

It has been reported to us that Salvatore R DeFrancesco Sr. is an associate of, or has current or past relations with, George H. W. Bush, and is well known in certain, shall we say, ‘exotic’ banking and other financial circles, and among ‘the Italian community’ in the United States, doubtless including Chicago. He has influence with a number of important financial institutions.

He is aged about 60, and has a son, Salvatore Raymond DeFrancesco Jr, CPA, aged 40. Prior to January 2003, Salvatore R. DeFranceso Jr. was Chief Financial Officer of Landmark Community Bank in Pittston, Pennsylvania.

In November 2009, Salvatore R DeFrancesco Jr. was reported to be Chief Financial Officer and Treasurer of Fidelity D & D Bancorp., Inc., positions he has held since January 2003 – as well as serving as Executive Vice President and Chief Financial Officer of Fidelity Deposit & Discount Bank, both of Dunmore, Pennsylvania.

ENTITIES THAT BALLOONED VIA ILLEGAL SECURITISATION
Salvatore DeFranceso Senior is Vice President of Penn Acceptance Corporation, and is a partner/owner with Daniel and Joseph Limongelli of Penn Acceptance Corporation, Avoca, PA.

Joseph Limongelli is President and Secretary, and Daniel Limongelli is Treasurer of Penn Acceptance Corporation, with their mailing address at 639 Main Street, Avoca, PA 18641-0.

However the Officers of Penn Acceptance Corporation function, according to the Pennsylvania Department of State, from 2007 Highway Suite 315, Pittston TWP, PA 18640-40.

Both Fidelity D & D Bancorp., Inc/ Fidelity Deposit & Discount Bank. Inc., and Penn Acceptance Corporation ballooned in size from 2006 onwards through trading Collateralized Debt Obligations (CDOs) – which, as exposed in our report dated 10th March 2010, are illegal under US and Common Law. All such contracts, being formulated to facilitate criminal actions, are void and fraudulent [see full report dated 10th March 2010 for details].

Yet in the year ended 31st December 2006, Fidelity D & D Bancorp Inc. was a small operation, the audit fee billed by auditors Parente Randolph, LLC having cost $86,203 [2005: $41,259].

Now, as you will recall from our early reports in this series, 2006 was the year when The People’s Bank of China transferred $4.5 trillion to the United States. The transfer was immediately hijacked by Henry M. Paulson Jr. as soon as he became President Bush’s third Treasury Secretary – a man sufficiently corrupt to meet Bush’s daily criminal requirements, which Mr Paulson’s two far-from-innocent predecessors had been, shall we say, less eager to satisfy.

So, instead of being applied for the purpose indicated by the Chinese central bank, the funds were diverted to underpin securitisation operations involving massive leveraging and hypothecation for corrupt and wholly illegal transactions purposes.

DERIVATIVES EXPLOSION FOLLOWED PAULSON’S HIJACKING OF THE $4.5 TRILLION
It was therefore ‘no accident’ that the derivatives explosion took off from 2006 onwards, leading straight to the brick wall encountered in September 2008; and among entities heavily involved in these CDO excesses were Fidelity D & D Bancorp, Inc./Fidelity Deposit & Discount Bank and Penn Acceptance Corporation, which expanded on a scale which could not possibly have occurred had they been involved exclusively in legitimate business.

On 11th December 1984, Michael C. Cottrell, B.A., M.S., founded and registered Pennsylvania Investments, Inc. with the Commonwealth of Pennsylvania Department of State Corporations authorities. The firm is registered as Business Corporation Entity #844244 in the Commonwealth of Pennsylvania, and its Principal Office Address is shown as 1157 West Seventh Street, Erie, PA 16502. The sole Officer of the Company has been Michael C. Cottrell, President and Secretary.

For the record, the Editor of this service holds paper copies of printouts confirming the foregoing outline information concerning Pennsylvania Investments, Inc., from the Pennsylvania Department of State Corporations authorities’ Microfilm Number 8475 [Start: 905; End: 907] dated: 6th April 2005; 1st October 2006; 27th March 2008; 15th May 2008; 22nd December 2008; and 9th May 2009.

THE COLLECTIVE OF CRIMINAL AMERICAN PRESIDENTS
You will recall that we have reported that the Collective of Five Criminal Presidents of the United States – Carter (39), Bush Sr. (41), Clinton (42), Bush Jr. (43) and Obama (44) – DEMANDED immunity from prosecution from the World Court around last September, and were granted such immunity in a scandalous departure by the World Court, given that in seeking immunity these Presidents were self-acknowledging their need for immunity from prosecution and therefore openly confirming that they themselves recognise that they are criminal operatives.

[A statement by an anonymous, and therefore non-credible, Internet source on 11th March, citing unprovenanced and unprovable so-called intelligence sources that this is not true, is false].

You may also have noted that we doubt whether the World Court’s outrageous grant of immunity – conveying the impression that the World Court considers that its responsibility may be to protect high-level criminals from prosecution – protects the Collective of Presidents in the United States itself: it is applicable to the financial crimes that have been committed in Britain and Europe.

These reminders are inserted here in order to re-emphasise that President Obama and the other four Presidents ‘work together’ as a criminal Collective: so the sudden appearance of President Obama in Pennsylvania on or before 8th March 2010, related to THIS enquiry, will most certainly have reflected an operation known to or masterminded by George H.W. Bush Senior and President Obama’s Italian and other Chicago Mafiosi associates, with the full knowledge and connivance of senior CIA operative Mrs Hillary Clinton and her CIA husband, former President Bill Rockefeller.

MR COTTRELL CHECKS HIS CORPORATION’S STATE SCREEN
Now, if you’d like to pour yourself a stiff glass of whisky, we’ll divulge the purpose of this report.

On 8th March 2010, the Editor’s birthday as it happened, Mr Michael C. Cottrell performed a routine check of the Business Entity Filing for Pennsylvania Investments, Inc.

He discovered that ALL OF A SUDDEN, the following additional entry had appeared on the filing for Pennsylvania Investments, Inc. (of which of course the Editor holds multiple copies, pulled both in Pennsylvania and in the United Kingdom):

Officers:
Name: MICHAEL C. COTTRELL
Title: President
Address: 1157 W 7th Street, ERIE PA 16502-25

Name: SALVATORE R DEFRANCESCO
Title: Secretary
Address: [Address not available].

• SELF-EVIDENT FACT:
At no time since the commencement of the solar system did Michael C. Cottrell, B.A., M.S., at a Meeting of the Board of his corporation, appoint SALVATORE R DEFRANCESCO or anyone else to serve as Secretary of Pennsylvania Investments, Inc. No such filing was ever submitted to the Commonwealth of Pennsylvania Department of State Corporations Registration authorities.

OBJECTIVE: TO STEAL THE IMMINENT PAYOUTS
VIA THE ‘ITALIAN’ IMPOSTOR AS ‘SECRETARY’
Michael Cottrell reacted, as did the Editor of this service, Mr A. Clifton Hodges, Attorney for the CMKM/CMKX victims of the colossal Securities and Exchange Commission PHANTOM SHARES fraud, and others informed of this intrusion, with justified fury and outrage.

MR COTTRELL PHONES THE PA DEPARTMENT OF STATE
Michael Cottrell began by telephoning a Ms. Butler, Supervisor, Pennsylvania Department of State between approximately 9:34 a.m. EST and 9:40 a.m. EST, informing her inter alia as follows:

• Pennsylvania Investments, Inc. is to receive funds amounting to $15 billion derived from a ‘Settlement’ between the United States of America, the World Court, the People’s Republic of China, with the signed approval of President Barack Obama; and:

• A loan worth $6.2 trillion from the British Monarchical Power for the purpose of funding a Private Refunding of the United States Dollar.

• Pennsylvania Investments Inc., and Michael C. Cottrell himself, will pay a sum in connection with Pennsylvania Corporate and Personal Taxes of $495 million arising from this ‘Settlement’ process.

• The Pennsylvania Department of State has become a participant, whether knowing or unknowing, in the perpetration of ongoing fraudulent attempts to DIVERT the foregoing funds and to subvert the payment of the foregoing PA State taxes, with the assistance of banking sector and political fraudsters located in London, Paris, Geneva, Houston, Dallas and Washington DC, and in various locations in the Commonwealth of Pennsylvania.

• This fraudulent attempt to divert the funds due to Pennsylvania Investments, Inc. is evidenced by the placement of ‘SALVATORE R. DEFRANCESCO as SECRETARY’ AS AN OFFICER (SECRETARY) OF Pennsylvania Investments, Inc. #844244 per the Pennsylvania Department of State corporations authorities’ screen dated 8th and 9th March 2010, without the knowledge or approval of the owners and Board of Pennsylvania Investments, Inc. and without the necessary Amendment of Articles.

• Michael Cottrell DEMANDED the IMMEDIATE removal of the name ‘Salvatore R. Defrancesco’ as Secretary from the screen identifying entry for Pennsylvania Investments, Inc. corporation #844244.

• Mr Cottrell also DEMANDED an investigation and a FULL REPORT TO THE BOARD of Pennsylvania Investments, Inc. corporation #844244 divulging WHO gave the authority for this intrusive name to be placed on the screen, what evidence existed of any authorization granting this individual the position of SECRETARY of Pennsylvania Investments, Inc. corporation #844244, and what action will be taken against the individual committing the fraudulent entry.

• Mr Cottrell then stated that if the offending intrusion was not removed IMMEDIATELY upon the receipt by facsimile of his letter and accompanying documentation [amounting in all to 39 pages], Pennsylvania Investments, Inc. corporation Number 844244 will move legally for fraud against the Secretary of the Commonwealth of Pennsylvania, Pedro A. Cortes and others, against this Salvatore R DeFrancesco individually and severally, referencing a fraud against Pennsylvania Investments, Inc. corporation #844244 for THREE TIMES DAMAGES, namely $45 billion:

… since the payment is IMMINENT and therefore the screen can be used to divert or steal the aforementioned funds to Fidelity Deposit & Discount Bank et al., and/or Penn Acceptance Corporation, et al.

• Pennsylvania Investments, Inc. corporation #844244 has no accounts with either. The funds are to be deposited with Pennsylvania Investments, Inc.’s identified securities account at Morgan Stanley & Co., New York, NY.

• Summary to date:
This represented a bold, brazen attempt to divert the $15.0 billion and the sovereign $6.2 trillion loan funds earmarked for the funding of the private sector Dollar Refunding Programme payable to Pennsylvania Investments, Inc., in accordance with international mandated authority, by using a fraudulent imposed ‘Italian community’ representative as SECRETARY, who would be in a position to issue instructions to the paymaster to DIVERT AND STEAL THE LOAN FUNDS for payment into accounts controlled by the unauthorised intruder posing as SECRETARY of Mr Cottrell’s firm.

MONUMENTAL BLUNDER BY THE WHITE HOUSE CROOKS AND THEIR ASSOCIATES
It also represented a MONUMENTAL BLUNDER by the criminal operatives concerned, starting with President Barack Hussein Obama – who, we have been AUTHORITATIVELY AND EMPHATICALLY INFORMED, presided over and condoned, or facilitated, this INTENDED BUT ABORTED THEFT, on behalf of the Collective of Criminal Presidents of which he is currently the de facto Chairman.

As you can well imagine, following the faxing of these documents to the named recipients, and the realisation in high places on both sides of the Atlantic that the Editor of this service had acquired copies of the documents in question, turmoil broke out in the relevant offices and corridors of corrupt power in Washington DC, London and elsewhere.

• THE CROOKS AT THE HIGHEST LEVEL HAD BEEN CAUGHT RED-HANDED TRYING, ONCE AGAIN, TO DIVERT/STEAL THE SOVEREIGN LOAN FUNDS INTENDED FOR DOLLAR REFUNDING.

THE IMMEDIATE PREDECESSOR DECEPTION THAT WE ALSO ABORTED
As you will recall, an earlier, more feeble operation had erupted, centred on a crude attempt to rewrite Mr Wanta’s legend, inter alia to purport to represent that he ‘worked for’ the Federal Reserve – which would have had tangible consequences facilitating’ diversion of the funds – contrary to the language of the Writ for a Petition of Mandamus and the Motion to Dismiss filed by the Federal Reserve Bank of Richmond, both of which were the subject of a hearing at the United States Court for the Eastern District of Virginia, Alexandria, attended by Michael C. Cottrell, Dana V. Wilcox, the Editor of this service, and Mr Wanta.

Any variation of Wanta’s legend would have undermined the language of the Petition, leaving him vulnerable to a charge of perjury: hence, when we republished the text of the Petition which it had been anticipated that everyone would have forgotten all about, that operation had to be aborted. Moreover parties involved in promulgating the lies in question had to cease and desist, as well.

So the criminal minds set immediately about reviving a dormant mechanism for stealing the funds (as they have been doing ever since our lives were turned upside down as a consequence of their serial criminality): and they came up with the Pennsylvania Fraud, built on preparations for the theft initiated seven years earlier – the most brazen attempt to steal the funds yet recorded.

INDICATIONS OF RECKLESS, RUSHED IMPLEMENTATION
The Pennsylvania Fraud has all the hallmarks of of crass. amateurish, brash risk-taking, and having been implemented (though not contrived: see below) in an extreme hurry.

The risks they took included the following elements:

• That Mr Cottrell would not check the Pennsylvania authorities’ corporate screen until after the thefts had been perpetrated, when it would, they will have assumed, have been ‘too late’.

• That the designated Paymaster would willingly participate in the diversion/theft.

• That ‘Salvatore R. DeFrancesco’ would be exposed and his connections with the Collective of Criminal Presidents and dubious financial institutions and linkages would be revealed.

• That, untypically, this Editor would not become aware of this monumental attempt to re-steal The Queen’s loan funds and the funds payable to Michael Cottrell’s corporation (related to the earlier stealing by George H. W. Bush of the Deutsche Bank AG contract and the electronic ‘stealing’ of his signature, for the private enrichment of George H. W. Bush, Mikhail Gorbachev, Helmut Kohl and Dr Joseph Ackermann as partners in Deutsche AG, St. Gallen, Switzerland) – until it was far too late.

ROUTINE EMBEDDING OF A STATE BUREAUCRACY
WHEN STRUCTURING SUCH A PLANNED GIGA-CRIME
And why did they imagine it was ‘safe’ to take such risks, implicating President Obama directly?

The answer to this question is interesting. It conforms to a standard pattern. This revolves around a STATE (never a FEDERAL: always a STATE) bureaucracy. The fraud is committed with the de facto assistance of the selected bureaucracy in question.

The function of the STATE bureaucratic element built into the operation is to provide the ‘fall-back’ pretext for the attempted theft – which is always the same, namely that the modern equivalent of ‘a clerical error’ had occurred. This ‘explanation’ surfaces when the operation has had to be aborted, as in this instance [see below]. It serves as a means of BLOCKING FURTHER ENQUIRIES, so that the sting is supposedly taken out of the outrage and everything subsides back to ‘normalcy’.

The only problem this time round is that the operation was identified, exposed, ‘stamped on’ and aborted in ‘real time’ – with the full details being made available to the Editor of this service, so that we can publicise the rotten stench of the head of the fish sitting in the White House.

In this instance, a mole inside the Commonwealth of Pennsylvania’s official structures would have procured the clandestine insertion of a Mafioso’s name as Secretary of Pennsylvania Investments, Inc. corporation #844244.

COMPARISON WITH THE STEALING OF TAX REVENUES IN WISCONSIN
We have observed and deconstructed similar corruption within the State structures in Wisconsin: see, for instance, our report dated 6th August 2007, giving comprehensive forensic details of the triplication of the same State tax, the massive cover-up that ensued, and the failure of authorities to address this corruption. Another dimension of ongoing fraudulent practice within the Wisconsin State Department of Revenue can be summarised as follows (we have documents proving this):

• As a WI State resident you receive a State tax demand, requesting tax to be paid to the Wisconsin State Department of Revenue at a box number address.

• You send the funds demanded by the Wisconsin State Department of Revenue to the post office box address printed on the tax demand.

• After a period of time you receive an agitated DEMAND from the Wisconsin State Department of Revenue for the SAME TAX, with a request that it must be paid immediately to the Wisconsin State Department of Revenue’s designated street address.

• You protest that you have already paid the tax and that you have no intention of paying it twice.

• Wisconsin State Department of Revenue then triggers its dunning procedure, charging interest on the tax you have already paid, threatening court action culminating in the sequestration of your assets to the value of the unpaid tax, and a possible jail sentence.

• You send proof of payment (the money sent to the P.O. Box) by registered recorded delivery.

• The Wisconsin State Department of Revenue reiterates that so far as it is concerned, it never received the funds. You protest that they passed through your bank statement and provide them with a copy of the bank statement in question. They continue to deny they ever received the money.

• You inform lawyers, officers under the United States under the Misprision of Felony Statute, etc. of the travesty and injustice, but nothing happens: because all involved are working this together, being masons and members of secret societies catering for their own sordid interests – but mainly because the Jewish mafia controls the Wisconsin State Department of Revenue. Undsoweiter.

In the case of the Pennsylvania Fraud, we have prima facie evidence of criminal behaviour inside the State structures. Why should Pennsylvania be any different from the State of Wisconsin?

• Here’s what happened next.

WHAT HAPPENED AFTER THE ‘ITALIAN SECRETARY’ WAS DISCOVERED
As indicated, Mr Cottrell faxed his letter and associated documents to the named recipients on 9th March 2010. The main documents faxed to the Pennsylvania Department of State and to the named recipients are reproduced verbatim below, following this narrative.

Nothing happened on 9th March; and by the morning of 10th March, Salvatore R. DeFrancesco remained on the State authorities’ official screen, falsely logged as SECRETARY of Pennsylvania Investments, Inc. So on 10th March, between 8:41 a.m. and 8:46 a.m., Michael Cottrell telephoned the Pennsylvania Department of State to ask why the necessary action to remove the imposter’s name had not been taken, as demanded in his letter to Ms. Butler, Supervisor, in that department.

Mr Cottrell was informed that Ms. Butler was ‘not in the office’. He was then placed ‘on hold’. When the woman returned to the phone, he was told that ‘we will not be taking any action at this time’. Mr Cottrell also contacted Martha Brown, General Counsel for the Pennsylvania Department of State.

CHINESE CONFIRM THAT ‘BUSH SENIOR’ IS STILL INTERFERING
On 10th March, we received authoritative intelligence from a Chinese official, sourced curiously from Hawaii, who had stated that ‘there are still problems with George Bush Sr’. This was a clear reference to the fact that the Chinese authorities knew that Bush Sr. stood behind the attempt to steal/divert the funds from Pennsylvania Investments, Inc. on 9th March – which was the (latest) date when the payouts should have taken place.

SUDDEN PHONE CALL FROM THE PA DEPARTMENT OF REVENUE
At 11.11 am Ms. Julie A. Castillo (717-705 6087), from the Pennsylvania Department of Revenue, not the Department of State, suddenly telephoned Mr Cottrell. She had ‘done some research’ and had discovered that Mr Cottrell had transposed ‘the last four digits of his [Mr Cottrell’s] own Social Security Number on a 2004 tax return, and that these last four digits corresponded to the last four digits of the Social Security Number belonging to Mr Salvatore R. DeFrancesco’. Quote unquote.

Provided you have not consumed too much whisky already, you will immediately understand that this ‘explanation’, apart from being nonsensical, was spurious and fabricated. Even if digits of a Social Security Number had been mixed up six years ago, that did not give anyone authority to assume the rôle of Secretary of Pennsylvania Investments, Inc. at any time, let alone, out of the blue, six years later, when the payments were imminent. Nice try, but manifestly irrelevant.

Further, even if this were true, it would not explain why all subsequent Cottrell tax documents after 2004 (2005) had not reflected this error.

And further still, if there was any connection whatsoever between this lame ‘explanation’ and the sudden appearance of this member of ‘the Italian community’ on the Pennsylvania Department of State’s screen for Pennsylvania Investments, Inc., why had Salvatore R. DeFrancesco not appeared on the screen from 2004 onwards?

COTTRELL DEMANDS FAXED COPIES OF PA’S TAX RECORDS
Mr Cottrell requested that Ms. Julie Castillo fax the Pennsylvania Tax authorities’ relevant Cottrell tax documentation from 2003-2004 to date, to him on his office facsimile Erie, PA. [814-453 4453], to enable him to verify the accuracy of the ‘explanation’ that she had just put forward.

Ms. Castillo said she would comply. She also said that she would need to give an instruction to the Pennsylvania Department of State, for the (intrusive, false) ‘SECRETARY’ to be removed from the screen. This telephone call terminated at 11:17 a.m..

At 11:26 a.m. on 10th March, Ms. Castillo rang Mr Cottrell back to say that she had ‘spoken to my supervisor’ who had stated that Ms. Castillo was not permitted to fax the documents in question, but that she would instead put them in the mail.

At 12:06p p.m. EST on 10th March the name of the ‘Italian’ imposter, a known associate of George Bush Sr., was still on the PA Department of State’s screen for Pennsylvania Investments, Inc.

MAFIOSO REMOVED FROM COTTRELL’S CORPORATE SCREEN
By 2:02pm on Wednesday 10th March, the screen had been amended to delete the name of the deliberately inserted Bush-Obama ‘Italian community’ impostor, so that it now read as follows:

Business Entity Filing History
Date: 3/10/2010
Name: Pennsylvania Investments, Inc.
Entity Number: 844244
Status: Active
Entity Creation Date: 12/11/1984
State of Business: PA
Registered Office Address: 1167 West Seventh Street, Erie, PA 16502-0, Erie
Officers:
Name: Michael C. Cottrell
Title: President
Address: 1157 W 7th Street Erie, PA, 16502-25

FORENSIC ANALYSIS OF THE DOCUMENTS MAILED BY MS. CASTILLO
In the early evening UK time on Saturday 13th March 2010, the Editor was informed that Ms. Julie A. Castillo had sent certain Cottrell corporate tax documents to Michael Cottrell, copies of which were faxed shortly afterwards to the Editor of this service. Specifically, we received PA Corporate Tax Reports for the years 2004, 2006 and 2007. Here’s what we found on examining these documents:

• PA Corporate Tax Report 2004: Pennsylvania Investments, Inc.
(1): The last four digits of Mr Cottrell’s Social Security Number are shown as: 8024,
which is NOT CORRECT. The first two digits of the last four digits should read: 08
(2) Michael Cottrell is listed as: President of Pennsylvania Investments, Inc. CORRECT
(3) Michael Cottrell is listed as: Secretary of Pennsylvania Investments, Inc. CORRECT
The document is signed by Michael C. Cottrell and his signature is correct.

• PA Corporate Tax Report 2006: Pennsylvania Investments, Inc.
(1): The last four digits of Mr Cottrell’ Social Security Number are shown as: 0824, which is CORRECT. That is to say, TWO digits, not FOUR digits, were transposed in the 2004 Tax Report. [Mr Cottrell advises separately that the incorrect transposition of the first two of the last four digits to 8024 also appeared on the corporate tax reports for 2003 and 2005].
(2) Michael Cottrell is listed as: President/Managing Partner of Pennsylvania Investments, Inc.
(3) Michael Cottrell is NOT listed as: Secretary of Pennsylvania Investments, Inc., contrary to the CORRECT information sustained on the PA Corporate Tax reports for 2003, 2004 and 2005. As shown separately [because of a certain complexity] below, for a number of years, Pennsylvania authorities REMOVED ALL MENTION OF MR COTTRELL AND HIS CORPORATE TITLES from the screen, as part of the intended fraud. The document is signed by Michael C. Cottrell and his signature is correct.

• PA Corporate Tax Report 2007: Pennsylvania Investments, Inc.
(1): The last four digits of Mr Cottrell’ Social Security Number are shown as: 0824, which is CORRECT. That is to say, TWO digits, not FOUR digits, were transposed in the 2004 Tax Report. [Mr Cottrell advises separately that the incorrect transposition of the first two of the last four digits to 8024 also appeared on the corporate tax reports for 2003 and 2005].
(2) Michael Cottrell is listed as: President/Managing Partner of Pennsylvania Investments, Inc.
(3) Michael Cottrell is NOT listed as: Secretary of Pennsylvania Investments, Inc., contrary to the CORRECT information sustained on the PA Corporate Tax reports for 2003, 2004 and 2005. As shown separately [because of a certain complexity] below, for a number of years, Pennsylvania authorities REMOVED ALL MENTION OF MR COTTRELL AND HIS CORPORATE TITLES from the screen, as part of the intended fraud. The document is signed by Michael C. Cottrell and his signature is correct.

STARTLING FINDINGS FROM OUR FORENSIC EXAMINATION
OF PA CORPORATE SCREEN DOCUMENTS
In the segment below divulging details of the letter and documents faxed and mailed by Mr Cottrell on 9th March 2010 to the Governor of Pennsylvania and the other named recipients, you will see under EXHIBIT “D” [Items D-01 to D-13], a list of screen documents displayed by the Pennsylvania Department of State to show the status of Pennsylvania Investments, Inc.

In addition to the findings exposed elsewhere in this report [e.g., above], we append immediately below each listing, a statement of what selected screen documents from the ‘EXHIBIT “D”’ list do OR DO NOT show – from which REITERATED INCONSISTENCIES we conclude that the Pennsylvania Department of State fiddled illegally with the screen displays for Mr Cottrell’s firm for many years, playing around with and varying what was displayed – despite the fact that no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed. [Non-US readers: the US date format has to be displayed here to conform with standard US usage]:

D-01: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 [falsely] identifying SALVATORE R DEFRANCESCO as SECRETARY of Pennsylvania Investments, Inc. This imposter from the ‘Italian community’ appeared suddenly from ‘nowhere’.

• This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc. The ‘explanation’ proferred by the PA Department of Revenue is spurious, insolent, diversionary, reckless, irrelevant and an insult to our intelligence.

D-02: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 indicating that NO AMENDMENT OF ARTICLES WAS SUBMITTED TO THE DEPT. OF STATE AUTHORIZING CHANGE OF OFFICERS since 12/11/1984.

D-03: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/9/2009, showing MICHAEL C. COTTRELL as PRESIDENT of Pennsylvania Investments, Inc.

D-04: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2009, showing that as of the search time 09:44 on that date no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed.

D-05: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/22/2008, showing MICHAEL C. COTTRELL as PRESIDENT of Pennsylvania Investments, Inc. Since [see below] Mr Cottrell had been ARBITRARILY REMOVED AS PRESIDENT from the screen in earlier years [see below], the sudden ‘rehabilitation’ of Michael C. Cottrell as President of his own corporation by the Pennsylvania Department of State in December 2008 must surely have reflected some development which had compelled the corrupt PA officials concerned to REVERSE their previous illegal elimination [see below] of Mr Cottrell as President of his own corporation.

That event was the submission of an Affidavit by Michael Cottrell to Her Majesty the Queen via the Editor of this service in September 2008. Moreover it was then known, from telephone intercepts, that Michael Cottrell would be forwarding a further document [the Notarised Affirmation, shown as EXHIBIT “B”, included within the 39-page document faxed and mailed on 9th March 2010 to the Governor of Pennsylvania et al. and therefore appended (as ‘EXHIBIT “B”) below].

• This document was duly placed in the hands of the Editor of this service for forwarding to Buckingham Palace, as indicated.

D-06: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/18/2008 Uniform Commercial Code (UCC): This states that: Search Results Include Filings Through 12/18/2008 12:00 a.m., to which is appended the rubric: ‘There are currently no financing statements or other liens for the above requested criteria’.

D-07: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/22/2008, showing that as on that date no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed.

D-08: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/15/2008. The necessary designation of Michael C. Cottrell as President and Secretary of Pennsylvania Investments, Inc., applicable since the corporation’s formation on 11th December 1984, has been REMOVED. This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc.

D-09: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/15/2008, showing that as on that date no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed.

D-10: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/27/2008. The necessary designation of Michael C. Cottrell as President and Secretary of Pennsylvania Investments, Inc., applicable since the corporation’s formation on 11th December 1984, has been REMOVED. This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc.

D-11: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/27/2008, showing that as on that date no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed.

D-12: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 10/1/2006. The necessary designation of Michael C. Cottrell as President and Secretary of Pennsylvania Investments, Inc., applicable since the corporation’s formation on 11th December 1984, has been REMOVED. This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc..

D-13: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 4/6/2005. The necessary designation of Michael C. Cottrell as President and Secretary of Pennsylvania Investments, Inc., applicable since the corporation’s formation on 11th December 1984, has been REMOVED. This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc.

• CONCLUSION FROM THE FOREGOING: The forensic evidence presented above (copies of which documents are held on file by the Editor of this service) shows that the original plan was simply to ‘delete’ Michael C. Cottrell, B.A., M.S., altogether, and to use his corporate vehicle, Pennsylvania Investments, Inc., as the shell for the purpose of stealing the $6.2 trillion sovereign funds (with its securities account with Morgan Stanley & Co., New York, NY).

The reason for this must clearly have been that it had been confirmed already by the international authorities concerned that Mr Cottrell was to be granted the privilege, given his trustworthiness and unique securities expertise, of organising and implementing the private sector fully taxable, transparent Refunding of the US Dollar.

INTENTION TO USE COTTRELL’S INVESTMENT CORPORATION
TO STEAL THE $6.2 TRILLION TRACEABLE BACK TO THE FALL OF 2007
At least that’s what appears at first sight. But on yet further investigation, it is recalled that while Michael Cottrell and Leo Wanta were staying in the Staten Island hotel (part of the ‘40 days in the hotel wilderness’) in November 2007, prior to Wanta’s ‘switch’ precipitated by what follows here, Wanta was incessantly arguing with Mr Cottrell about the necessity of equipping Pennsylvania Investments, Inc. with a BANK account with Citibank.

Mr Cottrell argued that he would never agree to using anything other than a SECURITIES ACCOUNT (i.e. the account of Pennsylvania Investments, Inc., with Morgan Stanley in New York).

[Mr Wanta was only able to travel outside Wisconsin at all because the Editor’s since stolen loan of $35,000 to him, had procured the shortening of Wanta’s probation by five years and two weeks – to 14th November 2005, rather than 28th November 2010].

In other words, while purporting to be rooting for payment into his AmeriTrust Groupe, Inc., what Wanta was actually seeking to procure while in the prolonged presence of Mr Cottrell in October-November 2007 [see our contemporary reports] was that Pennsylvania Investments, Inc. would acquire a BANK ACCOUNT from which The Queen’s sovereign $6.2 trillion loan, made available via the Bank of England to Bank of New York Mellon on 19th-20th June 2007, could be stolen as it was being paid to Pennsylvania Investments, Inc., in accordance with the international instructions.

• BECAUSE THEY COULD NOT HOPE TO STEAL THE $6.2 TRILLION
FROM PENNSYLVANIA INVESTMENTS INC.’S SECURITIES ACCOUNT.

• As repeatedly stated in these reports, a US Securities Account is infinitely more secure than a bank account. It would be VERY DIFFICULT to steal/divert money from a US securities account.

Recall that Wanta works for Bush Sr. and was the courier between Bush Senior and Gorbachëv. Wanta’s job all along has been TO FACILITATE THEFTS BY BUSH SENIOR.

• THEREFORE, AMERITRUST GROUPE, INC. WAS A TYPICAL C.I.A.
‘BLIND’ DECEPTION [SET UP VIA LEVITTE: FRANCE/DVD]
All the time that Cottrell and Story were involved with Wanta, the cover story was that funds sent over by the People’s Bank of China in May 2006 were to be paid into AmeriTrust Groupe, Inc., for the benefit of Wanta, who, as well as ‘working for’ Bush Senior, was also, all along, being used and deceived by him, and by Cheney and Bush Junior and their associates.

Wanta would leave the Staten Island hotel accommodation and go down to the public telephone booths in the hotel lobby to make calls to Mr Cheney and other operatives, to obtain his updated instructions, and to give progress reports on whether he was succeeding in getting Mr Cottrell to go along with the idea that Pennsylvania Investments, Inc., should acquire a bank account. It now transpires that this was all an elaborate cover masking the following circumstances:

• Ex-Treasury Secretary John Snow, considered by Bush Jr. to be ‘insufficiently malleable’, had to be ‘caused to resign’, in order to be replaced by Bush’s selected operative, Henry M. Paulson. The $4.5 trillion was then duly hijacked as intended (by the Bush Crime Family), by this Bush lackey, as Treasury Secretary, for use as footings for ILLEGAL securitisation operations (leveraged trading and hypothecation), thus specifically precipitating the vast EXPLOSION of derivatives in 2006-08, leading to the sudden bursting of the resulting global derivatives bubble and to the COLLAPSE following the intervention by the Editor of this service to the highest UK level – whereupon the sovereign monies were placed into ‘lockdown’ (out of access) almost immediately (on 10th-12th September 2008), unravelling exposed Bush-related Ponzi ops. (Madoff, Stanford et al).

• A year earlier, given that the $4.5 trillion had been ‘accounted for’, Wanta’s Petition for a Writ of Mandamus [June 2007] asking for the $4.5 trillion to be paid to AmeriTrust Groupe, Inc. turns out to have been an elaborate ruse, as was made obvious when Wanta appeared before the United States Court for the Eastern District of Virginia, Alexandria, on 19th October 2007, and deliberately made a complete jackass of himself from the podium. Judge Ellis accordingly pronounced in favour of the Federal Reserve Bank of Richmond’s Motion to Dismiss. The Editor was present in the Court and witnessed this fabricated theatrical scene at first hand.

• While ostensibly nevertheless subsequently waiting in the Staten Island hotel for the AmeriTrust Groupe Inc. payment to be made by Citibank in November 2007, Mr Wanta had in fact been tasked by Bush/Cheney to keep waffling about AmeriTrust Groupe while all the while pressurising Michael Cottrell to attach a bank account to his Pennsylvania Investments, Inc. corporation (which was to conduct financial transactions with AmeriTrust Groupe, Inc.). If that operation had succeeded, the intention would have been to use Pennsylvania Investments, Inc. as the shell with a bank account and an illegally imposed Secretary or Board of Directors, for the purpose of effecting the diversion of the payment of the $6.2 trillion US Dollar Refunding loan funds stipulated by the international authorities for Pennsylvania Investments, Inc., without Mr Cottrell’s knowledge or consent.

• By correctly refusing to agree to Pennsylvania Investments, Inc. acquiring a BANK account, Mr Cottrell FRUSTRATED THIS CRIMINAL INTENT, precipitating:

(1): Wanta’s ‘switch’ operation, starting with his intimation to Mr Cottrell that ‘we must get rid of Christopher Story but don’t tell him’, and culminating in Mr Wanta’s cack-handed, irregular and vituperative (without a cause) ‘dismissal’ of Michael Cottrell in March 2008 from the positions of Treasury and Executive Vice President of AmeriTrust Groupe, Inc. (received by Michael Cottrell with undisguised relief); and:

(2): The continued blocking of the Settlements because the White House et al. criminals had no intention of effecting the Settlements payments unless they could steal the bulk of them (especially the $6.2 trillion sovereign loan from the Queen for the Refunding of the US Dollar) for themselves.

FRUSTRATION BY MR COTTRELL AND THIS SERVICE of the further attempt to seize the $6.2 trillion sovereign loan fund on 8th-10th March 2010 has meant that the White House et al. have been UNABLE TO STEAL THE QUEEN’S LOAN FUNDS YET AGAIN; so they are currently trying to work out what deception they can mount next, to achieve that same constantly frustrated objective.

In other words, the Bush Crime Syndicate + CIA/DVD + the Collective of Criminal Presidents + the corrupt US Treasury under Geithner + the corrupt US State Department under Mrs Clinton have just demonstrated once again that they remain hell-bent on STEALING THE $6.2 TRILLION, i.e. mobilising these sovereign loan funds for their own purposes.

• THEY HAVE BEEN BLOCKED AT EVERY TURN.

What remains to be seen is: WILL THEY BE BRAZEN ENOUGH, AFTER BEING CAUGHT
SO RED-HANDED, TO WORK OUT YET ANOTHER WAY OF ACHIEVING THEIR OBJECTIVE?

Given that they have botched the latest attempt to steal the funds so badly, and have left such a rich trail of clues confirming their criminal intentions, the logical answer to this question, would be: NO. They have blown it. But the German element among these criminals never knows when to stop, and when it has been defeated. Their arrogance knows no limitations, as you are aware.

So a sensible precaution would be to assume that these crooks, and their associates, will continue to duck and weave and fiddle around, hoping against hope that they can pull off the stealing of the $6.2 trillion without getting caught in the act – and in spite of the fact that WE HAVE REPEATEDLY CAUGHT AND EXPOSED THEM ‘IN FLAGRANTE’.

• WHEREUPON U.S. LAW ENFORCEMENT, PAYMASTERS ETC, DO ABSOLUTELY NOTHING TO BRING THESE HIGHEST-LEVEL CRIMINALS TO JUSTICE. The fact that they hold or held high office does not place them above the law. Their continued perpetration of MASSIVE CRIMES insults the American people and all those around the world who are watching the US authorities’ lily-livered cowardice and brazen flouting of the Rule of Law in allowing these hideous criminals to continue operations, despite having been repeatedly caught either in the act or planning it.

Judging by the number of people who would have had to have known about the intended Pennsylvania Fraud, the word BRIBERY, or an illusory promise of same, springs to mind.

We understand that following the latest aborted theft attempt, the level of activity from the UK side has intensified: but of course those concerned never consult us at all.

• They just leave us ‘out there’ to stick our necks out for them, and to expose what’s going on.

INCOHERENT ‘EXPLANATION’ BY THE PA DEPARTMENT OF REVENUE
Reverting now to the attempted giga-theft of 8-9 March 2010, as you will have gathered from the above, what Ms. Julie A. Castillo of the Pennsylvania Department of Revenue represented to Mr Cottrell by telephone between 11:11 a.m. and 11:17 a.m. on 10th March 2010 was as follows:

• She had been ‘doing some research’ (following the fireworks from the Governor’s Mansion and the other official recipients which had erupted on receipt of Mr Cottrell’s 39-page facsimiles on 9th March), and had ‘established’ that:

• ‘The last four digits of [Mr Cottrell’s] Social Security Number on a 2004 tax return’ have been transposed, ‘and that these last four digits corresponded to the last four digits of the Social Security Number belonging to Mr Salvatore R. DeFrancesco’.

• This ‘somehow’ explained why Salvatore R. DeFrancesco appeared as Secretary for Pennsylvania Investments, Inc, – except that it DIDN’T. THERE WAS NO CONNECTION. THAT WAS A LIE.

PREPARATIONS FOR THEFT PUT IN PLACE SEVEN YEARS AGO:
ASSUMPTION THAT THE PAYMASTER WOULD COOPERATE
Deeper forensic consideration yields the following findings:

(1): The PA Corporate Tax Reports for 2004, 2006 and 2007 faxed to the Editor of this service are PRINTED REPORTS with all the entries inserted via the Pennsylvania Department of Revenue’s computerized system: i.e., the entries to procure the print-outs were inserted BY THE STATE AUTHORITIES themselves, NOT BY MR COTTRELL.

• The authorities are responsible for inserting the data for their print-outs.

These printed documents are signed by Mr Cottrell, and it is true that he missed the transposition of the two first digits of his Social Security Number when he signed the PA Corporate Tax report 2004 (and 2003 and 2005): but THE ERROR WAS THE TAX DEPARTMENT’S ‘ERROR’, because the document was generated by the tax authorities themselves.

• Contrary, therefore, to a subsidiary assertion by Ms. Julie A. Castillo, the ‘error’ was originated by the Pennsylvania tax authorities, NOT by Mr Cottrell.

(2): Which implies RATHER CLEARLY that this little entrapment mechanism was planned at least seven years ago – that is to say, not long after the stealing of Mr Cottrell’s Deutsche Bank A.G. contract and the ‘electronic stealing’ of his signature exposed recently in these reports, with the ultimate proceeds of that theft and the hijacking of his transactions being credited to Deutsche AG. (formerly Barrington Investment Group), St Gallen, Switzerland, the partners of which are George H. W. Bush Sr., Mikhail Gorbachëv, Dr Helmut Kohl and Dr Joseph Ackermann.

• WE HAVE NO DOUBT THAT GEORGE BUSH SENIOR, GORBACHEV, KOHL
AND ACKERMANN WERE EXPECTING TO SPLIT THE QUEEN’S $6.2 TRILLION
BETWEEN THEM, VIA DEUTSCHE A.G.. THAT WAS THE INTENTION.

(3): This deduction appears to contradict our working assumption cited above that the insertion of our ‘Italian community’ non-friend, Salvatore R. DeFrancesco, was effected IN A HELLUVA RUSH in connection with/following or coincident with the visit of President Obama to Pennsylvania – given that we have been definitively informed that President Obama was behind this attempted theft (on behalf of the Collective of Criminal Presidents).

However we think that what happened was that this long-laid bureaucratic enmeshment trap, which had been dormant for seven years, was ACTIVATED IN A HURRY so as to ‘facilitate’ the immediate stealing and diversion of Mr Cottrell’s $11.0 billion and the $6.2 trillion sovereign loan funds, which were to have been deposited on 9th March 2010: and this assessment appears to be the conclusion of the Chinese authorities, as well.

(4): The transposition of two of the last four digits of Michael Cottrell’s Social Security Number IS OF COURSE COMPLETELY IRRELEVANT to the matter in hand, since it does not ‘AUTHORISE’ the surfacing of the impostor Salvatore R. DeFrancesco as SECRETARY of Pennsylvania Investments, Inc. on the Pennsylvania Department of State’s screen for corporation ##844244.

(5): Therefore, the ‘explanation’ proffered by Ms. Julie A. Castillo [717-705 6087] is proven to be SPURIOUS, DISINGENUOUS, IMPERTINENT, OBFUSCATORY, DIVERSIONARY, AND IRRELEVANT.
The ‘explanation’ generated in extremis under pressure by Pennsylvania’s Department of Revenue DOES NOT ‘EXPLAIN’ the fraudulent appearance of a noted member of ‘the US Italian community’ as Secretary of Pennsylvania Investments, Inc., immediately ahead of the large payouts in question.

(6): The criminal crudity of this dirty little pre-planned stratagem with colossal implications for the WHOLE WORLD is self-evident, not least since it begs the subsidiary question: if Madam Julie A. Castillo’s ‘explanation’, is pertinent, why did Salvatore R. DeFranceso not appear as Secretary on the Pennsylvania Department of Revenue’s successive PA Corporate Tax Reports print-outs for Pennsylvania Investments, Inc., back in 2004 (2003 and 2005)? Problem: In 2004, the Secretary of Pennsylvania Investments, Inc. was shown as Michael Cottrell, so that ‘couldn’t happen’.

(7): SO: On subsequent PA Corporate Tax Reports for Pennsylvania Investments, Inc., Michael Cottrell’s name was REMOVED from the entry on the Department’s print-outs showing him as SECRETARY, in readiness for this diabolical criminal operation, see?

IN OTHER WORDS, THE EVIDENCE SHOWS THAT A CRIMINAL THEFT FROM PENNSYLVANIA INVESTMENTS, INC., on top of the theft of Mr Cottrell’s Deutsche Bank AG contract and the ‘electronic stealing’ of his signature, WAS PLANNED AS LONG AGO AS 2003-2005.

(8): There can be little doubt that if this outrageous criminal operation, masterminded in its most recent phase by the Obama White House, had not been spotted in time, the $15.0 billion and the $6.2 trillion sovereign loan funds WOULD HAVE BEEN DIVERTED/STOLEN, as was clearly intended – the underlying practical assumption being, no doubt, that this would have been achievable with the enthusiastic participation of the Paymaster, who would have been handsomely ‘paid off’ for his practical assistance in facilitating the stealing of The Queen’s loan funds by George Bush Senior, Mikhail Gorbachev, Helmut Kohl and the CEO of Deutsche Bank, Dr Joseph Ackermann.

• That’s how these people operate.

SUMMARY OF THE PENNSYLVANIA FRAUD
So this colossal aborted criminal operation represented a blatant, rushed, yet long preplanned, reckless, brazen attempt by the President of the United States, Barack Obama, in conjunction with the Collective of Criminal Presidents and their co-conspiring associates, of which Mr Obama is the de facto Chairman, to steal Mr Cottrell’s $11.0 billion and to re-steal the $6.2 trillion sovereign loan funds which the Basel instructions require to be paid into the Securities Account held with Morgan Stanley & Co, New York, NY, of Pennsylvania Investments, Inc., for the sole purpose of financing the transparent, on-the-books, fully taxable US Dollar Refunding process, which remains the ONLY solution to the crisis and has long been approved by the Group of Seven financial powers.

We have further definitive official confirmation from our special sources, that this ‘is what the instructions say’. We also have information to the effect that since Mr A. Clifton Hodges’ letter to the Editor of this service which we were recently asked to forward to Buckingham Palace, there has been ‘heightened activity’ from London in this overall context.

What distinguishes this brazen attempted giga-theft from its multiple predecessors is that, given the much more intense scrutiny of the behaviour of these organised criminals holding the highest offices in the United States, the perpetrators were caught IN FLAGRANTE, in real-time.

In their greedy RUSH and lust to re-seize these funds illegally for their own gross purposes and self-enrichment, that ‘Italian’ character linked to Bush and Obama was intentionally and illegally inserted as ‘SECRETARY’ of Pennsylvania Investments, Inc. immediately ahead of the relevant intended ‘Settlements’ payments, so that Salvatore R. DeFrancesco could instruct the Paymaster to divert the funds corruptly into bank accounts designated by the Collective of Criminal Presidents.

The operation had, as we have seen, all the hallmarks of having been devised under pressure and in a rush, albeit having been planned many years in advance in anticipation of such a contingency.

The payments were imminent, and there was not much that could continue to be done to block them: so emergency criminal measures needed to be taken to divert the funds at the point of remittance. Any problems arising from the theft could be ‘sorted out’ later.

We can see from the lame, concocted bureaucratic ‘clerical error’ explanation put forward in the phone call from Ms. Julie A. Castillo of the Pennsylvania Department of Revenue to Mr Cottrell between 11:11 a.m. and 11:17 a.m. on 10th March 2010 from 717-705 6087, that the bureaucratic back-stop had to be invoked in a terrible hurry – which was why Ms. Castillo came up hurriedly with such a completely disconnected and ludicrous insult to our intelligence with her unrelated invocation of ‘four’ Social Security digits allegedly mixed up back in 2004, which of course had nothing to do with the surfacing of Salvatore R. DeFrancesco as ‘Secretary’ of Pennsylvania Investments, Inc.

And what further emerges from this is that Ms. Castillo inadvertently ADMITTED that the criminal stratagem to steal funds that we have exposed had indeed been activated. This can be deduced from the fact of the disconnect between the ‘explanation’ and the fact of the member of the ‘Italian community’s’ appearance on the Pennsylvania Department of State’s screen. Because, as you will now readily concur, the very fact that THERE IS NO CONNECTION reveals precisely that THEY HAVE ADMITTED THE EXISTENCE OF THE CRIMINAL STRATEGY TO STEAL THE FUNDS.

• In other words, THEY BLURTED OUT THE ESSENCE OF THEIR CRIME.

Put another way, such a connection could ONLY be made by the criminal minds involved, given that there is no logical connection. So they have COMPOUNDED THEIR BLUNDER: they have actually confirmed the pinpoint accuracy of the conclusion from this forensic analysis.

• That, in turn, means that some or all of the recipients of Mr Cottrell’s faxes dated 9th March are CO-CONSPIRATORS in a colossal attempted fraudulent transaction the purpose of which was to STEAL THE FUNDS LOANED BY THE QUEEN PRO BONO PUBLICO IN ORDER TO FINANCE THE REFUNDING OF THE U.S. DOLLAR. And since we know that Mr Barack Obama and his White House precipitated this attempted hijacking operation, President Obama and his criminal cronies within and adjacent to the Beltway de facto ‘work for’ Bush, Gorbachev, Kohl and Ackermann.

For future reference, please take on board the criminal modus operandi explained above that is routinely used in the United States for such scamming operations: always to embed a STATE (NOT a Federal, but always a STATE) bureaucracy within the structured framework of the intended criminal giga-theft – for use as a ‘back-stop’ device, should the heist be exposed.

• That way, State officials, elected or career, always get the blame, and the whole operation disappears into a bureaucratic black hole hundreds of miles away from the Beltway.

Imagine how difficult it would have been to prove that the funds had been stolen, if this outrage had not been discovered in time to compel the criminals to abort their botched operation.

DOCUMENTS RELATING TO THE PENNSYLVANIA FRAUD

At about lunchtime UK time on 9th March 2010, the Editor’s fax machine delivered a large number of pages on Pennsylvania Investments, Inc. letterheading addressed to:

(1): Edward G. Rendell, Governor of Pennsylvania.
(2): Pedro A. Cortes, Secretary of the Commonwealth of Pennsylvania.
(3): Tom Corbett, Attorney general of the Commonwealth of Pennsylvania.
(4); Robert S. Cessar, United States Attorney, Pittsburgh, PA.
(5): A Clifton Hodges, Esq., Hodges and Associates, Pasadena, CA.
(6): Mr William Bonney, Sr., BOLDCAP.
(7): Mr Dana V. Wilcox.

Selected documents that were forwarded by fax and US mail by Mr Cottrell in the face of this criminal provocation were as follows:

……………………………………………………………………………….

(1): FAX COVER
PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8721

Attention: Ms. Butler, Supervisor

Via: Fax: 717-783 2244

ITEMS ENCLOSED:
(1): Letter of Notification regarding: Fraudulent Entry on www.corporatyions.state.pa.u./corp by person(s) unknown against Pennsylvania Investments, Inc. [3/8.2010]: 3 Pages
(2): Exhibit “A”: 12 Pages
(3): Exhibit “B”: 5 Pages
(4): Exhibit “C”: 3 Pages
(5): Exhibit “D”: 15 Pages.

Number of pages including cover: 39
9 March 2010
……………………………………………………………………………….

(2): LETTER OF NOTIFICATION TO
PENNSYLVANIA DEPARTMENT OF STATE:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8721

Attention: Ms. Butler, Supervisor

Reference:
Due Diligence Accounts Payable [Nov 19th, 2004 to March 25th, 2008]

RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010)

Via: Fax: 717-783 2244/ AND U.S. MAIL

Dear Ms. Butler:
Per our conversation this date, between approximately 9:34 a.m. EST and 9:40 a.m. EST, I stated to you that Pennsylvania Investments, Inc. is to receive funds in the amount of Fifteen Billion United States Dollars ($15,000,000,000.00 USD):

[Ref: Exhibit “B, Page 1” Payables Due with the Due Diligence Documentation Part 1 and Part 2, dated November 19, 2004 to March 23, 2008]

derived from a “Settlement” between the United States of America, the World Court, the People’s Republic of China, with the signed approval of President Barack Obama, and a loan of Six Point Two Trillion United States Dollars ($6,200,000,000,000.00 USD) to Pennsylvania Investments, Inc., via Her Majesty, the Queen of England (Sovereign of the United Kingdom of Great Britain and Northern Ireland) for the purpose of a Private Funding Refunding of the United States Dollar (Ref: Exhibit “B” Pages 2-4, an Affidavit submitted to Her Majesty, et al. On 29 December 2008).

Additionally, I stated to you that Pennsylvania Investments, Inc. (including Michael C. Cottrell) will pay an amount of Pennsylvania Corporate and Personal taxes of approximately Four Hundred and Ninety-Five Million United States Dollars ($495,000,000.00 USD) from this “Settlement” process.

Page 2: RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010):

However, the Pennsylvania Department of State has now become [a] knowing or unknowing participant in the ongoing fraudulent activities [being] attempted to divert said funds and the payment of Pennsylvania Corporate Taxes and/or to steal and place said funds in “off-balance sheet account(s)” with the aid of bank and political fraudsters – located in London (UK), Paris (France), Geneva (Switzerland), Houston and Dallas (Texas), Washington, D.C., and various locations in the Commonwealth of Pennsylvania

The above referenced fraudulent activity is evidenced by the placement of “SALVATORE R. DEFRANCESCO as SECRETARY” as Officer of Pennsylvania Investments, Inc. screen dated March 8, 2010 WITHOUT a correspondent Amendment of Articles – WITHOUT THE KNOWLEDGE OR APPROVAL OF THE DIRECTORS/OWNERS OF PENNSYLVANIA INVESTMENTS, INC.

Therefore, this corporation hereby demands that the name “SALVATORE R. DEFRANCESCO as SECRETARY” BE REMOVED IMMEDIATELY FROM THE SCREEN PAGE IDENTIFYING ENTITY 844244: PENNSYLVANIA INVESTMENTS, INC., 1157 WEST 7TH STREET, ERIE PA 16502-0.

Further, this corporation demands an investigation and a FULL REPORT TO THE BOARD OF DIRECTORS – as to who gave the authority for this name to be placed on said screen, what evidence [exists] of authorization granting said person the position of SECRETARY for this corporation, and what action will be taken against said person committing the fraudulent entry.

If the offending item is not removed immediately upon the facsimile receipt of this letter and documentation, this corporation will move legally for fraud against the Secretary of the Commonwealth, the Honorable Pedro A Cortes, et al., and against SALVATORE R. DEFRANCESCO (INDIVIDUALLY AND SEVERALLY) for Fraud against Pennsylvania Investments, Inc., for THREE (3) TIMES DAMAGES, e.g., FORTY-FIVE BILLION UNITED STATES DOLLARS ($45,000,000,000.00 USD) – since the payment is IMMINENT and therefore the screen identified can be used to divert or steal the aforementioned funds, e.g. [for account of] FIDELITY DEPOSIT & DISCOUNT BANK, et al., and/or PENN ACCEPTANCE CORPORATION, et al..

This firm has NO ACCOUNTS with either. The stated funds are to be deposited with this firm’s identified Securities Account at Morgan Stanley & Co, New York, NY.

Page 3: RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010):

Thank you for your immediate attention and assistance in this matter.

Regards,

Michael C. Cottrell, B.A., M.S.
President, CEO and Secretary
Pennsylvania Investments, Inc.
1157 West 7th Street
Erie, PA 16502-1106

Reference:
Exhibit “A”: Pages 1 thru 11;
Exhibit “B”: Pages 1 thru 4;
Exhibit “C”: Pages 1 and 2;
Exhibit “D”: Pages 1 thru 13.

CC:
(1): The Honorable Edward G. Rendell, Governor of Pennsylvania
(2): The Honorable Pedro A Cortes, Secretary of the Commonwealth
(3): The Honorable Tom Corbett, Pennsylvania Attorney General
(4): Robert S. Cessar, United States Attorney, Pittsburgh, PA
(5): A. Clifton Hodges, Esq., Hodges and Associates, 4 East Holly Street,
Suite 202, Pasadena, CA 91103
(6): Mr William Bonney, Sr., BOLDCAP
(7): Mr Dana V. Wilcox

……………………………………………………………………………….

(3): EXHIBIT “A”: WE REPRODUCE HEREWITH ONLY THE LIST OF ITEMS, LABELLED A-1 TO A-11 THAT ACCOMPANIED THE FOREGOING LETTER OF NOTIFICATION [BY FAX AND U.S. MAIL]. The Editor of this service holds copies of ALL these documents on file:

EXHIBIT “A”:

A-01: Contact Information; Pennsylvania Department of State.

A-02: Identification Screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/8/2010 [falsely] identifying SALVATORE R. DEFRANCESO as SECRETARY of Pennsylvania Investments, Inc..

A-03: Identification Screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 indicating that NO AMENDMENT OF ARTICLES WAS SUBMITTED TO THE DEPT OF STATE AUTHORIZING CHANGE OF OFFICERS.

A-04: Pennsylvania Investments, Inc. Articles of Incorporation ID # 8475-907.

A-05: Pennsylvania Investments, Inc. Articles of Incorporation ID # 8475-906 identifying ALL DIRECTORS/OWNERS OF THE CORPORATION [Pennsylvania Investments, Inc.].

A-06: Pennsylvania Investments, Inc. Articles of Incorporation ID # 8475-905 identifying ENTITY NUMBER 844244 and the address of the corporation [Pennsylvania Investments, Inc.].

A-07: Oath of Publication Notice, The Erie Daily Times, dated 9 January 1985.

A-08: Google search for SALVATORE R. DEFRANCESCO dated 3/9/2010, page 1.

A-09: Google search for SALVATORE R. DEFRANCESCO dated 3/9/2010, page 2.

A-10: FORBES.COM screen identifying SALVATORE R. DEFRANCESCO, page 1.

A-11: FORBES.COM screen identifying SALVATORE R. DEFRANCESCO, page 2.
……………………………………………………………………………….

(4): EXHIBIT “B”: Pages B-1 thru 4:
Item:

AFFIDAVIT SUBMITTED TO HER MAJESTY, THE QUEEN OF ENGLAND [SOVEREIGN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND] on 29 December 2008 via Mr Christopher Story, FRSA, 108 Horseferry Road, Westminster, London SW1P 2EF, United Kingdom:
[01144-02[0] 7222 3836 or 1-800-661-4809].

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com
29 DECEMBER 2008

I, Michael C. Cottrell, B.A., M.S., do hereby swear and affirm the following facts:

1: That on December 13, 2008 between approximately 4:47 pm EST and 4:52 p.m. EST, I placed a telephone call to Mr William Bonney, Sr., – during which he notified me of the following:

(a) My relationship with Delmarva Timber Trust, et al., has caused a legal concern that will prevent me from taking economic receipt of any funds regarding the Payables Due within the Due Diligence Documentation Part 1 and Part 2 (dated November 19, 2004) to March 23, 2008) presented to Mr Bonney on May 17, 2008, at Madison, Ohio;

[Reference: Delmarva Timber Trust [R.E.I.T.] – Owen C. Meddles, Dana V. Wilcox, Michael C. Cottrell, et al.: Allocation for Release of Blocked Funds License Application Submitted to the United States Department of Treasury Office of Foreign Assets Control: Exhibits: COPY No. 004 – # 1-A, #1-B, #1-C, #1-D, #3, #5, #14, #15, #G-6, #G-4, #G-2, and #G-1].

(b) That my participation in the attempted recovery of said funds for and on behalf of Delmarva Timber Trust, et al., has caused President George W. Bush’s Administration discomfort sufficient to warrant Mr Bonney’s personal guarantee to arbitrate the “differences between the White House/Leo (Lee) E. Wanta, and Michael C. Cottrell, B.A., M.S.”.

[Reference: Delmarva Timber Trust [R.E.I.T.] – Owen C. Meddles, Dana V. Wilcox, Mrs Cheryl D. (Meddles) Torres, Michael C. Cottrell, et al.: Letter and packet, dated January 15, 2002, delivered to: The Honorable Richard B. Cheney, Vice President of the United States, The White House/West Wing Executive Offices. Exhibits: COPY #0003: pp #1 of 3, #2 of 3, #3 of 3: Encl C; Encl E; Encl F].

(c) That ALL of my personal and corporate telephone calls are recorded and transcribed at Fort Meade (NSC), et al. and are submitted to the White House.

2: That on December 26, 2008, between approximately 7:31 a.m. EST and 7:34 a.m. EST, I placed a telephone call to Mr William Bonney, Sr., and was notified of the following items:

(a) That access to the “Settlement Funds” would commence on December 26th or serious consequences for the “Bush Administrations, et al.” will occur;

(b) That regarding Leo Wanta (Wanta Plan Funds), the “big guys” have determined that President G. W. Bush will fight to release the funds until after January 20, 2009, that the “big guys” have decided not to fight him for said reason before January 20th;

(c) That the “big guys” will wait until President Obama’s Economic Team presents the “Obama Plan” approximately on January 29, 2009;

(d) That the Obama Administration will “go with the G-7 Plan, but with ‘safeguards’, since ‘others’ do not have experience with such large funds”; and:

(e) That Mr Bonney has an agenda that must be accomplished first.

3: That Mr Dana V. Wilcox, as Financial Consultant, and Michael C. Cottrell, as Secretary and Trustee of Delmarva Timber trust [R.E.I.T.] physically delivered and paid for the recording of the Articles of Amendment to the Trust, therefore, reinstating the Delmarva Timber Trust as an Active Trust with Maryland Department of Assessments and Taxation on March 28, 2001 at 10:57 a.m. EST.

4: That, during the 1980s and 1990s, until October 17, 1992, Col. Dana V. Wilcox (now retired: Richmond, Virginia, USA):

• As CEO of Errickson, Inc. and acting for and on behalf of Owen C. Meddles/Delmarva Timber Trust, et al..

• actively participated in the “last proper refunding of the US Dollar” with the cooperation and participation of:

• Col. Kok Howe Kwong, of the People’s Republic of China, via:

• Aneko Credit Pte Ltd, Singapore, Hong Kong and Austria.

5: That the aforementioned Private Funding Refunding Operation of the US Dollar was initiated by President Ronald W. Reagan, via the communiqué on August 17, 1982 and agreed upon as a result of President Reagan’s State Visit to the People’s Republic of China in April 1984.

6: That on September 12, 2006 between approximately 8:37 a.m. EST and 8:52 a.m. EST, Dr Dana V. Wilcox telephoned me and discussed the following items:

(a) That the abovementioned items combined with the current sub-prime/derivative debacle now requires a new Private Funding Refunding Operation for the US Dollar – without US Govt. funding;

(b) That the new refunding flow charts would resemble the flow charts Delmarva Timber Trust, et al., had developed under Mr Wilcox and Mr Cottrell’

(c) That said flow chart system identified joint venture projects between Pennsylvania Investments, Inc., and Delmarva Timber Trust, et al., to create new tax incentives and full tax payment to the US Government, et al., as part of the refunding process, and to fund numerous low-income housing, waste management, other infrastructure projects, administration auditing teams for the projects;

(d) That these flow charts and processes were the actual basis of the “Wanta Plan” activities, as presented to Mr Christopher Story FRSA by Michael C. Cottrell, B.A., M.S., March 15 and 16, 2006;

(d*) That Mr Wilcox agreed upon receipt of the G-7 Refunding Funds to Pennsylvania Investments, Inc. Securities Account at Morgan Stanley NYC, per the “Wanta/Group of-Seven Plan”, he would act as “Consultant at least’ for Mr Michael C. Cottrell, B.A.,, M.S., and Pennsylvania Investments, Inc.;

(e*) That the people identified within the proposed Obama Economic Team – i.e., Dr Ben Bernanke, Mr Robert Rubin, Mr Timothy Geithner, Mr Lawrence Summers, Mr Paul Volcker, and specifically Mr Rahm Emanuel (Wasserstein Perella & Co.) – may have been tainted, by the actions of previous Presidential Administrations since 1981, and, therefore, may require “safeguards” that ensure the demise or hinder the effectiveness of the “Private Funding Refunding Operation of the US Dollar”;

(f*) That Mr Wilcox and Mr Cottrell believe the release of the aforementioned funds would demand a transparent presidency and a country operating under the Rule of Law. Only a proper privately funded refunding with third party auditing – not the President’s Cabinet as the auditing party – will allow the US Dollar to regain its capitalization value and renew the world’s international trading markets with full disclosure and transparent regulation.

7: That in reference to the sworn Affidavit signed and dated September 5, 2008, and submitted via Mr Christopher Story FRSA:

• I have not received an answer back concerning the question posed to Mr Thomas J. Melville, Jr., or his contact ‘J.B.” at the US Treasury Compliance Department, New York;

8: Therefore, I respectfully request the World Court and HMQ allow the directed “G-7” nations to operate the refunding program via the “Wanta Plan” commitment with Pennsylvania Investments, Inc./Mr Dana V. Wilcox to be executed with the designated funds from the Six Point Two Trillion USD as a “loan” via the Bank of England, to the Bank of New York Mellon (19-20 June 2007) to Morgan Stanley Securities Account of Pennsylvania Investments, Inc.

A copy of this affirmation shall have the same effect and force as the original.

I, Michael C. Cottrell, B.A., M.S., President of Pennsylvania Investments, Inc., located at 1157 West 7th Street, Erie, PA, 16502, United States Passport No. 205125335, do hereby swear and affirm that the above information is true and factual.

[Signed]
Michael C. Cottrell, B.A., M.S. Dare: 12-29-2008
President
Pennsylvania Investments, Inc.
Telephone: 814-455 9218
Facsimile: 814-453 4453

COMMONWEALTH OF PENNSYLVANIA
NOTARIAL SEAL
Raemarie T. Kovaly – Notary Public
CITY OF ERIE, ERIE COUNTY
My Commission expires Aug. 03, 2012
12-29-2008

* As original. Not amended by the editor here.
……………………………………………………………………………….

(5): EXHIBIT “C”: Pages C-1 thru 2:
Item: CORPORATE AND PROFESSIONAL EXPERIENCE OF
MICHAEL C. COTTRELL, B.A., M.S.:

Michael C. Cottrell, B.A., M.S.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814-453 4453
Email: pii-mcc@msn.com

CORPORATE AND PROFESSIONAL EXPERIENCE:

• DECEMBER 1984 TO PRESENT:
PENNSYLVANIA INVESTMENTS, INC.
PRESIDENT, CEO, TREASURER AND SECRETARY

Developed and executed marketing strategies to promote the sale of Investment Advisory Asset Allocation and Risk Analysis, Mutual Funds, and Cash Management services to Pension Plan Sponsors.

Marketed Investment Advisory Services and Mutual Funds to Pension Plans (Low to Mid Size: $10 million – $100 million) while training registered Representatives on the following techniques: cold calling approaches, sales presentation methods, and closes.

Marketed Investment Advisory Services and products to NYSE Broker/Dealers in a Twenty-Five (25) State Region.

Conducted advanced sales seminars for Registered Representatives: Development and acceptance of “market timing”, defined benefit/contribution plans; 501(k) plans; third party performance verification (SEI); marketing methods for fixed income and Pooled CIGs.

Developed, published, and marketed PENNSEARCH: RISK & ASSET ALLOCATION ANALYSIS: based on Sharpe’s Single-Index Beta Model and Morley Capital’s “Compass” program. Provided Investment Analysis/Advisory Services to Pension Plan Sponsors and TPAs

• JANUARY 1990 – TO MAY 1993:
NIAGARA SECURITIES, INC.
PRESIDENT and GENERAL SECURITIES PRINCIPAL

General Securities Broker/Dealer approved by N.A.S.D and S.E.C.
Securities Licensed Series 24, General Securities Principal.

Developed (with Pennsylvania Investments, Inc.) a Public/Private $55 Million – $60 Million AFFORDABLE HOUSING VENTURE CAPITAL LIMITED PARTNERSHIP for housing the Homeless, mentally and/or physically challenged. Renewed and endorsed by the Pittsburgh Regional Office for the Department of Housing and Urban Development.

Approved by Youngstown City Council (April 1990) for initial funding for WestWind Foundation.

• JANUARY 1983 TO JUNE 1984:
E. F. HUTTON and COMPANY, INC.
PENSION CONSULTANT/INSURANCE SPECIALIST

Promoted E.F. Hutton Universal Life Products and implemented training programs for the Account Executives to coordinate an effective program of capturing client assets.

• 1970 to 1976:
U.S. NAVY, ACTIVE DUTY, HONORABLY DISCHARGED:
AVIATION METEOROLOGY: FLEET WEATHER CENTRAL,
NAS NORFOLK, VA; USS AMERICA CVN-66

• LICENSING AND ACADEMIC BACKGROUND:
N.A.S.D. & S.E.C.:
SERIES 24, November 1987
SERIES 7, November 1983
SERIES 63, December 1983

ASSOCIATE MEMBER:
Association of Certified Fraud Examiners (2003)

MERCYHURST COLLEGE:
Master of Science, 2002
Administration of Justice

National Criminal Justice Honor Society (April 2001)

PENN STATE UNIVERSITY:
Paralegal Certificate, 1998

PENN STATE UNIVERSITY:
B.A. Political Science, 1978

• PUBLISHED MATERIAL:
‘Elite Power and Capital Markets’:
Master of Science Thesis identifying a topology of deviant financial activities that include:
Political-Financial, Entity-Financial, and White-Collar (criminal) Financial Activities.

These activities illustrate political deviance evolution, involving: wealth, access, knowledge, obfuscation, and denial.

‘Pennsearch’:
A description of a portfolio/asset allocation and efficient frontier analysis system based on the client’s desired rate of return, the risk level, and various measurement standards used to evaluate the portfolio investment performance.

……………………………………………………………………………….

(6): EXHIBIT “D”: List of documents submitted with the Letter of Notification and related papers addressed to the Pennsylvania Department of State and sent by facsimile and US Mail on 9th March 2010. The documents listed here are not displayed, but the Editor holds paper copies of each of them on file. [Note: When ongoing work on our upgraded website is complete, we will be able to display such documents: but the Editor was unwilling to proceed with the revised website, which was meant to have been complete by January, without further modifications, which are in hand].

D-01: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 [falsely] identifying SALVATORE R DEFRANCESCO as SECRETARY of Pennsylvania Investments, Inc.

D-02: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 indication that NO AMENDMENT OF ARTICLES WAS SUBMITTED TO THE DEPT. OF STATE AUTHORIZING CHANGE OF OFFICERS.

D-03: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/9/2009.

D-04: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2009.

D-05: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/18/2008.

D-06: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/22/2008

D-07: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/22/2008.

D-08: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/15/2008.

D-09: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/15/2008.

D-10: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/27/2008.

D-11: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/27/2008.

D-12: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 10/1/2006.

D-13: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 4/6/2005.

NOTE: ON REQUEST, THE EDITOR WILL FAX COPIES OF THE DOCUMENTS LISTED BELOW, PROVING THE FRAUD, TO APPLICANTS WHO SEND US AN EMAIL REQUESTING THEM.

• Please press CONTACT US in the Red Box below, which sends the Editor an email. You MUST include your full coordinates, including of course your fax number. We will NOT oblige applicants for this add-on who withhold any detail of their coordinates (name, address, telephone number, proper identity: not a pseudonym, etc): if we discern that any detail in the coordinates does not ring true, we will not respond.

The documents that will be forwarded by fax are as follows:

THE PENNSYLVANIA FRAUD:
SPECIAL ADD-ON FAX: PAGE ONE:
D-01: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 [falsely] identifying SALVATORE R DEFRANCESCO as SECRETARY of Pennsylvania Investments, Inc. This member of the US ‘Italian community’ IS A CRIMINAL IMPOSTOR.

THE PENNSYLVANIA FRAUD:
SPECIAL ADD-ON FAX: PAGE TWO
D-02: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 indicating that NO AMENDMENT OF ARTICLES HAD BEEN SUBMITTED TO THE DEPT. OF STATE AUTHORIZING CHANGE OF OFFICERS.

THE PENNSYLVANIA FRAUD:
SPECIAL ADD-ON FAX: PAGE THREE
D-03: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/9/2009, showing Michael C. Cottrell as President but OMITTING his earlier designation as SECRETARY, despite the fact that NO AMENDMENT OF ARTICLES HAD BEEN SUBMITTED TO THE DEPT. OF STATE AUTHORIZING CHANGE OF OFFICERS.

THE PENNSYLVANIA FRAUD:
SPECIAL ADD-ON FAX: PAGE FOUR
NEW: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/10.2010, taken at 2:02pm EST, showing that the impostor SALVATORE R. DEFRANCESCO as SECRETARY of Pennsylvania Investments, Inc., had been removed from the screen.

(7) APPENDIX:
The following document was not included in the urgent fax sent by Mr Cottrell dated 9th March 2010 to the Pennsylvania Department of State but is included herewith for reference:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

16 NOVEMBER 2005

CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION

I hereby certify that at a meeting of the Board of Directors of Pennsylvania Investments, Inc., a corporation organized and existing under and by virtue of the laws of the State of Pennsylvania, held on the 16th day of November 2005 at which said meeting a quorum was present and acting throughout, the following resolutions were adopted and ever since have been and now are in full force and effect:

RESOLVED,
that US Dollar account(s) be established at Morgan Stanley & Co. Incorporated located at 1221 Avenue of the Americas, New York, New York 10020.

RESOLVED,
that Michael C. Cottrell, M.S., as President and Secretary, is hereby empowered with full legal authority to sign any necessary documents to open and conduct business within said account(s) on behalf of this Corporation;

FURTHER RESOLVED, that Michael C. Cottrell, M.S., is hereby granted authority to make, execute, and deliver, any and all written instructions necessary or proper to effectuate the authority hereby conferred to sign any and all necessary documents required to execute instructions regarding activities within said account(s).

IN WITNESS WHEREOF, I have hereunto set my signature for said corporation this 16th day of November, 2005.

[Signed]
Michael C. Cottrell
President and Secretary
Date: 11-16-2005

[Signed]
Diane R Bertolini-Cottrell, B.A., M.A.
Shareholder
Date: 11-16-2005.

• 20TH MARCH 2010: ANOTHER CAVALIER DIVERSIONARY ATTACK ON THE EDITOR
We understand that the notoriously cavalier CIA/FBI/DVD disinformation and fabrication operative, Thomas Heneghan, who specialises in diversionary agitation and propaganda rather than informing readers objectively, has published a further gratuitous attack on the Editor of this service, citing International Currency Review as his source. That’s odd, because the issue he cites doesn’t exist.

International Currency Review, Volume 35, Numbers 1 & 2 is on machine for the rest of March and so has not been published yet. It will be distributed worldwide in April 2010.

Since this notorious US agitprop operative cannot even be bothered to get his citations right, his prognostications and distortions retain as little credibility as the fake ‘Principality of Snake Hill’, Australia, which his client, Mr Wanta, is desperately perpetuating in order to sustain his creaking false credentials as ‘Ambassador’.

As this fake ‘Principality’ does not exist, no State Department or United Nations authentication of Wanta’s fraudulent Ambassadorship for the Principality of Snake Hill to the United States exists, either. On 20th September 2009 and in subsequent reports, we demonstrated before the whole world that ‘The Principality of Snake Hill’ is fraudulent. Therefore, Heneghan and Wanta must be suffering from an advanced form of mental disease, insisting that black is white, lies are the truth and vice versa, which is what people who lie all their lives wind up doing as they go mad.

For the record, and for the n’th time, here is the irrefutable proof that The Principality of Snake
Hill, Australia, is a crude fabrication (using a Washington, DC (202) number supplied for Wanta’s misuse by the French Embassy when M. Levitte, now President Sarkozy’s intelligence adviser in Paris, was French Ambassador to the United States. France covers for Germany under the Treaty of the Elysee [January 1963], providing DVD ‘Black’ operatives with cover). Ms Brenda Farrell of the Australian Embassy, Dublin, responded to our Irish associate, Richard Sharpe, as indicated in the segment reproduced from our report dated 20th September 2009 [see Archive] below:

‘PRINCIPALITY OF SNAKE HILL DOES NOT EXIST’: AUSTRALIAN EMBASSY, DUBLIN
On Wednesday 23rd September 2009, our Irish friend and associate, Mr Richard Sharpe, obtained independent confirmation from Ms. Brenda Farrell, of the Australian Embassy in Dublin, that ‘The Principality of Snake Hill’ does not exist, thereby reconfirming that the entire ‘Snake Hill’ operation is, as we explained in exhaustive detail below [i.e., in the report of 20 September], FRAUDULENT.

• This definitively destroys the bona fides and reputations of the poseurs and serial deception operatives exposed in this report, and should terminate the destructive activities of these people once and for all. They are FINISHED. They have been CAUGHT OUT. Before the whole world.

Forwarded message
From: <richardsharpe@eircom.net>
Date: Wed, Sep 23, 2009 at 12:25 PM
Subject: Fwd: Principality of Snake Hill [SEC=UNCLASSIFIED]
To: mrrichardsharpe <mrrichardsharpe@gmail.com>

richardsharpe@eircom.net wrote:
Many thanks for your timely response.

Regards
Richard

“Austremb Dublin” <Austremb.Dublin@dfat.gov.au> wrote:

Dear Mr Sharpe,

Thank you for your email.

There is no principality in Australia.

Kind regards

Australian Embassy
Dublin
Tel: +353 (0) 1 664 5300
Fax: +353 (0) 1 678 5185

richardsharpe@eircom.net

A reminder of just how cavalier the self-discrediting Heneghan, who opened bank accounts for al-Qaeda-funding Marvelous Investments Limited on behalf of Wanta (who, being a felon, cannot open or own any bank account) is with his fabricated facts, followed the foregoing definitive debunking of the ‘Principality of Snake Hill’ deception which Wanta is perpetuating in order to sustain his own mental delusion that he is an Ambassador, which is not the case:

THE EDITOR REMAINS IN NEW YORK
AND DID NOT ‘FLEE THE UNITED STATES’
The fantasmogorical allegation by a notorious US disinformation operative exposed in this report [Heneghan], that the Editor of this service fled the United States on Friday 18th September in order to escape arrest by the US Marshals Service, is inconsistent with the actual fact that the Editor is working ‘as we speak’ in his New York City office premises [as of 23rd September 2009*].

There is no need to labour the point that, given this stupid invention, none of the dogmatic statements that this notorious disinformation operative posts can ever command respect.

The fabrications of this and other notorious US disinformation artists have long since destroyed their ‘credibility’, making them a laughing stock and suggesting that the CIA disinformation apparat needs to review its operations and close many of them down.

• Their counterintelligence tradecraft seems to have become permanently counterproductive.

* The email from Ms Brenda Farrel of the Australian Embassy, Dublin, was sent and received on 23rd September. Our original report is dated 20th September, and the exposure of The Principality of Snake Hill as a fraud and a fabrication was confirmed in the Update of 23rd September 2009.

………………………………………………………………

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

Therefore, you should be advised that the GENUINE ORIGINAL REPORT is, by obvious definition, accessible ONLY FROM THIS WEBSITE. If you come across an article elsewhere that is attributed to the Editor of this service, you should refer to the ORIGINAL ARTICLE HERE and you should bear in mind that the illegally duplicated article may contain text that was NOT written by the Editor of this service, but which was inserted for malicious purposes by counterintelligence.

Likewise, although we haven’t yet had time to elaborate this issue, we have taken drastic steps around the world to close off the malicious piracy of our books. One technique used by several disreputable sites (in the United States, the Netherlands and Switzerland) is to copy our title(s) and (a) to display an image of the front cover WITHOUT THE ISBN DATA at the top of the cover; and (b) to DELETE THE COPYRIGHT PAGE. In so doing, the criminal pirates proclaimed that they knew perfectly well that they were/are engaged in theft and can be prosecuted for stealing copyright.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

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• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

• It is suitable for PC’s but not for Mac computers. As with all such programs, the License is renewable at a modest fee annually. This is done on-line in the usual way [with the supplier direct].

SECURITISATION IS 100% ILLEGAL UNDER U.S. LEGISLATION

cropped-chrisstory

WHAT THE OFFICIAL RACKETEERS ARE DESPERATELY COVERING UP

Wednesday 10 March 2010 19:30

EAVESDROPPING AND CONSTANT AMERICAN TELEPHONE HARASSMENT
CONFIRM THAT THIS SERVICE IS RIGHT AT THE EPICENTRE OF THIS CRISIS

• REPORTS UPDATE: It has been decided to post this report, containing the ‘securitisation is illegal’ data, which was nearing completion when the fraud discovered on Monday and Tuesday, erupted. Our report on this monumental fraud (which we will call, for shorthand purposes, ‘the Pennsylvania Fraud’), will follow and will probably be alternated with the present analysis. The Editor has now obtained the underlying documentation on the Pennsylvania Fraud, and will be working on this exposure report immediately (so much for his regular publishing work schedule).

• MAJOR UPDATE, 12TH MARCH 2010:

OBAMA, GEITHNER AND THE D.C MEETING ON SECURITISATION
As elaborated below, securitisation in the United States is illegal and contrary to public policy.

All securitised contracts are void not least because they were created to facilitate one or more criminal acts, as explained in this presentation. By definition and US law, all contracts created to accommodate an illegal act are void.

So, what is happening in Washington, DC, ‘as we speak’? Why, a high-level meeting has been taking place to examine how SECURITISATION of FRNs can be used to dig the Obama Administration out of the void it has created by its bovine criminality and stupidity.

The prime movers of this demented, ILLEGAL activity are President Obama and Timothy Geithner, US Treasury Secretary, backed by other purblind officials such as Larry Summers. No doubt the careful timing of the publication of our exposure of securitisation here as completely illegal and contrary to the Rule of Law, will have given the underlings of these perpetrators some concern. Obama’s World Court-granted immunity from prosecution does not extend to domestic felonies.

UNITED KINGDOM: THE LAW OF PROPERTY ACT, 1925
In the United Kingdom, The Law of Property Act, 1925, particularly Section 136 which deals with assignments, makes it crystal clear that alienation by a mortgage provider of all assets that have been assigned without notice having been issued to, or permission granted by, the debtor, is void and fraudulent. Therefore, ALL SECURITISATION OPERATIONS BY FINANCIAL INSTITUTIONS WITHIN THE BRITISH JURISDICTION WHICH HAVE NOT BEEN EXPLICITLY SANCTIONED IN ADVANCE BY THE MORTGAGOR, with the mortgagor fully aware of the situation, are void.

Northern Rock and all financial entities engaged in assigning, on-selling, trading and benefiting financially from such activity without notice to or the prior consent of the mortgagor, are engaged in CRIMINAL ACTIVITY. These institutions have accordingly been trading worthless paper between themselves within a fraudulent financial carousel, as repeatedly stated in these reports.

The Directors of these institutions should be investigated and prosecuted by the UK authorities: and if this does not happen, we will keep asking why not. No doubt Lord Myners [see Appendix below], the ‘City Minister’, knows the score perfectly well, and is being ‘economical with the truth’. In which case he is a co-conspirator in this criminality.

The bottom line here is that it is possible in the British jurisdiction to stop anyone who holds a contract for debt (the creditor) from passing that debt to a third party (debt collector) if they have not complied fully with The Law of Property Act 1925 and to hold them to the original contract and, therefore, to their stringent obligations to the debtor under the Consumer Credit Act, 1974. If they do not, the contract is toast and they cannot collect or sue for recovery of the debt. And the debtor is at liberty to counterclaim even if they do sue the debtor: which is another reason why they don’t do this. For this reason, no one talks about the The Law of Property Act, 1925. They will now!

http://www.opsi.gov.uk/RevisedStatutes/Acts/ukpga/1925/cukpga_19250020_en_1

136 Legal assignments of things in action:
(1): Any absolute assignment by writing under the hand of the assignor (not purporting to be by
way of charge only) of any debt or other legal thing in action, OF WHICH EXPRESS NOTICE IN WRITING HAS BEEN GIVEN TO THE DEBTOR, trustee or other person from whom the assignor would have been entitled to claim such debt or thing in action, is effectual in law (subject to equities having priority over the right of the assignee) to pass and transfer from the date of such notice:
(a) the legal right to such debt or thing in action;
(b) all legal and other remedies for the same; and
(c) the power to give a good discharge for the same without the concurrence of the assignor:

Provided that, if the debtor, trustee or other person liable
in respect of such debt or thing in action has notice:
(a) that the assignment is disputed by the assignor or any person claiming under him; or
(b) of any other opposing or conflicting claims to such debt or thing in action; he may, if he thinks fit, either call upon the persons making claim thereto to interplead concerning the same, or pay the debt or other thing in action into court under the provisions of the Trustee Act, 1925.

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• ADVERTISEMENT: Details of the INTERNET SECURITY SOLUTION software offered by this service in conjunction with a donation can be accessed immediately: See the Home Page World Reports Limited serials catalogue by clicking World Reports Limited and scrolling to foot of page. Scroll to the foot of THIS page to read our extended Ad. for the INTERNET SECURITY SOLUTION.

Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

• UPDATES, 11TH MARCH: The outline report on the Northern Rock case, in which the bank lied in writing to the paid-up mortgagor whose Title Deeds the bank said had been ‘de-materialised’ and held on to for FIVE YEARS AFTER THE MORTGAGE HAD BEEN PAID OFF, and yet finally disgorged after five years (during which time the householder could not sell her home), has triggered much interest. So we have added some new data beneath the outline Northern Rock report below.

• Under US whistleblower legislation, the whistleblower is entitled to a proportion of the fraud uncovered, a point made to the Editor this morning, too. No doubt this will likewise help to focus the serpentine minds of the criminal operatives being exposed. 15% to 30% of $4.2 trillion, plus $6.2 trillion, plus multiple billions, is a lot of dosh. In fact 15% of $10.4 trillion is $1.56 trillion, and 30% is $3.12 trillion. OK, the percentage is usually 10%, applicable only after conviction of course. So make that $1.04 trillion, then. Such awards are naturally available only to US taxpayers: please see the next report, on The Philadelphia Fraud, identified by a US taxpayer.

• LISTENING-IN TO OUR PHONE CALLS GIVES THE GAME AWAY

• WHY DO THEY LISTEN-IN TO EVERY WORD? WE’VE COMMITTED NO CRIMES

• WE’VE BEEN HARASSED DAILY WITH OBSCENE U.S. CALLS SINCE FEBRUARY 2008

• ‘MR STORY IS A PROBLEM FOR THEM BUT THEY CAN HANDLE IT PROVIDED
WHAT HE EXPOSES IS BLOCKED FROM THE ‘MAINSTREAM’’

• AS WE’VE COMMITTED NO CRIMES, AUTHORITIES SHOULD SUPPORT WHAT WE’RE
DOING TO HELP THEM DO THE JOB THEY ARE TOO CORRUPT TO DO UNAIDED

• THEY FALL OVER THEMSELVES TO LISTEN-IN, SO THEY CAN WARN
THE GUTLESS ‘MAINSTREAM’ OUTLETS TO BLOCK OUR EXPOSURES

• ALL THEY DO IS INFORM US BY THEIR SORDID BEHAVIOUR THAT WE ARE RIGHT
‘ON MESSAGE’ – WHICH IS BEYOND STUPID OF THEM, WHEN YOU THINK ABOUT IT

• CRIMINALISED INTELLIGENCE POWER INCOMPATIBLE WITH SOUND GOVERNANCE

• RACKETEERS CONSTANTLY CONFRONTED WITH THE RULE OF LAW

• COWARDLY CONTROLLED NEWSPAPERS WHICH HAVE IGNORED CIMKM/CMKX

• THE DAILY TELEGRAPH: A CONTROLLED OUTLET FOR MI-6

• MI-6 ‘INTEND TO TAKE MR CHRISTOPHER STORY OUT’

• BRITISH INTELLIGENCE APPEARS TO BE BEHAVING TREACHEROUSLY, AS USUAL

• ‘MAINSTREAM’ NEWSPAPERS REVEALING THEMSELVES
TO BE CO-CONSPIRATORS IN COVERING UP THE RACKETEERING

• WHY CONFINING EXPOSURES TO THIS WEBSITE HAS BEEN
COUNTERPRODUCTIVE FROM THE RACKETEERS’ PERSPECTIVE

• OUR EXPOSURE MODUS OPERANDI: ‘WALKING IN A STRAIGHT LINE’

• QUEEN’S GOLD THEFT STILL NOT RECTIFIED:
SO, KICK THE U.S. AMBASSADOR OUT OF LONDON

• STEALING OF $4.2 TRILLION TAX MONEY ON 31ST DECEMBER 2009
STILL NOT RECTIFIED: SO MASSIVE CRIMES HAVE BEEN COMMITTED

• FISH ROTS FROM THE STINKING HEAD: WORLD COURT IMMUNITY DEMANDED
AND SCANDALOUSLY OBTAINED BY THE COLLECTIVE OF CORRUPT U.S. PRESIDENTS

• GORBACHEV MANIPULATING DEVELOPMENTS FROM HIS WING IN THE KREMLIN, AS BEFORE

• GORBACHEV, BUSH, KOHL, ACKERMANN: RACKETEERING PARTNERS IN DEUTSCHE AG.

• WANTA: THE COURIER BETWEEN BUSH SENIOR AND GORBACHEV

• WANTA’S ‘REAGAN’S JUNK-YARD DOG’ DIVERSION

• WANTA KNEW ABOUT 9/11 IN ADVANCE, LIKE VREELAND

• FRANCE COVERS FOR GERMANY UNDER TREATY OF THE ELYSEE

• FRAUDULENT WANTA ‘SNAKE HILL’ WEBSITE’S GERMAN CONNECTIONS

• CIA/DVD PRACTICE OF EXPLOITING AND STEALING OUTSIDE EXPERTISE

• THE AMERICAN INTELLIGENCE POWER WHICH HAS USURPED
THE GOVERNMENT DANCES TO THE TUNE OF FOREIGN POWERS

• WORLD REVOLUTION RACKETEERING OFFENSIVE

• ‘WALKING IN A STRAIGHT LINE’ WILL EXPOSE THE DECEPTIONS

• COTTRELL THREATENS TO SNATCH AWAY THE RACKETEERS’ COVER,
THROWING THEM INTO A MAD PANIC. THIS WAS NOT ANTICIPATED.

• THE TWO MI-6 OPERATIVES WITH THE QUEEN’S SIGNATURE:
ARE THEY WORKING FOR, OR ARE THEY DOUBLE-CROSSING THE QUEEN?

• WHAT HAS HAPPENED TO THE CHINESE CURRENCY BOXES?

• GREEK DEPUTY PRIME MINISTER EQUATES NAZI GERMANY
WITH CHANCELLOR MERKEL’S STASI GERMANY

• WHAT DO THE FOUR RACKETEERS HAVE IN COMMON
WITH OTHER WELL-KNOWN DECEASED AND LIVING OPERATIVES?

• ‘FORECLOSURE ANALYSIS’ PARA-LEGAL SERVICES SPRINGING UP IN THE UNITED STATES

• NORTHERN ROCK’S LIES TO A FORMER MORTGAGOR MASKING
THE FACT THAT HER TITLE DEEDS WERE ‘OTHERWISE ENGAGED’

• SECURITISATION IS A KEY ELEMENT OF A REVOLUTIONARY ATTACK ON PRIVATE PROPERTY

• YES, A RUTHLESS, SYSTEMATIC ATTACK ON PRIVATE PROPERTY

• LOWEST COMMON DENOMINATOR SCAMS STILL ‘OUT THERE’

• WHY SECURITISATION IS ILLEGAL UNDER U.S. AND COMMON LAW

• SECURITISATION ENTAILS GROSS VIOLATIONS OF R.I.C.O. STATUTES

• NOTWITHSTANDING THAT IT’S ILLEGAL, U.S. AUTHORITIES
CONTINUE TO PROMOTE AND ENCOURAGE SECURITISATION

• SUMMARY FORENSIC ANALYSIS PROVING THE ILLEGALITY OF SECURITISATION

• SECURITISATION: A COVER FOR TAX EVASION

• SECURITISATION VIOLATES THE U.S BANKRUPTCY CODE
AND THEREFORE ALSO CONTRAVENES PUBLIC POLICY

• SECURITISATION VIOLATES FEDERAL R.I.C.O. STATUTES

• SECURITISATION ALSO VIOLATES U.S. ANTITRUST LEGISLATION

• There is also the tenet of English law of contract which governs US law, too, that any contract entered into in order to commit a crime is (automatically) void. So what exactly do the American and British Governments think they are doing ‘accommodating’ securitisation, given this principle?

• THE ‘PHILIPPINES EXCEPTION’ BURIED IN THE CLAYTON ACT

• FANNIE MAE, FREDDIE MAC ENGAGED IN FURTHER ILLEGAL SECURITISATION:
RE-SECURITISING ALREADY SECURITISED ‘DUD’ ASSETS TO DUMP BACK ON THE BANKS

• GARY GENSLER IS NOT AS OPPOSED TO FRAUDULENT FINANCE AS HE SEEMS

• ‘GREATER TRANSPARENCY’ IS EVIDENTLY ALL GENSLER’S AFTER

• INVESTORS’ MONEY USED TO REMUNERATE WALL STREET

•’THE MONEY YOU MAKE BY MISUSING MY MONEY
IS MY MONEY‘ – I.E., THE HOME OWNER’S

• A PERVERSE AND ARROGANT OFFICIAL INTENT TO CONTINUE VIOLATING U.S. LAW

• THE DEPOSITORY TRUST & CLEARING CORPORATION IS IN OVERDRIVE

• THE FEDERAL RESERVE HAS BECOME
THE BACK-STOP GUARANTOR OF CREDIT DEFAULT SWAPS

• STAGE SET FOR AN UNIMAGINABLE (AVOIDABLE)
CATASTROPHE: A DEATH-WISH

• THE DTCC’S OBLIGATIONS WAREHOUSE SERVICE

• GREATER TRANSPARENCY WON’T ELIMINATE SYSTEMIC RISK,
OR PREVENT A CONFIDENCE CRISIS

• SO, WHERE ARE YOU, MR HOLDER?

• APPENDIX: LORD MYNERS SAYS THERE MUST BE PENALTIES FOR BANK EXCESSES

• POSTSCRIPT: STIGLITZ: ‘THE AMERICAN BANKING SYSTEM IS CORRUPT’

NEW REPORT STARTS HERE:

LISTENING-IN TO OUR PHONE CALLS GIVES THE GAME AWAY
If we go back to square one and start asking basic questions about our experiences with these exposures, interesting answers emerge. The first question that arises is this:

• Why is it that so many intelligence eavesdroppers listen to every domestic and especially international telephone call that we make and receive?

After all, the Editor has not stolen any money, has not murdered anyone, has not abducted anyone else’s child, is not a Nazi war criminal, is not engaged in espionage, is not an agent of a foreign power, has not defrauded anyone, and is not engaged in criminal activity in any shape or form. And neither, for instance, is Michael C. Cottrell, B.A., M.S., let alone Mr A. Clifton Hodges, the Attorney for the CMKM/CMKX victims, whom the Editor speaks to quite frequently on the transatlantic line.

Is it that these eager eavesdroppers like the sound of the Editor’s voice? Do they seek knowledge from us that they could not obtain from other sources? Are we the fount of all known wisdom in the universe? What do we know and say that others don’t know and can’t say, which these decadent snoopers find so electrifying in our conversations? There must be SOME explanation for their manic preoccupation with what we have to say in our private communications.

WHY DO THEY LISTEN-IN TO EVERY WORD? WE’VE COMMITTED NO CRIMES
Because given that we have committed no crimes, and neither are we patriots terrorists, there HAS to be a coherent reason why these despicable little UK, US and foreign snooping apparatchiks rush to pick up their earpieces every time we begin a conversation – knocking over their plastic coffee cups and making a mess of their work spaces in their frantic anxiety to garner every precious nugget that falls from our lips. One can hear these scum clicking in one after the other.

Oh, the red light’s gone on, we’ve got to record what Story and his correspondents are saying. Why do they need to fall over themselves to find out what we discuss, as we have committed no crimes and are not terrorists?

And why are they routinely engaged in issuing threats against the Editor of this service, and also against Mr Cottrell, and harassing both on a routine basis – Mr Cottrell as recently as 6th March? The Editor, as previously reported, has received daily voicemail messages from a controlled MK-Ultra-style ‘Black’ US DVD nutcase via Skype (Washington, DC) since the Wanta ‘switch’ in February 2008: on some days, we have counted as many as nine such demented harassment calls.

WE’VE BEEN HARASSED DAILY WITH OBSCENE U.S. CALLS SINCE FEBRUARY 2008
These crude harassment calls, which as indicated have been continuing since the Wanta ‘switch’ in 2008, reminiscent of a DVD operation (because of their Bavarian Illuminati-style ‘Black’ content and because Germans never know when to stop, and when they have been defeated) have no effect on the Editor’s work, mind or intentions: yet some ignorant cadre inside the US component of the CIA/DVD revolutionary structures is employed, for money, to continue this illegal harassment.

They seem to think it will wear us down. Instead, the parties being worn down are those who are determined, despite our exposures of their iniquity, to continue their racketeering operations in defiance of the Rule of Law that they despise.

They never thought they would encounter any opposition, and they have been on the wrong foot ever since we stood up to them. Real opposition was never anticipated.

What arrogance! What right do these little malodorous eavesdropping twerps have to intercept our telecommunications and to record what we have to say – sending, we understand, transcripts of our coveted exchanges to the White House?

What right do the National Security Agency, GCHQ, French, Israeli and German intelligence have to listen-in to our phone calls? Are we at the apex of human understanding? Do we dispense pearls of insight and wisdom so penetrating that that these little creeps cannot develop them from other sources? Now let’s broaden our enquiry further, leading in to the next question.

‘MR STORY IS A PROBLEM FOR THEM BUT THEY CAN HANDLE IT PROVIDED
WHAT HE EXPOSES IS BLOCKED FROM THE ‘MAINSTREAM’’
As displayed at the top of our report dated 2nd March 2010, Mr A. Clifton Hodges, Attorney for the 50,000 CMKM/CMKX scamees (whose CMKM stock was exploited when 2.25 trillion PHANTOM SHARES were floated via an illegal platform from WITHIN the Securities and Exchange Commission itself, under the criminal George W. Bush Administration (between June 2004 and October 2005)), was informed by an inside source that ‘Christopher Story is a problem for them, but they think they can handle it PROVIDED that what he exposes does not spill over into the ‘mainstream’ media’ [see our report dated 2nd March 2010].

The source of this information was a US official whose job it is to ENFORCE THE LAW, not to connive in violating it for purposes of expediency.

AS WE’VE COMMITTED NO CRIMES, AUTHORITIES SHOULD SUPPORT WHAT WE’RE
DOING TO HELP THEM DO THE JOB THEY ARE TOO CORRUPT TO DO UNAIDED
One would have thought that since what we are exposing is RAMPANT RACKETEERING AND CRIMINALITY WITHIN THE U.S. GOVERNMENT STRUCTURES, as well as inside the corrupted financial institutions, Fannie Mae, Freddie Mac and the criminal enterprise known as the Central Intelligence Agency, such US operatives and officials would be only too keen on encouraging the broad dissemination of information liable to lead to the indictment and arrest of the racketeers and criminals that are being protected within and close to the Washington Beltway.

But that is not the case! On the contrary, this and other ‘inside’ sources appear to have been engaged in a systematic operation to use Story, Cottrell and now Hodges as a foil and barrier, behind which to plan double-dealing and continued financial deception, and to deceive at least the first two named, in order – as with the original Wanta deception – to preserve a smokescreen as cover for the pursuit of racketeering ‘business as usual’ in general.

The intention here has been to try to conduct the US Dollar Refunding themselves, with FRNs – which will lead very rapidly to a catastrophe, so that the racketeers below the radar can then, so they imagine, unscramble and release their accumulated and worthless nominal ‘derivative’ values from off-balance sheet and offshore sources, for deployment (as is currently happening to some extent) for the Fascist-style purpose of snapping up real assets at firesale prices.

• That’s the goal of the World Revolution.

THEY FALL OVER THEMSELVES TO LISTEN-IN, SO THEY CAN WARN
THE GUTLESS ‘MAINSTREAM’ OUTLETS TO BLOCK OUR EXPOSURES
So, on the one hand, the eavesdroppers knock over their dirty plastic coffee cups as they fall over themselves to listen to and record what we have to say on the telephone; while on the other hand, they appear to be seeing to it that what we have to discuss, and what the Editor is exposing, never reaches beyond the in-house intelligence censorship ‘pods’ sitting inside all press rooms of the controlled ‘mainstream’ media, prompting the next question:

• Why are these manipulators so anxious to hear what we have to say and simultaneously so determined that what we have to say and expose never hits the ‘mainstream’?

After all, given that we have committed no crimes and are not terrorists, and the governments which these despicable little eavesdropping worms serve, supposedly believe in ‘democracy’ and ‘free speech’, don’t you know, it should surely follow that if the eavesdroppers consider that what we have to say is so superb and priceless, their governments would all be awfully keen that our invaluable information and insights should be spread extensively abroad so that the sum of human understanding is enhanced, to the benefit of all, the governments included, n’est-ce-pas?

ALL THEY DO IS INFORM US BY THEIR SORDID BEHAVIOUR THAT WE ARE RIGHT
‘ON MESSAGE’ – WHICH IS BEYOND STUPID OF THEM, WHEN YOU THINK ABOUT IT
There is of course one benefit to all this – namely, that by listening in to all our telecommunications so routinely and conspicuously, and by engaging in such persistent and futile non-stop telephone harassment (which is recorded by us for future legal reference, not listened to, and zapped), the criminal intelligence cadres concerned are signalling to us LOUD AND CLEAR that we are indeed being highly effective: otherwise they wouldn’t be wasting their time and financial resources in such underhand and counterproductive activities, would they.

So, as we have previously pointed out, these intelligence and masonic cadres are indeed plain STUPID! By their behaviour, they are telling us that we’re being effective, making a difference, and that we’re getting in the way of their racketeering operations by exposing them (as you will see from the next post!). So the confused, panicking fools are telling us all we need to know. It’s neat!

Obviously, there’s something wrong here: and one doesn’t need a first class degree in logic to be able to discern the problem. We haven’t committed any crimes and are not terrorists. Why, then, do these authorities compete among themselves not only to listen to and record what we have to say, but also to prevent the ‘mainstream’ from picking up our insights and assessments?

• ANSWER: Because the governments themselves are engaged in the very financial terrorist criminality and racketeering that we are exposing, and are terrified that the exposures will lead to what from their perspectives might become intolerable ‘unintended consequences’, with rolling outcomes that they couldn’t control. And this is in fact what is going to happen, sooner or later.

CRIMINALISED INTELLIGENCE POWER INCOMPATIBLE WITH SOUND GOVERNANCE
At this point we need to insert an obvious but almost always overlooked anomaly arising from the fact, mentioned in earlier reports, that the coexistence of criminalised, racketeering intelligence powers enjoying carte blanche to embezzle public funds and break the law (and to indulge in petty dirty tricks and bearing false witness such as those involving Gordon Thomas on behalf of MI-6: see Note (1) below), with a system supposedly based on the Rule of Law, is INCOMPATIBLE WITH SOUND GOVERNANCE – let alone with the supposed supremacy of legality.

If they prefer a system without the Rule of Law, why bother any longer with Congress and routinely rigged elections which make a mockery of democracy and just confirm that the US authorities, who hypocritically preach democracy to the Rest of the World, are indistinguishable from corrupt ‘post’-Soviet régimes, where ballot boxes (as in Ireland) are brought pre-stuffed to the polling stations?

Because the criminalised intelligence powers and those serving them:

• Exhibit open contempt for the Rule of Law, but exploit it on an open-ended basis when it suits their own nefarious purposes.

• Seek to avoid leaving traces which would contravene the law when committing their endless crimes, and yet employ every delaying and obfuscation device known to Satan, to save their own skins whenever they perceive they are themselves in danger of the full wrath of legal enforcement.

• Have failed actually to ABOLISH the Rule of Law which they exploit, injure and contravene 24/7 in their pursuit of their ‘Black’ and illegal objectives – which they imagine are ‘allowed’ in the United States thanks to the cover that they assume to be provided under the National Security Act of 1947 et seq. (the criminals’ charter).

RACKETEERS CONSTANTLY CONFRONTED WITH THE RULE OF LAW
This sick mindset was further encouraged in the United States by such ill-advised liberties as President Reagan’s counterproductive Executive Order 12333 of 1981, which catastrophically authorised US intelligence operatives to form corporations of which the operatives themselves could own the shares and which would then ostensibly ‘contract’ with the compartmentalised components of the Intelligence Power and other US agencies to perform tasks required by the Executive Branch, for which the controlling Intelligence Power acts as the clandestine arm.

Obviously, to contract with intelligence operatives who are required by Statute to deny that they are intelligence operatives and therefore to lie for a living, is equivalent to entering into a contract with the fox to guard the chicken house. Significantly, Gorbachëv’s Politburo copied this crass 1981 Reagan formula in 1990.

Therefore, while abusing and contravening the despised Rule of Law, these amoral US officials are constantly being confronted by it. Despite their disdain of the Rule of Law, it stands in their way, and they keep bumping into it, even though they do their best all the time to corrupt it.

This ironical state of affairs provides, of course, another convenient underlying, ongoing dialectic (Thesis, Antithesis) – ripe for exploitation: but in this particular case, the dialectic is a ‘given’, not an artificial construct. In other words, short of an actual criminal dictatorship, there’s not a lot they can do to alleviate their situation here other than to continue compromising, abusing and eroding the Rule of Law, through bribery and corruption.

We have established already that: the criminal governments themselves are engaged in the very racketeering criminality that we are having to expose, given not least that, as reviewed below, ALL SECURITISATION IS ILLEGAL UNDER U.S. AND COMMON LAW – and are terrified that the endless exposures will lead to what, from their perspectives, might become truly intolerable ‘unintended consequences’, with rolling outcomes that they couldn’t control.

COWARDLY CONTROLLED NEWSPAPERS WHICH HAVE IGNORED CIMKM/CMKX
Because of this cowardice on the penetrated governments’ part, the newspapers listed below have been officially prevented, to our own certain updated knowledge [10th March], from reporting even the eminently reportable CMKM/CMKX case, in which payment of $3.87 trillion is demanded from the Securities and Exchange Commission and from certain of its current and former officials, given the unprecedented scandal of the S.E.C. having floated 2.25 trillion PHANTOM SHARES from a platform operated beneath the cover of the Securities and Exchange Commission itself (2).

• Note: Page B1 of the New York Edition of The New York Times dated 12th March carries the first ‘mainstream’ report of the CMKM/CMKX case, twisted to ignore the essence of the case and to suggest, contrary to the truth of the matter, that this is just another instance of the phenomenon that scamees can never admit that they have been scammed. Naturally, one did not expect such a newspaper to report the truth, which can be established from the Complaint [see our report dated 9th January (over two months prior to The New York Times’ article)]. No, the newspaper found a spurious, populist angle which has nothing to do with the substance of the Complaint against the S.E.C., indicating how nervous the US Establishment is over these developments.

Any ‘mainstream’ newspaper that was fulfilling its responsibilities objectively as a conscientious component of the Fourth Estate would have jumped on this story long ago. After all, we published the complete text of the Complaint within hours of it being filed [see our report dated 9th January 2010]. That was TWO MONTHS BACK: and so far, NONE of the ‘mainstream’ US/UK newspapers or broadcast outlets have touched this dynamite. SPECIFICALLY:

• Mr A. Clifton Hodges, Attorney for the 50,000+ CMKM/CMKX scammees, personally informed press contacts about the case, on the following media:

• The Los Angeles Times

• The Washington Post

• The Wall Street Journal

Mr Hodges received no response.

• The Editor of this service personally informed the prominent UK financial journalist Ambrose Evans-Pritchard on The Daily Telegraph, whom he has met in the past. Since The Daily Telegraph’s offices are within walking distance of our Central London office, the Editor offered to deliver a copy of the actual Summons and Complaint by hand last week.

• The Editor did not even receive the courtesy of an acknowledgment of his emails.

THE DAILY TELEGRAPH: A CONTROLLED OUTLET FOR MI-6
Notwithstanding his duplicitous behaviour in acting as an agent for MI-6 in bearing false witness against the Editor of this service in 2004, Gordon Thomas is persona grata at The Daily Telegraph, and recently published a large article in that paper on the subject of the use of British passports by Israel assassination operatives. As the Editor’s case shows, Thomas also acts as an agent for MI-6.

Therefore, The Daily Telegraph is under the thumb of MI-6, which helps to explain quite why this newspaper – which used to publish extensive op-ed. articles by the Editor of this service in the 1970s and early 1960s, until the takeover by the since disgraced and jailed corrupt globalist felon Conrad Black – has failed so far in its duty as a key member of the Fourth Estate to report (a) the biggest official corruption case to come to Court in world history and (b) the biggest and most-far-reaching exposure of government and financial institution racketeering since the world began.

MI-6 ‘INTEND TO TAKE MR CHRISTOPHER STORY OUT’
At about 10.45pm on Sunday 7th March, the Editor was informed via a transatlantic phone call that the Editor’s correspondent had been informed by an ‘inside’ source directly connected with MI-9 (MI-6) that ‘MI-6 intend to ‘take Mr Story out’’. Apparently the intention was or is to prepare one or more ‘stings’ and traps, in the hope that the Editor will fall into them, as happened once or twice before (given that, since these people only ‘do’ deception, it is almost impossible to avoid being deceived at some stage: except that the longer they drag out their cynical games, the easier it becomes to read their criminal minds and the unchanging techniques they use (the devil isn’t a great inventor)): so the deeper the discernment one eventually acquires, and the less chance do they have of pulling off a targeted dirty trick, as intended.

The Editor enquired why this evil intent should have surfaced at this late stage in the racketeering exposure proceedings: to which the answer was: ‘They want to move on by fixing things below the radar, they are furious that you have so much information, and they want to make sure you don’t publicise the outcome, especially concerning the Dollar Refunding which they have resisted so hard, when it happens’. To which the Editor responded words to the following effect: ‘Well, a gentleman’s word is his bond. They can walk across the bridge and ring our office doorbell’.

‘They wouldn’t do that. They’d sting you instead’.

Quite right: they can’t do that now, as they have squandered so many resources trying to entrap and trip the Editor up, that a ‘gentlemanly approach’ wouldn’t work now. It would probably have worked back in 2002: but not now. If you have been deceived and abused already by your own (let alone the hideous, criminalised American) intelligence services, you aren’t likely to succumb to such a ‘gentlemanly approach’. They burned their boats.

• Not very clever: but then again, as we’ve seen, these people are extraordinarily STUPID.

BRITISH INTELLIGENCE APPEARS TO BE BEHAVING TREACHEROUSLY, AS USUAL
Anyway, thanks for the heads-up – reiterated, by the way, by the faux-demented DVD ‘Black’ Psy-Ops voice who’s being paid to plague us daily since the completion of the Leo Wanta ‘switch’ in February 2008 (as revisited briefly above). So, what we have is the following devilish equation:

(1): The Editor of this service is a patriotic supporter of the nation state, is exactly what he says he is and has been for decades [see our testimonials], is viscerally opposed to the pagan, decadent, debauched World Revolution and its filthy ‘Black’ social and geopolitical detritus which is such a menace to civilisation, is a loyal subject of Her Majesty the Queen (with no other such connections whatsoever), believes (whether you like it or not) that Jesus Christ is the Lord, and is come in the flesh, and has stood up forcefully (because we have no choice, not because of any courage) to the abominations, abuses, verbal abuse and agitprop tirades, betrayals, successive threats (including seven death threats), innumerable lies and attempted ‘stings’, and the cynical exploitation by Mr Wanta of the Editor’s integrity and expertise; and has nevertheless sought to expose elements of the officially perpetrated and condoned racketeering and embezzlement of US taxpayers’ funds, and the myriad other Fraudulent Finance atrocities perpetrated with impunity under five self-acknowledged criminal Presidents of the United States.

(2): In exchange for which, conniving British intelligence cadres, according to the US ‘insider’ source whose identity is known to the Editor, are actively seeking ‘as we speak’ to ‘take Story out’ and to try, once again – à la Gordon Thomas – to discredit him.

This is to be the Editor’s reward for the serial abuse, deceit, lies, attempted ‘stings’, deceptions and other pathetic, underhand travesties, that the Editor has suffered in recent years in exposing these crimes. And these abuses, by the way, are AS NOTHING compared to what others, especially Michael C. Cottrell, have suffered at the hands of these serial thieves, racketeers and reprobate operatives over a much longer period of time.

• The Editor personally sent emails last week giving details of the CMKM/CMKX case to 14 well-known newspapers in India, Pakistan, China, Hong Kong, Malaysia and The Philippines, with the coordinates of Mr Hodges so that their journalists could check everything with the source. At the time of this posting, there had been no response.

‘MAINSTREAM’ NEWSPAPERS REVEALING THEMSELVES
TO BE CO-CONSPIRATORS IN COVERING UP THE RACKETEERING
None of this surprises us, given the above, nor does it even suggest that the Dark Forces are not in the process of being defeated. On the contrary, by cow-towing to their criminalised governments and intelligence communities, these newspapers are just allowing themselves to be tarred with the same Black Racketeering Brush that has covered the known official and financial criminalists with sticky black gunge that runs down into the sewer.

All that these media outlets are doing by ignoring these investigations is to confirm that they, too, are parties to, minded to be in favour of, and doubtless in many cases participants in, the familiar Fraudulent Finance racketeering practices that the perpetrators are trying in vain to cover up. In some US cases (known to this service), key media outlets are recipients of giant bribes paid out specifically in order to prevent them from covering these investigations.

We haven’t yet revealed the identities of the US news media concerned; but if there exists such a phenomenon as an honest journalist working for any of them, we would remind such persons of the basic reality that the bribee is actually in a stronger position than the distributor of the bribe – who won’t want to be exposed.

His bribe is presumably held in place by threats of lethal consequences, or blackmail: but these implied or actual threats are usually empty and cannot be fulfilled without entangling the source of the bribe in a cauldron of problems arising from his iniquity that he would wish to avoid.

WHY CONFINING EXPOSURES TO THIS WEBSITE HAS BEEN
COUNTERPRODUCTIVE FROM THE RACKETEERS’ PERSPECTIVE
And by adopting the strategy of trying to confine these exposures of official and financial sector racketeering to this website (even though some indications of broader coverage, with which we are associated, are ‘in the pipeline’), the US cover-up cadres have managed (counterproductively, from their disoriented perspective) to contrive that a reasonably consistent corpus of information has emerged into the public domain, as well as being captured for posterity and current research in successive issues of International Currency Review, which has official, central bank, institutional and library subscribers throughout the world – thereby precluding any possibility of the heirs of the perpetrators rewriting history so as to ‘airbrush’ this financial racketeering out of the record.

OUR EXPOSURE MODUS OPERANDI: ‘WALKING IN A STRAIGHT LINE’
Proceeding now to our modus operandi, we reiterate that our method is the straightforward one of ‘walking in a straight line’. Unlike your agents of influence and disinformation outlets – including notorious website peddlers of ‘Black Propaganda’, lies and confusion operating under Intelligence Power instructions to maximise the potential of the ‘Black’ fog of disinformation for the purpose of covering up the racketeering – our method, having done our due diligence to the extent possible, is to publish what we have learned either directly or else covered by a necessary ‘to the best of our knowledge and belief’ caution.

When we obtain information which can only be forthcoming from ‘inside’ and, very often, from dissident and double-crossed intelligence sources (because these people are always bitterly at loggerheads internally), we may publish such information ‘straight’ with no qualifications at all.

An example of this was our revelation that the late former Governor of the Bank of England, Lord ‘Eddie’ George, had been arrested and briefly jailed in July 2007. We have only recently learned, and publicised, WHY Lord George was arrested.

Lord George was seized because of his rôle in aiding, abetting and facilitating, with the criminal operative Dr Alan Greenspan, the stealing/diversion of The Queen’s gold on 29th-30th March 2007, as we reported six weeks or so later. Lord George, who died in April 2009, was instrumental in exchanging the gold for worthless pieces of ‘derivatives’ paper.

QUEEN’S GOLD THEFT STILL NOT RECTIFIED:
SO, KICK THE U.S. AMBASSADOR OUT OF LONDON
That operation represented the Bush-CIA-DVD’s biggest theft ever; AND IT STILL HASN’T BEEN RECTIFIED. If UK Governments consisted of people with conviction, knowledge and backbone, instead of the usual blackmailed, compromised and controlled psychological cases with dirty intelligence backgrounds, the American Ambassador should be ordered out of Britain, with his Embassy peremptorily closed sine die – until such time as this unspeakable assault has been resolved. When we mentioned this demand, which we first made in the summer of 2007, to a US contact, she said: ‘That’s precisely what the pan-Germans and the covert Soviets want’.

• To which our response is: SO WHAT?

If Lord George had even contemplated instructing his solicitors to try to obtain a retraction from us, he would immediately have been told advised nothing could be done because Christopher Story’s information was accurate (even though it was obtained from secret sources), and that Lord George couldn’t know what back-up information Mr Story held in support of his revelations.

In any case, to challenge such a report would certainly have embroiled the former Governor of the Bank of England in a dangerous encounter. Far better to assume that the sensational report would remain ‘buried’ in International Currency Review, and also covered by the Gordon Thomas MI-6 ‘blanket false witness’ lies about the Editor to the gullible so-called ‘mainstream’ media.

STEALING OF $4.2 TRILLION TAX MONEY ON 31ST DECEMBER 2009
STILL NOT RECTIFIED: SO MASSIVE CRIMES HAVE BEEN COMMITTED
Likewise, when we reported that the tax on the Settlements monies had indeed been subtracted effective 31st December 2009, we had obtained hard information to that effect, backing up ‘inside’ information provided via impeccably reliable sources. Specifically, we received an email at 20:24 UK time, on 1st January 2010, from a key figure involved in the Settlements (said by key US ‘inside’ sources, who may have been lying to our contacts, to be briefed to pay off corrupt US politicians) who was in almost daily contact with us by email under a pseudonym for over two and a half years, stating that: ‘sources here [in Dallas] and in Europe told me my taxes were taken off the top on or before 12/31 in order for them to be credited into Fiscal 2009. I got that word Wednesday 12/30/09’.

Since these taxes have not been restored to the Settlements funds which had not been paid out by the 45-day deadline of 14th February (by which date the funds from which the taxes had been taken should by law have been remitted):

• WHERE IS THAT TAX MONEY?

• WAS IT STOLEN AND IF SO, WHO STOLE IT, MR GEITHNER?

• WAS IT PLACED OUT ON CONTRACT, after $100 billion had been siphoned off into the hands of a well-known US false religion as we have reported, and if so, who is or was the foreign corrupt counterparty? Brazil? Zimbabwe? Denmark? Deutsche Bank, Frankfurt?

China Trust Bank? Barclays Bank?

• WHO are the foreign counterparties that have collaborated with the criminals in the White House, the US Treasury, the State Department and the CIA to STEAL over $4.0 trillion from the account of the US taxpayer, and imagine that there will be no ‘consequences’?

Of course, the problem that the official racketeers faced was that the tax accruals ‘could not be placed into the taxpayers’ accounts’ – because, suddenly, the $4.5 trillions squandered by the current reckless Obama Government would have been restored overnight – raising questions about SOURCE OF FUNDS. Ah, so THAT’s why there’s been a blackout across the board of these exposures and investigations, is it? Well, no: as will be shown, it’s much worse than that.

• They couldn’t pay the tax monies into the taxpayers’ accounts: so they just STOLE IT, which was what they always intended to do, anyway.

• Keep asking yourself basic questions like: WOULD THEY STEAL IT? THE ANSWER TO SUCH BASIC QUESTIONS CONCERNING THESE DESPERATE CRIMINALS IS: SURE. NATURLICH.

As can be seen from Mr Hodges’ letter to the Office of the New York State Attorney General [see our report dated 2nd March 2010], we know [and in any case, see above] that these tax monies were not ‘replaced’ back into the Settlements pool – as a consequence of which the perpetrators now face extremely severe criminal sanctions, as Mr Hodges has pointed out to Andrew Cuomo’s office when demanding an investigation, given that some of the main perpetrators, and many of his own client CMKM/CMKX victims (whose monies appear to be tied up with the Settlements funds) are resident in the State of New York [See Note 3].

How is it possible that this grievous official criminality and blatant racketeering has continued, notwithstanding these exposures (albeit in the context of the complicit and cowardly failure of the Fourth Estate to do its job properly)?

FISH ROTS FROM THE STINKING HEAD: WORLD COURT IMMUNITY DEMANDED
AND SCANDALOUSLY OBTAINED BY THE COLLECTIVE OF CORRUPT U.S. PRESIDENTS
The starting point here will be to remind you that FISH ROTS FROM THE HEAD and that we have reported that in or around September 2009, five US Presidents – Carter (39), Bush Senior (41), Clinton (42), Bush Junior (43) and Obama (44) DEMANDED IMMUNITY FROM PROSECUTION from the World Court. This immunity was, we were told, GRANTED – in a disgraceful abuse of power by the World Court, which appears to have caved in to Mr Obama’s DEMAND on behalf of himself and his four criminal predecessors.

As we can see from this episode, President Obama has been in lock-step with these four criminal predecessors – which eliminates all residual (courtesy) expectations that he might have had the guts to stand up to these racketeers. That would, however, have been impossible – since this operative, whatever his background, is of course a placeman and a puppet of the controlling criminalised US Intelligence Power.

We can thus state without fear of contradiction on the basis of the foregoing information that the five US Presidents openly acknowledge that THEY ARE CRIMINALS. If you are not a criminal, you do not need immunity from prosecution. These operatives, working together as a PRESIDENTIAL COLLECTIVE, demanded and received the immunity from prosecution that they sought.

That of course means that the World Court which sustains the figleaf of legality at the corrupted intergovernmental level (where in fact the Rule of Law does not operate properly or at all, or can be non-existent) is COMPLICIT IN LETTING ALL THESE CRIMINALS OFF THE HOOK – in other words, condones criminality at the highest level, irrespective of the consequences (which in this context includes destroying the lives, savings, hopes and physical assets of hundreds of thousands and probably millions of victims).

In translation, the World Court appears to regard its job as DEFENDING RACKETEERS IN HIGH PLACES – not to sustain the Rule of Law at the intergovernmental level without fear or favour.

GORBACHEV MANIPULATING DEVELOPMENTS FROM HIS WING IN THE KREMLIN. AS BEFORE
Behind this scandal of scandals, lies the deeper reality which we have publicised but which none of the ‘mainstream’ media has picked up on, and which, we are informed, is now of ‘no interest’ to the present generation. We refer to the PROVEN FACT that former President Mikhail Gorbachëv, who fronted ‘collapsible Communism’ for the benefit of the confused ‘mainstream media’ and strutted the stage for years thereafter (and indeed continues to do so, to this day), collaborated AND STILL COLLABORATES with the Black Godfather of the criminally penetrated US Intelligence Power, the Langley base of which is labelled the George Bush Center for Intelligence.

GORBACHEV, BUSH, KOHL, ACKERMANN: RACKETEERING PARTNERS IN DEUTSCHE AG.
Specifically, as we have exclusively reported, Gorbachëv is a partner with George H. W. Bush Sr. and Dr Helmut Kohl, the former Chancellor of Germany, together with Dr Joseph Ackermann, in Deutsche AG., formerly Barrington Investment Group, St. Gallen, Switzerland, which handles the illegal proceeds of racketeering operations – as was the case with the proceeds derived from the stealing of a contract belonging to Mr Michael C. Cottrell, B.A., M.S., and which was facilitated by the ‘electronic stealing and forging’ of Mr Cottrell’s signature. The background detail to these crimes is re-presented herewith:

• Former President Mikhail S. Gorbachev, working with former US President George H. W. Bush Sr., former German Chancellor Dr Helmut Kohl and Dr Joseph Ackermann, all partners in Deutsche AG (formerly Barrington Investment Group), Switzerland, stole a contract using the electronic tag to the securities account owned by Mr Michael C. Cottrell’s Pennsylvania Investments, Inc., with Benchmark Securities, Inc., New Jersey, at a table-top meeting in Geneva on 7th October 2002 by the means described below, which included the electronic ‘forging’ of Mr Cottrell’s signature.

This theft was preceded by seven related thefts from Mr Cottrell’s firm’s securities account.

• This means that former President Mikhail Gorbachev and former German Chancellor Helmut Kohl are financial criminals like George H. B. Bush Sr., and should be treated accordingly.

Mr Gorbachev and Helmut Kohl have, as partners in Deutsche AG, by definition been profiting from the theft of Mr Cottrell’s contract and property, and also from huge proceeds from the theft of The Queen’s gold, which, we were specifically informed at 1.15 am by telephone on 4th February 2010, have likewise been channelled through Deutsche AG, St Gallen, Switzerland.

• As of 10th March 2010, The Queen’s gold had not been restored.

• The proceeds of innumerable corrupt transactions involving Gorbachëv, Bush Sr., Kohl and Ackermann have been run through the DVD’s main institutions, Deutsche Bank and Dresdner Bank.
So what is being exposed is that George H. W. Bush Sr. (CIA/DVD) and Mikhail Gorbachev (Soviet Military Intelligence (GRU) and KGB/FSB) have been systematically ransacking American and non-American victims alike, and running this colossal open-ended racketeering through Germany, with the assistance of the former STASI of East Germany (who are GESTAPO in relabelled clothing).

Hence the presence on the scene of STASI operatives such as Eva Teleki, a (separate) ‘Swedish’ opera singer, and other dirty operatives suspected of being continuing STASI agents, such as Chancellor Angela Merkel (the former Secretary of the Agitation and Propaganda Department of the Young Communists at Marx Lenin University, in East Berlin). This explains why Merkel was earlier fingered by this service as the guardian in Germany of George H W Bush Sr.’s stolen and exploited racketeering assets with German institutions.

• Vladimir Vladimirovich Putin (Shalomov), who is a senior Soviet GRU operative, was based in East Germany before he migrated to Leningrad, and is believed to have been primarily responsible for orchestrating, at least from the Soviet side, the clockwork ‘collapsible Communism’ operations in Eastern Europe. Gorbachev has been reported to us to operate from a wing of the Kremlin, as though he never left the place.

• Which he didn’t. He’s been at the centre of this revolutionary criminality THROUGHOUT.

WANTA: THE COURIER BETWEEN BUSH SENIOR AND GORBACHEV
Reconsider now the unsavoury, treacherous rôle of Mr Leo/Lee Wanta in this context. As we have repeatedly shown [see our reports dated 20th September 2009, 22nd October 2009, 17th November 2009 and 29th January 2010 for instance], Wanta’s ‘Principality of Snake Hill’ cover, which provides him with a fraudulent virtual ‘Ambassadorship’ from the non-existent ‘Principality of Snake Hill’ to the United States ‘enabling’ him to continue using the false self-designation ‘Ambassador’, is the clumsy concoction of an undischarged felon who has stolen inter alia this Editor’s $35,000 loan plus interest and other monies, cannot own a bank account because he is a felon, and not only answers the telephone in German with ‘GUTEN TAG’, but spells telephone TELEFON, Groupe with an ‘e’ as in French, while also masquerading behind this false front using a 202 telephone number provided by the French Embassy in Washington, DC.

Thus AmeriTrust Groupe, Inc, with ‘Groupe’ spelt as in French, was a French/DVD operation set up with the assistance of the former French Ambassador to Washington, DC, Monsieur Levitte, now President Sarkozy’s top intelligence advisor – its purpose being to steal/divert funds on behalf of the Bush-CIA-DVD racketeers for which the bilateral treaty-bound Vichy-French authorities, being complicit with the pan-Germans in this corruption (think of the 3,000+ Bush-linked accounts with Paribas in Paris), provide permanent cover.

No wonder Wanta, who had operated out of Vienna in the late 1980s and early 1990s, had to sack Michael Cottrell as Treasurer of AmeriTrust Groupe, Inc. (which he did ‘illegally’ on 23rd March 2008: see website reports) when it became obvious that Cottrell and Story were hot on the trail of this devious foreign operation to steal vast funds belonging to the United States of America and its taxpayers. Against this background, please be reminded [see our report dated the 20th September 2009] that Wanta’s nauseating ‘excess patriotism’ and ‘apple-pie Americanism’ is ALL FAKE – part of his elaborate but now exposed cover, as is his false religiosity. Recall Story’s Third Law: ‘Sooner or later all operations and covers are BLOWN’.

WANTA’S ‘REAGAN’S JUNK-YARD DOG’ DIVERSION
Wanta told Claire Sterling, the late author of Thieves’ World [published by the CIA’s favourite book publisher, Simon and Schuster, New York, 1994], and also reconfirmed personally to the Editor of this service, that President Reagan used to refer to Wanta as his ‘junkyard dog’.

He told the Editor that George Bush Sr. was ‘never in the room when Ronald Reagan briefed me’. This statement conflicts with the reality, which has been emphatically reconfirmed to this Editor from ‘inside’ sources, that Wanta was indeed the courier between George Bush Senior and Mikhail Gorbachëv (who are, as indicated, joint partners with Dr Helmut Kohl and Dr Joseph Ackermann in Barrington Investment Group, now Deutsche AG, St Gallen, Switzerland: see above etc.).

So it transpires that Wanta systematically lies and lied to his contacts, including the Editor of this service, whose platform and expertise he exploited to provide a smokescreen behind which the Bush-CIA-DVD racketeers, which Wanta served, could continue unimpeded under the crook Henry M. Paulson’s supervision from the US Treasury.

• We did wonder why we encountered no interference from the highest US level for the first year while Wanta was using us in the manner described.

WANTA KNEW ABOUT 9/11 IN ADVANCE, LIKE VREELAND
Wanta was released from jail just over a week after 9/11, was collected from prison by Gerald Salchert, of Austrian extraction, and taken to a relative’s house in Chippewa Falls, Wisconsin. Because of his experiences at the hands of the Bush-Clinton Crime Syndicate (given that these mentally deranged capos always treat their underlings with cruelty), there was concern that his prior knowledge of the 9/11 abomination might be leaked prior to the event – which is in fact what the Office of Naval Intelligence and prospective/actual assassin, Lt. Mark Delmart Vreeland, did from jail in Toronto, after he had opened three diplomatic bags, which is treason.

In March 2005, the Pentagon-associated US operative nicknamed ‘The Visitor’, calling himself Walker whose real name is Demchuk, who pestered the Editor for information about the Soviet-originated Iraqi WMD-removal (‘Sarindar’) programme, informed the Editor that ‘Vreeland is in solitary confinement for a very long time, his case has been sealed and he is no longer a threat to you’ (Vreeland having threatened the Editor with death in 2003). Vreeland’s parole board meeting has been pencilled in for a date in 2163, according to an informed US source.

FRANCE COVERS FOR GERMANY UNDER TREATY OF THE ELYSEE
Under the Treaty of the Elysée dated January 1963, which is of indefinite duration, France and Germany are both required to coordinate their stances on all external matters, on which they are required to ‘reach an analogous position’. France is therefore indistinguishable from Germany in respect of international strategic deception operations (especially as there are special intelligence collaboration provisions under the Treaty), and accordingly fronts extensively for Germany.

In this particular context, it provides flimsy (and disintegrating, or disintegrated) cover for the Abwehr operative, Leo Wanta, who was indeed the courier between George H. W. Bush Sr. and Mikhail Gorbachev [see our report dated 4th February 2010]. Although he says he’s Polish, we think this felon and fraudster may be a DVD operative/double agent, possibly STASI.

The German Chancellor, Angela Merkel – formerly the Secretary of the Agitation and Propaganda Department of the Communist Yugend at Marx-Lenin University, East Berlin – is a STASI operative.

FRAUDULENT WANTA ‘SNAKE HILL’ WEBSITE’S GERMAN CONNECTIONS
Further research has revealed a direct German connection with the clumsy ‘Principality of Snake Hill’ deception, which we have demolished, not least with the imprimatur of Ms Brenda Farrell, an official at the Australian Embassy in Dublin, who replied to our Irish associate’s enquiry as follows:

Forwarded message
From: <richardsharpe@eircom.net>
Date: Wed, Sep 23, 2009 at 12:25 PM
Subject: Fwd: Principality of Snake Hill [SEC=UNCLASSIFIED]
To: mrrichardsharpe <mrrichardsharpe@gmail.com>

richardsharpe@eircom.net wrote:
Many thanks for your timely response.

Regards
Richard

“Austremb Dublin” <Austremb.Dublin@dfat.gov.au> wrote:

Dear Mr Sharpe,

Thank you for your email.

There is no principality in Australia.

Kind regards

Australian Embassy
Dublin
Tel: +353 (0) 1 664 5300
Fax: +353 (0) 1 678 5185

richardsharpe@eircom.net

The German connection exposed herewith below, reveals the low calibre of these operatives, whose arrogance and certainty that they will never be exposed, is such that they don’t put much expertise into their deception operations if they can help it. A sane person would have thought that in ‘designing’ the ‘Principality of Snake Hill’ deception, they would have used some common sense and established an actual domain name, rather than using freeware sites.

One of the ‘Snake Hill’ websites
[http://members.multimania.co.uk/snakehill/]
causes computers to display a warning [viewable at: http://safeweb.norton.com/report/show?url=multimania.co.uk].

That warning is really for the entire ‘Multimania.co.uk’ domain, not just the fake ‘/snakehill’ subset. But it is interesting, to put it mildly, to note that the website’s location is: GERMANY. Why would a GERMAN site use a United Kingdom domain identifier?

• ESPECIALLY on a site noted for hosting THOUSANDS of Trojan threats: except that the answer presents itself immediately: it’s a DVD operation.

Yes, the entire website is HOSTED IN GERMANY, so Wanta’s ‘/snakehill’ subdirectory on this domain absolutely emanates from GERMANY as well. The following is the actual Whois Internet registration data (fully available at http://who.is/whois/multimania.co.uk/):

IP: 213.131.252.254
IP Location: Dusseldorf*, Germany

*Note: Wanta’s lawyer, Steve Goodwin, was born in Dusseldorf.

Domain name: multimania.co.uk

Registrant: conversis GmbH

Registrant type: Unknown

Registrant’s address: Patrick Kirchhoff, Erftstrasse 11, Duisburg 47051, Germany

Registrar: InterNetWire Communications GmbH [Tag = INTERNETWIRE-DE]
URL: http://www.internetwire.de

Relevant dates: Registered on: 12-Feb-2009
Renewal date: 12-Feb-2011
Last updated: 23-Apr-2009

Registration status: Registered until renewal date.

Name servers: ns1.conversis.de; ns2.conversis.de

WHOIS lookup made at 02:44:25 27-Feb-2010

As you can now start to see, our original assessment that the United States and Britain are in thrall to the GERMAN enemy that they never defeated, which we have maintained without deviation ever since those ‘gasps’ emitted by eavesdroppers during a telephone call several years ago made by the Editor to Wanta (joined by his former lawyer, Thomas Henry or Heinrich, a.k.a. Mr ‘Nasty’) is being confirmed by more and more evidence that is accumulating all the time.

In addition to using the French as a convenient, permanent front for their continuing hegemony operations, the pan-German Nazi long-range strategic deception heirs of the Abwehr, Deutsche Verteidigungs Dienst (DVD), collaborate with the covert Soviets (Soviet Military Intelligence (GRU), and the KGB/FSB, in formulating, implementing and consolidating their comprehensive, failing revolutionary hegemony operations against the Main Enemy (Britain and the United States).

• That’s quite easy, since the heirs of the Abwehr and of Heinrich Himmler OWN THE CIA.

CIA/DVD PRACTICE OF EXPLOITING AND STEALING OUTSIDE EXPERTISE
Now it is standard CIA ‘tradecraft’ practice to usurp the expertise of outside professional talent if it is not available in-house or by some other means. In this context, the CIA perpetrators needed a US securities expert with impeccable credentials and a securities account. What the CIA does is apply its standard Bush-style ‘bait and switch’ technique, exploiting and maximising the potential of the usurped professional expertise, before rejecting it and stealing the assets associated with it.

Note that Wanta likewise used this Editor’s website and publishing platform in pursuing his own agendas for 15 months, telling Mr Cottrell in October 2007 that ‘we must get rid of Chris Story, but don’t tell him’. Mr Cottrell having formed his own view of Wanta’s unreliability, Teutonic arrogance and duplicity, carefully found a way to warn the Editor of this ‘switch’ in December 2007, without actually revealing what he could not then reveal.

In March 2008, Wanta fired Cottrell by issuing a vituperative three-page ‘Resolution of the Sole Shareholder’ (which is illegal, as corporate resolutions can only legally be issued by the Board at a Board Meeting: the text of this document used language familiar to the Editor of this service as having been written by Thomas Henry (‘Mr Nasty’)).

Relieved, Mr Cottrell then despatched the necessary resignation information to the tax authorities in Richmond, VA, requesting them to send all subsequent paperwork, including tax demands, to Wanta in Wisconsin – where he had long stated that he is not resident and does not run a business. The rest of this sequence can be gleaned from our website: see March 2008.

So what the cynical Intelligence Power routinely does is ‘borrow’ external expertise, before discarding or stealing it. In the Editor’s case, ‘bait and switch’ has worked both ways: it could be argued that we ourselves have done a ‘switch’, taking a leaf out of these deceivers’ book.

Meanwhile, the same happened to Mr Michael C. Cottrell, B.A., M.S. Because the standard CIA procedure of exploiting, then stealing and discarding outside expertise and assets, also explains Wanta’s ‘use’ of Mr Cottrell for his failed AmeriTrust Groupe, Inc. DVD stealing operation – because Michael C. Cottrell has the requisite securities market expertise and securities account facilities, which were (mistakenly) applied for the benefit of Mr Wanta’s AmeriTrust Groupe, Inc. (but which cannot be used without Mr Cottrell’s signature: so we shall see whether it has again been stolen).

[Note: This analysis was written BEFORE the incredible fraud perpetrated via the State of Pennsylvania, subject of our separate report, was known. Quite prophetic, you may think].

Note also that Steven Goodwin, the Wanta Attorney in Richmond, VA, who accepted this Editor’s $35,000, which Wanta stole, was born, as stated previously, in Dusseldorf. Goodwin wrote the shifty loan documents which Leo Wanta demanded that the Editor sign forthwith, as soon as the Editor arrived on 10th June 2005 at his relative’s address in Chippewa Falls.

Wanta took it for granted that the Editor would meet his preremptory demand to sign, and wouldn’t walk out on the spot (which he nearly did).

[INSERTION: The Editor received an email on 9th March from a US correspondent who said he had asked Mr Wanta why he hadn’t paid the Editor’s loan plus interest back on the due date (or at all). Wanta replied that Mr Story had been ‘offered’ the choice of a ‘Biblical’ payment of ten times the orginal loan (no such ‘Biblical norm exists, by the way), or payment of the amount due on the due date. This is a fabrication. No such choice was ever offered: in any case it contains what is known as an ‘illusory promise’: see the securitisation analysis below. Another Wanta fabrication/slither].

THE AMERICAN INTELLIGENCE POWER WHICH HAS USURPED
THE GOVERNMENT DANCES TO THE TUNE OF FOREIGN POWERS
As for the stealing of Mr Cottrell’s contract and the electronic forging of his signature – a specific case of which we have detailed information [see above], which proves the ongoing racketeering collaboration between Bush, Gorbachëv and Kohl from the outset – it has been shown not only that Gorbachëv, Bush Sr., Helmut Kohl and Ackermann are handling stolen accruals (4) (the money that you make from stealing my money, is my money), but also that the US Intelligence Power dances to the tune of the foreign power whom George H. W. Bush represents, namely Germany – whom the Allies were supposed to have defeated in 1945.

Working closely at the intelligence level with the Nazi Continuum is the covert Soviet Continuum – both of which ‘Black’ Revolutionary Forces went underground: the Nazi (pan-German) Continuum went underground well before the defeat of Hitler, and the Soviet Continuum went underground in 1991, remaining under the supervision of ‘former’ President Gorbachëv, who, as indicated above, occupies a large suite of offices inside the Kremlin to this day.

As the Editor of Soviet Analyst, this Editor believes that GORBACHEV calls the shots – as he did from the moment this former Secretary of the CPSU Administrative Department came to power after the ‘festival of three funerals’ of abruptly deceased (murdered) Soviet leaders, in 1985.

We also believe that the concerted offensive to ‘take down’ the ‘Main Enemy’ (Britain and the United States) is the TWIN operation following on from the ‘takedown’ of the Soviet Union – and furthermore, that this massive operation is perpetrated by THE SAME TOP THREE OPERATIVES who ransacked the USSR: Gorbachëv, Bush Senior and Helmut Kohl.

WORLD REVOLUTION RACKETEERING OFFENSIVE
In other words, what we are exposing is a colossal World Revolution programme, from which these three racketeers and handlers of stolen monies have benefited and continue to benefit personally. [Well, they can’t be expected to run the World Revolution for altruistic motives, can they].

The extent to which Metabridge (Mossad, DVD, CIA and MI-6) is implicated in this gigantic anti-nation state World Revolution operation will quite probably be exposed when it transpires whether or not the two high-level MI-6 officers in the United States who were reported to us to be holding The Queen’s signature authority for the Settlements and her hijacked loan funds, may be double-crossing the Monarch. Given that everyone appears to have been double-crossing everyone else, anything is possible and nothing can be taken for granted: the Pennsylvania episode lends support to our suspicions on this score.

The Allies defeated Herr Adolf Schickelgrüber (Hitler), NOT Germany. On the contrary, assisted by the absorption by and penetration of the CIA by multiple ‘rehabilitated’ Nazis thanks to that ‘reverse takeover’ masterminded in the 1940s with treacherous US State Department connivance inter alia by General Reinhard Gehlen – the thuggish Abwehr Nazi intelligence chief who had overseen the repression in the German-occupied areas of the Soviet Union – the CIA became the main ‘active’ component of the Nazi Continuum. This accounts for its hideous Himmlerian abominations over the years, its satanic experimentation operations, its ‘Black’ offensives against the American people and the Rest of the World, its Nazi-type military aggressiveness and its repulsive arrogance, its absolute disdain of and hatred for the Rule of Law, and the reality that it is much more dangerous nowadays than the KGB-GRU ever was.

So what we are actually confronting is indeed the Nazi Continuum, secretly supported as always by (covert) Soviet Communism – the US component of which, at the present time, is headed by Leon Panetta. This Director of Central Intelligence, who controls the White House, was reported to the Editor of this service to be STILL blocking the Settlements as of 5th March 2010.

But even as we were being told this, something interesting happened behind the scenes. Which brings us to the real nub of the matter.

‘WALKING IN A STRAIGHT LINE’ WILL EXPOSE THE DECEPTIONS
The struggle that has been raging behind these scenes within and close to the DC Beltway reflects:

• A corrupt and criminal official determination to frustrate the Bank for International Settlements’ instructions (‘Line Item’) designating the conduct of the necessary and overdue G-7-approved on-balance sheet, fully taxable and transparent PRIVATE SECTOR Refunding of the US Dollar to Mr Michael C. Cottrell, B.A., M.S., who, we were informed by US ‘inside’ sources (who will be exposed if this turns out to be false) is regarded by personnel working for The Queen as the only expert who can be trusted with this task.

• If none of this is true, the preceding report, containing a letter from Mr A. Clifton Hodges to the Editor of this service for onward delivery (which was implemented) to Buckingham Palace, was intended to expose the deception and those engaged perpetrating it (whose names we know, if they are so engaged, and who will be exposed along with the other deceivers, should a deception have been perpetrated. In accordance with our policy of ‘walking in a straight line’, we continue to assume that this is not the case: but we shall see).

• What certainly IS known is that the foregoing background has been used – in a similar manner as the Leo Wanta cover involving this Editor was exploited – to provide ‘smokescreen’ cover for an operation which might (in this context) supposedly enable the criminal perpetrators to conduct the Dollar Refunding themselves, for their own illicit profit, using FRNs, not US Treasury dollars.

In other words, the perpetrators have remained hell-bent on blocking the will of the international financial community as expressed via the BIS refunding ‘Line-Item’ instructions, given their horror at the prospect of losing control – and have illegally frustrated the intended use of the $6.2 trillion loan funds provided on 19th-20th July 2007 via the Bank of England under levy to six US money center banks, via the Bank of New York Mellon (as it became, effective July 2007).

COTTRELL THREATENS TO SNATCH AWAY THE RACKETEERS’ COVER,
THROWING THEM INTO A MAD PANIC. THIS WAS NOT ANTICIPATED.
On Friday 5th March, in telephone conversations, including one with the Editor of this service, attended by every despicable intelligence eavesdropper under the sun, Michael Cottrell stated unequivocally that if the $6.2 trillion refunding loan, as pre-agreed, is withheld from Mr Cottrell’s firm, Pennsylvania Investments Inc., he will walk away.

This statement evidently caused panic and a hurried strategic deception rethink inside the Beltway and in the other dark corners of the US criminal universe in question – more or less proving that, as with the Wanta operation which exploited both Mr Cottrell’s securities market expertise and this Editor’s publishing and publicity abilities and qualifications, the perpetrators had been using Mr Cottrell as cover for an intended deviation from the agreed-upon Basel instructions.

• The pending Pennsylvania Fraud exposure will PROVE THAT THIS ASSESSMENT IS CORRECT.

• The intention is for the proceeds of racketeering operations to be channelled inter alia into the hands of the partners of Deutsche AG, St Gallen, Switzerland.

And as indicated above, we know precisely who is behind this typical piece of CIA/DVD duplicity: and if it continues, they will be exposed by name. But, as always happens with these investigations, THIS OPERATION HAS ALREADY BEEN BLOWN. And it has been ‘blown’ because, whereas we have been walking ‘in a straight line’, the snakes are incapable of doing anything but slithering.

THE TWO MI-6 OPERATIVES WITH THE QUEEN’S SIGNATURE:
ARE THEY WORKING FOR, OR ARE THEY DOUBLE-CROSSING THE QUEEN?
It now has to be stated that if the two MI-6 operatives said to be carrying The Queen’s signature authority are or have been double-crossing Her Majesty, we will get to the bottom of that, as well, and will expose them, also. After all, we were able to expose the false assertion by the US ‘inside’ sources that Roy Grantham is a Representative of The Queen, when we asked Grantham to get in touch with us via this website. Although Grantham lives just a couple of miles from the Editor’s office, he saw fit to instruct a firm of ‘heavies’, based in Shreveport, LA, to issue a blatant threat by email against the Editor of this service.

• This ‘investigator’ said that Grantham would not be contacting the Editor of this service in view of his interest in preserving his ‘Stellar’ [note the geomasonic language] reputation.

Beyond this, it now has to be said that if the British Monarchical Power does not INSIST upon the agreed-upon Group of Seven-approved, private sector-based transparent, taxed Dollar Refunding operation proceeding precisely as specified by Basel, and is prepared to put up valuable assets in exchange for worthless Federal Reserve Notes, the Monarchy will self-destruct – WHICH IT IS THE OBJECTIVE OF THE PAN-GERMAN ENEMY TO PROCURE, since the British Monarchy stands in the way of the comprehensive realisation of Germany’s insidious and now collapsing ‘Europe from the Atlantic to the Urals/Vladivostok’ hegemony plans.

WHAT HAS HAPPENED TO THE CHINESE CURRENCY BOXES?
The same applies to the Chinese. What happened to the Chinese currency boxes which were made available SPECIFICALLY to provide backing for the Treasury dollar? Are the Chinese also stupidly risking their assets in exchange for worthless FRNs, as well – notwithstanding their knowledge that the US officials in charge are racketeers, and in spite of the still undischarged lien for $47 trillion against the US Treasury imposed on or about 6th December 2009?

GREEK DEPUTY PRIME MINISTER EQUATES NAZI GERMANY
WITH CHANCELLOR MERKEL’S STASI GERMANY
It is certainly true that the catastrophic (and soon to become even more catastrophic) European project is on the verge of self-destruction, too. In late February 2010, in an interview with the BBC, the Greek Deputy Prime Minister accused NAZI GERMANY – clearly eliding Nazi Germany with the current German STASI régime – of ‘taking away the gold that was in the Bank of Greece, and they never gave it back. They shouldn’t complain so much about stealing and not being very specific about [their] economic dealings’.

• In other words; WHAT ARE YOU TALKING ABOUT, FRAU MERKEL?

• The fact that Greece and Germany have since been in discussions, does NOT expunge the Greek Deputy Prime Minister’s pointed observation from the record.

As previously reviewed, Greece’s massive toxic debt was accumulated under the preceding Greek Government as a consequence of Fraudulent Finance and racketeering operations with associates of the Bush/CIA/DVD Crime Syndicate via Citibank Athens, as we originally revealed a long time ago.
Far from being the weak partner, therefore, Greece is in fact in a position to DESTROY the entire poisonous pan-German hegemony operation, and in our opinion may well wind up doing so – as will similar situations waiting to explode among the PIGS (VIZ. Portugal, Italy (Greece) and Spain, which ought to read PIIGS, since Ireland is in the same position. A country with a huge trade surplus and a colossal current account deficit is in SERIOUS TROUBLE.

Uncoincidentally, each of these countries, as well as Iceland and the corrupted United Kingdom itself, has provided Fraudulent Finance ‘counterparty racketeering services’ to elements and associates of the Bush-CIA/DVD Crime Syndicate – with accruals doubtless pouring into Deutsche AG, St Gallen, for the benefit of Bush Senior, Gorbachëv (Orbach), Kohl and Ackermann.

WHAT DO THE FOUR RACKETEERS HAVE IN COMMON
WITH OTHER WELL-KNOWN DECEASED AND LIVING OPERATIVES?
What do these four racketeers have in common with the following deceased and living revolutionary operatives?

Andropov, Yuri (Lieberman)
Barroso, José Manuel
Biden, Joseph
Brown, Gordon
Bush Jr., George W.
Bush Sr., George H. W.
Clinton, Hillary Rodomski
Clinton, William Jefferson (Rockefeller)
Dodd, Senator Christopher
Emanuel, Rahm
Farage, Nigel
Geithner, Timothy
Grossart, Sir Angus
Khrushchev, Nikita (Perlmutter)
Medvedev (Menakhem Aaronovich Mendel)
Panetta, Leon
Paulson, Henry M.
Putin, Vladimir Vladimirovich (Shalomov)
Salmond, Alex
Sarkozy, Nicolas
Schickelgrüber, Adolf (Hitler)
Stalin, Josef (Djiugashvili-Kochba)?

FORECLOSURE ANALYSIS’ PARA-LEGAL SERVICES SPRINGING UP IN THE UNITED STATES
We turn now to the central issue: that securitisation is illegal under US law and indeed in all Common Law jurisdictions. There are NO REDEEMING FEATURES.

Services are now springing up in the United States providing a ‘Foreclosure Autopsy’ assessment in which breaks in the chain of title, missing assignments, unlawful substitution of trustees and blatant fraud and forgery, is typically identified. Such services do not provide actual legal advice: what they do is offer recorded information in support of any planned evidentiary hearing or legal discovery going all the way back to the original creditor/depositor. Every recorded document can be identified and surfaced for distressed homeowners – representing a broad foreclosure analysis resource support system via reliable established networks, local title companies, county recorders and other parties, especially in non-judicial foreclosure states like California, Arizona and Nevada, which appear to be states in the greatest need – given that it has been predicted that some 3.4 million foreclosures are anticipated across the United States over the rest of this calendar year (see Note 5 below for more background to this ‘utter corruption’).

NORTHERN ROCK’S LIES TO A FORMER MORTGAGOR MASKING
THE FACT THAT HER TITLE DEEDS WERE ‘OTHERWISE ENGAGED’
In Britain, we have been engaged with a householder who paid off her mortgage with Northern Rock in June 2004. In exchange, Northern Rock informed the lady that they would be forwarding her Title (Lease) documents, but failed to do so for five years – proffering every excuse under the sun for their gross failure, including the statement that her title documents had been ‘dematerialised’ – before, all of a sudden, forwarding her missing documents under cover of a letter saying that ‘it has come to our notice that we did not return your Title Documents in June 2004. Here they are. Please keep them in a safe place’.

• This occurred in June 2009, after the householder had torn her hair out, metaphorically speaking, for five long years trying to extract her documents from this reprobate lender.

In this instance, it is likely that, given that Northern Rock had had to be taken over by the British Government (since Gordon Brown was terrified at the media coverage of long lines of customers outside Northern Rock branches seeking to retrieve their savings, as in Argentina), the British Government’s lawyers may well have instructed Northern Rock to disgorge the said householder’s documents, which may have been encumbered by incorporation within a securitisation package.

The lady accepted a ‘compensation’ payment of £150 brokered by the Financial Ombudsman (which seems to exist to protect recalcitrant financial institutions operating within the British jurisdiction from determined ladies like this householder who will not take prevarication for an answer), on the basis of blatantly fraudulent information (e.g. that her title documents had been ‘dematerialised’ – a false statement placed in writing by Northern Rock).

We have comprehensively deconstructed this Northern Rock case, with facsimiles of the relevant correspondence, in the forthcoming huge issue of International Currency Review (6), indicating that Northern Rock lied to the householder, who was accordingly subjected to five years of anxiety and was unable to exercise her right to move home at any time during those five years.

• UPDATE: The householder wrote many days ago to Northern Rock asking them to answer her question, YES or NO: were her Title Deeds assigned and incorporated in a securitisation package without her permission? As of this date [11th March], THERE HAS BEEN NO RESPONSE. This is because they can’t answer the question without re-incriminating themselves. They have lied in writing already, so they have a major problem: as does the British Government, as the bank is controlled by the Government. We’ll see where the serpents in question slither and writhe to.

• MORTGAGE DECEPTION IN SPAIN: This morning [11th March], we received an email from a UK correspondent who writes: ‘I have a house in Spain, with a mortgage attached to it from Banco do Valencia’. Three years ago, the lady in question sought specific answers to her questions about prospective changes to the conditions of the mortgage. The bank failed to respond at all.

Moreover even after she complained to the bank’s Head Offfice, enclosing all the correspondence, there was no reply. Some time later the bank branch manager admitted to the lady that the changes that she requested could not be implemented BECAUSE THE MORTGAGE HAD BEEN ‘SOLD’ ON TO ANOTHER COMPANY. But of course the Spanish bank refused to provide any details of the company in question, let alone guidance on how they could be contacted. This revealed that, as in the cited Northern Rock case, Banco do Valencia are hiding something.

Our correspondent states: ‘So I pay my monthly mortgage to Banco do Valencia without having a clue who really owns that debt or who I am ultimately paying. This chimes with your Northern Rock exposure. Keep up the good work’.

• Two points: (1): NEVER DO BUSINESS IN SPAIN. They will always deceive and double-cross you. And: (2): The fact that Britain and Spain are satrap states caught in the European Union Collective entrapment net MAKES NO DIFFERENCE. Sheisters are sheisters, no matter what the regime.

• AND A VERY KNOWLEDGEABLE PROFESSIONAL UK CORRESPONDENT ADDS [11th March]:
‘From my own experience of finance companies’ ‘lawlessness’, they never back down even when shown that their actions are illegal or contracts unenforceable; and the standard ploy is not to answer letters… In psychological terms, this shows that they are extremely afraid, beneath the superficial impression of arrogance that they display. Their power, therefore, is an illusion’.

• Editor’s add-on: With the Northern Rock test case, we can assure you that there will be no let-up as they have been caught lying to the former mortgagor IN WRITING and there’s not a lot they can do to retrieve their situation. No doubt the Government’s lawyers will be forced to intervene.

SECURITISATION IS A KEY ELEMENT OF A REVOLUTIONARY ATTACK ON PRIVATE PROPERTY
When you consider that, as will now be rehearsed, securitisation is completely illegal under US and Common Law, you can see not only that these criminal enterprise financial institutions are well and truly on the wrack, but also WHY there has been such intense and ruthless ongoing RESISTANCE to the exposure of this rampant dirty racketeering activity – which represents nothing less than an intentional, sustained and suitably ‘below the radar’ offensive by the manipulators of the World Revolution against private property – being micromanaged in parallel with the so-called ‘sexual revolution’ and ‘upside down’ outpouring of every form of reprobate behaviour and perverted sex which is aimed at destroying the family, regarded by these long-range geomasonic maniacs as the glue which ‘legitimises’ private property.

Even if a jaded observer has zero knowledge of the progress of the World Revolution, which has reached an advanced (and yet fragile) stage in our era, the relentlessly comprehensive spread and coverage of the racketeering and corruption being perpetrated against private home owners can easily be seen to be ‘no accident’. As with ALL dimensions of the World Revolution, one has to ask oneself: how come that this nefarious, barbaric behaviour appeared suddenly and on such a truly colossal scale in every corner of the world almost simultaneously? None of this is coincidental: people who treat such developments as ‘phenomena’ without enquiring WHY these things are happening, are destined to languish in permanent ignorance of the truth.

YES, A RUTHLESS, SYSTEMATIC ATTACK ON PRIVATE PROPERTY
And the truth IS that what we are exposing is nothing less than a carefully planned, ruthless, determined and systematic revolutionary attack on private property.

• No wonder Gorbachëv sits, to this day, in a huge wing of the Kremlin, as before.

HE COLLABORATED WITH BUSH SENIOR to unleash this scourge on homeowners in the United States, Britain and the White Commonwealth countries – the ‘Main Enemy’, in collaboration with the covert Soviets’ intelligence allies, German ‘Black’ intelligence (DVD, DACHAU), hiding behind the front conveniently provided by the duplicitous French under the Treaty of the Elysée.

The criminal mentality seeks at all costs to entangle its targets in its own corruption, so that if anything goes wrong, the targeted parties are readily identifiable as racketeers, thereby providing the originating perpetrators with cover (so they imagine).

Hence the subversion through corruption of foreign counterparties – in Britain, Iceland, Greece, Italy, the Vatican, Spain, Portugal, Albania, North Korea, India, China, Malaysia, Hong Kong, Dubai, Abu Dhabi, Saudi Arabia, Israel, Cyprus and wherever willing trading counterparties may be found.

LOWEST COMMON DENOMINATOR SCAMS STILL ‘OUT THERE’
That such Fraudulent Finance operations have continued as though there had been no historical discontinuity is of course well known. But a good deal of ‘scraping of the barrel’ is also taking place. Last year we drew attention to certain curious money-lending activities that were being fronted or sponsored by Newsmax.com which we were advised may be borderline financial scams.

The lowest racketeering common denominator we have ever come across, dated 2nd March 2010, from Cyprus – signed off by one Mr Ahmet Z. Altunis, ‘Principal Right Holder. World Wide Funding Trust’ seeks clients inter alia in the United States, to take advantage of their services for all ‘your unconventional funding needs’:

‘We give big opportunity to enter trade (PPP). If your assets SKRs (Safe-Keeping Receipts), Notes, Lease MTNS, Bond(s), IBOS, CMOS, have no available credit line now, we open credit line to your name. You can enter (PPP), your big profit [to] finance your project. We begin New Year contracts 2010: Enter Gateway to unlimited opportunities…. Send LOI + CIS + SKR + Passport. Then we open and activate credit line under YOUR NAME, even [though] the credit line is open on our name… Client have NO RISKS at 100%, all is secured by our and their lawyers, no tricks’.

When this crude solicitation written in barbaric English was sent to us from the United States, we were told that it represents a lowest common denominator fraud serving the Bush Crime Syndicate network. In due course, the client is asked for an up-front fee of between 12,800 and 15,000 Euros to cover ‘due diligence costs’, so it looks like a standard ‘Nigerian-type’ scam: but it isn’t.

Targets are being enticed into securitisation deals, which are illegal as indicated below, under US and Common Law. The solicitation sent to us (above) was being widely disseminated within the United States by US parties (wire fraud).

WHY SECURITISATION IS ILLEGAL UNDER U.S. AND COMMON LAW
Securitisation is illegal under US legislation – primarily because it is fraudulent and causes specific violations of R.I.C.O., usury, Antitrust and bankruptcy laws. And it flies in the face of public policy in numerous ways, as is expounded in extensive detail in an analysis to be published in our journal Economic Intelligence Review 2009Q1 (7) with several pages of book, article and case references.

To begin with, securitisation violates US State usury legislation. Secondly, all ‘true-sale’, ‘disguised loan’ as well as ‘assignment’ securitisations are essentially tax evasion schemes, and the penalties for tax evasion in the United States are excessively severe.

Thirdly, in all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations, the conflict of interest inherent in the sponsor also serving as the servicer constitutes fraud and conversion. In the fourth place, in all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations where the Special Purpose Vehicle [SPV] is a trust, the declaration of trust is void, as it exists for an illegal purpose.

In the fifth place, off-balance sheet treatment of asset-backed securities (both for ‘true-sale’ and for assignment transactions) constitutes fraud.

Sixth, all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations involve blatant fraudulent conveyances. In the seventh place, securitisation usurps United States bankruptcy laws and is accordingly illegal, as well as being also demonstrably contrary to public policy.

SECURITISATION ENTAILS GROSS VIOLATIONS OF R.I.C.O. STATUTES
In ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations, there are fraudulent transactions which serve as ‘predicate acts’ under US Federal R.I.C.O. statutes.

The specific R.I.C.O. sections are: Section 1341 (mail fraud); Section 1343 (wire fraud); Section 1344 (financial institution fraud); Section 1957 (engaging in monetary transactions improperly derived from specified unlawful activity) [‘the money you make from the illegal exploitation of my money, is my money’]; and Section 1952 (racketeering).

Furthermore, securitisation constitutes violations of American antitrust statutes through market integration, syndicate collusion, price formation, vertical foreclosure, tying, price-fixing, predatory pricing, and the rigging of allocations.

Securitisation also involves void contracts, given the lack of consideration, illusory promises, the absence of any actual bargain, the absence of mutuality – and finally illegal subject matter and the contravention of public policy.

Securitisation is riddled with Fraudulent Transfer, Fraud in the Inducement, Fraud in Fact by Deceit, Theft by Deception (Fraudulent Concealment) and Fraudulent Conveyance: see the US securities regulations routinely breached in such activity, listed at the foot of this report and of most of these reports for THE PAST THREE YEARS, and other laws also routinely flouted in this context.

NOTWITHSTANDING THAT IT’S ILLEGAL, U.S. AUTHORITIES
CONTINUE TO PROMOTE AND ENCOURAGE SECURITISATION
Yet notwithstanding such crystal-clear indications that securitisation is 100% ILLEGAL under US Law, as well as under Common Law generally (so that these findings are largely applicable in all Common Law countries), US authorities from the highest level downwards, financial institutions, intermediaries, Intelligence Power operatives and others are gearing up for what they doubtless hope will be intensified racketeering and trading activity with (corrupt) foreign counterparties.

This behaviour is being fine-tuned ‘as we speak’, despite the reality that the securitisation activity being planned and implemented violates innumerable US statutes in the manner we summarise above, and notwithstanding that such activity is contrary to public policy.

Indeed, it’s as though the Rule of Law did not exist. From the highest level of the US Treasury, the White House, the US State Department and the Central Intelligence Agency and its subsidiaries such as the lethal Office of Naval Intelligence (ONI), the mindset, intention and perverse primary objective has all along been to resume Fraudulent Finance based on securitisation, as quickly and as seamlessly as possible. No wonder the five criminal Presidents DEMANDED immunity from prosecution from the World Court: did they arrange for key Justices (starting with the American Justice) at the World Court to receive pecuniary reward for granting them their demand?

SUMMARY FORENSIC ANALYSIS PROVING THE ILLEGALITY OF SECURITISATION
From whichever angle securitisation is considered, it is ILLEGAL. For example, the contracts are themselves VOID. This is because the process of securitisation involves several contracts that are either signed simultaneously, or within a short timeframe – many of which are rendered void inter alia because there is no consideration in contracts used in effecting the securitisations.

Many such contracts involve unilateral executory undertakings containing illusory promises. A unilateral executory promise is not a consideration. Such promises typically include a promise made by the Special Purpose Vehicle to pay out periodic interest, whether contingent or non-contingent on whether the collateral pays cash interest.

Collateral-substitution agreements contain a promise whereby the sponsor agrees to substitute impaired collateral. An assignment agreement of future (not yet existing) collateral may well be deemed a unilateral executory promise by the sponsor.

Illusory promises are not valid consideration for a contract. Such promises may be found in the Subscription/Purchase Agreement, whereby an existing asset is being exchanged for a future asset that does not exist as of the date of the subscription/purchase agreement. To make matters worse, none of the agreements typically signed by the investor as part of his/her purchase of the Special Purpose Vehicle’s Asset-Backed Securities expressly incorporates the (typically illusory) promises embodied in the offering prospectus.

OR: The Special Purpose Vehicle’s promise to pay interest and/or dividends on Asset-Backed Securities ‘Interest-Onlys’, Preferreds and ‘Pincipal-Onlys’ are essentially illusory promises because the underlying collateral may not produce any cash flows at all: so there won’t be any interest/dividend payments.

Moreover the lack of mutuality characterising such contracts renders them null and void, by definition. In any such contract, each party must have firm control of the subject matter of the contract and the underlying assets (consideration), and there MUST be a direct contractual relationship between the parties concerned.

But this is not the case, especially as the Special Purpose Vehicle’s corporate documents (trust indentures or bylaws or articles of incorporation) may typically limit the right of each Asset-Back Security investor; while there is typically no mutuality at all between the Special Purpose Vehicle and the sponsor/originator, because both entities are essentially the same, and are controlled by the sponsor before and after the securitisation takes place.

SECURITISATION: A COVER FOR TAX EVASION
In addition to their multiple violations of American State usury laws, all ‘true-sale’, ‘disguised loan’ and ‘assignment securitisations’ are essentially tax evasion arrangements. In the United States, the applicable tax evasion statute is the US Internal Revenue Code Section 7201 7 which reads: “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution”.

Under this statute and related case law, prosecutors must prove three elements beyond any reasonable doubt:

(1): The actus reus (the guilty conduct) – which consists of an affirmative act (not merely an omission or failure to act) that constitutes evasion or an attempt to evade either: (a) the assessment of a tax or (b) the payment of a tax.

(2): The mens rea or “mental” element of willfulness – the specific intent to violate an actually known legal duty. In the case of ‘true sale’ transactions, the tax evasion occurs because:

(a): The sponsor determines the price at which the collateral is transferred to the SPV, and hence, can arbitrarily lower/increase the price to avoid capital gains taxes – it being assumed here that the sponsor is a profit-maximising entity and will always act to minimise its tax liability and to avoid any tax assessment;

(b): The sponsor typically retains a ‘residual’ interest in the SPV in the form of IOs, POs and “junior piece”, which are typically taxed differently and on a different tax-basis compared with the original collateral: hence, the sponsor can lower the price of the collateral upon transfer to the SPV, and convert what would have been capital gains, into a non-taxable basis in the SPV “residual”;

(c): There is typically the requisite “intent” by the sponsor – evidenced by the arrangement of the transaction and the transfer of assets to the Special Purpose Vehicle;

(d): Before securitisation, collateral is typically reported in the sponsors’ financial statements at book value (that is, lower-of-cost-or-market: under both the US and the international accounting standards, loans and accounts receivable are typically not re-valued to market-value unless there has been some major impairment in value) which does not reflect true Market Values, and results in effective tax evasion on transfer of the collateral to the SPV, as any unrealised gain is not taxed;

(e): The actus reus is manifested by the execution of the securitisation transaction and transfer of assets to the SPV;

(f): The mens rea or specific intent is manifested by the elaborate arrangements implicit in securitisation transactions, the method of determination of the price of the collateral to be transferred to the SPV, the aims of securitisation, and the sponsor’s transfer of assets to the SPV;

(g): The unpaid tax liability consists of foregone tax on the capital gains from the collateral (the transaction is structured to avoid recognition of capital gains), and tax on any income from the collateral which is ‘converted’ into basis or other non-taxable forms;

(h): Income (from the collateral) that would have been taxable in the sponsor’s own financial statements, is converted into non-taxable basis in the form of the SPV’s Interest-Only (IO) and Principal-Only (PO) securities: part of the Interest-Spread (the difference between the SPV’s income and what it pays as interest and operating costs) is paid out to PO-holders, and this transforms interest into return-of-capital or just capital repayment, with no tax consequences. [Leaving aside the Ponzi scam dimension here – Ed.].

In cases of ‘disguised loan’ or ‘assignment’ securitisation transactions, tax evasion occurs:
(a): Because the sponsor determines the price at which the collateral is transferred to the SPV, and hence can lower/increase the price of the collateral to avoid capital gains taxes;

(b): Because the sponsor typically retains a ‘residual’ interest in the SPV which is normally taxed differently and on a different tax-basis compared to the original collateral: hence, the sponsor can lower the price upon transfer to the SPV, and convert what would have been capital gains, into non-taxable basis for tax purposes;

(c): Because the transfer of collateral to the SPV and the creation of Interest-Only and Principal-Only securities converts what would have been taxable capital gains into non-taxable basis;

(d): Because gain in the value of the collateral is not recognised for tax purposes, because there has not been any ‘sale’;

(e): Where the ABS is partly amortising, any capital gains are converted into interest payments;

(f): Because actus reus is manifested by the execution of the securitisation transaction and transfer of assets to the SPV;

(g): Because the mens rea or specific intent is manifested by the elaborate arrangements implicit in securitisation transactions, the objectives of securitisation and the sponsor’s transfer of assets to the Special Purpose Vehicle;

(h): Because the unpaid tax liability consists of tax on the capital gains from the transfer of the collateral (the transaction is structured to avoid recognition of a sale, whereas the transfer to the Special Purpose Vehicle is effectively a sale), and tax on any income from the collateral which is ‘converted’ into basis or other non-taxable forms, by securitisation.

SECURITISATION VIOLATES THE U.S BANKRUPTCY CODE
AND THEREFORE ALSO CONTRAVENES PUBLIC POLICY
Any transfer or conveyance of the assets of a debtor that is deemed to be made for the purposes of hindering, delaying or defrauding actual or potential creditors, may be determined by Courts to be a Fraudulent Conveyance under Section 548 of the US Bankruptcy Code or under a relevant theory of Constructive Fraud.

Although each US State has its own laws regarding the appropriate elements of proof of Constructive Fraud, Section 548(a)(2) of the US Bankruptcy Code permits an inference of Constructive Fraud if the following factors exist:

(1): The debtor received less than reasonably equivalent value for the property transferred; and:

(2): The debtor was insolvent or became insolvent as a result of the transfer, or else retained unreasonably small capital after the transfer, or made the transfer with the intent or belief that it would incur debts beyond its ability to pay.

The following theories of Fraudulent Conveyance within the context of securitisation may apply:

• Where the sponsor/originator receives insufficient value for assets transferred.

• Where there is an ‘intent to hinder, delay or defraud’ creditors (representing an implicit pre-petition waiver of one’s right to file for bankruptcy), with regard to the originator’s transfer of assets to the SPV, or the originator’s transfer of assets to the SPV has clearly not been undertaken on an arms’-length basis.

• Where securitisation increases the originator’s bankruptcy risk; and:

• In all instances where securitisation usurps the United States’ bankruptcy laws and is therefore illegal on such a basis alone.

SECURITISATION VIOLATES FEDERAL R.I.C.O. STATUTES
Turning now to the reality that securitisation constitutes a violation of US Federal R.I.C.O. Statutes [see Legal Notes below], we can state without equivocation that the entire securitisation process constitutes violations of Federal R.I.C.O. statutes, because:

(1): There is the requisite criminal or civil ‘enterprise’ – consisting of the sponsor/issuer, the trustees and the intermediary bank. These three parties work closely together to effect the securitisation transaction.

(2): There are ‘predicate acts’ of:

(a): Mail fraud – using the mails for sending out materials among themselves and to investors.

(b): Wire fraud – using wires to engage in fraud by communicating with investors.

( c): Conversion – where there isn’t proper title to collateral.

(d): Deceit: misrepresentation of issues and facts pertaining to the securitisation transaction.

(e): Securities fraud: disclosure issues.

(f): It entails loss of profit opportunity.

(g): It involves the making of false statements and or misleading representations
about the value of the collateral.

(h): It entails stripping the originator/issuer of the ability to pay debt claims or judgment claims in bankruptcy court – a state of affairs that may apply where the sponsor is financially distressed and the cash proceeds of the transaction are significantly less than the value of the collateral.

There is also typically the requisite ‘intent’ by members of the enterprise – evident in knowledge (actual and inferable), acts, omissions, purpose (actual and inferable) and results. Intent can be reasonably inferred from:

(a): The existence of a sponsor that seeks to raise capital – and cannot raise capital on better terms by other means;

(b): The participation of an investment bank that has very strong incentives to consummate the transaction on any agreeable (but not necessarily reasonable) terms.

SECURITISATION ALSO VIOLATES U.S. ANTITRUST LEGISLATION
Securitisation further constitutes violations of US Antitrust laws, because the American Asset-Backed Securities and Mortgage-Backed Securities markets are dominated by relatively few large entities such as FNMA (Fannie Mae), Freddie Mac, the top five investment banks (all of which have conduit programs), and the top five credit card issuers (MBNA, AMEX, Citigroup, etc.), etc.. As a consequence, the top five ABS/MBS issuers control more than 50% of the US ABS/MBS market. This constitutes illegal market concentration under US Antitrust legislation.

THE ‘PHILIPPINES EXCEPTION’ BURIED IN THE CLAYTON ACT
In the Antitrust context, however, observe the following text from the Clayton Act, which specifically EXCLUDES transactions undertaken with The Philippines. Isn’t that interesting?

It provides a blanket rationale for the massive past and ongoing US clandestine focus on The Philippines, the CIA’s need for ‘black hole’ conditions there in connection with successive US operations to relieve Presidents Marcos and Aquino of the stolen and hidden ‘Yamashita’s gold’, the US Fraudulent Finance operations using Philippine institutions and related operations based in that territory, an aborted US operation to convert The Philippines into a new US State (as had been planned under Clinton for Somalia), and the frequent visits of operatives known to ourselves to The Philippines under cover of attending to ‘orphanages’:

§ 1 Clayton Act, 15 U.S.C. § 12 Definitions; short title:
(a) “Antitrust laws”, as used herein, includes the Act entitled:
‘An Act to protect trade and commerce against unlawful restraints and monopolies’, approved July second, eighteen hundred and ninety; sections seventy-three to seventy-seven, inclusive, of an Act entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes’, of August 27th, eighteen hundred and ninety-four; an Act entitled ‘An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninetyfour’, entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes’, approved February twelfth, nineteen hundred and thirteen; and also this Act.

‘Commerce’, as used herein, means trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory of the United States and any State, Territory, or foreign nation, or between any insular possessions or other places that are under the jurisdiction of the United States, or between any such possession or place and any US State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States:

Provided, That nothing in this Act contained shall apply to the Philippine Islands. The word ‘person’ or ‘persons’ wherever used in this Act shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country.

FANNIE MAE, FREDDIE MAC ENGAGED IN FURTHER ILLEGAL SECURITISATION:
RE-SECURITISING ALREADY SECURITISED ‘DUD’ ASSETS TO DUMP BACK ON THE BANKS
Even so, it became apparent in early March that Fannie Mae and Freddie Mac, both controlled by the US Government, are preparing to force financial enterprises such as the CIA’s Bank of America Corporation, JP Morgan Chase & Co, Wells Fargo and Citigroup, Inc., to buy back further waves of newly securitised packages of mortgages – i.e., the former Government-Sponsored Enterprises are reportedly engaged again in repackaging mortgage securities already marked down to ‘true’ value.

In other words, they are trying to dump faulty securitised loans, as well as straight loans, back on the participating banks – under cover of such fantasies as the double-minded statement attributed to Sharon McHale, spokes‘person’ for Freddie Mac, located adjacent to the CIA in McLean, Virginia, on 5th March 2010: ‘We are trying to be good stewards of taxpayer dollars and as part of that, it’s important that those dollars not go to loans that should not have been sold to us in the first place’ – throwing the blame for Freddie Mac’s own scandalous racketeering behaviour back at the banks.

• Being interpreted, what this woman was saying was: this:

‘We are covering ourselves with a mantle of rectitude by posing as protectors of the taxpayer’s dollars in order to obfuscate our own ongoing racketeering behaviour, even as we prepare further Fraudulent Finance securitisations in violation of the relevant US legislation: and we couldn’t care less because we are owned by the Government itself, which is up to its neck in such violations’.

And Paul Miller, a former examiner for the Federal Reserve (hardly a guarantee of integrity, given the Fed’s own reputation for Fraudulent Finance), based in Arlington, VA, let the cat out of the bag with: ‘If you want to originate mortgages and keep that pipeline running, you have to deal with the push-backs. It doesn’t matter how much you hate Fannie and Freddie’ – and neither, apparently, does it matter to what extent the Rule of Law is cynically violated ‘in order to keep the pipeline (of Fraudulent Finance) running’.

GARY GENSLER IS NOT AS OPPOSED TO FRAUDULENT FINANCE AS HE SEEMS
The appointment of Gary Gensler as Chairman of the Commodity Futures Trading Commission under President Obama was greeted with signs of relief on Wall Street. Here was a hardened former Goldman Sachs trader with 18 years’ experience with that cynical, ruthless money shop, who could be relied upon to act at all times in the interests of Wall Street, not the investor and taxpayer.

But, as has since been reported elsewhere, over a private lunch at the Waldorf Astoria in midtown Manhattan on 6th January 2010, the 52-year-old Gary Gensler caused indigestion among the self-satisfied guests at the luncheon – Timothy O’Hara, head of global credit at Crédit Suisse Holdings USA, Inc.; Robert P. Kelly, CEO at Bank of New York Mellon Corporation; David B. Heller, co-head of the securities division at Goldman Sachs; and Seth Waugh, CEO of Deutsche Bank Americas.

Because when one banker asked Gensler what or whom he saw as the biggest obstacles to reform in the securities and commodities sectors, he replied: ‘You’ (8).

Mr Gensler has been seeking derivatives control legislation that goes beyond current proposals, including what President Obama put forward during the summer of 2009. Notwithstanding the fact that if the derivatives situation is not addressed, the forthcoming crash will be so horrific as to be likely to tip the world into open, rather than covert, warfare, a certain Samuel Hayes, Professor Emeritus of Investment Banking at Harvard Business School, Boston, told Bloomberg in February 2010 that ‘Gensler is going to raise real concerns’ for financial firms.

‘Derivatives are absolutely central to what is Wall Street in the 21st century’ – namely, a casino. ‘Nobody wants the regulations to affect them’ (9).

‘GREATER TRANSPARENCY’ IS EVIDENTLY ALL HE‘S AFTER
On closer examination, Mr Gensler has actually been pushing for ‘more transparency’ in the over-the-counter derivatives market, so as to lower spreads between buyers and sellers and to make it easier for new competitors to enter the market – which the big banks aren’t keen on, as more participants will deprive them of profit.

So, Gary Gensler is not actually in the business of tackling the underlying crisis arising from the determination of financial institutions to continue playing Russian roulette, using the model first developed by the US Intelligence Power as it sought what it thought were foolproof methods of ensuring its financial independence from Congress and the open-ended funding pipelines that it considered appropriate to buttress its usurped status as a recalcitrant ‘State within the State’ impervious to reform and determined to brook no interference with its stolen hegemony.

INVESTORS’ MONEY USED TO REMUNERATE WALL STREET
In any case, the derivatives institutions and their back-up infrastructure have not the slightest intention of adopting any course other than ’business as usual‘ – and on a far larger scale than in the past. This obtuse madness WILL lead to a global collapse, as derivatives products are usually without real value. As a noted article in The New York Times of 7th February 2010 at last stated, investment banks trading derivatives do not own the mortgage bonds, the obligations from home owners, notes signed by home owners or the mortgage deeds of the deeds of trust.

The ‘structured products’, consisting of bundled documents ostensibly relating to the above but having NO RECOURSE to underlying real value, were, however, invested with ‘value’ arising from the name of the institution marketing the ‘asset’ – that is to say, arbitrary ‘value’ arising from the fact that, as a Goldman Sachs compliance officer actually admitted to the Editor of this service: ‘A structured product is worth what someone is prepared to pay for it’ – a penetrating statement which encapsulates the possibility that it may be (is) worthless: which is indeed the case.

‘THE MONEY YOU MAKE BY MISUSING MY MONEY IS MY MONEY’ – I.E., THE HOME OWNER’S
The money sloshing around between investment banks in this dirty market was investors’ money unwittingly advanced into pools of capital which winds up being used primarily to finance the fees, profits, insurance proceeds, insurance premia, and so forth – all for the benefit of Wall Street, paid to the investment banks, and not to investors who stumped up the money in the first place.

These fees and relationships are not and have never been disclosed to the home owner despite, in the United States, clear legislation requiring such transparency, including the Truth in Lending Act, and Deceptive Lending – which require full transparency and disclosure.

• Further legislation applicable to the securities sector in the United States is re-listed below – in the list that we have republished at the foot of our website reports for the past three years.

• The list of applicable securities regulations and laws is augmented by a legal tutorial which, again, we have published for the past three years at the foot of these reports,

It would appear that, notwithstanding such reminders, Wall Street and its compliant infrastructure, as well as its co-conspiring portfolio of dubious foreign trading counterparty institutions, has every intention of continuing to violate the relevant US rules and legislation – while at the same time continuing to abuse, in the mortgage sector, the home owner with the same cynicism as in the past.

Given the legal principle that ‘the money you make from misusing my money is my money’, it is quite clear that undisclosed fees, profits, kickbacks and other financial abuses perpetrated by these big speculative financial entities which produce no real wealth at all, but simply move money around between themselves, are payable to the home owner who signed the ‘loan’ papers in the first place.

A PERVERSE AND ARROGANT OFFICIAL INTENT TO CONTINUE VIOLATING U.S. LAW
But none of these realities – which have been rammed home by the technical work that we have published on this subject in International Currency Review, prepared by Michael C. Cottrell, B.A., M.S. – have had any impact so far on the thinking of derivatives sector participants, analysts and observers, who appear to be hell-bent on continuing to violate US legislation.

On the contrary, these people are concerned exclusively with ensuring that the discontinuity that enveloped their sector and the financial markets as a whole in mid-September 2008 – is reversed, even though a total resumption of derivatives trading at full throttle WILL lead the world, and all engaged in this fraudulent activity, into a black hole

Moreover, since cracks are appearing in the entire structure of sophisticated finance ‘as we speak’, centred on Greece – the previous Government of which incurred, through Fraudulent Finance operations using Citibank, Athens, as counterparty to Bush/Cheney trading activities, an immense portfolio of derivatives obligations estimated at 300 billion Euros off-balance sheet, which can never be honoured – the timing of the collapse need no longer be measured in years.

So the self-centred, myopic speculative institutions are behaving like gun-toting bandits in a department store – determined to have their own way, irrespective of the consequences: one of which is that in the event of default, colossal payouts are due on Credit Default Swap contracts, which in fact amounts to institutionalised blackmail.

THE DEPOSITORY TRUST & CLEARING CORPORATION IS IN OVERDRIVE
For its part, the main component of the derivatives infrastructure supporting this prospectively catastrophic speculative activity is the Depository Trust & Clearing Corporation (DTCC) – best known for its Cede & Co. partnership nominee facility, which is the holder of almost every physical stock certificate in existence, and boasts of accounting for more than $2.0 quadrillion in (largely fake) securities transactions annually.

On 10th February 2010, the DTCC announced that the Federal Reserve Board had approved its application to establish a DTCC subsidiary which is to be a member of the Federal Reserve System to operate ‘the Trade Information Warehouse (Warehouse) for over-the-counter (OTC) credit derivatives and the ‘legally accepted’ global depository for over-the-counter credit derivatives transactions’. (10).

THE FEDERAL RESERVE HAS BECOME
THE BACK-STOP GUARANTOR OF CREDIT DEFAULT SWAPS
Which means, in practice, that the Federal Reserve is now the GUARANTOR behind all Credit Default Swap (CDS) transactions that clear via DTCC. The new Fed-endorsed organisation will settle CDS obligations in all currencies and process credit events. It will also handle all over-the-counter credit derivatives traded worldwide, will be regulated by the Federal Reserve and the New York State Banking Department, as well as being ‘overseen’ by other American as well as international regulators (via a sort of college of supervisors).

The DTCC’s Trade Information Warehouse will be operated by a Warehouse Trust, beginning its operations ‘once certain organizational conditions have been met, which are expected shortly’. It is understood that the company will have been funded and will have started operations by March.

One observer, commenting on these arrangements, wrote to say: ‘To be sure, the net notional CDS amount, which is what counterparties would be on the hook for in the case of an orderly unwind of the financial system, is materially lower than the gross total. Yet, as systemic unwinds are never orderly, gross tends to become net – as for instance when Lehman bonds went from par to 10 cents in the space of 24 hours. Should systemic risk flare up again’ (think Greece – Ed.), ’and fiat-based market values quickly catch up with ‘fair values’ – which in our Ponzi economy can very easily be calculated: they are ALL ZERO – the Federal Reserve will be on the hook’, with the US taxpayer, for amounts so large that the volume of printed money will reduce the value of a dollar to one cent or less within the space of a few weeks (or less).

So basis spreads can be expected to be severely compressed, once counterparty risk has become a thing of the past and all systemic risk in the biggest derivatives marketplace (excluding interest rate swaps) is fully backstopped (in theory) by the Federal Reserve.

In addition, the DTCC will be guaranteed monopoly status with respect to Credit Default Swap trading, as no-one in this business will wish to transact or clear anywhere else.

• FACT: Monopolies are illegal under US, British and European law.

STAGE SET FOR AN UNIMAGINABLE (AVOIDABLE)
CATASTROPHE: A DEATH-WISH
So the stage is well and truly set for a catastrophe of unimaginable proportions, bearing in mind that under Geithner as President, the Federal Reserve Bank of New York alone accumulated a portfolio of derivatives ‘assets’ commonly cited at $500 trillion, but which is probably much larger. This of course makes a complete nonsense of the formal derivatives data published by the Bank for International Settlements, which excludes double-counting; but none of these numbers can be relied upon, although the Bank for International Settlements’ information possesses the cachet of authority and has to be used for want of better data (11).

The DTCC is also boasting of further innovations, including the expansion of its Global Corporate Actions (GCA) service based on feedback, sourcing scheduled payment announcements from the Federal Reserve Board for US structured and non-structured securities, specifically Fannie Mae and Freddie Mac securities, which are not DTC-eligible; scheduled payments coverage to include international securities that are not DTC-eligible; and distribution information on UK Unit Trusts.

THE DTCC’S OBLIGATIONS WAREHOUSE SERVICE
The January 2010 issue of DTCC News and Information for DTCC customers further discusses how the DTCC’s Obligations Warehouse, to be launched by mid-2010, will quote ‘provide transparency for the industry and regulators while delivering operational efficiencies, cost savings and risk mitigation to financial firms’. The new service will ‘close the chapter on the manual processing of ex-clearing trades by empowering ops. professionals with a real-time automated service that will electronically manage these transactions and communicate a match to each side of the obligation’.

‘The Obligation Warehouse service will also automate the management of non-Continuous Net Settlement (CNS) fails. ’Because these trades exist outside Continuous Net Settlement, the back office faces an accounting nightmare in handling these transactions – not to mention bearing the added costs for maintaining comprehensive records and dedicated personnel to keep track of their status. The Obligation Warehouse will help mitigate this risk by consolidating all ex-clearing and non-CNS fails in a central location and storing them until settlement’.

‘The Obligation Warehouse enhances transparency by fully capturing, for the first time ever, all trading activity in NSCC-eligible securities in a central location from trade date until settlement. As a result, ex-clearing trades will no longer be invisible to all but the direct parties to that particular transaction. Instead, the industry and regulators will have a complete view of all open obligations traded in the US marketplace for equities, corporates, municipals and also unit trust investment securities – and [will] have a central vantage point to monitor and mitigate systemic risk’ (12).

GREATER TRANSPARENCY WON’T ELIMINATE SYSTEMIC RISK,
OR PREVENT A CONFIDENCE CRISIS
But while being able to see systemic risk stresses emerging may be an advantage, it won’t, and cannot, eliminate systemic risk. This is because these trades are fraudulent given the fact that securitisation violates US law (and Common Law in English-speaking countries), while in most contexts anyway, they are bedevilled by a lack of real value and non-recourse characteristics.

As for Credit Default Swaps, whatever the contract provides and whenever the counterparties decide on the basis of the contract that a default has taken place or is about to take place, it is in the interests of the provider to allow the default to take place, given the huge payouts which ensue. In other words, the contract is based on latent blackmail. That alone makes it illegal.

SO, WHERE ARE YOU, MR HOLDER?
Much more seriously, as summarised above, securitisation contracts are ALL ILLEGAL under US and Common Law. Therefore, all US official and ‘private’ sector operations being framed so as to revalidate and rehabilitate securitisation represent a perverse assault on the Rule of Law, and the commission of multiple felonies – accordingly leaving ALL perpetrators, whether holders of public office under the United States or any other level of government or employed by wayard financial institutions, or developing the securitisation infrastructure, vulnerable to criminal investigation, indictment, arrest and prosecution for gross and knowing violations of the law.

Whether the scandalous immunity from prosecution awarded by the World Court on demand to the five self-acknowledged criminal US Presidents protects them from the appropriate legal sanctions, prosecution and punishment within the US jurisdiction itself, isn’t clear: but we doubt it. Ironically, therefore, since the five Presidents have, by demanding immunity from prosecution from the World Court, acknowledged their own criminality, it is open to the US authorities to investigate, indict and arrest these operatives – since they have acknowledged their guilt. Where are you, Mr Holder?

Your job is to administer justice without fear or favour, isn’t it?

APPENDIX:
LORD MYNERS SAYS THERE MUST BE PENALTIES FOR BANK EXCESSES
On 8th March 2010, the UK ‘City Minister’ (Financial Services Secretary), Lord Myners, who in our opinion has been far too laid-back in failing to condemn criminality in the corrupted City of London, said that financial markets must ‘punish’ those who ‘make mistakes’ [sic!]. Without a ‘downside’, it would be impossible to ‘restore’ market discipline.

In all likelihood, Lord Myners didn’t really understand what he was saying – which was that the market system wasn’t functioning properly. And the reason for that is summarised in our report above: securitisation impedes the proper operation of market forces via its opposition to public policy in the bankruptcy context, its antitrust characteristics, and in the other ways described in outline in the present report. Does Myners understand this?

All that Lord Myners actually said, at a meeting in London, was that bankers had been obscenely remunerated even though they had ‘made serious mistakes’ (unspoken), code for ‘behaved like organized criminals’ (even more unspoken): ‘A lot of people lost money in the financial sector over the last few years – bank shareholders in particular suffered massive losses’.

‘But many people have been protected. Creditors have been bailed out. Far too many bankers themselves have enjoyed massive awards during the crisis, even as their firms were rescued’.

Well, we knew all that. When he got down to detail, Myners told the meeting that the Government was determined to ensure that no bank was too complex to fail. ‘We’re serious about removing the safety net that has allowed those with blind faith in market efficiency to ignore the consequences of their lack of discipline’ [sic! Let the word ‘criminality’ NEVER BE MENTIONED].

‘We are also working with G-20 countries and the IMF to access the feasibility of an international levy or fee on financial institutions. This will make sure that any residual insurance that banks are perceived to enjoy after living wills are implemented, will not come for free’.

Lord Myners then redeemed his rather shallow observations by pointing out that the implicit support of the financial industry in the past had probably represented the most expensive public subsidy to any industry in any part of the British economy, ‘vastly exceeding’ that paid to agriculture or the defence industry.

‘There is no reason why the public, taxpayers, should continue to provide a free at the source of delivery subsidy to the cost of capital of the banking system. We need to do everything we can to shrink the subsidy to zero’.

Under the Brown Government’s new Financial Services Bill, consumers would be granted new powers to seek redress through the courts. However the weakness of Lord Myners’ presentation was his complete failure to indicate that he and the Government understand that a colossal volume of the transactions which gave rise to the crisis in the first place were and remain ILLEGAL.

It’s no use trying to reform the ‘framework’ when the transactions being promoted within the framework contravene antimonopoly legislation, bankruptcy legislation and all the other elements of the law identified in outline above. So, laudable though Lord Myners’ objectives appear to be, he is in fact wasting everyone’s time.

He appears not to understand that the transactions which precipitated the crisis were CRIMINAL TRANSACTIONS, and his failure to address the criminality issue – which is really the ONLY issue – indicates that the Government in London is trying to cover up and ignore the criminality: because of the vast tax accruals from the recalcitrant financial sector that the Government needs more than ever, given its colossal subsidies to the criminal financial enterprises whose casino operations have been exposed.

POSTSCRIPT:
STIGLITZ: ‘THE AMERICAN BANKING SYSTEM IS CORRUPT’
The headline above appeared in the British press on 10th March 2010. Eager with anticipation and almost salivering with excitement, your correspondent rushed to read the article in question. Here, at last, he thought, was a fully paid-up member of the Great and the Good coming to his senses and calling a spade a spade at last. Alas, for Nobel Prize-winning Dr Stiglitz, a spade is in fact a fork.

Professor Stiglitz, who teaches at New York’s Columbia University, said that the Federal Reserve System ‘smells bad’. The Editor invoked the smell of the Fed, and of course agreed. But on further reading, it transpired that Dr Stiglitz was merely complaining that the Presidents of the 12 regional Federal Reserve Banks are chosen by commercial bankers.

‘The regional Reserve Banks… have a key role in regulation and in the last crisis [i.e., once again, it’s ‘in the past’: Ed.] of bailing out the banks. But the heads of these organisations are chosen by a committee dominated by the big banks that are being bailed out… so the people bailing out are appointed by the people who they bailed out. It smells bad. It looks bad. It undermines confidence’.

OH DEAR. Is this the best Dr Stiglitz can do? The American banking system is corrupt because the heads of the 12 regional Federal Reserve Banks are chosen by the big banks? Is that really, Dr S., the reason that the system is corrupt? Have we not been exposing rampant racketeering by the same big banks alluded to? Oh sorry, we forgot. He’s a Nobel Prize-winning economist.

The holder of a Nobel Prize can only say what’s considered kosher by the globalist internationalists who use the Nobel Prize system to ‘EMBED’ the ‘PARTY LINE’ in the public’s psyche. So the ‘party line’, as we speak, is to ACKNOWLEDGE that, yes, the US banking system is indeed corrupt, as Mr Story has been reiterating as nauseam, but to attribute this to the way the heads of the regional Feds are chosen. [With the Federal Reserve Board, the number of Feds is a geomasonic 13].

Notes and references:

(1): As previously reported, the Editor visited the veteran author and journalist Gordon Thomas, at his suggestion, in Bath in the fourth quarter of 2004.

During that visit, Mr Thomas indicated that MI-6 had informed the British media that Christopher Story has been a participant in the abortive putsch in Equatorial Guinea, with which Mark Thatcher was associated. Since the Editor of this service has done nothing, literally, since 1963, except run his publishing and print production businesses, the Editor asked why such lies and false witness would be perpetrated – especially against someone such as the Editor of this service whose loyalty to the Crown and the United Kingdom cannot possibly be, and has never been, questioned.

He replied:

‘They think you may be dangerous because you control your own
publications and you have the documents’.

In divulging this, of course, Mr Thomas revealed that MI-6 itself had something to hide. If the Editor was dangerous ‘because you hold the documents’, the documents themselves clearly represented elements of something much bigger. So the consequence of this intervention was that the Editor naturally redoubled his private investigations to establish what MI-6 were so anxious to cover up.

When the Editor protested to Thomas that the lies disseminated to the media about him were rank fabrications, Gordon Thomas uttered the memorable response:

‘It doesn’t matter that it’s not true. What matters is that it’s out there’.

In the course of this meeting, Gordon Thomas made it quite clear to the Editor that he is an agent of influence and acts as an agent for MI-6. He said that his father had been an MI-6 officer.

Given Thomas’s statement ‘It doesn’t matter that it’s not true. What matters is that it’s out there’, everything that Gordon Thomas himself publishes must, by definition, be questioned – since he was quite content to go along with this twisted and nefarious mentality.

• You could say that by revealing this to the Editor, both Thomas and MI-6 exhibited a degree of abject stupidity which perhaps we haven’t emphasised sufficiently.

Furthermore, it became quite obvious that the purpose of this exercise was intimidation. Thomas accompanied his message with a veiled threat, as well. Clearly, these people are accustomed to targets caving in to such pressures, and they have no immediate backstop plans when the target fails to react in accordance with their evil intentions.

As a follow-up to this operation, Thomas badgered the Editor in New York to get in touch with an operative who later turned out to go by the nickname ‘The Visitor’, who used the name Walker as an alias, but who’s real (Ukrainian) name is Demchuk. This operative was said to have Pentagon links. At fist the Editor refused, but Gordon Thomas (as agent for MI-6) persisted, and finally the Editor agreed to meet this fellow, by appointment (arranged via Hushmail) in the fishing tackle area of a sports store on Fifth Avenue. The Editor has no interest in sport and had never been inside a sports store. However at the appointed hour, the Editor appeared, and found this man lurking in the traditional grey raincoat amid the fishing rods. We repaired to the Algonquin Hotel, where the operative proceeded to pump the Editor on one subject alone, namely Lt. Mark Delmart Vreeland.

Subsequently, Demchuk pestered the Editor to reveal all he knew about the Iraqi ‘Sarindar’ WMD removal programme, under which two Soviet ships had sailed from the Iraqi port of Umm Qasr in February 2002, ahead of the illegal invasion. The Editor had obtained information on this from open sources, especially the high-level Romanian defector, Ion Pacepa, and additionally from Soviet Military Intelligence (GRU), some information about which is available on the Internet.

In other words, the information supplied to this ‘US’ operative by the Editor was all obtained from open sources. The operative ordered a number of our publications which he said he would pay for, received them, but later vanished without fulfilling his financial undertaking (par for the course).

In March 2005, the Editor suddenly received a phone call from this Pentagon-linked operative in London, in which he spoke immediately about some operation in Monaco involving the dubious operative Bernie Ecclestone. The US operative appeared to assume that the Editor knew what he was talking about, as he gave the Editor to understand that he (Demchuk) believed that the Editor was involved with whatever operation in Monaco (a key CIA center) he was talking about. When the Editor said: ‘I have no idea what you are talking about. You’d better go back to your source’, there was a very long and stony silence.

He then said: ‘Well, that’s very surprising, in view of where this comes from’. Since the Editor knew from another source that Demchuk had just visited MI-6, it almost immediately became crystal clear that this was yet another attempt by MI-6 to ‘sting’ the Editor of this service.

In view of the fact that a US ‘inside’ source told a contact of the Editor’s in February 2010 that ‘MI-6 intend to take Story out’, because he knows too much about what is going on (and what they are up to), we place the foregoing information on the record again: and we will revisit these sequences with greater, hitherto unpublished, detail, in due course.

If the British intelligence community thinks it can intimidate a private publisher whose sole interest is to expose the racketeering that these people are all trying to cover up, it had better think again. You could argue that what we have done to date has actually assisted the British authorities to get their acts together in the face of this unprecedented crisis: but to be informed, after going through so much, that they intend to ‘take Story down’, is one slap in the face too many: and it reflects very badly on the US source of this disgraceful threat and further intimidation attempt, as well.

For the elimination of all residual doubt, we will persist with these exposures until such time as the necessary remedial measures have been taken. Interestingly, as you will have noted appended to this report (Appendix), Lord Myners, the City (of London) Minister in the Labour Government, has just indicated that the measures taken to discipline the City have been quite inadequate to date – although he fails to use words like ‘criminal’, ‘fraud’, ‘organised crime’, ‘racketeering’, ‘Fraudulent Finance’ etc: so he has a great deal of catching up (with us) to do.

(2): See the following reports on this website [Archive]:

• 9th January 2010: Text of the CMKM/CMKX lawsuit against the S.E.C.: Case Number CV10-00031 JVS (MLGx): Santa Ana, California. Subsequent to our posting the complete text of the Complaint immediately it had been filed, the text was also made available on the following link: http://viewer.zoho.com/docs/paKdda

• 29th January 2010: Service of CMKM/CMKX $3.87 trillion suit vs. S.E.C.

• 07 February 2010: Legal moves to sue those blocking the Settlements

• 02 March 2010: S.E.C. Phantom Shares Fraud: New Intelligence

(3): See text of the letter from Mr A. Clifton Hodges, Attorney for the CMKM/CMKX victims, to the Office of the Attorney General for New York State, Mr Andrew Cuomo: report of 2nd March 2010.

(4): Wanta’s rôle, having served as courier between Bush Sr. and Gorbachëv, has always been to facilitate thefts and diversions of funds to George Bush Sr. (and Gorbachëv, given that the former Communist President is a partner with Bush Sr. in Deutsche AG., as explained in this and recent reports). This helps to explain why from time to time during these investigations, we have been told that ‘Bush Sr. considers the monies to belong to him’.

(5) A ‘Foreclosure Autopsy’ reporting service is available, for instance, from the following analyst:

Charles Wayne Cox
Certified Forensic Loan Analyst
Notary Public
131 Sutphen Street
Santa Cruz
California 95060
Telephone: 831-466 3440
Facsimile: 619-330 2379
Email: mailto:Charles@BayLiving.com
Website: www.ForensicLoanAnalyst.com

Charles Cox is recommended to the Editor personally by a friend of impeccable integrity who is also an expert on these issues, based in San Diego. Cox is a Para-Legal and a noted forensic expert on reading mortgage documents, serving lawyers to help their foreclosure clients. Our friend and correspondent wrote, when introducing Charles Cox: ‘Charles helped a friend of mine here in San Diego by reading his original Note and mortgage documents. Incredibly, the Note to the mortgage was made out to San Diego. Later, a copy from the County Recorder’s office showed that San Diego had been crossed out, and written in was ‘United Republic’.

The mortgage was done by a mortgage company in Colorado (now out of business) but was sold to Aurora which was owned by Lehman Brothers. Aurora is still the servicer on the loan, and my friend is suing them and requested through a qualified letter a copy of the original Note to show that they are the legal owners of the Note’.

(6): ‘Northern Rock’s Line in Excuses: Holding Paid-out Title Deeds for Five Years: A forensic analysis of how Northern Rock managed to hold on to title deeds belonging to a former mortgagor, with details of its conflicting excuses for non-performance’: International Currency Review, World Reports Limited, London and New York, Numbers 1 and 2, pages F-153 to F-172.

(7) ‘Securitization is completely illegal and fraudulent under US law’, Economic Intelligence Review, World Reports Limited, London and New York, pages 5-21.

(8): ‘Gensler Turns Back on Wall Street to Push Derivatives Overhaul’,
Bloomberg, 12th February 2010.

(9): ‘Gensler Turns Back on Wall Street to Push Derivatives Overhaul’,
Bloomberg, op. cit., 12th February 2010.

(10) ‘January 2010 News and Information for DTCC customers’ published
by the Depository Trust & Clearing Corporation’, accessed 13th February 2010.

(11): The derivatives data maintained by the Bank for International Settlements, and reproduced by the International Monetary Fund in successive issues of its literature, are the only ‘reliable’ data available. Because they are issued by the BIS, they are authoritative, but it is not known whether they are accurate. The BIS data, which exclude double counting, showed that in June 2008, total Notional Over-the-Counter derivatives contracts outstanding on that basis reached some $693,814 billion. By December 2008, this total had contracted to $547,371 billion given the discontinuity of September 2008; but by June 2008, the total outstanding had recovered to $604,622 billion.

The Gross Market value of total underlying derivatives contracts outstanding amounted to $20.4 trillion in June 2008. $32.2 trillion in December 2008, and $25.4 trillion in June 2009.

(12): ‘January 2010 News and Information for DTCC customers’ published
by the Depository Trust & Clearing Corporation’, op. cit., accessed 13th February 2010.

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

Therefore, you should be advised that the GENUINE ORIGINAL REPORT is, by obvious definition, accessible ONLY FROM THIS WEBSITE. If you come across an article elsewhere that is attributed to the Editor of this service, you should refer to the ORIGINAL ARTICLE HERE and you should bear in mind that the illegally duplicated article may contain text that was NOT written by the Editor of this service, but which was inserted for malicious purposes by counterintelligence.

Likewise, although we haven’t yet had time to elaborate this issue, we have taken drastic steps around the world to close off the malicious piracy of our books. One technique used by several disreputable sites (in the United States, the Netherlands and Switzerland) is to copy our title(s) and (a) to display an image of the front cover WITHOUT THE ISBN DATA at the top of the cover; and (b) to DELETE THE COPYRIGHT PAGE. In so doing, the criminal pirates proclaimed that they knew perfectly well that they were/are engaged in theft and can be prosecuted for stealing copyright.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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