of Death (A Special FTW Series)
II -- Trading with the Enemy
Flocco - Edited by Michael C. Ruppert
[пїЅ Copyright 2001. From The Wilderness Publications,
www.copvcia.com. All Rights Reserved. May be
recopied, distributed or posted on the worldwide web for
non-profit purposes only as long as this Copyright statement
[Editor's Notes - A
disclosed in Part I and in previous stories by FTW, an abnormal
amount of "put" options - bets that a stock price would
suddenly fall - were placed on United Air Lines and American
Airlines in the days before the attacks of September 11th.
These were only two of the companies affected by the attacks
which experienced highly suspicious trading in their shares.
In Part I we described how put options work. They are basically
futures contracts that obligate the "put buyer" to purchase
the shares at a price that might be well above the market
price when the contract matures. Heavy purchases of put
options before a dramatic drop in a particular share price
are clear-cut indicators of criminal activity based upon
Last month we identified
the purchasing end of the contract incorrectly as a "call."
That person, unhappily obligated to pay too high a price
for the shares, is better described as the "put buyer."
Tom Flocco also revealed dramatic new links to the growing
mountain of evidence that puts the Central Intelligence
Agency at the heart of America's and the world's financial
markets. In particular he showed that the firm which had
handled many of the put option purchases on United Airlines
-- Deutschebank-Alex Brown -- was once headed by the man
who is now the Executive Director of the CIA, A.B. "Buzzy"
I would like to thank
and acknowledge British investigative journalist/writer
David Guyatt for first bringing to my attention, Krongard's
past relations with Alex Brown.
Part II of this series
is easily one of the most damning pieces of investigative
journalism that I have ever seen or participated in. In
it Tom Flocco will now reveal even darker direct connections
between the worlds of high finance, terrorism, and intelligence.
And he will reveal some names that will shock you. - Mike
Part II -- Trading with the Enemy
11, 2001 -- No member of Congress is publicly,
as yet, questioning the hazy areas of "private client
banking" -- repeatedly described by the U.S. Senate
and Justice Department as being a vehicle for drug money
laundering -- and apparent conflicts of interest linked
to documented 9/11-related insider trading in United Air
Lines stock. The trades were placed through one of the world's
three largest pools of investment capital, Deutschebank-Alex
This, in spite of
the fact that there is mounting evidence of "real-time"
monitoring of stock market trades by intelligence entities
(See Part I at www.copvcia.com).
The recent indictment of a former Deutschebank executive,
Kevin Ingram -- who has since pled guilty to conspiracy
to launder drug money and arrange the sale of U.S.-made
arms to individuals in Pakistan and Afghanistan, where U.S.
military personnel are currently at risk -- raises further
alarm. Although Ingram was not at Deutschebank when the
insider trades were placed, his history (as well as a star-studded
cast of international financiers connected to the CIA) reveals
a frighteningly dark saga showing the degree to which dirty
money influences "the Street" and the world's financial
markets. It also provides more evidence that the CIA knew
of the September attacks in advance.
Ingram is also an
acknowledged former protege of former Goldman Sachs CEO
and current New Jersey Senator, Jon Corzine who sits on
the Senate Banking Committee. He has also worked closely
with another former Goldman Sachs, CEO - Robert Rubin,
served as Secretary of the Treasury under President Bill
Related to Deutschebank-Alex
Brown's role as the broker for the UAL and other suspicious
trades, Ernst Welteke, President of the Bundesbank (Germany's
central bank), said recently that a Bundesbank study pointed
strongly to "terrorism insider trading" in the
days leading up to September's carnage in the U.S., according
to the London Observer on September 23, 2001.
But reporter John
H. Berlin also made the ominous prediction that "their
decision [to investigate] provided by far the most authoritative
support for persistent rumors that the terrorists could
have funded their next strike with huge [insider trading]
profits from the [first] attacks." This seems an unlikely
proposition since experts acknowledge that attacks of the
magnitude of 9-11 take years to plan and perhaps millions
of "up-front" dollars to finance.
Other motives, such
as generating funds for covert operations by the CIA, have
also not been ruled out. Nor has the possibility been
excluded that Deutschebank, which handled key but unquestionably
suspicious transactions, was generating money for itself
by placing "put" options on United Airlines and
then putting the profits back into its own tills -- perhaps
to "prop up" poorly performing divisions at the
global banking giant.
This last scenario
is a possibility, given the fact that Deutschebank has been
demonstrated in Part I of this series to have intelligence
links that might have forewarned the bank of the attacks.
There is precedent
for the "slush fund" theory, as Deutschebank's
U.S. affiliate, Bankers Trust (BT) pled guilty to it in
March 1999. BT diverted $19.1 million from "unclaimed"
funds to prop up profitability at other units, according
to a May 30, 2001 New York Times report.
The revelations referred
to the growing scope of BT's misuse of unclaimed client
funds, and on the laxity of state and federal bank regulation
of BT by claiming "a closer look at the scheme reveals
that it goes well beyond the transgressions the bank owned
And as the investigation
was heating up, a high-ranking BT executive with long-time
intelligence ties had to be thinking that it was getting
near time to get out of Dodge City.
Times reporter Tim
O'Brien said that it was the auditors at the NY State Comptroller's
Office who uncovered BT's diversion of funds after noticing
that BT's unclaimed account dropped from $10.2 million in
1993 to only $3.9 million in 1994; so they started requesting
documents which the BT executives subsequently refused to
According to analysis
by lawyer Matthew Lee, executive director of Inner City
Press, it was not the primary regulators of BT -- the Federal
Reserve (Fed) and the NY State Banking Department (NYSBD)
-- who discovered the fraud. And O'Brien and Lee question
why the limited-budget NY Comptroller's office detected
the scam; and whether the Fed and NYSBD just swept their
findings under the rug to keep them out of the public eye.
The revelations led
O'Brien to conclude that when the Fed became aware of the
scope of the Comptroller's investigation and what was being
turned up, it ordered BT to find a merger partner (maybe
even suggesting Deutschebank) and then took the investigation
out of the hands of the (uncontrollable) NY State Comptroller.
Buzzy the Banker Joins the CIA
According to a CIA
press release, in February 1998, A.B. "Buzzy"
Krongard, former CEO of Deutschebank-Alex Brown (the nation's
oldest investment banking firm) and Vice Chairman of the
Board of Bankers Trust, left BT and the investment banking
community to join the CIA full time.
As a matter of fact,
the Washington Post reported that Krongard helped engineer
the $2.5 billion BT merger with Deutschebank shortly before
sliding over to the intelligence side of the stage.
Buzzy (as his friends
call him) had served a long-term "moonlighting"
stint as a "consultant" to a series of CIA Directors.
He left his banking position to become counselor to CIA
Director George Tenet just 11 months prior to the final
$19.1 million guilty plea by BT, which was by then a subsidiary
lofty intelligence and investment banking positions, there
are no reports available dealing with important questions
concerning his knowledge about such relevant issues as the
disposition of "unclaimed" funds, monitoring of
global stock trades for national security purposes, and
wealthy "private client" operations -- let alone
whether the developing investigation into BT fraud had necessitated
his, "leaving town just ahead of the sheriff," as it were.
Yet Krongard has
since risen to new heights, having received a March 16,
2001 Bush Administration promotion President George W, Bush
to Executive Director, the number three position at the
Ingram's Last Trade
On August 28, 2001,
14 days before the Trade Center attacks, former Deutschebank
senior bond investment trader Kevin Ingram, pled guilty
in a $2.2 million dollar money laundering conspiracy, resulting
from a government sting operation investigating the illegal
sale of night vision goggles, Beretta machine pistols, M-16
machine guns with silencers, rocket-propelled grenade launchers,
mortars, surface-to-air missiles (SAMs), TOW anti-tank missiles,
and Stinger missiles, according to court papers examined
by the New York Post.
The next day, Alert
Global Media, Inc., publishers of Money Laundering Alert,
reported that Ingram "pled guilty on August 28 to money
laundering conspiracy as part of an agreement [plea bargain]
with the U.S. government, which will drop other charges
and receive Ingram's testimony against two co-defendants
from Egypt and Pakistan." Some published reports say that
both of the other defendants were from (current U.S. ally)
"Bin Laden has
long-standing contacts with senior officials [of Pakistan]...,"
said Andrew Pearce of the Rand Institute in Washington.
The Times of India also reported on June 17, 2001 that one
of three Pakistani middlemen working illegally with Ingram
asked undercover agents about the chances of obtaining components
for nuclear weapons.
Earlier (July 7)
Associated Press reported that "Kevin Ingram, 42, an
investment counselor at the World Trade Center, was indicted
June 28 on three counts of trying to conceal at least $350,000
and one count of violating the Arms Export Act."
laundered $100,000 and $250,000 for federal agents, both
times taking a 9 percent cut before being asked to launder
the $2.2 million," according to court papers examined
by the New York Post in a June 15, 2001 report.
AP added that "Ingram
is also named in two other counts...for trying to launder
$2.2 million in illegal arms sales. Ingram, out on $250,000
bond, faces a maximum of 100 years in prison if convicted
of all charges."
Arrested with Ingram
were two New Jersey-based Pakistanis who had offered to
make a partial payment for the arms "in the form of
heroin," also according to both AP and the New York
A September 29, 2001
Bloomberg News/St. Louis Post Dispatch report revealed that
Ingram had angered his judge in July by failing to disclose
his Swiss bank account. Bloomberg reported that the
Swiss account contained $1,086,000 in cash and 75,800 shares
of Carver Bancorp, Inc. worth $650,000.
"He was afraid
of the implications, and he just panicked," attorney
Richard Lubin told U.S. Magistrate Judge Ann E. Vitunac
at a bail hearing on July 10. Vitunac raised Ingrams's bond
to $1.25 million and ordered him jailed two days later.
given the terrorism that has transpired, federal agents
refused to divulge the name of the country that would have
received the arms according to court papers examined by
the New York Post and others. However, the documents
confirmed that the defendants "referred to their foreign
arms buyer...as a well-known, former military official who
wanted to partially pay for the weapons with heroin."
On June 15, 2001,
the New York Post, reported that experts said the most likely
buyers connected to the former Deutschebank securities trader
and the two Pakistanis were current U.S. ally Pakistan or
Osama bin Laden.
The Associated Press
reported on 12/1/01 that Ingram had been sentenced to 18
months plus two years probation and a $20,000 fine on the
money laundering charges in this case. All other charges
were dropped in the plea bargain. AP quoted Ingram as saying
at his sentencing hearing, "I made a horrible mistake and
I did something wrong. I'm very sorry about it, sorry for
my family." Ingram's sentence will likely be served at a
minimum security facility in Fairton, New Jersey.
of the U.S. government's familiarity with banking operations
connected to terrorist activities was revealed in an 11/16/01
AP story by Catherine Wilson. In describing events in a
Florida prosecution of Egyptians connected to Ingram's case
she wrote, "Numerous promised wire transfers never arrived,
but there were discussions of foreign bankers taking payoffs
to move the money to purchase weapons into the United States,
said [federal] prosecutor Rolando Garcia." This is yet another
clear indication that intelligence agencies routinely monitor
banking transactions in terrorist-related cases. It has
not been disclosed whether Ingram's plea bargain produced
testimony in this case
In spite of these revelations, no reporter or government
official has asked or disclosed how many times Ingram had
laundered money or completed arms shipments before he was
finally nabbed. The extensive array of military hardware
in the possession of the Taliban and al Q'aeda beg this
A "Trader's" Powerful Friends
Brown's role in brokering the insider trades that scream
foreknowledge of the attacks further provides a common denominator
-- given the activities and histories of key executives
at the highest levels of the world's financial markets.
Ingram's history speaks of access to power and financial
policy making at the highest levels. Not only was he an
associate of Robert Rubin before Rubin left Goldman Sachs
to become Clinton's Treasury Secretary, he has had ongoing
relationships with Corzine, who also sits on the Senate's
Subcommittee on Securities and Investment -- a subcommittee
which should be investigating the insider trading.
Prior to working
for Deutschebank, Ingram was a highly placed executive with
the investment bank Goldman Sachs. Both Rubin and Corzine
have served as CEOs at Goldman. Rubin currently sits
on the board of Citigroup -- a bank which has been cited
for drug money laundering by the U.S. government and which
(May 2001) purchased a Mexican bank (Banamex) which has
now lost two suits and one appeal over press reports that
its former owner, Roberto Hernandez, was a world-class drug
money launderer. Hernandez currently sits on the board at
Citigroup as a result of the buyout. So too does former
CIA Director John Deutch. (See FTW: Vol. IV, No. 3 - May
31, 2001 or visit www.copvcia.com.)
Kevin Ingram joined
Goldman Sachs in 1988 after a brief stint at Lehman Brothers,
and by 1992 was promoted to run Goldman's Collateralized
Mortgage Obligations desk, overseeing all trading of mortgage
and asset-backed securities, according to the New York Observer.
Mortgage trading has long been suspected of being a vehicle
for the laundering of "hot" money.
In Black Enterprise
(BE) magazine's 1992 "Top 25 Blacks On Wall Street,"
Ingram was said to have left his (nine-year) high profile
Goldman Sachs treasury securities and options desk position
in 1996 to head Deutschebank's U.S. mortgage-backed securities
department -- and ultimately their global securities operations
BE added that "at
Deutschebank, Ingram and his team of 25 professionals structure
and issue securities for an international clientele, including...high
net-worth individuals. These deals can range from $1 million
to several billion dollars."
No member of the
House or Senate has even broached the subject of hearings
to question either Ingram or recent Deutschebank-Alex Brown
Vice Chairman and current CIA Executive Director A.B. Krongard
as to whether they dealt with any wealthy Middle Easterners
or Saudis in particular. Almost all of the September 11
hijackers were of Saudi nationality. Since both men had
high supervisory positions connected to the secretive "private
client" operations of Deutschebank, and Deutschebank
handled the insider trades, this is an obvious course of
at Deutschebank became tenuous when the bond market crashed
in 1998 and the protпїЅgпїЅ of Corzine and Rubin likely felt
insecure. The tumbling bond market combined with periodic
absences where "he would sometimes go incommunicado
for days -- unusual for someone who ran a trading desk and
was responsible for open positions of $7 billion and more."
Deutschebank asked for his resignation in September 1999,
according to the New York Observer.
The Reverend Jackson to the Rescue
From Fox-TV News' Bill O'Reilly to
well-experienced citizen researchers with monikers like
"Uncle Bill, Alamo Girl, and John Huang2" (who
post startling, yet often under-publicized findings on grass-roots
websites like Jim Robinson's "Free Republic"),
evidence of "shakedowns" related to the race-card
continue to surface -- even when connected to terrorism.
Ingram turned to
"Rev. Jesse Jackson's Wall Street Project [for help
with the financial settlement of his resignation process].
The Wall Street Project is a Rainbow Coalition-sponsored
organization that pushes for increased minority hiring on
the Street," according to the New York Observer. And
with the specter of a racially-charged lawsuit looming,
Deutschebank ultimately settled with Jackson and Ingram
for an undisclosed multi-million dollar figure in February
According to Observer
sources, Ingram then made a contribution to Rainbow Push
of "around" $100,000 -- as a fiscal tribute to
The "Blind Trust" of a Senatorial
After the February
2000 Deutschebank settlement, Ingram moved on, raising funds
for a soon to-go-bankrupt dot-com company called TruMarkets.
Astonishingly, some of TruMarkets $30 million seed money
came from the blind trust of Ingram's former Goldman Sachs
patron, U.S. Senator Jon Corzine, according to the New York
Observer of 11/29/01.
But federal prosecutors
and fellow Senators have never questioned whether Corzine
was aware that investigators had been targeting the former
Deutschebank executive at the same time regarding money
laundering of illegal narcotics proceeds (both drugs and
cash) to support the unlawful purchase of U.S. arms to sell
to Muslim terrorists in Pakistan and Afghanistan.
It is also a reach to wonder why Corzine -- who took office
in January 2001 -- would not have been aware of a Federal
banking investigation into dealings with terrorists that
had been engineered by a former associate to whom he had
been a mentor. It was during this period of time that an
undercover agent began holding a series of meetings with
Ingram in which Ingram let it be known that "funds
coming in from arms sales needed to be laundered,"
again according to the New York Observer.
remain as to whether strings were pulled for Ingram by influential
individuals at a time when the prison population has exploded
into a cottage industry full of poor and middle class Americans
convicted for possession or use of small amounts of drugs.
Most of these people -- like Ingram -- are minorities.
Neither Ingram nor
his lawyer would comment or return calls. And no one has
successfully interviewed the prosecutors regarding decisions
which influenced what most would consider to be incredibly
soft treatment, given the nature of the charges and what
happened on September 11.
That there is serious
interest or enough courage to seek answers about prior knowledge
of the attacks from Deutschebank-linked key players and
associates under their supervision by America's elected
legislators is not even remotely assured at present.
Tom Flocco is a freelance
writer and researcher. (email: TomFlocco@cs.com)
in this series:
- Part I of this
series is located at: https://www.copvcia.com/free/ww3/12_06_01_death_profits_pt1.html
- Part III of this
series is located at: https://www.copvcia.com/free/ww3/01_09_02_death_profits_pt3.html
- FTW's original
groundbreaking story on insider trading and September 11th
is located at: https://www.copvcia.com/free/ww3/10_09_01_krongard.html.